A Lot of Movin’ for Nothin’ — Tuesday’s IP Market Recap

Roller-coaster day ends in broad losses for the major indices

   
A Lot of Movin’ for Nothin’ — Tuesday’s IP Market Recap

IPMarketRecap A Lot of Movin for Nothin    Tuesdays IP Market RecapStocks found themselves under pressure from the opening bell Tuesday by concerns about central banks’ action on bond-buying programs and loose monetary policies, which drove the action both in the U.S. and abroad.

The early-morning drop came as Japanese central bankers left its monetary policy unchanged, and while markets recovered almost all of their losses by midday, they receded nearly all the way back again by trading’s end.

When it was all said and done, the Nasdaq fell 1.06% to 3436.95, the S&P 500 fell 1.02% to finish at 1626.13, and the Dow Jones Industrial Average declined by 0.76%, finishing at 15122.02.

In individual-stock news, Lululemon (LULU) dropped more than 17% after the yoga and athletic apparel maker announced that CEO Christine Day is stepping down after a five-year run at the helm of the athletic apparel company. The announcement came amid better-than-expected first-quarter earnings and a favorable Q2 outlook.

Sprint (S) improved by more than 2% after Japan’s Softbank (SFTBF) increased its takeover offer to purchase a 78% stake in Sprint to $21.6 billion, a 7.5% improvement. Softbank’s offer still falls below the $25.5 billion offer from Dish Network (DISH), but Sprint’s second-largest shareholder, Paulson & Co., has expressed approval of the Softbank bid. Shareholders will vote on the takeover bid June 25.

Shares of Dole Food (DOLE) surged ahead almost 23% after the company said CEO and Chairman David Murdock made a cash offer of $1.07 billion to buy the 60.5% of the company he doesn’t already own.

Citigroup (C) declined by more than 3% after an analyst at Portales Partners warned that the multinational banking giant could lose up to $7 billion in currency transactions.

Finally, Boeing (BA) fell fractionally after the company trimmed its 20-year forecast for wide-body jet demand, even as it raised its forecast for single-aisle jets and was awarded two billion-dollar contracts for helicopters it builds with Bell Helicopter.

Three Up

  • Questor Pharmaceuticals (QCOR): Up 14.9% ($5.47) to $42.18.
  • Diamond Foods (DMND): Up 9.4%( $1.4) to $19.18.
  • GameStop (GME): Up 7.8% ($2.73) to $37.72.

Three Down

  • Corinthian Colleges (COCO): Down 11.8% (33 cents) to $2.46.
  • Sears Hometown and Outlet Stores (SHOS): Down 8.8% ($4.27) to $44.42.
  • First Solar (FSLR): Down 7.3% ($4.11) to $52.29.

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he did not hold a position in any of the aforementioned securities.


Article printed from InvestorPlace Media, http://investorplace.com/2013/06/tuesdays-ip-market-recap-lulu-s-dish-dole-ba/.

©2014 InvestorPlace Media, LLC

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