Indexes Move Off Lows, End Higher
Watch today’s Markets Desk video.
In the end, takeover bids and rumors outweighed any weakness one could gleam from the monthly jobs report.
In preliminary figures, the New York composite climbed 0.4% to a new record, while the Nasdaq added 0.3%. The S&P 500 and Dow each gained 0.2% — the former to a near-seven-year high, the latter to an all-time best.
Nasdaq volume rose slightly, but the NYSE’s fell. It was the second straight day that volume was mixed in this way.
Armor Holdings (), a maker of bullet-proof vests and blast-proofing systems for vehicles, shot up 4.46 to 82.15 in frenzied action. This is on top of Thursday’s 8% gain. The U.S. military wants to double the size of its new armored vehicle effort. The new plan would require 7,774 Mine Resistant Ambush Protected vehicles.
NuStar Group Holdings (), a transporter of crude oil and refined products, rose 1.28 to 35.38, a new high, in nearly twice its usual trade. The company came public in July at 22 a share. It came within 15 cents of its 10-week line in the April 13 week, at 27.35. It took off the next week, making a solid rebound from that moving average and a clear breakout from a flat base.
Fertilizer maker Terra Nitrogen () leapt 3.75 to 76.99, a new high, in slightly above-average volume. Terra Nitrogen is the No. 2 name, by EPS Rank, in the group. Fertilizer companies, in turn, hold the top spot among all 197 industries tracked by IBD.
A couple of metal stocks fared well. Companhia Vale do Rio Doce () gained 1.11 to 43.88, a new high. The company reported $1.02 a share in Q1, some 143% more than a year ago. Sales rose 114%. These were the best results in several years. The company got a lift from its new Canadian nickel unit. CVRD is the world’s No. 1 seaborne supplier of iron ore, the basic stuff of steel.
Arcelor Mittal () reached up 1.96 to 56.47, a new high. News that a Swedish company had bid $7.7 billion for Canadian pipe maker Ipsco () gave the sense that there may be more room for consolidation in the industry.
Middleby (), a maker of kitchen equipment for restaurants and hotels, lodged a reversal: It climbed as high as 146.62, a new record, but closed off 3.84 at 138.89, below Thursday’s low. The company’s Q1 report showed $1.28 a share, which seemed to have pleased the market. It also announced a 2-for-1 stock split, payable June 15 to holders of record as of June 1. In some cases, stock splits coincide with tops in stocks.
3 p.m. update: Indexes Pare Gains In Late Trading
By JUAN CARLOS ARANCIBIA
Stock indexes tested their session lows in late trading, as morning gains were mostly gone.
At 3:45 p.m. ET, the Nasdaq, S&P 500 and Dow held to 0.1% gains. But the NYSE composite led with a 0.3% gain. Volume was weaker across the board: 5% lower on the Nasdaq, 14% on the NYSE.
Advancers and decliners were basically even on the Nasdaq, while NYSE advancers held a 6-to-5 margin over decliners.
Home builders and some retail groups weakened. For-profit schools and education software industry groups were among the afternoon’s best.
Blackboard () made its second record high in as many days, rising 1.15 to 38.84. On Thursday, the stock gapped out of a flat base following a bullish outlook and earnings that topped expectations. The educational software publisher is one of several stocks that have broken out of bases after protracted corrections, just as their financial results improve sharply.
Fossil () rose 1.47 to 29.79 on heavy trading. The stock cleared a cup base April 16 and receded toward its 10-week moving average, where it found support. Shares remained in a buying range from that pullback, which may also be judged to be a high handle in the pattern. The watch and apparel maker had been in a long drought. But EPS growth ranged from 7% to 77% the past three quarters.
On the downside, American Reprographics () slid 2.79 to 30.41 on huge volume. The stock touched nearly five-month lows as it tried to work its way back from a yearlong correction. The company earned 39 cents a share for Q1, a penny above estimates.
1 p.m. update: Stocks Try Recovering From A Brief Dip
BY DONALD H. GOLD
Stocks recovered from a brief dip, but were below their best levels of the morning.
As of 1 p.m. Eastern time, the Nasdaq, New York composite and S&P 500 were each up 0.2%, and the Dow 0.1%. Nasdaq volume was tracking 6% higher, NYSE volume 2% lower.
Education, Internet and shoe manufacturers were among the groups leading the market.
Universal Electronics () gapped up and lodged itself 2.08 higher at 33.32 in frantic trade. The stock broke out of a base earlier this week and is now extended from its 29.99 buy point.
The maker of pre-programmed universal remotes for consumer electronics reported 31 cents a share in its first quarter. That’s 104% over last year’s bottom line and 4 cents over views. The company won an upgrade from RBC Capital Markets.
Priceline.com () leapt 2.90 to 60.40 on five times its usual trade after the online travel services company upped its Q1 guidance to 43 cents a share. That’s up from an earlier estimate of between 22 cents and 28 cents. Analysts expected, on average, 28 cents, according to a Thomson Financial poll. Priceline had soared as high as 63.18 in the first hour of trading, but cooled off since then.
Celgene () tacked on 1.70 to 63.31, a new high, in slightly above-average trade. The maker of treatments for cancer and immune-inflammatory diseases was hit early Thursday by a poorly received earnings report. The stock fell as low as 59.37 before closing at 61.61, off just 1.25 for the day. That action looked much like an upside reversal. Friday’s action looks like a follow-through to that recovery.
Irish airline Ryanair (), which got thrown for a 6% loss Thursday, fell another 1.82 to 42.60 in heavy trade. The European Commission put off until July 4 its deadline to rule on Ryanair’s $1.9 billion hostile takeover bid for rival Irish carrier Aer Lingus.
BigBand Networks (), which came public in March at 13, plunged 2.56 to 18.87 on nearly five times its average volume for this time of day. BigBand makes the network platforms that enable audio and video signals to transmit to various devices. This is how music and your favorite TV shows end up on your computer and cell phone.
The company beat Q1 earnings estimates but gave Q2 and full year sales guidance below Street expectations.
11 a.m. ET update: Merger News Fuel Stocks In Early Trade
The major indexes opened higher Friday after merger news eclipsed a mixed jobs report.
At 10:40 a.m. ET, the New York composite led with a 0.5% gain. The S&P 500 headed further north of the 1500 mark, rising 0.4%. Meanwhile, the Nasdaq added 0.3%. Nasdaq volume was tracking 4% higher and NYSE volume was tracking 10% lower.
On the economic front, the economy added 88,000 jobs in April, below economists’ expectations of 100,000. Payrolls in March were revised slightly lower to 177,000 from 180,000.
The unemployment rate ticked up to 4.5% as expected. Average hourly earnings rose 0.2%, shy of the expected 0.3%, easing fears of wage inflation.
Reuters Group () gapped up and rocketed 15.15, or 26%, to 74.07. The British media and financial data firm confirmed reports of takeover offers. Early this week, News Corp. () offered to buy Dow Jones () for $5 billion.
Yahoo () gapped above its 50-day line on monster trade. Shares surged 5.07, or 18% to 33.25. A published report said that Microsoft () has resumed its interest in the Internet search engine.
Elsewhere, Crocs () cleared a cup-shaped base. Shares gapped up and vaulted 10 points, or 18%, to a record high of 67.41 on brisk turnover. Late Thursday, the shoemaker delivered a 259% surge in Q1 profit, trouncing views. Sales jumped 217%. The company boosted its full-year earnings and sales outlook ahead of analysts’ estimates. It also announced a 2-for-1 split. Morgan Keegan lifted the stock to strong buy from buy.
Solar stocks were red hot after cooling off recently. First Solar () gapped up and jumped 7.30, or 13%, to 65.25. Late Thursday, the Arizona-based maker of solar modules reported first-quarter earnings of 7 cents a share, reversing a year-ago loss of 8 cents a share. Revenue soared 392%, the highest in 13 quarters. The stock recent found support at its 50-day moving average.
Trina Solar () gained 4.30 to 56.85 and SunPower () jumped 1.91 to 58.74.
On the downside, Jones Soda () gapped down and dropped 2.81, or 11%, to 22.40. Late Thursday, the company reported Q1 earnings of a penny a share, flat compared to a year ago and below views of 3 cents. Jones attributed the shortfall to rising costs. Sales rose 5% to $9.2 million, missing estimates of $13.7 million. Longbow cut the stock to neutral from buy.
Sears Holdings () gapped below its 50-day line, falling 7.72 to 180.60. Late Thursday, the department store operator said it expects first-quarter income between $1.30 and $1.30 a share vs. consensus estimates of $1.46 a share. The company said same-store sales in Q1 were down 4.7%.