Market Overview

Market Wrap For April 10: Wednesday's Rally Completely Forgotten

Related BZSUM
GameStop Gains On Upbeat Results; Aeropostale Shares Decline
Markets Gain; Foot Locker Posts Upbeat Profit

U.S. stocks tumbled as investors and traders showed no intention of allowing Wednesday's bull charge to continue.

The Nasdaq index continues to under-perform and notched its worst one day performance since 2011.

The decline in the Nasdaq index continues to be fueled by biotech and momentum stocks like Priceline Group, Facebook, Yelp, Qihu, Pandora, Amazon.com, Netflix, Tesla and Keurig Green Mountain. The iShares NASDAQ Biotech Index (NASDAQ: BIIB) continues to sell off and lost 4.43 percent with the index down more than 20 percent since its highs of $275.40.

The New York Stock exchange saw four stocks declining for every one that gained despite positive economic data on the U.S. labor market.

Recommended: Short Interest Rises As Biotechs Fall (AMGN, CELG, DNDN)

  • The Dow lost 1.62 percent , closing at 16,170.22.
  • The S&P 500 lost 2.09 percent, closing at 1,833.09.
  • The Nasdaq lost 3.10 percent, closing at 4,054.11.
  • Gold gained 0.99 percent, trading at $1,318.80 an ounce.
  • Oil lost 0.26 percent, trading at $103.34 a barrel.
  • Silver gained 1.44 percent, trading at $20.06 an ounce.

News of Note

Initial Jobless Claims fell to 32,000 from 300,000, below the consensus of 318,000 and a prior reading of 332,000. Continuing claims declined 62,000 to 2.78 million.

March Export Prices rose 0.8 percent, ahead of the consensus of 0.2 percent growth.

March Import Prices rose 0.6 percent, ahead of the consensus of 0.2 percent growth.

Bloomberg Consumer Comfort Index fell to -31.9 from -30 last week.

EIA Natural Gas Inventory rose 4 bcf.

The average rate for a 30-year fixed mortgage fell to 4.34 percent from 4.41 percent last week, according to the weekly survey from Freddie Mac.

Russia's President Vladimir Putin sent a letter to European leaders explaining that if Ukraine does not pay overdue energy bill, Gazprom would take action which includes completely or partially ceasing gas deliveries.

Chinese exports fell 6.6 percent year over year in March which fared better than the 18.1 percent decline in February. Analysts were expecting a growth of four percent in March.

China plans to connect the Hong Kong stock exchange with the Shanghai exchanges as part of the country's strategy to liberalize its economy and improving its capital markets.

The Bank of England left its benchmark unchanged at 0.5 percent and its quantitative easing policy of 375 billion pounds also remains unchanged.

Analyst Upgrades and Downgrades of Note

Analysts at Deutsche Bank initiated coverage of Apple (NASDAQ: AAPL) with a Buy rating and $650 price target. Shares lost 1.29 percent, closing at $523.46.

Analysts at Citigroup maintained a Buy rating on Apollo Global Management (NYSE: APO) with a price target lowered to $34 from a previous $36. Shares lost 3.27 percent, closing at $28.06.

Analysts at Deutsche Bank maintained a Hold rating on Bed Bath & Beyond (NASDAQ: BBBY) with a price target lowered to $58 from a previous $65. Meanwhile, analysts at JPMorgan maintained a Neutral rating on Bed Bath & Beyond with a price target lowered to $75 from a previous $82. Finally, analysts at Bank of America downgraded Bed Bath & Beyond to Neutral from Buy with a price target lowered to $72 from a previous $87. Shares lost 6.17 percent, closing at $63.72.

The Ontario Teachers' Pension Plan is the front-runner to acquire Loral Space (NASDAQ: LORL) for around $80 per share, according to a Bloomberg report. Shares gained 4.79 percent, closing at $73.44.

Analysts at JPMorgan maintained a Neutral rating on Caterpillar (NYSE: CAT) with a price target raised to $96 from a previous $92. Shares lost 0.71 percent, closing at $102.26.

Analysts at Barclays downgraded CF Industries (NYSE: CF) to Equalweight from Overweight with a price target of $267. Shares lost 3.77 percent, closing at $245.77.

Analysts at DA Davison upgraded Cree (NASDAQ: CREE) to Buy from Neutral. Shares lost 2.58 percent, closing at $55.94.

Analysts at ISI Group upgraded Deere & Company (NYSE: DE) to Neutral from Cautious with a price target raised to $95 from a previous $83. Shares lost 0.70 percent, closing at $92.73.

Analysts at Buckingham Research initiated coverage of Deckers Outdoor (NASDAQ: DECK) with a Buy rating and $92 price target. Shares lost 1.80 percent, closing at $78.64.

Analysts at Exane BNP Paribas upgraded Eni (NYSE: E) to Outperform from Neutral. Shares lost 0.91 percent, closing at $50.30.

Recommended: LinkedIn Co-Founder Konstantin Guericke Wants To Help Other Startups Become Global Leaders

Analysts at Deutsche Bank maintained a Buy rating on Facebook (NASDAQ: FB) with a price target raised to $76 from a previous $75. Meanwhile, analysts at Pivotal Research upgraded Facebook to Buy from Hold with a price target raised to $72 from a previous $66. Shares lost 5.21 percent, closing at $59.16.

Analysts at Nomura maintained a Buy rating on Gilead Sciences (NASDAQ: GILD) with a price target raised to $121 from a previous $120. Shares lost 7.32 percent, closing at $65.48.

Analysts at Deutsche Bank maintained a Buy rating on Google (NASDAQ: GOOG) with a modified price target of $665. Shares lost 4.11 percent, closing at $540.95.

Analysts at Deutsche Bank initiated coverage of Hewlett-Packard (NYSE: HPQ) with a Buy rating and $40 price target. shares hit new 52 week highs of $33.90 before closing the day at $32.79, up 0.21 percent.

Analysts at Deutsche Bank initiated coverage of IBM (NYSE: IBM) with a Hold rating and $200 price target. Shares lost 0.48 percent, closing at $195.69.

Analysts at JPMorgan maintained an Overweight rating on Imperva (NASDAQ: IMPV) with a price target lowered to $42 from a previous $62. Meanwhile, analysts at Oppenheimer downgraded Imperva to Market Perform from Outperform and Deutsche Bank also downgraded Imperva to Hold from Buy with a price target lowered to $40 from a previous $60. Shares plunged to new 52 week lows of $26.67 before closing the day at $28.00, down 43.70 percent.

Analysts at Belus Capital Advisors upgraded J.C. Penney (NYSE: JCP) to Hold from Sell with a $9 price target. Shares lost 3.40 percent, closing at $8.52.

Analysts at Hudson Square Research upgraded Netflix (NASDAQ: NFLX) to Buy from Hold with a $409 price target. Shares lost 5.18 percent, closing at $334.73.

Analysts at Macquarie upgraded Nike (NYSE: NKE) to Outperform from Neutral. Shares lost 1.50 percent, closing at $72.46.

Analysts at Salman Partners reinstated coverage of Silver Wheaton (NYSE: SLW) with a Buy rating and $36 price target. Shares lost 1.99 percent, closing at $22.65.

Analysts at Goldman Sachs maintained a Neutral rating on Tesla Motors (NASDAQ: TSLA) with a $200 price target. Shares lost 5.87 percent, closing at $204.19.

Analysts at Cantor Fitzgerald upgraded Twitter (NYSE: TWTR) to Hold from Sell with a $45 price target. Shares lost 2.92 percent, closing at $41.25.

Equities-Specific News of Note

According to KGI Securities analyst Ming Chi Kuo, Apple (NASDAQ: AAPL) will release two larger iPhones by the end of the year. A 4.7 inch iPhone 6 will be released in the third quarter followed by a 5.5 inch iPhone 6 in the fourth quarter. Shares lost 1.27 percent, closing at $523.46.

Related: iPhone 6 Demand Sets New Record

Amazon.com (NASDAQ: AMZN) published its annual shareholder letter which touches topics including Amazon's Web Services, Appstore and other business topics. Shares lost 4.39 percent, closing at $317.11.

Vodafone (NYSE: VOD) will prurchase an 11 percent stake in its Indian unit, Vodafone India, for around $1.5 billion as part of its plan to assume 100 percent control of Vodafone India. Shares lost 2.68 percent, closing at $36.09.

Wal-Mart (NYSE: WMT) announced it will move in to the organic food category and struck a deal to sell Wild Oats brands at competitive prices. Wal-Mart will begin selling Wild Oats packaged food products over the next few months. Shares lost 1.35 percent, closing at $76.89.

BlackBerry's (NASDAQ: BBRY) CEO John Chen hinted that the company would consider selling its handset division if the business cannot return to profitability. Shares lost 3.64 percent, closing at $7.67.

ConocoPhillips (NYSE: COP) estimates that its Eagle Ford property contains 2.5 billion barrels of oil, higher than previous estimates of 1.8 billion barrels. The company is guiding to increase its production to more than 250,000 barrels of energy per day by 2017. Shares lost 2.56 percent, closing at $69.71.

Gogo (NASDAQ: GOGO) inked a deal with Boeing (NYSE: BA) in which the aircraft manufacturer will “evaluate Gogo's suite of technology solutions on Boeing commercial aircraft.” Shares gained 1.03 percent, closing at $19.56.

eBay (NASDAQ: EBAY) and Carl Icahn reached an agreement in which Icahn will withdraw his activist crusade to get eBay to split off PayPal and to add two of his nominees to eBay's board. In exchange, eBay will add David Dorman to the company's board as an independent at the suggestion of Icahn. Shares lost 3.24 percent, closing at $54.08.

CBS (NYSE: CBS) announced that Stephen Colbert will replace David Letterman as host of the Late Show. Shares lost 3.82 percent, closing at $59.98.

Related: Letterman Out, Colbert In As Late Show Host -- How Will He Do Amid Late Night Disrupt?

IBM (NYSE: IBM) has agreed to acquire Silverpop, a cloud based marketing automation software for an undisclosed amount. Shares lost 0.49 percent, closing at $195.68.

General Motors (NYSE: GM) said that it will take a charge of $1.3 billion in the first quarter as a result of its recall costs. shares lost 0.95 percent, closing at $33.30.

T-Mobile (NASDAQ: TMUS) announced its “Operation Tablet Freedom” in which customers could add their tablets to their cell phone plans for free. Shares lost 2.68 percent, closing at $30.86.

Sallie Mae (NASDAQ: SLM) will spin off Navient, its student loans business from its consumer banking business. Sallie Mae shareholders will receive one new share of Navient for every share of Sallie Mae held on April 30 to shareholders of record on April 22. Shares of Sallie Mae gained 0.04 percent, closing at $24.77.

After pricing its IPO at $25, shares of Ally Financial (NYSE: ALLY) began trading for the first time at $24.25 and traded as high as $24.79 before closing the day at $23.98, down 4.08 percent.

Winners of Note

This morning, Rite Aid (NYSE: RAD) reported its fourth quarter EPS. The company announced an EPS of $0.10, beating the consensus estimate of $0.05. Revenue of $6.6 billion beat the consensus estimate of $6.54 billion. Net income for the quarter fell to $55.4 million from $123.1 million in the same quarter last year due to LIFO accounting and losses on debt retirement. However, full year net income rose to $249.4 million from $118.1 million last year. Same-store sales rose 2.1 percent in the quarter as pharmacy sales grew 3.5 percent. Rite Aid issued guidance and sees its full year 2015 EPS to be in a range of $0.31 to $0.42 versus a consensus estimate of $0.35. Revenue for the year is guided in a range of $26 billion to $26.5 billion, ahead of the consensus estimate of $25.78 billion. Shares gained 8.44 percent, closing at $6.94.

Decliners of Note

On Wednesday, Imperva (NASDAQ: IMPV) announced that it expects its first quarter revenue to come in a range of $31 million to $31.5 million, below previous guidance of $36 million and a consensus estimate of $36.7 million. EPS is guided to be in a range of a loss of $0.40 to $0.44, worse than previous guidance for a loss of $0.33 to $0.37 and a consensus estimate of a $0.35 loss. The company blamed its outlook on intensified competition for large orders. Shares plunged to new 52 week lows of $26.67 before closing the day at $28.00, down 43.70 percent.

Earnings of Note

This morning, Family Dollar (NYSE: FDO) reported its second quarter results. The company announced an EPS of $0.80, missing the consensus estimate of $0.90. Revenue of $2.71 billion missed the consensus estimate of $2.77 billion. Net income for the quarter fell to $90.9 million from $140.1 million in the same quarter last year prompting the company to conduct an “in depth business review and implement actions to improve financial performance including: investment to lower prices, reduction of cost structure, closing of approximately 370 stores and slowing of new store growth.” Shares lost 3.22 percent, closing at $57.17.

Recommended: JPMorgan Earnings Preview: Don't Expect Any Surprises

Quote of the Day

"Everything in the market [is] a dart board that you could buy in my opinion and do well in the next few months.” - Legg Mason CEO Bill Miller.

Posted-In: 30-Year Mortgage Ally Financial Amazon Prime Apollo Global Management Apple Bank Of EnglandNews After-Hours Center Best of Benzinga

 

Related Articles (AAPL + ALLY)

Around the Web, We're Loving...

Partner Network

Get Benzinga's Newsletters