Do Earnings of These 4 Companies Hint at a Recovery?

The Dow (NYSE:DIA) ended its 3 day rally streak, falling 17 points as Oil (NYSE:USO) and volatility (NYSE:VXX) continue to plague the market. Oil ended the trading session above $104, and is already trading above $105 in early trading.

Although the Dow (NYSE:DIA) and S&P 500 (NYSE:SPY) traded down, that didn’t prevent some big names from rising. Netflix (NASDAQ:NFLX) jumped 4%, and despite AT&T (NYSE:T) buyout news, Verizon (NYSE:VZ) is the communication provider who’s shares are showing strength.

Tuesday was also a busy day for earnings.  These 4 companies released earnings Tuesday.  Will their earnings point to a recovery, or a slowing economy?

1) Discover Financial Services (NYSE:DFS): Shares are charging ahead 2.25% in late trading as the company reported quarterly earnings.  There appears to be a recovery at the credit card company as consumers pay down debt. DFS reported net earnings of $459 million (84 cents per share).  This was a huge improvement from last year’s $122 million loss (22 cents per share) last year. Check Out: Banks to Shareholders: Here’s Your Dividends Back.

2) Adobe Systems Inc. (NASDAQ:ADBE): The software company reported fiscal Q1 results after the bell.  Revenue increased 20% to $1.03 billion, which is a record for the company.  Earnings per share for fiscal Q1 was 58 cents per share, which beat estimates by 1 cent.  CEO Shantanu Narayen said, “Our record results in Q1 represent our sixth consecutive quarter of sequential revenue growth.”

3) Carnival Corporation (NYSE:CCL): The fun ships cruise company didn’t have a very fun day in the markets.  Shares traded down 4.5% Tuesday, and another .74% in late trading.  Higher fuel prices decreased the company’s fiscal Q1 profit down 13%.  Earnings per share of 19 cents were inline with estimates.  Looking forward, the company expects second quarter earnings to be 20-24 cents per share.  This is a decrease from last year’s 32 cents per share in Q2.

4) Dollar General Corporation (NYSE:DG): Fourth quarter results for the discount retailer were positive, as EPS of 65 cents beat estimates by 6 cents.  Shares for the quarter jumped 9.4% to $3.49 billion as consumers continue to pinch pennies.  Consumers aren’t the only ones watching inflation unfold.  CFO David Tehle said, “Given the uncertainty in the geopolitical markets, fuel cost is a variable that we are watching very closely, as it impacts both our transportation and product costs.” Don’t Miss: Retailer Roundup: Your Cheat Sheet to the Winning and Losing Stocks.

Disclosure: No positions