While earnings season is officially over, there were many must-see events this week for investors. What got investors talking the most was the NASDAQ hitting 5,000 for the first time since the dot-com bubble, and the announcement that Apple will be added to the Dow 30. There were also several M&A deals announced this week.
Monday
On Monday, we saw a couple notable earnings releases:
- EV Energy Partners (EVEP) – Turned a profit for the fourth quarter, compared to a net loss, last year.
- Sothebys (BID ) – Posted lower earnings, and missed estimates.
There were also two M&A announcements involving big-name dividend stocks. Hewlett-Packard (HPQ ) agreed to acquire Aruba Networks (ARUN) for $2.7 billion. Cardinal Health (CAH ) announced that it will acquire Johnson & Johnson’s (JNJ ) Cordis Business for $1.944 billion.
Costco (COST ) announced that it has named Visa (V ) and Citigroup (C ) as its new credit card partners – replacing American Express (AXP ).
For the first time since 2000, the NASDAQ reached 5000, led by strong performance in the technology sector. The VIX dropped to its lowest level in 2015.
The Dow rose 0.9%, the S&P 500 increased 0.6% and the Nasdaq gained 0.9%.
Tuesday
Before the opening bell on Tuesday, there were three notable earnings reports for dividend investors to take note of.
- Best Buy (BBY ) – Reported a significant increase in profits. Earnings beat estimates, but revenue fell short.
- Dick’s Sporting Goods (DKS ) – Reported higher profits, and beat estimates.
- Bank of Nova Scotia (BNS ) – Posted higher results. Revenue beat estimates, but EPS fell short.
In addition to earnings, investors also digested disappointing February auto sales. General Motors (GM ) reported a 4.2% increase in monthly sales, Ford Motor Company (F ) saw a 2% decline in sales and Toyota Motors sales surged 13.3%.
The Dow dropped 0.5%, the S&P 500 fell 0.5% and the Nasdaq declined 0.6%.
Wednesday
We began Wednesday morning with a couple notable earnings.
- Brown Forman (BF-B ) – Reported higher quarterly results. EPS matched estimates.
- Abercrombie & Fitch (ANF) – Reported disappointing holiday sales. Shares plunged.
The NASDAQ hit 5000 once again, for the second time this week. Despite its rally, the market saw losses across most sectors.
The Dow dropped 0.5%, the S&P 500 fell 0.5% and the Nasdaq declined 0.6%.
Thursday
On Thursday morning, we saw higher-than expected earnings from big-name retailer Costco (COST ). In M&A news, AbbVie (ABBV ) announced that it has agreed to acquire Pharmacyclics For $21 billion in cash and stock.
The markets saw a slight upside to the ECB’s reminder that its trillion dollar stimulus plan will begin on Monday.
The Dow rose 0.2%, the S&P 500 increased 0.2% and the Nasdaq gained 0.3%.
Friday
There were a few notable earnings releases on Friday morning, as well as positive job creation data.
- Foot Locker (FL) – Reported higher results, which beat analysts’ estimates. The company also reported record high annual earnings.
- Staples (SPLS) – Reported a net loss, but beat analysts’ adjusted EPS estimates.
But the real focus was on Apple (AAPL ). This morning, it was announced that the $735 billion tech giant will be added to the Dow Jones Industrial Average on March 18. Apple will replace AT&T (T ) – a company that has been in the Dow since 1939.
Looking Ahead to Next Week
Next week, there are few big-name earnings reports being released. For dividend investors, the only notable companies reporting earnings are Mens Wearhouse (MW), Vail Resorts (MTN ) and The Buckle (BKE ).
In economic news, retail sales for February will be reported on Thursday.
Have a great weekend, and thanks for reading! Be sure to check us out on Twitter @dividenddotcom.
