Wouldn’t Mind a Bit of a Pullback (RAX, FOSL, GT, ZIP, IMAX, LDK)
Stocks were headed for a down day as retail sales came in a bit light and there was a setback in the Greek bailout, as EU leaders cancelled a meeting after Greece’s government failed to deliver on a recent demand by lenders to cut its budget by an additional 325 million euros. Nonetheless, the market held up tough and rallied into the close to finish mixed in what remains a bull market. We actually wouldn’t mind a bit of a pullback from current levels following a very strong run since the end of November to be able to put some new money to work.
The Photographic Equipment Stocks Index was the top performing tickerspy Index on the day, led by Imax (IMAX) with a 11% gain. The Chinese Solar Stocks Index was the day’s worst performing tickerspy Index, with LDK Solar Company (LDK) down -12%.
Stocks ended mixed on the day, with the Dow up 4 points to 12,878. The Nasdaq edged up fractionally to 2,932, while the S&P lost -1 point to 1,350. Oil inched -17 cents lower to $100.74 a barrel, while gold fell -$7.20 to $1,717.70 an ounce.
In economic news, the Commerce Department said retail sales rose 0.4% in January, below the 0.8% increase expected by economists. Excluding auto sales, the number rose 0.7%, above the 0.5% gain economists were expecting. Manufacturing and trade business inventories, meanwhile, climbed 0.4% in December, the Commerce Department said. Economists were expecting an increase of 0.5%.
In earnings news, shares of Rackspace (RAX) surged 12.6% after the company reported a fourth-quarter profit of $25.0 million, or 18 cents per share, compared with $13.5 million, or 10 cents a share, a year earlier. Revenue rose 32% to $283.3 million. Analysts had expected a profit of 15 cents a share on revenue of $281 million. Six pros counted Rackspace among their top holdings at the end of Q4 and nearly 340 tickerspy members own the stock in their portfolios.
Shares of watchmaker Fossil (FOSL) soared 14.7% after the company said its fourth-quarter profit rose to $117.9 million, or $1.87 per share, from $96.7 million, or $1.46 per share, a year earlier. Revenue rose 19% to $830.8 million. Analysts had expected EPS of $1.76 on sales of $842.3 million. The company forecast first-quarter EPS of 90-92 cents and a full-year profit of $5.40-$5.50 and expects first-quarter and full-year sales growth of 15%. Analysts had expected a full-year profit of $5.46 per share on revenue of $2.99 billion and first-quarter earnings of 97 per share on revenue of $617.6 million.
Goodyear Tire & Rubber (GT) posted a fourth-quarter profit of $18 million, or 7 cents per share, compared with a year-earlier loss of -$177 million, or -73 cents per share. On an adjusted basis, Goodyear earned 3 cents a share. Revenue rose 12% to $5.68 billion. Analysts had been looking for a profit of 20 cents on revenue of $5.86 billion. Shares of Goodyear fell -5.2%.
Shares of Zipcar (ZIP) plunged -14.3% after the company forecast first-quarter revenue of $58-$60 million and full-year revenue of $290-$296 million. Analysts were expecting first-quarter revenue of $60.3 million and full-year revenue of $293.2 million. Zipcar reported a fourth-quarter profit of $3.9 million, or 9 cents a share, compared with a year-earlier loss of -$1.1 million, or -17 cents per share. Revenue rose 21% to $62.9 million. Analysts had expected break-even earnings per share and $63.2 million in revenue. One pro counted Zipcar among his top holdings at the end of Q4 and more than 40 tickerspy members own the stock in their portfolios.
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