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Hot Stock Minute: Sears Soars, JC Penney Loses Big Bucks, Dow Hits Highs

Dan Berman
Hot Stock Minute

There's a startling new discount on Groupon (GRPN). Shares are down an astounding 26% this morning in premarket trading. The company's stock plummeted upon the release of a dismal earnings report after the closing bell. Shares have now lost more than 75% of their value since Groupon went public in November, 2011. Here's why: a net loss of $81 million compared with $65 million a year ago. Plus, the company is warning that sales for the current quarter could be flat. Then, add in shrinking margins and a declining cash flow.

RaeltyTrac is reporting a fall in the number of foreclosures. The company has crunched the numbers and says there were about 950,000 foreclosure-related sales in 2012. That's about a 6% drop, and the least amount in five years. Still, it's 20 times the number of foreclosure-related sales in 2005. In fact, more than one in every five homes being sold is in some state of foreclosure.


First up this morning is Sears Holdings (SHLD), which reported earnings at 7am. The company had a narrower loss than expected because it was able to trim costs. Shares have been up more than 3-percent in early trading. That's on top of a 4-percent rally yesterday.

Kohls (KSS) also released its earnings at 7am. The company says it made $1.66 a share. That beat estimates by 3-cents. But it's down from $1.82 this time last year. Kohl's was up more than 2% yesterday but has given up about half of that in premarket trading. The stock is trading about 20% percent below its 52-week high which it hit back in November.

Completing a trifecta of retail chains is J-C-Penney (JCP). Its shares dropped 13% last night after the company released a disappointing earnings report. Penney's shares were already hurting, but now they're trading at less than half their 52-week high. The problem seems to be one we've heard before. Shoppers don't like the chains move away from sales events.

Gap (GPS) will report earnings after the closing bell. Analysts are expecting the chain to post earnings of 71-cents a share. They say brightly-colored clothing and renovated stores have been helping sales. Gap stock was up more than 2%. Overall it has been pretty flat since the start of the year.

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