U.S. Markets closed

Michael Kors slashed, Tekmira reverses, AutoNation revs higher

Yahoo Finance
Yahoo Finance

AutoNation (AN): The largest U.S. new-vehicle retailer popping after it posted its best July sales numbers in eight years, selling 27,484 new vehicles during the month. July sales represented an eight percent increase over a year earlier, suggesting pent up demand for autos in the country hasn't been met. In addition, premium luxury vehicles showed the strongest growth in the month, climbing 17% to 5,113 vehicles. Strong sales for U.S autos continues despite a U.S. consumer at the lower end that still only showing stubborn signs of growth.

Tekmira Pharmaceuticals (TKMR): The biotech company's shares are surging on hopes that trials on the company's Ebola treatment will be jumpstarted. Earlier this year the FDA placed a clinical 'hold' on the company's TKM-Ebola Phase 1 healthy volunteer study. However, over the weekend Reuters reported that the FDA "stands ready" to work with companies developing Ebola treatments, meaning Tekmira may be able to initiate a new study. Just this past weekend, the first of two U.S. citizens who contracted Ebola in Africa arrived back stateside; the other health worker is slated to come back sometime this week.

UPDATE: Tekmira reversed lower on reports that smaller biotech companies, specifically MAPP Biopharmaceutical, has an existing Ebola treatment.

Michael Kors (KORS): The luxury goods maker surprisingly sliding despite reporting a profit beat of 91 cents per share, beating estimates by 10 cents, and also a strong revenue beat powered by a 24.2 percent increase in same-store sales. So what's weighing on the shares? The company’s forecast for diluted EPS in the range of 85 cents to 87 cents versus the Street’s call for 89 cents. We saw this last week with Buffalo Wild Wings; growth companies that are serial sandbaggers are suddenly being taken at face value and seeing their stocks get crushed. Whether or not this is an opportunity remains to be seen but for now anyway fashionable growth companies are seeing gauche stock drops.

More from Breakout:

4 lessons from Warren Buffett's biggest quarter ever

Why China, not the U.S., is the audience Hollywood want

PIMCO’s Gross: Jobs data shows U.S. workers are underpaid