The Dow Jones Industrial Average and Standard & Poor’s 500 index ended a positive week on a good note Friday, ahead of the long weekend.
The Dow gained 53.68 points, up 0.39% to 13,649 — its highest close since Dec. 10, 2007. The benchmark rose 1.2% this week. The S&P 500 rose 0.95% this week after finishing up 0.34% Friday to its highest closing level since Dec. 26, 2007. The index is 5.06% off its nominal closing high of 1,565.15, hit on Oct. 9, 2007.
Two stocks that had a rough week were Monster Beverage (MNST) and Capital One Financial (COF), which fell 6.1% in the past five sessions and 4.1% today.
As the six-month chart shows, Monster is a volatile stock (apologies for the missing dates); much of that is due to the occasional scare that its energy drinks will fall afoul of regulators (and subsequent relief when that doesn’t happen). Today’s drop came partly on the back of such worries, with one Congressman and two Senators sending letters to Monster and 13 other energy drink makers asking them to justify their claims and disclose more information.
But as Mike Esterl reports, there may be another reason:
Analysts cited market speculation and Twitter chatter that hedge-fund manager David Einhorn at Greenlight Capital Inc. might be short Monster’s shares, heightening volatility in the stock. Greenlight declined to comment through a spokesman.
Is the world ready for another hedge-fund titan-induced stock drop so soon after the Bill Ackman-Herbalife (HLF) shenanigans?
Capital One shares ended the day down 7.5% for an 8.1% weekly decline. Investors were evidently deeply unimpressed by the lender’s financial results, with loan losses and expenses increasing. Analysts at Janney Capital downgraded Capital One’s stock to Neutral in the wake of the earnings, and other firms also reacted negatively:
Jefferies cut its price target on Capital One to $67 from $70 but maintained its �buy� rating, while KBW lowered its outlook on the bank�s share price to $65 from $70 on an �outperform� rating.
Credit Suisse lowered Capital One�s price target to $62 from $67 and kept its �neutral� rating, while FBR narrowed the price target to $68 from $72 on an �outperform� rating.
Other brokerages to lower their price target estimates on Capital One included Bernstein, Guggenheim, Nomura and Susquehanna.
(Note, though, that Susquehanna upgraded the stock from Neutral to Positive.)
Stocks that ended the week on a high included Morgan Stanley (MS), up 7.9% today for a weekly gain of 11% in the wake of results that suggest better days are ahead for the Wall Street bank, and Tenet Healthcare (THC), which rose 2.5% Friday and 10.9% this week to close at a five-year high.
Tenet was one of five healthcare companies that hit at least a 52-week high today, joined by HCA Holdings (HCA), Universal Health Services (UHS), Community Health Systems (CYH) and Health Management Associates (HMA).
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