Solar Flare Sparks Markets — Tuesday’s IP Market Recap

by Marc Bastow | June 12, 2012 5:24 pm

InvestorPlace Market Recap[1]Solar stocks paved the way to a strong market day Tuesday after a First Solar (NASDAQ:FSLR[2]) deal sparked the industry.

First Solar landed a project for Australia’s Solar Flagships Program to design, to construct and maintain two utility-scale solar photovoltaic power projects totaling 159 megawatts AC for AGL Energy Limited. FSLR jumped more than 21% on the news and had the rest of the sector booming. Other solar names headed higher were LDK Solar (NYSE:LDK[3], +17%), SunPower (NASDAQ:SPWR[4], +8.8%) and Trina Solar (NYSE:TSL[5], +8.3%).

U.S. stock markets shook off worries about the European banking system, sending the indices to a sigh-of-relief rally to more than 1% across the board. The Dow Jones finished up 1.3% to 12,573, the Nasdaq gained 1.22% to end at 2,843, and the S&P 500 ended ahead 1.2% at 1,324.

Europe continues to be a background worry, however, with yields on 10-year Spanish bonds hitting a euro-era high of 6.8%, and Italian bond yields also above the 6% benchmark — a warning sign that the country could need a bailout of its own. Adding to pressures on Spain’s banking system, Fitch Ratings downgraded 18 Spanish banks.

However, U.S. banking stocks showed plenty of strength Tuesday, as Citigroup (NYSE:C[6]) rebounded nicely from Monday’s losses with a 4.3% gain, and JPMorgan Chase (NYSE:JPM[7]) and Bank of America (NYSE:BAC[8]) each finished up nearly 3%.

Shares of high-end retailer Michael Kors (NYSE:KORS[9]) shot up more than 7% after the fashion retailer reported fiscal fourth-quarter sales[10] that more than doubled from last year’s results. The report easily topped forecasts as well as the company’s earlier guidance.

Performance retailer Under Armour (NYSE:UA[11]) also continued its recent rise[12], finishing the day up more than 3% as BofA raised its price target to (a pre-split) $120 per share.

Juniper Networks (NYSE:JNPR[13]) shares gained about 1% after the company announced a $1 billion share repurchase plan[14] late Monday. Storage hardware maker Fusion-io (NYSE:FIO[15]) gained more than 5% Tuesday and helped Cisco (NASDAQ:CSCO[16]) break out of a long funk with its own 2% move on news of a new contract[17]. FIO’s memory systems will be used in Cisco’s B-series blade servers.

On the other end of the spectrum, shares of Internet game stock Zynga (NASDAQ:ZNGA[18]) continued their 60% slide since March[19], touching all-time intraday lows of $4.78 before finishing the day around 10% to $4.97.

Three Up

Three Down:

Marc Bastow is an Assistant Editor at As of this writing, he did not hold a position in any of the aforementioned securities.

  1. [Image]:
  2. FSLR:
  3. LDK:
  4. SPWR:
  5. TSL:
  6. C:
  7. JPM:
  8. BAC:
  9. KORS:
  10. reported fiscal fourth-quarter sales:
  11. UA:
  12. continued its recent rise:
  13. JNPR:
  14. $1 billion share repurchase plan:
  15. FIO:
  16. CSCO:
  17. news of a new contract:
  18. ZNGA:
  19. continued their 60% slide since March:
  20. ARNA:
  21. LNG:
  22. TEX:
  23. STJ:
  24. NAV:
  25. HAR:

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