Tag Archives: IWM

What Happened in the Stock Market Today

Stock indexes were up in the morning Thursday, but drifted down during the session, despite advancing issues outnumbering decliners. TheDow Jones Industrial Average (DJINDICES:^DJI)lost about a quarter percentage point, and theS&P 500 (SNPINDEX:^GSPC)closed just barely in the red.

Today’s stock market

Index Percentage Change Point Change
Dow (0.22%) (54.95)
S&P 500 (0.09%) (2.33)

Data source: Yahoo! Finance.

Energy stocks rose on higher crude oil prices; theSPDR S&P Oil & Gas Exploration & Production ETF (NYSEMKT:XOP) jumped 3.1%. Small caps continued their recent upward trend, with theiShares Russell 2000 ETF (NYSEMKT:IWM) rising 0.5%.

As for individual stocks, Walmart (NYSE:WMT) reported first-quarter sales gains, and shares ofCisco Systems (NASDAQ:CSCO) fell after the tech giant gave uninspiring guidance.

People in business attire in front of display of stock prices.

Image source: Getty Images.

Walmart sees strong sales and falling margins

Walmart reported solid sales performance in its fiscal first quarter and managed to beat profit expectations despite rising costs and investments in e-commerce, but shares slumped 1.9%. Sales grew 4.4% — or 2.7% in constant currency terms — to $122.7 billion, compared with the analyst consensus estimate of $120.5 billion. Adjusted earnings per share of $1.14 beat estimates by $0.02, and grew 14% year over year.

Comparable sales in Walmart U.S. stores grew 2.1% with a 0.8% increase in traffic, while Sam’s Club stores had a 3.8% comp gain. Walmart International grew sales by 4.5% in constant currency, and U.S. e-commerce sales grew 33%.

Profits came under pressure, with gross margin falling 23 basis points in the U.S. and 15 basis points overall due to rising transportation and fuel costs and “price investments.” Operating costs as a percentage of sales increased 11 basis points primarily due to investments in e-commerce.

Walmart executives highlighted the investments the company is making in its future. It will increase online grocery pickup by around 1,000 stores this year to more than 2,100 locations in the U.S. It also expects to roll out grocery delivery to 800 stores by year-end, covering 40% of the U.S. population. The company’s most important bet is its acquisition of Indian e-commerce company Flipkart, which it announced last week. Walmart reiterated guidance that the deal will impact this year’s EPS by $0.25 to $0.30.

The earnings report held few surprises, but the good news of decent sales was apparently outweighed by the profit impact of Walmart’s growth initiatives.

Cisco fails to excite investors

Networking giant Cisco Systems announced fiscal third-quarter results that edged out expectations and issued guidance in line with estimates, but that wasn’t enough to inspire shareholders, and the stock fell 3.8%. Revenue increased 4.4% to $12.5 billion and non-GAAP earnings per share jumped 10% to $0.66. Analysts were expecting the company to earn $0.65 per share on $12.4 billion in sales.

Cisco is pushing to grow recurring revenue by moving to a subscription model, and reported some success in that area. Recurring revenue was 32% of the total, which was 2 percentage points above the year-ago result, but less than the 33% reported last quarter. Revenue from the applications segment grew a strong 19% to $1.3 billion, while infrastructure platforms increased 2% to $7.2 billion. Non-GAAP product gross margin fell from 63.2% to 62.9%, primarily due to pricing and higher memory costs.

For the fourth quarter, Cisco forecast revenue growth of 4% to 6% and non-GAAP EPS of between $0.68 and $0.70, compared with $0.61 last year. This was right on the analyst consensus of $0.69 in EPS on sales growth of 5%.

The quarter was decent for Cisco, although not particularly exciting. Investors were evidently hoping for a better outlook, although the stock is still up 15% for the year.

Top 5 Performing Companies To Watch In Right Now

Related TLT How Bond ETF Flows Affect ETF Sponsors Boring Bonds Boost ETF Asset Growth Related IWM Fast Money Picks For March 10 Fast Money Picks For March 8 Financial Risks: ECB Overstimulation (Seeking Alpha)

On Friday, CNBC’s "Fast Money" traders shared three moves to make after Draghi said the European Central Bank would not be boosting rates any further.

Guy Adami recommended the iShares Barclays 20+ Yr Treas.Bond (ETF) (NASDAQ: TLT). Considering what is going on in the world, U.S.’ 10-year bond at 1.8 percent looks “pretty attractive against a landscape of negative interest rates globally,” the analyst commented.

Top 5 Performing Companies To Watch In Right Now: PulteGroup, Inc.(PHM)


PulteGroup, Inc., through its subsidiaries, engages primarily in the homebuilding business in the United States. The company is involved in the acquisition and development of land primarily for residential purposes; and the construction of housing on land. It offers various home designs, including single-family detached houses, townhouses, condominiums, and duplexes under the Pulte Homes, Del Webb, Centex, DiVosta Homes, John Wieland Homes, and Neighborhoods brand names. As of December 31, 2015, the company controlled 138,079 lots, which included 95,919 company owned lots and 42,160 lots under land option agreements. It also arranges financing through the origination of mortgage loans, principally for homebuyers; sells the servicing rights for the originated loans; and provides title insurance policies, and examination and closing services to homebuyers. The company was formerly known as Pulte Homes, Inc. and changed its name to PulteGroup, Inc. in March 2010. PulteGroup, Inc. was founded in 1950 and is headquartered in Atlanta, Georgia.

Advisors’ Opinion:

  • [By Eileen Rojas]

    PulteGroup has high growth expectations
    PulteGroup (NYSE: PHM  ) reported $36 million, or $0.09 per share, of net income for its second quarter ended June 30. Net income included charges for several events that took place in the quarter. In the prior year’s quarter, the company reported net income of $42 million, or $0.11 per share. CEO Richard J. Dugas Jr. believes the housing market is on track to a long-term recovery. He finds that consumers see good value in the market, despite a limited supply of housing inventory, rising prices, and higher interest rates.

  • [By Morgan Housel]

    2. Homebuilders adding to supply. Homebuilders recently discovered something that’s been elusive for years: the ability to raise prices. The balance they now need to strike is how much to ramp up supply versus holding back supply to maximize prices. PulteGroup (NYSE: PHM  ) CEO Richard Dugas said earlier this year: “In a number of communities across the country, demand has been so strong that we have taken action to slow the overall pace of sales.”

  • [By Ben Levisohn]

    Lee offers 22 stocks that could benefit from the correlation trade: Western Digital (WDC), Xerox (XRX), First Solar, Ford Motor, Best Buy (BBY), PulteGroup (PHM), AutoNation (AN), Textron (TXT), Jacobs Engineering Group (JEC), Mosaic, BB&T (BBT), Fifth Third Bancorp (FITB),Loews (L), Regions Financial (RF), KeyCorp (KEY), Comerica (CMA), Leucadia National (LUK), Zions Bancorp (ZION), Valero Energy (VLO), Marathon Oil, Cardinal Health (CAH), and Pepco Holdings (POM).

  • [By CNNMoney Staff]

    Housing stocks were among the biggest winners, with shares of Pulte Group (PHM), DR Horton (DHI), and Lennar (LEN) all up sharply.

    Traders on StockTwits said investors may be betting on the group as Summers’ decision to drop out from the Fed chief race could be good for the housing market. With Treasury yields falling, the hope is that mortgages rates might do the same.

Top 5 Performing Companies To Watch In Right Now: Newmont Mining Corporation(NEM)


Newmont Mining Corporation, together with its subsidiaries, operates in the mining industry. It primarily acquires, develops, explores for, and produces gold, silver, and copper. The companys operations and/or assets are located in the United States, Australia, Peru, Indonesia, Ghana, and Suriname. As of December 31, 2015, it had proven and probable gold reserves of 73.7 million ounces and an aggregate land position of approximately 20,000 square miles. The company was founded in 1916 and is headquartered in Greenwood Village, Colorado.

Advisors’ Opinion:

  • [By Profit Confidential]

    In its second-quarter corporate earnings report, Newmont Mining Corporation (NYSE: NEM), another massive gold producer, said the company reduced its exploration spending by $362 million from the same period in 2012. (Source: Newmont Mining Corporation, July 25, 2013.)

  • [By John Divine]

    Whenever the world looks like it’s not about to crash and burn, the price of gold seems to face headwinds. The precious metal, seen as a safe-haven in uncertain times, often gains in the face of disaster, and with the drums of war ebbing today, so did gold. That means tougher times for gold miners like Newmont Mining (NYSE: NEM  ) , which lost 3.9% Tuesday as gold fell 1.6% to $1,364 an ounce.

  • [By Aubrey Pringle]

    Barrick Gold Corp. dropped 5.5 percent as the precious metal slumped the most since July. Newmont Mining Corp. (NEM), the largest U.S. gold producer, lost 4.2 percent. Lululemon Athletica Inc. (LULU) tumbled 5.4 percent after cutting its earnings forecast. Walt Disney Co. rallied 2.4 percent after saying it would buy back as much as $8 billion in shares. Pandora Media Inc. jumped 12 percent to a record after naming digital-advertising veteran Brian McAndrews as its new chief executive officer.

  • [By Nelson Hem]

    Wall Street doesn't seem too hopeful, judging by the consensus earnings estimates for Barrick Gold Corporation (NYSE: ABX) and Newmont Mining Corp (NYSE: NEM), both of which are expected to post quarterly results this week.

Top 10 Industrial Conglomerate Stocks To Own For 2016: International Game Technology(IGT)


International Game Technology PLC operates and provides a range of services and technology products across lotteries, machine gaming, sports betting, and interactive gaming markets in North America, Asia, and Europe. It provides online lottery transaction processing systems; a suite of lottery-enabled point-of-sale terminals; supplies instant ticket games; and provides printing services, instant ticket marketing plans, graphic design, programming, production, packaging, and shipping and delivery services. The company also provides video lottery terminals (VLT), VLT central systems, and VLT games to government customers; video and traditional mechanical reel slot machines and casino systems to casino operators; and amusement with prize machines and games to licensed operators, as well as designs, develops, manufactures, and provides cabinets, games, systems, and software. In addition, it is involved in the provision of sports b etting platform that offers betting on sporting events, motor sports, and non-sporting events, such as entertainment, music, culture, and current affairs; transaction processing of commercial transactions, such as prepaid cellular telephone recharges, prepaid mobile data, prepaid electricity and other utility bill payments, credit card transactions, social security contributions and payments, and prepaid cards; and collection, processing, and network services on behalf of third parties, as well as in the issuing of electronic money through immediate conversion of funds. Further, the company provides interactive games, such as poker, casino games, bingo, iLottery, sports betting, horseracing, and skill-based games. The company was formerly known as GTECH S.p.A. and changed its name to International Game Technology PLC in April 2015. The company was incorporated in 2014 and is headquartered in London, the United Kingdom.

Advisors’ Opinion:

  • [By Michael Flannelly]

    Analysts at Sterne Agee noted on Monday that International Game Technology’s (IGT) fiscal 2014 growth is stronger than it appears. As such, the analysts raised the price target on the casino gaming equipment manufacturer.

    The analysts maintain a “Buy” rating on IGT and now see shares reaching $25, up from the previous target of $23. This new price target suggests a 23% upside to the stock’s Friday closing price of $20.32.

    “Excluding FY13 Canadian VLT sales, which do not recur in FY14, consensus FY14 EPS growth is ~14% versus ‘in-print’ consensus EPS growth of ~4%,” Sterne Agee analyst David Bain said. “We believe IGT’s peer-low stock valuation is partly driven by a misinterpretation of forward growth using ‘in-print’ FY14 EPS projections.”

    Futhermore, the firm raised IGT’s fourth quarter EPS estimates from 33 cents to 34 cents.

    IGT shares were inactive during pre-market trading on Monday. The stock is up 43.4% year-to-date.

Top 5 Performing Companies To Watch In Right Now: McEwen Mining Inc.(MUX)


McEwen Mining Inc. explores for, develops, produces, and sells precious and base metals in Argentina, Mexico, and the United States. It primarily explores for gold, silver, and copper. The companys principal assets consist of a 49% interest in the San Jos茅 Mine in Santa Cruz, Argentina; the El Gallo 1 mine and El Gallo 2 project in Sinaloa, Mexico; the Gold Bar project in Nevada, the United States; and the Los Azules copper project in San Juan, Argentina It covers an area of approximately 730 square miles and comprises 146 mining concessions consisting of 71 approved mining claims; 54 claims that are in the application process for mining claim status; and 21 claims, principally that are for exploration only. The company was formerly known as US Gold Corporation and changed its name to McEwen Mining Inc. in January 2012. McEwen Mining Inc. was founded in 1979 and is headquartered in Toronto, Canada.

Advisors’ Opinion:

  • [By Lisa Levin]

    In trading on Friday, basic materials shares dropped by 0.51 percent. Meanwhile, top losers in the sector included Cliffs Natural Resources Inc (NYSE: CLF), down 6 percent, and McEwen Mining Inc (NYSE: MUX), down 6 percent.

Top 5 Performing Companies To Watch In Right Now: Clean Diesel Technologies Inc.(CDTI)

Clean Diesel Technologies, Inc. engages in the manufacture and distribution of emissions control systems and products for heavy duty diesel and light duty vehicle markets. The company operates in two divisions, Heavy Duty Diesel Systems and Catalyst. The Heavy Duty Diesel Systems division designs and manufactures verified exhaust emissions control solutions that are used to reduce exhaust emissions created by on-road, off-road, and stationary diesel and alternative fuel engines, including propane and natural gas. Its products include closed crankcase ventilation systems, diesel oxidation catalysts, diesel particulate filters, Platinum Plus fuel-borne catalysts, ARIS selective catalytic reduction reagents, catalyzed wire mesh diesel particulate filters, alternative fuel products, and exhaust accessories. This division offers its products for original equipment manufacturers of heavy duty diesel equipment, such as mining equipment, vehicles, generator sets, and construction equipment, as well as retrofit customers consisting of school districts, municipalities, and other fleet operators. The Catalyst division produces catalyst formulations using its proprietary MPC technology for gasoline, diesel, and natural gas induced emissions. Its products comprise catalysts for gasoline engines, diesel engines, and energy applications. This division supplies its catalysts to automotive manufacturers and large heavy duty diesel engine manufacturers. The company sells its products through a network of distributors and dealers, and its direct sales force worldwide. Clean Diesel Technologies, Inc. is based in Ventura, California.

Advisors’ Opinion:

  • [By Monica Gerson]

    Clean Diesel Technologies, Inc. (NASDAQ: CDTI) is projected to post a quarterly loss at $0.18 per share on revenue of $10.25 million.

    Sphere 3D Corp. (NASDAQ: ANY) is estimated to post a quarterly loss at $0.11 per share on revenue of $22.10 million.