After Market: What Comes Down Must Go Back Up - and It Did

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Stocks rallied on Wednesday, recouping their loses from Tuesday's selloff –- and that's basically been the story all year. The Dow and S&P have set some record highs in 2014. They've also dipped several times, raising fears of a correction -- a decline of 10 percent or more. But add it all up and the major averages have held within fairly narrow ranges all year.

With minutes from the Federal Reserve's last FOMC meeting indicating that there's no interest rate hike coming anytime soon, the Dow Jones industrial average (^DJI) gained 158 points, the Standard & Poor's 500 index (^GPSC) rose 15, and the Nasdaq composite (^IXIC) added 34 points.

Leading the blue chips upward, Goldman Sachs (GS), Verizon (VZ), Chevron (CVX), Microsoft and Cisco (CSCO) all rose 1 percent or more. Cisco, however, did warn of a "brutal" period of consolidation ahead for the tech sector, but that did not have much of an impact on trading Wednesday.

For the second day in a row, a slew of retailers posted earnings. Target's (TGT) numbers were in line with expectations, and the stock gained 1 percent. Over the past year, though, it's lost 20 percent. Target is still unable to estimate the total cost from last year's massive data breach.

Lowe's (LOW) edged lower. Its net was okay but sales were below expectations.

The teen apparel chain American Eagle (AEO) lost 6½ percent. Earnings fell sharply from a year ago, its forecast for the current quarter was weak and the company plans to close 150 stores.

PetSmart (PETM) fell 8 percent after forecasting a "challenging environment."

But Tiffany (TIF) shares glittered, up 9 percent. Net was weak, but sales topped expectations and the company upped its forecast for the year.

Also on the earnings front, cloud computing company Salesforce.com (CRM) fell 5 percent despite beating expectations.

And food maker Hormel (HRL), best known for its Spam and chili, fell nearly 3 percent.

Elsewhere, Trina Solar (TSL) jumped 30 percent after forecasting higher solar panel shipments.

And late in the session, cigarette maker Lorillard (LO) popped 10 percent on a Reuters report that it's in talks to be acquired.

Tecogen (TGEN), which produces electricity for industrial buildings, more than doubled in price after completing a stock offering.

And the insurance giant AIG (AIG) rose 2 percent on a Goldman Sachs upgrade to "buy."

What to Watch Thursday:
  • The Labor Department releases weekly jobless claims at 8:30 a.m. Eastern time.
  • At 10 a.m.: the National Association of Realtors releases existing home sales for April; Freddie Mac releases weekly mortgage rates; and the Conference Board releases leading indicators for April.
These major companies are scheduled to release quarterly financial statements:'
  • Aeropastale (ARO)
  • Best Buy (BBY)
  • Dollar Tree (DLTR)
  • GameStop (GME)
  • Gap (GPS)
  • Hewlett-Packard (HPQ)
  • Perry Ellis International (PERY)
  • Ross Stores (ROST)
  • Sears Holdings (SHLD)
  • TiVo (TIVO)
  • Toronto Dominion Bank (TD)
  • Zumiez (ZUMZ)
-Produced by Drew Trachtenberg.


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12 Comments

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republicanslostagain

skcarcomed_0,.....is a poor redstate hillbilly who loves to hoard government cheese logs in his trailer. He's also a uneducated conservative who thinks the world is flat.

May 22 2014 at 7:43 AM Report abuse +1 rate up rate down Reply
Iselin007

China got those jobs with out firing a shot ,all they had to is threaten to rat out the politicians who set up this scam to outsource jobs.Now the rich are getting richer off the new cheap slave labor force and banking the tax money over seas.

You have to figure all this greedy plotting is going to shorten life spans an aggravate more wars around the globe.

China has your number no need to get a ticket an stand in line. Be funny if they had a video of some of the transactions that traded our jobs from under us.

May 21 2014 at 10:05 PM Report abuse +1 rate up rate down Reply
Iselin007

According to Rutgers report I had down loaded,( In so many words ) NJ saw a change from a manufacturing economy to a service economy but had planned for all the lost jobs.

Well look at all the lost jobs. The politicians screwed generations of workers so they could get that campaign money. Many of the jobs were skilled machinists,tool & die makers, assemblers, solders ect.. WTF were the over paid politicians thinking?

May 21 2014 at 9:45 PM Report abuse +1 rate up rate down Reply
1 reply to Iselin007's comment
Iselin007

But had not planned for all the lost jobs.

May 21 2014 at 9:46 PM Report abuse rate up rate down Reply
Leroy Gd

Yes the market is up. Small wonder as the fed put 65 billion a month in to prop it up. That's great as the value of the dollar drops by the minute, a small price to pay to have obama not look as bad as he is right numb nut liberals?

May 21 2014 at 6:27 PM Report abuse rate up rate down Reply
kolblh

My house isn't worth what I paid for it fourteen years ago, my utillity bills continue to rise, taxes increase, I get less for more money in the supermarkets, medical bills are out of site, gas prices increase daily, my grandchildren have huge debts for their education which was suppose to provide good jobs and there are no jobs, I have constant phone calls asking for money to support every known charity there is, the TV cable bill is outragous, and on and on. The American Dream is becoming a nightmare. Wall Street runs this country and our "so called" leaders aid and enables it.

May 21 2014 at 5:57 PM Report abuse +1 rate up rate down Reply
2 replies to kolblh's comment
Leroy Gd

You can thank obama and the rest of the socialist democrat party for this country being destroyed. And a special thanks to all the numb nut lefty liberals for putting these fools into office.

May 21 2014 at 6:30 PM Report abuse rate up rate down Reply
2 replies to Leroy Gd's comment
teaparty2implode

Nice fox news spin you must be really dizzy from saying that post . This country was already destroyed by Bush and the Republicans DF, .......the 2008 economic collapse the worst economic crisis since the great depression. Are you that stupid ? John Mccain even said back in 2008, if we Republicans talk about the economy we will lose the presidential elections. Thank you John Mccain for your honesty

May 21 2014 at 11:12 PM Report abuse +1 rate up rate down
dopey.obamite

Hmmm and jimmy carville advised dems not to use the word "recovery".

How does one say a post?

May 21 2014 at 11:50 PM Report abuse rate up rate down
jpfmtka

I am sorry you and yours are doing poorly but, getting ahead requires an effort. My home's value has increased about 18% in the last five years. We are prudent with our use of utilities and try to conserve everywhere. I use coupons, shop sales and market on "old folks day" to save an additional 5%. "Points" at the market usually add up to a dollar off a gallon when we fill up at the pump.( One vehicle an excellently maintained 17 year old Jeep). Had a single $46,000 hospital bill last year and my insurance covered all but $1900.00. My children and those of my siblings are college graduates with no debt. We hare pleased to support many, many charities, the majority of them environmental or animal focused. The cable, while expensive, is elective. One will not starve or end up in the ER for lack of cable. The American Dream is still available for those who have (or have had) the ability to plan accordingly, save appropriately and have scrimped where necessary to save. We will retire very comfortably on our savings that began from day one on our first job. How is it that some of us are doing so well without being one of the 2% or needing to rely upon government handouts while others spend their time whining on the internet about how their ills are all the fault of others. Mirrors exist for a purpose.

May 21 2014 at 6:46 PM Report abuse -3 rate up rate down Reply
2 replies to jpfmtka's comment
militiaman2013

Congratulations on all of your success!!!!!!!!!!!!

I was fortunate enough to have one of those jobs that paid a livable wage and provided a pension. But those jobs started disappearing as early as 1999 and 15 years later the economy is full people who are not contributing to the economy because they don't have savings or pension.

And all you have to do now is look at the stocks that were pumped last year by Bernanke and Cramer and see them hitting 52 week lows now because those dollars eliminated by the low wage non pension jobs don't exist anymore. Sadly, our Government and the Corporations will not let each other fail even if it means endless printing of worthless FED dollars.

I give to charities that help people in need, the environment and the animals do not get precedence over people when I'm giving.

Even with the market and FED inflated phony economy my house is not worth 18% more than it was 5 years ago, more like 40% less.

As far as the American dream 2% own over 80% of everything period and they own the American dream, the little guy/gal doesn't stand a chance. Is your last name Bush by any chance?

Remember, this started with Bush and Cheney, did we already forget the clown with the big ears named George who couldn't even think of enough words to hold a 30 second conference? America lost so much when that illiterate took office, at least Obama can make complete sentences.

Flaunting your insurance is disgraceful at least Obama evened the playing field so their are no more bragging rights. Everyone has insurance and anyone who has a $46,000.00 insurance bill can receive medical treatment without being mocked by someone like you.

Everyone should kill their cable and Directv, this so called reality TV garbage that gives Hollywood salaries to those who are already well off is even more disgraceful.

May 21 2014 at 9:36 PM Report abuse +1 rate up rate down
dopey.obamite

LMAO....keep grabbing your ankles, militia. It looks like it's the only thing you're good at.

May 21 2014 at 11:52 PM Report abuse -2 rate up rate down