Stock Market Today: Why Constellation Brands and MSC Industrial are on the Move

What you need to know about today's stock market.

Apr 9, 2014 at 9:00AM
Longview

The Dow Jones Industrial Average (DJINDICES:^DJI) has gained 63 points in pre-market trading, suggesting a higher start to the stock market today. Global markets rose in overnight trading: Europe's STOXX index had gained 0.2% as of 7:30 a.m. EDT, while Asian shares were up by almost 1%.

Fed

The Fed releases its March meeting minutes at 2 p.m EDT today.

Investors can expect some volatility this afternoon when the Federal Reserve publishes the minutes from its March policy meeting. The central bank in that meeting updated its outlook for when it will begin raising long-term interest rates. Instead of anchoring to a 6.5% unemployment rate, the Fed's forward guidance switched to a set of less concrete variables. We'll learn more about the reasoning behind that change when the minutes are released at 2 p.m EDT.

Meanwhile, stocks on the move this morning include Constellation Brands (NYSE:STZ) and MSC Industrial (NYSE:MSM), which both reported quarterly earnings results before the opening bell. 

Constellation Brands' beer-fueled profit party rages on. The alcoholic beverage maker this morning booked an 86% rise in quarterly sales to $1.29 billion, along with an 84% jump in earnings to $0.79 a share. The company can thank its 2013 acquisition of the Grupo Modelo beer business for most of those heady gains: beer sales leapt by 13% on strong consumer demand. Constellation Brands expects that market to grow another 10%-12% in the year ahead. Meanwhile, lower grape costs will help give wine sales a profit boost as well. All told, the company sees earnings jumping by as much as 25% this year to roughly $4.05 a share. Constellation Brands' stock was up 4.8% in pre-market trading.

Metalworking tools producer MSC Industrial today said sales in its fiscal second quarter rose by 16% to $662 million, exactly what analysts were expecting. MSC's adjusted profit of $0.87 a share was down slightly from last year's $0.90 haul, but still came in at the high end of the company's guidance. Despite last quarter's sales disruptions by extreme weather, the company sees evidence of momentum building in its business: CEO Erik Gershwind said in a press release that MSC is ready to enter "our next level of growth." The company backed up those strong words with an aggressive outlook that called for sales next quarter to rise by 15% to as high as $732 million. The stock was up 0.1% in pre-market trading.

3 stocks to own for the rest of your life
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. 

Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends MSC Industrial Direct. The Motley Fool owns shares of MSC Industrial Direct. 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