Ultimate Market Recap: Future Looks Bright for Crocs, Sears Sees an 8% Bump
Wednesday Morning’s Top Stories
Shares of Citigroup Inc. (NYSE:C) declined more than 1 percent early Wednesday. The bank received regulatory approval to engage in investment banking in the Chinese market with Shanghai-based Orient Securities Co. Other large banks such as Goldman Sachs (NYSE:GS) and Bank of America (NYSE:BAC) are also trading lower.
Urban Outfitters Inc. (NASDAQ:URBN) shares were torn apart on Wednesday, falling more than 16 percent. Citi analyst Jeff Black cut his rating from buy to sell, and reduced his price target from $34 to $20. Shares of Aeropostale Inc. (NYSE:ARO) and Gap Inc. (NYSE:GPS) are trading slightly lower.
Don’t Miss: Urban Outfitters CEO Resigns, Shares Plummet.
Commercial Metals Co. (NYSE:CMC) is down almost 4 percent after the opening bell. It has been announced that Carl Icahn dropped his attempted hostile takeover of the company. Icahn launched a $1.73 billion tender offer for Commercial Metals last month.
Supervalu Inc. (NYSE:SVU) shares fell 9.8 percent after it said its fiscal third quarter loss increased to $750 million ($3.54 per share), compared to a loss of $202 million (95 cents per share) last year.
Microsoft (NASDAQ:MSFT) shares continue to fall after saying PC sales will be worse-than-expected, due to last year’s Thailand flooding. Shares of Apple Inc. (NASDAQ:AAPL) and Hewlett Packard Co. (NYSE:HPQ) are also trading lower.
On Tuesday, Walgreen Co. (NYSE:WAG) opened a new store in Chicago that will sell a variety of new items, including: fresh hand-rolled sushi, made-to-order smoothies and fine wine. The company looks to change its perception among the public. Shares are down .71 percent Wednesday morning.
Wednesday Morning Hot Stocks
Markets are mixed today as the Nasdaq (NASDAQ:QQQ) is the only index in the green. Tech is benefitting from the CES hype and news cycle. Here are companies reacting to hot stories.
SUPERVALU’s (NYSE:SVU) loss expanded to $750 million ($3.54 per diluted share) from $202 million (loss of 95 cents per share) in the same quarter a year before. Revenue slipped 4 percent to $8.33 billion from the year earlier quarter. Same-store sales growth was -2.5-3 percent.
Crocs, Inc. (NASDAQ:CROX) foresees a bright future, with the company’s announcement that it expects annual revenue for fiscal 2011 to exceed $1 billion for the first time when year-end results are reported. Revenue is believed to be at the top end of the earlier guidance of $200-205 million for the fourth quarter of 2011. I/B/E/S Estimates report that analysts predict Crocs will announce revenue of $1 billion for fiscal 2011, with $204 million in Q4.
Citing “not enough merchandise traction” and “too much management flux,” Citi lowers Urban Outfitters, Inc. (NASDAQ:URBN) to “sell” from “buy” and cuts its price target to $20 from $34. Urban is down 16.35 percent to $24.60 following yesterday’s announcement that it’s swapping out its CEO.
Lennar Corporation (NYSE:LEN): The residential construction company’s net income dipped to $30.3 million (16 cents per share) versus $32 million (17 cents per share) a year earlier – a 5.5 percent fall from the year earlier quarter. Revenue climbed 10.8 percent to $952.7 million from the year earlier quarter, but the company still missed Wall Street’s mark by $0.01.
Wednesday’s Trending Stocks
Markets have recovered most of their losses after hitting intra-day lows in morning trading. Here are five stocks hitting our trading screens with news.
The Goodyear Tire & Rubber Company (NYSE:GT) is down today after the company reported volume softness across all regions. KeyBanc said the mood of Goodyear’s Detroit presentation was guarded as management suggested near-term trends have been soft, including slower winter tire sales in Europe, North American demand for both consumer and commercial replacement and softening in Asia and Latin America.
China New Borun Corp (NYSE:BORN) skyrocketed following the announcement that it has already signed pre-sales agreements worth a total of around 90 percent of the company’s total edible alcohol production volume in 2012.
Masco Corporation (NYSE:MAS) tops the S&P 500 winners today. The homebuilder is drafting on Lennar’s good fortune.
SYNNEX Corporation’s (NYSE:SNX) price target increased to $37 from $32 at Stifel Nicolaus after reports from SYNNEX of better than expected Q4 EPS. Stifel Nicolaus maintains a Buy rating on the stock.
WebMD Health Corp. (NASDAQ:WBMD): Morgan Stanley reduced the stock to underweight after WebMD lost about 25 percent of its value in yesterday’s action.
Markets closed mixed on Wall Street today: Dow -0.11%, S&P+0.03%, Nasdaq +0.31%, Oil -1.14%, Gold +0.67%.
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Today’s markets were mixed because:
1) Germany. Reports showing the German economy — the biggest in the European Union — to have contracted 0.25 percent in the last quarter raised concern that the single shining beacon of stability left in the euro zone might be backsliding into the mild recession plaguing most of Europe. The euro slid as much as 0.8 percent during the day to a 16-month low of $1.26. Now investors eagerly await key auctions of Italian and Spanish bonds on Thursday and Friday.
2) Companies. Urban Outfitters (NASDAQ:URBN) shares plunged after the clothing retail announced late Tuesday that CEO Glen Senk had resigned, prompting Citigroup (NYSE:C) to downgrade the company’s stock from “buy” to “sell” and cut its price target from $34 to $20. Lennar (NYSE:LEN) shares rose even though the homebuilder announced earnings that fell short of estimates, as revenue was better than expected. Crocs (NASDAQ:CROX) popped 16 percent after the company said it expected fourth-quarter revenue to come in at the high end of its forecast and full-year sales to top $1 billion.
3) Financial. Banks continued their climb today as positive economic data encouraged investors. Despite being targeted in an insurance probe by New York State’s Department of Financial Services, Bank of America (NYSE:BAC), Citigroup (NYSE:C), JPMorgan (NYSE:JPM), and Wells Fargo (NYSE:WFC) all continued Tuesday’s rally.
After Hours Radar Stocks
Shares of Sears Holdings Corp. (NASDAQ:SHLD) closed more than 8 percent higher on Wednesday. Shares have been in a downward spiral since announcing 100 to 120 store closings in December. Shares of Target (NYSE:TGT) and Wal-Mart (NYSE:WMT) also closed higher on Wednesday.
Despite raising its fourth quarter earnings forecast by 5 cents, shares of PVH Corp. (NYSE:PVH) are down more than 4 percent after the closing bell. The clothing company now sees adjusted earnings of $1.08 to $1.10 a share, compared with its previous forecast of $1.03 to $1.05 a share. Gap Inc. (NYSE:GPS) shares are edging slightly higher in late trading.
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Regions Financial Corp. (NYSE:RF) is trading down 1 percent in extended trading. The company announced it will sell Morgan Keegan & Co. to Raymond James Financial Inc. (NYSE:RJF) for $930 million. Shares of Raymond James Financial are also trading lower on the news.
Tractor Supply Co. (NASDAQ:TSCO) jumped almost 4 percent in late trading. The company announced that revenue increased to $1.24 billion from $1.03 billion last year. The company also increased its 2011 EPS range from $2.97 to $2.99, compared to prior estimates of $2.85 to $2.89.
Further Reading: Intel and 4 Tech Super Stars Exciting CES>>
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