Alcoa, Yum Kick Off Q3 Earnings — Tuesday’s IP Market Recap

by Alyssa Oursler | October 9, 2012 5:18 pm

InvestorPlace Market Recap[1]Alcoa (NYSE:AA[2]) kicked off the official earnings season with a beat after the bell Tuesday, sending shares higher in after-hours trading. The company also held strong to its forecast for doubling aluminum demand between 2010 and 2020, though AA shares only crawled slightly higher in early after-market trading.

Earnings and revenue both grew year-over-year for Yum! Brands (NYSE:YUM[3]) as well. The company beat EPS estimates by 2 cents and raised its full-year earnings guidance, sending YUM up 4% after hours.

U.S. stocks fell during normal trading hours, though, as investors braced themselves for the start of what is still expected to be a gloomy quarter overall. The IMF also recently warned[4] that the global slowdown is worsening. The news came on the heels of similarly glum warnings from economic bellwethers including Caterpillar (NYSE:CAT[5]) and FedEx (NYSE:FDX[6]).

For the day, the Nasdaq was sent 1.5% in the red to 3,065.02, the S&P dropped just under 1% to 1,441.49 and the Dow slid 0.9% to 13,473.99.

Tech stocks in particular fueled the markets’ downward movement on Tuesday — especially for the Nasdaq. Apple (NASDAQ:AAPL[7]) for one, entered correction territory, trading down 10% from its all-time high and receiving a rating of “neutral” from Nomura. Intel (NASDAQ:INTC[8]) also reached a 52-week low with a loss of 2.7% on the day thanks to two negative analyst calls.

Energy stocks also saw solid gains. James River Coal (NASDAQ:JRCC[9]) climbed by double digits, Alpha Natural Resources (NYSE:ANR[10]) was up over 7% and Arch Coal (NYSE:ACI[11]), Gulfport Energy (NASDAQ:GPOR[12]), Newfield Exploration (NYSE:NFX[13]), Peabody Energy (NYSE:BTU[14]) and countless others finished in the black.

Netflix (NASDAQ:NFLX[15]) shares continued their wild ride[16] as well, dropping nearly 9% after an analyst cut the video streaming company’s stock to “underperform” from “buy.” The fall erased the company’s double-digit Monday gains.

RadioShack (NYSE:RSH[17]) was able to shake the downward trend by soaring more than 12% after an Bank of America (NYSE:BAC[18]) Merrill Lynch analyst upgraded the stock to “buy” from “underperform.”[19]

In gaming news, Glu Mobile (NASDAQ:GLUU[20]) plummeted just under 20% even after announcing a partnership with Probability PLC, a gambling operator based in the U.K. The company has been suffering collateral damage from the struggles of rival[21] Zynga (NASDAQ:ZNGA[22]).

Finally, Spectrum Brands (NYSE:SPB[23]) gained nearly 12% after announcing its plans[24] to purchase Stanley Black & Decker’s (NYSE:SWK[25]) hardware and home improvement business for $1.4 billion.

Three Up

Three Down

Alyssa Oursler is an editorial assistant at As of this writing, she did not own a position at any of the aforementioned securities.

  1. [Image]:
  2. AA:
  3. YUM:
  4. IMF also recently warned:
  5. CAT:
  6. FDX:
  7. AAPL:
  8. INTC:
  9. JRCC:
  10. ANR:
  11. ACI:
  12. GPOR:
  13. NFX:
  14. BTU:
  15. NFLX:
  16. shares continued their wild ride:
  17. RSH:
  18. BAC:
  19. upgraded the stock to “buy” from “underperform.”:
  20. GLUU:
  21. struggles of rival:
  22. ZNGA:
  23. SPB:
  24. after announcing its plans:
  25. SWK:
  26. BSDM:
  27. AFFY:
  28. BONT:
  29. EW:
  30. VRNG:
  31. VDSI:

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