Hot Stock Minute

Sponsored by
Hot Stock Minute

Men’s Wearhouse Soars on Proposal; Yum Brands Plunges; Techs Bleed Again

Hot Stock Minute

Stocks closed mixed. The Dow and the S&P 500 rose slightly after House leaders from both parties met on Capitol Hill. Also, President Obama set up meetings with Republican and Democratic leaders to discuss the budget and debt ceiling. In other news President Obama ended months of speculation by officially nominating Janet Yellen to be the next Fed Chair. Her confirmation is expected to come without much fuss.

POLL: How much faith do you have in Janet Yellen?

Men's Wearhouse (MW) skyrocketed 28% to $45 a share on news of a suitor. Smaller competitor Jos. A. Bank (JOSB) says it's willing to pay $2.3 billion or $48 a share for the troubled clothing chain. Men's Wearhouse, however, doesn't like the way the deal looks, saying it undervalues the company. The chain has been in turmoil since the ouster of its Founder and Executive Chairman George Zimmer in June. As for Jos. A. Bank, it also got a jolt today, climbing 8% in intraday trading. Prior to today, the stock had been down 3% this year.

J.C. Penney (JCP) rose over 1% on word that Saks Chairman and CEO Stephen Sadove will join the Penney board after Hudson's Bay has completed its acquisition of Saks. Penney competitor Sears (SHLD) dropped 4% on a report that it has quietly sold nearly a dozen of its most profitable stores, many of them over the summer.

Family Dollar Stores (FDO) fell 1% after its adjusted earnings came in at 86-cents a share, beating estimates by 2-cents a share. Sales, however, slightly missed the consensus at $2.5-billion versus $2.56-billion.

Costco (COST) rose 2% despite missing on both the top and bottom lines in its latest quarterly report. The discount chain earned of $1.40 a share when expectations were for $1.46. Revenues were more than $1-billion short of consensus at $31.77-billion. On the positive side, same-store sales rose 3%.

Yum Brands (YUM) sank more than 6% on its earnings. The fast food giant disappointed with quarterly earnings of 85-cents a share when expectations were for 93-cents. As for sales, they also came up short at $3.47-billion versus $3.53-billion. Ongoing weakness in China gets the blame. Yum now says a recovery from a chicken scandal at its KFC restaurants will take longer than previously predicted. Prior to today's losses, Yum shares were up 7% year-to-date.

Alcoa (AA) shares climbed 2% on the company's report which came out after yesterday's closing bell. Alcoa says it made 11-cents a share, when analysts were calling for just 5-cents. Revenue was also above consensus at $5.77-billion compared to $5.63-billion. Not only was Alcoa recently booted from the Dow, it has been a market laggard this year, down 12% going into today's session.

Finally, there was more blood today in the tech sector. Yesterday's biggest losers dropped disproportionately again. Among the companies posting the largest percentage losses during today's regular session were Netflix (NFLX), Pandora (P) and Yelp (YELP).

Tell Us What You Think!

Post something in the comments section below.

You can also look us up on Twitter and Facebook.

Rates

View Comments (4)

Recommended for You

  • Russia ordered to pay $50 billion over Yukos

    LONDON (AP) — An international court on Monday ordered Russia to pay over $50 billion in compensation to the former majority shareholder of now-defunct oil producer Yukos over the expropriation of the company more than 10 years ago.

    Associated Press
  • Stock trader who called three crashes sees 20% collapse

    Stock trader Mark Cook, winner of the 1992 U.S. Investing Championship, sees a bear market coming within 12 months, writes Michael Sincere.

    MarketWatch
  • 'Lucy' tops 'Hercules' with $44M at box office

    LOS ANGELES (AP) — Luc Besson's "Lucy" proved mind can overpower muscle, topping a remake of "Hercules" by director Brett Ratner at the box office on the weekend.

    Associated Press
  • 6 steps to a bulletproof retirement portfolio

    Now, as the economy hums along and the market rises, is a good time to bulletproof your portfolio against the volatility that can strike at any time.

    CNBC
  • Boeing CEO sorry for 'cowering' workers remark

    SEATTLE (AP) — Boeing Co. CEO Jim McNerney apologized Friday for saying the aerospace giant's employees were "cowering" during his tenure, a comment one union official called "a new low" in the company's relationship with workers.

    Associated Press
  • Scandal-hit China food firm withdrawing all products, U.S. parent says

    The parent company of a scandal-hit Chinese food supplier said it is withdrawing all products made by the subsidiary. Shanghai Husi Food Co Ltd, owned by Illinois-based OSI Group LLC, is at the center of a major food safety scandal, which has spread from China to Hong Kong and Japan, over…

    Reuters
  • Tyson Foods to shut three factories, cut 950 jobs

    (The third paragraph quote in this July 25 story has been corrected to make timeline clear) (Reuters) - Tyson Foods Inc said it will discontinue operations at three of its factories which make processed meat products such as sausages and hot dogs, affecting about 950 people. The largest U.S. meat…

    Reuters
  • Trendy Chipotle burritos show how pricing power belongs to the hip

    Corporate America can learn a lot from a chicken burrito. As many companies struggle to boost prices without alienating consumers, they may want to study Mexican-food chain Chipotle, which has managed to do both. Companies including Chipotle Mexican Grill Inc , Apple Inc and PepsiCo have shown…

    Reuters
  • Play

    What Opportunities Are There in an Overvalued Market?

    Valuations are high, but Morningstar's quantitative equity ratings uncover two key areas to consider.

    Morningstar
  • IPO Week Ahead: GE Spins Out Synchrony in a Whirl of 22 IPOs

    We have counted 22 initial public offerings (IPOs) on the schedule for this week, including just two holdovers from last week. Of the dozen companies that actually made it to the markets last week, Friday’s ...

    24/7 Wall St.
  • Play

    Can Chinese Pork Producer Crack Second IPO?

    For the world’s biggest pork producer, China’s WH, a second try at an IPO looks set to succeed. WSJ’s Ramy Inocencio talks with Hong Kong bureau chief Ken Brown on why WH’s first IPO failed and why U.S. pork prices are cheaper than China’s.

    WSJ Live
  • What impact would an Argentine default have?

    Under a US court order, Argentina has until Wednesday to either pay hedge funds demanding full payment on of its bad debts -- or face a default that could have serious economic consequences. It has persuaded 92 percent of its creditors to accept writeoffs of up to 70 percent, but is now facing a…

    AFP
  • Fast food workers vow civil disobedience

    VILLA PARK, Ill. (AP) — Comparing their campaign to the civil rights movement, fast food workers from across the country voted Saturday to escalate their efforts for $15-an-hour pay and union membership by using nonviolent civil disobedience.

    Associated Press
  • 6 Money Lessons You Should Have Learned Before College

    In a matter of weeks, the class of 2018 will be...

    Business Insider
  • JD.com to sell Microsoft's Xbox One games console in China

    JD.com Inc, China's second-biggest e-commerce company by market share, will accept pre-orders for Microsoft Corp's Xbox One games console in China from July 28 to July 30, the firm said on Monday. The pre-orders will be taken via Tencent Holdings' mobile social networks Mobile QQ and WeChat, known…

    Reuters
  • Cable on Ohio amusement park ride snaps, hurting 2

    SANDUSKY, Ohio (AP) — An Ohio amusement park ride that swings riders as high as 125 feet has been closed indefinitely after a cable snapped, injuring two visitors.

    Associated Press
  • Why is the big money dumping stocks?

    Big money managers may be doing something the retail investors aren’t – pulling money out of the market.

    Talking Numbers
  • Blackstone Buys $543 Million London Office Tower From Brookfield

    Blackstone Group LP (BX) agreed to purchase an office tower near the Bank of England in the City of London financial district from Brookfield Property Partners LP (BPY-U) for 320 million pounds ($543 million). Blackstone will acquire the 330,000 square-foot (30,657 square-meter) building at 125 Old…

    Bloomberg
  • Obama could curb corporate 'inversions' on his own: ex-U.S. official

    By Kevin Drawbaugh WASHINGTON (Reuters) - President Barack Obama could act without congressional approval to limit a key incentive for U.S. corporations to move their tax domiciles abroad in so-called "inversion" deals, a former senior U.S. Treasury Department official said on Monday. By invoking a…

    Reuters