After Market: Thursday's Good News Is Monday's Bad News

Before you go, we thought you'd like these...
Before you go close icon

Wall Street took a slight downward turn Monday as it gave further consideration to last month's strong jobs numbers, and airline and Internet stocks lost altitude as well.

Job growth in June was much higher than expected, which bodes well for the economy, but the worry among some investors is that lower unemployment will lead to the Fed raising interest rates sooner than they'd like. The major indices fell after the Dow topped 17,000 last week.

The Dow Jones industrial average (^DJI) dropped 44 points, the tech-heavy Nasdaq composite (^IXIC) slipped 34 points and the Standard & Poor's 500 index (^GPSC) was down 7 points.

Airline stocks continued their descent after selling off last week. Delta (DAL) was down almost 4.5 percent, United-Continental (UAL) dropped more than 3 percent, and Jetblue (JBLU) fell 2.5 percent.

Internet stocks also had a tough day. Facebook (FB) was down 1.5 percent, Twitter (TWTR) dropped 2.5 percent and Amazon (AMZN) was lower by 1 percent.

But two smartphone makers benefited from good news. Apple (AAPL) gained 2 percent on analyst comments that its June sales were likely strong. The company is also expected to release an iPhone 6 and a smartwatch within the next few months.

And Blackberry (BBRY) popped more than 5.5 percent. Its latest model phones won three prestigious design awards. This is a great comeback story. So far the stock is up 39 percent this year.

One of the biggest gainers of the day was GoPro (GPRO), which rallied close to 6 percent in a rebound from last week's slight sell-off.

PetSmart (PETM) was another winner on the day, up 2.5 percent. A regulatory filing revealed the company is looking into ways to return more cash to shareholders.

Another major gainer was food-processing giant Archer Daniels Midland (ADM) up 1.5 percent. It has offered $3 billion to buy Swiss food company WILD Flavors.

In more mergers and acquisitions news, Expedia (EXPE) is seeking to acquire Australian online travel site for $660 million. Expedia was down 1.5 percent.

Chip maker Applied Materials (AMAT) gained slightly on the back of positive analyst comments.

But coal producer Peabody Energy (BTU) was one of the bigger losers on the day, falling 3.5 percent on a downgrade from Deutsche Bank.

-Produced by Karina Huber.

What to Watch Tuesday:
  • The Labor Department releases job openings and labor turnover survey for May at 10 a.m. Eastern time.
  • The Federal Reserve releases consumer credit data for May at 3 p.m.
These major companies are scheduled to release quarterly financial statements:
  • Alcoa (AA)
  • Bob Evans Farms (BOBE)
  • The Container Store (TCS)
The 7 Best Things to Buy in July
See Gallery
After Market: Thursday's Good News Is Monday's Bad News
It's time to hit the thrift stores, consignment shops and furniture outlets. Now that most people have done their spring cleaning and renovating, their used furniture is on the market. That means a hefty supply, plus low prices since stores only have so much space. You can also find discounted new furniture in July, because the next year's models arrive in stores in early August. Don't be afraid to try to negotiate on prices. It often works.
Electronics -- computers and tablets specifically -- see decreases in price starting in early July. These prices continue to drop as the school year gets closer, and best way to stay on top of the hottest deals is to sign up for e-newsletters from retailers. Remember to take advantage of company and educational discounts that may be available to you, and to negotiate for free or discounted accessories.
Bottled water goes on sale throughout July as a lure to get you into stores. it also gets purchased more frequently throughout the summer -- the natural result of barbecue and picnic season, when people entertain and spend more time outdoors. So if you drink bottled water year-round, stock up now.
If you can manage, hold off purchasing your new grill until after the Fourth of July, when mark-downs approach 50 percent off. This applies to grilling accessories, too, including grill baskets and utensils. Also, check consignment shops and thrift stores. Many people buy new grills for the Fourth of July and donate or sell their old ones.
Speaking of grilling, among the hottest buys during July are condiments for burgers and hot dogs: mustard, ketchup, relish, sour cream, sauerkraut, mayonnaise and pickles, etc. Buy in bulk, and pair in-store specials with coupons for super-low prices on these summer must-haves.
If you're in the market for a sweet new pair of jeans, July is the best time to buy them. Few people buy jeans during one of the hottest months of the year, so retailers put them on sale to move them. Stores also get new jeans in the late summer in anticipation of fall shopping season, so they're eager to sell old ones to make room for new duds.
Formal suits are also seldom purchased during the middle of summer. Consequently, many suit retailers will hold sales to keep business moving. If you have an upcoming formal wedding to attend -- or if you simply need new suits for work and special occasions -- July is the best time to buy.
Read Full Story

People are Reading