U.S. markets were somewhat listless today, and even the release of the Fed minutes — which showed the policymakers are in no rush to raise interest rates — failed to lift the market a day after the S&P 500 hit new highs. So did a record decline in January’s U.S. Producer Price Index (PPI) of 0.8%, which marked the third consecutive declining month.
The Dow Jones Industrial Average was off 0.1%, the S&P 500 was basically flat, and the Nasdaq was up by 0.14%. The best sector by far today was utilities, with consumer goods and industrial stocks modestly higher. By Wednesday’s end, Boston Scientific Corporation (NYSE:BSX), Angie’s List Inc (NASDAQ:ANGI) and Jack in the Box Inc. (NASDAQ:JACK) were among the day’s best stocks.
Angie’s List Inc (ANGI)
ANGI stock stormed higher by 59% after the Internet-based contractor services list provider reported better-than-expected results. ANGI reported fourth-quarter earnings of 26 cents per share, ahead of analysts’ estimates of 22 cents per share. Revenue of $82.2 million was 19% above last year’s number and above the Street’s forecast of $81.22 million for the quarter.
Angie’s List has fallen on hard times over the last two years. ANGI stock fell from $28 in 2013 to a recent low of $4.36, so this earnings beat is a much-needed breath of fresh air for shareholders.
Boston Scientific Corporation (BSX)
A court settlement between Boston Scientific and Johnson & Johnson (NYSE:JNJ) in which BSX agreed to pay $600 million to resolve a dispute over BSX’s acquisition of Guidant Corporation in 2005, propelled BSX stock over 12% higher today. JNJ had originally sought more than $7 billion in damages, and accused Guidant of reneging on its $21.5 billion deal.
BSX stock has really struggled since acquiring Guidant, and as recently as 2013, shares traded for just $5. But today’s good news saw the medical device company finish the day at $16.68.
Jack in the Box Inc. (JACK)
The fast food chain gapped up better than 7% on stronger-than-normal volume after fiscal first-quarter earnings of 93 cents per share beat analysts’ expectations for 87 cents. Revenues of $468.2 million were up 4.1% year-over-year and also topped the mark. Comparable same-store sales rose 4.4% in the quarter, and a 13% rise in sales at Qdoba Mexican Grill, owned by JACK, also boosted profits.
Interestingly, JACK stock has outperformed its No. 1 rival, McDonald’s Corporation (NYSE:MCD), by more than 50 percentage points over the last six months.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
