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Market Futures Weaken, Q4 Earnings Stay Robust

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Monday, February 6, 2017

Market futures are down ahead of the opening bell to start the trading week, following an up Friday in which forecasts for increased deregulation in U.S. economic policy and a better-than-expected non-farm payroll report spurred the bulls to higher highs, with the Dow closing just a few basis points shy of a full percentage point. To start the week, we look for follow-through that isn’t readily forthcoming; the S&P 500 is currently -5 points, the Dow -43 and Nasdaq -10.

President Trump’s latest executive order Friday dealt directly with repealing the financial regulatory reform law known as Dodd-Frank, which emerged following the Great Recession that began as a crisis among the “too big to fail” banks. It’s a complicated measure, involving more than half a dozen financial institutions' regulatory bodies, and thus will require more than the stroke of the president’s pen to make its repeal a reality. But that it looks to be directly in the sights of the administration encouraged market participants ahead of Super Bowl weekend.

Q4 Earnings Roundup

Toy-making giant Hasbro (HAS - Free Report) put up a huge beat on earnings and sales in today’s pre-market — its $1.64 per share on $1.63 billion in quarterly revenues easily topped the $1.28 per share and $1.51 billion, respectively, in the Zacks consensus estimates. The Zacks Rank #3 (Hold) company — prior to the earnings release — has navigated a stormy retail space in Q4 and come out ahead. For more details on Hasbro’s earnings beat, click here: Hasbro Tops Q4 Earnings & Revenue Estimates

Meat-producing major Tyson Foods (TSN - Free Report) also impressed the market early Monday morning with an earnings and revenue beat. Earnings per share of $1.59 flew past the Zacks consensus estimate of $1.27, and $9.18 billion in sales topped the $9.03 billion expected. Further, the Zacks Rank #3 stock upped its full-year 2017 guidance (ending in September) to roughly $5 per share. For more on this story, click here: Tyson Q1 Earnings, Sales Beat Estimates, Raise View

For more on how Q4 earnings season has transpired — including what to expect from earnings reports for General Motors (GM - Free Report) and Disney (DIS - Free Report) tomorrow, please read Zacks Director of Research Sheraz Mian’s latest Earnings Preview: All-Time Record Earnings in Q4

Mark Vickery
Senior Editor

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