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Why Apple, D.R. Horton, and VASCO Data Security International Jumped Today

Dan Caplinger
April 24, 2014

The stock market closed Thursday with minimal changes, with the Dow actually finishing exactly flat on the session, suggesting a quiet day on Wall Street. Yet, nothing could be further from the truth, as dozens of companies reported their earnings results and sent stocks higher or lower by large margins. Among the winners on the day were Apple (NASDAQ: AAPL), D.R. Horton (NYSE: DHI), and VASCO Data Security International (NASDAQ: VDSI), all of which scored major gains thanks to positive news on the earnings front.

Apple jumped more than 8% as the tech giant released impressive quarterly results, as well as announcing a number of stock and capital-related initiatives. iPad sales were lower than investors had wanted to see, but iPhone sales topped estimates by about 5.25 million, with Apple selling 43.7 million iPhones during the quarter, helping to expand gross margins. Apple also said it would add $30 billion to its stock buyback, raise its dividend by 8%, and do a seven-for-one stock split. By having boosted the amount of capital it returns to shareholders, Apple's cash balance actually fell from the previous quarter. The combination of solid results and shareholder-value-enhancing moves showed that Apple has been responsive to criticism from activist investors; yet, the one thing still missing is a concrete vision of what new products will lead Apple into the future.