Equities Update: Only Nasdaq Salvages Gains

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Includes: BBY, CRBL, DIA, KR, QQQ, SPY
by: Midnight Trader

4:11 PM, Sep 14, 2010 --

  • NYSE up 5.93 (+0.1%) to 7,162.05
  • DJIA down 17.64 (-0.2%) to 10,526
  • S&P 500 down 0.80 (-0.1%) to 1,121
  • Nasdaq up 4 (+0.18%) to 2,290


GLOBAL SENTIMENT

  • Hang Seng up 0.17%
  • Nikkei down 0.24%
  • FTSE up 0.03%


UPSIDE MOVERS


(+) BBY beats with earnings though sales miss, raises guidance.

(+) ANX reports positive 12-month stability data results for ANX-530.

(+) HOLX upgraded.

(+) GNVC achieves first milestone in Novartis pact.

(+) POWI continues evening decline that followed revenue warning.

(+) MSFT down on Bloomberg report that debt sale may be announced to fund dividends, buybacks.

DOWNSIDE MOVERS


(-) NOK gives back some of early-week gains as Chairman targets 2012 departure, product show underway.

(-) ICGN halts study enrollment.

(-) GMCR makes another acquisition.

(-) AVNR says Phase III STAR Trial results published in neurology journal.

MARKET DIRECTION


Stocks closed a choppy session on either side of the even line, losing a late modest bid that looked like it might allow Wall Street to extend a four-day win streak. Improved information on the retail front proved at least modestly supportive to Wall Street, easing investors' concern somewhat about the possibility of a double-dip recession.

New data showed August retail sales rose 0.4%, about in line with expectations. Sales, ex-autos, rose 0.6%, slightly better than expected. Core retail sales, which strip out autos, gasoline and building materials, rose 0.6% in August. This was also the highest since March.

Several consumer names reported upbeat earnings today.

Best Buy (NYSE:BBY) was an active gainer on news Q2 sales were $11.339 billion, below the Thomson Reuters mean for $11.53924 billion. It earned $0.60 per share, above forecasts for $0.44. It raised FY EPS guidance to $3.55 to $3.70, above forecasts for $3.36.

Cracker Barrel Old Country Store (NASDAQ:CBRL) continued its after-hours advance seen after the restaurant group reported fourth quarter earnings that beat expectations. The company posted a profit of $27.4 million, or $1.14 a share, up from $22.8 million, or 99 cents a share, a year ago. Revenue rose 2.8% to $612.5 million. Analysts polled by Thomson Reuters had expected earnings of $1.12 on revenue of $611 million. Looking ahead, Cracker Barrel sees earnings of $3.95 to $4.10 per share in the new fiscal year on revenue growth of 3% to 4.5% from $2.4 billion in the latest year.

Also, Kroger (NYSE:KR) gained after the supermarket group reported second quarter results that beat expectations. The company posted net income of $261.6 million, or 41 cents a share, up from $254.4 million, or 39 cents a share, a year ago. Sales rose to $18.8 billion from $17.7 billion. Analysts polled by FactSet Research had expected earnings of 31 cents a share on sales of $18.7 billion.

Other economic data was mostly positive. New data showed that confidence among U.S. small businesses rose in August for the first time in three months, Bloomberg reported. The National Federation of Independent Business's optimism index rose to 88.8 from July's 88.1 reading.

Inventories at U.S. businesses rose 1.0% in July, the Commerce Department said this morning. The figure topped economists' expectations and was faster than the 0.7% increase in sales. The inventory-to-sales ratio, an indication of demand, remained at 1.26 for the second consecutive month. It was at 1.35 a year ago.

Economists had been expecting the nation's inventories to rise about 0.7% in July. One new piece of information was retail inventories, which rose 0.7% in July compared with a 0.3% increase in sales. The inventory-to-sales ratio in retail rose to 1.38 in July from 1.37 in June. It was at 1.42 a year ago, according to MarketWatch.

Oil futures close lower as the surging market met with at least some short-term resistance near $78 a barrel.