U.S. markets gave back some of their gains from yesterday after digesting more earnings reports, the latest macro data and the message from the Fed on Wednesday.
The Fed’s statement about looking for gains in employment and labor in order to decide on rates at the December meeting had some investors concerned.
Third-quarter GDP came in at an annual rate of 1.5%, well below last quarter’s 3.9% gain, and missing expectations for 1.6%. Jobless claims for the week ending 10/23 were 260,000. Analysts were expecting 265,000, so that was slightly positive news.
The Dow Jones Industrial Average was off 0.1%. The S&P 500 was flat, and the Nasdaq lost 0.1%. Most sectors fell today, but energy was a bit stronger.
Good earnings and the resolution of a lawsuit paved the way for Nokia Corporation (ADR) (NYSE: NOK), Lifelock Inc (NYSE: LOCK) and Hanesbrands Inc. (NYSE: HBI) Those three were among today’s best stocks.
Nokia Corporation (ADR) (NOK)
NOK stock was a big 10% winner today after reporting third-quarter earnings of 8 euro cents per share — a penny above analysts’ expectations. However, revenue, which fell 1.6% to 3.04 Euros from a year ago, was significantly short of the analysts’ projection of 3.66 billion Euros.
But two further announcements made up for the miss on revenue. The company stated that it expects to complete the takeover of Alcatel-Lucent SA (ADR) (NYSE:ALU) in early 2016, and will give back 4.4 billion euros to stockholders via distributions and buybacks.
It was also an important day for the technicals of Nokia stock, as it jumped over recent resistance at $7.00 and also blasted through the 200-day moving average at $7.11.
Lifelock Inc (LOCK)
Lifelock had a huge day. The identity monitoring company agreed to a settlement with the Federal Trade Commission (FTC) and attorneys representing a class-action lawsuit related to false advertising claims and failure to keep customer’s security information secure.
Terms of the settlement were not announced today, but LOCK raised its reserve funds up to $116 million in preparation.
LOCK also reported stellar earnings after the market closed on Wednesday. Third quarter earnings came in at 28 cents per share, ahead of estimates for 25 cents, and revenue of $151.95 million was nicely ahead of the estimates for $147.36 million. Lifelock also raised the previous guidance range of EPS for 2015 from 58-61 cents per share, to a range of 61-63.
Capping off the good news, David Hynes Jr. of Canaccord Genuity Group Inc (TSF:CF) maintained his “buy” rating, while raising his price target to $17 from the previous $14 per share.
All in all, it was a great time to be a LOCK investor, as the stock gained nearly 44% on the day.
Hanesbrands Inc. (HBI)
Another company reporting terrific earnings today was Hanesbrands, which said third-quarter EPS came in at 50 cents per share — up 16% from last year and well ahead of the Zacks Consensus Estimate of 45 cents.
Revenue of $1.59 billion was up 14% and topped estimates for $1.56 billion. In addition, the apparel maker raised 2015 guidance from a range of $1.61-$1.66 per share up to $1.66-$1.68.
HBI stock, which fell from $34 to $26 over the past four months, regained its momentum by blasting up 14% and moving above the 200-day moving average today for the first time in awhile.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
