Tech Slides Amid Google’s Goof — Thursday’s IP Market Recap

by Alyssa Oursler | October 18, 2012 5:24 pm

InvestorPlace Market Recap[1]Google (NASDAQ:GOOG[2]) shook the markets today when the company didn’t just accidentally release an incomplete earnings report just after noon — it accidentally released worse-than-expected numbers[3] just after noon.

The tech giant missed expectations for both earnings and revenue, and shares plummeted 9% before trading was halted. GOOG closed with losses of 8%. Shares of its financial printer R.R. Donnelley (NASDAQ:RRD[4]) — whom Google blamed for the incident — also spiked down before finishing at a more modest fractional loss.

The snafu took its toll on the markets, especially the Nasdaq, which lost 1.01% to close at 3,072.87. The S&P 500 fell for the first time in three days, dropping 0.24% to 1,457.34, and the Dow’s four-day streak of gains ended, as it lost 0.06% to finish at 13,548.

A number of smaller tech names also took significant dives Thursday. Mellanox Technologies (NASDAQ:MLNX[5]) plummeted 20% on a weak Q4 forecast[6], while Align Technology (NASDAQ:ALGN[7]) and CytRx Corp. (NASDAQ:CYTR[8]) slumped similarly. PLX Technology (NASDAQ:PLXT[9]) wasn’t far behind with a 13% drop.

Before Google stole the show, news that jobless claims rose 46,000[10] to 388,000 last week was making headlines. The rise was attributed to seasonal factors, though, while the four-week moving average was down month-over-month.

Good news also came out of China, as more economic data confirmed a soft-landing for the slowing economy. It grew 7.4% year-over-year in September, while retail sales gained 14.4% as well.

Back home, the earnings show continued. Dow insurance representative Travelers (NYSE:TRV[11]) set an earnings record[12] by more than doubling its income, sending shares 4% skyward, while Southwest Airlines (NYSE:LUV[13]) also saw slight gains on a positive report[14]. Verizon (NYSE:VZ[15]) grew earnings by 16%[16], matching Wall Street’s estimates and sending shares up just more than 2% on the day.

Grocery chain SuperValu (NYSE:SVU[17]) reported another awful quarter but got a 5% pop on the news that it was talking to interested parties about a sale. eBay (NASDAQ:EBAY[18]) also climbed 5%[19] after reporting the afternoon prior.

Morgan Stanley (NYSE:MS[20]) announced that it lost $1 billion last quarter;[21] adjusted EPS beat the Street’s estimates, but shares still slipped around 4%. Shares of Nokia (NYSE:NOK[22]) dipped nearly 5% after the company reported its sixth straight quarterly loss[23], while Philip Morris International (NYSE:PM[24]) fell around 4% on a drop in earnings and sales[25].

Mattress-maker Select Comfort (NASDAQ:SCSS[26]) took a 7% haircut despite beating expectations all around[27] and raising its earnings outlook.

Finally, Microsoft (NASDAQ:MSFT[28]) and Chipotle (NYSE:CMG[29]) both reported after the bell and stumbled in after-hours trading. Chipotle shares slipped more than 12% as the company missed expectations for sales and earnings, while Microsoft fell around 3% on a 22% decline in earnings.

Three Up

Three Down

Alyssa Oursler is an Editorial Assistant at As of this writing, she did not hold a position in any of the aforementioned securities.

  1. [Image]:
  2. GOOG:
  3. worse-than-expected numbers:
  4. RRD:
  5. MLNX:
  6. on a weak Q4 forecast:
  7. ALGN:
  8. CYTR:
  9. PLXT:
  10. jobless claims rose 46,000:
  11. TRV:
  12. set an earnings record:
  13. LUV:
  14. on a positive report:
  15. VZ:
  16. grew earnings by 16%:
  17. SVU:
  18. EBAY:
  19. climbed 5%:
  20. MS:
  21. lost $1 billion last quarter;:
  22. NOK:
  23. sixth straight quarterly loss:
  24. PM:
  25. drop in earnings and sales:
  26. SCSS:
  27. beating expectations all around:
  28. MSFT:
  29. CMG:
  30. CYBI:
  31. BWEN:
  32. OEH:
  33. IMUC:
  34. RGA:
  35. CLWR:

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