After a strong first quarter it seems investors let their guard down and received a counter punch from Europe. Once again dominating the headlines, Europe’s inability to contain its sovereign debt issues went political over the weekend. Sarkozy will face the Socialist candidate in a runoff election on May 6 in what will be an uphill battle for the incumbent Sarkozy. Toss in the Dutch political upheaval today and it is safe to say Europe has some issues.
Domestically, Wal Mart is being rocked by a bribery scandal that could lead to massive fines stateside. The scandal involves their Mexican subsidiary and bribes made to build stores throughout the country.
In commodities, gold snapped its 2 session winning streak on the news out of Europe and China. In the short-term any contraction in economic activity would send gold prices down before investors jump back in as a safe haven from global contagion.
The Dow ended the day down 102 to 12,927. The Nasdaq and S&P 500 both dropped 30 and 12 points respectively.
Stocks to Watch
Align Technology Inc. (NASDAQ:ALGN) is up 13.30% in after hours trading at $31.09. ALGN announced first quarter earnings after market close today. Net revenue increased 28.8% year over year to $135.1 million. Align Technology closed regular trading down slightly at $27.44 with over a million shares traded. The company has a market cap of 2.18 billion.
Texas Instruments inc. (NASDAQ:TXN) is up 2.54% in after hours at $32.78. TXN shares are rallying this afternoon after earnings beat analysts’ estimates. Texas Instruments reported earnings of $0.32 per share, beating estimates of $0.29 per share. The company has a market cap of 36.51 billion.
Rent-A-Center Inc. (NASDAQ:RCII) is up 3.52% in after hours trading at $37.95. RCII shares are trading higher on quarter earnings. Revenue for the quarter jumped $93.1 million to $835.3 million. Earnings per diluted share came in at $0.87 per share. The company has a market cap of 2.17 billion.
Barnes & Noble, Inc. (NYSE:BKS) is up 1.79% in after hours trading at $13.65. BKS shares jumped more than 18% in normal trading today on 4.8 million shares in volume. Barnes & Noble stock jumped today after a hedge fund bought a large stake in the company. The company has a market cap of 779.44 million.
Netflix, Inc. (NASDAQ:NFLX) is down 15.26% in after hours trading at $86.39. NFLX shares are getting destroyed in after hours as investors react negatively to earnings released shortly after market close. Netflix beat expectations, but investors are concerned about the company’s subscriber numbers. The company has a market cap of 5.64 billion.
Chesapeake Energy Corporation (NYSE:CHK) is down 1.21% in after hours trading at $17.78. CHK shares are down slightly as reports that the company’s CEO sold well stakes as his company was divesting from the same properties. CHK shares are down more than $1 a share over the past week. The company has a market cap of 11.52 billion.