Dear Valued Visitor,

We have noticed that you are using an ad blocker software.

Although advertisements on the web pages may degrade your experience, our business certainly depends on them and we can only keep providing you high-quality research based articles as long as we can display ads on our pages.

To view this article, you can disable your ad blocker and refresh this page or simply login.

We only allow registered users to use ad blockers. You can sign up for free by clicking here or you can login if you are already a member.

Why the Dow Rebounded 99 Points Today: Zynga Inc (ZNGA), International Business Machines Corp. (IBM)

In the midst of earnings season, the Dow Jones Industrial Average (INDEXDJX:.DJI), which fell nearly 130 points yesterday, made back much of yesterday’s losses. Impressive corporate results, combined with positive sentiment resulting from the private equity buyout of PC mainstay Dell Inc. (NASDAQ:DELL), resulted in today’s 99 point, or 0.71%, surge, which left the index at 13,979.

Bank of America Corp (NYSE:BAC) , one of the more volatile stocks in the blue-chip index, remained true to form Tuesday, bouncing 3.5% higher to earn its spot as one of the Dow’s top performers. Positive economic numbers, mainly the Institute of Supply Management’s release — detailing a 37th consecutive month of service sector expansion — helped shares of the bank rally today.

Zynga Inc (NASDAQ:ZNGA)

On the losing side of things, International Business Machines Corp. (NYSE:IBM) was one of only two decliners in the blue-chip index, as shares declined 0.5%. Investors weren’t impressed by Big Blue’s announcement that it would be issuing $2 billion in floating-rate debt. The big news with Dell today may also be partly responsible. As a private company, Dell might be able to compete in ways it was previously unable to as a public company.

Shares in the online gaming company Zynga Inc (NASDAQ:ZNGA) gained 7% ahead of its earnings report, which ended up driving the stock up even higher. It tacked on as much as 8% after hours as CEO Mark Pincus’ October strategy of laying off staff and buying back $200 million worth of its own stock seemed to pay off.

Finally, shares of Chinese search engine Baidu.com, Inc. (NASDAQ:BIDU) dropped 10.1% today, even after a blowout quarter where revenue rose more than 40% and profits jumped 36%. The results, which exceeded estimates, were not the issue. Investors appeared to worry that the company’s first-quarter revenue guidance of $945 million fell well short of the nearly $970 million analysts expected.

The article Why the Dow Rebounded 99 Points Today originally appeared on Fool.com and is written by John Divine.

Fool contributor John Divine has no position in any stocks mentioned. You can follow him on Twitter @divinebizkid and on Motley Fool CAPS @TMFDivine.The Motley Fool recommends Baidu. The Motley Fool owns shares of Baidu, Bank of America, and IBM.

Copyright © 1995 – 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Loading...