After Market: An Off Day for Stocks, and Also for Troubled GM

Date: Jun 30 2014

Filed under: General Motors, Market News, Stock Markets, Investing

The Dow and the S&P 500 took a bit of a breather in their upward climb Monday, and General Motors shares took a break from trading at all after the automaker announced yet another set of recalls.

General Motors (GM) shares were halted temporarily after announcing 6 new recalls that impact 7.6 million vehicles in the U.S. Shares ended the day about 1 percent lower.

As for the broader markets, the Dow Jones industrial average (^DJI) closed 26 points lower, and the Standard & Poor’s 500 index (^GPSC) lost almost 1 point, but the Nasdaq composite (^IXIC) gained 10 points.

Home builders got another boost on signs the housing market is heating up. Contracts to buy existing homes rose 6.1 percent in May — their highest monthly jump since April 2010. D.R. Horton (DHI) gained 3 percent, Lennar (LEN) was up almost 1 percent, and Toll Brothers (TOL) gained more than 1 percent.

Camera-maker GoPro (GPRO) had another stellar day rising 13 percent. It’s been up every day since going public last Thursday.

Micron Technology (MU) was up yet again. This time rising 4.5 percent after Credit Suisse (CS) added the chipmaker to its “Focus List.” The stock is among the top gainers on the S&P 500 this year, having risen 51 percent.

Yahoo (YHOO) also was a winner too, up 2.5 percent on an upgrade from Piper Jaffray.

Data storage firm NetApp (NTAP) got a 3 percent bump after Standpoint Research began coverage of the stock giving it a buy rating and a price target of $48 a share.

News reports revealing activist investor Nelson Peltz has amassed a $1 billion stake in Bank of New York Mellon (BK) caused that stock to gain 3.5 percent. The hope is that he will instigate changes at the bank, which has been struggling with rising expenses.

Another big gainer on the day was MannKind (MNKD). After an almost decade-long pursuit, its inhaled insulin drug, Afrezza, has just gotten FDA approval for sale in the U.S. The stock was up 9.5 percent.

Allergan sold off (AGN) despite getting FDA approval for a drug that fights diabetic macular edema. Its migraine drug was rejected yet again though, and the stock was down more than 2.5 percent.

Also on the losing side was American Apparel (APP). Already a penny stock, shares slid more than 4 percent on the first day of trading since the retailer adopted a poison pill in an attempt to keep ousted founder Dov Charney from seizing the company.

–Produced by Karina Huber.

What to Watch Tuesday:

  • At 10 a.m. Eastern time, the Institute for Supply Management releases its purchasing managers index for June, and the Commerce Department reports construction spending for May.

These major companies are scheduled to release quarterly financial results.

  • Acuity Brands (AYI)
  • Paychex (PAYX)

 

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