Stock Market Today: Futures Leap as RadioShack Tumbles

Why RadioShack, AutoZone, and E.W. Scripps stocks are on the move today.

Mar 4, 2014 at 9:00AM
Longview

Investors can expect a much higher start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) has gained 168 points, or 1.04%, in pre-market trading. Easing tensions in Ukraine helped world markets recover from yesterday's sell-off, and Europe's stock index rose by 2% overnight. If Wall Street follows that lead the S&P 500 could easily reach a fresh record high today, while the Dow would need a 2.5% rally to do the same.

There isn't much on today's economic calendar, but investors will get a new reading on unemployment tomorrow when the Automatic Data Processing jobs report is released at 8:15 a.m. EST. That report is expected to show a gain of 150,000 private-sector jobs in February, below January's 175,000 figure.

ADP Change in Nonfarm Payrolls Chart

ADP Change in Nonfarm Payrolls data by YCharts.

Meanwhile, news is breaking this morning on several stocks that could see heavy trading in today's session, including RadioShack (NYSE:RSHCQ), AutoZone (NYSE:AZO), and E.W. Scripps (NYSE:SSP).

RadioShack this morning announced results for a brutal holiday quarter that saw comparable-store sales plummet by 19%. Revenue came in at $935 million -- 20% lower than last year and significantly below the $1.1 billion that Wall Street expected. The retailer also booked a surprise loss of $1.90 a share. While it was stung by the same promotional selling environment that affected most consumer electronics retailers, RadioShack was particularly hard-hit: It now plans to close up to 1,100 stores and take on $800 million in new debt as part of a stepped-up turnaround strategy. The stock is down 24% in pre-market trading.

AutoZone today booked surprisingly strong results for its fiscal second quarter. Sales rose by 7.3% to reach $2 billion, ahead of Wall Street's $1.97 billion target. Profit grew even faster as the auto parts supplier logged its 13th straight quarter of double-digit earnings growth: EPS improved by 18% to $5.63, while analysts had forecast $5.55. AutoZone is doing just about everything right these days, with comparable-store sales growing at a healthy 4.3% while profitability ticks higher at the same time. That suggests the stock can continue to climb despite the almost 300% rally its seen over the last five years. Shares are up 1.8% in pre-market trading.

Finally, E.W. Scripps reported slightly better than expected fourth-quarter results this morning. The media company's advertising revenue fell relative to last year's results, which were lifted by record spending on political ads. Nevertheless, Scripps managed gains in local advertising and in retransmission fees, which helped it meet expectations with a $0.14 a share profit in the quarter. The stock is unchanged in pre-market trading.

Retire wealthy
It's no secret that investors tend to be impatient with the market, but the best investment strategy is to buy shares in solid businesses and keep them for the long term. In the special free report "3 Stocks That Will Help You Retire Rich," The Motley Fool shares investment ideas and strategies that could help you build wealth for years to come. Click here to grab your free copy today.

Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not 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.

1 Key Step to Get Rich

Our mission at The Motley Fool is to help the world invest better. Whether that’s helping people overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we can help.

Feb 1, 2016 at 4:54PM

To be perfectly clear, this is not a get-rich action that my Foolish colleagues and I came up with. But we wouldn't argue with the approach.

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.

"The Motley Fool aims to build a strong investment community, which it does by providing a variety of resources: the website, books, a newspaper column, a radio [show], and [newsletters]," wrote (the clearly insightful and talented) money reporter Kathleen Elkins. "This site has something for every type of investor, from basic lessons for beginners to investing commentary on mutual funds, stock sectors, and value for the more advanced."

Our mission at The Motley Fool is to help the world invest better, so it's nice to receive that kind of recognition. It lets us know we're doing our job.

Whether that's helping the entirely uninitiated overcome their fear of stocks all the way to offering clear and successful guidance on complicated-sounding options trades, we want to provide our readers with a boost to the next step on their journey to financial independence.

Articles and beyond

As Business Insider wrote, there are a number of resources available from the Fool for investors of all levels and styles.

In addition to the dozens of free articles we publish every day on our website, I want to highlight two must-see spots in your tour of fool.com.

For the beginning investor

Investing can seem like a Big Deal to those who have yet to buy their first stock. Many investment professionals try to infuse the conversation with jargon in order to deter individual investors from tackling it on their own (and to justify their often sky-high fees).

But the individual investor can beat the market. The real secret to investing is that it doesn't take tons of money, endless hours, or super-secret formulas that only experts possess.

That's why we created a best-selling guide that walks investors-to-be through everything they need to know to get started. And because we're so dedicated to our mission, we've made that available for free.

If you're just starting out (or want to help out someone who is), go to www.fool.com/beginners, drop in your email address, and you'll be able to instantly access the quick-read guide ... for free.

For the listener

Whether it's on the stationary exercise bike or during my daily commute, I spend a lot of time going nowhere. But I've found a way to make that time benefit me.

The Motley Fool offers five podcasts that I refer to as "binge-worthy financial information."

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. It's also featured on several dozen 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 ... and I don't say that simply because the hosts all sit within a Nerf-gun shot of my desk. Rule Breaker Investing and Answers contain timeless advice, so you might want to go back to the beginning with those. The other three take their cues from the market, so you'll want to listen to the most recent first. All are available at www.fool.com/podcasts.

But wait, there's more

The book and the podcasts – both free ... both awesome – also come with an ongoing benefit. If you download the book, or if you enter your email address in the magical box at the podcasts page, you'll get ongoing market coverage sent straight to your inbox.

Investor Insights is valuable and enjoyable coverage of everything from macroeconomic events to investing strategies to our analyst's travels around the world to find the next big thing. Also free.

Get the book. Listen to a podcast. Sign up for Investor Insights. I'm not saying that any of those things will make you rich ... but Business Insider seems to think so.


Compare Brokers