This Day On The Street
Continue to site
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 Stumble on Weak Retail Results; GM Slides on Recall Charges

NEW YORK (TheStreet) -- U.S. markets stumbled on Tuesday after disappointing earnings from Staples (SPLS) and Urban Outfitters (URBN). Small caps relinquished Monday's gains, shedding 1.4% amid a cautious backdrop.

  • The Dow Jones Industrial Average was off 0.83% to 16,374.31, while the S&P 500 was 0.65% lower to 1,872.83. The Nasdaq dropped 0.7% to 4,096.89.
  • Home Depot (HD) was 1.9% higher after reporting first-quarter earnings of $1 a share, topping estimates by just a penny, as sales came in at $19.70 billion. That trailed the consensus revenue estimate of $19.95 billion.
  • Staples plunged 12.6% after posting quarterly earnings per share that missed estimates by 3 cents at 18 cents with revenue falling 3% to $5.65 billion. Analysts, on average, were expecting sales of $5.61 billion.
  • Urban Outfitters dipped 8.8% after missing analysts' expectations in its April-ended first quarter.
  • Drug developer Ophthotech (OPHT) jumped 24.5% after granting Novartis (NVS) exclusive rights to commercialize one of its treatment outside the U.S.
  • In other companies news, Credit Suisse (CS) climbed 0.93% after agreeing to pay a $2.5 billion fine to U.S.authorities for helping Americans evade taxes.
  • GoPro, the maker of durable digital cameras that can be used to capture adventure sports, filed for an initial public offering on Monday with a $100 million placeholder. The company, which reported nearly $1 billion in 2013 revenue, will look to list its shares on Nasdaq under ticker "GPRO." 
  • GM (GM - Get Report) declined 3.5% after it said it would recall another 2.42 million vehicles in the U.S. and that charges associated with recall-related repairs are expected to tally up to $400 million in the second quarter.
  • Key "new tech" stocks were mixed: Netflix (NFLX) and Amazon (AMZN) gained 2% and 1.5%, respectively, while Twitter (TWTR - Get Report) was 0.94% lower.
  • International markets were mixed. The DAX closed down 0.21%, the FTSE was off 0.62%, and the Hang Seng finished up 0.57%. The Nikkei broke a four-session losing streak, closing 0.49% higher on the heels of U.S. gains on Monday.
  • U.S. stocks eked out gains Monday as small-cap and tech stocks surged against a backdrop of mixed M&A success, but trading volume was the second lowest on record in 2014 heading into the Memorial Day weekend. Global money managers raised cash holdings to a two-year high this month and said America is the worst place to invest, a recent Bank of America survey showed. This is "a sign of risk aversion and equity bull-run fatigue," noted Howie Lee, an investment analyst at Phillip Futures.

-- By Jane Searle, Andrea Tse and Joe Deaux in New York

European Equities Poised to Outstrip U.S., Say Strategists

Tread Carefully if Trying to Ride India's Rally

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Real Money

More than 30 investing pros with skin in the game give you actionable insight and investment ideas.

Product Features:
  • Access to Jim Cramer's daily blog
  • Intraday commentary and news
  • Real-time trading forums
Only $49.95
14-Days Free
14-Days Free
GM $31.80 0.00%
TWTR $14.62 0.00%
AAPL $93.74 0.00%
FB $118.00 1.10%
GOOG $693.01 0.00%


Chart of I:DJI
DOW 17,773.64 -57.12 -0.32%
S&P 500 2,065.30 -10.51 -0.51%
NASDAQ 4,775.3580 -29.9330 -0.62%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs