Citigroup Joins the Financial Beats: Monday’s IP Market Recap

by Marc Bastow | July 15, 2013 4:58 pm

IPMarketRecap Citigroup Joins the Financial Beats: Mondays IP Market Recap [1]Coming off a week that saw high-water marks for the S&P 500 and Dow Jones Industrial Average, investors turned their attention toward the earnings calendar — which this week is stocked with big names across the board — as well as the week’s first economic report, which showed soft but rising retail sales for June.

The Nasdaq led the way with a gain of 0.21% to 3607.49. The S&P 500 rolled to its eighth straight day of gains and another record, finishing ahead 0.14% at 1682.50. And the Dow Jones Industrial Average set yet another closing record, finishing up 0.13% to 15484.26.

Citigroup (C[2]) kicked off the week’s earnings by posting second-quarter earnings up 26% to $1.25 per share, topping analyst estimates of $1.18, amid lower loan losses and higher trading profits. Citigroup’s shares rose nearly 2% on the day, and shares of Wells Fargo (WFC[3]) — which reported its own beat late last week — also climbed more than 1% to reset its all-time highs, and investment banks Morgan Stanley (MS[4]) and Goldman Sachs (GS[5]) each gained around 2%.

Leap Wireless (LEAP[6]) — the prepaid wireless carrier behind Cricket Mobile — was one of the day’s biggest movers after AT&T (T[7]) announced a buyout bid. AT&T is offering $1.19 billion, or $15 per share — an 88% premium to Leap shares’ Friday close, but shares actually bounded 112%, likely expecting a higher offer. AT&T shares closed down fractionally.

The telecommunications sector was humming on the day, as Sprint (S[8]) rose more than 4%. Japan’s Softbank (SFTBF[9]) officially purchased the company at the end of last week.

Microsoft (MSFT[10]) rallied to improve its multiyear highs, up 1.5%. MSFT recently announced a reduction in the base price[11] of its Surface Tablet product. Fellow blue-chip tech stock Oracle (ORCL[12]) started its life on the NYSE with a bang, rising more than 2% on no particular news.

Finally, the housing sector took a beating, with shares of Lennar (LEN[13]) and D.R. Horton (DHI[14]) each losing more than 4%, while PulteGroup (PHM[15]) shed more than 1%.

Earnings releases ramp up on Tuesday, with notables Goldman Sachs (GS[5]), Coca-Cola (KO[16]), Yahoo (YHOO[17]) and Johnson & Johnson (JNJ[18]) on the docket.

Three Up

 Three Down

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

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  11. reduction in the base price:
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