J.C. Penney Admits a Mistake and Regulators Hound JPMorgan: Morning Buzzers
U.S. stock futures edged lower on Wednesday morning, indicating a red day for the markets. Following yesterday’s generally positive housing-market news, investors have their eyes trained on today’s pending home sales announcement, due out at 10:00 a.m. EST.
Futures at 8:55 a.m.: DJIA: -0.42%, S&P 500: -0.42%, NASDAQ: -0.40%.
Here’s what’s buzzing on Monday Morning
J.C. Penney (NYSE:JCP) was off as much as 1.6 percent in pre-market trading on Wednesday after news got out that it would resuming a “mark-up to mark-down” marketing and sales strategy. Some investors are interpreting this as CEO Ron Johnson admitting that his turn-around sales strategy was a bust. “While our prices continue to represent a tremendous value every day, we now understand that customers are motivated by promotions and prefer to receive discounts through sales and coupons applied at the register,” said a company spokesperson.
Ericsson (NASDAQ:ERIC) announced that it will be restructuring operations in Sweden and will reduce its workforce there by 1,399 positions. The reduction will cover “all job areas, including sales, general and administration, R&D, supply and service delivery,” with the majority of layoffs in the Networks unit…
JPMorgan (NYSE:JPM) was off about 1 percent in pre-market trading as news circulated that regulatory pressure against the bank is building up. JPMorgan is facing a criminal inquiry over whether or not it lied to investors and regulators about risky bets. The scope of the probe also covers ongoing regulatory suspicions that the bank misled authorities over the Madoff scandal.
BlackBerry (NASDAQ:BBRY) climbed as much as 1 percent in pre-market trading. The company is gearing up to release earnings before the opening bell tomorrow. Investors will want to keep a close eye on expectations because the stock has a history of large price swings following earnings reports.
Goldman Sachs (NYSE:GS) was off about 0.7 percent in pre-market trading, wobbling lower despite news that Warren Buffett acquired a tremendous stake in the firm.