Automakers Take the Wheel: Wednesday’s IP Market Recap

by Marc Bastow | September 4, 2013 4:55 pm

IPMarketRecap Automakers Take the Wheel: Wednesday's IP Market RecapMarkets moved ahead gingerly in early Wednesday trading until the Federal Reserve released its “Beige Book” report suggesting that economic growth was moving at a modest pace with improvements across all of its districts.

At which point markets soared ahead.

The Nasdaq led the charge ahead, rising 1.01% to 3649.04, while the S&P 500 climbed 0.81% to 1653.08. The Dow Jones Industrial Average posted a gain of 0.65% to 14,930.87.

Automakers rallied after posting strong August sales figures, with the industry’s strongest results in nearly six years. General Motors (GM[1], +5%), Ford (F[2], +3.5%), Honda (HMC[3], +1.6%) and Toyota (TM[4], +1.3%) all headed higher.

Network communications provider Ciena (CIEN[5]) jumped more than 14% after announcing beats on the top and bottom lines, as well as an upbeat view for the rest of the year. Alcatel-Lucent (ALU[6]) and Juniper Networks (JNPR[7]) each headed roughly 6% higher in sympathy.

Meanwhile, Apple (AAPL[8]) was bid up more than 2% as investors grow more eager for its Sept. 10 event[9], where it’s expected to unveil its new iPhone lines.

JCPenney (JCP[10]) surged more than 6% as hedge funds continue to pile into the stock. Kyle Bass’ Hayman Capital and Larry Robbins’ Glenview Capital have taken respective stakes of 5.2% and 9.1% in the struggling retailer. Glenview Capital now represents JCP’s largest shareholder.

Specialty women’s apparel retailer Francesca’s (FRAN[11]) was crushed, falling more than 25% after announcing both a miss on the top and bottom lines[12] for its second quarter, and guiding lower for the remained of the year.

Lastly, LinkedIn (LNKD[13]) fell over nearly 3% after announcing a secondary offering in which it would sell $1 billion worth of stock.

Three Up

Three Down

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

Endnotes:
  1. GM: http://studio-5.financialcontent.com/investplace/quote?Symbol=GM
  2. F: http://studio-5.financialcontent.com/investplace/quote?Symbol=F
  3. HMC: http://studio-5.financialcontent.com/investplace/quote?Symbol=HMC
  4. TM: http://studio-5.financialcontent.com/investplace/quote?Symbol=TM
  5. CIEN: http://studio-5.financialcontent.com/investplace/quote?Symbol=CIEN
  6. ALU: http://studio-5.financialcontent.com/investplace/quote?Symbol=ALU
  7. JNPR: http://studio-5.financialcontent.com/investplace/quote?Symbol=JNPR
  8. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  9. Sept. 10 event: http://investorplace.com/2013/09/wednesday-apple-rumors-china-event-signals-major-iphone-deal/
  10. JCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCP
  11. FRAN: http://studio-5.financialcontent.com/investplace/quote?Symbol=FRAN
  12. a miss on the top and bottom lines: http://investorplace.com/2013/09/francescas-q2-earnings-fran/
  13. LNKD: http://studio-5.financialcontent.com/investplace/quote?Symbol=LNKD
  14. JASO: http://studio-5.financialcontent.com/investplace/quote?Symbol=JASO
  15. ETFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=ETFC
  16. MU: http://studio-5.financialcontent.com/investplace/quote?Symbol=MU
  17. VVUS: http://studio-5.financialcontent.com/investplace/quote?Symbol=VVUS
  18. GWRE: http://studio-5.financialcontent.com/investplace/quote?Symbol=GWRE
  19. Read more: http://investorplace.com/ipo-playbook/guidewire-software-the-little-ipo-that-could/
  20. SAI: http://studio-5.financialcontent.com/investplace/quote?Symbol=SAI

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