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Omar Venerio
Omar Venerio
Articles (1746) 

Friday Morning Market Highlights

Markets up, shares of Big Lots fall despite despite earnings beat

US Markets

U.S. stocks were in the green on Friday morning after the U.S. Department of Labor released its monthly jobs report, which showed that the U.S. economy added 245,000 jobs. The unemployment rate was at 6.7%, as expected. The Dow gained 0.53% to 30,129, the S&P 500 index jumped 0.61% to 3,689 and the Nasdaq Composite Index was up 0.37% to 12,422.

Gainers

• Occidental Petroleum (NYSE:OXY) +9.7%

• Phillips 66 (NYSE:PSX) +6%

• Devon Energy (NYSE:DVN) +7.3%

• EOG Resources (NYSE:EOG) +7.4%

• Valero Energy (NYSE:VLO) +4.8%

Losers

• Royal Caribbean Cruises (NYSE:RCL) -2.6%

• Dominion Energy (NYSE:D) -1.4%

• L Brands (NYSE:LB) -1.4%

• Ralph Lauren (NYSE:RL) -0.5%

Global Markets

The main European stock markets traded in the green. The U.K.'s FTSE 100 gained 0.96%, France's CAC 40 jumped 0.41%, Germany's Dax advanced 0.12% and Spain's Ibex 35 rose 0.91%.

In Asia, Japan's Nikkei 225 fell 0.22%, India's BSE Sensex gained 1.00%, Hong Kong's Hang Seng rose 0.40% and China's Shanghai Composite was up 0.07%.

Big Lots releases earnings report

Shares of Big Lots, Inc. (NYSE:BIG) fell 8.5% on Friday morning after the company announced financial results for its third quarter of fiscal 2020. It posted earnings per share of 76 cents, beating analysts' estimates by 10 cents, on revenue of $1.38 billion, which grew 17.9% year-over-year and beat expectations by $30 million.

CEO Bruce Thorn had the following to say:

"I am delighted to report another record-breaking quarter of results. We registered our strongest ever third quarter sales comp and, by way of continued strategic management of our business and tight control of expenses, we delivered our highest ever adjusted EPS in a third quarter. The incredible efforts of our associates in our distribution centers, our stores, and our corporate headquarters continue to impress me week in and week out. Their commitment to serving our customers and keeping our stores and workplaces safe during this uncertain time has been on display daily and remains a key driver to our superior performance."

In the quarter, the company spent $100 million to repurchase 2.2 million of its own shares. Moreover, on Dec. 2, the Board of Directors declared a quarterly cash dividend of 30 cents per common share.

Looking ahead to the fourth quarter, the company expects that the business will moderate after achieving a strong start for the fourth quarter.

The stock price has increased almost 85% so far this year versus the S&P 500's gain of 13.5% and the SPDR S&P Retail ETF's gain of 33.7%.

At the end of September, Robert Olstein (Trades, Portfolio) boosted his investment in the stock by 32% to 25,000 shares, while HOTCHKIS & WILEY added 41% for a total of 56,430 shares. Joel Greenblatt (Trades, Portfolio) reduced his position in the stock by 20% to 28,260 shares.

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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