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Buffett Buys Teva; Western Wear Chain Spikes

Stock futures took an early tumble in extended trade Tuesday but quickly recovered into mixed territory. Reports that North Korea had “suspended” talks with South Korea initially rattled the post-market session, after a day in which investors were already fretting over rising bond yields and a strengthening dollar.

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Dow Jones futures narrowed a 0.9% decline to a fraction below fair value. S&P 500 and Nasdaq 100 futures were toggling in and out of negative trade in Tuesday’s late stock market action.

Teva (TEVA) stock futures were among the biggest movers in extended trade. The Israel-based drugmaker jumped 4.6% after regulatory filings showed Warren Buffett’s Berkshire Hathaway (BRKA) boosted its stake in the company to 40 million shares during the first quarter. Berkshire had reported 18.8 million shares of Teva in Q4.

Boot Barn Holdings (BOOT) kicked up an 8% gain in after-hours trade. The Irvine, Calif.-based western wear chain reported strong fiscal fourth-quarter sales and earnings beats, including a 12.1% leap in same-store sales. Shares ended Tuesday in a buy range above a 20.41 buy point in a three-month cup base.

Among earnings reports scheduled early Wednesday, solar component maker Canadian Solar (CSIQ) is expected to post a triple-digit EPS gain, to 47 cents. The company is headquartered in Canada, but its manufacturing operations are in China. The stock is below a 17.70 buy point in a flat base. The base is formed in a longer-term consolidation. Shares dipped a fraction lower in extended trade.

Also on the earnings calendar, Macy’s (M) traded a fraction lower ahead of its Q1 results due early Wednesday. Analyst expect a third quarter of recovering earnings, with revenue growth holding to less than 1%. Macy’s is trading up 72% from a November low.

Economic Data: Crude Oil Prices, Homebuilders In Focus

Weak-ranked industries had posted Tuesday’s biggest gains, which is generally not a sign of market strength. The Food-Dairy Products group — which ranks dead last among the 197 industry groups tracked by Investor’s Business Daily — vaulted 4.8% in the session’s strongest advance. The No. 22-ranked oil and gas drillers group also scored one of the day’s best gains, as U.S. benchmark West Texas intermediate oil prices ticked up 1% to just below the 42-month high set on Thursday. Within the group, Rowan (RDC) and Helmerich & Payne (HP) each rose about 3%. Helmerich & Payne is below a 74.46 buy point in a cup-with-handle base.

Oil prices traded flat late Tuesday, despite data released by the American Petroleum Institute showing an unexpected buildup in weekly oil inventories. The API data often foreshadow results from the Energy Information Administration’s weekly crude stockpiles report, which is due out Wednesday morning.

Tuesday’s hardest-falling industry, homebuilders will go another round on Wednesday with April housing starts and building permit data due out midmorning. Tuesday’s strong reading on builder confidence for May from the National Association of Home Builders did little to buffer the group from the effect of a rise in bond yields, which are back above 3% and to their highest level since 2011.

William Lyon Homes (WLH) tanked 7.4%. D.R. Horton (DHI) collapsed 6.7%, the second-worst decline among S&P 500 stocks. Agilent Technologies (A) took the hardest hit among S&P 500 names, down nearly 10%.

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