This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: Bumpy Ride Ahead

"While the S&P 500 has risen 94% since bottoming out in March 2009, the vast majority of this return occurred in the first 14 months," UBS noted. "Since then, stocks have gained 8% in an environment that has frequently alternated between risk-on and risk-off. We expect this pattern of volatile returns over a flatter trendline to persist."

So how does the firm think investors should approach current market conditions? UBS expects the most consistent stock performers to be companies that are having success growing the top line or else those who have the biggest dividend payouts. To that end, it highlighted the 20 stocks that delivered the biggest upside surprises to revenue expectations in the first quarter as well the 20 stocks with the highest payout ratios.

The only name that shows up on both lists is Sunoco (SUN). Intuitive Surgical (ISRG), Western Digital (WDC), and DR Horton (DHI) are among the companies on the revenue-surprise list, while Wynn Resorts (WYNN), Johnson & Johnson (JNJ), and Iron Mountain (IRM) are featured among the dividend payers.

As for Tuesday's scheduled news, the earnings calendar is light with FactSet Research Systems (FDS), LDK Solar (LDK), Michael Kors Holdings (KORS), and Casey's General Stores (CASY) among the few companies on the docket.

On the economic front, Tuesday brings export and import prices for May at 8:30 a.m. ET; and the Treasury Department's budget report for last month at 2 p.m. ET.

Companies making news after Monday's closing bell included Seagate Technology (STX - Get Report), Juniper Networks (JNPR - Get Report), and Finisar (FNSR - Get Report).

Shares of Seagate, the hard drive maker, surged more than 3% to $23.27 on volume of 130,000, according to Nasdaq.com, after David Einhorn of Greenlight Capital disclosed ownership of more than 23 million shares, or a 5.4% stake, in the company. That's an increase from the 14.5 million shares, or 3.4% stake, that Einhorn disclosed as of March 31.

A buyback announcement was driving buyers to Juniper, which was adding less than 1% to $16.52 in late trades. The networking equipment maker, whose stock is down more than 40% in past year and hit a 52-week low of $16.38 in Monday's session, announced a new $1 billion buyback authorization.

And finally, Finisar was active in the extended session after the optical communications company gave a weak outlook for its fiscal first quarter ending in July. The company sees a non-GAAP profit of 11 to 15 cents a share in the quarter on revenue of between $218 million to $233 million. The current average estimate of analysts polled by Thomson Reuters is for earnings of 24 cents a share on revenue of $250.4 million in the quarter.

Finisar shares lost 9.5% in Monday's regular session to close at $13.47, and the stock ran as low as $12.70 in late trades before rebounding. The stock was last quoted at $13.52, up a nickel, on volume of nearly 650,000, according to Nasdaq.com.

-- Written by Michael Baron in New York.



>To contact the writer of this article, click here: Michael Baron.

Disclosure: TheStreet's editorial policy prohibits staff editors, reporters and analysts from holding positions in any individual stocks.
2 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
FNSR $21.67 0.00%
JNPR $27.60 0.00%
STX $55.79 0.00%
AAPL $132.54 0.00%
FB $80.54 0.00%

Markets

DOW 18,232.02 -53.72 -0.29%
S&P 500 2,126.06 -4.76 -0.22%
NASDAQ 5,089.3620 -1.4320 -0.03%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs