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: Monday's 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 InvestorPlace.com. As of this writing, he was long MSFT.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/11/IPMarketRecap.gif
  2. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  3. WFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=WFC
  4. MS: http://studio-5.financialcontent.com/investplace/quote?Symbol=MS
  5. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  6. LEAP: http://studio-5.financialcontent.com/investplace/quote?Symbol=LEAP
  7. T: http://studio-5.financialcontent.com/investplace/quote?Symbol=T
  8. S: http://studio-5.financialcontent.com/investplace/quote?Symbol=S
  9. SFTBF: http://studio-5.financialcontent.com/investplace/quote?Symbol=SFTBF
  10. MSFT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MSFT
  11. reduction in the base price: http://investorplace.com/2013/07/microsoft-to-slash-surface-rt-tablet-prices-by-150/
  12. ORCL: http://studio-5.financialcontent.com/investplace/quote?Symbol=ORCL
  13. LEN: http://studio-5.financialcontent.com/investplace/quote?Symbol=LEN
  14. DHI: http://studio-5.financialcontent.com/investplace/quote?Symbol=DHI
  15. PHM: http://studio-5.financialcontent.com/investplace/quote?Symbol=PHI
  16. KO: http://studio-5.financialcontent.com/investplace/quote?Symbol=KO
  17. YHOO: http://studio-5.financialcontent.com/investplace/quote?Symbol=YHOO
  18. JNJ: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNJ
  19. CSIQ: http://studio-5.financialcontent.com/investplace/quote?Symbol=CSIQ
  20. RSH: http://studio-5.financialcontent.com/investplace/quote?Symbol=RSH
  21. NIHD: http://studio-5.financialcontent.com/investplace/quote?Symbol=NIHD
  22. WBMD: http://studio-5.financialcontent.com/investplace/quote?Symbol=WBMD
  23. ALXN: http://studio-5.financialcontent.com/investplace/quote?Symbol=ALXN
  24. AMT: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMT

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