Two Ways To Play: Costco Marches to Own Earnings Beat
Strengthen your portfolio in good times and bad.
Costco Blows Past Consensus
Costco (COST) is out with earnings this morning. According to Reuters, first-quarter profits came in at $0.65 per share, above consensus estimates of $0.62 per share.
Quarterly sales rose nearly 4% to $16.04 billion, less membership fees, which rose to $358.7 million from $338 million. Same-store sales also rose 1%. Earnings may have been higher, but were hurt by non-food discretionary items and related reductions.
From the Bull Pen: If Costco's stock falls and can hold near $50, watch for a potential inverse head-and-shoulders pattern developing. Entry if and when - and keep in mind overhead resistance at $55 and $60.
From the Bear Cave: Retail bears can consider Amazon (AMZN). Is the stock encountering resistance at its 50 DMA? Those attempting the downside can set a buy stop 2 points from entry.
Quick Check Around the World
Asian trading closed with the Hang Seng 0.23%, Nikkei 0.70%, Sensex -0.10%, Taiwan -0.07% and Shanghai -0.07%.
Glancing towards Europe, we see the CAC -0.38%, DAX -0.64%, FTSE 0.31%,
As of 8:15 a.m. EST, S&P futures are trading -3.0 to 892, and Nasdaq futures are -0.5 to 1216.
A Look At Commodities
Crude oil is trading +2.34 to 45.86. Gold is +25.00 to 832.50. Silver is +0.095 to 10.26, and copper is unch at 146.90.
The dollar index is -1.295 to 84.189.
On the Radar
08:30 Trade Balance
08:30 Import Price Index (MoM)
08:30 Import Price Index (YoY)
08:30 Initial Jobless Claims
08:30 Continuing Claims
Click here for the full trading radar.
Good luck today!
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