There were some big movers in a mostly flat market today, May 6. The S&P 500 gained just 0.19 percent, while the Dow Jones lost 0.03 percent and Nasdaq gained 0.42 percent in today’s trading. Here’s a run down of the biggest movers including MBIA Inc. (NYSE:MBI), Groupon Inc (NASDAQ:GRPN), Bank of America Corp (NYSE:BAC), Tesla Motors Inc (NASDAQ:TSLA), and Apple Inc. (NASDAQ:AAPL).
MBIA Inc. (NYSE:MBI): The biggest story on today’s market was the revelation that a settlement had been agreed between MBIA Inc. (NYSE:MBI) and Bank of America Corp (NYSE:BAC). The deal, which relates to dealings made by Countrywide Financial, now a part of Bank of America Corp (NYSE:BAC) in the lead up to the financial crisis, will see Bank of America take a 5 percent share of MBIA Inc. (NYSE:MBI), and will pay a settlement of $1.6 billion to the company.
Bank of America will also be compelled to open a $500 million credit line to MBIA Inc. On today’s market, shares in MBIA rose by 45.37 percent, and finished the day at $14.28. The settlement brings to a close one of the most difficult periods in the history of the insurer and investors hope the company can turn away from the past after the settlement and head toward a more lucrative future.
Bank of America Corp. (NYSE:BAC): Following on from the rise in MBIA Inc. (NYSE:MBI) shares, shares in Bank of America Corp (NYSE:BAC) rose by 5.23 percent on today’s market. Investors seemed confident that the close of the suit between the two companies was beneficial for both, and it certainly removed a great deal of the uncertainty that surrounded Bank of America Corp (NYSE:BAC) shares.
Shares in the Bank had a tough time last week, after the ruling that MBIA Inc. (NYSE:MBI) would be allowed to bring their case against BofA to court. The settlement of the deal represents the closing of a chapter in the firm’s history, and investors seem excited about the future now the deal is done.
Tesla Motors Inc (NASDAQ:TSLA): The darling of Wall Street and tech culture alike, Tesla Motors Inc (NASDAQ:TSLA) shares rose by more than 9 percent on today’s market. Today’s trading sets the company’s stock more than 75 percent above the year’s starting price. Investors might be celebrating too early however.
Tesla Motors Inc (NASDAQ:TSLA) will announce its earnings for the first three months of 2013 on Wednesday after the market closes, and the company is expected to reveal its first quarterly profit. With the untested nature of the industry, and huge short interest in the stock, trading after the earnings are reported is likely to be very volatile, and it’s not a place for risk averse investors on Wednesday afternoon.
Groupon Inc (NASDAQ:GRPN): Today marked another bad day for the world’s most notable group discounter. After news emerged that another member of the company’s executive team, Faisal Masud, head of the firm’s e-commerce business, had decided to leave the company, shares in Groupon Inc (NASDAQ:GRPN) fell by more than 6.5 percent.
The coming earnings report from Groupon Inc (NASDAQ:GRPN), expected after the market closes on Wednesday May 8, is not looking too attractive to traders, judging by moves in the market today. In the last five days the company has lost more than 14 percent of its value and as bad news seems to keep piling in the post earnings trading will be interesting to say the least.
Apple Inc. (NASDAQ:AAPL): The Cupertino company has managed to put together one of the most positive strings of trading in recent history. Apple Inc. (NASDAQ:AAPL) shares rose by 2.38 percent to finish the day at $460.71. In the last five days of trading, stock in Apple Inc. (NASDAQ:AAPL) has gained more than 10%percent, signalling something of a recovery in the firm’s stock.
Investors in the smartphone maker will certainly be hoping that this recovery maintains itself. Investors appear to be buying in based on hopes that the company will release new products lines come June, and the attractiveness of the company’s capital distribution package that it announced with the release of its most recent earnings report.