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

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.

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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.

4 in 5 Americans Are Ignoring Buffett's Warning

Don't be one of them.

Jun 12, 2015 at 5:01PM

Admitting fear is difficult.

So you can imagine how shocked I was to find out Warren Buffett recently told a select number of investors about the cutting-edge technology that's keeping him awake at night.

This past May, The Motley Fool sent 8 of its best stock analysts to Omaha, Nebraska to attend the Berkshire Hathaway annual shareholder meeting. CEO Warren Buffett and Vice Chairman Charlie Munger fielded questions for nearly 6 hours.
The catch was: Attendees weren't allowed to record any of it. No audio. No video. 

Our team of analysts wrote down every single word Buffett and Munger uttered. Over 16,000 words. But only two words stood out to me as I read the detailed transcript of the event: "Real threat."

That's how Buffett responded when asked about this emerging market that is already expected to be worth more than $2 trillion in the U.S. alone. Google has already put some of its best engineers behind the technology powering this trend. 

The amazing thing is, while Buffett may be nervous, the rest of us can invest in this new industry BEFORE the old money realizes what hit them.

KPMG advises we're "on the cusp of revolutionary change" coming much "sooner than you think."

Even one legendary MIT professor had to recant his position that the technology was "beyond the capability of computer science." (He recently confessed to The Wall Street Journal that he's now a believer and amazed "how quickly this technology caught on.")

Yet according to one J.D. Power and Associates survey, only 1 in 5 Americans are even interested in this technology, much less ready to invest in it. Needless to say, you haven't missed your window of opportunity. 

Think about how many amazing technologies you've watched soar to new heights while you kick yourself thinking, "I knew about that technology before everyone was talking about it, but I just sat on my hands." 

Don't let that happen again. This time, it should be your family telling you, "I can't believe you knew about and invested in that technology so early on."

That's why I hope you take just a few minutes to access the exclusive research our team of analysts has put together on this industry and the one stock positioned to capitalize on this major shift.

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David Hanson owns shares of Berkshire Hathaway and American Express. The Motley Fool recommends and owns shares of Berkshire Hathaway, Google, and Coca-Cola.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.

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