Markets

Stocks making the biggest moves premarket: LOW, BKNG, DKS, GM, SQ, ETSY & more

Check out which companies are making headlines before the bell: Lowe’s – The home improvement retailer reported adjusted quarterly profit of 74 cents per share, missing the 87 cent a share consensus estimate. Revenue beat forecasts, however, and comparable-store sales were up 4.1 percent versus a 3.1 percent consensus estimate. Lowe’s said it was accelerating its strategic investments given a rapidly changing competitive environment. Booking Holdings – The company reported adjusted quarterly profit of $16.86 per share, beating the consensus estimate of $14.12 a share. The company, formerly known as Priceline, also posted better-than-expected revenue, as gross bookings rose 19 percent versus the year before for both the fourth quarter and the full year. Dick’s Sporting Goo...

Lowe’s deepens its partnership with Sherwin-Williams in the paint aisle

Sherwin-Williams is deepening a decades-old relationship with Lowe’s, making it the only nationwide home center to offer Sherwin’s popular brands including Minwax, Cabot and Thompson’s Water Seal. Sherwin-Williams will continue to operate its own stores. On the day the deal was announced, Lowe’s also reported quarterly earnings that fell short as profit margins were squeezed. Lowe’s share prices were down more than 7 percent Wednesday morning. News of the deal comes as Lowe’s fights to keep pace with rival Home Depot, which recently revealed its plans to partner with Tesla to sell solar panels in its stores. Lowe’s and Home Depot compete within the industry to win the best brands that, in turn, will attract more shoppers. Last October, for example,...

Lowe’s to become the exclusive retailer for Sherwin-Williams’ paint products

Lowe’s and Valspar owner Sherwin-Williams are deepening a decades-old relationship, making the home improvement retailer the sole distributor of popular paint brands including Minwax, Cabot, and Thompson’s WaterSeal. Sherwin-Williams will continue to operate its own retail storefronts, as it skips over other major retailers in this deal. The news comes as Lowe’s fights to keep pace with rival Home Depot, which recently revealed its plans to partner with Tesla to sell solar panels in its stores. The two companies compete within the industry to win the best brands that, in turn, will attract more shoppers. Last October, for example, Stanley Black & Decker tapped Lowe’s as the next retail destination for its Craftsman tool brand. In securing an exclusive deal with ...

Odds are March will be a better month for stocks, after wild February

After a rough February, stocks are entering what are typically two of the best months of the year for the market. The S&P 500 closed out the final day of February with a 1.3 percent loss to 2,744. For the month of February, it was down about 2.8 percent, relatively modest after the gut-wrenching decline of 10 percent from January’s highs in the first nine days of the month. Since Feb. 9, the S&P has sprung back 8.4 percent. “March is actually a pretty good month. February on average is the third-worst-performing month for the S&P 500 going back to 1945,” said Sam Stovall, chief investment strategist at CFRA. Strategists said stocks could do better in March, but the challenge will be continued volatility around rising interest rates and the fear of inflation. T...

Firm swoops in to ensure volatility is a trade for another day

The company behind one of the last VIX volatility products is making moves to reduce the volatility of the funds. ProShare Capital Management late Monday night announced it was reducing leverage on the ProShares Short VIX Short-Term Futures ETF (SVXY) and the ProShares Ultra VIX Short-Term Futures ETF (UVXY), effective at the close of trading Tuesday. “This is unprecedented, it’s the first time I have seen anyone change the leverage, particularly since it just happened overnight,” Pravit Chintawongvanich, head of derivative strategies from Macro Risk Advisors. Buying the SVXY was a bet that volatility would go down. The fund’s value has dropped nearly 90 percent this month as volatility exploded. A competitor fund, the VelocityShares Daily Inverse VIX (XIV), also wa...

Jay Powell Is Janet Yellen’s Trap Queen

President Donald Trump loves a turgid, swollen stock market. In some ways it’s come to represent to him his own intrinsic value as a leader. This thirst for a bulging markets is what led Trump to jettison Janet Yellen. Sure, she oversaw an almost historically robust trend in her reign as Fed Chair, but she also had that annoying  kneed to raise rates, and nothing causes a hard market to go limp like rising rates. So Trump went and got him his own Fed Chair, a guy he could rely on to do what a good Fed Chair does; manipulate the economy to help the markets and make his boss, the president, look good [just play along]. But it turns out that Trump’s handpicked guy, Jay Powell, was never a sworn liege of Emperor Trump. No, no, no, Jay Powell was always down with his ride-or-die homie Janet Yel...

ProShares To Castrate Legless Survivor Of Short Vol. Blowup

Depending on your penchant for finding humor in the misery of idiots, the implosion of the short vol. doomsday ETPs on February 5 was laugh-out-loud  funny. Although he’s apparently still proud of it (because you know, “all publicity is good publicity” when you used to work at the local Target), the New York Times piece published last August that made Seth Golden the poster child for retail investors shorting vol. literally from their living rooms was a clinic in journalistic condescension. If you read that article (or re-read it, because it never gets old), it is obvious that the Times realized how terrible of an idea it is for big box managers to trade in their “Hi, my name is” tags for the short vol. trade. It’s like your lawn guy deciding to ditch the Husqvarna for a new career buildin...

Stocks making the biggest moves premarket: CMCSA, TOL, DISCA, PANW, FIT, SEAS & more

Check out which companies are making headlines before the bell: Comcast – Comcast offered to buy British broadcaster Sky for $31 billion, in a challenge to 21st Century Fox. The NBCUniversal parent’s per-share offer is about 16 percent higher than Fox’s prior agreement to buy the portion of Sky that it doesn’t already own. NBCUniversal is the parent of CNBC. Toll Brothers – Toll reported better-than-expected earnings and revenue for its first quarter, as the luxury home builder sold more homes at higher prices. Orders for new homes rose nearly 20 percent from a year earlier. Discovery Communications – The TV network operator beat estimates by 6 cents a share, with adjusted quarterly profit of 47 cents per share. Revenue also beat forecasts as U.S. ad sales increased. Disc...

Macy’s earnings for the holiday quarter top expectations, sending shares soaring

Macy’s on Tuesday reported earnings and same-store sales for the holiday period that topped analysts’ expectations, as investments in its loyalty program, fewer flash sales and a trimming of its real estate started to pay off. The department store chain said it would be accelerating initiatives related to its stores, technology and merchandising to return the business to same-store sales growth for the current year. Same-store sales for fiscal 2017 were down 2.2 percent. Macy’s stock soared more than 10 percent in premarket trading on the news. Here’s what Macy’s reported for the fourth quarter of fiscal 2017 compared with what analysts were expecting, based on a survey by Thomson Reuters: Earnings per share: $2.82, adjusted, vs. $2.71 expected Revenue: $8.67 ...

Macy’s shares surge as strong earnings fuel hopes turnaround is gaining traction

Macy’s turnaround plans are taking hold, marking a positive sign for the overall retail industry, and the company expects the momentum to continue into 2018. In an interview Tuesday with CNBC, CEO Jeff Gennette said same-store sales were up 3 percent in January, as the company had fresher merchandise in stores and less carryover from the holidays. The department store chain Tuesday morning reported earnings and same-store sales for the fiscal fourth quarter that topped analysts’ expectations, as investments in a more personalized loyalty program, fewer flash sales and a trimming of real estate are starting to pay off. Macy’s also said it will be accelerating initiatives related to its stores, technology and merchandising to return the business to same-store sales growth f...

Higher volatility doesn’t mean stocks will suffer this year

Volatility has returned to the market in a big way, but that doesn’t necessarily mean lower returns for stocks. What’s been weird about the markets is not the volatility, it’s how absurdly low volatility has been. According to DataTrek, in each year since 1958 the S&P 500 has on average gained or lost 1 percent or more on a daily basis on 53 days. That’s about 20 percent of the time every year, or about one day per week. In 2017, there were only eight such days: eight days versus an average of 53 for the past 60 years. So far in 2018, there have already been 11 days. Is this a reversion to the mean? Sure looks like it. You shouldn’t be ready to lighten up on stocks, though, according to DataTrek’s Jessica Rabe. “Just because US equities are mor...

Homebuilder Toll Brothers profit beats on higher demand

U.S. luxury homebuilder Toll Brothers reported a first-quarter profit on Tuesday that beat analysts’ estimates as it sold more homes at higher prices, sending its shares up 2 percent in premarket trading. Toll’s results underscore strong demand in the housing market despite climbing interest rates and supply constraints including higher labor and raw material costs. “The new home industry appears to be building momentum with the national homeownership rate rising over the past year,” Executive Chairman Robert Toll said. Toll Brothers said orders a key metric of future revenue for homebuilders rose 19.7 percent to 1,822 homes in the reported quarter, boosted by strong growth in the Western United States, including California. The company’s average price of home...