U.S. markets were once again on the defensive today, as investors were reluctant to take new positions ahead of tomorrow’s key jobs report, and crude oil slipped another 2%. Stocks traded lower for most of the day, before moving up to finish flat near the closing bell.
The Labor Department reported weekly jobless claims of 276,000, well above than the 262,000 the street was expecting. It was a rise of 16,000 from the previous month, and was the biggest weekly gain in the past eight months.
However, on a more positive note, third-quarter productivity was up 1.6% on an annual basis.
The Dow Jones Industrial Average finished the day flat overall, while the S&P 500 was off just 0.1% and the Nasdaq lost 0.3%. Sectors were evenly split between winners and losers, with energy and basic materials very weak and financials and consumer goods doing well. The Nasdaq Biotechnology ETF (IBB) lost 1.9%.
Stout earnings and analyst upgrades pushed stocks such as Facebook Inc (NASDAQ:FB), Ralph Lauren Corp (NYSE: RL) and Kate Spade & Co (NYSE:KATE) to new heights, making them some of today’s best stocks.
Facebook Inc (FB)
FB stock had a great day after the social media giant reported third-quarter earnings after the bell on Wednesday, beating analysts’ estimates on both EPS and revenue.
Facebook posted adjusted earnings of 57 cents per share on $4.50 billion of revenue, nicely above the estimates for 52 cents per share on $4.37 billion.
Fueling the stock’s rise further were a slew of new analyst price targets and ratings. Some of the analysts who raised their price targets after the earnings call were Morgan Stanley (NYSE:MS), Barclays PLC (ADR) (NYSE:BCS) and Credit Suisse Group AG (ADR) (NYSE:CS).
FB stock, which was up more than 4%, hit an all time high today of $110.65 before pulling back a bit to finish at $108.83.
Ralph Lauren Corp (RL)
Despite a drop in both earnings and revenue from a year ago, RL stock rose handily today after beating market expectations on both of those fiscal measures.
The NY based clothing company reported earnings of $2.13 per share, down from $2.25 a year ago, but ahead of Wall Street’s view of $1.73. Revenue of $1.97 billion was just a tad lower than the $1.99 billion from a year ago, but ahead of the $1.95 that analysts had forecast.
Saving the day for RL stock was management’s forward guidance of $2.03 billion to $2.07 billion in revenue, above the street’s consensus for $2.04 billion. In addition, new CEO Stefan Larsson has been reorganizing the operations and is trying to save the company at least $100 million per year.
So the analysts were satisfied, and RL shareholders went home happy, as the stock surged nearly 15% today.
Kate Spade & Co (KATE)
KATE stock stormed 9% higher today on a fairly solid earnings report. The handbag and accessories manufacturer posted third-quarter earnings of 6 cents per share on revenue of $275 million. Analysts were only expecting 4 cents per share, but were looking for revenue of $280.02 million. The EPS was 6 cents higher than a year ago, and revenue was up over 26% from the year-ago quarter.
The bottom line was buoyed by a 16% increase in same-store sales. KATE stores have been focusing on going upscale in both its brick and mortar locations and online in recent years.
Prior to today’s action, KATE had been in a slow downtrend over the past six months, falling from $35 per share to a recent low below $18. Perhaps today’s earnings report will turn things around for KATE stock.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
