Markets Reverse Course, Will It Last? (SJM, PLL, MW, TXN, NOK, JVA, IMAX)

While stocks finished off their highs, the major market averages had a solid day, breaking a six-session losing streak. The economic data and few earnings reports were decent, and the lack of bad news was enough to give a boost to an oversold market. We’re still expecting stocks to generally remain in the doldrums this summer, and still expect better opportunities to emerge later this summer.

The Coffee Stocks Index was the top performing tickerspy Index on the day, led by Coffee Holding Company (JVA) with a 43% gain. The Photographic Equipment Stocks Index was the day’s worst performing tickerspy Index, with Imax (IMAX) down -5%.

Stocks rose on the day, with the Dow climbing 75 points to 12,124. The S&P advanced 9 points to 1,289, while the Nasdaq also rose 9 points to 2,685. Oil jumped $1.19 to $101.93 a barrel, while gold added $4.00 to $1,542.70 an ounce.

In economic news, initial claims for jobless benefits rose by 1,000 to 427,000 last week, but economists were forecasting a decrease to 419,000 new claims. Last week was the ninth consecutive week jobless claims have been above 400,000. Elsewhere, the Commerce Department said wholesale inventories rose 0.8% in April, below the 1.0% increase economists were expecting. That compares with a revised March reading of an increase of 1.3%.

In earnings news, J.M. Smucker (SJM), the maker of Jif peanut butter, said its fiscal fourth-quarter profit fell to $94.9 million, or 82 cents per share, from $120.6 million, or $1.01 per share, a year earlier due to acquisition costs. Revenue climbed 11% to $1.19 billion. Excluding one-time items, Smucker earned $1.00 a share. Analysts were expecting a profit of 99 cents on sales of $1.16 billion. The company forecast an adjusted fiscal 2012 profit of $5.00-$5.15 a share. Analysts were expecting a full-year profit of $5.11 on sales of $5.18 billion. Shares of Smucker rose 2.3%. Eleven pros counted J.M. Smucker among their top holdings at the end of Q1 and nearly 170 tickerspy members own the stock in their portfolios.

Pall (PLL), the maker of filtration equipment, said its fiscal third-quarter profit rose 2% to $71.1 million, or 60 cents per share, from $69.7 million, or 58 cents per share, a year earlier. Revenue increased 15% to $709.8 million. Excluding one-time items, Pall earned 72 cents a share. Analysts were expecting a profit of 71 cents on revenue of $668.9 million. The company said it expects its full-year results to come in at the high end of previously issued guidance of $2.80-$2.90 a share. Analysts were forecasting EPS of $2.86. Shares of Pall rose 0.8%.

Apparel retailer Men’s Wearhouse (MW) said its fiscal first-quarter profit rose to $27.2 million, or 52 cents per share, from $13.6 million, or 26 cents per share, a year earlier as revenue surged nearly 23% to $580 million. Same-store sales at its namesake store rose 10.8%. Excluding one-time items, the company earned 53 cents a share, above the 49-cent consensus. Men’s Wearhouse forecast a fiscal second-quarter profit of $1.02-$1.05 a share and a full-year profit of $2.04-$2.12. Analysts were expecting EPS of 98 cents for the second quarter and $2.05 for the full year. The stock rose 5.4%.

Semiconductor firm Texas Instruments (TXN) lowered its second-quarter profit and revenue guidance due to weakness from a major wireless customer, presumably Finnish handset giant Nokia (NOK). Texas Instruments said it expects a second-quarter profit of 51-55 cents a share on revenue of $3.36-$3.5 billion. That’s below previous guidance calling for a profit of 52-60 cents a share on revenue of $3.41-$3.69 billion. Analysts were expecting a profit of 57 cents on revenue of $3.55 billion. Shares of Texas Instruments rose 0.7%. Nearly 40 pros held Texas Instruments in their portfolios at the end of Q1 and more than 540 tickerspy members own the stock in their portfolios.

Tags: IMAX, JVA, MW, NOK, PLL, SJM, TXN