After Market: A Well-Earned Rebound for Investors

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Investors brushed aside geopolitical concerns Friday and focused on the fundamentals: earnings, which overall looked pretty good. That explains why, just one day after the S&P 500's largest drop in three months, stocks bounced back in force. The Dow Jones industrial average (^DJI) gained 121 points, the Nasdaq composite (^IXIC) picked up 68, and the Standard & Poor's 500 index (^GPSC) was higher by 20 points.

There was plenty to digest on the earnings front. Conglomerate General Electric (GE) met expectations with its results, and began the process of launching an IPO for Synchrony Financial, its North American consumer-finance division. GE expects that listing to raise $3.1 billion. The stock ended the day lower by roughly half a percent.

Profits rose at Honeywell (HON), as did the stock, picking up more than 1.5 percent.

Results were a mixed bag for Google (GOOG). Its revenue grew 22 percent, but the cost per click for ads, a key metric investors look at, fell 6 percent fueling concerns about mobile ad revenue. Still, several analysts raised their price target or rating on the stock and shares gained more than 3.5 percent.

IBM (IBM) also came out with its results late on Thursday. Earnings grew, thanks mainly to cost cutting, but for the ninth quarter in a row, revenue fell and Big Blue's software and services divisions didn't show the growth some had expected. Its shares ended slightly lower.

Earnings surprisingly fell at chipmaker AMD (AMD) and shares sold off sharply, down 16 percent. Chipmaker Nvidia (NVDA) also fell down 4.5 percent. But Avago Technologies (AVGO), which also makes semiconductors, rallied more than 4 percent. The stock is up a staggering 40 percent so far this year.

Huntington Bancshares (HBAN) gained almost 5 percent on earnings that grew 9 percent.

It was also a busy day for IPO's. Sage Therapeutics was up 67 percent and TubeMogul gained 65 percent.

On the mergers and acquisitions front, Gentiva Health Services (GTIV) rejected a bid from Kindred Healthcare, saying some other bidder -- it won't yet say who -- has come up with a better offer. The stock rallied 16 percent.

AbbVie (ABBV) has reached an agreement to by Shire in the U.K. for roughly $54 billion. The stock was up more than 2.5 percent.

And Microsoft (MSFT) gained slightly after hitting a 14-year high on the announcement the company was laying off 18,000 workers to streamline its business.

And finally, Amazon (AMZN) gained more than 1.5 percent after introducing a new plan. For 9.99 a month you can now get unlimited access to over 600,000 of Amazon's ebooks and thousands of audiobooks. For speed-readers this is a dream come true.

We're going to be taking a bit of a break on the Money Minute and After Market videos, but they'll be back soon. In the meantime, you can still find coverage of all of the news that matters to you and your money on DailyFinance.

-Produced by Karina Huber.

What to Watch Monday:
These major companies are scheduled to release quarterly financial statements.
  • BB&T (BBT)
  • Chipotle Mexican Grill (CMG)
  • Haliburton (HAL)
  • Hasbro (HAS)
  • Lennox (LII)
  • ManpowerGroup (MAN)
  • Netflix (NFLX)
  • Rent-A-Center (RCII)
  • Six Flags Entertainment (SIX)
  • SunTrust Banks (STI)
  • Texas Instruments (TXN)

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18 Comments

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Iselin007

The big box store imports alot of baked goods from Canada which come frozen. The frozen baked goods are put in a freezer then defrosted as each item is taken to fill in shelves on the floor. The expiration date depends on when that particular baked good was placed on the floor and defrosted!

July 19 2014 at 11:50 AM Report abuse rate up rate down Reply
Iselin007

d.barack
Some of your post is true, but you would also be clueless to think that the Chinese are the only ones purchasing our farmland, food suppliers)

Carlos Slim/ Mexico has bought up alot of the bakers wich were already made up of groups owning several other bakers. Much of our bread, cake, and other baked goods are now owned and controlled from Mexico.

July 19 2014 at 11:42 AM Report abuse rate up rate down Reply
mrspelosi

Oh how unfortunate for you dear.

July 18 2014 at 10:27 PM Report abuse rate up rate down Reply
mrspelosi

Oh my Miss Huffington will not allow me to post.

July 18 2014 at 10:27 PM Report abuse rate up rate down Reply
mrspelosi

Oh my the liberals are out of control again.

July 18 2014 at 10:26 PM Report abuse rate up rate down Reply
Iselin007

fakeconomics2
Most of the Corporations and Investors do have a lot of cash on hand and I see modest growth
=============================================
And so do pimps and drug dealers.

July 18 2014 at 10:21 PM Report abuse -3 rate up rate down Reply
Iselin007

Watch for the old posts to pop up like they did before because they got it on automatic. Fire the damn visa workers!

July 18 2014 at 10:18 PM Report abuse -2 rate up rate down Reply
Iselin007

The economics can only get worse from here on out as the population of the global market place grows too large to be managed and the conflicts become unbearable.

Yeah watch your earnings go bye-bye, it will be everybody for themselves.

July 18 2014 at 10:11 PM Report abuse -2 rate up rate down Reply
teabuster2

mrs.perlosi

Have you called your sponsor today dear?
===================================
New screen

July 18 2014 at 9:42 PM Report abuse -5 rate up rate down Reply
1 reply to teabuster2's comment
teabuster2

OOPPPPs
Name

July 18 2014 at 9:43 PM Report abuse -6 rate up rate down Reply
2 replies to teabuster2's comment
mrs.perlosi

It is evident that you started on your third bottle and you are not making any sense dear. You should not have started the first bottle darling. How unfortunate for you.

July 18 2014 at 10:05 PM Report abuse +1 rate up rate down
mrs.perlosi

Poor Somey just can not get himself back on the wagon darlings.

July 18 2014 at 10:08 PM Report abuse +1 rate up rate down
socioeconomist1

What a surprise, I explain in detail how the banks and government manipulate the economy and stock prices, and the media is just repeating the gossip handed to them by leaders of industry, banking, and government to brain wash all the uninformed readers and the story gets pulled and this one gets put up in it's place... Let's see, what did I say... Stimulus creates bubbles, majority of major stocks are owned by institutions.. DOW will hover between 17,000 and 19,000 over the next 3.5 years till the next recession hits... Media will have idiotic reasons for why stocks rise and fall daily when real economic data is overlooked. China buying up America's farms to beat paying farmers for their products and that is why food has gone up 40%. Americans will pay insane prices for food in the future while a majority of it is shipped abroad with no corporate income to tax and ag zoned real estate is still only taxed around $5 to $7 an acre. Basically giving our nation's farmland over to China to export our food and America gets nothing in return but $5 an acre for property taxes. Again on the propaganda, the media using BS reasons for why food has gone up 40% so everyone isn't informed of China's farm purchases, like hog virus, roosters that can't get hard, and less than 1% of the nation's herd being in a drought region of northern California. I compared China's purchasing of American farms/Smithfield Foods to investing in Australian mining companies like Fortescue Metals to beat shipping costs and paying Brazilian miners for iron ore to point out modus operandi. Yep that was about it... One last thought to ponder... If the Federal Government really wants to see people get paid more, then couldn't they just raise the General Services wages and hire a bunch of people ??

July 18 2014 at 9:06 PM Report abuse -5 rate up rate down Reply
2 replies to socioeconomist1's comment
SPQR

And just who is buying all this land? Well, as we reported a few months ago, wealthy investors like George Soros (http://www.naturalnews.com/033319_food_price...), and China, which currently holds the most US debt currency in the form of Federal Reserve Notes (http://www.crikey.com.au/2011/06/16/foreign-...) have been busy buying farmland around the world.

Learn more: http://www.naturalnews.com/034259_farmland_America.html##ixzz37sQ9ZJdo

July 18 2014 at 10:17 PM Report abuse -1 rate up rate down Reply
1 reply to SPQR's comment
socioeconomist1

Smithfield foods....

July 19 2014 at 2:35 AM Report abuse rate up rate down
SPQR

chickens are all artificially inseminated...makes no difference how fat roosters are.

July 18 2014 at 10:18 PM Report abuse -1 rate up rate down Reply