STTG Market Recap February 25, 2014

The action continues to be great for the bulls.   Down days are very mild as the indexes work off overbought conditions, in this very sharp rally.  Today the markets opened down, dip buyers came charging in, but there was a selloff at the close to create a very small loss of 0.13% in both the S&P 500 and NASDAQ.  The Conference Board’s index of consumer confidence declined to 78.1 in February from a revised 79.4 reading in January. Economists polled by Reuters expected this month’s reading to come in at 80.

So technically this was the second day in a row the S&P 500 made an attempt at all time highs and was rejected.



One name that was a star of the market today was Zulily (ZU).  Readers make recognize it as we mentioned it in mid December, writing:

A recent IPO of a company that offers flash shopping (deep discounts for limited times) catering to moms.   There is an interesting background on this company via IBD; amazing it started business in 2010 and now is valued by the market at $5B.  It is growing like gangbusters but this is the type of action that has people whispering we are in a new bubble.

That was at $42; today the stock rocketed to $58!  Today’s move was in reaction to earnings released yesterday evening:

Late Monday Zulily, which specializes in short-term sales of goods and clothing for women and children, reported a fourth-quarter profit, excluding one-time items,of 10 cents a share, on revenue of $257 million, compared with earnings of 3 cents a share on $128.5 million in sales in the year-ago period. Wall Street analysts had forecast Zulily to earn 4 cents a share on revenue of $226 million.


Tesla Motors (TSLA) was another superstar, surging on news its Model S was the top overall pick among those surveyed by Consumer Reports.


Home Depot (HD) shares jumped as the company’s earnings beat expectations, though sales fell more than expected in the fourth quarter.  This was not a great setup technically coming into the report as the stock sold off with the rest of the market a few weeks back, but failed to rally back with it much.


Shares of Macy’s (M) gained after the department store operator reported a drop in January sales, but said fourth-quarter earnings rose from the previous year.


After the close, shares of First Solar Inc dropped 12% to sub $51 after the solar panel maker reported that its fourth-quarter net income fell 58 percent.

First Solar said it expects to earn between 50 cents and 60 cents per share on net sales of $800 million to $900 million in the first quarter.  Analysts on average were expecting the company to earn 84 cents per share on revenue of $898.3 million.



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