After Market: Groundhog Day for Investors as Tuesday’s Pattern Repeats

It was Groundhog Day on Wednesday here on Wall Street. Just in case you missed Tuesday session, you got to re-live it, with the Dow Jones industrial average (^DJI) edging lower but the Nasdaq posting solid gains. The Dow fell 41 points, while theStandard Poor’s 500 index (^GPSC) gained a point, and the Nasdaq composite (^IXIC) rose 17.

AlamyWednesday was cold, snowy, and the stock market did just what it did the day before: Someone call Bill Murray.

IBM (IBM) was the big drag on the blue chips, losing 3 percent. Once again, Big Blue reported disappointing revenue. Barclays and JPMorgan cut their price targets on IBM’s stock.

Chipmaker Advanced Micro Devices (AMD) tumbled 12 percent. It posted a profit but warned that revenue in the current quarter will be weaker than expected. Rival chipmaker Intel (INTC) fell one percent. But Texas Instruments (TXN) gained 2 percent. Its net beat the Street, and the company plans to cut costs by eliminating 1,100 jobs.

Earnings news continues to drive some of the biggest price moves. On the downside: Coach (COH) fell 6 percent as sales plunged, especially for its handbags and accessories. Monsanto (MON) fell more than 2 percent.

Textron (TXT), best known for its Cessna planes, rose 5 percent. And Brinker International (EAT) gained 6.5 percent. It operates the Chili’s and Maggiano’s restaurant chains.

Elsewhere, Blackberry (BBRY) — which was left for dead not that long ago — rose 8 percent. Over the past month, it’s shares are up 44 percent. The company plans to sell most of its real estate holdings, and it recently announced a big contract from the Pentagon.

Illumina (ILMN), which analyzes genetic sequencing, has become a big momentum play. It rose 2.5 percent on the day and it’s up 35 percent in the past month.

But check out one more stock: Target (TGT). It’s at a 52-week low. One big problem: a loss of trust with shoppers after the massive breach of their financial information.

Finally, Luna Innovations (LUNA) nearly doubled in price today after agreeing to sell a key fiber optic technology.

What to Watch Thursday:

  • Labor Department releases weekly jobless claims, 8:30 a.m.
  • Freddie Mac releases weekly mortgage rates, 10 a.m.
  • Conference Board releases leading indicators for December, 10 a.m.
  • National Association of Realtors releases existing home sales for December, 10 a.m.

These major companies are due to report quarterly financial results:

  • Discover Financial (DFS), after the market closes.
  • McDonald’s (MCD), before the market opens.
  • Microsoft (MSFT), after the market closes.
  • Nokia (NOK), before the market opens.
  • Southwest Airlines (LUV), before the market opens.
  • Starbucks (SBUX), after the market closes.
  • United Continental Holdings (UAL), before the market opens.

Produced by Drew Trachtenberg.

Article source: http://www.dailyfinance.com/2014/01/22/after-market-groundhog-day-for-investors-as-tuesdays-pattern-r/

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