Stocks near records; Wal-Mart tops estimates; DreamWorks and Hasbro in talks
Wall Street is aiming for more records this morning. The Dow Jones Industrials (^DJI) and the S&P 500 (^GSPC) are flirting with new highs.
Wal-Mart (WMT) lending a helping hand to the Dow. The stock is higher after the world’s biggest retailer reported better-than-expected third quarter earnings and revenue. And U.S. sales were higher by half a percent, much better than forecasts.
Other retailer’s ringing in a mixed bag of results.
Kohl’s (KSS) reporting a miss on both its top and bottom lines in the third quarter. Same store-sales fell 1.8% as brick and mortar retailers continue to struggle to drive traffic to their stores. Shares of Kohl's fell in early trading.
J.C. Penney (JCP) stock is also lower this morning. The troubled retailer reported a smaller-than-expected loss in the third quarter as it cut costs. However, revenue missed estimates and same-store sales came in flat as shoppers delayed winter purchases due to the unseasonably warm weather. The company said it expects sales to pick up during the key holiday shopping season.
Yahoo Finance Senior Columnist Michael Santoli says there is reason for retailers to be optimistic this holiday season when you look at certain clues.
“The core retail stocks have performing well relative to the market in the last month or so. The market is sniffing out a potential strong period for the domestic consumer. Those lower gas prices, better job picture, a little more consumer confidence should mean more spending,” Santoli points out.
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Some Deal making also helping lift sentiment.
Warren Buffett’s Berkshire Hathaway (BRK.A) is buying Procter & Gamble's (PG) Duracell division. P&G will get $1.7 billion in cash plus a return of its own stock from Berkshire. That stock is currently valued at almost $4.7 billion.
Related: Warren Buffett bets on copper...CopperTop, that is
And another deal may be in the works. DreamWorks Animation (DWA) shares skyrocketed in early trading. The maker of “Shrek, “How to Train Your Dragon” and other popular animated films is reportedly in talks to be purchased by toymaker Hasbro (HAS). DreamWorks CEO Jeffrey Katzenberg is said to be seeking at least $30 dollars a share. That would value the deal at more than $2.5 billion. Hasbro shares fell on the news.
Related: A new Hollywood toy story? Hasbro in talks to buy Dreamworks Animation
On the economic front, weekly jobless claims still near a 14-year low. The Labor Department reported that first-time jobless benefits rose by 12,000 to 290,000. That was more than economists’ expected.
