Recent, Remarkable Market Run Continues (CMG, NILE, EXPE, PNRA, EMKR, CCME)

The market continued its recent, remarkable run, as early-day losses evaporated after Hosni Mubarak resigned as Egyptian president following 18 days of antigovernment protests. Outside the first day of tensions, the market hasn’t really had a huge response to the happenings in Egypt, and the ultimate outcome of the situation still has yet to play out. While the market continues to rally, there are some growing signs that indicate that investors should at least be a little cautious, including increased inflation and rising yields on the 10-Year Treasury, which has now risen about 65 basis points since the start of December and over 25 basis points this month. For a market rally helped fueled by cheap money and low interest rates, this is something to continue to watch, as the Fed may have to switch course sooner than expected, although that is still likely several months away at the earliest.

The Optical Networking Stocks Index was the top performing tickerspy Index on the day, led by Emcore (EMKR) with a 20% gain. The Chinese Advertising Stocks Index was the day’s worst performing tickerspy Index, with China MediaExpress Holdin (CCME) down -11%.

Stocks rose on the day, with the Dow up 44 points to 12,273. The S&P rose 7 points to 1,329, while the Nasdaq jumped 19 points to 2,809. Oil fell -$1.15 to $85.58 a barrel, while gold dropped -$2.10 to $1,360.40 an ounce.

In economic news, the Thomson Reuters and University of Michigan initial consumer sentiment reading for February came in at 75.1, above January’s reading of 74.2. While the February number was in line with what analysts were expecting, it was the highest level since January 2008.

In earnings news, shares of Chipotle (CMG) jumped 4.7% after the operator of quick-casual healthy Mexican food restaurants said its fourth-quarter profit jumped to $46.4 million, or $1.47 per share, compared with $31.6 million, or 99 cents per share, a year earlier. Revenue climbed 25% to $482.5 million from $387.5 million, while same-store sales advanced 12.6%. Analysts were expecting a profit of $1.29 a share on sales of $470.7 million. Fourteen pros held Chipotle in their portfolios at the end of the third quarter ,and more than 450 tickerspy members own the stock in their portfolios.

Blue Nile (NILE) shares dropped -12.2% after the online jewelry retailer said its earnings for the quarter ended January 2nd missed analysts’ expectations and earnings for the current quarter are likely to do the same. For the fourth quarter, Blue Nile posted a profit of $6.2 million, or 41 cents per share, compared with $5.4 million, or 35 cents per share, a year earlier. Revenue rose 12% to $114.8 million. Analysts were expecting a profit of 43 cents on sales of $110.5 million. For the current quarter, Blue Nile is forecasting a profit of 14-16 cents a share on sales of $76.0-$78.5 million. Analysts had been expecting earnings of 20 cents a share on sales of $79.5 million.

Shares of online travel reservations firm Expedia (EXPE) plunged -17.1% after the company said its fourth-quarter profit fell -30% to $71.3 million, or 25 cents per share, from $102.2 million, or 35 cents per share, a year earlier. Revenue climbed 16% to $808.4 million. Excluding one-time items, Expedia earned 32 cents a share compared with 29 cents a year earlier. Analysts were expecting a profit of 36 cents on revenue of $802.6 million.

Panera Bread (PNRA) shares soared 16.5% after the quick-casual bakery-cafe operator said it expects to earn $4.45 a share this year, up from a previous forecast of $4.35 a share and ahead of analysts’ forecasts of $4.40 a share. In the fourth-quarter, Missouri-based Panera earned $36.5 million, or $1.21 a share, compared with $29.7 million, or 95 cents, a year earlier, as revenue surged 17% to $428 million. Analysts were expecting a profit of $1.18 a share. Six pros held Panera Bread in their portfolios at the end of the third quarter and more than 160 tickerspy members own the stock in their portfolios.

Tags: CCME, CMG, EMKR, EXPE, NILE, PNRA