Stocks Come Out Swinging: Monday’s IP Market Recap

by Marc Bastow | July 1, 2013 5:24 pm

InvestorPlace Market Recap[1]Markets greeted the start of the second half of the trading year with optimism Monday thanks in part from news from the Commerce Department showing a 0.5% rise in construction spending during May, combined with an Institute for Supply Management report showing an expansion in manufacturing[2].

Bolstered by a big move ahead in Apple (AAPL[3]) — sparked by an analyst upgrade from Raymond James — the Nasdaq led the way higher, closing ahead 0.92% to 3434.49. The S&P 500 moved ahead 0.54% to 1614.96, while the Dow Jones Industrial Average climbed 0.44% to close at 14974.96.

Corporate news and analyst calls helped move prices on individual stocks.

Biopharmaceutical maker Onyx Pharmaceuticals (ONXX[4]) soared more than 50% after rejecting an unsolicited bid of $120 per share — or 38% higher than Friday’s closing price — from Amgen (AMGN[5]) on Sunday.

Social game-maker Zynga (ZNGA[6]) rose more than 10% after CEO Mark Pincus stepped down, and reports surfaced saying it is hiring Don Mattrick, former head of Microsoft’s (MSFT[7]) entertainment division, to replace Pincus.

Blackberry (BBRY[8]) continued to fall after last week’s big earnings miss[9], with shares trading down nearly 2% on the day, following up Friday’s 25%-plus decline.

On the analyst side, Best Buy (BBY[10]) shares surged more than 8% to set a new 52-week high after Credit Suisse re-initiated coverage of the stock with an “outperform” rating. That follows up a first half in which BBY was the second-best performer in the S&P 500[11], ahead 128%.

Electric car-maker Tesla (TSLA[12]) headed 9% higher after Jefferies raised its target price on the stock to $130 per share, saying it would deliver 21,000 Model S cars in 2013.

Internet radio service Pandora (P[13]) also got the benefit of an upgrade, rising 3% and touching a new 52-week high after being raised from “equal weight” to “overweight” at Morgan Stanley.

Finally, News Corp started a new era after splitting the company into two pieces[14]: News Corp (NWSA[15]) and 21st Century Fox (FOXA[16]).

Three Up

Three Down

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

  1. [Image]:
  2. expansion in manufacturing:
  3. AAPL:
  4. ONXX:
  5. AMGN:
  6. ZNGA:
  7. MSFT:
  8. BBRY:
  9. last week’s big earnings miss:
  10. BBY:
  11. second-best performer in the S&P 500:
  12. TSLA:
  13. P:
  14. splitting the company into two pieces:
  15. NWSA:
  16. FOXA:
  17. BKS:
  18. JKS:
  19. OWW:
  20. COV:
  21. NBG:
  22. TMUS:

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