This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Stocks Finish Mixed; Apple Casts Shadow


NEW YORK (TheStreet) -- Wall Street finished mixed on Tuesday with the Dow pushed higher by positive earnings reports and a dividend hike from IBM (IBM), and the Nasdaq tripped up by weakness in Apple (AAPL).

The market put aside worries about Europe for the day, instead focusing on solid numbers from AT&T (T) and 3M (MMM), as well as Big Blue's plans to boost its quarterly payout by 13% and buy back up to $7 billion worth of its stock.

The Dow Jones Industrial Average rose 74 points, or 0.6%, to close at 13,001. Earlier in the session, the price-weighted index ran as high as 13,050. The S&P 500 tacked on 5 points or 0.4% to finish at 1372.

The Nasdaq slipped 8 points, or 0.3%, to settle at 2961. Apple was a headwind for the index, falling 2%. Shares of the iPad and iPhone maker have now fallen in 10 of the past 11 sessions.

It was a different story after the closing bell though as the stock flew more than 7% higher in the extended session. The iconic company reported fiscal second-quarter earnings of $12.30 a share on revenue of $39.2 billion, trouncing Wall Street's expectations for a profit of $10.04 a share.

The company sold 35.1 million iPhones during the quarter, up 88% from a year ago. The third-quarter outlook looks light however. Apple expects earnings of $8.68 a share in the June-ending period on revenue of $34 billion, below the current consensus view for a profit of $9.93 a share on revenue of $37.45 billion.

Tuesday's economic data was benign with consumer confidence coming in slightly below expectations but new home sales and the Case-Shiller home price index supportive of slow but continuing improvement in the housing market.

Within the Dow, 23 of the index's 30 components finished in the green on Tuesday. Breadth in the broad market was positive as well with winners outpacing the losers by 2 to 1.

The biggest percentage gainer among the blue chips was AT&T, whose shares rose nearly 4%. Before the opening bell, the company easily beat Wall Street's earnings estimate with its performance boosted by strong wireless sales and its smartphone business.

The telecom giant brought in revenue of $31.82 billion, an increase of 1.8% from the same period last year. Analysts surveyed by Thomson Reuters were looking for sales of $31.85 billion. Excluding items, AT&T earned 60 cents a share, up from 57 cents a share in the prior year's quarter and above Wall Street's estimate of 57 cents.

IBM said its board has approved a quarterly cash dividend of 85 cents a share, up from a prior payout of 75 cents a share, payable June 9 to shareholders of record on May 10. The fresh $7 billion addition to its buyback program will bring IBM's total current repurchase authorization to $12.7 billion, and the company said it plans to request more buyback power from the board in October. Shares added 0.6% to close at $200.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,912.11 -70.48 -0.42%
S&P 500 1,969.95 -8.96 -0.45%
NASDAQ 4,442.6980 -2.2110 -0.05%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs