Walking in the door this morning, corporate profit news had a
favorable feel and the treasury market was flashing a bid (yields
were down). This is a shift from the past week when
companies were disappointing investors and interest rates seemed
to be screaming higher.
Here is a quick summary of this morning's events:
Home Depot (
) and Best Buy (
) impressed the market with their quarterly results.
HD earned $1.24/share against the Zacks Consensus EPS
Estimate of $1.19. Q2 same store sales growth was up 11.4%
in the U.S., and the company was constructive on H2 2013 on the
back of conditions in the housing market. BBY reported EPS
of $0.32 against a Zacks Consensus EPS Estimate of $0.12.
Analysts were generally pleased with the results at Urban
) focusing on stronger than expected EPS and downplaying a short
fall on revenues to forecast. There have been a handful of
positive analyst statements. Bob Evans (
) posted as expected earnings and soft revenues, but lifted its
dividend as an offset. The return of capital has been a theme of
the bull market.
The main negative in retail seemed to rest in Dicks Sporting (
) which missed analyst estimates on earnings and revenues and
provided soft guidance.
Beyond retail, the materials sector did see BHP Billiton (
) post weak results to consensus. The stock had run
up sharply into earnings.
Treasuries were bid overnight. There seems to be chatter
about real money interest in the Asian session. Of
interest, the September 10 year treasury futures contact has been
able to hold its July lows. The price strength is a bit
surprising given the wave of negativity in the treasury
Even though the news flow is market favorable, the "support"
levels on the S&P 500 chart seem strongest at 1635/1632 and
: Do you think today's "positives" are enough to get the
market out of its losing streak and reverse the downtrend or is
the news just noise in a correction?
BEST BUY (BBY): Free Stock Analysis Report
BHP BILLITN LTD (BHP): Free Stock Analysis
DICKS SPRTG GDS (DKS): Free Stock Analysis
HOME DEPOT (HD): Free Stock Analysis Report
SPDR-SP 500 TR (SPY): ETF Research Reports
URBAN OUTFITTER (URBN): Free Stock Analysis
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