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Market Wrap: EU Nears Recession, Misses; Kors' Chic Report; Green Mountain Gets Nervous; Hedge Funds Report

August 14, 2012 5:46 PM EDT Send to a Friend
Market wrap-up for August 14th

End of the Day: Dow Jones up 2.7 to 13,172.14; S&P 500 down 0.2 to 1,403.93; Nasdaq down 5.5 to 3,016.98

The following is a brief summary of events moving markets today:
  • One more and there could be trouble: Data from Eurostat Tuesday showed GDP in the euro-area and EU shrank 0.2 percent in the second quarter, from a flat result in the first. Recession in the area would be GDP shrinking by two consecutive quarters. Eurostat noted that, "compared with the same quarter of the previous year, seasonally adjusted GDP fell by 0.4% in the euro area and by 0.2% in the EU27 in the second quarter of 2012, after 0.0% and +0.1% respectively in the previous quarter."

    Germany and France helped to stave off the recession, with Germany posting a better than expected gain of 0.3 percent while France recorded a modest contraction.

  • Losing steam: Green Mountain Coffee Roasters (Nasdaq: GMCR) investors got a late-session jolt, with shares closing over 6.6 percent lower on the session. On the company's conference call, CEO Larry Blanford said the company was working on tiered pricing to combat the upcoming patent expiration in September. Blanford also noted that Green Mountain will consume all its free-cash flow and more as it looks to build inventory into the holiday season.

  • EPS beats are always in style: Michael Kors Holdings (NYSE: KORS) had a great session Tuesday, with shares closing near $50 per share following first-quarter 2013 results. Revs improved 71 percent with a 37.3 percent gain in comps. Guidance for the retailer also came in ahead of expectations.

  • Hedging through the second quarter: Most of the notable hedge funds and Warren Buffett disclosed holdings with 13F filings for Q212 today. To get a complete rundown and see some of the more notable moves from such names as Pershing Square, Appaloosa, Lone Pine, Soros, and more, click here.

  • Behold! A software glitch!: Knight Capital (NYSE: KCG) ended the session on a high note Tuesday, as more information behind the $440 million trading loss came to light. Knight said that a software glitch was triggered when new programming caused old software to multiply trading orders by one thousand. The error wasn't caught until 45 minutes later, leaving a large mess on Knight's hands.
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