New Oriental Education & Technology (EDU) stock got hit today after the SEC said they are looking into the validity of the company’s past financial statements. This news led to other Chinese tech stocks getting hit on the news as well. Shares of Baidu (BIDU) fell 2.21% to close at $104.98. SINA (SINA) fell 7% on the day, Youku (YOKU) fell 8%, and Renren (RENN) fell 5%. Getting hit the most was 21Vianet Group (VNET) falling 16.35% to close at $9.36.
The question is does one SEC inquiry into EDU mean these other Chinese companies will get probed as well? Most likely not and this is rather opening up a good time for long term investors to scoop up legitimate companies that are getting hit by panic selling. Best to watch these stocks tomorrow to see if we get a reversal or further panic selling, either way both BIDU and VNET look to be good buys this week.
In the U.S. stocks drifted lower following Helicopter Ben’s press conference (which didn’t offer more stimulus but also didn’t take it off the table, essentially punting), but then stocks rallied after Coca-Cola (KO) and Goldman Sachs (GS) both reported better-than-expected earnings.
Intel (INTC) beat earnings by 2 cents – shares were down nearly 2% in after-hours after slow down in growth year over year, guiding down for next quarter.
CSX (CSX) beat by 3 cents, revenue came in lower – shares flat in after hours.
Yahoo! (YHOO) 4 cent beat, revenue a little shy, in after hours shares were up .96%. Yahoo also just named Marissa Mayer (former Google (GOOG) executive) as their new CEO.
WYNN Resorts (WYNN) – up in after hours 1.13% – EPS missed.
EMC (EMC) climbs 5.80% in after hours after announcing leadership change, shares are now at $24.50.
Facebook (FB) continued its downslide falling .55% to close at $28.09, but off the session lows.
The Dow Jones Industrial average (INDU) rose 78 points. The S&P 500 (SPX) climbed 10 points. And the Nasdaq (COMP) added 13 points on the day.
Oil gained 79 cents to $89.22 a barrel.
Gold fell $2.10 to close at $1,589.50 an ounce.
The 10-Year Note fell pushing yields up to 1.50%.