U.S. markets traded lower today amid news that the International Monetary Fund may decide not to continue funding debt-strapped Greece unless other European nations are willing to accept more debt writedowns.
In addition, Chinese shares fell heavily when the Reserve Bank of Australia cut interest rates for the second time this year. Brokerages in China were again raising margin requirements.
Back in the U.S., the Commerce Department reported the trade deficit for March at $51.4 billion, which was $10 billion higher than expected and the largest deficit since late 2008. Analysts are expressing concern that first-quarter GDP estimates could be revised sharply downward.
At the closing bell, the Dow Jones Industrial Average was off 0.8%, while the S&P 500 lost 1.2% and the Nasdaq Composite gave up 1.5%. As could be expected, all sectors were in the negative camp, with utilities hit particularly hard.
So it was a gloomy day on Wall Street, but the bulls still found reason to celibrate with stocks such as Vale SA (ADR) (NYSE:VALE), Louisiana-Pacific Corporation (NYSE:LPX) and Integrated Device Technology Inc (NASDAQ:IDTI), which all beat Street estimates on earnings to become three of today’s best stocks.
Vale SA (ADR) (VALE)
VALE stock climbed 9.6% higher today after the Brazilian mining company reported a first-quarter loss of 13 cents a share, well down from a year ago’s profit of 40 cents a share, but better than analysts’ expectations for a 22-cent-per-share loss.
Revenue came in at $6.4 billion, down 34.3% from a year ago and below the consensus estimate of $7.4 billion. However, strength of the U.S. dollar versus the Brazilian currency was held responsible for the decline in earnings, and the Street was in a forgiving mood. The earnings-up-revenue-down story is a omnipresent theme from this quarter’s earnings on Wall Street.
Louisiana-Pacific Corporation (LPX)
LPX stock gapped up 5.4% after reporting first-quarter earnings and revenue above analysts’ estimates. LPX reported a loss of 13 cents a share on revenue of $472 million, but these were better than the Street’s expectations for a loss of 19 cents a share on revenue of $458.2 million.
CEO Curt Stevens noted that it was LPX’ siding business that posted record sales for both commercial and residential construction and remodeling.
LPX stock has been in a trading range between $17.50 and $15.25 since December.
Integrated Device Technology Inc (IDTI)
Shares of IDTI stock flew 5.2% higher after reporting fiscal fourth-quarter earnings of 29 cents a share, ahead of analysts’ estimates of 26 cents a share. Revenue of $158.3 million was 33.5% better than a year ago, and higher than the Street’s view for $157.9 million.
In addition, IDTI stock investors rejoiced at the company’s announcement that its board of directors has voted to replace the previous stock repurchase plan, which had $27 million remaining, with a new $300 million repurchase program.
IDTI stock is up about 13% since bottoming in January.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
