Constellation Brands Surprises Wall Street

1:20pm (EST)

The market started off with decent gains but went on a wild ride about an hour after the open. There was a triple-digit sell-off on the Dow after hearing Japan had been hit by another earthquake but things have stabilized somewhat.

There has been a solid rebound in the indexes since the news after reports confirmed the nuclear facilities have not been compromised by the latest quake. However, oil spiked and is up over $1 to nearly $110 a barrel.

In economic news, new jobless claims fell last to 382,000 for the week versus estimates for 385,000. It was the fourth-straight week with a print below 400,000.

As far as the market, the Dow is down 34 points to 12,393 while the S&P 500 is lower by 2 to 1,334. The Nasdaq is up 3 points to 2,802.

Constellation Brands (STZ, $21.69, up $1.31) is up over 6% after better-than-expected earnings. The company earned a profit of $280 million, or $1.32 a share, versus $51 million, or $0.23 a share loss, in the year earlier quarter. The company sold two of its wine businesses which obviously helped with earnings and here were our thoughts in our Weekly Wrap on Sunday:

“We tried playing STZ last time out and their beers sales came in below expectations. If there is an improvement, the stock could jump 5% on good results.” Bingo.

We have a lot to cover inside our Members Area and we have updated our Watch List today. We are winding down our current trades and we are looking at a host of new ones to play into May and June.

We have covered our upside targets all week but we may get a pullback if we keep struggling with resistance. In fact, we are hoping for a small pullback before the next leg up so that we can get better prices on some of the trades we are profiling.

We will be back in the morning with a full update. Subscribers, check for the updates.

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Constellation Brands Surprises Wall Street

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