After Market: Neither Cyber Monday Nor Amazon Drones Could Lift Stocks

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A pair of great public relations campaigns had everyone talking and shopping Monday, but neither one sparked much market action.

First, it's Cyber Monday -- a fairly recent invention of the internet retail community. But while millions of people clicked the 'buy' button, that didn't lead to a ton of buying on Wall Street.

Amazone Drone Delivery
AP Photo/AmazonAmazon CEO Jeff Bezos says it will take a while (and require a new set of rules from the FAA) before the Prime Air unmanned drone could be deployed to deliver packages but he thinks it could be ready to roll out in 5 years.
Shares of Amazon (AMZN), the 800-pound guerilla of online sales, were flat. But it was the buzz of virtually every news report, after CEO Jeff Bezos told "60 Minutes" that the company is working on a plan to delivery packages by drone.

Rival eBay (EBAY) gained 1.5 percent. Revenue has been growing at its PayPal unit.

How did big retailers fare after mixed numbers on shopping for the 4-day holiday weekend? Not too hot. Walmart (WMT) was little changed and Best Buy (BBY) gained 1 percent. But Target (TGT), J.C. Penney (JCP), and Macy's (M) all lost one percent or more and Sears (SHLD) tumbled 5 percent.

And Urban Outfitters (URBN) fell 3 percent after a downgrade to 'neutral' by the brokerage firm Sterne Agee.

Cyber Monday is also a giant day for delivery companies. FedEx (FDX) gained one percent but UPS (UPS) was little changed.

As for the broad market averages, the Dow Jones industrial average (^DJI) fell 78 points, back to 16,009. The Standard & Poor's 500 index (^GPSC) gave back 5 points to 1,801, and the Nasdaq composite index (^IXIC) lost 15 to close at 4,045.

Some of the Nasdaq biggest name stocks lost ground, including Apple (AAPL), Google (GOOG), Netflix (NFLX) and Tesla (TSLA), but Microsoft gained one percent.

The big loser among the blue chips was 3M (M), down 4 percent. Morgan Stanley downgraded its rating, citing the company's lack of internal growth.

And the insurer Travelers (TRV) lost 2 percent after negative comments from Goldman Sachs. Elsewhere, Marathon Petroleum (MPC) jumped more than 5 percent. Deutsche Bank upgraded the stock to 'buy.'

Forest Labs (FRX) gained 5 percent after laying out plans to reduce its workforce and R&D budget, in an effort to cut costs.

But Shoe Carnival (SCVL) lost 5 percent after issuing a disappointing outlook for the first quarter.

What to Watch Tuesday:
  • Automakers report November vehicles sales.
-Produced by Drew Trachtenberg.


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13 Comments

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worldchildfenghai

will you sign for me to help god to do accuse . site:https://petitions.whitehouse.gov/petition/kill-business-god-between-chineses-and-whites/GkmHNwpf

December 03 2013 at 6:07 AM Report abuse rate up rate down Reply
Iselin007

If the cyber activity was a flop it just shows how deep in a hole this country is.

December 02 2013 at 8:21 PM Report abuse +1 rate up rate down Reply
1 reply to Iselin007's comment
dweeeb.buster

Online retailing is growing by leaps and bounds.

If government goons could build a website that handles even just a fraction of the internet traffic seamlessly handled by Amazon or Google, the Panderer in Chief would at least appear slightly less of an incompetent.

December 02 2013 at 8:51 PM Report abuse rate up rate down Reply
Iselin007

It's a shame it won't be too long before they automate these distribution centers costing these workers their jobs. By that time however so many people will be out of work there will be few consumers ordering anything.

December 02 2013 at 8:16 PM Report abuse rate up rate down Reply
1 reply to Iselin007's comment
dweeeb.buster

If only we could recover from the demise of the buggy whip.

Alas, it seems completely hopeless.

December 02 2013 at 8:48 PM Report abuse rate up rate down Reply
Iselin007

I have to laugh about those average 1 lb packages at the Online business. Everyone knows after a few 100 repetitions 1 lb feels like 200 lbs. I saw nothing but young people in their TV interview so they probably steal half the big box store's associates when they open up those new warehouses in my area.

December 02 2013 at 8:11 PM Report abuse rate up rate down Reply
1 reply to Iselin007's comment
dweeeb.buster

Hell, between all the items in my shopping cart, and all the others I picked up to look at before returning them to the shelf, I probably lifted a few hundred 1 lb packages just during my trip to the grocery store today.

I must be much more studly than I ever imagined.

December 02 2013 at 8:54 PM Report abuse rate up rate down Reply
juststeve35

News Flash:

Neither Cyber Monday nor Amazon Drones can lift the market.

That action is held sacred and only occurs on pure speculation and announcements from the Fed.

It constantly astounds me how many of the Party Afflicted believe the Market acts, in ANY way, as an embodiment of the health of our National Economy.

December 02 2013 at 8:00 PM Report abuse rate up rate down Reply
1 reply to juststeve35's comment
Iselin007

The health of the economy is best judged by the middle class who have to work in it not by those who get rich off the sweat of their brow.

December 02 2013 at 9:40 PM Report abuse rate up rate down Reply
k4jlp

News Flash:
Commodity futures tank, dump your crude/gasoline futures quick....film at 11p

December 02 2013 at 6:09 PM Report abuse rate up rate down Reply
jdykbpl45

Just when is Amazon going to make a profit? No profit then no drones. Drones are spy tools.

December 02 2013 at 4:47 PM Report abuse +2 rate up rate down Reply
2 replies to jdykbpl45's comment
Iselin007

They should make a profit when the consumers see good jobs and 3 % unemployment. As for the drones they will be banned just like remote control model planes in Neighborhoods. Remember just some weeks ago some expert cut his head off while flying one in a field.

December 02 2013 at 7:55 PM Report abuse rate up rate down Reply
dweeeb.buster

First, Amazon is profitable. Granted the profit margin is razor thin, and if an investor believed this was the best they could achieve, they never invest their hard-earned capital into an entity earning such meager profits.

But Amazon is an amazing company. If their goal was greater immediate profit, they could achieve it easily by simply cutting back on the massive investments they are making to grow their business.

Instead, Bezos has his eye on longer term opportunities. As a result, every spare dime of cash flow he can scrounge is being re-invested into the business. I was at a presentation a couple weeks ago where the Amazon CTO was talking about how they add more computing power to their network every singe day than the total they owned back in 2004. This is absolutely incredible.

Woe to those in the cross-hairs of Amazon.

December 02 2013 at 8:19 PM Report abuse rate up rate down Reply