Market Wrap For November 22: Markets Finish The Week On a Positive Note
While not offering any specifics, investors seemed comfortable enough with Dennis Lockhart's comments to end the week on a positive note.
While speaking to CNBC the Atlanta Fed chief commented that tapering will begin “when the economy is ready and when the market is ready.” Lockhart also noted that “we are going to remain accommodative for quite some time, in all likelihood for a number of years.”
- The Dow gained 0.34 percent, closing at 16,064.77.
- The S&P 500 gained 0.50 percent, closing at 1,804.76.
- The Nasdaq gained 0.57 percent, closing at 3,991.65.
- Gold lost 0.07 percent, trading at $1,242.70 an ounce.
- Oil lost 0.66 percent, trading at $94.81 a barrel.
- Silver lost 0.45 percent, trading at $19.84 an ounce.
News of Note
The Third Quarter E-Commerce Retail Sales rose 3.6 percent quarter over quarter to $67.0 billion. Online sales accounted for 5.9 percent of all retail sales in the quarter, up from 5.2 percent a year ago.
John Paulson revealed to clients he won't be allocating additional investment funds towards gold. His firm will maintain current exposure and out of the money option positions will expire worthless. Paulson's fund is alleged to be valued at only $370 million and is down over 60 percent year to date.
Equities-Specific News of Note
Comcast (NASDAQ: CMCSA) and Charter Communications (NASDAQ: CHTR) are reported to be considering a joint bid for Time Warner Cable (NYSE: TWC). Comcast gained 4.36 percent, closing at $49.52. Charter Communications gained 6.06 percent, closing at $134.66. Time Warner Cable was the biggest winner of the group, gaining 9.92 percent, closing at $132.85.
BlackBerry (NASDAQ: BBRY) has apparently “blown” a chance of finding a suitor to take the company private. The CEO of a leading Canadian Pension fund Albert Investment Management Corp indicated that BlackBerry hasn't provided re-assurance that it has a successful turn around plan. Shares gained 3.31 percent for the day, closing at $6.24. Shares traded as low as $6.03 in today's trading session, not far from its 52 week lows of $5.98.
Healthcare and pharmaceutical giant Novartis (NYSE: NVS) intends to buy back $5 billion in stock over two years. The company also plans to start Phase III trials of its breast cancer treatment, LEE011 next month. Shares were relatively flat for the day, gaining 0.68 percent to close at $79.71.
After shares of GameStop (NYSE: GME) declined Thursday, and Friday morning analysts at Needham upgraded the company's shares to Buy from Hold. The bullish nod helped boost shares by 2.15 percent, closing at $49.85.
Stanley Druckenmiller has labeled IBM (NYSE: IBM) as one of the “more high probability shorts” he has seen in years. Shares of "Big Blue" lost 1.54 percent for the day, closing at $181.29.
Shares of FAB Universal (NYSE: FU) have been halted premarket, and remained as such throughout the duration of the trading day. There is no indication when shares would resume trading.
Bill Ackman failed to make an impression during his presentation at the Robin Hood Investors Conference even after vowing to “take the fight to the end of the earth.” Shares of Herbalife (NYSE: HLF) erased early market losses and gained 4.69 percent, closing at $71.63.
Sheryl Sandberg revealed in an interview that U.S. teen usage of Facebook (NASDAQ: FB) remains stable and the majority of U.S. teens use the platform every day. Sandberg also announced that the ad business can continue growing as the company improves its ad quality and targeting capabilities. Shares of the social media company ended the day lower by 1.01 percent, closing at $46.23.
Yum Brands (NYSE: YUM) announced a further $750 million stock buyback allowance in addition to declaring a quarterly dividend of $0.37 a share. Shares hit a new 52 week high of $78.68 before settling the day at $78.30, higher by 4.51 percent for the day.
3D Systems (NYSE: DDD) inked a deal will Google's (NASDAQ: GOOG) Motorola division to make smartphone enclosures and modules for Project Ara. Shares of 3D Systems gained 1.05 percent to close at $73.27 while Google shares were little changed, down 0.18 percent to close at $1,032.22.
Wells Fargo downgraded two steel stocks this morning due to increasing amounts of cheaper imports that have been flooding the market. U.S. Steel (NYSE: X) and Nucor (NYSE: NUE) were downgraded to a $17 to $21 range and a $50 to $55 range respectively. U.S. Steel lost 2.98 percent for the day closing at $26.34 while Nucor lost 2.05 percent, closing at $51.96.
Winners of Note
500.com (NYSE: WBAI) rose percent after its first day of trading. Shares were originally priced at $13 but closed the day at $20.00 representing a gain of 53.85 percent after trading began at $20.00.
Biogen (NASDAQ: BIIB) won a new active substance designation for Tecfidera, implying generic competition won't be possible. Deutsche Bank raised its price target to $340 from $270. Shares rose 13.13 percent, closing at $285.58
Ariad Pharmaceutical (NASDAQ: ARIA) saw its shares surge 35.13 percent following positive comments from European Regulators that will allow the company to continue selling its Iclusig drug. Shares closed at $3.77, well off its 52 week highs of $24.59
Decliners of Note
Shares of Intel (NASDAQ: INTC) declined following two negative reports from analysts. Bernstein Research noted that the company's 2014 outlook was “likely not quite as good as some had hoped.” Separately, Goldman Sachs (NYSE: GS) is also unhappy with the company's guidance and $11 billion capex budget. Jefferies, the lone bull at the table believes the company offers a compelling story as its product line is appropriate to combat new market realities. Intel closed the day lower by 5.41 percent, closing at $23.86.
Lumber Liquidators (NYSE: LL) tumbled, and tumbled fast following Whitney Tilson presenting the company as a short idea at the Robin Hood Investors Conference. Shares immediately fell almost nine percent, then continued lower throughout the afternoon before closing the day lower by 11.78 percent at $101.77.
Violin Memory (NASDAQ: VMEM) dove following its third quarter results and guidance that was released last night. The company reported a third quarter EPS loss of $0.63 while the Street was looking for a loss of $0.47. Revenue of $28.3 million fell short of the Street's expectation of $31.7 million. Shares were downgraded by J.P. Morgan, (NYSE: JPM) Deutsche Bank (NYSE: DB) and Pacific Crest. Shares lost 48.33 percent, closing at $3.10.
Earnings of Note
Foot Locker (NYSE: FL) announced third quarter EPS of $0.68, beating the Street's forecast of $0.66. Revenue also beat coming in at $1.62 billion, ahead of the Street's $1.58 billion. Shares hit new 52 week highs of $39.15 before closing the day at $38.27, representing a 4.11 percent for the day.
Quote of the Day
"It's Friday, Friday, Gotta get down on Friday, Everybody's lookin' forward to the weekend!"
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