Consolidation a Bullish Signal

Indie Research

It was another mixed day on Wall Street, with the major market averages once again trading near breakeven for a second-straight day. The earnings news was generally good today, while the jobs market continues to show some progress. Meanwhile, we would view the recent market consolidation as a bullish signal.

The Chinese Advertising Stocks Index was the top performing tickerspy Index on the day, led by Charm Communications (CHRM) with a 16% gain. The Semiconductor Fabricator Stocks Index was the day's worst performing tickerspy Index, with Tower Semiconductor (TSEM) down -14%.

Stocks ended the day mixed, with the Dow the lone loser, down -11 points to 13,165. The S&P edged up 1 point to 1,403, while the Nasdaq added 7 points to 2,019. Oil inched up 1 cent to $93.36 a barrel, while gold rose $4.20 to $1,620.20 an ounce.

In economic news, initial jobless claims fell by -6,000 to 361,000 last week. Economists had expected 367,000 jobless claims last week. The four-week moving average now resides at 368,250 claims.

In earnings news, shares of SunPower (SPWR) plunged -10.5% after the solar company lowered its full-year sales forecast to $2.6-$2.8 billion from $2.6-$3 billion. SunPower forecast a third-quarter loss of -5 to -20 cents a share. Analysts were expecting a profit of a penny a share. In the second quarter, SunPower lost -$84.2 million, or -71 cents per share, compared with -$147.9 million, or -$1.51 per share, a year earlier. On an adjusted basis, the company earned eight cents a share. Analysts had expected a loss of -9 cents a share.

Allscripts Healthcare (MDRX) shares surged 18.4% after the healthcare IT firm said it expects full-year EPS of 77-83 cents compared with previous guidance of 74-80 cents. The company still expects revenue of $1.48-$1.52 billion. Analysts were expecting a profit of 74 cents per share and $1.5 billion in revenue. Allscripts said its second-quarter profit fell to $8 million, or 4 cents per share, from $15.9 million, or 8 cents per share, a year earlier. Revenue rose 4% to $370 million. Analysts had expected a profit of 19 cents per share and $373.4 million in revenue. Eight pros counted Allscripts among their top holdings at the end of Q2 and more than 200 tickerspy members own the stock in their portfolios.

Shares of Red Robin Gourmet Burgers (RRGB) soared 12.4% after the company said its second-quarter profit rose to $7.7 million, or 52 cents per share, from $6.9 million, or 44 cents per share, a year earlier. Same-store sales rose almost 1% as overall revenue increased to $223.7 million from $215.8 million. Analysts had expected a profit of 50 cents on revenue of $225.1 million.

Millennial Media (MM) shares jumped 28.2% after the company raised its full-year revenue forecast to $176-$179 million from $173-$176 million. The company's second-quarter net loss widened to -$2.2 million, or -3 cents per share, from -$152,000, or -9 cents per share, a year earlier. Revenue soared almost 76% to $39.4 million. Analysts had expected a loss of -5 cents per share on revenue of $38 million. One pro counted Millennial Media among his top holdings at the end of Q2 and four tickerspy members own the stock in their portfolios.

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