Whirlpool shares jump 9% after hours
The market was absolutely smashed today but it's coming at a time when US and global growth is solid. Trade and interest rate jitters are behind the selling but whether it worsens or gets better might depend on what's next for growth.
If Whirlpool's results are any indication, there is still plenty of momentum left.
Shares of WHR are up 8% after hours after the company said earnings in Q3 were $4.55 compared to $3.76 expected. They also predicted fiscal year earnings of $14.50-$14.80 compared to $14.00 expected.
Now for the bad news.
Whirlpool is traditionally a growth barometer because people buy big-ticket appliances when their finances are solid or improving. The reason that shares of the company have been halved in the past 16 months has nothing to do with growth -- it's about tariffs.
Steel and aluminum are a major input cost and shares of the company have been beaten down to $104 from $203 since last July. Even with the bounce to $113.50 after hours, this doesn't change the story.
In short, Whirlpool is more of a barometer of steel/aluminum and trade tensions than global growth so at best this report says that those tensions aren't hurting as bad as believed; but with shares still down 42% since last July, that isn't saying much.
