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

by Marc Bastow | June 26, 2013 4:56 pm

[1]Let’s see if we have this right: Bad news on the economic front, in the form of a weaker-than-expected GDP report[2] 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[3] fell to a 34-month low of just over $1,223 an ounce, and gold mining companies saw shares fell. Barrick Gold (ABX[4], -8.26%), Goldcorp (GG[5], -4.65%) and Yamana Gold (AUY[6], -4.60%) were all down on the day. The SPDR Gold Shares Trust ETF (GLD)[7] lost more than 4% and is now down 27% year-to-date.

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

Apollo Group (APOL[9]), which owns for-profit University of Phoenix, slid more than 10% after reporting disappointing quarterly profits. Sector mate and competitor Strayer (STRA[10]) slid a bit more than 3% on the news.

Shares of gun manufacturer Smith & Wesson (SWHC[11]) 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[12]) 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[13]): Up 11.20% (55 cents) to $5.46
• Sunpower (SPWR[14]): Up 7.33% ($1.39) to $20.29
• Brocade (BRCD[15]): Up 6.20% (33 cents) to $5.65

Three Down

• Walter Energy (WLT[16]): Down 11.54% ($1.31) to $10.04
• Silver Wheaton (SLW[17]): Down 7.73% ($1.49) to $17.78
• Five Below (FIVE[18]): 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.

Source URL: https://investorplace.com/2013/06/wednesdays-ip-market-recap-abx-gc-gld-swhc-gis-p/

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