May Day! May Day! — Wednesday’s IP Market Recap

by Marc Bastow | May 1, 2013 5:00 pm

IPMarketRecap May Day! May Day!    Wednesday's IP Market Recap[1]“Sell in May and go away”[2] indeed!

Wednesday’s ADP jobs report showed a slowdown in hiring for April helped set the tone for the first day of the new month, and a mid-afternoon report from the Fed indicating it will continue purchasing bonds to move the economy forward did little to slow the momentum.

The Dow Jones Industrial Average tumbled 0.94% to close at 14000.95, the S&P 500 fell 0.93% to 1582.70 and the Nasdaq lost 0.89% to finish at 3299.13.

Immediately thereafter, investors focused their attention to¬† Facebook (NASDAQ:FB[3]), which reported first-quarter earnings. FB reported revenue improvement of 38% year-over-year to $1.46 billion, beating estimates, though profits of 12 cents per share were flat against last year’s Q1 and a cent below Wall Street estimates. Those results prompted an indifferent response in early after-hours trading.

Apple (NASDAQ:AAPL[4]) was once again a bellwether of sentiment for the market, as it fell about 3.5% after its successful sale of a record $17 billion in debt securities late Tuesday evening.

The rest of the tech sector also took a breather. Blackberry (NASDAQ:BBRY[5]) declined more than 3% as investors still appear to be spooked by CEO Thorsten Heins’ discouraging comments about the tablet market[6]. Movement in shares of Cisco (NASDAQ:CSCO[7], -2.7%), IBM (NYSE:IBM[8], -1.4%), and Hewlett-Packard (NYSE:HPQ[9], -1.3%) helped to drag down the Dow.

T-Mobile US (NYSE:TMUS[10]) — the merged entity of T-Mobile USA and MetroPCS (NYSE:PCS[11]) — made its debut on the New York Stock Exchange and shot up 16%.

On the earnings front, Humana (NYSE:HUM[12]) jumped up nearly 5% to lead the S&P 500 after delivering strong first-quarter profit on lower benefit expenses and increased membership. And Genworth Financial (NYSE:GNW[13]) improved by more than 2% after reporting profits had more than doubled.

Earnings notables for Thursday include Kellogg (NYSE:K[14]), Kraft Foods (NASDAQ:KRFT[15]), and LinkedIn (NYSE:LNKD[16]).

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he is long AAPL.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/11/IPMarketRecap.gif
  2. “Sell in May and go away”: http://investorplace.com/2013/05/sell-in-may-and-go-away-our-experts-weigh-in/
  3. FB: http://studio-5.financialcontent.com/investplace/quote?Symbol=FB
  4. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  5. BBRY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBRY
  6. CEO Thorsten Heins’ discouraging comments about the tablet market: http://slant.investorplace.com/2013/05/blackberrys-tablet-strategy-we-stink-but-its-only-a-fad-anyway/
  7. CSCO: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSCO
  8. IBM: http://studio-5.financialcontent.com/investplace/quote?Symbol=IBM
  9. HPQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=HPQ
  10. TMUS: http://studio-5.financialcontent.com/investplace/quote?Symbol=TMUS
  11. PCS: http://studio-5.financialcontent.com/investplace/quote?Symbol=PCS
  12. HUM: http://studio-5.financialcontent.com/investplace/quote?Symbol=HUM
  13. GNW: http://studio-5.financialcontent.com/investplace/quote?Symbol=GNW
  14. K: http://studio-5.financialcontent.com/investplace/quote?Symbol=K
  15. KRFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=KRFT
  16. LNKD: http://studio-5.financialcontent.com/investplace/quote?Symbol=LNKD
  17. JRCC: http://studio-5.financialcontent.com/investplace/quote?Symbol=JRCC
  18. AMD: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMD
  19. NCR: http://studio-5.financialcontent.com/investplace/quote?Symbol=NCR
  20. CRAY: http://studio-5.financialcontent.com/investplace/quote?Symbol=CRAY
  21. KKD: http://studio-5.financialcontent.com/investplace/quote?Symbol=KKD
  22. JDSU: http://studio-5.financialcontent.com/investplace/quote?Symbol=JDS

Source URL: http://investorplace.com/2013/05/wednesdays-ip-market-recap-aapl-hpq-csco-k-lnkd-kkd/
Short URL: http://invstplc.com/1hTO2Qh