Exports a Culprit

Indie Research

Stocks finished the day near breakeven on a relatively quiet day on Wall Street. The overall earnings news was generally mixed, while economic news out of Germany, the European Union's strongest nation, has started to show that the country's economy is starting to slow. The culprit today was a drop in exports. We would be a little more cautious on stocks in the near term after a solid few-day run in the market.

The Dairy Product Stocks Index was the top performing tickerspy Index on the day, led by Dean Foods (DF) with a 41% gain. The Dotcom Travel Stocks Index was the day's worst performing tickerspy Index, with Orbitz Worldwide (OWW) down -26%.

Stocks finished the day mixed, with the Dow up 7 points to 13,176 and the S&P edging up 1 point to 1,402. The Nasdaq, meanwhile, lost -5 points to close at 3,011. Oil fell -32 cents to $93.35 a barrel, while gold rose $3.20 to $1,616.00 an ounce.

In economic news, the Labor Department reported that worker productivity rose 1.6% in the second quarter following a -0.5% decrease in the first quarter. Economists were expecting a 1.5% increase.

In earnings news, department store operator Macy's (M) said its fiscal second-quarter profit rose to $279 million, or 67 cents per share, from $241 million, or 55 cents per share, a year earlier. Revenue increased to $6.12 billion from $5.94 billion a year ago. Same-store sales rose 3%. Analysts had expected a profit of 64 cents per share on revenue of $6.13 billion. The company raised its full-year EPS guidance to $3.30-$3.35 from $3.25-$3.30. Analysts were expecting EPS of $3.36. Shares of Macy's rose 2.7%.

Apparel retailer Ralph Lauren (RL) said its fiscal first-quarter profit rose to $193.4 million, or $2.03 per share, from $184.1 million, or $1.90 per share, a year earlier. Revenue climbed to $1.59 billion from $1.53 billion. Analysts had expected a profit of $1.78 a share on revenue of $1.58 billion. Looking forward, the company expects FQ2 revenue to decline by a mid-single digit percentage, while analysts were looking for a 4% increase. Shares of Ralph Lauren fell -1.2%. Twenty-four pros held Ralph Lauren in their portfolios at the end of Q2 and nearly 170 tickerspy members own the stock in their portfolios.

SodaStream International (SODA) said its second-quarter profit surged to $9.5 million, or 45 cents per share, from $6.6 million, or 32 cents per share, a year earlier. Revenue, meanwhile, climbed to $103.0 million from $69.1 million. Analysts had expected a profit of 43 cents per share on $89.6 million in revenue. The company said it expects net income to increase 55% this year compared with previous guidance that called for a 50% jump. The new guidance works out to $42.6 million. SodaStream also said it expects revenue to rise 40%, up from previous guidance that called for a 33% jump. The new estimate works out to revenue of $404.6 million. Analysts were expecting net income of $41.6 million and $378.3 million in revenue. Shares of SodaStream fell -0.7%.

Shares of STEC (STEC) plunged 7.7% after the solid-state drive maker said it expects a fiscal third-quarter loss of -27 to -31 cents a share on revenue of $40-$42 million. Analysts were expecting a loss of -19 cents a share on revenue of $49.3 million. STEC posted a second-quarter loss of -$49.6 million, or -$1.07 per share, compared with a $9.7 million, or 18-cent per share, profit a year earlier. On an adjusted basis, STEC lost -27 cents on revenue of $40.7 million. Analysts had expected a loss of -26 cents a share. Two pros counted STEC among their top holdings at the end of Q2 and more than 500 tickerspy members own the stock in their portfolios.

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