Let’s see if we have this right: Bad news on the economic front, in the form of a weaker-than-expected GDP report from the Commerce Department, lifted the stock market higher.
Yes indeed, that’s correct: Investors took the news as as sign that the Fed would hold off any move to “taper” its easing policy, and the result was a second straight day of broad gains.
The Dow Jones Industrial Average led the way, rising 1.02% to close at 14910.40, with all but two components up on the day. The S&P 500 rose 0.96% to 1503.26, while the Nasdaq managed to gain 0.85% to close at 3376.22.
In sector news, gold prices fell to a 34-month low of just over $1,223 an ounce, and gold mining companies saw shares fell. Barrick Gold (, -8.26%), Goldcorp (, -4.65%) and Yamana Gold (, -4.60%) were all down on the day. The SPDR Gold Shares Trust ETF ( lost more than 4% and is now down 27% year-to-date.
In corporate news, shares of internet radio provider Pandora () rose more than 8% after Cowan
upgraded the company shares to “outperform”.
Apollo Group (), which owns for-profit University of Phoenix, slid more than 10% after reporting disappointing quarterly profits. Sector mate and competitor Strayer () slid a bit more than 3% on the news.
Shares of gun manufacturer Smith & Wesson () lost more than 2% despite issuing earnings and sales guidance well above forecasts, and indicating it can’t fill demand.
Consumer foods product giant General Mills () slid just under 1% after reporting earnings in line with estimates but providing weak guidance on results for the remainder of the year.
Three Up
- Himax Technologies (): Up 11.20% (55 cents) to $5.46
- Sunpower (): Up 7.33% ($1.39) to $20.29
- Brocade (): Up 6.20% (33 cents) to $5.65
Three Down
- Walter Energy (): Down 11.54% ($1.31) to $10.04
- Silver Wheaton (): Down 7.73% ($1.49) to $17.78
- Five Below (): Down 6.34% ($2.42) to $35.78
Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he did not hold a position in any of the aforementioned securities.
