Schacknow - Today's Primer, May 3, 2012

 Peter Schacknow, Senior Producer, CNBC Breaking News Desk

Wall Street’s focus on the U.S. labor market intensifies today, with the Labor Department set to issue its weekly report on initial jobless claims this morning and the April employment report tomorrow. U.S. stocks come off a narrowly mixed session that saw the major averages finish well off session lows.


That initial jobless claims report is out at 8:30am ET, with economists forecasting 378,000 for the week ending April 28, down from 388,000 the prior week.  At the same time, the government is expected to report a 0.8 percent annual rate drop in productivity for the first quarter, compared to a 0.9 percent increase during the fourth quarter.


At 10am ET, the Institute For Supply Management’s non-manufacturing index is seen coming in at 55.5 for April, down slightly from the March reading of 56.0.


At 10:30am ET, the Energy Department will issue its weekly look at natural gas inventories.


Though earnings season is winding down, we’ll get a handful of notable companies reporting this morning, including Beam (BEAM), Cardinal Health (CAH), Cigna (CI), Cablevision (CVC), Sara Lee (SLE) and Viacom (VIA).  Dow component Kraft Foods (KFT) leads the list of after-the-bell reports, with First Solar (FSLR), Fluor (FLR), and AIG (AIG) also scheduled to report.


Whole Foods (WFM) is among our stocks to watch this morning, as the grocery chain reports fiscal second quarter earnings of $0.64 per share, five cents above estimates.  The company’s same store sales rose 9.5%, above analyst estimates of an 8.8% increase.


Visa (V) earned $1.60 per share for its first quarter, nine cents above estimates, as customers spent more with their cards.  That trend had also been seen in the better-than-expected earnings report for rival MasterCard (MA) Wednesday morning.  However, sentiment surrounding Visa is being hurt as the company reveals the Justice Department asked it for information on its debit card pricing strategies.


Green Mountain Coffee (GMCR) took a 30 percent after-hours hit, after its fiscal second quarter revenues came in well below expectations, and the company issued weaker than expected full year revenue and earnings guidance.


Zillow (Z) reported first quarter profit of $0.06 per share, above analyst estimates of $0.03.  The real estate website operator has been able to raise the prices it charges realtors, thanks to a jump in new visitors to the site.


Boston Beer (SAM) earned $0.56 per share for the first quarter, 14 cents above estimates, with revenue also beating consensus.  However, its reaffirmed EPS guidance of $3.80 -$4.20 for the year falls below analyst estimates of $4.21.  


Hot Topic (HOTT) has raised its earnings guidance for the current quarter, with the teen retailer now seeing profit of $0.07 - $0.08 per share compared to its prior range of $0.02 - $0.05.  The improved projection comes amid strong same-store sales numbers.


Zumiez (ZUMZ) says same-store sales for April were up 10.1 percent, better than analysts had anticipated.  Zumiez sells apparel and gear aimed at skaters and surfers.


Prudential Financial (PRU) reported first quarter profit of $1.56 per share, excluding certain items, 16 cents below estimates.  The insurer reported an overall first quarter loss on currency fluctuations and an increase in disability claims.


Weight Watchers (WTW) earned $0.74 per share for its first quarter, four cents below estimates. The company did raise its profit guidance for the year to $4.60 - $4.80 per share from $4.20 - $4.60, but investor sentiment is turning negative on a substantial profit drop from a year earlier, and weaker participant volume at its weight-loss meetings.


Carlyle Group (CG) priced its IPO at $22 per share, the low end of an already lowered range.  The private equity firm raised a total of $671 million in the offering.