U.S. markets began the day strongly, but pulled back somewhat after consumer sentiment dropped 4.6% in February, and below market expectations. The previous reading of 98.1 in January was the highest in 11 years.
On a more positive note, U.S. import prices fell 2.8% last month, mostly due to falling oil prices. It was the biggest decline since 2008, and the seventh straight month that import prices have fallen.
The Dow Jones Industrial Average traded above 18,000 for the first time in 2015, finishing the day 0.26% higher. The S&P 500 rose 0.40%, and the Nasdaq was up 0.75%. Basic Materials and energy stocks, which have been very strong over the last few weeks, led all sectors once again.
All in all, it was a decent if not spectacular day, and Baidu Inc (ADR) (NASDAQ:BIDU), Groupon Inc (NASDAQ:GRPN) and King Digital Entertainment PLC (NYSE:KING) are three noteworthy stocks that led the markets with solid performances.
Baidu Inc (ADR) (BIDU)
After falling more than 6% in the two previous sessions, BIDU stock rebounded today, up more than 5% in the morning, before finishing the day more than 3% higher overall.
Traders were clearly buying the dip, after disappointing fourth-quarter earnings on the No. 1 Chinese search engine sent BIDU stock shares lower Thursday. Net profit and revenue guidance were both weaker than what the Street wanted. Still, traders were convinced that BIDU stock was now a bargain, sending the stock back above its 200-day moving average.
Groupon Inc (GRPN)
GRPN stock gave investors a bargain today, as the online coupon company bested analysts’ estimates after the closing bell Thursday with their Q4 2014 earnings of 6 cents per share, or 3 cents above the market’s view. Revenue of $925.4 million also was above the analysts’ view of $908.6 million.
The initial weaker-than-expected forward guidance of breakeven to 2 cents per share on $790 million to $840 million sent GRPN stock tumbling more than 8% premarket trading. But the stock recovered nicely in the morning, and by day’s end GRPN had soared nearly 7% higher on volume of 53.1 million shares.
GRPN stock gapped up from $6 to $7.25 in November, but had been trading sideways before today’s breakout. The stock is now close to its recent peak at $8.30.
King Digital Entertainment PLC (KING)
King Digital was one of the kings of the stock market today, as KING stock rose more than 13% on 15.1 million shares, about seven times its average volume. The creator of Candy Crush and other popular online games announced fourth-quarter 2014 earnings of 52 cents per share, trouncing the Zacks Consensus Estimate of 37 cents. In addition, full year’s earnings of $1.79 per share was slightly better than the $1.75 earned in 2013.
Although revenue was down 9.3% to $546 million for the year, it still beat the estimate of $519 million. The company also reported increases in the numbers of monthly unique and active users.
The solid earnings put to rest the view of some analysts that KING is simply a one hit wonder with its Candy Crush game. One report notes that 93 million people are now playing Candy Crush Saga more than 1 billion times per day.
As of this writing, Ethan Roberts did not hold a position in any of the aforementioned securities.
