A smaller-than-expected February ADP private payrolls report had U.S. markets selling off today, as traders were nervously anticipating a painful labor market report this Friday. While the ADP reported a gain of 212,000, it was the poorest number since August, 2014, and below expectations for 220,000 new jobs.
The January new jobs report was revised up to 250,000. As has frequently been the case, most of the gains were from the service sector, which means they are fairly low-paying jobs.
Among the major indices, the Dow Jones Industrial Average fell 0.58%, the S&P 500 was lower by 0.44%, and the Nasdaq gave back 0.26%.
Despite the gloom and doom, Smith & Wesson Holding Corp (NASDAQ:SWHC) and American Eagle Outfitters (NYSE:AEO) benefited from good earnings, and, along with HCA Holdings Inc (NYSE:HCA), are 3 of Today’s Best Stocks.
Smith & Wesson Holding Corp (SWHC)
SWHC stock shot up nearly 10% today after their third-quarter fiscal 2015 earnings of 20 cents per share handily bested the analysts’ estimates of 11 cents per share. The street decided to overlook the fact that the earnings were actually 15 cents lower than the year ago same quarter. Revenue of $130.6 million, which was a decline of 10.5%, was nevertheless ahead of the estimates of $128 million.
In addition, Smith & Wesson also raised their guidance for the next quarter from 29 to 31 cents per share, ahead of the street view of 24 cents per share.
SWHC stock is up about 50% thus far in 2015.
American Eagle Outfitters (AEO)
AEO stock also jumped more than 7%, following a better-than-expected fourth-quarter earnings report. The teen retail store posted EPS of 37 cents on revenue of $1.07 billion, ahead of the expected 34 cents on revenue of $1.06 billion.
AEO, like SWHC, also issued guidance that was above the street’s view. AEO expects to earn between 9 cents and 12 cents per share, well ahead of the 7-cents estimate from analysts.
AEO stock has pushed nearly 35% higher since December, 2014.
HCA Holdings Inc (HCA)
HCA stock, along with several other hospital stocks, was up strongly today, as the Supreme Court was hearing arguments to challenge portions of the Affordable Health Care Act.
Supreme Court Justice Anthony Kennedy had some tough comments in open court that seemed to indicate he was leaning against overturning those sections of the law, and that led investors to rush to buy hospital and other health care stocks that would benefit from the court striking down the challenge.
HCA stock finished the day higher by more than 5%, and broke through recent resistance at $76 intraday, before falling back to finish at $74.93.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
