Boeing Grounds the Dow — Wednesday’s IP Market Recap

by Marc Bastow | January 16, 2013 4:44 pm

InvestorPlace Market Recap[1]Wednesday was role reversal day for the major U.S. indices, with one particular stock giving a helpful nudge to the Nasdaq and the Dow taking a loss. All the while, earnings season kicked into high gear, and concerns over the debt ceiling filtered into investor sentiment.

The Nasdaq improved by 0.22% to 3,117.54, thanks to a 4%-plus gain in beaten-of-late Apple (NASDAQ:AAPL[2]). That also helped the S&P finish with marginal gains to 1,472.63. The Dow ended 0.21% in the red to close at 13,507.01.

Hampering the Dow was Boeing (NYSE:BA[3]), which fell more than 3% as its Dreamliner suffered yet another issue[4]. Two Japanese airlines grounded their fleets of 787 aircraft after one of All Nippon Airways‘ (PINK:ALNPY[5]) Dreamliners was forced into an emergency landing. Boeing’s drop was by far the largest in the Dow on Wednesday.

Goldman Sachs (NYSE:GS[6]) reported earnings that beat expectations[7], driven by strong results from its proprietary trading business. Investors bid up GS stock more than 4%, sending it to highs not reached in more than a year.

JPMorgan Chase (NYSE:JPM[8]) struck another positive note for financials, saying both Q4 and full-year 2012 profit set records, which marks a third consecutive year of record income for the banking giant. JPM also announced that CEO Jamie Dimon’s bonus would be cut to $10 million (more than half of his 2011 haul) in lieu of the “London Whale” debacle. JPM climbed up just under 1% on the news.

Dell (NASDAQ:DELL[9]) fell more than 4% after CNNMoney reported that at least one equity firm, TPG Capital, has walked away from a potential deal[10] to take Dell private. Conversely, Hewlett-Packard (NYSE:HPQ[11]) ran up more than 4% after Dow Jones reported that HPQ has received interest from potential buyers about its Autonomy business unit.

Shares of Chipotle (NYSE:CMG[12]) sank 5% after the Mexican food chain restaurant revised fourth-quarter earnings well below analysts’ expectations.

Finally, gun stocks Smith & Wesson (NASDAQ:SWHC[13], +5.7%) and Sturm, Ruger (NYSE:RGR[14], +5%), as well as outdoors retailer Cabelas (NYSE:CAB[15], +6.1%), forged ahead after President Barack Obama announced broad measures aimed at gun control legislation and action, including reintroducing a ban on assault-type weapons.

Earnings reports for Thursday include Intel (NASDAQ:INTC[16]), General Electric (NYSE:GE[17]), Citigroup (NYSE:C[18]), and American Express (NYSE:AXP[19]).

Three Up

Three Down

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

  1. [Image]:
  2. AAPL:
  3. BA:
  4. suffered yet another issue:
  5. ALNPY:
  6. GS:
  7. earnings that beat expectations:
  8. JPM:
  9. DELL:
  10. walked away from a potential deal:
  11. HPQ:
  12. CMG:
  13. SWHC:
  14. RGR:
  15. CAB:
  16. INTC:
  17. GE:
  18. C:
  19. AXP:
  20. GNW:
  21. PSX:
  22. CROX:
  23. SPLK:
  24. GM:

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