S&P Hits Five-Year High — Thursday’s IP Market Recap

by Marc Bastow | January 10, 2013 5:03 pm

InvestorPlace Market Recap[1]The S&P 500 was powered to a five-year high on Thursday thanks to optimistic earnings momentum, a number of positive corporate headlines and encouraging data on the Chinese exports front.

When it was all said and done, the S&P surged ahead 0.76% to finish at 1,472.12. The Dow Jones Industrial Average gained 0.57% at 13,466.80 — led by bank stocks Bank of America (NYSE:BAC[2], +3.1%) and JPMorgan (NYSE:JPM[3], +1.5%), among others — and the Nasdaq pushed ahead 0.51% to 3,121.76.

Finnish tech firm Nokia (NYSE:NOK[4]) rallied up more than 18% after the company announced it had sold more than 6.6 million smartphones — powered by 4.4 million Lumia units[5] — to mark its first increase in smartphone sales in a year.

Ford (NYSE:F[6]) announced it was doubling its dividend[7], and investors were immediately rewarded with a 2% jump in share price as the automaker said it expects to continue future increases based on record profit margins and improving cash. The new dividend represents a 2.9% yield on Thursday’s closing price.

Supervalu (NYSE:SVU[8]) continued a monthslong rebound after announcing it had reached a deal to sell five of its biggest grocery chains — Albertson’s, Acme, Jewel-Osco, Shaw’s and Star Market — for $100 million in cash and more than $3 billion in debt to private-equity fund Cerberus. SVU finished up 14%.

Luxury retailer Tiffany (NYSE:TIF[9]) lost more than 4% after reporting that holiday season sales improved just 4% worldwide — near the low end of expectations — and warned about 2013 earnings growth because of economic uncertainty in its major markets. Moving in sympathy, upscale retailer Michael Kors (NYSE:KORS[10]) dropped 2% while luxury accessory company Coach (NYSE:COH[11]) fell just less than 1%.

The battle for the soul of Herbalife (NYSE:HLF[12]) also continued Thursday. HLF shares fell 2% while hedge-fund managers jockeyed for control[13] of the slumping nutritional products maker. In a presentation, Herbalife laid out its case as a legitimate enterprise — and not the pyramid scheme claimed by Pershing Square’s Bill Ackman.

Finally, Best Buy (NYSE:BBY[14]) investors found their shares worth over 5% more by the end of the trading day after the company said its online sales were gaining ground[15] on Amazon (NASDAQ:AMZN[16]) in some regions, crediting recently instituted sales taxes on Amazon for the improvement.

Three Up

Three Down

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

  1. [Image]: https://www.investorplace.com/hot-topics/investorplace-market-recap/
  2. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  3. JPM: http://studio-5.financialcontent.com/investplace/quote?Symbol=JPM
  4. NOK: http://studio-5.financialcontent.com/investplace/quote?Symbol=NOK
  5. 4.4 million Lumia units: https://investorplace.com/2013/01/lumia-lights-up-nokia-stock/
  6. F: http://studio-5.financialcontent.com/investplace/quote?Symbol=F
  7. announced it was doubling its dividend: https://investorplace.com/2013/01/ford-doubles-its-dividend/
  8. SVU: http://studio-5.financialcontent.com/investplace/quote?Symbol=SVU
  9. TIF: http://studio-5.financialcontent.com/investplace/quote?Symbol=TIF
  10. KORS: http://studio-5.financialcontent.com/investplace/quote?Symbol=KORS
  11. COH: http://studio-5.financialcontent.com/investplace/quote?Symbol=COH
  12. HLF: http://studio-5.financialcontent.com/investplace/quote?Symbol=HLF
  13. hedge-fund managers jockeyed for control: https://investorplace.com/2013/01/hedge-funds-battling-over-herbalife-run/
  14. BBY: http://studio-5.financialcontent.com/investplace/quote?Symbol=BBY
  15. its online sales were gaining ground: http://news.yahoo.com/best-buy-online-sales-rise-amazon-collects-more-194002886--sector.html
  16. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  17. ISIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=ISIS
  18. YELP: http://studio-5.financialcontent.com/investplace/quote?Symbol=YELP
  19. URBN: http://studio-5.financialcontent.com/investplace/quote?Symbol=URBN
  20. MCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=MCP
  21. DNDN: http://studio-5.financialcontent.com/investplace/quote?Symbol=DNDN
  22. RT: http://studio-5.financialcontent.com/investplace/quote?Symbol=RT

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