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Omar Venerio
Omar Venerio
Articles (1681) 

Wednesday Morning Market Highlights

Nasdaq rose to an all-time high, Five Below up on earnings report

US markets

U.S. stocks were in the green on Wednesday ahead of the Fed's meeting. The Dow Jones Industrial Average lost 0.50% to 27,135 and the S&P 500 index fell 0.10% to 3,204, but the Nasdaq Composite Index was up 0.61% to 10,015 (the Nasdaq broke the 10,000 level for the first time in history yesterday).

Gainers

• Advanced Micro Devices, Inc. (NASDAQ:AMD) +3.3%

• NVIDIA Corporation (NASDAQ:NVDA) +2.7%

Abbvie Inc(NYSE:ABBV) +2%

• ServiceNow Inc (NYSE:NOW) +1.6%

• Newmont Corporation (NYSE:NEM) +1.2%

Losers

• Simon Property Group Inc (NYSE:SPG) -8.7%

• Occidental Petroleum Corp (NYSE:OXY) -8.3%

• PVH Corp (NYSE:PVH) -5.4%

• Coty Inc (NYSE:COTY) -4.7%

• Marathon Oil Corp (NYSE:MRO) -3.8%

Global markets

The main European stock markets traded in the green. The UK's FTSE 100 gained 0.29%, France's CAC 40 advanced 0.10%, Germany's Dax was up 0.17% and Spain's Ibex 35 rose 0.11%.

In Asia, Japan's Nikkei 225 rose 0.15%, India’s BSE Sensex jumped 0.86%, Hong Kong's Hang Seng declined 0.03% and China's Shanghai Composite was down 0.42%.

Five Below releases earnings report

Shares of Five Below, Inc. (NASDAQ:FIVE) gained more than 13% on Wednesday morning after the company announced its first-quarter results. The company posted a loss of 93 cents per share, falling short of analysts’ estimates by 63 cents. Revenue of $200.9 million declined 44.9% year-over-year and fall short of expectations by $29.99 million.

President and CEO Joel Anderson had the following to say:

“The challenges of the last few months were unprecedented. We temporarily closed stores on March 20th as we joined many other retailers in doing our part to help stop the spread of COVID-19. This decision had significant financial ramifications, but the health and safety of our customers and crew are our priority. During this period with stores closed, we worked very quickly yet carefully to implement safety protocols for reopening.”

Net sales were down by 44.9% to $200.9 million compared to $364.8 million in the same quarter of fiscal 2019. Comparable store sales declined by 51.8%.

The operating loss reached $72.2 million compared to operating income of $24.5 million in the first quarter of fiscal 2019, with a net loss of $50.6 million compared to net income of $25.7 million in the first quarter of fiscal 2019.

Looking at the financial position, the company increased its line of credit from $50 million to $225 million. It had $139 million in cash, cash equivalents and investments at the end of the quarter, including the cash raised from drawing on credit facilities.

Jim Simons' Renaissance Technologies initiated a new position in the stock with 129,458 stocks. Steven Cohen (Trades, Portfolio) added 45% to his holding for a total of 314,000 shares, while Mario Gabelli (Trades, Portfolio) sold out the stock.

Disclosure: The author holds no positions in any stocks mentioned.

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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