After Market: BlackBerry Plummets; Stock Indexes Rise on a Quiet Trading Day
BlackBerry (BBRY) stock plunged after its sale collapsed Monday, raising new questions about its survivability.
The Dow (^DJI) rose 23 points to 15,639, the S&P (^GPSC) added 6 to 1,768, and the Nasdaq (^IXIC) gained 14 to 3,936. Trading volume was especially light. Investors may be holding their fire ahead of key economic reports later this week: GDP on Thursday and jobs on Friday.
Shares of BlackBerry tumbled 16 percent after the smartphone maker dropped its plan to sell itself, apparently because it did not get any firm bids. It also named a turnaround specialist as its new CEO. Analysts say the surprise moves may indicate that BlackBerry is preparing to break itself apart and sell of the company in pieces.
Among the notable gainers today:
Tesla Motors (TSLA) jumped 8 percent ahead of Tuesday's earnings report. Over the past year, Tesla shares have soared 500 percent.
Vulcan Materials (VMC) rose more than 7 percent after its profit and revenue easily beat expectations. In general, housing and housing related stocks are doing well today.
Exxon Mobil (XOM) gained 2.5 percent.
Kellogg (K) edged slightly higher. It plans to eliminate 7 percent of its global workforce over the next few years, as part of a multi-year cost cutting effort.
And Merck (K) rose 1 percent on positive news about a vaccine product in the pipeline.
On the downside, Avon (AVP) fell another 3 percent. Last Thursday, it plunged 22 percent after saying a bribery scandal could lead to a big hit.
Johnson & Johnson (JNJ) has agreed to plead guilty and pay a $2 billion fine to settle Justice Department charges tied to the company's marketing of the anti-psychotic drug Risperdol. J&J was motivated to settle this case. The government could have blocked the company from selling products to Medicare and other agencies. J&J shares lost less than 1 percent.
The Justice Department also agreed to a settlement in its case against SAC Capital. The hedge firm will plead guilty to four criminal charges related to insider trading, and pay $1.2 billion. That's on top of $616 million it paid earlier. A federal prosecutor said the deal shows that no institution is "too big to jail."
What to Watch Tuesday:
- The Institute for Supply Management releases its service sector index for October at 10 a.m. Eastern time.