Call it a 'Cahn Job, as in Carl Icahn. The love 'em or hate 'em billionaire sent markets retreating from intraday highs yesterday when he predicted a quote "big drop" in stocks. The Dow still notched a record close, just 24 points shy of 16,000, but it had been above that threshold. The S&P broke a three-day streak of record closes. So, was Icahn right, and is he the only one pounding this drum? Watch Hot Stock Minute host Lauren Lyster ask Yahoo Finance Senior Columnist Mike Santoli in the video above.
We're learning earnings this morning from some of the nation's biggest retailers. First is Home Depot (HD). The home improvement behemoth made 95-cents a share, a nickel better than expectations and up from 3-cents a year ago. Revenues also topped estimates at nearly $19.5-billion. The stock is up more than 3% on these numbers. Also reporting is Best Buy (BBY). It's plunged more than 7% in the premarket despite beating earnings expectations by 6-cents a share. Perhaps that's because revenues were slightly below the consensus. It could also be that the stock was up 269% year-to-date and ready for a pullback.
Today's the day we may finally stop talking about JPMorgan's (JPM) legal troubles. The bank is expected to ink an unprecedented settlement with the Feds. Under the much-discussed deal, JPM would fork over $13-billion. That would include $4-billion to compensate consumers. JPMorgan stock is up fractionally on the announcement, adding to gains of more than 1.5.% It's up 25% year-to-date.
Dropbox is looking to raise more than a drop in the bucket. There are several reports the online storage site is seeking $250-million in funding. The plan values the company at more than $8-billion. Two years ago when Dropbox raised money, it was valued at $4-billion.
STOCKS TO WATCH
Campbell's Soup (CPB) also reported this morning, and it was a big miss. The company made 66-cents a share, 20-cents below estimates. Revenues were also below the consensus at $2.17-billion when estimates had been for $2.29-billion. The stock is now down more than 5% in early trading.
Also reporting this morning was Dick's Sporting Goods (DKS). The retailer exceeded expectations earning 40-cents a share beating analysts predictions by a penny. Sales also surpassed the consensus at $1.4-billion when estimates had come in at $1.37-billion. Dick's heads into the holiday season up 23% year-to-date.
Facebook (FB) is among a number of social media stocks which tumbled yesterday, down 6.5%. Newly-listed Twitter (TWTR) was also down more than 6% and Pandora (P) was down nearly that much. The fall came after an article in Barrons over the weekend called "Bubble Trouble." It talked about a social media stock froth. As for Facebook, it's now down 15% in the last month. However, if you got in at the original price back in May of last year you've still made 20% on the investment.
Tesla (TSLA) is down again this morning. This after finishing yesterday down over 10%. The plunge follows three fires for its Model S plug-in sedan and the announcement that the car will now be investigated by U.S. auto regulators. A recall of the Model S, which the company calls the "safest in America" could follow. It has been a rocky month for Tesla, which has seen its stock drop over 33%. Even with all this bad news, Tesla is still up over 240% since the beginning of this year.