The Broader U.S. stock market posted slight gains as financial stocks continued their rally with a 0.9% lift. The S&P 500 Index improved by 0.2%, the Dow Jones Industrial Average gained 0.1% and the Nasdaq Composite surged 0.4%, with more new highs the order of the day.
Heading into the final trading day of the week, Broadcom Ltd (NASDAQ:AVGO), Wynn Resorts, Limited (NASDAQ:WYNN) and Restoration Hardware Holdings Inc (NYSE:RH) are all in the spotlight.
Here’s what investors should know heading into Friday’s trade:
Broadcom Ltd (AVGO)
AVGO shares are up solidly in Friday’s early trade after a fiscal fourth-quarter beat and the announcement of a much, much higher dividend.
Broadcom earned $3.47 per share in Q4, topping estimates by 9 cents per share. Meanwhile, revenues of $4.15 billion were up 124% and better than analysts’ expectations for $4.12 billion.
Meanwhile, Q1 revenue guidance of $4 billion to $4.15 billion were better than the consensus too. Wall Street was looking for $3.96 billion.
One note of worry, though, was that margins shrunk from 62% to 60.8%.
Broadcom also rewarded shareholders by plumping up its dividend. AVGO’s regular payout will double to $1.02 per share.
AVGO shares were up 6% in Friday’s premarket action.
Wynn Resorts, Limited (WYNN)
WYNN shares — as well as stock of rivals Las Vegas Sands Corp. (NYSE:LVS) and MGM Resorts International (NYSE:MGM) — were on the bounce Friday morning after Macau refuted an unerving report.
On Thursday, the South China Morning Post reported that China UnionPay cardholders would be subject to a smaller daily limit on withdrawals in the gaming hub of Macau. Previously, the limit was 10,000 patacas, but that would be lowered to 5,000, according to the report.
The limits were thought to be yet another action on China’s part to stem the tide of capital exiting the mainland.
LVS and WYNN dropped by double digits on the news, while MGM lost about 5%.
However, shares were recovering on Friday morning after Macau denied the report, saying that while individual ATM withdrawals would be halved, daily limits would be kept at current levels. China UnionPay confirmed Friday that daily maximums were staying pat.
WYNN was about 7% higher heading into the open.
Restoration Hardware Holdings Inc (RH)
Restoration Hardware Holdings stock fell sharply as the company updated its full-year outlook.
For the fiscal year 2016, the company cut its earnings to now be in the range of $1.19 to $1.29 per share, lower than the $1.60 to $1.80 per share it previously expected.
The home furnishings retailer said that the delayed delivery of big catalogs are to blame for the lower guidance. The November election led to “consumer softness,” according to the company.
Many catalogs arrived at its customers’ doorsteps later than anticipated, while its holiday items did not sell as well as Restoration Hardware had anticipated.
Sales will either remain flat or grow by 1% year-over-year. The company previously anticipated sales for the year to grow in the range of 1% to 3%.
RH shares were off 18% on Friday morning.
