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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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No positions in stocks mentioned.

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