Hot Stock Minute

Sponsored by
TD Ameritrade

S&P 500 Snaps Losing Streak After Mixed Retail Earnings

Hot Stock Minute

The S&P 500 broke its first four-day losing streak of 2013, although the Dow Industrials couldn't hold on, falling into the red in late trading. After several sessions of bruising losses, the market was propelled by a handful of retailers reporting earnings. There were no major economic reports to point to today. Tomorrow will bring existing homes sales, and more importantly, release of Fed minutes. Traders are actively looking for clues as to whether the central bank will begin to retreat from its bond-buying stimulus program next month.

J.C. Penney (JCP) earnings were horrendous, but not bad enough to keep the stock from popping. Shares rose roughly 6% on its report which showed losses of $2.16 a share, more than twice the already-awful expectations for a loss of $1.06 a share. Revenue was also below estimates at $2.66 billion dollars, almost $100 million under estimates. Sales at stores open at least a year fell nearly 12% during the quarter as J.C. Penney reverted to its old ways of running promotions. But CEO Myron Ullman called the back-to-school season encouraging. In addition, Bloomberg reports that hedge fund manager Kyle Bass has accumulated a long position in the company's stock.

Best Buy (BBY) soared over 13% after posting adjusted earnings of 32-cents a share when expectations were for 12-cents. Revenues also beat at $9.3 billion. Sales are in fact down drastically over last year largely because the chain closed dozens of underperforming stores. Meanwhile, remaining ones have been redesigned with Samsung and Microsoft sections. The company has also exited from its 50% stake in Best Buy Europe. Even before today's gains, Best Buy was the second best performer in the S&P 500 this year, up 160%.

Barnes & Noble (BKS) plummeted over 12% on a statement released along with its earnings. Company founder and chairman Leonard Riggio says he has suspended efforts to buy the retail business for the time being. As for the quarter just ended, B&N slightly beat estimates with adjusted losses of 86-cents a share versus expectations of an 89-cents loss. Revenue was also marginally better than consensus at $1.33 billion, but it was down 8% from a year ago. These have been tumultuous times for the chain, which just this weekend cut the price on one of its Nook tablets to $99. CEO William Lynch resigned last month, after the company announced a 34% sales drop in its Nook business. In June, Barnes & Noble said it would no longer make most Nook tablets unless it found a partner.

Urban Outfitters (URBN) climbed 8% after its earnings report yesterday after the closing bell. The clothing chain missed revenue projections with sales of $759 million versus estimates of $768 million. However, it beat on the bottom line, posting profits of 51-cents a share, 3-cents above estimates. The company says it was successful in its attempts to run fewer discounts during the period. Sales were particularly strong at Anthropology stores which have been revamped to offer more feminine and bohemian styles. Prior to the gains we've seen today, the stock has been down about 3-percent this year.

The TJX Companies (TJX), the parent of T.J. Maxx, rose nearly 7% on a positive quarter. Revenue at stores open at least a year climbed 4%. That helped the company earn 66-cents a share, up a dime from a year ago and beating estimates of 63-cents a share. Revenue rose 8% to $6.44 billion above estimates of $6.37 billion. TJX is one of the few department stores not to disappoint with its report. Macy's and Kohl's both reported lackluster periods last week.

Also a part of this morning's earnings blizzard was Home Depot (HD) At first the stock moved several points higher, but after a dip into the red, shares wound up hovering near the flatline, ending down 1% for the day. The chain beat on both the top and bottom, posting profits of $1.24 a share when expectations were for $1.21. That came on $22.5-billion dollars in sales ahead of estimates for $21.798-billion. Home Depot says it is in fact benefiting from a much-talked about rebound in the housing market. The company is raising its outlook for both same-store sales and yearly earnings. Prior to today, Home Depot stock is up about 18-percent year-to-date


View Comments (0)

Recommended for You

  • U.S. SEC to pay $30 million-plus in largest whistleblower award

    By Sarah N. Lynch WASHINGTON (Reuters) - An anonymous tipster living abroad will be receiving more than $30 million, in the largest whistleblower award ever doled out by U.S. The Securities and Exchange Commission said on Monday that the whistleblower provided crucial information that helped…

  • Wall Street Has A New Worry Now That The Economy Is Recovering

    Business Insider is at the annual Bloomberg Markets Most Influential Summit on Monday, and this year  guest after guest has talked about the same worry. Early in the conference Carlyle CEO William Conway, hedge fund legend Julian Robertson, and William Dudley CEO of the Federal Reserve Bank of New…

    Business Insider
  • Apple sells more than 10 million new iPhones in first three days

    Apple Inc said it sold more than 10 million iPhones in the first weekend after its new models went on sale on Friday, underscoring strong demand for phones with larger displays. Chief Executive Tim Cook said the company could have sold even more iPhone 6 and iPhone 6 Plus models if supplies had…

  • Top Analyst Upgrades and Downgrades: Auxilium, BofA, Genworth, MGM, Walgreen, Wynn, Yahoo and More

    Auxilium Pharmaceuticals Inc. (AUXL) was downgraded to Hold from Buy at Stifel. Genworth Financial Inc. (GNW) was written up in Barron’s over the weekend as having 80% upside potential. Las Vegas Sands Corp. (LVS) was downgraded to Market Perform from Outperform and the price target was cut to a…

    24/7 Wall St.
  • After big gains, stocks Cramer would avoid

    If you're looking at these stocks due to chatter of a super-cycle, Cramer thinks you'll come to regret it. Because sand is such an important part of fracking , a relatively new drilling process that's made formerly hard to reach deposits of oil (New York Mercantile Exchange: @CL.1) and natural gas…

  • Ruble Falls on Brent Decline, Fed Concerns: Russia Reality Check

    Markets are reacting in real time to tension in Ukraine following Russia’s March incursion into Crimea and subsequent annexation of the Black Sea peninsula. The Micex Index fell 1 percent to 1,417.46 at 12:44 p.m. in Moscow, giving a loss since Feb. 28, the day before President Vladimir Putin ’s…

  • EMC Stock Soars After Investors Learn About Mega-Merger Talks With HP, Others

    For nearly a year, EMC and HP have been kicking the tires on a merger that would have created one the biggest enterprise tech companies on the planet — with over $130 billion in annual sales, according to the Wall Street Journal. Both companies were concerned they couldn't sell the deal as it was…

    Business Insider
  • 5 401(k) Gotchas to Avoid

    Between employer contributions and the ability to defer income tax on your own contributions, 401(k) plans often help you come out ahead in retirement saving. Here are five 401(k) pitfalls to watch out for: [See: 10 401(k) Facts Everyone Should Know.]

    U.S.News & World Report LP
  • Clorox exits Venezuela citing govt restrictions

    Clorox is shutting down all operations in Venezuela, citing restrictions by the government, supply disruptions and economic uncertainty. The consumer products company said that for almost three years its affiliate, Corporación Clorox de Venezuela S.A., had to sell more than two-thirds of its…

    Associated Press
  • Russian Industrial Giant Facing Bankruptcy?

    One of Russia's commodity producers could get crushed under the weight of its debt. U.S.-traded shares in the producer of coal, iron ore and steel, Mechel (MTL), fell 30%. The Market Vectors Russia ETF (RSX)  fell 1.83% today. The  iShares MSCI Russia
  • US cracks down on companies moving overseas

    The Obama administration cracked down Monday on certain overseas corporate mergers and acquisitions, aiming to curb American companies from shifting their ownership abroad to shirk paying U.S. New regulations from the Treasury Department will make these co-called corporate inversions less lucrative…

    Associated Press
  • Alibaba becomes world’s largest IPO, but stock dives

    It’s official: Alibaba is the world’s largest IPO. The title was pretty much in the bag on Friday, when the Chinese Internet juggernaut raised $21.8 billion in a blockbuster public debut, and was on its way to $25 billion after the New York Stock Exchange said the underwriting banks would sell…

    San Jose Mercury News
  • Gold crashes and is now tarnished for good

    Gold shined brightly at the beginning of 2014, with bullion prices jumping by about 13% from New Year’s Day until mid-March. Last week, the precious metal settled near lows not seen since Christmas 2013.

  • Linn Energy: No Surprise, Everyone Loves ExxonMobil Swap

    Last week, Linn Energy (LINE) arranged to swap some assets with ExxonMobil (XOM). On the heels of a positive take from Credit Suisse last week, two more analysts murmuring sweet nothings about the deal tdoay. RBC's John Ragozzino and team note that Linn's "portfolio high-grading strategy" continues…
  • The Debit Card Danger You're Probably Forgetting

    As the American economy sunk in the wake of the Great Recession, many Americans were forced to rethink their spending habits and tossed their credit cards overboard, reaching instead for the perceived safety of their debit cards. Debit cards protect you from yourself by limiting your spending to…

    U.S.News & World Report LP
  • How to Play the Real-Estate Market

    Skimpy interest rates, pent-up demand and lower prices have sparked gains of about 20% in the median price of new and existing homes over the past two years. Select REIT Index—which covers a number of investment vehicles—has climbed about 150% since the beginning of 2009, roughly matching the…

    The Wall Street Journal
  • Blackstone to pull out of Russia

    US private equity group Blackstone is "giving up on Russia", highlighting how even well-connected western investors are shying away from doing business in the country. The New York-based buyout group has been frustrated in its attempts to find deals in the country since its co-founder Stephen…

    Financial Times
  • SPIN METER: Those changing health law numbers

    Call it health care law numerology. The Obama administration has had to revise and refine some initial enrollment numbers for health insurance sign-ups after they turned out to be too optimistic. Parsing the numbers is a new pursuit for administration officials from President Barack Obama on down,…

    Associated Press
  • 25 Things To Know About Investing By Age 25

    Most of us are just in it to bulk up our savings for retirement, make a little extra money on the side, or even just beat inflation (more on that in a minute). ... but your retirement savings are. Retirement savings, on the other hand, are invested if you put them in a retirement fund like an IRA…

    Business Insider
  • Tax refunds will be cut for ACA recipients

    A significant benefit of the Affordable Care Act is the opportunity to receive money-saving tax credits up front to cut the overall cost of health insurance, but now hundreds of thousands of consumers could owe back some of that money next April.Those affected took advance payments of the premium…