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Market Recap: Bulls Take Another Beating


Stock did the "Pop N' Drop." Macy's weigh on the markets.

Bulls took another beating on Ash Wednesday. The Dow Industrials fell -65 points, or -0.53% to 12,200, the S&P 500 fell -10 points, or -0.76% to 1,326, and the Nasdaq Composite lost -30 points, or -1.33% to 2,278.

The major indexes received a lift this morning, boosted in part by earnings from Walt Disney (DIS). The company blew away analyst expectations after reporting results for the first quarter. Profits came in at $0.63 per share, $0.11 ahead of analyst expectations.

"I like a good negative rant as much as the next guy," said Professor Jeff Mack, "But sometimes a company screws me up by doing the right thing. The economy stinks, cable is tough, leisure spending is declining. I wouldn't own any media company that wasn't the industry leader but… I'm staying long Disney. I'm a sucker for excellence." DIS settled +4.76% to $31.50. For more, read his article All is Well in the House of Mouse?

Yet stocks seemed to roll over after Macy's (M) news hit the tape. The company announced a dismal same-store sales performance of -7.1% in January vs. -5.8% consensus. Further, it guided earnings for the fourth quarter in the range of $1.57-1.62 per share. Analysts had expected profits of $1.72 per share. Macy's shares tumbled -4.62% to $23.94. The sentiment spread to other areas in the retail sector. Costco (COST) fell -5.97% to $61.00. Sears Holdings (SHLD) dropped -4.69% to $97.50, and Circuit City (CC) fell -3.48% to $4.72.

Tech stocks took a beating as well. Toddo noted the warning signs on the Buzz, "Does that action, coupled with big beta (Apple (AAPL), Google (GOOG), Baidu (BIDU), Amazon (AMZN)) tip the scales in Boo's favor into the close?" Apple shares closed -5% to $122.60. Google fell -0.81% to $502.20. Baidu dropped -8.74% to $230.00, and Amazon closed -5% to $68.38. Read more in Toddo's Random Thoughts.

In commodities, Crude fell -1.35 to 87.06. "I would also draw your attention to the rude tude in crude as it gives back 1.5%," said Toddo, "You know my take on this – precipitous declines are potentially foreboding – so keep it on ye radar." Professor Adam Michael agreed with the sentiment saying he expected the price of crude to fall in the $78-80 range and possibly lower.

Gold rebounded closing +14.00 to 899.90. Copper prices surged adding +10.40 to 330.75 and Silver increased +0.185 to 16.530. The dollar index finished +0.052 to 76.168.

For more summaries, check out Minyanville's Buzz Bits.

Idea Flow

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: TMA, GEF, CMG, DECK, GOOG, IWM, GFI, LCC, AMR, DIS, SPX, AAPL, INFN, AKAM, QQQQ

Some bearish trade or investment ideas: HANS, QQQQ, CSCP, SIRF, AAPL, GOOG, BIDU, AMZN, Crude

Over the hump! Finally! Have a great night!
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No positions in stocks mentioned.

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