TED Magazine - May 2017

IN THE TRADING SESSION THAT RAN FROM DEC. 31, 2016, to Feb. 28, 2017, the tED stock index increased 57. 22 points (or 2.95%), another index record, and closed at 1,999.99. Advancing issues beat declining issues by a 24-to-five count. The stock market hit the ground running in 2017 and hasn’t looked back, notching a con- tinuous string of record highs with barely a breather. Highlights from the session include: ✓ The Commerce Department reported that retail sales increased .6% in December. A sepa- rate report indicated that the economy slowed in Q4, with gains of 1.9%, as compared with the 3.5% growth of the quarter before. ✓ Although the February National Associ- ation of Home Builders/Wells Fargo builder sentiment index remained positive, it fell to 65 from 67 in January. Analysts expected a rise. ✓ The Labor Department reported a .6% rise in consumer prices in January, the highest pace in nearly four years and twice economists’ expectations. ✓ The University of Michigan consumer confidence in- dex fell in February to 96. 3 from January’s 98.5, the first time the numbers have dropped since the election. Econo- mists expected 96. “There’s a significant amount of optimism and euphoria in this market,” said Michael O’Rourke, chief market strat- egist at Jones Trading. “I don’t expect there to be a lot of details, but I’m also not confident that the market is going to [be] disappointed by not having details. This market loves to trade on hope.”
tED Index Highlights • Top dollar gainer. Rockwell Automation (ROK) soared 16. 70 points (or 12.43%) after beating forecasts for its fiscal
first quarter. ROK posted net income of $214.7 million (or $1.65 per share) and revenue was $1.49 billion. Earnings, adjusted for one-time items, were $1.75 per share. Analysts polled by Zacks expected earnings of $1.45 per share and revenue of $1.42 billion. ROK received three upgrades and one downgrade: Buckingham Research upped its rating to “buy” from “neutral”; Morgan Stanley increased its rating to “equal weight” from “underweight”; Bank of America/Merrill upgraded ROK to “neutral” from “underper- form”; and Gabelli & Co. cut its rating to “sell” from “hold.” ROK ended at 151.10 and was the top dollar gainer. • Top dollar loser. Acuity Brands (AYI) stumbled after it failed to meet analysts’ expec- tations and fell 19. 56 points (or 8.47%). AYI posted net income of $81.7 million (or $1.86 per share). Adjusted for one-time items, AYI earned $2 per share. Revenue was $851.2 mil- lion. Analysts expected earnings of $2.18 per share and revenue of $887.1 million. “[AYI] stock is down so much today because it’s overvalued,” said Joseph Osha, analyst at JMP Securities. AYI ended at 211.30 and was the top dollar loser. • Percentage gainer. W. W. Grainger (GWW) also exceeded earnings expectations and shares jumped 15. 71 points (or 6.76%). GWW reported net income of $60.7 million (or $1.01 per share). Adjusted for one-time items, GWW earned $2.45 per share. Revenue was $2.47 billion. Analysts polled by Zacks expected earnings of $2.36 per share and revenue of $2.45 billion. GWW closed at 247.96 and was the second-highest gainer. ;
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RECORD MARKETS BEGIN YEAR
The tED stock index continues its rally, pulling back a bit in the latest trading session.
32 the ELECTRICAL DIS TRIBUTOR • May 17 www.tEDmag.com
Top dollar gainer Rockwell Automation $16.70 Advancers 24
Top dollar loser Acuity Brands $- 19. 56 Decliners 5
Top percentage gainer OSRAM Licht 13.16% Unchanged 0
Top percentage loser Toshiba - 26.04%