Hot Stock Minute

Stocks recover from Thursday's decline and refocus on earnings

Investors shrugged off geopolitical concerns that weighed on the markets on Thursday, and instead turned their attention to corporate earnings once again. The Dow (^DJI) gained 123 points to close at 17,100, recovering three-quarters of Thursday's losses. The Nasdaq (^IXIC) rose 69 points to 4,432 and the S&P 500 (^GSPC) rose 20 points to 1,978. 

A couple of economic reports didn’t seem to faze Wall Street either. The Thomson Reuters/University of Michigan’s initial July reading on consumer sentiment came in at 81.3, below estimates and lower than June’s final read of 82.5. Meanwhile, U.S. economic activity continued to improve at a moderate pace last month. The Conference Board’s index of leading indicators rose in 0.3% June, but that was lower than forecasts.

Earnings remained very much in focus. Google (GOOGL) shares closed $24 higher at $605.11 after it reported a 22% jump in revenue, but missed on earnings. IBM (IBM) shares gained a penny to close at $192.50 after it reported earnings and revenue that topped estimates, but its sales fell for the ninth straight quarter on weakening demand for hardware and computer services.

General Electric (GE) shares closed 15 cents lower at $26.46. The industrial conglomerate reported earnings that matched estimates, but revenue was slightly below expectations.

AbbVie (ABBV) was finally able to convince Shire (SHPG) to tie the knot after four failed attempts. The $54 billion merger will allow AbbVie to incorpate in the U.K. in a tax inversion move that will lower the company's corporate taxes. Shire closed $3.56 higher at $257, while Abbvie, who reports earnings on Monday, finished the day $1.39 higher at $54.91.

Investors welcomed three companies that made their Wall Street debut today. Biopharmaceutical firm Sage Therapeutics (SAGE) soared 67% from its IPO price at $18 a share and closed at $30.10. Video and ad technology company TubeMogul (TUBE) surged 64% from its IPO price to close at $11.50, up $4.50. And  TerraForm Power (TERP), a spin-off of SunEdison, which operates solar projects rose 32% from its IPO price of $25 a share, ending at $33.09, up $8.09.

Earnings will continue to dominate the scene on Wall Street next week. Netfix (NFLX), Hasbro (HAS) and Texas Instruments (TXN) are just a few of the companies set to report results on Monday.

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