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Market indexes closed lower for the third-straight session this day, matching last week’s early bearishness before filling in gaps to close the week. The Dow was down 0.48% or 163 points, but that is a huge improvement from the session lows, which saw the blue-chip 30 down 585 points at one point. The S&P 500 came in 0.29% lower on the day, the Nasdaq almost pulled out a win but closed -0.03%, and the small-cap Russell 2000 was -0.78%.
Inflation concerns are still on the rise (pardon the pun), and keeping powder dry before seeing where the next market acceleration will occur is the order of the day. That said, we’ve seen a rather orderly valuation management scheme over the past couple weeks. Perhaps we’ll see some new price points worth buying into tomorrow, but we don’t expect to be putting in a new floor just yet.
The release of the Fed minutes from its last policy meeting from April 27-28 reflected a slight change in attitude — toward accepting policy changes that will begin tightening up “cheap money,” especially as employment growth continued as it had in April. Yet the jobs market disappointed when the numbers came out roughly a week later. That said, we do see things like tapering bond buybacks to be part of the Fed’s discussion going forward.
After the closing bell, Cisco Systems (CSCO - Free Report) beat fiscal Q3 earnings by a penny to 83 cents per share (not a surprise; the company never misses on the bottom line) on $12.8 billion in sales, up from the $12.58 billion in the Zacks consensus and +7% year over year.
However, guidance for Q4 was ratcheted down a bit: 81-83 cents per share is lower than the 85 cents analysts had been expecting. Revenues are expected to grow 6-8%, higher than the earlier 5.5% guide. Shares are down 6.6% in late trading.
L Brands met estimates exactly on both top and bottom lines with Zacks consensus for its Q1 report this afternoon: $1.25 per share and $3.02 billion in sales. The company upped guidance for next quarter, though, to $0.80-1.00 from the 79 cents analysts had been expecting. Victoria’s Secret, which will be spinning off into its own entity, posted comps up 25% year over year. Then again, a year ago was a very tough time for the specialty retailer.
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Image: Bigstock
Markets Come Back, Still Close in Red
Market indexes closed lower for the third-straight session this day, matching last week’s early bearishness before filling in gaps to close the week. The Dow was down 0.48% or 163 points, but that is a huge improvement from the session lows, which saw the blue-chip 30 down 585 points at one point. The S&P 500 came in 0.29% lower on the day, the Nasdaq almost pulled out a win but closed -0.03%, and the small-cap Russell 2000 was -0.78%.
Inflation concerns are still on the rise (pardon the pun), and keeping powder dry before seeing where the next market acceleration will occur is the order of the day. That said, we’ve seen a rather orderly valuation management scheme over the past couple weeks. Perhaps we’ll see some new price points worth buying into tomorrow, but we don’t expect to be putting in a new floor just yet.
The release of the Fed minutes from its last policy meeting from April 27-28 reflected a slight change in attitude — toward accepting policy changes that will begin tightening up “cheap money,” especially as employment growth continued as it had in April. Yet the jobs market disappointed when the numbers came out roughly a week later. That said, we do see things like tapering bond buybacks to be part of the Fed’s discussion going forward.
After the closing bell, Cisco Systems (CSCO - Free Report) beat fiscal Q3 earnings by a penny to 83 cents per share (not a surprise; the company never misses on the bottom line) on $12.8 billion in sales, up from the $12.58 billion in the Zacks consensus and +7% year over year.
However, guidance for Q4 was ratcheted down a bit: 81-83 cents per share is lower than the 85 cents analysts had been expecting. Revenues are expected to grow 6-8%, higher than the earlier 5.5% guide. Shares are down 6.6% in late trading.
L Brands met estimates exactly on both top and bottom lines with Zacks consensus for its Q1 report this afternoon: $1.25 per share and $3.02 billion in sales. The company upped guidance for next quarter, though, to $0.80-1.00 from the 79 cents analysts had been expecting. Victoria’s Secret, which will be spinning off into its own entity, posted comps up 25% year over year. Then again, a year ago was a very tough time for the specialty retailer.
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Infrastructure Stock Boom to Sweep America
A massive push to rebuild the crumbling U.S. infrastructure will soon be underway. It’s bipartisan, urgent, and inevitable. Trillions will be spent. Fortunes will be made.
The only question is “Will you get into the right stocks early when their growth potential is greatest?”
Zacks has released a Special Report to help you do just that, and today it’s free. Discover 7 special companies that look to gain the most from construction and repair to roads, bridges, and buildings, plus cargo hauling and energy transformation on an almost unimaginable scale.
Download FREE: How to Profit from Trillions on Spending for Infrastructure >>