So the Dow finally closed lower at the bell on Thursday, and the Q2 earnings juggernaut finally brought some less-than-positive news. Market futures were up in the pre-market Friday although they are mixed-to-flat through the late mornings, so perhaps we’re seeing a bounce-back as the trading week ends?
We shall see.
After yesterday’s close, Starbucks Corporation (SBUX) and AT&T Inc. (T) met earnings expectations but came in light on revenues. Chipotle Mexican Grill, Inc. (CMG) missed on both top and bottom lines, and Visa Inc (V) beat on both sales and earnings estimates, but the Dow finally finished in negative territory for the first time in more than a week.
This morning we’re seeing more mixed results from Q2 earnings season, with Stanley Back & Decker, Inc. (SWK) beating on both top and bottom lines, while Skechers USA Inc (SKX) is down 22% following a miss on both earnings and revenues. The company blamed higher taxes in Brazil and a fire in Malaysia for its quarterly difficulties.
American Airlines Group Inc (AAL) was able to lower costs more than 3% on the way to a quarterly earnings beat. The airline major also beat on quarterly sales figures, though both top and bottom lines are down from a year ago.
Next week we shall see earnings results from many big tech firms in what will amount to the busiest week of quarterly numbers of the entire calendar Q2. And with the market (at least on the Dow) taking a breather, perhaps this is a good time to take stock of stocks in our portfolios.
For some assistance, check out Zacks Director of Research Sheraz Mian’s latest Earnings Trends report.
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