The Super Tuesday streak about to be put to the test again. Markets have moved higher for the last twenty Tuesdays. The pattern is unusual and unprecedented. So, how much attention should we be paying to it? Yahoo! Finance Senior Columnist Mike Santoli talks about the streak in the video above.
April numbers on the international trade deficit were released right as we started streaming live to you at 8:30. The Commerce Department says the deficit for the month was $40.29-billion. The consensus ahead of the report had been for $41.5-billion. In March the deficit was $38.8 billion.
It's starting to look like game over for Zynga (ZNGA). Shares are up fractionally at this hour, but they plunged 12% yesterday. Trading even had to be halted for a while on news that the company is laying off 520 people. That's a fifth of its workforce. Rumors of the layoffs began to swirl inside the company on Friday. Then yesterday, emails went out to employees who are losing their jobs. The cuts will bring Zynga's staff down to 2,300 people. That's less than when the company went public back in 2011. The downsizing is expected to save the company $70 to $80-million a year.
Shares of Lululemon (LULU) are up on word the company is back with black. That's right. The yoga outfitter has started restocking stores with its signature yoga pants. You'll of course recall the bottoms had to be pulled back in March because a manufacturing flaw made then see-through. Shares of Lulu rose 2% yesterday and have now climbed almost 25% since the recall. But they've underperformed the market this year, up about 7%.
STOCKS TO WATCH
Dollar General (DG) reported earnings at 7am. The company says excluding items it made 71-cents a share, in line with estimates and up 13% from a year ago. Revenue also came in right around the consensus at $4.23 billion. Shares fell 5% on release of the report. That's because the company is lowering its guidance saying it expects sales to slow. By the way, Dollar General now has more than 10,000 stores in 40 states. Prior to this morning's drop, shares have been up about 25% year-to-date.
Next we go from Dollar General to General Motors (GM). Shares have been up more than 3% since yesterday's closing bell. The climb came on the announcement that the government-backed automaker is going back in the S&P 500. By the way it's replacing H.J. Heinz which is being taken private by 3-G Capital and Berkshire Hathaway (BRK-B). GM shares are now right about where they were when the company held its post-bankruptcy IPO back in November of 2010. The stock is up 63% in the last year.
Now, we look at G-III Apparel (GIII) which is currently trading up 7%. Shares jumped after the company released its quarterly report yesterday afternoon. G-III made 5-cents a share when analysts expected it to lose that much. Revenue was modestly higher than expected, and the company has increased its outlook. G-III has licensing deals with a number of designer brands like Calvin Klein where it's planning a new line of swimwear. It's also going to launch an Ivanka Trump clothing brand. Prior to the climb we're seeing now the stock is up 27% year-to-date, and has shot up 78% over the past year.
Finally, there's Bob Evans Farms (BOBE) which reports earnings after today's closing bell. The company is expected to post 64-cents a share, down from 80-cents a year ago. Revenue is also expected to be down by more than 20%. The company has nearly 600 of its namesake restaurants in 19-states as well as retail shops, similar to Cracker Barrel (CBRL) which blew well past estimates with is earnings report yesterday. Bob Evans' stock hit a new 52-week high last week. It's currently up about 10% year-to-date.
- Investment & Company Information