Dow Underperforms Amid Mixed Earnings; Nasdaq Composite Closes at 13-Year High

Carl Icahn scoops up more Apple (AAPL) shares and applies further buyback pressure

by 1/22/2014 4:21:28 PM
Stocks quoted in this article:

"In what seemed almost like a repeat of yesterday, we had another round of earnings reports and major market averages finished in mixed fashion," quipped Schaeffer's Senior Equity Analyst Joe Bell, CMT. "Telecom names and energy stocks both performed quite well, while the materials sector definitely underperformed. Overall, we still seem to be in a consolidation period, as participants digest the slew of earnings reports." The Dow Jones Industrial Average (DJI) finished lower on the day once again, underperforming its index peers.

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The Dow Jones Industrial Average (DJI - 16,373.34) spent its day in the red, ultimately closing 41.1 points, or 0.3%, lower. Eleven of the Dow's components closed higher, led by The Boeing Company's (NYSE:BA) 1.9% gain. Pacing the 19 laggards was International Business Machines Corp. (NYSE:IBM), which suffered an earnings-induced drop of 3.3%.

The S&P 500 Index (SPX - 1,844.86) inched higher on the day, closing up 1.1 points, or almost 0.1%. The Nasdaq Composite (COMP - 4,243.00) was the day's outperformer, gaining 17.2 points, or 0.4%, and notching its highest close since July 2000.

The CBOE Volatility Index (VIX - 12.84) spent a healthy chunk of Wednesday's session in positive territory, but closed fractionally lower, off less than 0.1 point, or 0.2%.

CLOSING SUMMARY – INDICES

CLOSING SUMMARY – NYSE AND NASDAQ

5 Items on Our Radar Today:

  1. International Business Machines Corp. (NYSE:IBM) announced fourth-quarter earnings that exceeded expectations, but sales figures missed the mark. This was the fourth consecutive quarter that revenue has not been in line with analysts' estimates. (CNBC)
  2. Offering another vote of confidence in the iPad parent, activist investor Carl Icahn lifted his stake in Apple Inc. (NASDAQ:AAPL) to $500 million. Icahn continues to apply pressure to Apple executives in hopes of increasing the company's buyback plan. (CNNMoney)
  3. Tesla Motors Inc (NASDAQ:TSLA) speculators hit the options pits today, focusing on very short-term bullish bets.
  4. After its turn in the earnings confessional, Advanced Micro Devices, Inc. (NYSE:AMD) suffered a pair of price-target reductions.
  5. SunPower Corporation (NASDAQ:SPWR) remains popular among option bears and short sellers, despite its impressive showing on the charts.
EARNINGS

For a look at today's options movers and commodities activity, head to page 2.

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