Stock Market Wrapup Sept. 25th
Stocks seesawed back and forth between positive and negative territory today, with the major market indices finishing the day mixed. The Dow and Nasdaq both closed higher, while the S&P was off fractionally. Gold slipped on the day, while oil fell to close under $80 a barrel at $79.53.
Economic news was plentiful on the day, with some continuing unsettling data on the housing market. The National Association of Home Builders reported that existing home sales fell -4.3% to 5.5 million units. Sales dropped -13% compared with a year earlier. The group noted that median home prices rose 0.2% to $224,500. Meanwhile, the S&P Case-Shiller home price index stated that home prices in 20 metro areas fell the most on record in July. Shifting gears a bit, The Conference Board announced that its index of consumer sentiment fell to 99.8 in September, which is the lowest level since November of 2005, and down from 105.6 in August.
In corporate news, several retail warnings weighed heavily on investors. The nation's second-largest discount retailer, Target (NYSE: TGT - News), cut its September same-store sales growth figures citing weaker traffic during the month, especially in Florida and the Northeast. The company cut same-store sales growth to 1.5-2.5%, down from its previous expectations of 4-6%. Shares slid -4.6%. Subscribers can read our take on Target in today's issue.
Meanwhile, shares of home improvement retailer Lowe's (NYSE: LOW - News) shares fell -6.7% after the company announced that it sees full-year earnings at the low end or slightly below its prior forecast. Lowe's cited lower-than-expected sales trends. The company had predicted earnings of $1.97-2.01 a share previously. The company did note that for 2008-2010 it expects earnings to increase 12-15%, while seeing sales rise 8-11% per year.
Also lowering guidance on the day was McCormick & Schmick's Seafood Restaurants (Nasdaq: MSSR - News). After previously forecasting earnings of 21-23 cent a share on revenue of $90-$91 million, McCormick & Schmick's now anticipates reporting a profit of 16 cents a share on revenue of $88 million. The company's CEO attributed the lowered outlook to weak demand from "aspirational guest[s]." Shares plunged -22.9%
The losses continue to mount for our nation's homebuilders, as Lennar (NYSE: LEN - News) posted a loss of -$514 million, or -$3.25 a share, for the quarter ended August 31st. The loss compared to a year-ago profit of $207 million, or $1.30 a share. Revenues fell -44% to $2.2 billion during the quarter, and the company took a -$848 million charge due to valuation reductions and write-offs. Home deliveries declined a drastic -41%, while new orders plunged -48%. The company announced that it is seeking further reductions in head count. Shares fell -4.0%.
By the BullMarket.com Staff
Economic news was plentiful on the day, with some continuing unsettling data on the housing market. The National Association of Home Builders reported that existing home sales fell -4.3% to 5.5 million units. Sales dropped -13% compared with a year earlier. The group noted that median home prices rose 0.2% to $224,500. Meanwhile, the S&P Case-Shiller home price index stated that home prices in 20 metro areas fell the most on record in July. Shifting gears a bit, The Conference Board announced that its index of consumer sentiment fell to 99.8 in September, which is the lowest level since November of 2005, and down from 105.6 in August.
In corporate news, several retail warnings weighed heavily on investors. The nation's second-largest discount retailer, Target (NYSE: TGT - News), cut its September same-store sales growth figures citing weaker traffic during the month, especially in Florida and the Northeast. The company cut same-store sales growth to 1.5-2.5%, down from its previous expectations of 4-6%. Shares slid -4.6%. Subscribers can read our take on Target in today's issue.
Meanwhile, shares of home improvement retailer Lowe's (NYSE: LOW - News) shares fell -6.7% after the company announced that it sees full-year earnings at the low end or slightly below its prior forecast. Lowe's cited lower-than-expected sales trends. The company had predicted earnings of $1.97-2.01 a share previously. The company did note that for 2008-2010 it expects earnings to increase 12-15%, while seeing sales rise 8-11% per year.
Also lowering guidance on the day was McCormick & Schmick's Seafood Restaurants (Nasdaq: MSSR - News). After previously forecasting earnings of 21-23 cent a share on revenue of $90-$91 million, McCormick & Schmick's now anticipates reporting a profit of 16 cents a share on revenue of $88 million. The company's CEO attributed the lowered outlook to weak demand from "aspirational guest[s]." Shares plunged -22.9%
The losses continue to mount for our nation's homebuilders, as Lennar (NYSE: LEN - News) posted a loss of -$514 million, or -$3.25 a share, for the quarter ended August 31st. The loss compared to a year-ago profit of $207 million, or $1.30 a share. Revenues fell -44% to $2.2 billion during the quarter, and the company took a -$848 million charge due to valuation reductions and write-offs. Home deliveries declined a drastic -41%, while new orders plunged -48%. The company announced that it is seeking further reductions in head count. Shares fell -4.0%.
By the BullMarket.com Staff
posted by Stock Administrator @ 9:06 PM
0 Comments:
Post a Comment
<< Home