It's our 200th show here at Hot Stock Minute. And today we're talking about the upcoming Volcker Rule vote. Lululemon's founder is out. And GM is up as the bailout ends.
It's a big day for the Volcker Rule. Five years after the financial crisis, five regulatory agencies are finally expected to vote on and approve it today. The rule - named for former Fed Chairman Paul Volcker and part of Dodd-Frank - bars banks from trading for their own profit. It's expected to face a fight from banks, even though many say their firms already comply with the rule. Treasury Secretary Jack Lew had instructed the agencies to finish their work on it by the end of the year.
The Federal Government bailout of General Motors (GM) has ended. The Treasury Department announced on Monday it sold its final shares in GM. Taxpayers lost about $10 billion on the $49.5 billion investment in the carmaker. They had a 60% stake in the company at one point. GM shares closed up almost 2% on the news yesterday, closing at a record high of $40.90 for post-crisis GM. More news from the car company today: They plan to make Mary Barra their new CEO. She will be the first female CEO at the company and any of the Big Three U.S. automakers. Barra has been in charge of product development and quality at GM. The stock is up 40% year-to-date.
The founder of yoga pants maker Lululemon (LULU), Dennis "Chip" Wilson, the man who recently came under fire for saying his pants were only for certain body types, announced he will step down as chairman of the company. Lululemon also announced that Laurent Potdevin, formerly of Tom's and Burton, will replace Christine Day as CEO. Day announced she would resign back in June. Lululemon shares are up close to a percent premarket.
Meanwhile, Abercrombie & Fitch (ANF) renewed a contract with its CEO Michael Jeffries. This comes after Abercrombie investor Engaged Capital said the company should replace Jeffries or sell itself. Abercrombie shares were down more than 2% yesterday.
Now a look at four hot stocks the Yahoo Finance team will be watching for you today.
First up is AutoZone (AZO). The country's largest auto parts chain reported earnings of $6.29 beating estimates by a penny. AutoZone revenues rose 5.2% from last year to $2.05 billion when estimates were for $2.1 billion. AutoZone flourished during the country's economic slump mainly because people are owning their cars much longer than they used to. 11.4 years is the average age of a car in the U.S. right now and some experts believe that number could grow 20% by 2018. AutoZone is up more than 28% year to date.
Next, Toll Brothers (TOL). The luxury home building company reported earnings this morning of $0.54 per share beating estimates of $0.43. It's significantly down from last year's $2.35, which the company says was due fewer tax-related adjustments. Revenue jumped 65% to $1.04 billion, beating analysts expectations of $1 billion. Investors will be watching Toll Brothers and its rivals very closely to measure how the housing market is doing amidst rising mortgage rates. Toll Brothers has remained somewhat flat this year, up just 0.3% year to date.
Now, Texas Instruments (TXN). The chipmaker has narrowed its fourth quarter earnings forecast. It's because of a lack of demand by companies to build up inventories of chips to be used in cars, computers and smartphones. The company said it now estimates earnings of $0.44 to $0.48 per share when it previously had predicted $0.42 to $0.50. Revenue was also narrowed with current estimates at $2.92 billion to $3.04 billion while previous estimates had the high end at $3.10 billion. Texas Instruments is up almost 35% year-to-date.
Finally, Burlington Stores (BURL). The company released its first report since its IPO back in October. Burlington reported a loss of $0.05 a share which was pretty much in line with estimates for a loss of $0.05 or $0.06. They also posted revenues of $1.06 billion when analysts were expecting $1.05 billion. Comp sales rose 3.9%. The stock is up almost 13% since its IPO.
Like we said earlier in the program, U.S. taxpayers lost about $10 billion in the government bailout of GM. Now that the US has sold its final shares of General Motors stock, do you think the public got a fair deal bailing out the auto giant? Vote your thoughts below in the daily Hot Stock Minute poll and leave us a post in the comments section.
- Small Businesses
- Volcker Rule