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

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

InvestorPlace Market Recap[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

Three Down

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

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  2. weaker-than-expected GDP report:
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