Stocks Fab February: can the good times last?; GDP growth slows

Yahoo Finance
0

Stocks are mixed after the latest data on fourth quarter economic growth didn’t offer much for investors to hang their hats on.

The Commerce Department reporting that gross domestic product rose less that previously reported in the last three months of 2014. GDP expanded at a slower-than-expected annual rate of 2.2% in the fourth quarter.

Yahoo Finance’s Senior Columnist Michael Santoli says 2% plus growth on an annual basis still makes the U.S. pretty much the best big grower in the world.

February has been a fantastic month on Wall Street after a rough start to 2015. The S&P (^GSPC), Dow  (^DJI) and Nasdaq  (^IXIC) have all had their best performance in years. The Nasdaq remains in striking distance from the 5,000 mark, a level not seen in 15 years. 

Yahoo Finance’s Aaron Task doesn’t think the bulls are done just yet.

“Overall the longer-term trend remains higher….whether we get a 3 or 5 percent pullback in March. I don’t think that‘s going to stop the overall bull market, at least not in the near future,” Task notes.

Meantime, Santoli believes stocks are mimicking the pattern we saw last year.

“It’s just been this very methodical march higher, and the trend has been strong. Sentiment and valuation are not really friendly to this going much higher. But those things aren’t really good at timing at all.  And the trend in the supply and demand look ok,” Santoli says.

Investors also getting another round of retail results.

J.C. Penney (JCP) reporting adjusted earnings broke even for the holiday quarter, missing Wall Street views.  Penney saw an increase in operating expenses and as it invested more in store expansions. However, revenue came in slightly ahead of forecasts thanks to better-than-expected same-store sales growth.  

Related: Old Navy boosts The Gap; J.C. Penney disappoints; Weight Watchers' thin forecast

The Gap (GPS) posting earnings that topped estimates while revenue came in line with forecasts during the holiday quarter. Sales rose nearly 3% from a year earlier as strength in its Old Navy stores continued to offset weakness in its namesake brand. The company also said it would buy back $1 billion worth of stock and raise its dividend by 4-1/2% to 23 cents. 

Yahoo Finance’s Jeff Macke thinks overall the retail landscape looks pretty good.

“The trend remains in women’s athletic wear. Those company’s continue to crush. And those Gap numbers…I love that Art Peck guy (Gap CEO). I think that stock is looking pretty good,” Macke adds.

Get the Latest Market Data and News with the Yahoo Finance App

Weight Watchers (WTW) warning that profits for the year will be more than 50% short of estimates as it continues to lose members and tries to keep up with weight loss apps and gadgets. The company's earnings and revenue were roughly in line with estimates, but sales fell more than 10% from a year earlier.

Apple (AAPL) remains in focus this morning.  The iPhone maker getting hit with another patent lawsuit. Sweden's Ericsson is suing the tech giant, claiming that it's infringing on 41 of its patents that are essential to Apple devices. This is not the first time the two companies have been at odds. Just last month, Apple didn't renew a licensing agreement with Ericsson because of the fees it was charging for the use of its mobile broadband patents.

In other news, the clock is ticking for Homeland Security funding. The agency is set to run out of money at midnight today unless Congress agrees on a new spending bill.

Related: New Disney princess phenomena unfolds

And Disney (DIS) princess fever is on the rise again and this time it is not Elsa causing all the fuss.  A Cinderella makeup line, based on Disney's new film, sold out within hours of appearing on the Estee Lauder MAC cosmetics website, according to Bloomberg. And talk about a quick return on your investment, a $17 dollar lipstick was later offered on eBay for $100 dollars.

 

Advertisement

Recommended Stories

  • Jeff Bezos' Most Prized Possession Breaks Historical Auction Records At Almost $53 Million

    Jeff Bezos amassed his wealth through Amazon stocks and owns hundreds of millions of dollars worth of real estate, but one of his most valuable possessions may surprise you: art. Among his collection is the renowned piece "Hurting the Word Radio #2 (1964)" by Ed Ruscha, purchased by Bezos for almost $53 million. This artwork, a prime example of Ruscha’s text-based paintings, stands as a signature piece in Bezos’ collection. As concerns over stock market volatility persist, the world’s wealthiest

  • Warren Buffett's Latest $2.6 Billion Buy Brings His Total Investment in This Stock to More Than $77 Billion in Under 6 Years

    The Oracle of Omaha has purchased shares of his favorite stock for 23 consecutive quarters.

  • Bluesky now lets you personalize main Discover feed using new controls

    Bluesky is now allowing users to personalize their main Discover feeds. The social network is rolling out an updated version of its app that lets users offer feedback about its algorithmic feed so they can better customize it using "Show more like this" and "Show less like this" buttons in a post's menu to choose which content the algorithm surfaces. The change will help Bluesky users create a timeline that takes into consideration their own preferences, not what the company thinks they should see.

  • Anthropic now lets kids use its AI tech -- within limits

    AI startup Anthropic is changing its policies to allow minors to use its generative AI systems -- in certain circumstances, at least. Announced in a post on the company's official blog Friday, Anthropic will begin letting teens and preteens use third-party apps (but not its own apps, necessarily) powered by its AI models so long as the developers of those apps implement specific safety features and disclose to users which Anthropic technologies they're leveraging. In a support article, Anthropic lists several safety measures devs creating AI-powered apps for minors should include, like age verification systems, content moderation and filtering and educational resources on "safe and responsible" AI use for minors.

  • I Finally Decided to Cut My Losses and Sell This Stock -- Here's Why

    This real estate technology company could be hit hard by a changing real estate market.

  • With Apple entering the fight, the AI chip wars have gone nuclear

    The AI PC chip wars are going nuclear as Apple officially joins the fight with its M4 processor.

  • Bitcoin Is In a 'Bore You to Death' Phase, but Bottom Could Be Close, Analysts Say

    The current boring crypto market could last between one to six months, and the sentiment will be the most negative right before the turnaround, one hedge fund manager said.

  • 3 Rock-Solid Dividend Stocks That Are Ideal for Retirees

    These are low-risk stocks with high yields.

  • Palantir Stock (NYSE:PLTR): Should You Buy the Post-Earnings Dip?

    Palantir stock (NYSE:PLTR) dipped by about 16% after its Q1 earnings report, prompting me to ponder whether this downturn presents a buying opportunity. Notably, Palantir showcased yet another quarter of solid revenue growth, promising client base expansion, and strong profitability metrics. That said, concerns persist regarding the stock’s elevated valuation. Consequently, despite my belief in Palantir’s long-term prospects as a shareholder, I maintain a neutral stance towards the stock at pres

  • McDonald’s Will Offer a $5 Meal Deal to Lure Customers Back Into Stores

    (Bloomberg) -- McDonald’s Corp. is looking to launch a $5 meal deal in the US that the burger chain is betting can lure penny-pinching consumers back in.Most Read from BloombergElon Musk Pledges to Grow Supercharger Business He Just DecimatedApple Nears Deal With OpenAI to Put ChatGPT on iPhoneBiden Set to Hit China EVs, Strategic Sectors With TariffsIce Cube’s Big3 Basketball League Sells Its First Team in $10 Million DealJim Simons, Code Breaker Who Mastered Investing, Dies at 86The deal could