|The Markets Now: Michael Kors Surges Among Flat Stocks|
By Casey Quinlan FEB 12, 2013 11:40 AM
Barclays and Avon were also winners Tuesday morning.
US stocks were mostly flat as investors continue to wait for more economic signals from Europe.
In US economic news, the Small Business Optimism Index is now at 88.9 but optimism is still at record lows. Market consensus estimated a reading of 88. Redbook's chain store sales rose to 2.4% up 1.1% from January. Retail sales for the whole month of January will be posted tomorrow.
Dow (INDEXDJX:.DJI) gained 28 points, rising to 13999.35, and the S&P 500 (INDEXSP:.INX) inched up 0.08% to 1518.23. The Nasdaq (INDEXNASDAQ:.IXIC) stayed flat at 3192.
Barclays (NYSE:BCS) stock surged 8.50% to $20.43 after it announced it will cut 3,700 jobs as it continues to scale back on its investment banking, European retail, and business banking divisions.
Coca-Cola's (NYSE:KO) fourth-quarter net income rose to $0.41 a share from $0.36 a share a year ago and profit rose 13%. Net income fell short of expectations by $0.03. Its stock declined 1.86% to $37.89.
Avon (NYSE:AVP) shares moved up 16.84% to $20.19 after the company reported a quarterly net loss of $162 million or $0.37 a share from a loss of $400,000 a year ago. The beauty products company sold 2% more products and the number of sales representatives rose 1%, indicating signs of stabilization, CEO Sheri McCoy said.
Novo Nordisk (NYSE:NVO) shares were hurt badly after the US Food and Drug Administration denied the approval of its new insulin drug. The stock is up 1.70% at $168.22.
The financial information company McGraw-Hill (NYSE:MHP) posted a loss in the fourth-quarter of $214 million or $0.78 a share after it took a charge on a sale of its division to Apollo Global Management (NYSE:APO). Shares inched up 0.45% to $44.48.
Michael Kors (NYSE:KORS) fiscal third-quarter earnings surged 10.77% to $63.14 after reporting a profit of $0.64 a share from $0.20 a share a year earlier. Revenue increased 70% and retail sales moved up 67%.
Goodyear Tire & Rubber Co. (NASDAQ:GT) beat analyst expectations, but the company's shares slid on news that it would cut back operations in Europe. The tire-maker brought in $0.74 a share in revenue, down from $1.26 the year before. The stock fell 3.13% to $13.48.
Netflix (NASDAQ:NFLX) stock went up 0.55% to $178.93 on recent news that the company will compete by streaming its own original television shows, which is supposed to signal a serious game change for the struggling service.
Dell (NASDAQ:DELL) shares moved up 0.44% to $13.76 despite anticipation that the $24 billion deal to go private may fail after Round Rock, Dell's largest shareholder, announced it was against the plan.
A Barron's report recommending Wendy's (NASDAQ:WEN) as a buy may have bolstered its stock, up 0.38% at $5.22.
Apple (NASDAQ:AAPL) will respond to the Greenlight Capital suit Wednesday. Apple has stated that it will consider the hedge fund's urging to return cash to shareholders. Shares declined 0.83% to $475.86.
Facebook (NASDAQ:FB) is being sued by Rembrandt Social Media in Virginia's federal court for use of what the holding company said was a patented “Like” button. Its stock slid 0.49% to $28.12.