MARKET CURRENTS
real-time news and commentary for investors
MARKET CURRENTS
Flip Order
-
Tuesday, May 22
-
6:20 PM A Booz survey of ~200 auto industry executives finds bullish views abound, as 94% of automaker execs and 92% of auto supplier execs say the sector is somewhat or much better off Y/Y. Profitable growth is seen, with 52% projecting revenue will rise 11% or more, and strong majorities expect Detroit's big three to hold or gain market share next year. 1 Comment
-
4:25 PM More on Collective Brands (PSS): Q1 beats on both EPS and revenue estimates. Net sales rose 5% to $912M, driven by an 8/1% jump in comp store sales, and sales growth of 8.3% in its Performance + Lifestyle Group wholesale segment. Bottom line margins also benefited from lower SG&A expenses. Shares +0.3% AH. Comment!
-
4:12 PM More on Wet Seal (WTSLA): Q1 misses across the board on a 5% Y/Y decline in total revenue. Net earnings also declined 6% versus the year ago period, as top line margins were hit by dismal comp store sales numbers. CEO Susan McGalla commented: "We are disappointed with our first quarter results and recent sales trends at both Wet Seal and Arden B. We are taking immediate actions to rebalance the assortments towards stronger selling categories." Comment!
-
3:58 PM Ford (F) is upgraded by Moody's one notch to Baa3 with stable outlook. Combining the move with Fitch's upgrade last month makes the automaker an investment-grade credit again. 7 Comments
-
3:23 PM Shares of Chipotle (CMG +0.4%) slide lower off of a report that the U.S. Attorney's Office is investigating possible securities laws violations. The company already disclosed that it's been taking heat from the SEC over work authorization verification compliance. Comment!
-
3:10 PM Are cable companies lining up for a money grab? Word out of DC is that FCC chief Julius Genachowski backs a pay-for-play Internet fee model, which he claims would raise efficiencies in the market. Cable providers have already been tossing around the idea of charging customers based on Internet usage, instead of a flat fee - with Comcast (CMCSA +1.1%) going as far as saying it will test the model in two U.S. cities. 2 Comments
-
2:35 PM Shares of Target (TGT +1.5%) keep trickling higher as execs at the Citi Global Consumer Conference tip off how the firm's prospects are shaping up. While the company reaffirms FY12 EPS of $4.60-$4.80, part of the focus remains up north were the company plans to open 125-130 stores in the next couple of years and see its investment start to kick into profits in 2014. (webcast) Comment!
-
2:04 PM The National Association of Broadcasters files a federal court appeal to prevent new rules from being implemented that require political ad sponsors to be identified online. The big 4 networks - owned by Disney (DIS), CBS, News Corp. (NWSA), and Comcast (CMCSA) - argue public disclosure of their information and advertising rates gives an unfair advantage to cable and Internet rivals unaffected by the legislation. Comment!
-
1:27 PM Maybe Facebook (FB) won't prove a major boon for newspapers after all: AppData reports the Washington Post (WPO) and The Guardian have each seen dramatic falls in monthly users for their Facebook "social reader" apps, following news feed changes. Peter Kafka is pleased. "I don’t need to automatically know what my friends are reading — I only want to know about the articles they want me to read." Many users might not be crazy about sharing all of their reading activity either. 2 Comments
-
1:16 PM Southwest Airlines (LUV -1.1%) strikes an agreement with Delta Air Lines (DAL +0.1%) to lease the company 88 Boeing 717s after deciding it didn't need the jets acquired in its purchase of Airtran. The deal could be a win-win, with Delta able to update its aging fleet and Southwest cutting back costs by only flying 737s. 2 Comments
-
1:02 PM Shares of Home Depot (HD +1.4%) and Lowe's (LOW +1.3%) trade higher after existing home sales came in strong for April and provide a whisp of optimism after both names have fallen off over the last month. SA author Kraken says the lack of momentum with the pair of home improvement giants is because the stocks were priced for a recovery - an event that hasn't materialized yet. Comment!
-
12:40 PM Urban Outfitters (URBN +7.4%) CFO Francis Conforti highlights in an earnings CC that online growth is big part of the company's future as direct-to-consumer sales rose to $115M during Q1, largely driven by the 35% Y/Y increase in website traffic. Similar to news breaking from Macy's yesterday, the company also says it will be able to realize inventory efficiencies by selectively fulfilling online orders from stores. Comment!
-
12:28 PM Apple (AAPL) still has the world's most valuable brand, according to BrandZ's annual study, which estimates its value has risen 19% Y/Y to $182.9B. IBM is believed to have passed Google (GOOG) for the #2 spot thanks to a 15% increase, while McDonald's (MCD) is seen holding steady at #4 in spite of a 17% gain. Also in the top 10: Microsoft (MSFT), Coca-Cola (KO), Marlboro (PM), AT&T (T), Verizon (VZ), and China Mobile (CHL). Comment!
-
12:05 PM InterActiveCorp-backed (IACI +1.1%) Aereo succeeds in getting an unfair competition claim that was part of a lawsuit attempting to shut down its $12/month local TV streaming service dismissed. A ruling is still pending on a copyright infringement claim. Broadcasters such as CBS, ABC, NBC, and Fox accuse Aereo of depriving them of retransmission fees from pay-TV providers (ed: the pay-TV providers aren't thrilled about paying for content that's aired for free). Comment!
-
12:05 PM Amidst Sony's (SNE -0.3%) global woes, a bright spot is India, where the company forecasts that sales will jump 30% this FY from $1.15B last year as it benefits from rising incomes. Comment!
-
11:57 AM Ralcorp (RAL -0.1%) says it will report FQ2 earnings after the market closes today after twice delaying its report. Comment!
-
11:50 AM It's the citizens of Macau who may hit the jackpot as gaming operators such as Las Vegas Sands (LVS +1.9%) and Wynn Resorts (WYNN +0.6%) face a labor shortage on the thinly-populated island with rules in place that allow only local citizens to work certain key roles. The inevitable result for the casinos setting up shop for 28M visitors amid 2% local unemployment will be wages that spike higher. Comment!
-
11:35 AM CalSTRS plans to keep the heat on Wal-Mart (WMT +0.7%) by using its 5.3M shares to vote against the entire sitting board at the company. It's not a shocker considering the teachers retirement fund filed suit against the company two weeks ago and has been a vocal shareholder in the past. (Previous: Proxy firms on WMT vote) 6 Comments
-
11:34 AM Facebook's (FB) precipitous decline yesterday tripped a circuit-breaker just 15 minutes after the open and triggered restrictions on shorting. The break will remain in place until the end of today's session. Finra data shows that 23.6M Facebook shares were shorted on Friday and 6.4M yesterday. 4 Comments
-
11:19 AM Stephens initiates coverage on Starbucks (SBUX +0.1%) with an Overweight rating and $66 price target after seeing shares slip 10% over the last month. The bullish vibe is nothing new on the Street, with 22 out of 28 analysts rating the stock a Buy or Overweight and nary an analyst coming in below a Hold. Comment!
-
11:07 AM Shares of Quantum Fuel Systems (QTWW +15.1%) power up a rally after the firm outlines its plans to stick to a core automotive technology focus and make a series of cost-savings initiatives. The news comes in the wake of a big management shakeup at the company earlier this month. Comment!
-
10:53 AM Shares of Ralph Lauren (RL) are falling fast - now up only 2.4% after sporting an early 9% gain - as the company explains on a CC that macro concerns remain in place in Europe, Asia, and the U.S. The more execs talk, the more the shine comes off the firm's FQ4 earnings beat. (webcast) Comment!
-
10:43 AM Global Hunter fires up Buy ratings on a number of shipping stocks including Diana Shipping (DSX +2.5%), DryShips (DRYS +9.5%), Safe Bulkers (SB +2.1%), and Baltic Trading (BALT +4.5%) - while starting Eagle Bulk Shipping (EGLE -0.9%), Excel Maritime (EXM -1.8%), Genco Shipping (GNK +1.1%) with below-keel Reduce ratings. While individual names in the sector tend to get tied up with momentum trading, the overriding theme has been a moderate bounce back off of a 25-year low in the Baltic Dry Index in February. Guggenheim Shipping ETF (SEA) +8.1% YTD. 1 Comment
-
10:00 AM Delta Air Lines (DAL +0.1%) pilots have tentatively approved a new labor agreement which would provide a series of pay hikes from 2013 to 2015, according to union reps. Comment!
-
9:51 AM The public launch of CKE Restaurants - owner of burger chains Carl's Jr. and Hardee's - doesn't appear set to pose an imminent threat to McDonald's (MCD +0.1%) due to the pile of challenges at the cash-strapped company. Funds from the IPO are already earmarked for paying off debt, instead of going to upgrade company-owned restaurants in near-desperate need of a facelift. 2 Comments
-
9:22 AM Tesla Motors (TSLA) announces that it will begin deliveries of its Model S on June 22. The car marks an "all-in" bet by Tesla, with 90% of the company's revenue this year forecast to come from the sedan. Shares +4.3% premarket, helped in part by an initiation from Maxim Group at Buy. 1 Comment
-
9:14 AM Shares of Express (EXPR) nosedive 22.1% premarket after the company issues a lackluster Q1 report and strikes a downbeat tone for Q2. Sales growth is slipping at the company, while it also took on extra costs related to changing its mind over the location of its flagship NYC store. Comment!
-
9:09 AM Chipotle (CMG) could see legal fines related to a SEC probe on employee work authorizations, according to Miller Tabak's Stephen Anderson. The company disclosed in a SEC filing last week that it had received a broad subpoena for employee documents. Comment!
-
9:07 AM Redbook Chain Store Sales: +2.7% Y/Y vs. +3.7% prior week. The cool and wet weather led to decline in apparel sales, lawn & garden sales, and sales of sporting goods. Comment!
-
9:02 AM Google (GOOG) closes its $12.5B acquisition of Motorola Mobility (MMI), which remains a separate business. Motorola CEO Sanjay Jha has stepped down and been replaced by "long-time Googler" Dennis Woodside, who was President of Google's Americas region and who has already initiated an executive shakeup at Motorola. (PR) Comment!
-
9:01 AM Shares of Benihana (BNHN) come off a trading halt to move up 21.3% premarket after receiving a go-private offer from Angelo, Gordon & Co. Following P.F. Chang's China Bisto own rocket ride after going private earlier this month, a number of other similar-sized restaurant sector names could be on watch. KONA, CHUX, BHRI, TXRH, CASA. Comment!
-
8:52 AM Finra will oversee a process that will try to reconcile the botched trades that resulted from the technical problems that hit Facebook's (FB) debut on Nasdaq (NDAQ). Finra's review adds to an inquiry at the SEC. Comment!
-
8:51 AM Behind the Best Buy (BBY) numbers: The earnings beat knocked out by the retailer was boosted by a favorable tax rate, 30.6% compared to 34.6% previous. In addition, a seemingly strong free cash flow number is blunted by factoring in the large jump in account payable to $1.2B from a $561M a year ago. Shares +0.7% premarket. 2 Comments
-
8:44 AM Proxy advisors ISS and Glass Lewis & Co. both issue recommendations that shareholders of Wal-Mart (WMT) vote against CEO Michael Duke and other key board nominees due to the lack of judgement shown in the company's affairs in Mexico. The drive to make sweeping changes at Wal-Mart may be facing an uphill climb with shares just etching out their highest mark since 1999. WMT -0.2% premarket. 1 Comment
-
8:31 AM GameStop (GME) CEO Paul Raines adds another 6,570 shares to his position in the company to take his stake up to 546,012 shares, according to a SEC filing. GME +1.0% premarket. Comment!
-
8:27 AM Benihana (BNHN) will go private, agreeing to be acquired by Angelo, Gordon & Co.'s Private Equity Group for ~$296M; the $16.30/share price represents a premium of 46% over the average closing price for the 30 days ended March 13, 2012, when BNHN announced it was exploring strategic alternatives. Trading halted. Comment!
-
8:18 AM Shares of Ralph Lauren (RL) move down 2.4% in premarket trading after the company beats the earnings estimates of analysts with its FQ4 report and doubles its quarterly cash dividend to $0.40 a share. Analysts are already using the report as a possible indication that luxury names have been beaten down too much on Europe sales concerns with Ralph Lauren overcoming its exposure to the continent. As for that share movement, the speculative buzz says the company may have lowballed its guidance intentionally to tee up a beat down the road. Comment!
-
8:12 AM Facebook (FB -2.4%) continues to fall as the blame game starts over responsibility for its 11% slump yesterday. Among the chief names are Morgan Stanley (MS), the lead underwriter; Nasdaq (NDAQ), for the tech problems on Friday; and of course Facebook. Among the criticisms: the price was too high and too many shares were sold. 2 Comments
-
8:06 AM The FTC speeds up its investigation of Google's (GOOG +0.3%) competitive practices, Bloomberg reports, asking for information from rivals about the company's behavior. The requests to the firms, which include eBay (EBAY), were sent prior to the EU saying yesterday that Google has a "matter of weeks" to resolve a probe and avoid possible fines. Comment!
-
8:03 AM More on Best Buy (BBY): The company plans to keep a $750M-$1B share repurchase plan percolating right along - a move that NBG's Brain Sozzi calls surprising. Retail analyst Rahul Sharma also remains unconvinced about the Q1 report, saying BBY's malaise is spreading to its international segment. Shares +8.5% premarket in bouncy trading. Comment!
-
7:52 AM Cowen upgrades Aeropostale (ARO) to Outperform from Neutral. Analysts with the firm cite the specialty retailer's fashion mix and potential to improve margins in lining up the rating. Just last week, weak margins were the theme at Aeropostale when it reported profits slipped dramatically compared to a year ago. Comment!
-
7:25 AM Las Vegas Sands (LVS) decides to pass on building a casino in Massachusetts, saying the state's plan to allow three casinos in the region will dilute the Boston-area market. The decision comes about a month after Wynn Resorts bailed out of plans to develop in the region after a groundswell of local opposition arose against it. Comment!
-
7:16 AM Goldman Sachs reiterates its Sell rating on Campbell Soup (CPB) after the company recorded a "low quality" earnings beat in FQ3. Analysts with the firm see the core U.S. soup segment as a major issue, with price increases at risk of driving down sales. Comment!
-
7:10 AM Comcast (CMCSA) launches Xfinity TV on its X1 next-generation cloud-enabled TV platform. The company says the service - available soon for HD/DVR customers - will use cloud servers to integrate customized apps, social media, and traditional video services - all controlled by an iPhone or iPod touch if desired. 1 Comment
-
7:02 AM United Airlines (UAL) plans to add daily nonstop service to Tokyo from Denver International Airport - the first carrier to fly direct to Asia out of Denver. The move continues an industry trend of unprofitable European routes getting trimmed in favor of new Asian routes. 1 Comment
-
6:57 AM Guess? (GES) delivers a parting shot against Gucci over a three-year lawsuit that ended up with a small award of $2.5M against it over licensing issues, saying the whole affair could have been settled with a single letter or phone call. The suit asked for damages of over $100M, tripled, on the premise that Gucci's designs were intentionally copied by Guess? to boost sales. Comment!
-
6:25 AM Piper backtracks on a recent upgrade of Lowe's (LOW) after yesterday's guidance blunder, shuffling LOW to Neutral from Overweight, and reducing price-target to $28 from $41. "We still expect home remodeling growth to run above GDP growth for 2012-3, but no longer believe LOW is fully participating in the remodeling cycle," firm says. Shares -10% Monday to $25.60. 1 Comment
Other date
Latest Consumer Articles
