Automakers Take the Wheel: Wednesday’s IP Market Recap

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

IPMarketRecap Automakers Take the Wheel: Wednesdays 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 As of this writing he is long AAPL.

  1. GM:
  2. F:
  3. HMC:
  4. TM:
  5. CIEN:
  6. ALU:
  7. JNPR:
  8. AAPL:
  9. Sept. 10 event:
  10. JCP:
  11. FRAN:
  12. a miss on the top and bottom lines:
  13. LNKD:
  14. JASO:
  15. ETFC:
  16. MU:
  17. VVUS:
  18. GWRE:
  19. Read more:
  20. SAI:

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