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Stocks Rally on Easing Fed Fears: Wednesday’s IP Market Recap

Broad gains on slower GDP report

   
Stocks Rally on Easing Fed Fears: Wednesday’s IP Market Recap

IPMarketRecap Stocks Rally on Easing Fed Fears: Wednesday's IP Market Recap Let’s see if we have this right: Bad news on the economic front, in the form of a weaker-than-expected GDP report from the Commerce Department, lifted the stock market higher.

Yes indeed, that’s correct: Investors took the news as as sign that the Fed would hold off any move to “taper” its easing policy, and the result was a second straight day of broad gains.

The Dow Jones Industrial Average led the way, rising 1.02% to close at 14910.40, with all but two components up on the day. The S&P 500 rose 0.96% to 1503.26, while the Nasdaq managed to gain 0.85% to close at 3376.22.

In sector news, gold prices fell to a 34-month low of just over $1,223 an ounce, and gold mining companies saw shares fell. Barrick Gold (ABX, -8.26%), Goldcorp (GG, -4.65%) and Yamana Gold (AUY, -4.60%) were all down on the day. The SPDR Gold Shares Trust ETF (GLD) lost more than 4% and is now down 27% year-to-date.

In corporate news, shares of internet radio provider Pandora (P) rose more than 8% after Cowan upgraded the company shares to “outperform”.

Apollo Group (APOL), which owns for-profit University of Phoenix, slid more than 10% after reporting disappointing quarterly profits. Sector mate and competitor Strayer (STRA) slid a bit more than 3% on the news.

Shares of gun manufacturer Smith & Wesson (SWHC) lost more than 2% despite issuing earnings and sales guidance well above forecasts, and indicating it can’t fill demand.

Consumer foods product giant General Mills (GIS) slid just under 1% after reporting earnings in line with estimates but providing weak guidance on results for the remainder of the year. 

Three Up

  • Himax Technologies (HIMX): Up 11.20% (55 cents) to $5.46
  • Sunpower (SPWR): Up 7.33% ($1.39) to $20.29
  • Brocade (BRCD): Up 6.20% (33 cents) to $5.65

Three Down

  • Walter Energy (WLT): Down 11.54% ($1.31) to $10.04
  • Silver Wheaton (SLW): Down 7.73% ($1.49) to $17.78
  • Five Below (FIVE): Down 6.34% ($2.42) to $35.78

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/wednesdays-ip-market-recap-abx-gc-gld-swhc-gis-p/.

©2014 InvestorPlace Media, LLC

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