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Morning Movers: Bank of America Gains on Earnings; Costco Rises on Upgrade


The Dow Jones Industrial Average is rising this morning and nothing that happens this morning seems to be changing that.

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Dow futures have risen 181 points, or 0.7%, while S&P 500 futures have gained 0.8%. Nasdaq Composite futures have climbed 0.8%.

The Dow is up just a hair more than it was when I posted at around 7:30 a.m. this morning, despite the fact that we've had two pieces of economic data released since then. Retail sales rose 0.6% in March from February, beating the 0.4% increase predicted by economists, but April's Empire Manufacturing Survey came in at 15.8, well below the 18.4 that had been predicted and down from 22.5 last month. Not much reaction from the market, however. And I think we can safely say that the market is ignoring the Comey-Trump lovefest that occurred over the weekend.

Syria, of course, is the obvious reason for the strength. The missiles were launched, targets were hit, but so far the response has been tempered. "The missile strikes on Syria were limited and there was no material Russian response, so markets view the event as a reduction in potential geo-political risks, and stocks are tentatively rallying as a result," writes The Sevens Report's Tom Essaye.

So no war, bull market resumed? Not quite. Essaye also notes that the headline issues, ranging from tariffs, the Mueller probe and tensions in the Middle East are noise compared to what really matters for the market: Questions about inflation and the strength of economic data. "[The] potential lessening of these macro risks is not the key to this market extending this rally and testing recent highs," Essaye explains.

Just keep that in mind.

Earnigns & News

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Alkermes  (ALKS) has soared 16% to $49.35 after the Food and Drug Administration reversed course and accepted its application  for its depression drug.

Bank of America (BAC) has risen 1% to $30.10 after reporting first-quarter earnings. The bank said that it earned 62 cents a share on revenue of $23.1 billion. Analysts were looking for earnings of 59 cents on revenue of $23.04 billion.

Eldorado Resorts  (ERI) has surged 12% to 40 after it said it would buy Tropicana Entertainment  (TPCA) in a cash deal worth $1.85 billion.

J.B. Hunt Transportation (JBHT) has fallen 1.3% to $111.13 after reporting first-quarter earnings. The trucking company earned $1.07 a share on revenue of $1.95 billion. Analysts were looking for earnings of $1.06 a share on revenue of $1.88 billion.

Shire  (SHPG) has rallied 2.6% to $156.15 after announcing it would sell its oncology business to Servier for $2.4 billion. - Teresa Rivas

Upgrades & Downgrades

American Water Works  (AWK) has advanced 0.7% to $81.45 after Janney upgraded it to Buy.

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Barclays  (BCS) has gained 1.6% to $12.41 after Jefferies upgraded it to Buy.

Costco  (COST) has risen 1.3% to $191.42 after Wells Fargo upgraded it to Buy.

Crocs  (CROX) has slumped 4.9% to $15.47 after Susquehanna downgraded it to Negative.

Dean Foods (DF) has dropped 2.6% to $8.73 after Goldman Sachs downgraded it to Neutral.

Kraft Heinz (KHC) has declined 0.9% to $60.40 after Credit Suisse cut it to Underperform.

Ulta Beauty  (ULTA) has gained 2.3% to $226 after Guggenheim upgraded it to Buy. - T.R.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , US Markets
Referenced Symbols: ALKS , BAC , ERI , JBHT



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