Dow Closes At A New High As Late-Month Rally Boosts Stocks

4/30/14 4:57 PM ET (Benzinga)

April turned out to be a pretty good month for stocks.
Surprisingly good.
The Dow Jones Industrials, which had been down as much as 7.3 percent for the year on February 3, finished in the black for the year for the first time.
That said, not all stocks had particularly good months. Biotechs, some technology stocks and anything to which one could attach the term "momentum stock" floundered. How the markets will perform over the next six months is anyone's guess. The May-October period is typically the weakest six months of the year.
The Dow closed up 45 points on Wednesday, or 0.3 percent, to 16,580.84. 72, breaking its old record of 16,576.66, set on December 31. The Dow's intraday peak was 16,631.63, set on April 4. For the month, the blue-chip index was up 0.8 percent and is up 0.03 percent for 2014.
The Standard & Poor's 500 (NYSE: SPY) Index, up 0.3 percent to 1,884, finished April with a 0.6 percent gain and is up 1.9 percent for the year. The Nasdaq Composite Index was up 0.3 to 4,115 for the day. But the index fell 2.1 percent for April and is down 1.5 percent for the year. It had been up as much as 4.3 percent for the year on March 5.
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It was the momentum stocks that caused all sorts of mischief and ultimate weighed on the Nasdaq. Amazon.com (NASDAQ: AMZN) was down about 9.5 percent for the month, finished at about 9.5 percent for the month, finished at 304.25. Since peaking at the end of January, the shares have fallen about 25 percent.
Tesla Motors (NASDAQ: TSLA) fell 15.8 percent from an April 2 peak of 230.89 to as low as $184.32. It rebounded 12.8 percent to $207.89. Twitter Inc. (NYSE: TWTR) suffered a lot. Shares fell 16.5 percent for the month, in part because its first-quarter earnings were a disappointment. The shares are down 38.8 percent for the year.
The biotech stocks were the real villains as the market was hit by a flood of initial public offerings from companies with little revenue and no profits. So, the SPDR S&P Biotech exchange-traded fund (NYSE: XBI) fell 9.7 percent for the month. The iShares Nasdaq Biotechnology Index Fund (NYSE: IBB) was off 2.6 percent.
The market rally was aided by the Federal Reserve, which left its key interest rates unchanged. The central bank did trim its purchases of Treasury and mortgage securities by a total of $10 billion a month. Interest rates, however, remained steady. The 10-year Treasury yield fell to 2.648 percent from 2.695 percent on Tuesday. The yield is down 12.5 percent for the December 31 yield of 3.026 percent.
The market pushed rates lower because the Commerce Department said the economy had a weak first quarter, mostly because of the brutal winter. The Fed acknowledge that as well but believes growth will strengthen this spring and summer.
Crude oil prices fell Wednesday with light sweet crude falling to $99.74 a barrel in New York. That appears to reflect ample domestic inventories and an easing of tensions in Ukraine and elsewhere. Crude was down 1.8 percent for the month but is up 1.3 percent for the year. Gold fell 40 cents to $1,295 an ounce. It was up 0.9 percent for the month and is up 78 percent for the year. The gains reflect a falling dollar and increased global tensions.
The big winner among commodities was coffee, up 15.7 percent for the month at $2.0585 a pound in New York futures trading. It's up 86 percent for the year, mostly because of a terrible drought in Brazil, the largest coffee-producing country. Ultimately, that will mean higher retail prices.
Also higher for April were corn, soybeans and wheat, all up by more than 10 percent. Those increases may push some food prices higher, particularly beef, chicken and pork.

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

UPDATE: Weight Watchers shares gain big on earnings, outlook

4/30/14 6:19 PM ET (MarketWatch)

By Wallace Witkowski, MarketWatch

SAN FRANCISCO (MarketWatch) -- Weight Watchers International Inc. shares jumped in the extended session Wednesday after the company topped Wall Street estimates and boosted its earnings outlook for the year.

Weight Watchers (WTW) shares surged 14% to $22.50 on heavy volume after the company reported adjusted first-quarter earnings of 31 cents a share on revenue of $409.4 million. Analysts surveyed by FactSet estimated 9 cents a share on revenue of $399 million.

The company also forecast 2014 earnings of $1.45 to $1.70 a share, while analysts expect $1.40 a share.

Yelp Inc. (YELP) shares rose after an initial downturn after the online review and recommendation company's results. Shares rose 3.7% to $60.46 on heavy volume.

Yelp reported a first-quarter loss of 4 cents a share on revenue of $76.4 million. Analysts expected a loss of 6 cents a share on revenue of $75 million.

MetLife Inc. (MET) shares fell 1.4% to $51.60 on moderate volume after the insurer reported first-quarter operating earnings of $1.37 a share on revenue of $17.12 billion. Analysts expected $1.40 a share on revenue of $17.66 billion.

Hologic Inc. (HOLX) shares rose 5.8% to $22.20 on moderate volume after the company reported fiscal second-quarter earnings of 37 cents a share on revenue of $625 million. Analysts estimated 33 cents a share on revenue of $609.2 million.

The company also raised its full-year outlook to a range of $1.37 to $1.40 a share in earnings on revenue of $2.46 billion to $2.49 billion. Analysts expect $1.37 a share on revenue of $2.46 billion.

JDS Uniphase Corp. (JDSUD) shares fell 6.5% to $11.85 on heavy volume after the telecom equipment maker reported fiscal third-quarter earnings of 10 cents a share on revenue of $418 million. Analysts expected 11 cents a share on revenue of $431.8 million.

JDS Uniphase also forecast adjusted fourth-quarter earnings of 10 cents to 14 cents a share on revenue of $425 million to $445 million. Analysts estimate 17 cents a share on revenue of $459.1 million.

More from MarketWatch:

Facebook's mobile offensive lifts stock

17 reasons not to sell in May and go away

5 century-old companies with shocking stock returns
-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com

(END) Dow Jones Newswires
April 30, 2014 18:19 ET (22:19 GMT)
Copyright (c) 2014 Dow Jones & Company, Inc.

Market Wrap For May 2: Markets Slip On Ukraine Tensions Despite Positive Jobs Data

5/2/14 4:58 PM ET (Benzinga)

U.S. stocks declined as tensions continue to mount in Ukraine.
Russia requested an emergency session with the United Nations Security Council over a recent operation conducted by Ukraine where at least seven people were killed in the town of Slavyansk.
Ukraine's interim President Oleksandr Ruchynov said that pro-Russian rebels had been killed in the operation while insurgents had shot down two helicopters.
On the domestic front, the U.S. Department of Labor announced that 288,000 jobs in April were created. Analysts were expecting the addition of 210,000 jobs in the month.
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• The Dow lost 0.28 percent, closing at 16,512.89.
• The S&P 500 lost 0.13 percent, closing at 1,881.14.
• The Nasdaq lost 0.09 percent, closing at 4,123.90.
• Gold gained 1.16 percent, trading at $1,298.30 an ounce.
• Oil gained 0.35 percent, trading at $99.77 a barrel.
• Silver gained 2.19 percent, trading at $19.46 an ounce.

News of Note
April Nonfarm Payrolls gained 288,000, above the consensus of 210,000 and March's gain of 203,000.
March Factory Orders rose 1.1 percent on month, below expectations for a 1.4 percent rise and February's 1.5 percent gain.
The Federal Reserve released a list of 15 U.S. based and foreign financial firms that could potentially pose elevated risks to U.S. financial stability and will receive extra supervision by a special unit named The Large Institution Supervision Coordinating Committee.
According to Re/code, and reported by CNBC, Alibaba could file for its IPO as early as next week.
Canada's Natural Resources Minister Greg Rickford announced that the Canadian government has no plans to issue a NAFTA challenge over the U.S. delaying its decision on approving the Keystone XL pipeline project.
Japan's unemployment rate remained unchanged in March at 3.6 percent.
Eurozone manufacturing PMI rose to 53.4 in April from 53 in March.
Eurozone's unemployment rate remained unchanged in March at 11.8 percent and coming in below estimates of 11.9 percent.
Analyst Upgrades and Downgrades of Note
Analysts at Citigroup maintained a Hold rating on Buffalo Wild Wings (NASDAQ: BWLD) with a price target raised to $158 from a previous $142. Shares gained 1.17 percent, closing at $146.22.
Analysts at Barclays maintained an Equal-weight rating on CME Group (NYSE: CME) with a price target lowered to $78 from a previous $82. Shares lost 1.57 percent, closing at $69.57.
Analysts at Bank of America maintained an Underperform rating on ConocoPhillips (NYSE: COP) with a price target raised to $77 from a previous $75. Taking the opposite side, analysts at Barclays maintained an Overweight rating on ConocoPhillips with a price target raised to $88 from a previous $83. Shares hit new 52-week highs of $76.85 before closing the day at $76.52, up 1.99 percent.
Analysts at Citigroup downgraded DirectTV (NYSE: DTV) to Neutral from Buy. Shares lost 1.10 percent, closing at $79.87.
Analysts at Cantor Fitzgerald maintained a Buy rating on Expedia (NASDAQ: EXPE) with a price target raised to $82 from a previous $80. Shares lost 3.68 percent, closing at $71.15.
Analysts at Bank of America maintained a Buy rating on Exxon Mobil (NYSE: XOM) with a price target raised to $114 from a previous $110. Shares hit new 52-week highs of $102.91 before closing the day at $102.01, up 0.59 percent.
Analysts at Morgan Stanley maintained a Buy rating on Groupon (NASDAQ: GRPN) with a price target lowered to $13 from a previous $14. Shares gained 0.14 percent, closing at $7.09.
Analysts at Needham upgraded InvenSense (NASDAQ: INVN) to Buy from Hold with a $22 price target. Shares lost 4.66 percent, closing at $19.63.
Analysts at Nomura maintained a Buy rating on MasterCard (NYSE: MA) with a price target lowered to $91 from a previous $93.50. Shares lost 0.63 percent, closing at $73.78.
Analysts at Nomura initiated coverage of Michael Kors (NASDAQ: KORS) with a Buy rating and $116 price target. Shares gained 0.87 percent, closing at $93.21.
Analysts at Societe Generale upgraded Oracle (NYSE: ORCL) to Buy from Hold with a price target raised to $47 from a previous $38. Shares lost 0.39 percent, closing at $40.81.
Analysts at Barclays maintained an Overweight rating on T-Mobile U.S. (NYSE: TMUS) with a price target raised to $37 from a previous $36. Meanwhile, analysts at Nomura maintained a Neutral rating on T-Mobile with a price target raised to $30 from a previous $27.50. Shares gained 1.11 percent, closing at $32.00.
Equities-Specific News of Note
Pfizer (NYSE: PFE) has written a letter to the Prime Minister of the United Kingdom David Cameron confirming its intentions to complete AstraZeneca's (NYSE: AZN) research and development facilities in Cambridge and to maintain AstraZeneca's scientific leading position in the country intact. Following Pfizer's letter (and confirming it had raised its bid offer to $106 billion), AstraZeneca said that “Pfizer's proposal would dramatically dilute AstraZeneca shareholders' exposure to our unique position and would create risks around its delivery” in a statement rejecting Pfizer's offer. Shares of Pfizer lost 1.28 percent, closing at $30.75 while shares of AstraZeneca lost 0.09 percent, closing at $81.02.
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Yum Brands (NYSE: YUM) launched a new set of TV commercials to promote Taco Bell's breakfast offering. Shares lost 0.07 percent, closing at $76.20.
Intuitive Surgical (NASDAQ: ISRG) announced it will pay back $1 billion worth of shares from Goldman Sachs. Shares gained 1.24 percent, closing at $363.59.
The National Bank of Canada will give Canadian Solar (NASDAQ: CSIQ) a C$115.5 million in short-term financing to help continue with the construction of three solar plants in Ontario. Shares gained 0.11 percent, closing at $27.54.
Winners of Note
This morning, Cooper Tire & Rubber (NYSE: CTB) reported its first quarter results. The company announced an EPS of $0.71, beating the consensus estimate of $0.49. Revenue of $796 million missed the consensus estimate of $836.15 million. Net income attributable to the company for the quarter fell to $45 million from $56 million in the same quarter a year ago as the company experienced an unfavorable pricing mix which was not fully offset by lower raw material costs and higher selling, general and administrative costs. The company expects its second quarter raw material prices to be roughly flat compared to the first quarter which have declined around four percent from the previous quarter. Shares gained 6.76 percent, closing at $27.48.
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Decliners of Note
Endocyte (NASDAQ: ECYT), a biopharmaceutical company with a focus on treating cancer and inflammatory and its collaborative partner Merck (NYSE: MRK) announced that its phase 3 trial evaluating a cancer drug vintafolide has been recommended to be stopped by the Data Safety Monitoring Board following an interim analysis. Shares of Endocyte plunged to new 52-week lows of $6.50 before closing the day at $6.62, down 61.91 percent. Shares of Merck lost 2.35 percent, closing at $58.22.
On Thursday LinkedIn (NYSE: LNKD) reported its first quarter results. The company announced an EPS of $0.38, beating the consensus estimate of $0.34. Revenue of $473.19 million beat the consensus estimate of $466.69 million. Net income for the quarter turned negative to a net loss of $13.4 million from a net income of $22.6 million in the same quarter a year ago due to higher costs of employee stock compensation and other costs and expenses such as hiring employees and developing new services. In the quarter, LinkedIn added 19 million users bringing its total to 296 million. Total page views rose to 11.5 billion from 11.1 billion a year ago. LinkedIn offered downside guidance and sees its second quarter revenue to be $500 million to $505 million, below the $505.1 million consensus estimate. Full year 2014 revenue is guided to be $2.06 billion to $2.08 billion, below the $2.11 billion consensus. Analysts at UBS upgraded LinkedIn (NYSE: LNKD) to Buy from Neutral with a $225 price target. Meanwhile, analysts at Stifel Nicolaus maintained a Buy rating with a price target lowered to $240 from a previous $285, as did analyst at Wunderlich who also maintained a Buy rating with a price target lowered to $250 from a previous $280. Also, analysts at Credit Suisse maintained an Outperform rating with a price target lowered to $270 from a previous $274. Shares lost 8.37 percent, closing at $147.73.
Earnings of Note
This morning, CVS Caremark (NYSE: CVS) reported its first quarter results. The company announced an EPS of $1.02, missing the consensus estimate of $1.03. Revenue of $32.7 billion beat the consensus estimate of $32.31 billion. Net income for the quarter rose to $1.13 billion from $954 million in the same quarter a year ago as the company's Pharmacy Services division saw its sales rise 10.3 percent year over year to $20.2 billion. The Retail Pharmacy segment grew sales by 2.7 percent to $16.5 billion from a year ago driven partially by increased generic drugs dispensed and slower growth in expenses. CVS reaffirmed previous guidance and expects its full year 2014 EPS to be $4.36 to $4.50 and to deliver free cash flow of $5.50 billion to $5.8 billion. Shares gained 1.05 percent, closing at $73.86.
This morning, Chevron (NYSE: CVX) reported its first quarter results. The company announced an EPS of $2.36, missing the consensus estimate of $2.47. Revenue of $53.26 billion missed the consensuses estimate of $54.47 billion. Net income for the quarter fell to $4..51 billion from $6.18 billion in the same quarter a year ago as the company's oil-equivalent production fell to 2.59 million barrels per day from 2.65 million barrels per day a year ago. Chevron's upstream earnings declined by 27 percent to $4.31 billion while downstream revenue gained 1.3 percent to $710 million. The company also noted its lower earnings were due to lower prices for crude oil and weather related issues. Chevron expects to see production growth in 2015 and beyond as several new initiatives such as the Big Foot projects in the Gulf of Mexico will begin production in mid-2015 and the Jack/St. Malo project will go online in late 2014. Shares lost 0.18 percent, closing at $124.72.
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Quote of the Day
"Patience is a virtue, catch it if you can... rarely in a women, never in a man!" -Founder of Seabreeze Partners Management Douglas Kass speaking with the Benzinga #Premarket Prep on Thursday morning.

© 2014 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.