Stock Market Wrapup Aug. 20th
Stocks continued to be volatile to start off the week, but not as volatile as the past several weeks have been. Investors weighed and assessed the decision by the Federal Reserve on Friday when it lowered the discount rate by 50 basis points. For most of the session, all three major market averages were lower, but the bulls orchestrated a rally towards the close. At the close, the Dow gained 42 points, with the Nasdaq picking up a modest 4 points. The S&P 500, meanwhile, ended the session fractionally lower. Over in the energy markets, natural gas was the biggest loser as Hurricane Dean appears that it will not head into the energy rich northern Gulf of Mexico. Natural gas lost -98 cents to finish at $6.03.
Jumbo loan company Thornburg Mortgage (NYSE: TMA - News) saw its shares decline -10.2% after it announced it sold $20.5 billion worth of mortgage-backed securities at a discount in order to pay down debt it could not refinance. It foresees itself losing $930 million on the transaction, but said it will go ahead and pay its dividend. The company stated it will not give any guidance on further dividends. Rating agency Fitch Ratings downgraded its issuer default rating to "CCC" citing concerns of Thornburg's ability to generate and maintain adequate liquidity given the current market environment.
On the earnings front, the nation's second-largest home improvement retailer, Lowes (NYSE: LOW - News), reported that its second-quarter profit rose 9% to $1.02 billion, or 67 cents a share, up from $975 million, or 60 cents a share, in the same period a year ago. Analysts were expecting earnings to come in at 61 cents a share. Sales rose 5.8% to $14.2 billion. Same-store sales declined -2.6% for the company. For the year, the retailer sees earnings of $1.97-2.01 a share, down slightly from its prior forecast of EPS of $1.99-2.03. Despite the lowered full-year earnings estimates, the stock rose 6.1% on the heels of market share gains as well as a company belief that sales trends were improving.
In other corporate news, Nasdaq Stock Market (Nasdaq: NDAQ - News) said it is looking to sell its 31% stake in the London Stock Exchange (LSE). It attempted to buy the exchange last year, but the LSE's shareholders rejected the offer in February. Nasdaq said it would use the proceeds to retire some of its debt and also repurchase its stock. Shares declined -0.7%.
On the international front, the world's third-largest bank HSBC Holdings (NYSE: HBC - News) is in talks to buy the majority of Korea Exchange Bank, South Korea's sixth-largest bank. HSBC is currently in advanced discussions with Lone Star Funds, which owns a 51% stake worth $4.5 billion in the foreign bank.
By the BullMarket.com Staff
Jumbo loan company Thornburg Mortgage (NYSE: TMA - News) saw its shares decline -10.2% after it announced it sold $20.5 billion worth of mortgage-backed securities at a discount in order to pay down debt it could not refinance. It foresees itself losing $930 million on the transaction, but said it will go ahead and pay its dividend. The company stated it will not give any guidance on further dividends. Rating agency Fitch Ratings downgraded its issuer default rating to "CCC" citing concerns of Thornburg's ability to generate and maintain adequate liquidity given the current market environment.
On the earnings front, the nation's second-largest home improvement retailer, Lowes (NYSE: LOW - News), reported that its second-quarter profit rose 9% to $1.02 billion, or 67 cents a share, up from $975 million, or 60 cents a share, in the same period a year ago. Analysts were expecting earnings to come in at 61 cents a share. Sales rose 5.8% to $14.2 billion. Same-store sales declined -2.6% for the company. For the year, the retailer sees earnings of $1.97-2.01 a share, down slightly from its prior forecast of EPS of $1.99-2.03. Despite the lowered full-year earnings estimates, the stock rose 6.1% on the heels of market share gains as well as a company belief that sales trends were improving.
In other corporate news, Nasdaq Stock Market (Nasdaq: NDAQ - News) said it is looking to sell its 31% stake in the London Stock Exchange (LSE). It attempted to buy the exchange last year, but the LSE's shareholders rejected the offer in February. Nasdaq said it would use the proceeds to retire some of its debt and also repurchase its stock. Shares declined -0.7%.
On the international front, the world's third-largest bank HSBC Holdings (NYSE: HBC - News) is in talks to buy the majority of Korea Exchange Bank, South Korea's sixth-largest bank. HSBC is currently in advanced discussions with Lone Star Funds, which owns a 51% stake worth $4.5 billion in the foreign bank.
By the BullMarket.com Staff
Labels: HBC, LOW, Lowe's Companies Inc., NDAQ, Thornburg Mortgage Inc., TMA
posted by Stock Administrator @ 7:52 PM
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