Stock Market Today: Adobe Pops, Restoration Hardware Tumbles
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.
The Dow Jones Industrial Average is set to rise by 45 points at the opening bell, according to stock index futures. The guessing game on the Federal Reserve's stimulus policies is still driving volatility in the market, with the latest Bloomberg poll showing that only one-third of economists expect the central bank to begin scaling back that program after its meeting next week. But a few stocks, including Adobe , Restoration Hardware , and Texas Industries , are on the move this morning for other reasons. Let's take a closer look at what's behind their big premarket shifts.
Adobe shares are up after its fiscal fourth-quarter earnings results came in better than expected. The software company logged $1.04 billion in sales, slightly lower than the $1.15 billion it booked in the year-ago period. Still, Adobe saw an acceleration of its cloud subscriber gains: that figure jumped to 439,000 from 402,000 a quarter ago. The move to a subscription model is also giving the company greater predictability in its results, and Adobe now sees sales growing at a 20% annual rate between next year and its 2016 fiscal year. The stock is up 6.3% in premarket trading.
Restoration Hardware shares are down following the company's announcement that co-CEO Carlos Alberini is leaving to take the leadership spot at Lucky Brand. The company will definitely miss Alberini, who it describes in its 10-K as a critical contributor to the high-end furniture and hardware business. In fact, the annual report states that a failure to retain him could harm the business and put historical growth rates in jeopardy. Still, Alberini is leaving the company amid a strong spike in sales: Restoration Hardware just reported 39% quarterly growth as comparable-store sales leapt by 29%. The stock is down 8% in premarket trading.
Finally, Texas Industries is on the move after Bloomberg News reported that the cement maker is shopping for a buyer. TXI has been booking much higher sales lately -- up 33% last quarter -- as construction rebounds in its main markets of Texas and California. But the $2 billion company's cement and concrete portfolio could make a good addition to that of a larger rival like Vulcan Materials. Texas Industries stock is up 11% in premarket trading.
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The article Stock Market Today: Adobe Pops, Restoration Hardware Tumbles originally appeared on Fool.com.
Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Adobe Systems. 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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