With one huge element of uncertainty to be resolved once America officially decides on its choice of president, the US stock market registered solid gains in mid-Tuesday trading.
"Equity markets in presidential election years do not follow a consistent pattern like markets in midterm election years. However, median equity performance in the weeks following very competitive elections slightly outpaces performance following less competitive contests," Jan Hatzius, chief US economist at Goldman Sachs, said in a note, according to The Street
. "That said, this election is unusual in that it will be immediately followed by debate on the fiscal cliff, and thus resolution of the election will reduce, but not eliminate, policy uncertainty."
The Nasdaq Composite
(INDEXNASDAQ:.IXIC) was up 0.71% to 3,020.93 points on average trading volume of 817.76 million as of 12:13 p.m. EST.
(NASDAQ:ENOC) was among the day’s leading gainers, surging 19.95% to $14.01. The company reported expectations-beating results yesterday. For its fiscal third quarter, EnerNOC reported earnings of $2.40 per share on revenue of $177.9 million, when analysts had predicted earnings per share $1.94 of and revenue of $169.4 million.
(NASDAQ:MIPS) also jumped 1.85% to $7.14 on news of its acquisition by Imagination Technologies. The microprocessor IP licensing company is selling 498 of its 580 patents to Bridge Crossing, a company launched by Allied Security Trust for $350 million, while its remaining assets will be bought by Imagination for $60 million. The combined value of the two deals was $7.31 per share in cash.
Among decliners, SeviceSource International
(NASDAQ:SREV) was among the hardest hit, plunging 35.43% to $5.30, after the company provided weak fourth quarter guidance. The company posted an earnings beat for its third quarter, but forecast fourth quarter revenue of $62 million to $64 million and a loss of between $0.01-$0.02 per share, when the consensus was $72.1 million in revenue and a profit of $0.04 per share.
(NASDAQ:VVUS) also slid 23.08% to $11.50 after missing third quarter estimates. Because of the costs related to the launch of its high-profile anti-obesity drug Qsymia, Vivus reported a third-quarter net loss of $0.40 per share, when analysts had estimated a loss of $0.31 per share.
(NASDAQ:ESRX) was another heavy decliner, retreating 13.66% to $54.29, its largest fall in 30 months. The biggest US pharmacy benefits manager said in a statement yesterday that “weak business climate and the unemployment outlook” may lead to a decline in membership, and that the Street’s consensus for 2013 profit growth were “overly aggressive.” Analysts had forecast that Express Scripts would have net income of $4.50 per share for 2013.
No positions in stocks mentioned.
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