Stock Market Today: Why Dish, Rackspace, and Hologic Are on the Move
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.
Index futures as of 7:50 a.m. EST suggest a flat start for the stock market today, with the Dow Jones Industrial Average set to lose 13 points at the opening bell. Still, stocks remain near all-time highs and are on pace to close their best year since 2003.
With that bigger picture in mind, here are a few individual stock stories to watch for in today's market.
Dish Network this morning reported third-quarter revenue of $3.6 billion -- a 4% improvement over last year's results. Profit rose to $0.68 a share as pay-TV subscriber numbers held steady at 14 million. As we've seen with cable operators, Dish's members are paying more per month: Dish's average monthly revenue climbed to $81 per user as content costs crept higher, up from $77 per month last year. The company also benefited from an impressive 24% jump in its broadband subscriber base, to 385,000. Dish's stock is up 3.2% in premarket trading.
Rackspace shares are tumbling this morning in the wake of its earnings release last night. Third-quarter revenue for the cloud company was $389 million, up a healthy 16%. However, Rackspace had to sacrifice some profitability to get that top-line growth. Net income fell by 40% as the company's operating expenses grew to about 88% of revenue amid cutthroat competition from rivals like Amazon.com and Google. Rackspace's stock is down 9.3% in premarket trading.
Finally, Hologic shares are falling after the company last night announced a $1.1 billion goodwill impairment charge as part of its fiscal fourth-quarter results, which led to a loss of $4.11 a share. Sales ticked higher by 6% for the medical device producer to reach $622 million, below analysts' expectations of $642 million. Looking ahead, CEO Jack Cumming said that the company expects next year to be a "transitional" one, and Hologic's guidance calls for a 1%-3% dip in total sales. The stock is down 13.2% in premarket trading.
Go beyond the daily swings
While big daily price swings catch investors' attentions, the best investing approach is to choose great companies and stick with them for the long term. The Motley Fool's free report "3 Stocks That Will Help You Retire Rich" names stocks that could help you build long-term wealth and retire well, along with some winning wealth-building strategies that every investor should be aware of. Click here now to keep reading.
The article Stock Market Today: Why Dish, Rackspace, and Hologic Are on the Move originally appeared on Fool.com.Fool contributor Demitrios Kalogeropoulos has no position in any stocks mentioned. The Motley Fool recommends Amazon.com, Google, and Rackspace Hosting. The Motley Fool owns shares of Amazon.com and Google. 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.
Copyright © 1995 - 2013 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.