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CPI, KO Take out the Fizzle: Tuesday’s IP Market Recap

Yahoo slides after the bell on a revenue miss

   

IPMarketRecap CPI, KO Take out the Fizzle: Tuesday's IP Market RecapA mixed bag of earnings news combined with a 0.5% uptick in June to the Consumer Price Index — to its highest level since February — dampened Tuesday’s mood on Wall Street, sending the broader indices to slight losses.

The S&P 500′s eight-day winning streak came to a close, finishing down 0.37% to 1676.25. The Nasdaq fell 0.25% to 3598.50, and the Dow Industrial Average lost 0.21% to finish at 15452.16.

Coca-Cola (KO) saw its shares fall nearly 2% — making it the biggest loser in the Dow — after announcing second-quarter profits fell 4% amid sluggish demand both in the U.S. and in Europe. Meanwhile, a solid profit report showing profit doubling in the second quarter at Goldman Sachs (GS) didn’t do the stock any particular good as investors sent shares down nearly 2%.

Securities and banking firm Charles Schwab (SCHW) saw its shares tumble more than 3% after its Q2 earnings declined nearly 7% compared to last year as expenses rose nearly 9%. SCHW’s troubles spilled over into the retail brokerage world, as E-Trade (ETFC) and TD Ameritrade (AMTD) fell more than 2% and 1%, respectively.

One of the biggest moves in the day came away from the earnings confessional, as high-flying electric car maker Tesla Motors (TSLA) sunk 14% after Goldman Sachs announced a bearish view of the stock, giving TSLA a price target of $84 per share — 34% below Monday’s closing price.

Gaming technology company Shuffle Master (SHFL) saw its shares surge amid a $1.3 billion buyout bid from Bally Technologies (BYI), which values SHFL shares at a roughly 24% premium to Monday’s close. BYI shares also rose 7%.

After the bell, Yahoo (YHOO) reported second-quarter net earnings of 30 cents per share, up 68% year-over-year and meeting analyst expectations. However, revenues of $1.071 billion were down 7% from the year-ago period and missed expectations, and Q3 revenue estimates also fell short of the consensus. YHOO shares were down nearly 2% in early after-hours trading.

Another big day of earnings announcements is on tap for Wednesday, with Bank of America (BAC), Intel (INTC), and American Express (AXP) heading up a crowded calendar.

Three Up

  • Renesola (SOL): Up 19% (55 cents) to $3.44.
  • Rite Aid (RAD): Up 8.1% (23 cents) to $3.06.
  • Forest Oil (FST): Up 7.9% (38 cents) to $5.18.

Three Down

  • Solarcity (SCTY): Down 8.65% ($3.86) to $40.76.
  • Isis Pharmaceuticals (ISIS): Down 6.59% ($2.21) to $31.34.
  • Dreamworks Animation (DWA): Down 6.01% ($1.60) to $25.04.

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


Article printed from InvestorPlace Media, http://investorplace.com/2013/07/tuesdays-ip-market-recap-ko-scty-byi-shfl-rad/.

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