U.S. markets were flat today, reflecting a day of earnings reports that didn’t consistently meet expectations.
Gross domestic product, while up 2.3%, came in slightly below economist predictions. The first quarter GDP numbers were also revised higher, changing from a 0.2% contraction to a 0.6% expansion.
In other news, the Labor Department reported that U.S. weekly jobless claims increased by 12,000 to 267,000, but still below market expectations, so that number, while higher, was seen as a positive.
The Dow Jones Industrial Average and the S&P 500 Index were flat on the day, while the Nasdaq pulled up 33 basis points. Sectors were quite mixed: Technology and utilities were the strongest, while energy and materials (two sectors that were strong yesterday) sold off today.
Nokia Corporation (ADR) (NYSE:NOK), T-Mobile US Inc (NYSE:TMUS) and Skechers USA Inc (NYSE:SKX) were three stocks with earnings beats that raised each stock on strong volume. Here is why they are three of today’s best stocks:
Nokia Corporation (ADR) (NOK)
NOK stock gained more than 6% today after reporting second-quarter earnings of 9 euro cents a share on $3.21 billion euros. This was well ahead of the Street’s view of 6 euro cents a share, but lower than the $3.55 billion in revenue expected.
Nokia also announced it will continue with its proposed acquisition of Alcatel Lucent SA (ADR) (NYSE:ALU). CEO Michael Combes of Alcatel will leave the company the first of September, and Chairman Philippe Camus will serve as the interim CEO.
Both companies have a great deal of cash right now which should be of benefit as the merged company moves forward after the deal is closed.
T-Mobile US Inc (TMUS)
Another cell phone company also reported positive earnings today. TMUS announced second-quarter earnings of 42 cents a share on revenue of $8.18 billion, well ahead of the Street’s view of 18 cents a share on only $7.94 billion revenue.
TMUS also increased its outlook for subscriber growth in 2015, saying it expects to add another 3.4 million to 3.9 million postpaid users. Better, of course, than its previous forecast of 3 million to 3.5 million new users. This growth reverses years of declining subscribers, and is largely attributed to T-Mobile making subscribers happy by canceling its service contracts.
As a result, TMUS stock ripped up nearly 5% today.
Skechers USA Inc (SKX)
SKX stock surged up 16% after the shoe manufacturer reported second-quarter earnings after Wednesday’s closing bell of $1.55 a share on revenue of $800.46 million, well ahead of analysts’ estimates for $1.01 a share on $736.37 million. Revenue was up over 36% from a year ago.
Despite problems with the strong dollar, Skechers’ international business performed well. SKX’s CFO and COO, David Weinberg, claimed a number of celebrities who have appeared as spokespersons — such as Ringo Starr, Demi Lovato and Sugar Ray Leonard — have widened the brand’s appeal to all age groups.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
