Dow Down Last 9 Out of 10

Indie Research

The market gave back earlier gains to once again close lower, as at the end of the day European worries outweighed some solid earnings reports. The Dow has now finished down nine of the last ten trading sessions. We think it is safe to say that we are in the midst of the spring/summer pullback we had been predicting. We're still expecting the market to continue to drift lower.

The Dairy Product Stocks Index was the top performing tickerspy Index on the day, led by Lifeway Foods (LWAY - News) with a 11% gain. The Canadian Mining Stocks Index was the day's worst performing tickerspy Index, with First Majestic Silver (AG - News) down -11%.

Stocks fell on the day, with the Dow down -65 points to 12,630. The S&P lost -8 points to 1,331, while the Nasdaq slumped -9 points to 2,894. Oil slipped -80 cents to $93.98 a barrel, while gold dipped -$3.90 to $1,551.10 an ounce.

In economic news, the Commerce Department said retail sales rose just 0.1% last month compared with a 0.7% increase in March. The rise matched economists' expectations. The Labor Department, meanwhile, said the Consumer Price Index was unchanged in April following a 0.3% increase in March. Excluding volatile food and energy prices, the core index rose 0.2%. The April reading matched economists' expectations. Elsewhere, the National Association of Home Builders/Wells Fargo index jumped to 29 in May, the highest reading since May 2007, topping the reading of 26 economists expected.

In earnings news, sporting goods retailer Dick's Sporting Goods (DKS - News) said its first-quarter profit rose to $57.2 million, or 45 cents per share, from $37.5 million, or 30 cents per share, a year earlier. Revenue climbed to $1.28 billion from $1.11 billion. Same-store sales soared 8.4%. Analysts had expected EPS of 38 cents on sales of $1.23 billion. Dick's raised its full-year guidance to $2.45-$2.48 a share from $2.38-$2.41 a share and said same-store sales will rise 3-4% ahead of a previous forecast of 2% same-store sales growth. Analysts were expecting EPS of $2.43. Shares of Dick's rose 6.0%. Nine pros counted Dick's among their top holdings at the end of Q1 and nearly 100 tickerspy members own the stock in their portfolios.

Shares of discount apparel retailer TJX Cos (TJX - News) surged 6.9% after the company raised its full-year guidance to $2.27-$2.37 a share from $2.26-$2.36. The company said its fiscal first-quarter net income rose to $419.2 million, or 55 cents a share, from $266.0 million, or 34 cents a share, a year earlier. Revenue climbed 11% to $5.8 billion. Same-store sales jumped 8%, and were up 13% in Europe. Analysts had expected a profit of 54 cents on sales of $5.76 billion.

Shares of daily deal purveyor Groupon (GRPN - News) rose 3.7% after the company reported its first adjusted quarterly profit. The company posted a loss of -$11.7 million, or -2 cents per share, versus a loss of -$146.5 million, or -48 cents per share, last year when it was still privately held. Adjusted EPS was two cents, a penny above estimates. Revenue soared 89% to $559.3 million, coming in ahead of the $530.6 million consensus.

Shares of Patriot Coal (PCX - News) plunged -18.4% after the company slashed its forecast for sales of metallurgical coal this year to 3.9 million tons from 4.9 million tons. Analysts at Citi cut their price target on Patriot's stock to $6 from $7 and Barclays cut it to $5 from $6. The shares touched a new 52-week low today. Three pros counted Patriot Coal among their top holdings at the end of Q1 and more than 640 tickerspy members own the stock in their portfolios.

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