Stocks soared on the day after European Central Bank (ECB) President Mario Draghi promised that the ECB would "do whatever it takes to preserve the euro," adding, "believe me, it will be enough." The unquantified promise was enough for a market that had been reeling over concerns about the EU, particularly Spain. That's not the best reason for a rally, and the generally weak earnings this quarter remain a concern.
The Data Centers, Colocation, and Content Distribution Network Stocks Index was the top performing tickerspy Index on the day, led by Akamai Technologies (AKAM) with a 24% gain. The Photographic Equipment Stocks Index was the day's worst performing tickerspy Index, with Imax (IMAX) down -5%.
Stocks jumped on the day, with the Dow soaring 212 points to 12,888. The S&P surged 22 points to 1,360, while the Nasdaq climbed 39 points to 2,893. Oil rose 42 cents to $89.39 a barrel, while gold advanced $7.00 to $1615.10 an ounce.
In economic news, weekly jobless claims fell by -35,000 to 350,000 last week, better than the 381,000 claims expected by economists. Elsewhere, the Commerce Department said durable goods orders rose by 1.6% in June, and May durable goods orders were revised higher to an increase of 1.6% from an initial gain of 1.3%. Excluding transportation orders, the June reading showed a decline of -1.1%. The National Association of Realtors, meanwhile, said its pending home sales index fell -1.4% in June, but the index is still up 9.5% from June 2011.
In earnings news, shares of Whole Foods Market (WFM) surged 11.3% after the company raised its full-year guidance to $2.51-$2.52 a share from $2.44-$2.47. Analysts were expecting a profit of $2.46 a share. The company expects same-store sales to increase 6.5%-8.5%. Whole Foods forecast a 2013 profit of $2.83-$2.87 a share, which bracketed the $2.84 consensus. For its fiscal third quarter, the high-end grocer reported a profit of $116.8 million, or 63 cents per share, up from $88.5 million, or 50 cents per share, a year earlier. Revenue climbed to $2.7 billion from $2.4 billion as same-store sales jumped 8.2%. Analysts had been expecting EPS of 61 cents. Nearly 20 pros held Whole Foods in their portfolios at the end of Q2 and almost 470 tickerspy members own the stock in their portfolios.
Online photo processor Shutterfly (SFLY) said its second-quarter loss widened to -$9.5 million, or -27 cents per share, from a loss of -$3.7 million, or -11 cents a share, a year earlier. Revenue, however, soared 31% to $99 million. Analysts had expected a loss of -34 cents on revenue of $92 million. The company forecast a third-quarter loss of -41 to -44 cents a share on revenue of $89.5-$91.5 million. Analysts were expecting a loss of -35 cents on revenue of $92 million. Shutterfly expects a full-year profit of 11-21 cents a share on revenue of $582-$592 million. Shares rose 4.7%.
Shares of online game maker Zynga (ZNGA) plunged 37.5% after the company pared its 2012 EPS outlook to 4-9 cents a share from 23-29 cents. The company reported a second-quarter loss of -$22.8 million, or -3 cents a share, compared with a profit of $1.4 million a year earlier. Revenue came in at $332.4 million. On an adjusted basis, Zynga earned a penny a share. Analysts had expected a profit of 5 cents on revenue of $344.1 million.
Akamai shares surged 24.0% after the content delivery firm reported a second-quarter profit of $44.2 million, or 24 cents per share, compared with $47.9 million, or 25 cents per share, a year earlier. Revenue increased to $331 million from $277 million. On an adjusted basis, Akamai earned 43 cents. Analysts had expected a profit of 37 cents on revenue of $326 million. Seventeen pros held Akamai in their portfolios at the end of Q2 and more than 760 tickerspy members own the stock in their portfolios.
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