Post Market News
Stocks that were active in U.S. trading on Tuesday include Walgreen Co. (NYSE:WAG), Barnes & Noble Inc. (NYSE:BKS), Impax Laboratories Inc. (NASDAQ:IPXL), Demand Media Inc. (NYSE:DMD) and Carnival Corp. (NYSE:CCL).
- U.S.: Dow Jones: 14,800.22 (+0.96%), S&P 500: 1,590.34 (+1.10%), Nasdaq: 3,352.62 (+0.96%)
- World Markets: Shanghai: 1,959.51 (-0.19%), Nikkei 225: 12,969.34 (-0.72%), Hang Seng Index: 19,855.72 (+0.21%), TSEC: 7,663.23 (-1.22%), FTSE 100: 6,101.91 (+1.21%), EURO STOXX 50: 2,543.37 (+1.26%), BSE Sensex: 18,629.15 (+0.48%)
- Metals: Gold: $1,275.10 (-0.16%), Silver: $19.53 (+0.17%), Platinum: $1,350.50 (+1.61%)
- Currency: EUR/USD: 1.3090 (-0.25%), USD/JPY: 97.76 (+0.04%), GBP/USD: 1.5426 (-0.10%), USD/CAD: 1.0516 (+0.21%), USD/CNY: 6.1453 (0.00%), AUD/USD: 0.9261 (-0.13%)
- 10 year U.S. Treasury: 2.58% (+0.03), 30 year U.S. Treasury: 3.60% (+0.03)
Market & Economy Update
In a major move, the People’s Bank of China said that it will ensure the stability of Chinese financial markets. Global stock prices rebounded after Chinese authorities attempted to allay concerns about the cash crunch. The Dow Jones Industrial Average rose 112.80 points to 14,772.36, the S&P 500 Index jumped 16.56 points to 1,589.85 while Nasdaq gained 31.52 points to 3,352.28.
Stocks In Focus
Walgreen Company (NYSE:WAG)
The largest U.S. drugstore chain’s third quarter profits soared 16 percent, driven by rising demand for generic drugs. However, Walgreen Company (NYSE:WAG) earnings fell short of Wall Street expectations. Customer traffic also declined 3.9 percent during the quarter. Walgreen reported 85 cents in earnings and $18.31 billion in revenues. Analysts were expecting $18.4 billion in revenues and 91 cents in earnings. Walgreen shares plunged 5.91 percent to close the trading session at $45.21.
Barnes & Noble, Inc. (NYSE:BKS)
Barnes & Noble, Inc. (NYSE:BKS) posted worse than expected quarterly results. The company said Tuesday that its fourth quarter losses more than doubled from the same period last year. After facing heavy losses on its digital unit, Barnes & Noble said it will stop making Nook tablets to stem losses. The company posted a loss of $118.6 million, or $2.11 a share. Revenues also declined 7 percent to $1.28 billion. Analysts were expecting a revenue of $1.33 billion and a loss of 97 cents a share. Shares tanked 17.06 percent to $15.61.
Impax Laboratories Inc (NASDAQ:IPXL)
Impax Laboratories Inc (NASDAQ:IPXL) announced today that its president and CEO Larry Hsu has decided to retire. Hsu will remain in his current position until the three-member search committee finds his successor. Hsu will remain a board member even after the appointment of his successor. Shares soared 6.14 percent to $19.02 at the end of the trading session.
Demand Media Inc (NYSE:DMD)
Demand Media Inc (NYSE:DMD) warned that recent changes in Google’s search algorithm have hurt the traffic to its sites. Research firm Stifel Nicolaus cut its rating on Demand Media from buy to hold. Stifel Nicolaus also reported that the algorithm change resulted in a loss of high margin revenues. Shares tanked 20.44 percent to $6.50.
Carnival Corporation (NYSE:CCL)
Carnival Corporation (NYSE:CCL) reported quarterly earnings of 9 cents a share, compared to the consensus estimate of 7 cents. Revenues came at $3.50 billion, missing analysts estimate of $3.56 billion. However, Deutsche Bank analysts reiterate a buy rating with $40 price target, indicating about 20 percent upside potential. Shares jumped 5.03 percent to end the session at $34.76.