Dow dropped 14, decliners over advancers 5-2 & NAZ was off 6. Bank stocks were soft, the Financial Index fell 1%.
The MLP idex rose 3 to 369 but the REIT index fell 2+ to 226. Junk bond funds & Treasuries were little changed. Oil declined as Italy’s borrowing costs rose to a euro-era record today, deepening concern Europe will struggle to contain its debt crisis. Gold pulled back.
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Photo: Yahoo
JC Penney reported a net loss in Q3 as results were weighed down by restructuring costs & management charges. Adjusted results topped estimates, but it offered a Q4 outlook that was below expecteatioins signaling challenges during the important holiday shopping season. "While our more affluent customers continued to respond well to J.C. Penney's attractions, the moderate customer continues to have limited discretionary spending capability, and that was apparent during the quarter," said CEO Mike Ullman. The department store has struggled as its middle-class customers face high unemployment & a weak economy. Revenue at stores opened at least a year fell 1.6% in Q3 which compares with increases at other major retailers. The EPS loss was 67¢ compared to 19¢ last year. The loss included costs of 10¢ related to the series of management changes Adjusted EPS without the one-time items amounted to 11¢, topping 9¢ forecasted. Revenue slipped almost 5% to $3.98B from $4.19B largely reflecting the discontinuation of its catalog business. In Q4, JCP expects revenue at stores opened at least a year to be between unchanged to slightly up from a year ago. EPS in Q4 is expected to be 64-74¢, including the restructuring & management charges. Excluding these charges, EPS is expected to be $1.05-$1.15. The stock fell 50¢.
J.C. Penney Posts 3rd-Quarter Loss on Retirement-Plan Costs
S&P 500 Financials Sector Index
| Value | 175.54 | |
| Change | -2.23 (-1.3%) |
The MLP idex rose 3 to 369 but the REIT index fell 2+ to 226. Junk bond funds & Treasuries were little changed. Oil declined as Italy’s borrowing costs rose to a euro-era record today, deepening concern Europe will struggle to contain its debt crisis. Gold pulled back.
ALERIAN MLP Index (^AMZ)
DJ REIT INDEXDJR (^DJR)
Treasury yields:
U.S. 3-month | 0.005% | |
U.S. 2-year | 0.230% | |
U.S. 10-year | 2.070% |
| CLZ11.NYM | ....Crude Oil Dec 11 | ...97.89 | ... 1.10 | (1.1%) |
| GCX11.CMX... | Gold Nov 11 | .....1,779.00 | ... 8.50 | (0.5%) |
Get the latest market update below:
JC Penney reported a net loss in Q3 as results were weighed down by restructuring costs & management charges. Adjusted results topped estimates, but it offered a Q4 outlook that was below expecteatioins signaling challenges during the important holiday shopping season. "While our more affluent customers continued to respond well to J.C. Penney's attractions, the moderate customer continues to have limited discretionary spending capability, and that was apparent during the quarter," said CEO Mike Ullman. The department store has struggled as its middle-class customers face high unemployment & a weak economy. Revenue at stores opened at least a year fell 1.6% in Q3 which compares with increases at other major retailers. The EPS loss was 67¢ compared to 19¢ last year. The loss included costs of 10¢ related to the series of management changes Adjusted EPS without the one-time items amounted to 11¢, topping 9¢ forecasted. Revenue slipped almost 5% to $3.98B from $4.19B largely reflecting the discontinuation of its catalog business. In Q4, JCP expects revenue at stores opened at least a year to be between unchanged to slightly up from a year ago. EPS in Q4 is expected to be 64-74¢, including the restructuring & management charges. Excluding these charges, EPS is expected to be $1.05-$1.15. The stock fell 50¢.
J.C. Penney Posts 3rd-Quarter Loss on Retirement-Plan Costs
J.C. Penney Company, Inc. Holding Company (JCP)
Photo: Bloomberg
Bershire Hathaway (BRK.A) acquired a 5.5% stake in IBM (IBM), a Dow stock, amounting to 64M shares acquired mostly in Q3 & cost $10.5-$10.7B. The average price for the stock was about $167, below the current price of $187. “They have laid out a road map and followed it extremely well,” said Warren Buffett. “They’ve done an incredible job.” IBM is investing in areas such as emerging markets & analytics software to boost earnings. IBM said it will generate $100B in cash flow 2010-2015 & return 70% of that to shareholders. Buffett said he was betting on IBM’s ability to help clients’ information-technology departments outside the U.S. IBM is up 1.48.
International Business Machines Corporation (IBM)
This is another going nowhere day. It's encouraging to see Warren Buffet investing in stocks but European debt worries are weighing down the markets. The super committee in DC has a deadline next week for its much awaited report. Dow has been trading sideways for a month. Either it is digesting the big gains from Oct or getting ready to reverse direction. I think the big picture debt problems will be too much for the bulls to handle.
Dow Industrials (INDU)
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