Market Wrap-up for May 22 - The Week in Review

It was an interesting week on Wall Street, with the Dow, Nasdaq and S&P 500 all reaching record highs despite the housing and manufacturing sectors missing their targets.

Monday

The S&P 500 logged its third straight all-time high close, gaining 6.47 points, or 0.3%, ending the day at 2,129.2 points. Meanwhile, the Dow rose 26.32 points, or 0.1%, ending the day at 18,298.88, beating its previous record close of 18,288.63, which was set on March 2.

Nasdaq added 30.15 points, or 0.6%, to end Monday at 5,078.44.

Earnings season carried on this week as dividend payers released financial results. Here’s a few of note from Monday:

• Air Industries Group (AIRI ) reported Q1 EPS of $0.01, versus the $0.06 reported last year. Revenue for the quarter came in at $16.8 million, compared to the $15.5 million reported last year.
• Agilent Technologies (A ) reported Q2 EPS of $0.38, $0.01 worse than the analyst estimate of $0.39.

Tuesday

Stocks were mixed on Tuesday despite positive data regarding the U.S. housing market. The S&P 500 gave back 1.37 points, while the Nasdaq shaved 8.40 points. The Dow, however, closed in positive territory as it edged up to a record high, gaining 13.51 points.

There were also some big players that announced earnings on Tuesday:

• Wal-Mart (WMT ) reported Q1 EPS of $1.03, versus the analyst estimate of $1.05. Revenue for the quarter came in at $114.8 billion versus the consensus estimate of $116.3 billion.
• Home Depot (HD ) reported Q1 EPS of $1.16, $0.01 better than the analyst estimate of $1.15. Revenue for the quarter came in at $20.9 billion versus the consensus estimate of $20.82 billion.
• Dick’s Sporting Goods (DKS ) reported Q1 EPS of $0.53, which was in line with analyst estimates. Revenue for the quarter came in at $1.6 billion versus the consensus estimate of $1.56 billion.

In economic news, Building Permits came in higher than expected at 1.14 million compared to the predicted 1.06 million.

Wednesday

Stocks were lower on Wednesday as Fed uncertainty left traders unsure about the U.S. economic recovery.

The Dow Jones Industrial Average shed 26.99 points, or 0.15%, to 18,285.40, breaking a four-session win-streak. The S&P 500 index dipped 1.98 points, or 0.1%, to 2,125.85. Nasdaq added 1.71 points, less than 0.1%, to close at 5,071.74.

Earnings of note:

• Lowe’s (LOW ) reported Q1 EPS of $0.70, $0.04 worse than the analyst estimate of $0.74. Revenue for the quarter came in at $14.1 billion versus the consensus estimate of $14.27 billion.
• Target (TGT ) reported Q1 EPS of $1.10, $0.07 better than the analyst estimate of $1.03. Revenue was $17.12 billion, versus the consensus of $17.08 billion.
• Williams-Sonoma (WSM ) reported Q1 EPS of $0.48, $0.04 better than the analyst estimate of $0.44. Revenue for the quarter came in at $1.03 billion versus the consensus estimate of $1.01 billion. WSM reported brand revenue growth of 4.6%.
• NetApp (NTAP ) reported Q4 EPS of $0.65, $0.07 worse than the analyst estimate of $0.72. Revenue for the quarter came in at $1.54 billion versus the consensus estimate of $1.59 billion.
• Staples (SPLS ) reported Q1 EPS of $0.17, in line with the analyst estimate of $0.17. Revenue for the quarter came in at $5.3 billion versus the consensus estimate of $5.47 billion.

Thursday

Several major economic reports hit the Street on Thursday:

1. Unemployment Claims came in higher than expected at 274,000, versus the forecasted 271,000.
2. The Philly Fed Manufacturing Index missed as well. The forecast expected 8.1, while 6.7 was the final tally for the month.
3. Existing Home Sales disappointed; final figures showed 5.04 million, down considerably from the expected 5.23 million.

In earnings news:

• Marvell Technology (MRVL ) reported Q1 EPS of $0.13, $0.03 better than the analyst estimate of $0.10. Revenue for the quarter came in at $724 million versus the consensus estimate of $733.35 million.
• Gap, Inc. (GPS ) reported Q1 EPS of $0.56, in line with the analyst estimates. Revenue for the quarter came in at $3.66 billion versus the consensus estimate of $3.76 billion.
• Best Buy (BBY ) reported Q1 EPS of $0.37, $0.08 better than the analyst estimate of $0.29. Revenue for the quarter came in at $8.56 billion versus the consensus estimate of $8.46 billion.

In all, Thursday saw little volume before the holiday weekend. The S&P 500 ground out a new record high, adding 4.97, or 0.2%, to 2,130.82, passing its last record that was 4 days prior. The Dow Jones Industrial Average gained 0.34 point to 18,285.74, just 0.1% shy of its Monday record. Nasdaq rose 19.05, or 0.4%, to 5,090.79, stopping just short of its April 24 record.

Friday

Before the opening bell on Friday, earnings reports were released from the following companies:

Campbell Soup (CPB ) reported Q3 adjusted EPS of $0.62, $0.10 better than the analyst estimate of $0.52. Revenue for the quarter came in at $1.9 million versus the consensus estimate of $1.94 million.

Deere & Co. (DE ) reported Q2 EPS of $2.03, $0.47 better than the analyst estimate of $1.56. Revenue for the quarter came in at $8.17 billion versus the consensus estimate of $7.53 billion.

Next Week

Earnings season has wrapped up, though there are a few stocks reporting next week, which we have outlined below. Remember, Monday is a bank holiday.

Tuesday will see core durable goods orders, CB Consumer Confidence reports and Richmond Manufacturing Index.

Wednesday through Friday G7 meetings will occur as well as feature earnings reports from Costco Corp.
(COST ) and Tiffany & Co. (TIF ).

Unemployment Claims will be announced Thursday before the bell as well as the GDP Preliminary estimate. Further, earnings will be announced by Abercrombie & Fitch Co. (ANF ) and GameStop Corp. (GME ).

Two major Canadian banks, Toronto Dominion (TD ), one of our best dividend stocks, and Royal Bank of Canada (RY ) report Thursday as well.

Friday will feature earnings from Big Lots (BIG ).

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