Stocks finished off their highs of the day, but still ended in strong form Friday as the S&P 500 gained 0.6%. The Dow Jones Industrial Average could not avoid a weekly loss, extending its weekly losing streak to four, but the blue-chip index rose 0.38%. Thanks to some soaring semiconductor names, the Nasdaq Composite climbed 1.2%.
The dollar rose for a third consecutive week amid ongoing speculation the Federal Reserve will boost interest rates next month, but on Friday investors paid the most attention to retailers and technology stocks.
And that theme explains why Applied Materials, Inc. (NASDAQ:AMAT), Dicks Sporting Goods Inc (NYSE:DKS) and Dillard’s, Inc. (NYSE:DDS) are three of today’s best stocks.
Applied Materials, Inc. (AMAT)
Shares of semiconductor equipment maker Applied Materials surged 13.8% on volume that was more than quadruple the daily average after the company forecast a fiscal third-quarter profit of 46 to 50 cents a share.
Analysts are expecting AMAT to earn 36 cents a share. AMAT said it expects net sales to rise 14% to 18% from the second quarter.
In its fiscal second quarter, AMAT earned 34 cents a share on an adjusted basis on revenue of $2.45 billion. Analysts expected AMAT to earn 32 cents on sales of $2.43 billion.
Dicks Sporting Goods Inc (DKS)
Dicks Sporting Goods saw its shares climb 5.1% on almost triple the usual turnover after the stock earned two upgrades from sell-side analysts.
Goldman Sachs upgraded DKS to a “buy” rating with a $53 price target, implying significant upside from Friday’s close. Morgan Stanley chimed in as well, lifting its rating on DKS to “equal-weight” from “underweight.”
Dillard’s, Inc. (DDS)
Department store operator Dillard’s fought off a slide after a disappointing earnings report to finish higher by 5.8% on heavy volume.
In its most recently completed quarter, DDS earned $2.17 per share, well below the $2.52 a share Wall Street estimate. Same-store sales for DDS declined for a third straight quarter, reports CNBC.
DDS reported a same-store sales decline of 5%, double what analysts expected.
At the time of this writing, Todd Shriber did not own any of the aforementioned securities.
