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Macy’s Beats on Earnings; Sony Sound-Off; Tesla Reverses Course

Dan Berman
Hot Stock Minute
Macy’s Beats on Earnings; Sony Sound-Off; Tesla Reverses Course

Macy's (M) beat the street with its earnings which came out this morning. Analysts were expecting 53-cents a share, but the retailer came in with 55-cents. Revenue matched estimates of $6.39-billion. Both are up considerably from a year ago. Macy's may be benefitting from the virtual collapse of its competitor JC Penney (JCP). Both companies are still in a tug of war over Martha Stewart branded merchandise. Macy's shares are up 23% year-to-date, and sitting at their 52-week highs. Shares have been up about 1% in early trading this morning.

Next is Sony (SNE), which rose nearly 10% yesterday on a plan to split up the company. Hedge fund manager Daniel Loeb wants Sony to spin-off part of its profitable entertainment division. Loeb says the move would unlock the value from things like Sony's movie business and music labels, and could lead to a 60% climb in the company's share price. At this point it appears that his proposal will be brought to Sony's board. Shares of Sony are actually up 80% year-to-date. But they're down almost 60% over the past 5-years.

Boeing (BA) hit a new 52-week high yesterday. The company has now resumed deliveries of its 787 Dreamliner. In addition, repairs on Dreamliners grounded because of faulty batteries should also be finished by month's end. But in a blow to the company, Japan's two biggest airlines are now in discussions with Boeing competitor Airbus to replace aging 777s. Boeing stock is up 25% this year, despite the problems with the 787 which began back in January.

Finally, we look again at one of Wall Street's biggest movers this past week. Tesla (TSLA), which is currently up again in early trading. The stock reversed course yesterday falling more than 5% after starting the day more than 5% in the green. Shares have enjoyed quite a run-up over the past week, climbing 48% in price. The momentum stems from Tesla's Model S sedan, which led the company to its first-ever profit. The car also scored 99 out of 100 in a Consumer Reports test that was released last week