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Dow Jones Today, July 29, 2014: U.S. markets were mixed Tuesday, with Europe and the United States expanding sanctions against Russian interests and sales of new single family homes dipping in May. This afternoon, the International Monetary Fund warned that rising inflation rates and sliding emerging market growth could slash up to 2% of global growth over the next five years.
Here's the scorecard from today's trading session:
Dow: 16,913.72, -68.87 (-0.41%)
Nasdaq: 4,442.70, -2.21 (-0.05%)
S&P 500: 1.969.95, -8.96 (-0.45%)
Now, here are the top stories from today:
- Twitter Earnings Beat: Shares of Twitter Inc. (NYSE: TWTR) were up more than 1.75% this afternoon in advance of the company reporting earnings after the bell – and then they soared more than 35% after hours on surprisingly optimistic numbers in TWTR's release. Twitter's revenue soared to $312.2 million and reported an adjusted profit of $0.02 per share (but a $0.24 per share loss unadjusted). In the same period last year, the company lost $0.12 per share with sales of $139.3 million. The biggest number making TWTR investors happy: user growth (it's soaring!). Here are all the TWTR earnings details you need.
- Transportation Troubles: Shares of United Parcel Service Inc. (NYSE: UPS) dragged down the transportation sector after the company slashed its 2014 growth outlook and reported lackluster second-quarter earnings. The company said profit margins were vulnerable after it boosted spending to increase capacity. Shares dipped 3.7% on the day. Shares of rival FedEx Corp. (NYSE: FDX) slipped more than 1% on the day. FedEx remains under investigation for transporting illegal pharmaceutical drugs from two online pharmacies and announced it had retained the lawyers of former Major League Baseball star Barry Bonds to defend it in court.
- IPO Backtrack: Shares of El Pollo LoCo Holdings Inc. (Nasdaq: LOCO) slipped more than 13% on the day. However, the stock still remains almost 100% higher than its initial public offering price of $15 per share when it was listed last week. Today's other big losers included GrafTech International Ltd. (NYSE: GTI), down 12%; Oshkosh Corp. (NYSE: OSK), down 13%; and Bill Ackman's shorting target Herbalife Ltd. (NYSE: HLF), down 13% on poor second-quarter earnings.
- GameStop Stopped: Shares of GameStop Corp. (NYSE: GME) slumped more than 5.5% on news that two gaming companies are planning to shift business away from in-store retail. Gaming designer Electronic Arts Inc. (Nasdaq: EA) will team up with Microsoft Corp. (Nasdaq: MSFT) to allow Xbox platform owners to play EA's games through monthly or annual subscriptions. Shares of EA slipped 2% on the day, but the deal will help software companies reduce inventory costs and provide direct-to-customer sales through Xbox platforms.
- Big Winner: Shares of Windstream Holdings Inc. (Nasdaq: WIN) surged 12% today on news that the company would spin off a division of its telecommunications network as a publicly traded real estate investment trust (REIT). The REIT will consist of Windstream's existing fiber and copper network and other fixed real estate assets.
- Merger on Hold: According to multiple reports, the highly anticipated merger between telecom giants Sprint Corp. (NYSE: S) and T-Mobile US Inc. (NYSE: TMUS) will be delayed until at least after Labor Day. Both firms are in the process of presenting their case to U.S. regulators. The deal would combine the third- and fourth-largest telecom companies in the nation. Sprint will report second-quarter earnings tomorrow before the morning bell.
Now our experts share some of the most important investment moves to make based on today's market trading – for Money Morning Members only:
About the Author
Garrett Baldwin is a globally recognized research economist, financial writer, and consultant with degrees from Northwestern, Johns Hopkins, Purdue, and Indiana University. He is a seasoned financial and political risk analyst, with a focus on stocks, hedge funds, private equity, blockchain, and housing policy. He has conducted risk assessment projects for clients in 27 countries, and consulted on policy and financial operations for some of the nation's largest financial institutions, including a $1.5 trillion credit fund, a $43 billion credit and auto loan giant, as well as two of the largest Wall Street banks by assets under management.
Garrett joined Money Map Press as an economist and researcher in 2011, specializing in alternative strategies with an emphasis on fundamental and technical analysis.