U.S. markets were mixed today as investors digested news about the jobs market and continued to keep an eye on rising bond yields.
The U.S. Bureau of Labor Statistics reported that job openings in April were 3% higher, as the labor market added 5.4 million jobs, a slight increase above the 5 million reported in March. The number represents the highest number recorded since record keeping began at the end of 2000.
When U.S. Treasury bond yields hit 2.449% this morning, it was the highest yield since October 2014. But the bond rally stalled there, giving stocks a boost.
In other economic news, wholesale inventories were 0.4% higher in April than the previous month, above Street estimates for a 0.2% increase. In addition, the National Federation of Independent Business said that U.S. small business confidence came in at 98.3 for May, the highest reading since December.
The Dow Jones Industrial Average and the S&P 500 finished flat, while the Nasdaq Composite fell 0.4%. Most sectors were lower, and only a few like consumer goods and financials were showing any strength.
But dolid earnings continue to drive stocks higher. Lululemon Athletica inc. (LULU), Dave & Buster’s Entertainment Inc. (PLAY) were proof of that, while Visteon Corp (NYSE:VC) was giving shareholders an early Christmas present. Those three are some of today’s best performing stocks.
Lululemon Athletica Inc. (LULU)
LULU stock 11% higher on heavy volume of 15 million shares, after posting first quarter earnings of 34 cents a share on revenue of $423.5 billion, beating the analysts’ estimates of 33 cents a share on revenue of $418.9.
In addition, LULU increased their earnings and revenue forecast for the full year. It was the eighth consecutive quarter that the Canadian sportswear company has beaten the street’s forecast on earnings per share.
Dave & Buster’s Entertainment Inc. (PLAY)
Dave & Buster’s was another hot company that beat the analysts’ forecasts for first-quarter earnings, and PLAY stock rose 4% on solid volume. Dave & Buster reported earnings of 46 cents per share, trouncing the Street’s view of 37 cents a share.
In addition, revenue climbed 14.3% to $222.7 million, ahead of the estimates for $216.3 million. The Dallas-based restaurant and entertainment company also raised its full-year revenue to a range of $822 to $831 million, ahead of the Street’s view for $821.9 million.
Visteon Corp (VC)
VC stock, a 2000 spinoff of Ford Motor Company (F), was in the driver’s seat today after the auto parts supply company told shareholders they would be returning $2.6 billion through share buybacks and special distributions. As a result, VC stock was 3.8% higher on the day.
The money comes from the completed sale to Hahn & Company of a 70% stake it owned in Halla Visteon Climate Control Corp. for $3.6 billion.
The company will get the ball rolling in the second quarter with a $500 million accelerated share buyback program. Then in 2016, it will make at least one special distribution to shareholders.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
