After Market: Stocks Rise Broadly; S&P Posts First Gain of 2014

Stocks posted solid gains Tuesday with the S&P earning its first green arrow of the new year. The Dow Jones industrial average (^DJI) rallied 105 points, the Nasdaq composite index (^IXIC) gained 39 and the Standard & Poor's 500 index (^GPSC) rose 11 points. The S&P avoids what would have been its first 4-day losing streak to start a year since 1978.

The gains were broad-based. Among the big blue chip winners: UnitedHealth (UNH) up 3 percent, IBM (IBM) up 2 and Boeing (BA) up 1.5 percent on reports that it landed a $4 billion order from Indian airline SpiceJet. Also, Johnson & Johnson (JNJ) gained 2 percent as RBC raised its rating on the stock.

Three of the biggest winners were small drug companies. A J&J partner, Pharmacyclics (PCYC), jumped 20 percent on positive results from tests on a blood cancer drug.

Epizyme (EPZM) soared 81 percent after it reported that its leukemia drug had achieved key milestones, which triggered a big payment from two larger partners.

And Neurocrine Biosciences (NBIX) rallied 87 percent on positive results for its drug to treat involuntary facial spasms.

Two companies gained after making strategic acquisitions. Palo Alto Networks (PANW) rose 3.5 percent. It bought start-up Morta Security. And Convergys (CVG) gained 7 percent after buying Stream Global.

But some big name retail stocks lost ground, possibly because the extreme cold is keeping shoppers away. Macy's (M) fell 2 percent, JCPenney (JCP) lost 5.5 percent, Sears (SHLD) fell 2 percent and Michael Kors (KORS) dropped 4 percent.

And two of last year's biggest winners gave up some of those gains. Best Buy (BBY) fell 2.5 percent and Netflix (NFLX) lost 5.5 percent. It was downgraded by Morgan Stanley, which cited competitive pressures.

But online travel companies are flying high. Expedia (EXPE) rose 3 percent, Priceline (PCLN) added 2 percent and TripAdvisor (TRIP) gained nearly 6 percent.

Elsewhere, the drive-in restaurant chain Sonic (SONC) gained 4.5 percent ahead of its earnings report.

Workday (WDAY), which makes cloud applications for businesses, rose 4 percent on a brokerage upgrade.

But software maker Cyan (CYAN) tumbled 30 percent after lowering its fourth-quarter revenue forecast.

What to Watch Wednesday:
  • Payroll processor ADP releases private-sector employment figures for December at 8:15 a.m. Eastern time.
  • The Federal Reserve releases minutes from December interest-rate meeting at 2 p.m., followed by consumer credit data for November at 3 p.m.
These major companies are due to report quarterly financial results:
  • Bed, Bath & Beyond (BBBY)
  • Monsanto (MON)
  • Ruby Tuesday (RT)
  • WD-40 Co. (WDFC)
-Produced by Drew Trachtenberg.

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Also on here is a story about Lindsey Vonn that she is out of the Olympics due to injury.
I really feel for her. Over one billion people watch the games on TV. My family is from Bavaria. After I broke the unbreakable cable on the leg machine and did 6 reps at 540 pounds on the bench press machine, I applied to the US Olympic Weightlifting Team in 2,005. I figured they would reject me because of my age, but no, they accepted me. So, I started training for the Games. You have no idea what it is like to have people stand around watching you train. I could get a better table at a restaurant than the president. It was all going great and then I crushed two discs in my back basically taking me out of it for life. That is tough. I had several sponsors but Nike swore that they didn't sponsor athletes while they had an entire secret Lance Armstrong department. Luckily I never became associated with Nike. I'm legit.

January 07 2014 at 6:57 PM Report abuse -2 rate up rate down Reply