U.S. markets shakily made their way Thursday, a day in which the International Monetary Fund (IMF) had left Brussels without an agreement on Greece’s debt issues. The IMF said there were “major differences” that had not been resolved.
However, we did get some good domestic economic news, including May retail sales that were up 1.2%, including 1% ex-autos. April sales were revised from flat to positive 0.2%. Jobless claims came in at 279,000, just slightly above expectations for 277,000, and April business inventories were up 0.4%, the largest gain since the summer of 2014.
The Dow Jones Industrial Average and S&P 500 finished up 0.2%, while the Nasdaq was ahead by 0.1%. Among the day’s best stocks? Krispy Kreme Doughnuts (NYSE:KKD), Hess Corp (NYSE:HES) and Citrix Systems, Inc. (NASDAQ:CTXS).
Here’s why:
Krispy Kreme Doughnuts (KKD)
KKD stock rushed more than 13% higher after delivering some sweet first-quarter earnings of 24 cents a share, ahead of analysts’ estimates for 22 cents a share.
While revenue of $132.47 million missed the Street’s view of $136.99 million, it was up 9% year-over-year. Meanwhile, comps rose 5.2%, including 4.3% in its company-owned stores.
KKD also narrowed the range of its full-year earnings guidance, from 79-85 cents per share to 80-85 cents per share. (Analysts were looking for 84 cents per share.)
Hess Corp (HES)
HES stock was up more than 4% on twice normal volume after Hess announced it will sell 50% of its Bakken midstream shale oil assets to private equity firm Global Infrastructure Partners in a cash deal valued at $2.68 billion.
The first step in the partnership will be to create a joint venture called Hess Infrastructure Partners. Then in the third quarter, the joint venture will go forward with an initial public offering of Hess Midstream Partners LP.
HES stock has recently pulled back from $79 to $65, but looks to have bounced back nicely on this latest news.
Citrix Systems, Inc. (CTXS)
CTXS stock gapped higher after activist hedge fund Elliott Management announced a 7.1% stake in Citrix. Elliott sent the board of directors a letter asking for changes in the company in an expressed effort to boost shares up above $90 a share by 2016. Elliot has previously employed the same strategy successfully with companies such as Juniper Networks, Inc. (NYSE:JNPR) and EMC Corporation (NYSE:EMC).
Elliott is recommending that Citrix realign the company’s sales and marketing teams, undertake a full operational review of its research and development operations, pare some underperforming products, and sell its NetScaler and GoTo subsidiary businesses.
Traders liked what they heard and pushed CTXS stock higher by more than 6%.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
