Retail Results Spoil the Day — Monday’s IP Market Recap

InvestorPlace Market RecapAll it took for U.S. stocks to open lower Monday was a surprise drop in June retail sales and some concerns over corporate earnings reports due this week. 

Meanwhile retail sales for June were weak, dropping 0.5% from the previous month and lower than economists’ expectations for a 0.2% increase. Nearly every sector took a hit, from furniture and electronics shops to gas stations and sporting goods stores.

Citigroup (NYSE:C) didn’t do much to assuage investors, opening the day announcing lower second-quarter revenues and earnings compared to last year, though earnings per share came in better than expected.

Investors scared off by the retail and earning news fled to U.S. treasury securities, as the 10-year note fell to a record low 1.44% before settling in at 1.46% by day’s end.

All was not a total loss, though, as the Dow managed to climb back from just under 12,700 at the start to finish down 0.39% at 12,727. The Nasdaq finished down 0.4% at 2,896, while the S&P 500 rallied to finish down 0.23% at 1,354.

M&A was alive and kicking Monday. GlaxoSmithKline (NYSE:GSK) upped the ante in its buyout bid for biopharmaceutical company Human Genome Sciences (NASDAQ:HGSI) to $14.25 per share, with HGSI accepting. The biotech’s stock jumped 4.5% in response, while GSK rose less than 1% on the news. Pharmaceutical companies Pfizer (NYSE:PFE), Teva (NYSE:TEVA) and Roche (PINK:RHHBY) all were up more than 1% on the heels of the GSK agreement.

Shares of financial services companies Visa (NYSE:V) and MasterCard (NYSE:MA) gained more than 2% after announcing the settlement of a antitrust case with merchants over the weekend.

Nokia (NYSE:NOK) shares fell more than 2% after announcing it was slashing the price of its smartphone in the United States. The cost of the Lumia 900 will drop to $49.99 as NOK tries to catch up with the more popular Apple (NASDAQ:AAPL) iPhone and Google (NASDAQ:GOOG) Android models. Good luck with that.

Tuesday looms large on the earnings front, as Charles Schwab (NYSE:SCHW), Goldman Sachs (NYSE:GS), Coca-Cola (NYSE:KO) and Johnson & Johnson (NYSE:JNJ) all report before the open, and Intel (NASDAQ:INTC), Yahoo (NASDAQ:YHOO) and CSX (NYSE:CSX) all report after the bell.

Three Up

  • SuperValu (NYSE:SVU): Up 6.9% (16 cents) to $2.48.
  • First Solar (NASDAQ:FSLR): Up 5.9% (83 cents) to $15.
  • Sprint (NYSE:S): Up 4.2% (14 cents) to $3.47.

Three Down

  • Green Mountain Coffee Roasters (NASDAQ:GMCR): Down 8.9% ($1.76) to $17.94.
  • Facebook (NASDAQ:FB): Down 7.8% ($2.39) to $28.33.
  • Ciena (NASDAQ:CIEN): Down 4.1% (59 cents) to $13.61.

Marc Bastow is an Assistant Editor at As of this writing he is long INTC.

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