Banks Push Dow, S&P 500 to New Highs: Thursday’s IP Market Recap

by Marc Bastow | July 18, 2013 4:56 pm

IPMarketRecap Banks Push Dow, S&P 500 to New Highs: Thursday's IP Market Recap [1]Strong earnings from the financial sector, a sharp drop in first-time unemployment claims[2] and another day of Ben Bernanke testimony helped markets build on Wednesday’s momentum.

At Thursday’s end, the Dow Jones Industrial Average climbed 0.5% to close at a record 15548.54, while the S&P 500 also set a new high-water mark, up 0.5% to 1689.37. The Nasdaq finished ahead fractionally, closing at 3611.28.

Bank stocks ruled the day as Morgan Stanley (MS[3]) capped a great second-quarter earnings season for the “Big Six” banks[4]. MS announced a 42% rise in earnings[5] and said the Federal Reserve would allow it to buy back $500 million in stock, prompting investors to send it more than 4% higher. Meanwhile, Bank of America (BAC[6]) rose over 3% to finish at two-year highs, while Wells Fargo (WFC[7]) and JPMorgan (JPM[8]) each finished ahead by roughly 2%.

UnitedHealth Group (UNH[9]) stock rose more than 6% after announcing earnings that came in above estimates and raising its guidance for the remainder of the year.

Overstock.com (OSTK[10]) saw its shares rocket ahead over 22%, breaking through to a record close after reporting earnings that beat both the year-ago period’s profits and Wall Street estimates.

In the tech space, IBM (IBM[11]) headed up by about 2% after Wednesday night’s earnings release showing top- and bottom-line improvement, while Intel (INTC[12]) disappointed and slumped off 4%. Meanwhile, Dell (DELL[13]) inched ahead more than 1% after the company postponed its vote[14] on competing takeover plans.

Finally, shares of wireless manufacturer Nokia (NOK[15]) were spared a bit after announcing a revenue miss[16], falling fractionally.

After-hours news was dominated by Google (GOOG[17]) and Microsoft (MSFT[18]).

Google’s earnings for Q2 slipped from $10.13 per share to $9.71 on revenues that grew to $14.1 billion, both figures falling short. Meanwhile, Microsoft earnings fell a penny per share year-over-year to 66 cents on revenues that improved 10% to $19.9 billion; again, both figures missed analyst expectations. Both stocks were off by roughly 5% in early after-hours trading.

Earnings notables for Friday include General Electric (GE[19]) and Vodafone (VOD[20]).

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long MSFT.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/11/IPMarketRecap.gif
  2. a sharp drop in first-time unemployment claims: http://investorplace.com/2013/07/new-jobless-claims-signal-slowing-pace-of-layoffs/
  3. MS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MS
  4. great second-quarter earnings season for the “Big Six” banks: http://investorplace.com/2013/07/the-3-best-big-six-bank-stocks-to-buy/
  5. 42% rise in earnings: http://investorplace.com/2013/07/morgan-stanley-soars-on-stock-buyback-earnings/
  6. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  7. WFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=WFC
  8. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  9. UNH: http://studio-5.financialcontent.com/investplace/quote?Symbol=UNH
  10. OSTK: http://studio-5.financialcontent.com/investplace/quote?Symbol=OSTK
  11. IBM: http://studio-5.financialcontent.com/investplace/quote?Symbol=IBM
  12. INTC: http://studio-5.financialcontent.com/investplace/quote?Symbol=INTC
  13. DELL: http://studio-5.financialcontent.com/investplace/quote?Symbol=DELL
  14. company postponed its vote: http://investorplace.com/2013/07/dell-delays-buyout-vote/
  15. NOK: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOK
  16. announcing a revenue miss: http://slant.investorplace.com/2013/07/nokia-earnings-nok-stock-lumia-blackberry-bbry-iphone/
  17. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  18. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  19. GE: http://studio-5.financialcontent.com/investplace/quote?Symbol=GE
  20. VOD: http://studio-5.financialcontent.com/investplace/quote?Symbol=VOD
  21. SVU: http://studio-5.financialcontent.com/investplace/quote?Symbol=SVU
  22. JCI: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCI
  23. APO: http://studio-5.financialcontent.com/investplace/quote?Symbol=APO
  24. SCSS: http://studio-5.financialcontent.com/investplace/quote?Symbol=SCSS
  25. SHW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SHW
  26. EBAY: http://studio-5.financialcontent.com/investplace/quote?Symbol=EBAY

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