U.S. Markets close in 4 hrs 2 mins

Pre-Markets Surge to Start the Week; Estee Lauder (EL) Beats

Mark Vickery

Monday, August 19, 2019

We expect very few clues to influence investors, not just here in pre-market Monday, but for the entire week. Last week brought more economic data than we’d seen for weeks; now we’ve got a couple weeks longer until August reads in employment, etc. begin to hit the tape.

Major U.S. indexes are surging in today’s early session, continuing from last week’s climb up off the canvas following the worst trading day of the year on Wednesday — see Kevin Matras’ report this morning here for details. Dow and Nasdaq futures are up triple digits at this hour, with the Dow looking to open more than 300 points higher than Friday’s close.

About the biggest potential market-moving factor this week in the symposium at Jackson Hole, WY — this yearly retreat of Fed voting members to discuss rate policy going forward. Currently, the market expects another 25 basis-point rate cut at the Fed’s September meeting, which would bring the nominal rate below 2% for the first time in almost a year. Any language Fed Chair Jerome Powell uses to the positive or negative of this given could influence market trading in wither direction.

As we clean up earnings season this summer, beauty products major Estee Lauder EL once again outperformed expectations. The Zacks Rank #3 (Hold)-rated company posted fiscal Q4 earnings of 64 cents per share on sales of $3.59 billion — easily surpassing the 53 cents per share expected (and two cents higher than the year-ago quarter) on revenues that came in 1.79% higher than the Zacks consensus. The company also raised full-year 2020 guidance.

Estee Lauder has not missed earnings estimates in any quarter for at least the past five years. The stock, which had grown 37.8% year to date — well ahead of the S&P 500 — is up another 6% in early trading today. About the only less-than-great comment to make is that the company did warn that a prolonged trade war between the U.S. and China may provide a negative impact to its numbers. For more on EL’s earnings, click here.

Mark Vickery
Senior Editor

Questions or comments about this article and/or its author? Click here>>

Today's Best Stocks from Zacks

Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2018, while the S&P 500 gained +15.8%, five of our screens returned +38.0%, +61.3%, +61.6%, +68.1%, and +98.3%.

This outperformance has not just been a recent phenomenon. From 2000 – 2018, while the S&P averaged +4.8% per year, our top strategies averaged up to +56.2% per year.

See their latest picks free >>


Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report
 
The Estee Lauder Companies Inc. (EL) : Free Stock Analysis Report
 
SPDR Dow Jones Industrial Average ETF (DIA): ETF Research Reports
 
Invesco QQQ (QQQ): ETF Research Reports
 
SPDR S&P 500 ETF (SPY): ETF Research Reports
 
To read this article on Zacks.com click here.
 
Zacks Investment Research
 
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report