The Beating Ain’t Done Yet: Monday’s IP Market Recap

by Marc Bastow | June 24, 2013 4:54 pm

[1]Monday didn’t start out how investors might have hoped, as persistent worries about the Federal Reserve’s stimulus policy and a disquieting statement from The People’s Bank of China[2] that led to losses in Asia sent U.S. stocks plunging early before a modest rally pared the losses by day’s end.

The People’s Bank urged a cautious lending approach for China’s largest banks, while asking them to to improve balance sheets, warnings that spread fears of a liquidity crunch through the markets.

The S&P 500 dropped 1.21% to close at 1573.09. The Nasdaq lost 1.09% to 3320.76, marking its worst four-day losing streak since 2011. The Dow Jones Industrial Average lost 0.94% to close at 14659.56, and has now shed a full 6% since it hit 15542.20 in May.

Leading the S&P 500 and Nasdaq lower was Apple (AAPL[3]), which fell 3% and briefly dipped below $400 for the first time since mid-April, putting the stock down 25% year-to-date. Jefferies lowered its 12-month price target on AAPL from $420 to $405 based on weakness in iPhone sales and inventory levels.

A majority of the tech sector followed Apple down, with Yahoo (YHOO[4]) tumbling nearly 4%, and Hewlett-Packard (HPQ[5]) and Intel (INTC[6]) falling close to 3%.

June did get another big Merger Monday[7]. Vanguard Health Systems (VHS[8]) surged after inking a $1.8 billion acquisition deal with Tenet Healthcare (THC). The $21-per-share offer represents a 70% premium to VHS’ Friday closing price. THC finished the day up more than 4%.

Meanwhile, Vodafone (VOD[9]) bought Kabel Deutschland (KBDHY[10]) — Germany’s largest cable operator[11] serving nearly 8.5 million customers — for $10.1 billion, marking its entry into the growing German cable market. Vodafone finished up fractionally on the news.

 Three Up

• Isis Pharmaceuticals (ISIS[12]): Up 29.2% ($6.43) to $28.42.
• Hercules Offshore (HERO[13]): Up 5.9% (38 cents) to $6.83.
• Blackberry (BBRY[14]): Up 2.4% (33 cents) to $14.17.

Three Down

• Walter Energy (WLT[15]): Down 16.1% ($2.04) to $10.60.
• Trina Solar (TSL[16]): Down 7.7% (43 cents) to $5.16.
• Arch Coal (ACI[17]): Down 6.7% (26 cents) to $3.65.

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

Source URL: https://investorplace.com/2013/06/mondays-ip-market-recap-yhoo-aapl-hpq-csco-vhsisis/

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