Stocks ended off their lows after Cypriot lawmakers rejected a proposed a tax on bank deposits, putting the country's financial bailout in limbo. The Dow erased earlier losses to close slightly higher by 0.03% at 14,456, while the S&P 500 fell 0.26% to 1,548.
Shares of Lululemon (LULU) fell over 2.5% today on the announcement of a problematic bottom line, literally. The company has pulled many yoga pants off its store shelves because the fabric is too sheer. Lululemon says it predicts the troubles will shrink sales about 5%. It also means same-same store sales are likely to rise 5% to 8% from last year compared to earlier estimates of 11%. Lululemon has been trading within a $10 range for the past six months. It began to fall yesterday afternoon on the news.
Shares of Skullcandy (SKUL) climbed 7.5% after the company named Nike (NKE) executive Hoby Darling as its new CEO yesterday. He replaces Jeremy Andrus who departed the company last month. Skullcandy makes things like headphones and iPod cases. It has been a headache for shareholders recently, having lost more than 60% of its share price since last April in the face of increased competition.
Biopharmaceutical firm Affymax (AFFY) is bleeding out. The company lost more than half its market value today after shares tumbled over 60%. Affymax is trying to regroup following the recall of its flagship anti-anemia drug Omontys. The medication is being blamed for extreme allergic reactions which in some cases caused death. The company announced yesterday that it plans to shed 75% of its workforce. Management is also considering putting the company up for sale or declaring bankruptcy.
Gamemaker Electronic Arts (EA) fell 8% after CEO John Riccitiello surprised investors yesterday by announcing his departure. Electronic Arts has been suffering from rapid changes in the video game business. Its bread and butter has been $60 discs which have slid in popularity as more people purchase less expensive digital and mobile games. In his resignation letter, Riccitiello said the company is falling short of its operating plan for the year.