Closing bell: Bears win, non-recession GDP fails to impress

Posted Jul 31st 2008 4:02PM by Jon Ogg
Filed under: Motorola (MOT), Exxon Mobil (XOM), Akamai Technologies (AKAM)

You could have tossed a coin today and come up with the same predictions for if the market was going to close up or down. The 1.9% GDP report was lighter than the 2.2% estimates, but despite feeling like a recession, it isn't formally a recession. Equities headed south as did oil prices by more than $2.00 per barrel. Investors chose to focus on the bad data today and take profits. The bears came roaring back by the close.

Here are today's unofficial closing bell levels:

DJIA 11373.38 (-212.91)
S&P500 1266.96 (-17.30)
NASDAQ 2325.55 (-4.17)
10YR T-NOTE 3.979% (-0.069%)
KEY ANALYST DOWNGRADES

Akamai Technologies Inc. (NASDAQ: AKAM) was today's big loser in tech, media, telecom. The company beat estimates last night but guidance was a few percentage points light and the investment community still demands growth here. Shares were down by 26% to a new 52-week low at $23.10 in the final minutes.

Exxon Mobil Inc. (NYSE: XOM) was one of the ill omens this morning for trading. Imagine making well over $10 billion in earnings on way over $100 billion in revenues (in a quarter rather than a lifetime) and seeing your stock FALL! Yep, shares were down over 4% in today's final minutes at $80.74.

First Solar Inc. (NASDAQ: FSLR) blew the doors off the house with $0.85 EPS vs. $0.58 estimates and raised guidance. Shares are up 6% pre-market and were up 10% last night, but by today's final minutes we saw only a 0.6% gain to $286.50.

ImClone Systems Inc. (NASDAQ: IMCL) rose sharply as Bristol-Myers sent Carl Icahn (chairman) a letter with an offer to acquire the company for some $60.00 per share. Investors are hoping a higher bid is ultimately made as shares were up in the final minutes by 37% at $63.81.

Motorola Inc. (NYSE: MOT) announced that it essentially broke even versus loss expectations and it also sees break-even to $0.02 EPS next quarter vs. $0.01 estimates. It also sees 2008 finishing up at $0.06 to $0.08 EPS from operations vs. estimates of about $0.02. In short, things are just less crummy than everyone who threw in the towel thought. Shares rose over 12% to $8.63 in the final minutes. Don't worry if you really dislike it though, because the cell phone unit break-off may take a year, and investors still don't seem to like the company.

Tags: akamai, exxon, first solar, FirstSolar, imclone, imclone systems, ImcloneSystems