The stock market rally has rebounded this week with a solid gain after the previous week’s general decline. Bob Iger is back as CEO of Disney, and Best Buy (BBY) Dick sporting goods (DKS) and dollar tree (DLTR) has led an ongoing wave of retail earnings. Black Friday has officially kicked off the holiday shopping season, but earlier sales, e-commerce, and cash restrictions have lowered consumer expectations. Crude oil prices fell and natural gas futures rose. Treasury revenues have fallen.
The stock market rally is growing
This week the major indices have strengthened and the S&P 500 has come close to testing its 200-day moving average. The Dow Jones is testing three-month highs and the Nasdaq is lagging behind. More stocks gave buy signals while more stocks settled. Treasury yields fell amid weak economic data and coronavirus fears in China, while crude oil tumbled.
Fed signals are slowing down; Like new data
The minutes of the Fed’s November 1-2 meeting on Wednesday did not change expectations for a slowdown in rate hikes, with several policymakers warning that continued rapid rate hikes would increase risks to financial stability. Meanwhile, new jobless claims jumped 17,000 to 240,000 in the week to Nov. 19, the highest since mid-August. Repeat claims in the week to November 12 jumped 48,000 to 1.551 million. The S&P Global Flash Manufacturing Index fell to a 30-month low in November due to falling production and new orders, as well as price pressure. The service index fell further. Durable goods orders for October, while not as fresh, did show some underlying economic strength. Non-defense capital goods orders, a measure of capital spending, rose 0.7%.
Bob Iger returns as Disney CEO
In an unexpected move Disney (DIS) has reappointed Bob Iger as CEO for a two-year term effective immediately. He replaces Bob Chapek, Iger’s chosen successor, who took office in February 2020. Iger led Disney for 15 years, including nearly two years as executive chairman before retiring at the end of 2021. faced a pandemic that closed theme parks and theaters and an expensive battle for streaming supremacy. DIS seized on the return of Aiger. It’s unclear what Iger’s strategy for rebuilding revenue will be, given that Capek has pretty much followed his plan.
Deere earnings, strong leadership
The agricultural and construction equipment maker beat quarterly estimates as problems with chips and other supply chains eased. On an annualized basis, earnings per share jumped 81% and revenue rose 37% to $15.54 billion. Revenue and sales growth accelerated compared to the previous quarter. Deere tied its bullish outlook for 2023 to positive farm fundamentals and infrastructure spending. Shares of IBD Leaderboard left the buy zone with a gap.
Dix and Dollar Tree disagree
Dick sporting goods (DKS) reported a 19% drop in earnings per share on sales growth of 8%. dollar tree (DLTR) earnings jumped 25% and sales also rose 8%. Both ranked first in terms of views in the third quarter. But Dick raised his full-year guidance, while DLTR gave a softer earnings outlook. DKS shares jumped to the buy point, while DLTR fell.
Best Buy Tops Q3 Views
The consumer electronics retailer beat expectations in its fiscal third quarter, but sales and profits declined year-on-year for the fourth consecutive quarter as it has to face tough comparisons with increased spending during the pandemic. Best Buy (BBY) maintained its previous forecast for the holiday shopping season. “We feel confident as we head into what could be an uneven holiday season,” said CEO Corey Barry. Shares jumped.
Dell and HP see decline in PC sales
Dell Technologies (DELL) and HP (HPQ) reported a sharp decline in sales of personal computers amid a sharp drop in demand in the quarters ended in October. Dell PC sales fell 17% and HP PC sales fell 13%. Dell beat Wall Street targets with stronger-than-expected sales of servers and storage hardware. Shares jumped. HP beat analysts’ estimates for its fiscal fourth quarter but cut earnings for the current quarter and for the full year ahead. However, investors welcomed his restructuring plan.
Youth clothing chains take off
American Eagle Outfitters (AEO), Abercrombie and Fitch (ANF) and Urban Outfitters (URBN) reported a significant drop in earnings per share from a year earlier. But shares of all three young adult chains rose on better-than-expected results, or at least better than feared.
Medtronic (MDT) fell on Tuesday after the medical giant reported lower-than-expected sales, although earnings beat forecasts. Organic sales rose 2% to $7.59 billion. Adjusted earnings fell 2%.
Baidu (BIDU) reported a 2.5% drop in earnings per share, while revenue fell 1% to $4.6 billion, but that topped the Chinese search giant’s pageviews. Baidu has also received approval for driverless testing in Beijing.
canadian sunny (CSIQ) reported third-quarter earnings per share rose 167%, crushing pageviews. Revenue jumped 58% to $1.93 billion, but there were no hits. Shares initially fell but cut losses.
Autodesk (ADSK), a maker of design software and design workflow tools, was in line with its fiscal third quarter estimates but oriented lower to the current quarter results. ADSK shares fell.
Analog Devices (ADI) handily outperformed its fiscal fourth quarter estimates with 58% earnings-per-share growth and 39% revenue growth amid stronger industrial and automotive markets. The chipmaker was oriented higher for the current period.
Dycom Industries (DY) reported third-quarter earnings jumped 89% and revenue rose 22% to $1.04 billion, well above estimates. But stocks tumbled on weak fourth-quarter revenue guidance.
Zoom video calling (ZM) reported third-quarter earnings per share and revenue that beat estimates amid lower expectations, with earnings per share down 3% and revenue up 5%. But Zoom was targeting lower for the current Q4. Shares fell.
Microsoft (MSFT) trade to buy Activision Blizzard (ATVI) for almost $69 billion is reportedly likely to face opposition from the Federal Trade Commission and an antitrust lawsuit before the end of the year. ATVI shares fell.
Tesla (TSLA) has expanded access to the FSD beta to all owners of fully self-driving vehicles in North America. This may allow Tesla to recognize more deferred income for full self-driving, which does not offer full self-driving.
YOU MAY ALSO LIKE:
Why this IBD tool makes it easy to find the best stocks
The Best Growth Stocks to Buy and Watch
IBD Digital: Unlock premium stock listings, tools and IBD analysis today