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Dow Now 15 Thou; Change Costing Penney; Target’s Online Audience

Dan Berman
Hot Stock Minute
Dow Now 15 Thou; Change Costing Penney; Target’s Online Audience

The Dow is now above 15-thou, ready to open above that threshhold for the first time in history. The index rose to a record yesterday, ending the regular session at 15, 056 points. The S&P also set a closing record at 1,625. Both are now up 14% this year. Do these records mean it's time for a pullback? Or are they fuel for a market that's been on fire? Yahoo! Finance Senior Columnist Mike Santoli explains in the video above what history would suggest.

Some earnings just out this morning: AOL (AOL) missed on EPS posting 32-cents when estimates were for 35-cents. The company did however beat on revenue. Meanwhile, Wendy's (WEN) missed on revenue, but reported earnings of 3-cents a share when you exclude items. That was in line with estimates.

Change is still costing JC Penney (JCP). The company now says sales were down almost 17% in the quarter that just ended last Saturday. The drop is being blamed on ousted CEO Ron Johnson who tried to upend Penney's pricing policy. But business is also down because of construction at hundreds of stores. The company will release its full earnings report next week. Shares were down 3% yesterday. They're down 21% since the start of the year.

Target (TGT) has just put a new arrow in its quiver. It's a plan that aims to get Facebook users in store. Here's how it works: Shoppers bring in a special discount barcode which they'll get through Facebook (FB). They'll be eligible for more discounts by recruiting friends to enter the program. Users will also see what their friends have been buying. The discounts won't be available on Target's website.


Whole Foods Market (WFM) is looking like "whole goodness" up 8% in premarket trading. The company says it bagged earnings of 76-cents a share last quarter, beating estimates by 3-cents. Revenues were in line, topping $3-billion. The king of the upscale supermarkets is reaffirming a full-year forecast of at least 10% sales growth, and also announced a stock split. Prior to the spike we're seeing now, the stock had gained less than 1% since the start of the year.

Next, there may be trouble in the house for online real estate database Zillow (Z). The stock has been swinging since the company reported earnings yesterday afternoon and is now down more than 7%. Zillow missed estimates coming in with a loss of 11-cents a share when the conensus was for just 3-cents. The company did however beat on revenue which was up 71% from a year ago. Zillow says opportunity is knocking with the improving housing market. Realtor subscriptions and mortgage advertising are already up. Zillow took quite a tumble in mid-November, but shares are up 122% year-to-date.

Now, we look at Monster Beverage (MNST) which is going to be reporting earnings after today's closing bell. Monster got jolted again on Monday when San Francisco filed suit against the company, saying it illegally markets high-caffeine products to kids. It's expected to post earnings of 46-cents a share up a nickel from last year. Revenue probably rose about 10%. Shares are currently trading right in the middle of their 52-week range so investors don't seem too spooked by the bad publicity about energy drinks.

Finally, Tesla (TSLA) reports earnings after the closing bell. Shares ended yesterday's session, down 10% from their intra-day high. That nearly erased impressive gains made over the past week. Tesla will be reporting its first-ever profit. We know that because the company made that pre-announcement last month saying sales of its new sedan have topped estimates. Meanwhile, CEO Elon Musk was back on twitter yesterday, downplaying reports that Tesla's teaming with Google (GOOG) on self-driving cars. He wrote, "Creating an autopilot for cars at Tesla is an important, but not yet top priority. Still a few years from production."