S&P 500 Breaks Above 1700: Thursday’s IP Market Recap

by Marc Bastow | August 1, 2013 4:51 pm

IPMarketRecap S&P 500 Breaks Above 1700: Thursday's IP Market Recap [1]Thursday kicked off with a boom as the S&P 500 reached a new milestone early in the day, breaking through the 1700 level after the Labor Department reported first-time claims for unemployment benefits[2] sank to a 5-year low, adding to Wednesday’s positive jobs and GDP reports.

Additional good news came in the form of increased car sales[3] in July — although the results were below estimates — and all three indices finished ahead broadly by day’s end.

The Nasdaq finished with the biggest gain Thursday, roaring ahead 1.36% to 3675.74 on the strength of a rally in technology stocks. The S&P 500 maintained its early momentum and finished up 1.25% to 1706.87, and the Dow Jones Industrial Average rose 0.83% to 15628.02.

Leading the way on the Nasdaq was Yelp (YELP[4]), which soared more than 23% after announcing it had cut its losses for the second quarter, and Northland upgraded its shares from “market perform” to “outperform.”

SanDisk (SNDK[5]), which initiated a dividend[6] of 22.5 cents per share and announced a buyback program, roared ahead just under 6% on the day. Facebook (FB[7]) shares rose over 2%, but once again failed to close above its $38 IPO price.

Meanwhile, Google (GOOG[8]) moved ahead 2%, and heavily weighted Apple (AAPL[9]) — boosted by an analyst upgrade from Jefferies — rose nearly 1%.

Bank stocks also managed a nice rally, with Bank of America (BAC[10]) and Goldman Sachs (GS[11]) up more than 2% and Wells Fargo (WFC[12]) and Citigroup (C[13]) up over 1%.

On the earnings front, Exxon Mobil (XOM[14]) was the biggest loser on the Dow with a 1% loss after announcing Q2 earnings of $1.55 per share, well below analyst estimates of $1.89. Top-line results were no better, as revenues declined 16.4% year-over-year to $106.5 billion, although that bested estimates. Sectormate Royal Dutch Shell (RDS.A[15], RDS.B[16]) also saw shares fall on disappointing results, with adjusted earnings coming in at $1.46 per share compared to estimates of $1.88 per share and revenue down nearly 4%. Shares lost nearly 6% on the news.

However, ConocoPhillips (COP[17]) managed to move ahead nearly 2% after posting an earnings beat for the second quarter.

Procter & Gamble (PG[18]) moved ahead over 1% despite second-quarter earnings coming in 48% below last year, at 64 cents per share, down from $1.28 per share. P&G took large expense hits for restructuring charges, and a 2.2% rise in revenues to $20.66 billion helped keep the stock in positive territory for the day.

Finally, shares of JCPenney (JCP[19]) managed to rally more than 2% early before ending fractionally lower after conflicting reports emerged about CIT Group (CIT[20]) cutting off funding for some of JCP’s suppliers. The reports first surfaced in The New York Post, but they were quickly denied[21] by JCP.

Earnings notables for Friday include Chevron (CVX[22]) and Viacom (VIAB[23]).

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he is long AAPL and XOM.

Endnotes:
  1. [Image]: http://investorplace.com/wp-content/uploads/2011/11/IPMarketRecap.gif
  2. unemployment benefits: http://investorplace.com/2013/08/jobless-claims-hit-5-5-year-low/
  3. increased car sales: http://investorplace.com/2013/08/july-car-sales-rise-but-mostly-miss-estimates/
  4. YELP: http://studio-5.financialcontent.com/investplace/quote?Symbol=YELP
  5. SNDK: http://studio-5.financialcontent.com/investplace/quote?Symbol=SNDK
  6. which initiated a dividend: http://investorplace.com/2013/08/sandisk-joins-the-tech-dividend-party/
  7. FB: http://studio-5.financialcontent.com/investplace/quote?Symbol=FB
  8. GOOG: http://studio-5.financialcontent.com/investplace/quote?Symbol=GOOG
  9. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  10. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  11. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  12. WFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=WFC
  13. C: http://studio-5.financialcontent.com/investplace/quote?Symbol=C
  14. XOM: http://studio-5.financialcontent.com/investplace/quote?Symbol=XOM
  15. RDS.A: http://studio-5.financialcontent.com/investplace/quote?Symbol=RDS.A
  16. RDS.B: http://studio-5.financialcontent.com/investplace/quote?Symbol=RDS.B
  17. COP: http://studio-5.financialcontent.com/investplace/quote?Symbol=COP
  18. PG: http://studio-5.financialcontent.com/investplace/quote?Symbol=PG
  19. JCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCP
  20. CIT: http://studio-5.financialcontent.com/investplace/quote?Symbol=CIT
  21. quickly denied: http://investorplace.com/2013/08/jcpenney-denies-its-having-credit-problems/
  22. CVX: http://studio-5.financialcontent.com/investplace/quote?Symbol=CVX
  23. VIAB: http://studio-5.financialcontent.com/investplace/quote?Symbol=VIAB
  24. RENN: http://studio-5.financialcontent.com/investplace/quote?Symbol=RENN
  25. Z: http://studio-5.financialcontent.com/investplace/quote?Symbol=Z
  26. RKUS: http://studio-5.financialcontent.com/investplace/quote?Symbol=RKUS
  27. SBH: http://studio-5.financialcontent.com/investplace/quote?Symbol=SBH
  28. SPWR: http://studio-5.financialcontent.com/investplace/quote?Symbol=SPWR
  29. INT: http://studio-5.financialcontent.com/investplace/quote?Symbol=INT

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