Resilient Market Requires Patient Buyers

Indie Research

Stocks continue to remain resilient, pushing higher after a strong ISM number. Not all the economic data was bright and cheery, though, as construction spending was weak. While somewhat mixed, earnings were generally good. We're still looking for a spring/summer pullback before a solid end to the year, and trying to remain patient on the buying front.

The LED Stocks Index was the top performing tickerspy Index on the day, led by Nexxus Lighting (NEXS - News) with a 27% gain. The Nutrition Product Stocks Index was the day's worst performing tickerspy Index, with Herbalife (HLF - News) down -20%.

Stocks rose on the day, the Dow up 66 points to 13,279. The S&P jumped 8 points to 1,406, while the Nasdaq climbed 4 points to 1,406. Oil climbed $1.29 to $106.16 a barrel, while gold slipped -$1.80 to $1,662.40 an ounce.

In economic news, the Institute for Supply Management's factory index surged to 54.8 last month, easily topping the reading of 53.0 expected by economists. The April reading is the highest since June 2011. The Commerce Department, meanwhile, said construction spending inched up 0.1% in March following a revised -1.4% decline in February. Economists had expected a March increase of 0.5%.

In earnings news, Internet photo publishing firm Shutterfly (SFLY - News) reported a first-quarter loss of -$10.0 million, or -29 cents per share, compared to a loss of -$7.8 million, or -27 cents per share, a year earlier. Revenue climbed to $91.3 million from $57.2 million. Analysts had expected a loss of -34 cents per share on $84.5 million in revenue. The company forecast a second-quarter loss of -33 to -37 cents a share on revenue of $90-$92 million. Analysts were expecting a loss of -28 cents a share on revenue of $88.5 million. For the full year, Shutterfly expects to earn 7-16 cents a share on revenue of $576-$586 million. Analysts were expecting a profit of 29 cents on $556.2 million in revenue. Shares of Shutterfly rose 0.3%.

Shares of computer network security company Sourcefire (FIRE - News) surged 13.1% after the company said its first-quarter revenue climbed 50% to $46.3 million from $30.8 million. Sourcefire reported a profit of $67,000, or breakeven on an EPS basis, compared with $460,000, or 2 cents per share, a year earlier. The company earned $3.4 million, or 11 cents per share, on an adjusted basis. Analysts had expected a profit of 8 cents per share on revenue of $41.5 million. Sourcefire forecast a second-quarter profit of 12-14 cents on revenue of $46.5-$48.5 million. Analysts were looking for a profit of 13 cents per share on revenue of $46.3 million.

Shares of Veeco Instruments (VECO - News) soared 15.3% after the company's first-quarter results topped Wall Street expectations. For the quarter, the LED equipment maker earned $16.4 million, or 42 cents per share, compared with $52.6 million, or $1.24 per share, a year earlier. On an adjusted basis, Veeco earned $19 million, or 49 cents per share. Revenue slid to $139.9 million from $254.7 million. Analysts had expected a profit of 19 cents per share on revenue of $124.3 million. For the second quarter, Veeco forecast an adjusted profit of 29-48 cents per share on revenue of $120-$145 million. Analysts were expecting a profit of 21 cents per share on revenue of $125.4 million. Four pros counted Veeco among their top holdings at the end of Q4 and more than 250 tickerspy members own the stock in their portfolios.

Shares of P.F. Chang's China Bistro (PFCB - News) jumped 29.7% after the company agreed to sell itself to private equity firm Centerbridge Partners for $1.1 billion. Centerbridge will pay $51.50 per share for P.F. Chang's. That's a 30% premium to where the shares closed on Monday. Two pros counted P.F. Chang's among their top holdings at the end of Q4 and more than 50 tickerspy members own the stock in their portfolios.

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