Stocks fell slightly on Monday, with both the Dow Jones Industrial Average (^DJI 0.06%) and the S&P 500 (^GSPC -0.22%) indexes finishing lower by less than 0.25%.
Today's stock market:
|
Index |
Percentage Change |
Point Change |
|---|---|---|
|
Dow |
(0.09%) |
(19.04) |
|
S&P 500 |
(0.21%) |
(4.86) |
Data source: Yahoo! Finance.
Financial stocks were hit harder than other sectors, and so the Financial Sector SPDR Select ETF (XLF 0.35%) declined by 0.4%. On the other hand, gold prices hit a three-month high to help produce an 11% spike in the leveraged precious-metal bet, Direxion Daily Gold Miners Bull 3X ETF (NUGT 0.99%).
Image source: Getty Images.
As for individual stocks, Hasbro (HAS 0.22%) and Tyson Foods (TSN 0.49%) made big moves following their respective earnings reports.
Hasbro's strong holiday
Hasbro shares soared to a new high after the company announced a strong finish to its 2016 fiscal year. Sales improved 11% over the holiday season to push the company past $5 billion in annual revenue. Investors can thank the recent deal for exclusive rights to the Disney Princess and Frozen lineup for powering much of that market-thumping result.
Hasbro's core brands had a more mixed showing, with flat sales in the North American market and a 3% uptick internationally. But the gaming division, led by the Magic: The Gathering and Monopoly brands, jumped a healthy 23%. Overall operating profit margin rose for the full year, to mark Hasbro's third consecutive year of increased profitability.
The report surprised investors by demonstrating that Hasbro isn't suffering nearly the same level of demand disruption that rival Mattel is enduring. While its peer reported falling sales and profits last month, Hasbro's growth pace was about as strong as management had expected. "Despite some shifts to later consumer purchase," CEO Brian Goldner said in a conference call, "we do not view and did not experience the season as different from other years." That experience suggests Hasbro's deep portfolio of licensed and core brands should drive more record results in the years ahead.
Tyson Foods' record profit
Tyson Foods' stock fell 3% despite a surprisingly strong quarterly announcement. Sales held flat at $9.18 billion and earnings soared 38% to $1.59 per share. Wall Street analysts would have settled for closer to $9 billion of revenue and $1.15 per share of profits.
Image source: Getty Images.
The meat specialist offset a sharp drop in beef costs by posting improved sales volumes in each of its product segments. The quarter also marked record-high operating margins in pork and beef as overall profitability grew to 11% of sales from 9% in the prior-year period. "The year is off to the best start in company history with record earnings, record operating income, and record cash flows," CEO Tom Hayes said in a press release.
Tyson issued a mixed outlook for the rest of fiscal 2017. On the positive side, steady market conditions should help earnings grow to as much as $5.05 per share from the previous $4.85-per-share forecast. Top-line growth will be flat overall, though, and falling beef prices will probably take a bite out of that important segment's profitability.
Still, while results should be lumpy from quarter to quarter, the company is on track to post its fifth straight year of record profits despite falling prices across its biggest meat categories.
