The Market In 5 Minutes: Lululemon, Sears Moving In Different Directions Following Earnings

Macro Focus

Futures for the Dow Jones Industrial Average climbed 8 points to 19,525.00, while the Standard & Poor’s 500 index futures gained 0.50 points to 2,237.25. Futures for the Nasdaq 100 index rose 3.50 points to 4,845.25.

Oil prices traded higher as Brent crude futures gained 0.79 percent to trade at $53.42 per barrel, while US WTI crude futures also rose 0.80 percent to trade at $50.17 a barrel.

Initial Jobless Claims for Dec 2 258.0K vs 258.0K consensus estimate. Continuing Claims for Nov 25 2.0M vs 2.06M consensus estimate.

• The Energy Information Administration’s weekly report on natural gas stocks is schedule for release at 10:30 a.m. ET.
• Data on money supply for the recent week will be released at 4:30 p.m. ET.

BZ News Desk Focus

• Lululemon LULU Reports Q3 EPS $0.50 vs $0.43 Est., Sales $544.4M vs $540.3M Est.
• Costco COST Reports Q1 EPS $1.24 vs. Est. $1.19, Rev. $28.1B vs. Est. $28.3B
• Sears SHLD Q3 EPS $(3.11) vs $(4.06) Est, Revenue $5.03B vs $4.95B Est
• Casey's General Stores CASY Reports Q3 EPS $1.44 vs $1.59 Est, Revenue $1.92B vs $1.94B

Sell-Side Themes

CLSA initiated coverage on Expedia EXPE (Outperform), TripAdvisor TRIP (Underperform) and Priceline PCLN (Buy).

Sell-Side's Most Noteworthy Calls

• Deutsche Bank downgraded Fitbit FIT to Hold.
• Bank of America downgraded L-3 Communications LLL to Neutral.
• Nomura upgrades Juniper Networks JNPR to Buy.
• Bank of America upgraded Advanced Micro Devices AMD to Buy.
• Morgan Stanley started Acacia ACIA at Equal Weight.

Deal Talk

A source familiar with the matter told Benzinga that the Comerica CMA board is opening up to a potential sale, following a push for strategic review in order to enhance holder value. Loan exposure to the energy sector was said to previously be a concern for potential buyers, but with the recent rebound in energy prices, that is no longer the case.

Abbott ABT has filed a complaint to terminate its proposed acquisition of Alere based on the substantial loss in Alere's value following the merger agreement. Alere said Abbott's lawsuit is entirely without merit and there are no grounds to avoid closing the merger. Alere said it has fully complied with its contractual obligations under the merger agreement.

In The News

President-elect Donald Trump has chosen Oklahoma Attorney General Scott Pruitt to lead the EPA, picking a climate-change skeptic and a harsh critic of the agency to take its helm.

As of June, 32 publicly traded Chinese banks had a total of $2 trillion in investment receivables as of June, up from $334 billion at the end of 2011, according to a tally by The Wall Street Journal of the latest available information from data provider Wind Information Co.

Blogosphere

"European Central Bank President Mario Draghi is no stranger to Christmas disappointment," writes Marcus Ashworth. "He found himself in possession of a sharp selloff in bunds last year, after policy makers fell short of expectations for an extension of bond purchases.The risks of a repeat might be higher for Draghi this time around, with fixed-income markets having had a torrid time since the U.S. election and Italian bank rescue plans hanging by a thread. "

Trending

LULU SHLD MU FDX EMKR CBG SQ COST CASY VRA LLL AVGO DEPO

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Guess This Chart

• This stock is up 16% this morning after a strong earnings report and buyback announced Wednesday afternoon.
• The "athleisure" company IPO'd in July 2007 at $18.
• Sympathy plays include Nike, Gap and L Brands.