After Market: Stocks Rebound as Investors Shop for Bargains

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The stock market stopped its bleeding Tuesday, for at least a day. But there was no single obvious reason for the modest rebound, other than the fact the market was due for one after the recent spate of heavy selling days.

The Dow Jones industrial average (^DJI) rose 72 points, but the blue chip index is still down more than one thousand points so far this year. The Standard & Poor's 500 index (^GPSC) gained 13 points and the Nasdaq composite (^IXIC) rose 34.

Leading the Dow's advance, DuPont (DD), 3M (MMM), Merck (MRK) and Pfizer (PFE) all gained more than 2 percent. Pfizer was upgraded to a 'buy' from 'neutral' by Jeffries.

But some struggling retailers struggled some more. Radio Shack (RSH) lost 5 percent on reports that it plans to close as many as 500 stores. So much for its bounce from having one of the most popular Super Bowl ads. J.C. Penney (JCP) fell 10 percent. Its holiday sales were actually better than expected, but investors were unnerved because the company did not say anything about its earnings or profit margin. Sears (SHLD) lost 3½ percent.

Earnings was another big theme. Apparel and footwear designer Michael Kors (KORS) surged 17 percent. Its earnings easily topped expectations and the company issued a strong outlook. Yum Brands (YUM) jumped 9 percent. Its net also beat, as it starts to recover from food-safety problems at its KFC operations in China -– which is now the company's biggest market. But Dun & Bradstreet (DNB) fell 10 percent after posting disappointing quarterly results.

And not much fun for video game maker Take Two Interactive (TTWO). Sales of "Grand Theft Auto V" were strong, but the stock got run over by a disappointing forecast for the current quarter. Its shares fell 10 percent.

Elsewhere, Facebook (FB) celebrated its 10th birthday by gaining 2 percent, and the stock moved to its highest level since the company went public nearly two years ago.

And Furiex Pharmaceuticals (FURX) soared 128 percent after reporting positive results in two key clinical trials of its treatment for Irritable Bowel Syndrome.

What to Watch Wednesday:
  • Payroll processor ADP releases its survey of private sector hiring for January at 8:15 a.m. Eastern time.
  • The Institute for Supply Management releases its service sector index for January at 10 a.m.
These major companies are due to report quarterly financial results:
  • Allstate (ALL)
  • Automatic Data Processing (ADP)
  • Green Mountain Coffee Roasters (GMCR)
  • Merck (MRK)
  • Pandora Media (P)
  • Prudential Financial (PRU)
  • Ralph Lauren (RL)
  • Time Warner (TWX)
  • Twitter (TWTR)
  • Walt Disney (DIS)
-Produced by Drew Trachtenberg.


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12 Comments

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Jcwfuntime

If people would just quit panicking and selling off like in January, the market and the economy is set to "Take Off", and we'll all make money. Stay the course and let the "Upward Ride", continue!!

February 07 2014 at 2:12 PM Report abuse rate up rate down Reply
Iselin007

If I recall correctly Dun & Bradstreet collects information just like the NSA. They gave some of us from Devry a tour of their data storage back in 1990.

February 05 2014 at 12:23 AM Report abuse rate up rate down Reply
Iselin007

Radio Shack is closing 500 stores. They aren't the only ones with cheap imported crap.

February 05 2014 at 12:09 AM Report abuse rate up rate down Reply
Iselin007

They know the economy is in the crapper for millions of Americans so they should just just give everyone food stamp credits an let them dial the sub shop for free meal deliveries.

February 04 2014 at 11:39 PM Report abuse rate up rate down Reply
Iselin007

If anymore trade deals pass your descendants won\'t have to worry about the economy because there won\'t be one.

February 04 2014 at 11:18 PM Report abuse rate up rate down Reply
supermolar

looking for bargains? wait about 6 months

February 04 2014 at 10:48 PM Report abuse rate up rate down Reply
jwmgrand

Nice Little ( Feel Good all over again staged rally ) we all like good news .. it elevates us and sends our fears into submission ...... just what the Doctor ordered ... many will say ... oh that chart is not so bad , the ticker was positive most of the day , Corporation X made some earnings , the VIX was not so bad .... anything to hide the fact that this ship has hit an iceberg and it is rapidly taking on water ... after all nobody likes a getting scared ... especially about their $$$$ ..... that can be gone in minutes .... not days or hours ... many will be caught with the deer in the headlights look on their faces ... all it will take ( again ) is some big names to say ...Im Out ......and then the stampede .........for the exits ... will STILL remain very Oversold !!!!!!

February 04 2014 at 10:43 PM Report abuse -1 rate up rate down Reply
betty_brock

Stocks will plummet when Obamacare kicks in with full force.
Did you see the article about Obamacare costing millions of jobs?
It wasn't even a Republican study.

February 04 2014 at 8:33 PM Report abuse rate up rate down Reply
2 replies to betty_brock's comment
vobox3343

Interesting. Was it Obamacare the reason for the greatest recession since the depression that caused so many job losses? But anyway, they're simply speculating as to what might happen. In other words? Assuming. And you know what they say about that.

February 04 2014 at 9:39 PM Report abuse +1 rate up rate down Reply
Iselin007

No problem they'll just be added to the others "not in the labor force" and the unemployment rate will drop yet again!

February 04 2014 at 11:30 PM Report abuse rate up rate down Reply
SPQR

I put all my money in J.C. Penny !!! just you wait I will be a millionaire yet

February 04 2014 at 6:35 PM Report abuse rate up rate down Reply
elendil3136

More of the same. Stocks are up (or down) and no one really knows why.

As usual, their is more money in selling stock market advice than in investing in the market.

Anyone who actually knew what the market was going to do would be wise to keep that information to himself.

February 04 2014 at 6:12 PM Report abuse rate up rate down Reply