Market Overview

Markets Rally On Better Than Expected GDP; Dow Has Best Close In More Than A Month

Share:
Markets Rally On Better Than Expected GDP; Dow Has Best Close In More Than A Month
Related
Deutsche Bank's Top 2 Consumer Finance Picks For 2017
Watch These 7 Huge Call Purchases In Tuesday Trade

U.S. stocks rose on Thursday after government data showed the U.S. economy grew 3.5 percent in the third quarter, better than the 3.0 percent expected.

Investors brushed off a poor reading on the number of Americans filing for jobless benefits, which rose last week in favor of GDP data; this may validate the economy is performing well enough for the Fed to end its QE program.

The Dow was boosted by Visa Inc (NYSE: V), which reported a better than expected profit along with an encouraging outlook. The S&P 500 briefly flirted with the 2,000-level before slightly retracting.

Related Link: Federal Reserve Decision: Hawkish Or Just Pragmatic?

  • The Dow gained 1.30 percent, closing at 17,195.42, its highest close since September 24
  • The S&P 500 gained 0.62 percent, closing at 1,994.65.
  • The Nasdaq gained 0.37 percent, closing at 4,566.14.
  • Gold lost 2.17 percent, trading at $1,198.30 an ounce.
  • Oil lost 1.28 percent, trading at $81.15 a barrel.
  • Silver lost 4.60 percent, trading at $16.47.

News Of Note

Initial Jobless Claims rose 3,000 to 287,000 (versus consensus of 280,000) from last week. Continuing claims rose 29,000 to 2.38 million.

Third Quarter GDP rose 3.5 percent (versus expectations of 3.0 percent) after rising 4.6 percent last quarter.

Bloomberg Consumer Comfort Index fell to 37.2 from 37.7 last week.

EIA Natural Gas Inventory rose 87 bcf (versus expectations of 85 bcf) after rising 94 bcf last week.

Brazil's central bank surprisingly raised its benchmark Selic rate by 25 basis points to 11.25 percent.

Analyst Upgrades And Downgrades of Note

Analysts at Deustche Bank upgraded Ally Financial Inc (NYSE: ALLY) to Buy from Hold with an unchanged $26 price target. Shares lost 0.13 percent, closing at $22.79.

Analysts at Morgan Stanley maintained an Overweight rating on Baidu Inc (NASDAQ: BIDU) with a price target raised to $275.20 from a previous $251.60. Shares hit new 52-week highs of $237.46 before closing the day at $237.01, up 5.55 percent.

Analysts at Morgan Stanley initiated coverage of Deckers Outdoor Corp (NYSE: DECK) with an Overweight rating and $105 price target. Shares gained 2.99 percent, closing at $87.79.

See Also: Defense Stocks Aren't Guaranteed: 5 Of 2014's Worst

Analysts at Mizuho Securities initiated coverage of Kate Spade & Co (NYSE: KATE) with a Neutral rating and $28 price target. Shares lost 0.77 percent, closing at $27.14.

Analysts at Goldman Sachs upgraded Lowe's Companies, Inc. (NYSE: LOW) to Buy from Neutral with a price target raised to $63 from a previous $58. Shares hit new 52-week highs of $56.56 before closing the day at $56.27, up 0.82 percent.

Analysts at Albert Fried downgraded Pandora Media Inc (NYSE: P) to Underweight from Market Perform with a price target lowered to $16 from a previous $20. Shares hit new 52-week lows of $18.51 before closing the day at $18.74, down 2.55 percent.

Analysts at Barclays maintained an Overweight rating on Phillips 66 (NYSE: PSX) with a price target raised to $112 from a previous $109. Shares gained 1.32 percent, closing at $77.40.

Analysts at Credit Suisse upgraded Sprint Corporation (NYSE: S) to Neutral from Underperform with a $6 price target. Shares finished the day unchanged at $6.00.

Analysts at Ascendiant Capital initiated coverage of Tesla Motors Inc (NASDAQ: TSLA) with a Buy rating and $320 price target. Shares gained 0.24 percent, closing at $238.66.

Analysts at Nomura maintained a Buy rating on United States Steel Corporation (NYSE: X) with a price target raised to $55 from a previous $48. Shares lost 2.84 percent, closing at $38.94.

Analysts at FBR Capital upgraded Visa to Outperform from Market Perform with a price target raised to $260 from a previous $250. Analysts at Credit Suisse maintained an Outperform rating with a price target raised to $260 from a previous $250. Analysts at Stifel Nicolaus maintained a Buy rating with a price target lowered to $280 from a previous $281. Shares hit new 52-week highs of $239.28 before closing the day at $236.65, up 10.24 percent.

Analysts at Barclays maintained an Overweight rating on Wynn Resorts, Limited (NASDAQ: WYNN) with a price target raised to $190 from a previous $181. Shares gained 0.93 percent, closing at $187.65.

Analysts at Citigroup maintained a Neutral rating on Yum! Brands, Inc. (NYSE: YUM) with a price target lowered to $74 from a previous $79. Shares gained 0.53 percent, closing at $69.98.

Equities-Specific News Of Note

Wal-Mart Stores, Inc. (NYSE: WMT) is considering expanding its price matching guarantee to include online rivals. Shares gained 0.08 percent, closing at $76.45.

Microsoft Corporation (NASDAQ: MSFT) unveiled its first wearable device named Microsoft Band with a starting price of $199. Shares lost 1.22 percent, closing at $46.05.

According to Bloomberg, Perrigo (NYSE: PRGO) is in exclusive talks to acquire Omega Pharma for more than four billion euros. Shares of Perrigo gained 4.08 percent, closing at $161.33.

Yahoo! (NASDAQ: YHOO) hired Amazon.com's former display ad boss Lisa Utzschneider as SVP of Americas sales. Shares of Yahoo gained 0.44 percent, closing at $45.63.

Related Link: Apple's Tim Cook And 5 Other Notable LGBT CEOs

Kandi Technologies (NASDAQ: KNDI) said that it expects to deliver 1,000 electric vehicles to the city of Chengdu by the end of the year for a car-sharing program. Shares gained 4.26 percent, closing at $16.16.

Autodesk (NASDAQ: ADSK) plans to invest $100 million in 3D printing technology companies and individuals over the next several years. Shares gained 2.52 percent, closing at $57.37.

AstraZeneca (NYSE: AZN) received FDA approval for its diabetes pill, Xigduo XR. Shares gained 1.50 percent, closing at $72.60.

Winners Of Note

Lakeland Industries, Inc. (NASDAQ: LAKE) said last night that its monthly production capacity for its protective suits has risen by more than 50 percent since August due to Ebola concerns. Shares gained 22.97 percent, closing at $14.24.

Decliners Of Note

The SEC previously announced it will open an inquiry into American Realty Capital Properties' (NASDAQ: ARCP) accounting errors. Shares continued to sell-off today, hitting new 52-week lows of $9.12 before closing the day at $9.42, down 5.80 percent.

Earnings Of Note

Xcel Energy (NYSE: XEL) reported its third quarter results this morning. The company earned $0.73 per share, missing the consensus estimate of $0.75. Revenue of $2.87 billion missed the consensus estimate of $3.10 billion. Shares hit new 52-week highs of $33.76 before closing the day at $33.52, up 2.04 percent.

Time Warner Cable (NYSE: TWC) reported its third quarter results this morning. The company earned $1.86 per share, missing the consensus estimate of $1.90. Revenue of $5.71 billion missed the consensus estimate of $5.75 billion. Shares lost 0.61 percent, closing at $142.88.

Teva Pharmaceutical (NASDAQ: TEVA) reported its third quarter results this morning. The company earned $1.32 per share, beating the consensus estimate of $1.22. Revenue of $5.06 billion missed the consensus estimate of $5.08 billion. Shares hit new 52-week highs of $56.70 before closing the day at $56.47, up 3.63 percent.

See Also: QE Is Over; Bull Bond Market Likely Isn't

Ocwen Financial (NYSE: OCN) reported its third quarter results this morning. The company lost $0.58 per share, which may not be comparable to the consensus estimate of a profit of $0.63 per share. Revenue of $513.7 million missed the consensus estimate of $542.76 million. Shares gained 11.29 percent, closing at $23.16.

Mastercard (NYSE: MA) reported its third quarter results this morning. The company earned $0.87 per share, beating the consensus estimate of $0.78. Revenue of $2.50 billion beat the consensus estimate of $2.45 billion. Shares gained 9.32 percent, closing at $83.07.

Kellogg Company (NYSE: K) reported its third quarter results this morning. The company earned $0.94 per share, beating the consensus estimate of $0.92. Revenue of $3.64 billion missed the consensus estimate of $3.69 billion. Shares gained 2.51 percent, closing at $64.04.

LinkedIn Corp (NYSE: LNKD) reported its third quarter results after market close. The company earned $0.52 per share, beating the consensus estimate of $0.47. Revenue of $568.0 million missed the consensus estimate of $557.49 million. Shares were trading higher by 0.46 percent at $203.83 following its earnings report.

Starbucks (NASDAQ: SBUX) reported its fourth quarter results after market close. The company earned $0.74 per share, in line with the consensus estimate. Revenue of $4.18 billion missed the consensus estimate of $4.23 billion. Shares were trading lower by 4.81 percent at $73.60 following its earnings report.

GoPro Inc (NASDAQ: GPRO) reported its third quarter results after market close. The company earned $0.12 per share, beating the consensus estimate of $0.08. Revenue of $280.0 million beat the consensus estimate of $263.60 million. Shares were trading higher by 5.86 percent at $72.25 following its earnings report.

Quote Of The Day

"He's always been associated with our game and he's Gordie Howe, 'Mr. Hockey."' – Detroit Red Wings General Manager Ken Holland commenting on the NHL legend following a massive stroke earlier this week.

Latest Ratings for ALLY

DateFirmActionFromTo
Nov 2016Stephens & Co.Initiates Coverage OnEqual-Weight
May 2016MacquarieInitiates Coverage onNeutral
May 2016Deutsche BankMaintainsBuy

View More Analyst Ratings for ALLY
View the Latest Analyst Ratings

Posted-In: Earnings News Guidance Upgrades Downgrades Initiation Legal Econ #s Best of Benzinga

 

Related Articles (ADSK + ALLY)

View Comments and Join the Discussion!