STTG Market Recap July 29, 2014 – Stock Trading To Go
Indexes continue to stagnate in July as the S&P 500 fell 0.45% and the NASDAQ 0.05% due to a late day selloff. Sanctions versus Russia were heightened by the U.S. and Europe which some point to for the late selling. (Obama spoke on TV) The Conference Board’s measure of consumer confidence came in Tuesday at 90.9 in July, the highest reading since October 2007.
Not much movement in these indexes for the month of July; this month has been about trying to find individual stories as the indexes don’t go anywhere.
The NYSE McClellan Oscillator has now moved into the first band of oversold.
One group taking it on the chin the past 2 days (even as the indexes hold up) are the transports.
Today’s culprit was UPS (UPS) which reported numbers that did not impress. That said this was not a case of a major miss in revenue; just higher costs. Technically you can see why the stock fell to where it did – it is now right above the very key 200 day moving average.
Earnings came in at $1.21 per share, which was below analysts’ estimates for $1.25. Management cut is full year earnings guidance to $4.90 to $5.00 from a previous range of $5.05 to $5.30. This is worse than the $5.09 expected by analysts. Q2 revenue increased by 5.6% to $14.26 billion, which was higher than the $14.10 billion expected.
Here are a few charts via Marketsmith..
First we have Twitter (TWTR) which is staging a massive rally of nearly 30% in after hours after reporting earnings. The revenue growth is very impressive; mobile growth is also off the charts.
The firm posted earnings of 2 cents a share, ex-items, compared to a loss of 12 cents a share, ex-items, in the year-ago period. The company also reported a revenue of $312 million, an increase of 124 percent year-over-year. Analysts had expected Twitter to reporta loss of a penny a share on $283 million in revenue.
Monthly average users grew 24 percent year-over-year to 271 million, as of June 30, 2014, the firm said in a release. Ad revenue increased 129 percent year-over-year, to a total of $277 million, of which 81 percent came from mobile advertising.
Next up is Wynn Resorts (WYNN) which has a major Asian presence. Asia has been carrying them for years but in today’s report we actually saw positive news out of Las Vegas.
Wynn Resorts Ltd.’s second-quarter earnings increased 57 percent, bolstered by strong results in Las Vegas. The casino operator’s adjusted profit topped analysts’ estimates, but revenue missed Wall Street’s view. Revenue in Macau — the only place in China where gambling is legal — rose 3 percent. Las Vegas revenue increased 12.5 percent, helped by a strong gain in casino revenue and higher revenue from rooms, food and drinks.
Last we mentioned the Herbalife (HLF) in yesterday’s recap – you can see the results on the stock today.
Fun fact: Did you know that a THIRD of Americans had debt in collections in 2013?
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STTG Market Recap July 29, 2014 – Stock Trading To Go
