Stocks rallied late, erasing earlier losses and halting the
recent selloff that took the U.S. markets to the brink of their
first three-day losing streak in 2013. The turnaround appears to be
technical in nature, with stocks starting to rebound this afternoon
after the S&P 500 fell another 10 points through mid-day,
carrying the broad-based market gauge slightly more than 5% below
its its all-time mark set late last month. Financial stocks helped
pace the rebound, closely followed by shares of healthcare and
Prior to the late rally, traders appeared largely ready to wait
until a Labor Department report tomorrow that is expected to show
employers added 165,000 to non-farm payrolls last month, equal to
the gain in April.
Stocks opened mixed following new jobs data showing a 11,000
drop to 346,000 in first-time jobless claims last week, slightly
above Wall Street expectations. Trader moods also were muddied
somewhat by comments by European Central Bank President Mario
Draghi that the ECB is holding off from further stimulus, citing
signs they believe indicate the European recession has reached a
In the U.K., the Bank of England retained its asset-purchase
target at 375 billion pounds ($580 billion) and its benchmark
interest rate at 0.5%, in line with economists' predictions.
Commodities were mixed. August gold rose $17.30 to $1,415.80
while July silver climbed 23 cents to finish at $22.70 per ounce.
July copper settled 5 cents lower at $3.32 per pound. Crude oil for
July delivery (CLN13.NYM) settled $1.02 higher at $94.76 per barrel
while July natural gas (NGN13.NYM) fell 17 cents to finish at $3.83
per 1 mln BTU.
Here's where the U.S. markets stood at end-of-day:
Dow Jones Industrial Average up 80.03 (+0.53%) to 15,040.62
S&P 500 up 13.66 (+0.85%) to 1,622.56
Nasdaq Composite Index up 22.58 (+0.66%) to 3,424.05
Hang Seng Index down 1.05%
Shanghai China Composite Index down 1.27%
FTSE 100 Index down 1.30%
(+) LITB, Shares of the Chinese maker of inexpensive goods like
fishing rods and wedding dresses posts double-digit gain during its
first day of NYSE trading. It raised $79 mln in its initial public
offering of stock.
(+) SODA, Overnight chatter from Europe had the home
soda-fountain company in buyout talks with PepsiCo (
), with SODA reportedly valued over $2 bln, according to an Israeli
business website. But PEP chief executive Indra Nooyi said during a
visit in Myanmar it was the first time she had heard about the
talks, Bloomberg reports. PEP is down 0.5%.
(+) CIEN, Reports surprise adjusted profit of $0.02 per share
after one-time items were excluded. Revenue rose 6.3% to $507.7
mln. Analysts, on average,were looking for a $0.01 per share loss
on $483.6 mln in revenue. Shares of other networking equipment
firms also are rising today, including JDSU,FNSR and CSCO.
(-) PAY, Reports Q2 earnings of $0.42 per share, ex items,
trailing the analyst consensus by $0.05 per share. Revenue declined
8.9% year over year to $430 mln, missing Street expectations by
$11.07 mln. Forecasts Q3 EPS of $0.20 on around $400 mln in
revenue. The Street is looking for a $0.50 per share profit and
$461.29 mln in revenue.
(-) ASNA, Adjusted Q3 earnings of $0.26 per share trail the
Capital IQ consensus by $0.04 per share. Revenue rose 45.8% to
$1.14 bln, missing expectations by around $30 mln. Lowered and
narrowed FY13 EPS guidance. Other women's clothiers - including
FRAN, VRA, CWTR - also declined after posting sub-par quarterly
(-) RST, Prices secondary public offering of 3.5 mln shares at
$16 apiece, with 3.49 mln of the shares offered by ABS Capital
Partners IV Trust and Norwest Equity Partners VIII LP. RST sold
10,000 shares, using the $160,000 in gross proceeds to pay offering
expenses for ABS Capital and Norwest Equity.
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