Wall Street Extends Rebound Into Monday Gains

Michael Teague  |

The CBOE Volatility Index dropped beneath 15 and Wall Street extended the rebound of last Friday as companies like Caterpillar (CAT) and Halliburton (HAL), whose earnings are often seen as being intertwined with global growth, reporting how much they made.

Caterpillar came in far short of expectations in both earnings and revenues, but the company was saved by the announcement of the resumption of a $1 billion share buyback program, ending the day with a gain of nearly 3 percent to close at $82.81 per share.

Halliburton reported a decline in North American revenue that was far surpassed by a 21 percent increase in sales abroad, along with the announcement that it was settling out of court a substantial majority of litigation brought against it as a result of the 2010 Gulf of Mexico oil disaster. The company was up 5.70 percent to $39.33 at the close of trading.

Meanwhile, the National Association of Realtors reported a 0.6 percent decrease in existing home sales, though the organization’s chief economist Lawrence Yun said that demand is currently outpacing supply, with buyer traffic “25 percent above one year ago when we were already seeing notable gains in shopping activity”.

The S&P 500 was up nearly half a percent to 1,562.50 with help from Netflix (NFLX), up 6.73 percent to close at $174.37 on heightened anticipation of the company’s earnings statement, due out after the close. Shares for Microsoft (MSFT), who reported better than expected earnings last week, jumped 3.91 percent to $30.94 following the news that activist hedge fund ValueAct had taken a $2 billion ownership position in the company.

The Dow edged up 0.14 percent to close at 14,567.17 on the strength of tech stocks including, aside from Microsoft, Intel (INTC) up 1.8 percent to $22.84, AT&T (T) up 1.04 percent to $38.68, Cisco Systems (CSCO) up 0.88 percent to $20.64, and Hewlett-Packard (HPQ) up 0.84 percent to $19.73.

International Business Machines (IBM) and McDonald’s Corp (MCD) both extended their losses from last week into Monday.

On the Nasdaq, Lululemon Athletica (LULU) almost regained the share price it had lost as a result of last month’s recall of one its varieties of its extremely popular yoga pants, ending the day at $73.99 on an increase of 8.20 percent.

Other notable gains were posted by toy-maker Hasbro (HAS), up 3.41 percent to $46.56, as the company narrowly beat earnings expectations and was up 25 percent on the prior-year period. Dish Network (DISH) closed at a gain of nearly 3 percent to $40.16 as investors await Sprint Nextel's (S) response to the company’s buyout offer.

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Companies

Symbol Name Price Change % Volume
DISH DISH Network Corporation 29.11 -0.40 -1.36 6,498,542 Trade
INTC Intel Corporation 47.94 -0.33 -0.68 18,993,642 Trade
S Sprint Corporation 6.17 0.13 2.15 10,361,385 Trade
CSCO Cisco Systems Inc. 45.46 0.68 1.52 24,775,109 Trade
MCD McDonald's Corporation 186.09 1.52 0.82 2,531,418 Trade
LULU lululemon athletica inc. 149.85 0.38 0.25 1,602,142 Trade
HPQ HP Inc. 21.44 0.12 0.56 10,037,054 Trade
NFLX Netflix Inc. 321.99 -3.17 -0.97 13,490,601 Trade
HAS Hasbro Inc. 88.20 -0.86 -0.97 1,092,532 Trade
OMEX Odyssey Marine Exploration Inc. 5.65 -0.15 -2.59 57,787 Trade
T AT&T Inc. 30.89 0.31 1.01 27,854,974 Trade
CAT Caterpillar Inc. 131.82 -0.42 -0.32 3,123,622 Trade
HAL Halliburton Company 31.05 -0.21 -0.67 12,504,298 Trade
MSFT Microsoft Corporation 106.71 1.03 0.97 25,898,280 Trade
IBM International Business Machines Corporation 132.89 10.37 8.46 22,070,202 Trade

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Watchlist

Symbol Last Price Change % Change
AAPL

     
AMZN

     
HD

     
JPM

     
IBM

     
BA

     
WMT

     
DIS

     
XOM

     

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