U.S. markets were once again on the negative side of the big board today, as investors seemed timid to take new positions ahead of the weekend. There was little news today to move the markets, but speculation as to whether the Fed will or won’t raise interest rates continues to dominate the talk on Wall Street.
The August University of Michigan consumer confidence reading came in at 91.9, a decline from July’s 93.1 reading, and below expectations of 93.
The Dow Jones Industrial Average lost 0.5%, but the S&P 500 finished flat and the Nasdaq actually managed to gain 0.3%. The S&P 500 formed the feared “death cross” in the morning, as the 50-day moving average fell below the 200-day MA for the first time in four years. Sectors were about 50/50 black vs red, and energy and basic materials were the best on the day.
Favorable earnings news was still propelling some stocks higher. Big Lots, Inc. (NYSE:BIG), Smith & Wesson Holding Corp (NASDAQ:SWHC) and Seadrill Ltd (NYSE:SDRL) were three that proved that point.
Big Lots, Inc. (BIG)
BIG stock made a big move today after reporting a second-quarter earnings beat. Profits of 40 cents per share were ahead of analysts’ estimates for 34 cents a share. In addition, revenue of $1.21 billion was slightly above the Street view for $1.20 billion. The stock blistered up 15% on the news.
Big Lots also reported guidance for the third quarter, saying it would suffer a net loss of 1 cent to 4 cents a share. BIG also announced that a quarterly cash dividend of 19 cents per common share will be payable on Sept. 25 to shareholders of record as of the close of business on Sept. 11.
Smith & Wesson Holding Corp (SWHC)
SWHC stock shot ahead more than 10% after the manufacturer of firearms joined in on the quarterly joy-fest. Q1 profits of 32 cents a share beat a 22-cent mark, while revenue of $147.76 million also was better than the analysts’ view of $142.76 million.
Smith & Wesson also said it should report earnings of 16 cents to 18 cents per share, on revenue of $135 to $140 million, in the fiscal second quarter, to beat analyst estimates.
SWHC stock has been a solid performer since April, when it bottomed around $12.50 a share.
Seadrill Ltd (SDRL)
A strong rise in energy prices was pushing a lot of oil stocks higher today, and Seadrill was one of the standouts, rising more than 6% on 24 million shares. Other stocks, such as Chesapeake Energy Corporation (NYSE:CHK) and Transocean LTD (NYSE:RIG) were also up big on the day.
On Thursday, the offshore drilling contractor reported earnings that were 12 cents above analysts’ expectations, but failed to match the Street estimates on revenue.
SDRL stock has been in a downtrend since May, falling from $15 a share to a recent low below $7.
As of this writing, Ethan Roberts does not hold a position in any of the aforementioned securities.
