Dow Futures Flat as Constellation Brands' Sales Double
Oct 3rd 2013 9:00AM
Updated Oct 3rd 2013 9:02AM
Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
According to stock index futures as of 7:20 a.m. EDT, the Dow Jones Industrial Average will open slightly lower this morning, falling by 22 points at the opening bell. There is no quick end in sight to the government shutdown, and that means investors likely won't see the Bureau of Labor Statistics' highly anticipated Employment Situation Summary report tomorrow, when it would normally be released. That report apparently won't be processed until the shutdown is over.
Other governments around the world continue to find a way to function, though, and economic reports out of Europe and China showed that both regions are logging solid growth. The Eurozone's PMI index hit a 27-month high in September, pointing to the potential for a strong fourth quarter for the region. China's services index also improved, notching a six-month high.
With those broader trends in mind, here are a few individual stock stories to watch for in today's market.
Constellation Brands' quarterly results this morning boasted a 109% sales boost that was powered by the consolidation of its newly acquired Crown beverage brand. A 7% rise in depletions for Crown, in addition to a 4-percentage-point increase in profit margin, helped the company log a 35% bounce in earnings per share. Constellation Brands' beer business grew by 3%, while its wine and spirits sales fell by 1%. The stock is down 0.4% in premarket trading.
Tesla shares continue to see selling pressure in the wake of a fire that destroyed a Model S electric car earlier in the week. There were no injuries in the fire, according to the Associated Press, and all indications are that it was caused when the car's battery was struck directly with a metal object while traveling on the highway. That suggests this is an isolated incident and doesn't point to any design weakness in the Model S or its lithium-ion battery. Still, investors appear to be taking the opportunity to book some profits on a stock that's up more than 400% on the year. Tesla shares are down 2.7% in premarket trading after falling 6% yesterday.
Finally, Texas Industries could see active trading after it reported quarterly results this morning. The cement and concrete maker swung to a profit of $0.01 per share compared to a $0.08 loss last year. Sales improved by 33% as construction activity climbed in its major markets of Texas and California. Texas Industries' stock is unchanged in premarket trading.
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The article Dow Futures Flat as Constellation Brands' Sales Double originally appeared on Fool.com.Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Tesla Motors. The Motley Fool owns shares of Tesla Motors. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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