U.S. markets were calmer today and consolidated their gains following Tuesday’s 300-point rally, as oil gave back a bit of its gains as well. Another factor weighing on the market today was the HSBC services purchasing manager’s index, which reported that in January China’s services sector grew at the slowest pace since July 2014.
And finally, a late afternoon report that the European Central Bank will no longer accept Greek bonds as collateral for any loans kept stocks from making any progress.
The Dow Jones Industrial Average was up a fraction, while the S&P 500 lost 0.4% and the Nasdaq Composite was off by 0.2%.
Telecommunications and cyclical consumer goods were the leading sectors on the day, which helps explain why Walt Disney Co (NYSE:DIS), Sony Corp (ADR) (NYSE:SNE), and Whirlpool Corporation (NYSE:WHR) are three of today’s best stocks.
Walt Disney Co (NYSE:DIS)
DIS stock was anything but Frozen today, gapping up more than 7% after reporting a 23% increase in first-quarter earnings to $1.27 per share, and record revenue of $13.4 billion. The Street was expecting $1.08 a share, on $12.8 billion. Operating income was also up 17% year-over-year.
This is the seventh consecutive quarter that DIS has surpassed the estimates, frequently by comfortable margins. InvestorPlace contributor Lawrence Meyers calls DIS stock one to “forever hold.”
Also boosting DIS stock was Stifel Financial, which reiterated a buy rating on DIS and raised its price target from $110 to $115.
Sony Corp (ADR) (SNE)
Although unable to give a complete report of its full year earnings because of the Sony Pictures cyberattack late last year, SNE said it is cutting its full year earnings expectations to a loss of 170 billion yen ($1.4 billion), rather than 230 billion yen. Full year revenue estimates increased from 7.8 trillion yen to 8 trillion yen ($68 million).
There were some positives — the company slashed corporate costs and had better-than-expected sales of its PlayStation gaming console. As a result, the stock blasted higher by nearly 11%. SNE will announce its full quarterly results before the end of March.
Whirlpool Corporation (WHR)
WHR stock rose nearly 7% after reporting second-quarter adjusted earnings of $3.52 a share, up 18.5%, and easily besting analysts’ estimates of $3.19 a share. Revenue was 17.9% higher to $6 billion, ahead of the estimates of $5.8 billion. WHR also reiterated full year 2015 adjusted earnings guidance from $14 to $15 a share. The estimates were for $14.39.
WHR stock has been on a tear in recent months, up more than 50% since October. Today’s closing price near $215 represents a new high for the appliance manufacturer. New acquisitions in both Europe and China triggered an increase in sales abroad, which helped the bottom line on earnings.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
