CPI, KO Take out the Fizzle: Tuesday’s IP Market Recap

by Marc Bastow | July 16, 2013 5:18 pm

InvestorPlace Market Recap[1]A mixed bag of earnings news combined with a 0.5% uptick in June to the Consumer Price Index[2] — to its highest level since February — dampened Tuesday’s mood on Wall Street, sending the broader indices to slight losses.

The S&P 500’s eight-day winning streak came to a close, finishing down 0.37% to 1676.25. The Nasdaq fell 0.25% to 3598.50, and the Dow Industrial Average lost 0.21% to finish at 15452.16.

Coca-Cola (KO[3]) saw its shares fall nearly 2% — making it the biggest loser in the Dow — after announcing second-quarter profits fell 4% amid sluggish demand both in the U.S. and in Europe. Meanwhile, a solid profit report showing profit doubling[4] in the second quarter at Goldman Sachs (GS[5]) didn’t do the stock any particular good as investors sent shares down nearly 2%.

Securities and banking firm Charles Schwab (SCHW[6]) saw its shares tumble more than 3% after its Q2 earnings declined nearly 7% compared to last year as expenses rose nearly 9%. SCHW’s troubles spilled over into the retail brokerage world, as E-Trade (ETFC[7]) and TD Ameritrade (AMTD[8]) fell more than 2% and 1%, respectively.

One of the biggest moves in the day came away from the earnings confessional, as high-flying electric car maker Tesla Motors (TSLA[9]) sunk 14% after Goldman Sachs announced a bearish view of the stock, giving TSLA a price target of $84 per share — 34% below Monday’s closing price.

Gaming technology company Shuffle Master (SHFL[10]) saw its shares surge amid a $1.3 billion buyout bid from Bally Technologies (BYI[11]), which values SHFL shares at a roughly 24% premium to Monday’s close. BYI shares also rose 7%.

After the bell, Yahoo (YHOO[12]) reported second-quarter net earnings of 30 cents per share, up 68% year-over-year and meeting analyst expectations. However, revenues of $1.071 billion were down 7% from the year-ago period and missed expectations, and Q3 revenue estimates also fell short of the consensus. YHOO shares were down nearly 2% in early after-hours trading.

Another big day of earnings announcements is on tap for Wednesday, with Bank of America (BAC[13]), Intel (INTC[14]), and American Express (AXP[15]) heading up a crowded calendar.

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing, he was long YHOO.

  1. [Image]: https://investorplace.com/wp-content/uploads/2011/11/IPMarketRecap.gif
  2. 0.5% uptick in June to the Consumer Price Index: http://money.cnn.com/2013/07/16/news/economy/cpi-inflation/index.html?iid=EL
  3. KO: http://studio-5.financialcontent.com/investplace/quote?Symbol=KO
  4. profit doubling: http://finance.fortune.cnn.com/2013/07/16/goldman-sachs-profits-double/?iid=HP_LN
  5. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  6. SCHW: http://studio-5.financialcontent.com/investplace/quote?Symbol=SCHW
  7. ETFC: http://studio-5.financialcontent.com/investplace/quote?Symbol=ETFC
  8. AMTD: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMTD
  9. TSLA: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSLA
  10. SHFL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SHFL
  11. BYI: http://studio-5.financialcontent.com/investplace/quote?Symbol=BYI
  12. YHOO: http://studio-5.financialcontent.com/investplace/quote?Symbol=YHOO
  13. BAC: http://studio-5.financialcontent.com/investplace/quote?Symbol=BAC
  14. INTC: http://studio-5.financialcontent.com/investplace/quote?Symbol=INTC
  15. AXP: http://studio-5.financialcontent.com/investplace/quote?Symbol=AXP
  16. SOL: http://studio-5.financialcontent.com/investplace/quote?Symbol=SOL
  17. RAD: http://studio-5.financialcontent.com/investplace/quote?Symbol=RAD
  18. FST: http://studio-5.financialcontent.com/investplace/quote?Symbol=FST
  19. SCTY: http://studio-5.financialcontent.com/investplace/quote?Symbol=SCTY
  20. ISIS: http://studio-5.financialcontent.com/investplace/quote?Symbol=ISIS
  21. DWA: http://studio-5.financialcontent.com/investplace/quote?Symbol=DWA

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