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Morning Movers: Walmart Slumps, Monster Beverage Sinks, Broadcom Drops


The Dow Jones Industrial Average is racing higher this morning even as the 10-year Treasury yield tops 3% and oil prices continue to rise.

ON-CN292_nystoc_D_20180507131033.jpg Getty Images

S&P 500 futures have risen 0.3%, while Dow Jones Industrial Average futures have gained 103 points, or 0.4%. Nasdaq Composite futures have advanced 0.3%. WTI crude oil, the U.S. benchmark, has climbed 2.5% to $70.78 a barrel, while the U.S. 10-year Treasury yield rose 0.042 percentage point to 3.01%.

The 10-year's rise has come even after producer prices disappointed this morning. PPI rose 0.1% in April from March, below forecasts for 0.2%, while core PPI, which excludes food and energy prices, rose 0.2%, meeting economist expectations. Of course, when you're an inflation hawk, you just look to the year-over-year number, which is exactly what Bleakley Advisory Group's Peter Boockvar does when he cites the headline PPI's 2.8% average year-over-year rise during the past three and six months. "Bottom line, while the inflation data was about in line, the price pressures are clearly evident," he explains. So even if the 10-year's shrug at the disappointing data is understandable, the market's ability to shrug off a 3%-plus yield is noteworthy.

The move in oil makes sense--there's still a good chance that President Donald Trump's decision to exit the nuclear agreement with Iran helps support oil prices --but a continued rise could start to pose problems for the market, writes Gluskin Sheff's David Rosenberg. "For some reason, this exogenous negative supply shock to the American consumer and margin squeeze for the industrial sector have not yet been factored in by stock market participants," he writes.

How much higher does it have to go before they do?

Earnings & News

21st Century Fox  (FOXA) is up 1.8% to $38.68 after agreeing to acquire seven Sinclair Broadcast Group (SBGI) stations for $910 million.

Anheuser-Busch InBev  (BUD) is up 3.4% to $101.59 despite reporting lower-than-expected earnings. The spirits maker earned 73 cents a share on revenue of $13.07 billion, while analysts were looking for earnings of 77 cents a share on revenue of $12.94 billion. The company maintained its $3.2 billion synergy and cost savings forecast.

Delphi Technologies  (DLPH) is up 1.1% to $48 after reporting first-quarter earnings. The automotive supplier earned $1.30 a share on revenue of $1.3 billion, while analysts were looking for earnings of $1.15 a share on revenue of $1.24 billion.

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Electronic Arts  (EA) is up 2.8% to $1287.38 after reporting fourth-quarter earnings. The video game maker earned $1.95 a share on revenue of $1.25 billion, while analysts were looking for earnings of $1.90 a share on revenue of $.123 billion. It also announced a two-year $2.4 billion share repurchase program. For the full year, it expects to earn about $3.55 a share on revenue of $5.55 billion. Consensus calls for earnings of $4.11 a share on revenue of $5.61 billion.

Etsy  (ETSY) is down 1.3% to $31 after reporting first-quarter earnings. The online market place earned a dime a share, meeting analysts' expectations, on revenue of $120.9 million, compared with the $119.3 million consensus.

Groupon  (GRPN) is up 12.6% to $5.45 after reporting first-quarter earnings. The deals site earned three cents a share on revenue of $626.54 million. Analysts were looking for the company to break even on revenue of $604.16 million. Groupon also raised its full-year earnings before interest, taxes, depreciation and amortization guidance, and said its board authorized a $300 million share repurchase plan.

Monster Beverage  (MNST) is down 7% to $49.38 after reporting first-quarter earnings. The energy drink maker earned 38 cents a share on revenue of $850.92 million. Analysts were looking for earnings of 39 cents on revenue of $845.88 million.

Overstock.com  (OSTK) is down 2.4% to $37.25 after reporting first-quarter earnings. The online retailer lost $1.74 a share on revenue of $445.33 million, while analysts were looking for a 91 cent per-share loss on revenue of $454.06 million.

TripAdvisor  (TRIP) is up 18.8% to $46.05 after reporting first-quarter earnings. The online travel agency earned 30 cents a share on revenue of $378 million, while analysts were looking for earnings of 17 cents a share on revenue of $361.03 million. For the full year, it said it expects to notch adjusted earnings before interest, taxes, depreciation and amortization growth.

Twilio  (TWLO) is up 6% to $47 after reporting first-quarter earnings. The cloud software firm lost four cents a share on revenue of $129.12 million. Analysts were looking for a seven cent per-share loss on revenue of $115.92 million. For the full year, it expects to lose between seven and 10 cents a share, on revenue of $538 million to $544 million. Consensus calls for a 12 cent per-share loss on revenue of $511.84 million.

ON-CN343_waltdi_D_20180509090828.jpg Getty Images

Walmart (WMT) has dropped 4.3% to $82.07 after agreeing to pay $16 billion for just over three-quarters of India's Flipkart.

Walt Disney  (DIS) is down 0.3% to $101.45 after reporting second-quarter earnings. The media giant earned $1.84 a share on revenue of $14.55 billion. Analysts were looking for earnings of $1.70 a share on revenue of $14.11 billion.

Wendy's  (WEN) is down 3.2% to $16.45 after reporting first-quarter earnings. The restaurant chain earned 11 cents a share on revenue of $380.56 million, while analysts were looking for earnings of a dime a share on revenue of $379.29 million. For the full year, it expects to earn between 55 cents and 47 cents a share, compared with the 55 cent per-share consensus. - Teresa Rivas

Upgrades & Downgrades

Broadcom  (AVGO) is down 1.2% to $235.99 after Nomura downgraded it to Neutral.

Cleveland Cliffs  (CLF) is up 1.5% to $7.91 after Seaport Global Securities initiated coverage with a Buy rating.

Crocs  (CROX) is down 1% to $16.06 after Stifel downgraded it to Hold.

Fluor  (FLR) is up 2.2% to $45.68 after Bank of America Merrill Lynch double upgraded it from Underperform 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: FOXA , SBGI , BUD , DLPH , EA


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