Back to top

Image: Bigstock

Markets Down as Investors Await Big Data

Read MoreHide Full Article

Monday, May 11, 2020

Market futures are down an hour before today’s opening bell to start a new trading week. This follows a robust Friday in the green, bringing optimism to the weekend despite a record-low drop in monthly jobs totals and a huge rise in the Unemployment Rate. But much of the negative sentiment had already been baked into the market as of mid-March, when these coming realities became apparent.

This week brings us some new key economic data — from new Consumer and Producer Price Indexes (CPI & PPI) to Import Prices, Retail Sales to new Initial and Continuing Jobless Claims — as well as Q1 earnings season playing out the string. There are still plenty of companies yet to report quarterly earnings, though most of the marquee names have already posted results.

In non-earnings news, Tesla (TSLA - Free Report) has filed a lawsuit against Alameda County, CA regarding the ability to open its factory in Fremont there. California has been among the most stringent and restrictive states in shuttering businesses in order to stop the spread of COVID-19, but Tesla CEO Elon Musk argues his plant is an “essential business” that must be kept open during the pandemic, and has threatened to move his facility to either Texas — which has already begun re-opening its economy, despite climbing numbers of COVID-19 infections — or Nevada.

Under Armour (UAA - Free Report) continued its struggles in the current specialty retail market, posting misses in its Q1 earnings report. A bottom-line loss of 34 cents per share was beneath the -19 cents expected in the Zacks consensus, while revenues of $930.24 million missed our estimate by 2.55% and came in below the $1.2 billion in top-line sales a year ago. Shares are down 10% in today’s pre-market, and had already fallen 53.8% year to date. For more on UAA’s earnings, click here.

Another specialty retailer, AutoNation (AN - Free Report) , posted an impressive Q1 release, with earnings of 91 cents per share well beyond the 70 cents analysts were looking for (though down from the $1.05 per share in the previous quarter) on $4.67 billion, for a top-line beat of nearly 2.5%. Shares are up 8% on the news this morning, following a year-to-date sell-off of 21%. The company had been a Zacks Rank #4 (Sell) prior to this morning’s earnings beat. For more on ANM’s earnings, click here.

Mark Vickery
Senior Editor

Questions or comments about this article and/or its author? Click here>>


Just Released: 5 Stocks Set to Double

Four Zacks experts each announce their single favorite pick with potential to gain +100% and more in the months ahead. Today, download the private Special Report that names these stocks and spotlights why their upside is so exceptional.

See Stocks Now >>

In-Depth Zacks Research for the Tickers Above

Normally $25 each - click below to receive one report FREE:

The full Ahead Of Wall Street article

AutoNation, Inc. (AN) - free report >>

Tesla, Inc. (TSLA) - free report >>

Under Armour, Inc. (UAA) - free report >>