U.S. markets shrugged off another day of impasse on the Greek debt problem, a weaker than expected retail sales report, and higher jobless claims report, to move higher on news of a cease-fire agreement between Russia and Ukraine.
January retail sales were down 0.8%, although up 0.1% excluding autos, gas, building materials and food services. This was below the street’s estimation for an increase of 0.4%. The Labor Department reported a higher-than-expected rise in initial claims for unemployment benefits of 25,000 to a seasonally adjusted 304,000 last week.
But focusing on the positives, the Dow Jones Industrial Average rose 0.62%, while the S&P 500 was nearly 1% higher, and the Nasdaq climbed 1.16%. Most sectors were in the green today, with Basic Materials, energy, and technology among the strongest.
Another reason for the market’s buoyancy was a batch of strong earnings reports, including Cisco Systems, Inc (NASDAQ:CSCO), and Whole Foods Market, Inc. (NASDAQ:WFM), which, along with Orbitz Worldwide, Inc. (NYSE:OWW), are 3 of today’s best stocks.
Cisco Systems, Inc (CSCO)
CSCO stock gapped up more than 9% to a 7-year closing high of $29.46 after posting seconnd-quarter earnings of 53 cents per share, or 2 cents above analysts’ expectations. Cisco’s revenue of $11.94 billion was also better than the expected $11.8 billion.
The news prompted a price target increase by Oppenheimer Holdings Inc. (USA) from $29 to $30, along with hikes from several other investment banks. CSCO stock has been a steady performer, and is up some 30% since its October lows.
Whole Foods Market, Inc. (WFM)
WFM was quite a tasty stock to own, rising 5% after posting first-quarter earnings of 46 cents per share, up 10% year-over year, and beating estimates of 42 cents per share. Total sales were also up by 10%, to $4.7 billion, above forecasts for $4.68 billion.
WMF stock has been a solid performer the last few months, and has risen 40% since early November. WFM stock was singled out as a trade of the day last month by InvestorPlace’s Jon Markman.
Orbitz Worldwide, Inc. (OWW)
Orbitz, which has recently been looking for a buyer, led all U.S. exchanges today in volume, with 136 million shares traded. OWW stock gapped up more than 22% after announcing they have been purchased by rival Expedia Inc (NASDAQ:EXPE), in a deal worth$1.34 billion. EXPE stock was also up by 15% on the news.
EXPE will pay $12 per share for the online travel-reservation company, and by doing so hopes to challenge Priceline Group Inc (NASDAQ:PCLN), its largest competitor, as the top travel booking website.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
