Stocks Gained to Cap Wild Week
Published on Friday, 22 June 2012 17:32 Written by Christopher Lynn
New York, June 22nd (TradersHuddle.com) – Stocks ended a volatile week with on a positive tone, with the major benchmark indices able to recoup some of the sharp decline from the prior session. Participants shrugged off a bank downgrade from Moody’s and data showing that business sentiment in Germany fell to a 2-year low.
The Dow Jones Industrial Average gained 67.21 points, or 0.53%. The S&P 500 index climbed 9.51 points or 0.72%, while the NASDAQ jumped 33.33 points, or 1.17%.
For the week, the Dow lost 0.99%, while the S&P 500 slid 0.11% and the NASDAQ gained 1.25%.
The market started with modest gains, recouping some of the steep loss from the prior session, which followed disappointing economic data in the U.S. and around the world. Participants seemed to have a delayed reaction to the Fed and its lack of aggressive stimulus. Overseas action was negative; with European markets trading lower ahead of the weekend and after German business sentiment fell to a 2-year low.
Moody’s downgrade of 15 major global banks was a non-event, as participants shrugged-off the news, as it was largely priced in, since the credit rating agency announced a possible downgrade in February. The week saw increased volatility with stocks gaining ahead of the Fed on hopes of further stimulus measures to jump-start the sluggish U.S. economy. However, the market reacted negatively after the Fed disappointed and a new string of weak data in the U.S., Europe, and China spurred renewed fears over a slowdown in the global economy.
The upside move in the session was broad based, as all of the S&P 500 sectors ended in positive ground. Technology, healthcare, and financials were the best performers in the session, while utilities, industrials, and consumer staples logged the smallest gains. In the technology sector, First Solar (NASDAQ: FSLR) surged 9.2% to $15.88, posting the biggest gain in the S&P 500 on news that the company was resuming construction at a giant California solar project site.
Visa (NYSE: V) and MasterCard (NYSE: MA) were among the top performers in the sector after Telsey Advisory Group initiated coverage on the space with a Positive Outlook. The firm set its target price on Visa at $133 and on MasterCard at $457. Visa rallied 4.6%, while MasterCard jumped 3.3%.
Apple (NASDAQ: AAPL) gained 0.77% to $582.10, rebounding from yesterday’s loss in which the company closed near its 50day moving average, which is acting as support. The stock gained 1.94% for the week.
Elsewhere in the space, Facebook (NASDAQ: FB) rallied 3.8% to $33.05 after Nomura initiated coverage with a Buy and a target price of $40. According to reports, Facebook began running ads and sponsored stories on Zynga (NASDAQ: ZNGA), with both companies forming a revenue partnership. Shares of Zynga jumped 4.8% on the news. Facebook has surge 29.5% from its all-time low of $25.52 on June 6th.
Financials received a boost from a rally in bank stocks, as the Moody’s downgrade was shrugged-off. Bank of America (NYSE: BAC) jumped 1.53% to $7.94 after closing near its 50day moving average in the prior session. JPMorgan (NYSE: JPM) gained 1.4%, and Citigroup (NYSE: C) gained 0.57% amid news that it was buying a portion of Societe Generale portfolio of shipping loans.
In the earnings and guidance front, Darden Restaurants (NYSE: DRI), the owner and operator of the Red Lobster and Olive Garden restaurant chains, lost 0.69% to $50.04 after it reported earnings that were inline with consensus on revenues that missed expectations. Also, Darden issued downside guidance for fiscal 2013, while it increased its quarterly dividend by 16% to $0.50 per share.
Carnival (NYSE: CCL), the cruise line operator, lost 2.7% to $33.66 in the session after the company reported quarterly EPS and revenue above and in line with expectations; GAAP net income was only $14 million due to $145 million in unrealized losses on fuel derivatives.
Meanwhile, Ryder System (NYSE: R) plunged to the bottom of the S&P 500 after the company cut its earnings guidance for fiscal second quarter below consensus, and fiscal 2012 below consensus. Shares of Ryder were hit hard, tumbling 13%.
- Is Apple Closing in to Resistance?
- Trading Idea: - Is Bank of America close to Resistance?
- Apple Is Close to the 50 Day Moving Average
- Carnival Corporation & plc Updates Earnings Guidance For Second Half Of 2013
- Trading Idea: Entry Levels for Apple
- Is Apple Waiting for a Break Out?
- NASDAQ 100 Mid-day Update: Flat Top Performers: NFLX, NIHD, SIRI
- Holland America Line Goes 'On Location' With New Activity Program To Immerse Guests In The Culture And Activities Unique To Each Cruising Region
- Natasha Bedingfield Announced as Featured Singer for Royal Princess Naming Ceremony
- Is Bank of America Breaking Out?
Related Partner Headlines
- Cramer Quick Take: The 60-Inch TV Will Be Key This Holiday - TheStreet.com
- Apple, Intel, MicroStrategy: Tech Winners & Losers - TheStreet.com
- What You Can Get on Thursday's Black Friday - TheStreet.com
- Banks Cough Up $26.1 Billion in Mortgage Relief - TheStreet.com
- Bank of America, MBIA Death Match Hurts Both: Moody's - TheStreet.com
- Good Follow-Through - TheStreet.com
- iPhone 5S for Next Year: Rumor - TheStreet.com
- Why Apple's Stock Is an Undeniable 'Buy' Right Now - TheStreet.com
- Carnival Stock To Go Ex-dividend Tomorrow (CCL) - TheStreet.com
- Citigroup to Slash 300 More Jobs: Report - TheStreet.com
Latest Partner Headlines
Dow Today: Verizon Communications (VZ) Higher - TheStreet.com
Separating the Bargains From the Busts - TheStreet.com
Cramer Quick Take: The 60-Inch TV Will Be Key This Holiday - TheStreet.com
Cramer Quick Take: Cisco Wins If Fiscal Cliff Is Resolved - TheStreet.com
Gap Up and Sit - TheStreet.com
Apple, Intel, MicroStrategy: Tech Winners & Losers - TheStreet.com
Windows 8 PC Sales Disappointing: Report - TheStreet.com
Cramer Quick Take: Buy Home Depot and Lowe's - TheStreet.com
Dow JonesCompany ID [INDEXDJX:.DJI] Last trade:15,294.50 Trade time:4:53PM EDT Value change:▼12.67 (-0.08%)
S&P 500Company ID [INDEXSP:.INX] Last trade:1,650.51 Trade time:4:52PM EDT Value change:▼4.84 (-0.29%)
NASDAQCompany ID [INDEXNASDAQ:.IXIC] Last trade:3,459.42 Trade time:5:15PM EDT Value change:▼3.88 (-0.11%)
In The Wires
Northrop Grumman Increases Investment in Australia, Expands Industry Partnerships
Novelis Wins "CEO" and "Company of the Year" Titles at Platts Global Metals Awards
Apache Pledges $500,000 To Build Storm Shelters And Safe Rooms For Oklahoma Schools
AT&T 3G/4G Combo Named Best for Speed and Value
SHAREHOLDER ALERT: Pomerantz Law Firm Investigates Claims on Behalf of Investors of rue21, inc. - RUE
BTB announces the sale of one of its commercial properties
Elephant Talk Communications Receives Non-Compliance Notice from NYSE MKT
CME Group Inc. Declares Quarterly Dividend