Market Overview

Stocks End Losing Streak, Try For Day Two Of Gains As Fed And Retailers In Play

Stocks End Losing Streak, Try For Day Two Of Gains As Fed And Retailers In Play
Related M
Under Armour's Growth -- The Source Of Buy-Side Debate
John Stumpf And 15 Major CEO Departures In 2016
Related BABA
The Mad Search For Yield: TDA's JJ Kinahan Discusses September IMX Results
Singles' Day Shopping With This ETF
Week In Review: Netflix And Pizza, Microsoft's Cloud Lofty As eBay, Intel Guide Low (Investor's Business Daily)

Broad stock averages are positioning for back to back gains on Wednesday after Tuesday’s late-session spring higher broke what had been a string of four declines fueled by rate-hike jitters.

A holding pattern could take over trading ahead of Friday’s highly anticipated October jobs report. Trading was light, with stock markets open but the bond market and most schools closed for the U.S. Veterans Day holiday.

Wall Street’s gains could be challenged by a sour tone in the retail sector. Macy’s (NYSE: M) fell sharply after a revenue miss and lowered guidance. With several retailers reporting in coming sessions, it’s possible Macy’s dud causes broader Wall Street to lower its expectations for this retailer reporting round.

A Macy’s Miss

Macy's shares are sharply lower early Wednesday after its reported revenues fell short of Street estimates and the department store chain lowered full-year guidance. As for the details, Macy’s said it had net income of $117 million, or $0.36 per share, in Q3, down from $0.61 per share, or $217 million for the same period last year. Adjusted earnings were $0.56 per share, about in line with the Street view. The retailer reported sales of $5.88 billion versus $6.2 billion a year earlier. Wall Street expected $6.09 billion. Macy's revised full-year EPS guidance to $4.20 to $4.30, excluding impairment charges associated mostly with announced store closures. The previous guidance was for $4.70 to $4.80. The company lowered full-year same-store sales guidance on an owned plus licensed basis to a decline of 1.8% and 2.2% from flat. Q4 same-store sales guidance is a 2% to 3% decline.


Singularly Sound? Alibaba Group Holding (NYSE: BABA) may see active trading as the Chinese e-commerce giant reported blockbuster sales for Singles’ Day. It’s a result that some Street economists may stress Chinese consumer resilience despite other signs of a flagging economy.

Beer Deal Moves Ahead

Anheuser-Busch InBev NV (NYSE: BUD) says it has formally agreed to buy SABMiller for about $106 billion, as SABMiller agreed to sell its 58% stake in the MillerCoors LLC joint venture to its partner Molson Coors Brewing (NYSE: TAP). That sale of MillerCoors is necessary for AB InBev to get approval from U.S. regulators to buy SABMiller.

With thanks to those who have served and are serving.

Inclusion of specific security names in this commentary does not constitute a recommendation from TD Ameritrade to buy, sell, or hold.

Market volatility, volume, and system availability may delay account access and trade executions.

Past performance of a security or strategy does not guarantee future results or success.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses. Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.

Supporting documentation for any claims, comparisons, statistics, or other technical data will be supplied upon request.

The information is not intended to be investment advice or construed as a recommendation or endorsement of any particular investment or investment strategy, and is for illustrative purposes only. Be sure to understand all risks involved with each strategy, including commission costs, before attempting to place any trade. Clients must consider all relevant risk factors, including their own personal financial situations, before trading.

TD Ameritrade, Inc., member FINRA/SIPC. TD Ameritrade is a trademark jointly owned by TD Ameritrade IP Company, Inc. and The Toronto-Dominion Bank. © 2015 TD Ameritrade IP Company, Inc. All rights reserved. Used with permission.

Posted-In: News Intraday Update Markets Best of Benzinga


Related Articles (BUD + BABA)

View Comments and Join the Discussion!