The bullish mood on Wall Street stalled again as stocks pulled back after hitting new highs this past Wednesday. There were several economic reports today for investors to consider.
Fourth-quarter gross domestic product (GDP) was revised from 2.6% to 2.2%, slightly above the estimates of 2.1%, after coming in at 5% in the third quarter.
However, the Chicago Purchasing Managers Index fell 13.6 points to 45.8, the lowest reading since mid-2009, and the first contraction in the reading since April 2013. The port strike on the West Coast was said to be largely responsible for the decline.
Pending home sales for January were up 1.7% to 104.2, the highest in 18 months, according to the National Association of Realtors. Finally, February consumer sentiment came in at 95.4, down from 98.1 last month, but above expectations.
Despite some of the news being positive, the Dow Jones Industrial Average slid 0.4%, while the S&P 500 was off 0.3% and the Nasdaq Composite dropped 0.5%.
Basic materials, energy and non-cyclical consumer goods stocks had the edge over other sectors today. One stock having a monster day was Monster Beverage Corp (NASDAQ:MNST), which along with Aruba Networks, Inc. (NASDAQ:ARUN) and Autodesk, Inc. (NASDAQ:ADSK) are three of today’s best stocks.
Monster Beverage Corp (MNST)
Monster stock roared more than 13% higher after reporting earnings per share of 72 cents, on $125.3 million, well above analysts’ estimates of 59 cents a share. The quarter was also well ahead of the year ago quarter, in which Monster earned $76.1 million, or 44 cents a share.
But that was only half the story. MNST also announced an amended agreement with The Coca-Cola Co (NYSE:KO) that will make Coca-Cola the preferred distribution partner of Monster drinks throughout the world. Coca-Cola, which owns 17% of Monster Beverage, will also make Monster the “exclusive energy play.”
MNST investors were definitely energized by that news.
Aruba Networks, Inc. (ARUN)
There was a run on ARUN stock today after the company reported EPS of 30 cents per share for its second quarter, above Street estimates for 27 cents a share. Revenue was up 20.7% this year to $212.9 million for the quarter, about $2 million better than the Street view. As a result, ARUN stock was more than 9% higher on 13.5 million shares.
Also boosting the stock was BMO Capital Markets, which raised its price target for ARUN stock from $22 to $26, and reiterated a rating of “market perform.”
Autodesk, Inc. (ADSK)
Autodesk posted fourth-quarter earnings of 25 cents per share, besting the Street’s view by a penny. Revenue was up 13.3% to $664.6 million for the quarter, ahead of analysts’ estimates for $650.5 million. ADSK bolted up 5% on the news.
ADSK also said it has added 100,000 new software, maintenance and cloud subscriptions this quarter, to increase its total subscriber base to 2.2 million. They expect to increase that number to 375,000 to 435,000 subscribers in 2016.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
