Dow Jumps Over 200 Points As Radio Shack Tumbles, Smith & Wesson Gains After Hours

The S&P 500 hit a new record and the Dow gained over 200 points, but Radio Shack dropped sharply on a weak earnings report. Smith & Wesson shares gained after hours.

Mar 4, 2014 at 10:00PM

After yesterday's sell-off on Ukraine concerns, stocks recovered strongly as tensions eased today as Russia pulled back troops from the border. President Vladimir Putin seemed to heed the warning signs from the market after Russian stocks fell 10% yesterday, and said that military force would only be used as a "last resort." As a result, the Dow Jones Industrial Average (DJINDICES:^DJI) soared 228 points, or 1.4%, while the S&P 500 set another record at 1,874, gaining 1.5%. So-called safe haven assets like gold and treasuries fell. 

There were no economic reports released today, though President Obama put out his 2015 budget, a $3.9 trillion outline that calls for additional spending on roads and bridges and an expansion of early childhood education, which would be funded by rolling back tax breaks on the wealthy. As such, the plan has little chance of passing a divided Congress, where Republicans control the House.

Radio Shack (NYSE:RSHCQ) finished down 17% today after reporting earnings, and saying it would close 1,100 underperforming stores. The electronics retailer said comps fell a whopping 19% during a particularly tough holiday season as CEO Joseph Magnacca cited "intense promotional activity" and "a very soft mobility marketplace" for the poor performance. The company finished with an adjusted loss of $1.28 per share, well below analyst estimates of a $0.14-per-share loss. Radio Shack is just the latest retailer to be confronted with the cold realities of a changing economic landscape, and said it made the decision to close the 1,100 stores after a comprehensive review of its portfolio, but it would still have a strong presence in each market. In a potential bright spot, the company said it saw growth at its new Concept Stores. A full-on comeback for Radio Shack seems unlikely after a quarter like this, but I'd give new CEO Magnacca a little more time to implement his turnaround plan before leaving the stock for dead. 

After hours, shares of Smith & Wesson (NASDAQ:SWHC) were firing higher, up 7% on a better-than-expected earnings report. The gun-maker posted a per-share profit of $0.35 a share, better than estimates of $0.29, while revenue ticked up 7.1% to $145.9 million, above the consensus at $142.3 million. CEO James Debney said the quarter reflected "the successful execution of our growth strategy," and the company also increased market share in the polymer pistol category as handgun revenue grew by 30% The quarter's result were also impressive considering that the post-Sandy Hook surge in gun-buying has faded away. Smith & Wesson's guidance for the current quarter was ahead of estimates at $0.37-$0.40 against the consensus at $0.35. At a P/E of just 9 and on its third straight earnings beat, the manufacturer continues to look like a solid value play.

Stocks you'll never want to sell
As every savvy investor knows, Warren Buffett didn't make billions by betting on half-baked stocks. He isolated his best few ideas, bet big, and rode them to riches, hardly ever selling. You deserve the same. That's why our CEO, legendary investor Tom Gardner, has permitted us to reveal The Motley Fool's 3 Stocks to Own Forever. These picks are free today! Just click here now to uncover the three companies we love. 

Jeremy Bowman and The Motley Fool have no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools don't all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Money to your ears - A great FREE investing resource for you

The best way to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as “binge-worthy finance.”

Feb 1, 2016 at 5:03PM

Whether we're in the midst of earnings season or riding out the market's lulls, you want to know the best strategies for your money.

And you'll want to go beyond the hype of screaming TV personalities, fear-mongering ads, and "analysis" from people who might have your email address ... but no track record of success.

In short, you want a voice of reason you can count on.

A 2015 Business Insider article titled, "11 websites to bookmark if you want to get rich," rated The Motley Fool as the #1 place online to get smarter about investing.

And one of the easiest, most enjoyable, most valuable ways to get your regular dose of market and money insights is our suite of free podcasts ... what we like to think of as "binge-worthy finance."

Whether you make it part of your daily commute or you save up and listen to a handful of episodes for your 50-mile bike rides or long soaks in a bubble bath (or both!), the podcasts make sense of your money.

And unlike so many who want to make the subjects of personal finance and investing complicated and scary, our podcasts are clear, insightful, and (yes, it's true) fun.

Our free suite of podcasts

Motley Fool Money features a team of our analysts discussing the week's top business and investing stories, interviews, and an inside look at the stocks on our radar. The show is also heard weekly on dozens of radio stations across the country.

The hosts of Motley Fool Answers challenge the conventional wisdom on life's biggest financial issues to reveal what you really need to know to make smart money moves.

David Gardner, co-founder of The Motley Fool, is among the most respected and trusted sources on investing. And he's the host of Rule Breaker Investing, in which he shares his insights into today's most innovative and disruptive companies ... and how to profit from them.

Market Foolery is our daily look at stocks in the news, as well as the top business and investing stories.

And Industry Focus offers a deeper dive into a specific industry and the stories making headlines. Healthcare, technology, energy, consumer goods, and other industries take turns in the spotlight.

They're all informative, entertaining, and eminently listenable. Rule Breaker Investing and Answers are timeless, so it's worth going back to and listening from the very start; the other three are focused more on today's events, so listen to the most recent first.

All are available for free at

If you're looking for a friendly voice ... with great advice on how to make the most of your money ... from a business with a lengthy track record of success ... in clear, compelling language ... I encourage you to give a listen to our free podcasts.

Head to, give them a spin, and you can subscribe there (at iTunes, Stitcher, or our other partners) if you want to receive them regularly.

It's money to your ears.


Compare Brokers