U.S. markets closed out the Month of October with a moderate loss today. However, October, which often is a tough period for stocks, was up 9%, making it the best October performance in four years.
In economic news, the personal consumption expenditures (PCE) price index dropped 0.1% in September, the first decline since last January. This indicator is important because it’s one that the FED often uses to measure inflation.
In addition, personal income rose 0.1% in September, and the October consumer sentiment index had a reading of 90.0, missing expectations of 92.5. None of these economic reports were really strong enough to move the markets one way or the other.
Chevron Corporation (NYSE:CVX) posted earnings that beat the street estimates, but added a dour note by telling analysts the company will cut between 6,000 and 7,000 jobs.
The Dow Jones Industrial Average finished the day down 0.5%, as did the S&P 500. The Nasdaq wasn’t much better, losing 0.4%. Sectors were about evenly mixed, with energy stocks showing some good strength.
Earnings were once again an important driver of many individual stocks, and LinkedIn Corp (NYSE:LNKD), LendingClub Corp (NYSE:LC) and First Solar, Inc. (NASDAQ:FSLR) were scorching hot after posting their earnings. Here’s the full story of why they are three of today’s best stocks.
LinkedIn Corp (LNKD)
LNKD stock surged 11% after the online professional network site posted third-quarter earnings of 78 cents per share, absolutely crushing the street’s estimation of 46 cents per share. In addition, revenue of $780 million was well ahead of the forecasts for only $756 million.
LNKD added to the upbeat news by raising full year guidance on revenue from $2.94 billion to a range of $2.975-$2.98 billion.
Further boosting the stock was a bullish note from KeyBanc Capital Markets, Inc. which maintained an “overweight” rating, but lifted the price target from $250 to $280.
LendingClub Corp (LC)
Another big winner today was online lending website, LendingClub, after reporting third-quarter earnings of 4 cents per share and beating analysts’ estimates of 2 cents. LC stock rose 4% on the day.
LC also saw a huge 104% increase in revenue year-over-year to $115.1 million, ahead of the $107.95 million estimation from the street. LendingClub also upped its fourth-quarter revenue guidance from the previous range of $122 million-$124 million to $128 million-$130 million. These numbers were significantly above the street’s estimates for $123.06 million.
LendingClub now boasts more than 1.2 million customers, and the company continues its solid growth.
First Solar, Inc. (FSLR)
FSLR shareholders had a sunny disposition after the manufacturer of solar energy products reported third-quarter earnings of $3.38 per share on revenue of $1.27 billion. FSLR stock finished nearly 12% higher.
Wall Street analysts must have been asleep at the sundial on FSLR stock, as they were expecting earnings of only $1.55 per share on revenue of $1.11 billion.
In addition, First Solar simply annihilated its previous 2015 earnings forecast of $3.30 to $3.60 per share, telling Wall Street their new projection is for $4.30 to $4.50 per share.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
