Stock Market Today: Why Five Below and Panera Bread are on the Move

What you need to know about the stock market today.

Mar 26, 2014 at 9:00AM

Look for a positive start to the stock market today, as the Dow Jones Industrial Average (DJINDICES:^DJI) has gained 70 points in pre-market trading. Global markets traded higher overnight, led by a 1% bounce in Europe's STOXX index.

The U.S. economic calendar is light for today, but investors will get a fresh pair of readings on the job market early tomorrow morning. Initial claims for unemployment benefits are expected to rise slightly, to 320,000, while continuing claims hold steady. Both of those figures should come in close to a post-recession low when they are released at 8:30 a.m. EST.

Initial Claims

Initial jobless claims. Source: Federal Reserve Economic Data.

Meanwhile, news is breaking this morning on several stocks that could see heavy trading in today's session, including Five Below (NASDAQ:FIVE), Panera Bread (NASDAQ:PNRA), and Movado (NYSE:MOV).  

Five Below shares were up 17% in pre-market trading after the retailer last night booked fourth-quarter results. The numbers weren't particularly pretty: comparable-store sales increased by just 0.3% as almost all of the company's 22% revenue growth came from opening new locations. Still, business trends are better than many investors feared: Five's management expects a 3% to 4% rise in comps for the spring quarter, in addition to a planned 62 new store openings.

Panera Bread shares were down 1.8% after catching a stock downgrade this morning tied to the company's investor conference last night. The good news out of that conference was that Panera affirmed its forecast for earnings growth this year. However, management also warned that results should be "choppy" as the company rolls out initiatives aimed at getting sales growth back on track. That spending, Panera said, could depress profit growth over the next two fiscal years. Still, short-term earnings swings have no bearing on the company's overall growth potential, which should only improve with these investments in the business. 

Finally, Movado this morning announced strong earnings results for its fiscal fourth quarter. Adjusted profit rose by 12% to $0.46 a share, well ahead of the $0.30 that analysts expected. The high-end watch designer's sales came in at $140 million, 9% above the year-ago period. Movado is seeing strong demand for its products, which has helped sales improve for 16 consecutive quarters. It is also making more money on its average sale: gross profit margin ticked up to 53% of sales in the quarter. The company announced a 25% hike to its dividend, to $0.10 a share. Movado's stock was up 8.3% in pre-market trading.

3 stocks poised to help you retire rich
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 recommends Panera Bread. The Motley Fool owns shares of Panera Bread. 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.

Click here to learn about this incredible technology before Buffett stops being scared and starts buying!

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.

©1995-2014 The Motley Fool. All rights reserved. | Privacy/Legal Information

Compare Brokers