It's Morning Movers time and with the Dow Jones Industrial Average up slightly this morning, we...
•...consider the rapidly shifting narrative that's driving the market; •...highlight earnings from Sears Holdings (SHLD) and Dollar General (DG); •...and examine the looming tech awards season in the View From Silicon Valley.
Everything Is Green Again
For the fourth time this week, stocks look set for a higher open. Can they hold onto their gains this time?
S&P 500 futures have risen 0.1%, while Dow Jones Industrial Average futures have gained 63 points, or 0.3%. Nasdaq Composite futures have advanced 0.1%.
It's been strange to watch the narrative shift so quickly in the market. In early February, fears of rising inflation and rapid economic growth caused bond yields to soar and stocks to tumble. This week, stocks have been falling on concerns that the economy isn't growing fast enough, causing bond yields to slump. So which is it?
Don't look for today's economic data to provide an answer. Jobless claims declined to 226,000 --right where economists expected them to be--so no surprise there, and no new information either. The Empire Manufacturing survey of economic activity in the New York region, meanwhile, rose to 22.5 in March from 13.1 in February, and topped analyst forecasts for 15, and showed an increase in both prices paid and prices received. The Philly Fed index, however, fell to 22.3 from 25.8., and the prices paid and revived both declined.
Marketfield's Michael Shaoul argues that if inflation does materialize, it will be from a combination of "tighter labor markets, logistical bottlenecks, acceleration in private and public sector investment, firmer commodity markets and a weaker US dollar," not just from one metric such as wage growth.
That's one way of saying the jury's still out.
- Ben Levisohn
Morning Movers
Earnings & News
3D Systems (DDD) is up 9.5% to $13.30 after reporting fourth-quarter earnings. The 3D printer maker earned a nickel a share on revenue of $177.3 million. Analysts were looking for earnings of three cents a share on revenue of $164.9 million.
Alexion Pharmaceuticals (ALXN) has surged 9.2% to $133.99 after reporting results from a Phase 3 trial for a rare blood disease. "We expect ALXN shares to trade higher as investors breathe a sigh of relief following release of Phase 3 ALXN-1210 data," writes BMO analyst M. Ian Somaiya.
CTrip.com (CTRP) is down 4.6% to $46.50 after its fourth-quarter earnings. The online travel agency earned 14 cents a share on revenue of $987.54 million. Analysts were looking for earnings of 16 cents a share on revenue of $1 billion. For the current quarter, it expects revenue of $961 million to $968 million, compared to the $1.1 billion consensus.
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Dollar General (DG) is up 7% to $95.45 on its fourth-quarter earnings. The discounter earned $1.48 a share on revenue of $6.13 billion. Analysts expected earnings of $1.48 a share on revenue of $6.2 billion. Same-store sales rose 3.3% in the quarter. For the full year, it sees earnings between $5.95 and $6.15 a share, on revenue of $25.58 billion, compared to the $5.58 per share and $25.44 billion consensus. It also raised its dividend and share repurchase program.
Sears Holdings (SHLD) is up 8.2% to $2.62, after reporting fourth-quarter earnings. The department store chain earned $1.69 a share on revenue of $4.38 billion. Analysts were looking for earnings of $1.16 a share on revenue of $3.86 billion.
Williams-Sonoma (WSM) is up 3.6% to $55.61o on its fourth-quarter earnings. The home furnishings retailer said it earned $1.68 a share on revenue of $1.68 billion. Analysts were looking for earnings of $1.61 a share on revenue of $1.65 billion. For the full year, it expects to earn between $4.12 and $4.22 a share, on revenue of $5.48 billion to $5.64 billion, compared to the $4.07 per share and $5.48 billion consensus. Loop Capital's Anthony Chukumba reiterated a Hold rating on the stock, but writes that Williams-Sonoma ended the year on a high note, and he was happy to hear of its increased dividend and share repurchase plan.
Upgrades & Downgrades
Baidu.com (BIDU) has gained 2.1% to $264.90 and Broadcom (AVGO) is up 1.1% to $263.50. Deutsche Bank resumed coverage of both with a Buy rating.
e.l.f Beauty (ELF) has dropped 4% to $19.18 after Morgan Stanley cut it to Underweight.
Expedia (EXPE) has fallen 1.5% to $111.60 after getting cut to Neutral from Outperform at Macquarie.
Exxon Mobil (XOM) has advanced 0.7% to $74.10 after HSBC upgraded it from Reduce to Buy.
MercadoLibre (MELI) has slumped 3.9% to $389 after Stifel cut it to Hold.
Qorvo (QRVO) has fallen 2.2% to $80.45 after Bank of America Merrill Lynch downgraded it to Underperform.
Signet Jewelers (SIG) has declined 1.5% to $37.66 after getting cut to Hold from Buy at Needham a day after tumbling 20% following disappointing earnings.
Viacom (VIAB) has advanced 1.4% to $33.10 after Needham upgraded it to Buy. - Teresa Rivas
The View From Silicon Valley
Hollywood has its awards season, culminating in the Academy Awards. And, so too, does Silicon Valley.
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It may lack the glitz and glamour of high fashion and star power, but the tech's troika of local developers' conferences- Facebook's (FB) F8 in May, Alphabet's (GOOGL) Google I/O, also in May, and Apple's (AAPL) WWDC in June -never lack for high drama.
Developers' conferences set the tone for what consumers and enterprises can expect from each company over the next 18 to 24 months, laying a groundwork for their competitive strengths, potential revenue and future market capitalization.
Last year, the valley's Big Three shared their visions, so to speak, on mixed reality, considered crucial to all of their future plans.
Apple unveiled a new augmented reality developer kit, ARKit, that helps Apple app developers integrate the technology, which overlays digital images on the physical world, on iPhones. Facebook and Google showcased digital-reality tech at their glorified demos, with plans to enhance commerce and communications services.
This year? The companies are usually tight-lipped, but Bloomberg News has reported Apple is readying new versions of its iPhone and Mac operating systems - including an effort to combine the app systems for both platforms.
We're not as certain about Google, but Facebook isn't shy about sharing ambitious, long-term visions. Two years ago, Chief Executive Officer Mark Zuckerberg shared a 10-year plan to connect the world. Maybe this year, he'll explain what his company plans to do to regain consumer trust after a brutal stretch the past 18 months. - Jon Swartz
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.
