The stock market enjoyed a resurgence Wednesday amid news out of the Federal Open Market Committee meeting that the Federal Reserve would not increase interest rates at the moment. The fed also changed its agenda to raising rates only twice this year, compared to the four times it had originally put forward.
The S&P 500 enjoyed a 0.56% pop after opening lower, while the Dow Jones Industrial was up 0.43%. Both markets are steadily making their way back to breakeven for the year.
Thursday morning’s stocks to watch includes a trio of companies that just reported earnings. FedEx Corporation (NYSE:FDX) shares were rising ahead of the bell, while Jabil Circuit, Inc. (NYSE:JBL) and Williams-Sonoma, Inc. (NYSE:WSM) were looking a little sickly.
Here’s what’s relevant ahead of Thursday’s action:
FedEx Corporation (FDX)
Humpday was kind to FedEx shares as the company released better-than-expected fiscal third-quarter results.
The delivery services company posted earnings per share of $2.51 on revenue of $12.7 billion. Both figures were enough to top Wall Street estimates for $2.34 per share on $12.38 billion, respectively.
More demand for FedEx’s services, strong sales in the company’s ground business and lower prices on fuel and currency exchange rates helped boost the company’s revenue.
FDX shares were set to open 5% higher on Thursday, which would help extend an already 10% rebound out of a mid-February trench. Shares could soon be testing resistance at the 200-day moving average around $153.
Jabil Circuit, Inc. (JBL)
Jabil Circuit shares were taking a hit after the electric manufacturing services provider released not-so-impressive fiscal Q2 earnings.
JBL reported profits of 57 cents per share on revenue of $4.4 billion, both of which fell under respective estimates of 60 cents per share and $4.5 billion.
Demand for the company’s products were lower than expected, especially in Jabil Circuit’s mobility branch.
Also troubling was forward guidance, which included Q3 projections of 12 to 18 cents per share — well off estimates of 51 cents per share — on sales of $4.1 billion to $4.3 billion in revenues, which also fell shy of expectations for $4.75 billion in revenues. For the full year, Jabil’s forecast of $18.5 billion for the year came in $1.5 billion lower than an earlier estimate.
The Tampa Bay Business Journal nodded to the idea that partner Apple Inc. (AAPL) could be to blame for the low projections.
JBL stock was down 6% in Thursday premarket trading.
Williams-Sonoma, Inc. (WSM)
WSM shares were also looking weak in Thursday premarket action, again thanks to earnings.
Williams-Sonoma posted fourth-quarter earnings of $1.55 per share on revenue of $1.59 billion, with both figures falling a little short of estimates for EPS of $1.58 and sales of $1.62 billion. First-quarter earnings projections for 48 to 52 cents per share also fell below the Street mark for 55 cents.
WSM shares had rallied some 20% since mid-January, but are poised to give up most of those gains if the stock’s 24% in premarket losses stand.
