Dow Poised for New Highs as Staples and Big Lots Beat the Street

LONDON -- Stock index futures at 7 a.m. EST indicate that the Dow Jones Industrial Average (DJINDICES: ^DJI  ) may continue its record-breaking run and open up by 0.31% this morning, while the S&P 500 (SNPINDEX: ^GSPC  ) may open 0.34% higher. Yesterday's all-time high helped drive a big improvement in sentiment, and the CNN Fear & Greed Index swung higher to close at 71, up from a previous close of 60.

Today's economic reports begin at 8:15 a.m. EST with the latest ADP employment figures, which are expected to show that 175,000 new private-sector jobs were created in February, down from 192,000 in January. At 10 a.m. EST, January's factory-order data is expected to show a 2.2% fall in orders during the first month of 2013 following a 1.8% increase in December 2012. Finally, at 2 p.m. EST, the latest Federal Reserve Beige Book will provide further insight into the state of the economy.

In an earnings release this morning, Staples (NASDAQ: SPLS  ) beat analysts' expectations with adjusted Q4 earnings of $0.46 per share, ahead of consensus forecast for $0.45. The office supplies company also announced a 9% increase to its quarterly dividend. However, including one-time charges, Staples earned just $0.12 per share, and the company gave downbeat guidance for 2013. Shares are down 5.2% in premarket trading.

Big Lots also beat expectations, reporting fourth-quarter adjusted earnings of $2.09, ahead of consensus estimates of $1.99 per share. Other companies expected to release quarterly earnings before the markets open this morning include American Eagle Outfitters, Fresh Market, and Hovnanian Enterprises, while PetSmart is due to report earnings after the closing bell tonight.

European markets
Most markets were broadly unchanged in Europe this morning as investors took stock of recent gains and awaited further developments in Europe -- particularly in Italy, where a new government has still not been formed following the country's recent elections.

At 7:30 a.m. EST, the DAX was up 1%, the CAC 40 was up 0.15%, the FTSE MIB was up 0.1%, and the IBEX 35 was up 0.34%. In London, the FTSE 100 (FTSEINDICES: ^FTSE  ) was up 0.28%, led by telecom heavyweight Vodafone (LSE: VOD  ) , which surged 6.8% higher after Bloomberg reported last night that the firm has been in discussions with Verizon over a possible merger. The report suggested that merger discussions had failed, leaving a sale to Verizon of Vodafone's 45% stake in Verizon Wireless as a more likely option.

If you're looking for shares that can outperform the wider market, you need to look beyond the news headlines. This free Motley Fool report, "The Top Growth Share For 2013," highlights a share that gained 38% in 2012, during which time the wider market rose just 6%. The company is a household name, and its earnings per share have risen by 44% since 2009 -- so click here now to download your free copy of this report while it is still available.


Read/Post Comments (0) | Recommend This Article (2)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2295841, ~/Articles/ArticleHandler.aspx, 10/20/2014 12:47:07 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement