Minyanville's Market Recap: AIG Scares, Stocks Fall
AIG rumors remind investors of the dog days of summer. Stocks end lower.
Rumors of AIG (AIG) taking in massive losses sparked memories of this summer's credit turmoil. The world's largest insurer was speculated to have write-downs of approximately $10 bln in their structured products group. Investors' concern was evident as Toddo noted on the Buzz the release of the news coincided with the "exact time the futures got waxed for five handles (in the midst of a "slow" day)." Although the rumors were confirmed to be untrue later in the day, the damage had already been done. AIG lost -3.21 to $61.79. Other financials were taken down as well. Bear Stearns (BSC) lost -2.19% to $111.05, Morgan Stanley (MS) lost -1.42%, and Citigroup (C) fell -1.41% to $41.23. Toddo also noted Countrywide's (CFC) performance as the stock hit a new all time low. For a complete summary, read his Random Thoughts.
Stocks in the tech sector were mixed today. Akamai (AKAM) beat analyst estimates by a penny as earnings came in at $0.34 per share. The stock surged +14.22% to close at $37.51. But other stocks did not fare so well after earnings. Symantec (SYMC) reported $0.29 EPS vs. $0.26 cons on revenues of $1.44 bln vs. $1.39 bln cons. The stock was driven down -12%; however, as the company issued downside guidance. The performance didn't frighten away Professor Katz; however, as he noted "the company beat on every metric… does it merit a 13% drop in the stock? Absolutely not…" Other notable performances include Apple (AAPL) losing -1.10%, Research in Motion (RIMM) losing -3.28%, and Garmin (GRMN) losing -2.19%. Read Professor Udall's Tech Is Down But Not Out.
In after hours Microsoft (MSFT) reported 1Q $0.45 EPS vs. $0.39 EPS with revenues of $13.76 bln vs. $12.54 bln cons. The company issued in-line guidance with EPS of $0.44-0.46 vs. $0.44 cons. Shares of the company surged +12.86% to $35.25.
Bidu (BIDU) reported 3Q $0.72 EPS vs. $0.70 cons on revenues of $66.3 mln vs. $65.3 mln cons. Although the company issued upside guidance for the fourth quarter, the stock was hit with immediate selling pressure sending the stock down -$15.00 dollars.
In commodities action, crude oil hit new highs rising $3.40 to $90.50. Metals were stronger as well. Gold added +7.1 to 772.70, Copper added 2.80 to 348.05 and Silver added +0.31 to 13.81. Professor Lewis noted silver's performance stating the surge in prices was a bullish sign for the whole precious metals complex. For more summaries, click on Minyanville's Buzz Bits.
Below is a recap of some of the idea flow on today's Buzz & Banter. Please note that stocks may appear in both bullish and bearish categories, due to long and short term trades by our many Minyanville professors.
Some bullish trade or investment ideas: AKAM, FFIV, BLK, SCHW, TOL, OXPS, LNN, MA, SYMC, ABX, NEM, TRMB, silver.
Some bearish trade or investment ideas: CSGP, CROX, EQIX, DECK, CF, POT, MOS, RDN, MTG, AMG, RVBD, CMI, TEX, CAT, MBI, SOX, AAPL, CFC, WM.
Thirsty Thursdays, Minyans! Have a great night and see you Friday!
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