After Market: Best Car Sales Since 2007 Lift Automakers

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Stocks edged away on Tuesday from Monday's record highs, but the bidding for one big food company continued to heat up. The The Dow Jones industrial average (^DJI) fell 21 points, the Standard & Poor's 500 index (^GPSC) slipped less than a point, and the Nasdaq composite (^IXIC) lost 3 points.

The rally in the Dow Transports was also derailed. Norfolk Southern (NSC) and CSX (CSX) both lost about 1½ percent and GATX (GMT) dropped 3½ percent.

But utilities, which have been among the best performers this year, continue to heat up. FirstEnergy (FE) rose 3 percent.

And auto sales in May soared to their highest level since February 2007. General Motors (GM) gained 1 percent, Toyota (TM) rose nearly 1 percent and Ford (F) added about 0.5 percent.

Hillshire Foods (HSH) is the subject of an intense bidding war. It jumped another 9½ percent as Pilgrim's Pride (PPC) sweetened its bid, and investors expect the bidding to go still higher. Pilgrim offered $55 a share, $5 a share more than Tyson Foods (TSN) has bid. Hillshire closed above the latest offer price, indicating that investor believe battle may not be over yet. Hillshire shares have soared 66 percent over the past month.

On the earnings front, doughnut-maker Krispy Kreme (KKD) got creamed. It fell 15 percent after posting disappointing sales and cutting its outlook for the year.

Quiksilver (ZQK), which makes surfer and skateboard apparel, tumbled 41 percent as its loss widened. It's now lost more than half its value over the past year.

But Dollar General (DG) gained 4 percent on a decent sales gain.

And G-III Apparel (GIII) rose 9 percent as it beat expectations and raised its outlook. G-III makes brand name apparel lines such as Calvin Klein, Tommy Hilfiger and Levi's.

Elsewhere, Clovis Oncology (CLVS) tumbled for a second straight day. It lost 20 percent today on growing concern that it's fighting a losing battle with AstraZeneca (AZN) over experimental lung cancer treatments. Clovis shares have lost nearly half their value over the past year.

And a pair of gambling giants fell on disappointing revenue from casinos in Macau. Wynn Resorts (WYNN) dropped 4½ percent and Las Vegas Sands (LVS) lost 2½ percent.

What to Watch Wednesday:
  • The Mortgage Bankers Association releases weekly mortgage applications at 7 a.m. Eastern time.
  • ADP (ADP) releases its survey of private-sector employment at 8:15 a.m.
  • At 8:30 a.m., the Commerce Department releases international trade data for April, and the Labor Department releases revised data for first quarter productivity.
  • The Institute for Supply Management releases its service sector index for May at 10 a.m.
These major companies are scheduled to release quarterly financial statements:
  • Cyberonics (CYBX)
  • Five Below (FIVE)
  • Hovnanian Enterprises (HOV)
-Produced by Drew Trachtenberg.


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Iselin007

Even at the low prices of imported crap the middle class decline is making those low price goods out of reach.

June 03 2014 at 9:28 PM Report abuse rate up rate down Reply
Iselin007

They change these boards a lot quicker now because they can't find enough people to hype the economy. Most peole are fed up with this economy it's just not producing anything better than crap jobs. Flip your burger Sir or can I get you a fully loaded pallet of cheap made in China crap?

June 03 2014 at 9:25 PM Report abuse rate up rate down Reply
Iselin007

With manufacturing all but gone, unscrupulous temp agencies, outsourcing, and imported visa workers the middle class is declining too quickly for a recovery. People are not having kids due to the downward spiral. It's those that risk swallowing the hyped recovery that will be the most surprised.

June 03 2014 at 9:13 PM Report abuse rate up rate down Reply
thefacts22

Automobile sales "soar" ....1%?,and our unemployment is at record high,WS casino is up and down,plus stupidity and incompetence is at records high

June 03 2014 at 6:56 PM Report abuse -2 rate up rate down Reply
1 reply to thefacts22's comment
Iselin007

With people leaving the labor force due to no jobs anything the shiesters are selling, I'm not buying.

June 03 2014 at 8:53 PM Report abuse rate up rate down Reply