Morning Movers: Navistar, Twitter Jump; Starbucks Slumps


The Dow Jones Industrial Average...In today's Morning Movers, we...

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•...wonder if the Nasdaq's about to make a new run; •...take a look at Twitter's (TWTR) pop; •...and highlight Goldman Sachs' downgrade of Ulta Beauty (ULTA).

Is the Nasdaq Composite heading for another big run? The major growth and tech index is pointing towards an opening gain Tuesday morning, albeit just 0.2%. But the index, bullishly, has just broken above its March record, and the challenge now is to see if it can stay above the 7600 level and get some momentum going.

Meanwhile the Dow Jones Industrial Average futures were pointing at a mere 25 point gain and the the S&P 500 only just in the black.

Globally, risk remains "on." Overnight most Asian bourses were in the black, and this morning Europe is on the front foot as well. Japan's Nikkei 225 rose 0.28%, South Korea's KOSPI 0.25%, Hong Kong's Hang Seng 0.31%, and the Shanghai Composite 0.74%. Across the pond, the STOXX Europe 600 rose 0.3% by around lunchtime, though London's FTSE 100 fell 0.5%. Italy's newest government du jour, a coalition of two populist parties who dislike the European Union, is expected to be confirmed by the Italian Senate, and in Milan the FTSE MIB is up 0.4%.

There may be some lively action ahead in the oil price and energy stocks. Bloomberg reports this morning that the president is pressuring Saudi Arabia and OPEC to hike production by as much as a billion barrels a day in order to bring down prices for US motorists. This is a reaction to rising US gasoline prices, which have jumped more than 50 cents a gallon in a year.

Politics, trade and economic nationalism are proving significant sources of volatility. Is there a way to make these part of your trading plan and make money - without, say, being an economic interest with political clout? You make the call. Financial commentator Ben Carlson suggests that anyone trying to trade the market based on, say, the president's tweets about the jobs report might as well just save themselves some time and light their money on fire.

Last week the president hiked tariffs to help US aluminum and steel producers, and by Twitter the president is also now demanding Chinese trade concessions to help US farmers. Good news for farmland?

Earnings & News

Dish Network (DISH) is up 0.7% to $29.23 after its chairman disclosed a purchase of 100,000 shares.

Francesca's Holdings (FRAN) is down 10.5% to $5.45 after reporting first-quarter earnings. The retailer lost 11 cents a share, in line with analysts' estimates, on revenue of $100.4 million, below the $101.48 million consensus. It also reaffirmed full-year guidance, as it sees EPS of 53 cents to 63 cents a share, on revenue of $485 million to $499 million. Analysts are looking for earnings of 56 cents a share on revenue of $490.32 million.

Navistar International (NAV) is up 4.4% to $40.20 after reporting second-quarter earnings. The truck engine maker earned 55 cents a share on revenue of $2.42 billion. Analysts were looking for earnings of 34 cents on revenue of $2.43 billion. For the full year, Navistar raised its guidance, as it expects revenues of $9.75 billion to $10.25 billion, above the $9.64 billion consensus estimate.

Starbucks (SBUX) is down 1% to $56.50 on news that chairman Howard Schultz is stepping down, and will be replaced by former J.C. Penney (JCP) chief executive Myron "Mike" Ullman.

Twitter (TWTR) is up 3.9% to $39.35 on news that it will join the S&P 500, Monsanto (MON).

- Teresa Rivas

Upgrades & Downgrades

First Solar (FSLR) is down 4% to $59.29 after Bank of America Merrill Lynch downgraded it to Hold.

Paccar (PCAR) is up 1.3% to $63.90 after Macquarie upgraded it to Outperform.

Okta (OKTA) is down 2.7% tp $55.80 after Needham downgraded it to Hold.

Take Two Interactive (TTWO) is down 1.7% to $111.78 after BMO Capital Markets downgraded it to Market Perform.

Ulta Beauty (ULTA) is down 1.4% to $253 after Goldman Sachs downgraded it to Neutral.

- 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.

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

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