Tuesday was a very strong day for the markets as housing news and apparent short covering sparked a solid, all-day long rally. The Dow 30 was up over 200 points almost all day, closing up 223 (1.28%). The S&P 500 gained 28 (1.37%), and the Nasdaq 100 added another 95 (2.00%). News continues to be light this week, but tomorrow oil traders will get a glimpse at the change in inventories for the week. (NYSE: USO), (NYSE: XOP), and (NYSE: OIH) are some ETF's that will likely see some volatility around the release of the numbers.
GoPro (NASDAQ: GPRO) got a much needed rally today (4.86%) as Red Bull announced that they are teaming up with GoPro to form a multi-year exclusive global partnership. Red Bull announced that the agreement includes content production, distribution, cross-promotion and product innovation. Shares are just barely off all time lows.
Netflix (NFLX) popped 3.16% today as UBS offered a buy rating and a $141 price target on Netflix. RBC Capital also reported that "a user survey indicates high usage, satisfaction and churn aversion rates in the U.S." Netflix also released a statement saying that from September on, it will become the exclusive US pay-TV home of the latest films from Disney (NYSE: DIS), Marvel, Lucasfilm and Pixar.
Best Buy (BBY) suffered a 7.42% decline today as the electronics retailer issued a soft profit outlook for the current quarter and announced its chief financial officer Sharon McCollam will leave June 14. Best Buy's revenue fell 1.3% to $8.4 billion last quarter while its earnings per share rose from $0.37 one year ago to $0.71. Just more bad news for the retail space.
Another retailer to announce bad news today was DSW (NYSE: DSW). The company suffered an 11.64% drop today as it cut its outlook for the year amid a challenging environment for retail. DSW now expects adjusted earnings per share of $1.32 to $1.42, down from its previous estimate of $1.54 to $1.64. The bad news today pushed shares well under 2016 lows.