Goodbye and Good Riddance to May

Indie Research

Goodbye to May and good riddance as it was a miserable month for the markets. Stocks rallied in the afternoon, making up a lot of the ground lost earlier in the session but ultimately all three of the name market averages ended up in the red. The economic data released today was mixed bag of so-so numbers, with the ADP private payroll number implying tomorrow's Labor Department jobs report could disappoint. We can hope that June brings with it a change in market sentiment, but we still believe we're in for another choppy summer. If so, we plan to use that time to look for the pockets of opportunity we know are out there.

The Fuel Cell Stocks Index was the top performing tickerspy Index on the day, led by Hoku Corp (HOKU - News) with a 23% gain. The Semiconductor Fabricator Stocks Index was the day's worst performing tickerspy Index, with Semiconductor Manufacturing (SMI - News) down -13%.

Stocks ended the day lower again, with the Dow Jones Industrial Average off by -26 points to 12,394, the S&P 500 shed -3 to close at 1,310, and Nasdaq lost -10 to end the day at 2,827. Oil was also lower, closing at $86.53, down -$1.29 per barrel, while gold dropped by -80 cents to end at $1,562.60 per ounce,

In economic news, the ADP private survey showed private employers added 133,000 new jobs last month, below the 148,000 new jobs economists expected. The Labor Department, meanwhile, reported initial jobless claims rose 10,000 from the previous week for the fourth week in a row. The Commerce Department revised U.S. first-quarter GDP growth to 1.9%, below the 2.2% it initially reported. Finally, the Institute for Supply Management's Chicago-area business index dropped to 52.7 from 56.2 in April. That's the lowest reading since September 2009.

In earnings news, shares of mining equipment maker Joy Global (JOY - News) fell by -5.1% after the company issued full-year guidance of $7.15-$7.45 a share on revenue of $5.5-$5.7 billion. The company posted a fiscal second-quarter profit of $213.6 million, or $2 per share, compared with $162 million, or $1.54 per share, a year earlier. Revenue rose 45% to $1.54 billion. On an adjusted basis, Joy Global earned $2.04 a share. Analysts expected a profit of $1.95 per share on sales of $1.44 billion. Eleven pros counted Joy Global among their top holdings at the end of Q1 and more than 640 tickerspy members own the stock in their portfolios.

Shares of network equipment maker Ciena (CIEN - News) jumped 14.1% after the company reported a narrower fiscal second-quarter loss of -$27.8 million, or -28 cents per share, compared with a net loss of -$62.7 million, or -66 cents per share. On an adjusted basis, Ciena earned 4 cents a share. Revenue climbed to $477.6 million from $417.9 million. Analysts expected an adjusted loss of -3 cents per share on $447 million in revenue. Ciena forecast third-quarter revenue of $455-$485 million. Analysts are expecting $470.4 million.

Watchmaker Movado (MOV - News) posted a fiscal first-quarter profit of $6.6 million, or 26 cents per share, compared with $491,000, or 2 cents per share, a year earlier. Sales increased to $103.7 million from $89.9 million. The company reiterated full-year EPS guidance of $1.15 on revenue of $505-$510 million. Shares of Movado fell -2.7%.

TiVo (TIVO - News) posted a fiscal first-quarter loss of -$20.8 million, or -17 cents a share, reversing a year-earlier profit of $139 million, or $1.04 per share. Revenue jumped to $67.8 million from $45.8 million. Analysts expected a loss of 15 cents a share on revenue of $55.3 million. Shares of TiVo fell -4.7%. Eleven pros counted TiVo among their top holdings at the end of Q1 and nearly 130 tickerspy members own the stock in their portfolios.

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