The market had a constructive day Tuesday, edging cautiously higher after yesterday’s near debacle sparked by S&P’s warnings about a possible future downgrade of US debt. The ratings agency revised outlook on US sovereign debt from stable to negative while keeping its AAA rating intact, and Moody’s, for one, disagreed with the assessment. It seems the market is starting shrug off the warning as well and investors are showing a willingness to buy this dip.
While the market’s climb was slow and cautious, momentum stocks game to life today. Chinese Internet stocks like SINA Corporation (SINA), Sohu.com, Inc. (SOHU), Baidu.com and Youku.com, Inc. (YOKU) continued to lead the market, while a more laggard stock in the group E Commerce China DangDang Inc (DANG) played catchup. Apparel stocks Under Armour, Inc. (UA) and Lululemon Athletica, inc. (LULU) also continued to extend to new highs.
After the bell there were a number of big earnings reports. Here are some highlights:
Intel Corporation (INTC) Reports Q1 $0.59 (adj) v $0.46e, R$12.8B v $11.6Be
-Monster report, stock sharply higher (currently ~5%)
International Business Machines (IBM) Reports Q1 $2.31 v $2.30e, R$24.6B v $24Be
-Narrow beat, stock ticking higher
VMWare, Inc. (VMW) Reports Q1 $0.48 v $0.42e, R$844M v $815Me
-Strong beat, stock sharply higher (currently ~11%)
Wynn Resorts, Limited (WYNN) Reports Q1 $1.38(adj) v $0.74e, R$1.26B v $1.2Be; Doubles dividend to $0.50/share
-Monster report, stock trading higher (currently ~3.5%)
*DISCLOSURE: Scott Redler is long MGM, NFLX, SOHU, AMZN, REDF, GLD, POT, CYD, OIH, , BKS. Short SPY.
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