Two Ways To Play: Walmart's Earnings Misstep
Strengthen your portfolio in good times and bad.
Walmart (WMT) reported results for its fiscal fourth quarter. The world's largest retailer said earnings came in at $1.17 a share, 5 cents better than Wall Street estimates. Revenues rose 4.5% year-over-year to $113.65 bln, below expectations of $114.36 bln. Guidance for the first quarter was inline; it estimates EPS in the range of $0.81-0.85 vs. $0.85 consensus. But US comps fell in Q4 and it reported declining gross margins of 24.9% compared to $25.76% last quarter. Shares are down over 2% in the premarket.
For more on analyzing retail companies, be sure to check out Kristin Graham's column, Why Abercrombie's Future Doesn't Look Pretty.
From the Bull Pen: Walmart pulling back towards $52.50 support might be a buying opportunity. Longer term investors might also be attracted to its 2% dividend. Also consider American Eagle (AEO) which has made a series of higher lows. Short term traders can set a tight sell stop below $15.50.
From the Bear Cave: The retail ETF (RTH) is nearing massive resistance near $95. Bears looking for a downside play can consider using this stock with a buy stop above that level.
For more ways to play and other trading ideas from more than 30 top market pros, take a free trial to our Buzz & Banter.
A Quick Check Around the World
Asian trading closed with the Nikkei +0.28%, India -0.62, Hang Seng -0.54%, Shanghai (Closed), and Taiwan (Closed), Australia's ASX 200 -0.28%.
Aross the pond, we see the FTSE +0.50%, CAC +0.27%, DAX +0.28%
As of 8:10 AM EST, S&P Futures are trading -1.75 to 1097.75. Nasdaq futures are +1.75 to 1813.50.
A Look at Commodities
Over in commodities, crude oil is -0.30 to 77.43 while gold is -13.60 to 1106.50 this morning. Silver is -0.198 to 15.900 and copper -0.0225 to 3.2170.
The dollar Index is +0.1850 to 80.6600.
On the Radar
08:30 Initial Claims
08:30 Continuing Claims
08:30 Core PPI
10:00 Leading Indicators
10:00 Philadelphia Fed
Click here for the full trading radar.
Good luck today!
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