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Poor Jobs Data Not Forgotten — Monday’s IP Market Recap

Markets head south; investors hunker down for more waiting


InvestorPlace Market RecapThe lingering hangover from Friday’s disappointing jobs report did not mend over the weekend, and investors sat on the sidelines waiting for the news from yet another round of meetings to take place this week.

The weak jobs report led investors to hope that Fed Chairman Ben Bernanke will announce another round of quantitative easing. In the meantime, after announcing agreement on how to handle the eurozone crises last week, details on the proposal to create a new banking authority still await meat on the bone, and a meeting of euro-area finance ministers this week might provide more — or less — concern for U.S. investors.

A more-pessimistic-than-not mix of uncertainty led to a bad day for the major indices; the Nasdaq fell 1.03% to finish at 3,104, the S&P finished down 0.61% to 1,429 and the Dow ended down 0.39% at 13,254.

The U.S. Treasury Department announced it will go forward with its biggest sale of shares in American International Group (NYSE:AIG) since it bailed the company out in 2008. The sale represents about $18 billion in shares with options to increase the size, and will leave the government with a minority stake — perhaps as low as 15% — in the company. AIG shares traded down 1.25% on the news.

Retailer Toys “R” Us — owned by Kohlberg Kravis Roberts (NYSE:KKR), Bain Capital and Vornado Realty Trust (NYSE:VNO) — announced it will launch its own child-friendly tablet computer. The Tabeo will retail for $149.99 and will only be sold in the Toys “R” Us stores.  Tablet competitors Amazon (NASAQ:AMZN) and Google (NASDAQ:GOOG) were noticably unconcerned about the move, with both stocks barely moving. KKR stock was up even more fractionally.

Shares of Internet radio provider Pandora (NYSE:P) continued to slide after Friday’s announcement that Apple (NASDAQ:AAPL) plans to offer a streaming music service. Shares fell nearly 5% on the day and are down nearly 20% since Sept. 6.

Shares of luxury clothing retailer Michael Kors (NYSE:KORS), which had been soaring on solid earnings and revenues numbers, tumbled over 3% as investors digested news of a secondary offering and perhaps an opportunity to cash in on recent gains. Kors announced the 20 million-share secondary offering Friday afternoon that gives underwriters a 30-day option to buy up to 15% of additional shares of the company.

Meanwhile, despite giddy investors awaiting more news on the details of Apple’s iPhone 5, AAPL shares actually slid 2% on the day, which tugged at the Nasdaq and S&P 500.

Intel (NASDAQ:INTC) also remained hung over from last week, falling more than 4% Monday; Intel last week warned investors of a slowdown in revenue growth for the remainder of the year.

In the banking sector, after a 33% rise in its stock since July, Morgan Stanley (NYSE:MS) fell back to earth just a bit, losing over 1.5% on the day as the sector in general, which had risen nicely over the summer, took a breather.

Three Up

  • Frontline (NYSE:FRO): Up 11.1% (38 cents) to $3.79.
  • Monster Worldwide (NYSE:MWW): Up 10.1% (75 cents) to $8.15.
  • Green Mountain Coffee Roasters (NASDAQ:GMCR): Up 9.1% ($2.53) to $30.36.

Three Down

  • Titan Machinery (NASDAQ:TITN): Down 23.5% ($5.95) to $19.41.
  • Leapfrog (NYSE:LF): Down 8.7% (80 cents) to $8.35.
  • Tesla Motors (NASDAQ:TSLA): Down 6.75% ($1.98) to $27.37.

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

Article printed from InvestorPlace Media,

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