The bulls have used some better-than-expected economic news to battle back from yesterday’s steep losses as they have pushed the major indexes back towards current resistance levels. There were a couple of disappointing reports as well, but the overall tone has been bullish today.
Let’s get the Debbie Downer’s out the way, first.
Durable goods orders for October fell 3.3%, which was worse than the 0.3% decline that had been widely expected. New home sales for October fell 8% month-over-month to 283,000 units, which came in below the 314,000 units that had been penciled in. Core personal consumption expenditures were flat for October but were only expected to show an increase of 0.1%.
The good news…
Initial jobless claims for the week came in at 407,000, down 34,000 and less than the 442,000 that had been expected. Continuing claims came fell to 4.18 million from 4.32 million. Elsewhere, personal income increased 0.5% in October versus expectations for a 0.4% pop. The final Consumer Sentiment Survey for November from the University of Michigan jumped to 71.6 after a preliminary reading of 69.3.
Turning to earnings, Tiffany (TIF, $31.37, up $3.10) is up 5% after posting strong results that beat Wall Street’s expectations. The company reported a profit of $55 million, or $0.43 a share, up from $43 million, or $0.34 a share, from the year earlier period. Excluding costs, net income came in at $0.46 a share which beat expectations of $0.37 a share.
Revenue jumped nearly 15% to $682 million which was well ahead of the target of $653 million set by analysts. Same-store sales rose 7% versus expectations for an increase of 4.5%.
Shares of Tiffany have been strong in recent weeks, making a run from under $50 to current levels in just under a month. The stock has hit a fresh 52-week high of $61.30 which also marks an all-time high this morning and could continue to run if the retailers report some good numbers from Black Friday.
Elsewhere, SodaStream International (SODA, $42.65, up $3.79), which makes home beverage carbonation systems, continues it surge and is up another 10% after becoming public over 3 weeks ago.
We covered the company’s initial public offering (IPO) on November 5 and said to keep the stock on your radar.
The company raised $110 million in its debut by selling 5.5 million shares which were priced at $20 a share and the top end of its estimated range. The underwriters still have a 30-day option to buy up to an additional 800,000 shares to cover any excess demand which could raise another $20 million.
The company will announce 3Q earnings on November 29, 2010.
SodaStream’s home beverage carbonation system allows you to convert tap water into carbonated soft drinks and sparkling water. We have kept our eyes on the stock but you cannot trade options on the stock, yet. When they list, we will let you know. The stock really tends to move so there may be a trade down the road.
As we head to press, the Dow is up 120 points to 11,155 while the S&P 500 is up 14 points to 1,195. The Nasdaq is higher by 45 points to 2,540.
We have a NEW TRADE we are releasing right now. We mentioned it this morning and we wanted to see if shares would hold up. They have. Subscribers, check the Members Area for the details!
We will be back Friday morning with a full update. Enjoy your Thanksgiving, folks!