Stocks opened slightly lower Thursday, despite some strong unemployment and durable goods data. But they soon improved to -- wait for it -- narrowly mixed as investors look ahead to Fed chief Janet Yellen's speech.
The Dow industrials barely rose while the S&P 500 and Nasdaq just fell. The small-cap Russell 2000 was flat on the stock market today.
Guess, Workday Sail; Signet, HP, Dollar General Dive
Dow issues were mixed, with Intel (INTC) down 0.2% and Verizon Communications (VZ) up 0.3%.
Retail stocks were buzzing in early trading.
Guess (GES) bagged a 24% advance. The fashion brand's second-quarter revenue, reported after Wednesday's close, fell more than expected. But earnings were nearly double analyst expectations and management lifted its full-year earnings guidance above consensus targets.
Dollar General (DG) unraveled 13% on a broad Q2 miss, its second straight disappointment. The company cited "retail food deflation and a reduction in both SNAP participation rates and benefit levels, coupled with unseasonably mild spring weather." The stock ended Wednesday working on the fifth week in a flattish consolidation, below a late-July high.
IBD'S TAKE: Stock and bond markets have been marking time for the past several weeks. But is it the calm before the story ahead of Janet Yellen's big speech Friday?
Dollar Tree (DLTR) bent 8% lower after a 188% earnings gain and a 100% rise in revenue stopped short of analysts' forecasts. Dollar Tree has been trading tightly, testing the 10-week moving average and is just below an Aug. 11 high.
Jewelry retailers were also busy, with Signet Jewelers (SIG) diving 15% as its Q2 results missed expectations by a wide margin and the company carved its Q3 earnings guidance to well below the consensus view.
Competitor Tiffany (TIF) surged 7%. The blue box jeweler turned in a solid second quarter beat and gave no-surprise guidance.
Beyond retail, Workday (WDAY) punched up more than 5%, despite reporting late Wednesday that its Q2 earnings per share missed expectations. Workday's Q2 revenue topped analysts' views, but management guided Q3 revenue below projections.
HP Inc. (HPQ) slumped 5% after reporting solid fiscal Q3 results late Wednesday, but offering weak Q4 earnings guidance. Analysts are concerned that HP's printing business, which brought in 74% of Q3 revenue, is weakening in the current quarter. HP shares ended Wednesday up 62% from a February low.
On the IBD 50, Medical Properties Trust (MPW) slipped 0.3%. The stock managed to hold its 10-week line through Wednesday.
Unemployment, Durable Goods And Jackson Hole
Jobless claims eased for a third straight week, to 261,000 in the week ended Aug. 13, the Labor Department said. That was a notch below the prior week's 262,000 claims and better than consensus expectations for an uptick to 265,000.
Durable goods orders surged 4.4% in July, according to Commerce Department estimates, a nice turnaround from June's 4.2% decline. Economists had projected a more mild reversal, estimating a 3.7% gain in July.
Investors will keep an ear cocked toward Jackson Hole, Wyo., where Janet Yellen and other Federal Reserve members are settling in a lot closer than normal to actual bulls and bears as they prepare to discuss "monetary policy frameworks" with other participants at the annual symposium sponsored by the Kansas City Federal Reserve Bank. Yellen is schedule to deliver a speech on Fed policy tools at 10 a.m. ET Friday.
Oil prices ebbed a fraction, with West Texas Intermediate crude futures down 0.3% to just below $47 a barrel, and down about 4% so far this week. Gold eased 0.6% to below $1,323 an ounce. The dollar weakened vs. the euro and the yen. The 10-year yield added 1 basis point to 1.57%.
Globally, markets in Europe returned to their early lows in afternoon trade. The DAX in Frankfurt fell 1% and the CAC 40 in Paris was off 0.8%, while London's FTSE 100 dipped 0.3%. In Japan, Tokyo's Nikkei 225 ended its session down 0.6%, and among China's benchmarks, the Shanghai Composite slipped 0.6% and Hong Kong's Hang Seng Index posted a fractional gain.
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