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World Markets Green on Friday

U.S. stocks were in the green on Friday despite the unemployment rate reaching 14.7%, a number that has not been seen since the Great Depression. The Dow Jones Industrial Average gained 1.33% to 24,192, the S&P 500 Index rose 1.20% to 2,915 and the Nasdaq Composite advanced 1.12% to 9,080.


Non-index stocks have also posted gains and losses recently. Shares of Lear Corp. (NYSE:LEA) gained almost 10% on Friday after the company announced first-quarter results. It posted earnings of $2.05 per share, beating analysts' estimates by 72 cents. Revenue of $4.46 billion registered a 13.6% year-over-year decline and beat expectations by $240 million.

"Our first quarter financial results were significantly impacted by production disruptions stemming from the COVID-19 pandemic," President and CEO Ray Scott said. "We experienced plant shutdowns in China beginning in late January that were followed by shutdowns of almost all our global operations outside of China beginning in mid- to late-March. Excluding the impact of COVID-19, Lear's results reflect solid financial performance in both of our business segments. While significant near-term challenges remain, I am confident in the strength of our underlying business, long-term competitive position and liquidity."

The seating segment recorded margins and adjusted margins of 5.5% and 6.0% of sales for the quarter. In the E-Systems segment, both concepts were 3.0% and 4.8% of sales. Without the negative impact of Covid-19, adjusted margins in each business segment would have been more than 8%.

The company?s financial position was modified by extending its debt maturities and reducing its borrowing costs. Lear issued $350 million worth of bonds due in 2030 and $300 million worth of bonds due in 2049, using the proceeds to redeem $650 million worth of its 2025 bonds. It also extended the maturity of its $1.75 billion revolving credit facility to 2024. Moreover, it suspended share repurchases and its dividend.

The previously announced cash dividend of 77 cents was paid on March 18. Cash and cash equivalents reached $2.45 billion and total available liquidity was $3.2 billion. Further, the net cash provided by operating activities were $222 million and free cash flow was $113 million, compared to $52 million and $(71) million in the prior-year quarter.

In the final quarter of 2019, Joel Greenblatt (Trades, Portfolio) initiated a new position with 3,166 shares. Ray Dalio (Trades, Portfolio) more than tripled his holding to 22,188 shares and Richard Pzena (Trades, Portfolio) boosted his stake by 9% to 4,553,308 shares. Jim Simons (Trades, Portfolio)' Renaissance Technologies trimmed 28% off his position to 90,500 shares.

Gainers

  • Helmerich and Payne Inc. (NYSE:HP) +12%
  • Carrier Global Corp. (NYSE:CARR) +11%
  • L Brands Inc. (NYSE:LB) +10%
  • HollyFrontier Corp. (NYSE:HFC) +9.8%
  • Ventas Inc. (NYSE:VTR) +8.4%
  • Gap Inc. (NYSE:GPS) +7.5%



Losers

  • Fleetcor Technologies Inc. (NYSE:FLT) -3.8%
  • Flowserve Corp. (NYSE:FLS) -2.1%
  • Digital Realty Trust Inc. (NYSE:DLR) -2.4%
  • Host Hotels & Resorts Inc. (NYSE:HST) -2%
  • Ball Corp. (NYSE:BLL) -1.3%
  • Thermo Fisher Scientific Inc. (NYSE:TMO) -1.3%



Global markets

The main European stock markets traded in the green. The U.K.'s FTSE 100 rose 1.40%, France's CAC 40 climbed 1.07%, Germany's Dax gained 1.35% and Spain's Ibex 35 advanced 0.78%.

In Asia, Japan's Nikkei 225 gained 2.56%, India's BSE Sensex jumped 0.63%, Hong Kong's Hang Seng rose 1.04% and China's Shanghai Composite swelled 0.83%.

Disclosure:The author holds no positions in any stocks mentioned.

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This article first appeared on GuruFocus.