STTG Market Recap May 19, 2015 – Stock Trading To Go
It was a very quiet session at the index level for the markets as the S&P 500 fell 0.06% and the NASDAQ 0.17%. Indexes stayed around the flat line all session. There are Federal Reserve minutes to be released tomorrow but there is a slow down of macro news right now. April’s housing starts totaled 1.135 million in April, nearly a seven-and-a-half year high and above the 1.020 million estimate. The beat follows weak readings of little above 900,000 in February and March.
Indexes are in the same place where they were yesterday:
In terms of sector, U.S. regional banks (ETF: KRE) had a move out of a range today.
Wal-Mart (WMT) closed down after reporting earnings of an adjusted $1.03 per share for the first quarter, 1 cent below estimates, with revenue also below forecasts. Comparable-store sales also registered a lower-than-expected increase for the quarter.
Here are some stock charts courtesy of Marketsmith:
Home Depot (HD) had an interesting day technically as it posted earnings. Much like the NASDAQ a few weeks back it had a bearish “outside reversal day” where the stock trades above previous day’s highs intraday but then closes below previous days lows. Often this leads to negative action in the following weeks.
The home improvement chain reported adjusted quarterly profit of $1.16 per share, 1 cent above estimates, with revenue also above forecasts. Same-store sales were also better than expected, and Home Depot raised its full-year earnings and sales forecasts.
Urban Outfitters (URBN) tumbled 15%, the most since January 2012, to a four-month low after the apparel retailer’s first-quarter profit and sales missed analysts’ forecasts.
Cheetah Mobile is one of these smaller Chinese companies we’ve been highlighting the past few weeks as standing out – today it had earnings.
Cheetah Mobile (CMCM) reported better-than-expected Q1 earnings and its stock hit a new high, but the Chinese security vendor guided Q2 revenue slightly below Wall Street views. The company reported earnings per share excluding items of 9 cents, up 125% from the year-earlier quarter. Revenue jumped 113% to $108.5 million, marking the 11th quarter in a row of triple-digit gains. Analysts had expected EPS ex items of 5 cents and $106.2 million in revenue.
For the current quarter, Cheetah Mobile expects revenue of $126.6 million to $128.2 million, up 106% to 109%. Analysts had forecast $128.8 million in revenue.
Cheetah Mobile provides mobile and PC applications that offer security and anti-virus protection. Chinese software company Kingsoft Internet Software spun it off in an initial public offering on May 8, 2014, that raised $168 million. The company’s mobile revenue increased 584% year over year to $59.3 million, accounting for 55% of its total. Revenue generated outside China contributed 38% of total sales and 70% of mobile revenue in the quarter.
500.com (WBAI) is another Chinese name which provides online sports lottery services. This is a strange one as it was up 30% on earnings despite telling people a large part of their business has been suspended by the government. Head scratcher.
Since March 2015, all provincial sports lottery administration centers to which the Company provides sports lottery sales services have temporarily suspended accepting online purchase orders for lottery products. As a result of the provincial sport lottery administration centers’ decision to temporarily suspend accepting online lottery orders, or the temporary suspension, 500.com’s transaction volume decreased significantly. The Company recorded operating loss for the first quarter of 2015 and is currently not generating any revenue due to the temporary suspension.
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STTG Market Recap May 19, 2015 – Stock Trading To Go
