Stock Market Wrapup Sept. 27th
Stocks continued their march higher today, despite more weak housing data. The Nasdaq led the way gaining 11 points, while the Dow and S&P were also finished in the green. Oil traded strongly, rising $2.58 to $82.88 a barrel, while natural gas fell. Gold rose on the day.
On the economic front, the Commerce Department announced that GDP grew at a revised 3.8% annual rate for the quarter ended in June. It was the economy's strongest showing in a little over a year. The National Association for Business Economic is predicting growth of 2.4% for the current quarter ending September. Meanwhile, new home sales fell to the lowest level in seven years for the month of August, dropping -8.3%. The median sales price fell -7.5% to $225,700, the biggest drop in 37 years. Despite the housing woes, fewer workers filed for jobless benefits last week, with claims dropping by -15,000 to 298,000.
In earnings news, retailer Bed Bath & Beyond (Nasdaq: BBBY - News) posted net income of $147 million, or 55 cents a share, compared to $145.5 million, or 51 cents a share, a year earlier. Excluding a one-time tax benefit, EPS came in at 52 cents, in line with analyst estimates. Revenue rose 10% to $1.77 billion, while same-store sales climbed 2.2%. The stock fell -1.1%.
Like most homebuilders, KB Homes (NYSE: KBH - News) wasn't able to turn a profit when it announced earnings this morning, swinging to a loss of -$35.6 million, or -46 cents per share, compared to a profit of $153.2 million, or $1.90 per share, in the year-ago period. The sale of the company's French division helped the bottom line, as its loss from continuing operations came in at -$478.6 million, or -$6.19 per share. Revenue plummeted -32% to $1.54 billion from $2.28 billion a year ago, as unit deliveries dropped -28% and the average selling price fell -7%. The company had two large writedowns on the value of unsold inventory and joint-venture holdings.
Rite Aid (NYSE: RAD - News) shares tumbled -4.2% after the pharmacy reported a wider loss and cut revenue and earnings guidance. For Q2, Rite Aid recorded a loss attributable to common shareholders of -$78.2 million, or -10 cents per share, versus a loss of -$8.2 million, or -2 cents per share, last year. The quarter included a one-time financing commitment charge of $12.9 million. Revenue rose nearly 54% from $4.29 billion to $6.6 billion, but fell just short of the $6.8 billion consensus. The company also cut its full-year guidance to a loss of -$78 million to -$161 million on revenue of $24.5-$25.1 billion. Previously, the company had forecasted a loss of -$47 million to -$129 million on revenue of $25.3-$26 billion.
In other corporate news, Google (Nasdaq: GOOG - News) announced that it is looking to increase its staff by a third over the next several years. Before you get that resume ready, though, note that most of the news jobs will be for engineers located in Europe. If you're willing to relocate across the pond, note that British Airways (OTC: BAIRY - News) today ordered $8.2 billion in new aircraft from Boeing (NYSE: BA - News) and Airbus, making it the airline's largest purchase in more than a decade. The news was considered a mixed bag for Boeing, as previously it was the exclusive large passenger plane provider for British Airways. The planes are expected to be delivered between 2010 and 2014. Boeing shares rose 1.0%.
In M&A news, a group led by JC FLowers said that it would not go through with its $26 billion purchase of Sallie Mae (NYSE: SLM - News). The student lender said it would take legal action, as the group has no basis for breaking the merger agreement.
By the BullMarket.com Staff
On the economic front, the Commerce Department announced that GDP grew at a revised 3.8% annual rate for the quarter ended in June. It was the economy's strongest showing in a little over a year. The National Association for Business Economic is predicting growth of 2.4% for the current quarter ending September. Meanwhile, new home sales fell to the lowest level in seven years for the month of August, dropping -8.3%. The median sales price fell -7.5% to $225,700, the biggest drop in 37 years. Despite the housing woes, fewer workers filed for jobless benefits last week, with claims dropping by -15,000 to 298,000.
In earnings news, retailer Bed Bath & Beyond (Nasdaq: BBBY - News) posted net income of $147 million, or 55 cents a share, compared to $145.5 million, or 51 cents a share, a year earlier. Excluding a one-time tax benefit, EPS came in at 52 cents, in line with analyst estimates. Revenue rose 10% to $1.77 billion, while same-store sales climbed 2.2%. The stock fell -1.1%.
Like most homebuilders, KB Homes (NYSE: KBH - News) wasn't able to turn a profit when it announced earnings this morning, swinging to a loss of -$35.6 million, or -46 cents per share, compared to a profit of $153.2 million, or $1.90 per share, in the year-ago period. The sale of the company's French division helped the bottom line, as its loss from continuing operations came in at -$478.6 million, or -$6.19 per share. Revenue plummeted -32% to $1.54 billion from $2.28 billion a year ago, as unit deliveries dropped -28% and the average selling price fell -7%. The company had two large writedowns on the value of unsold inventory and joint-venture holdings.
Rite Aid (NYSE: RAD - News) shares tumbled -4.2% after the pharmacy reported a wider loss and cut revenue and earnings guidance. For Q2, Rite Aid recorded a loss attributable to common shareholders of -$78.2 million, or -10 cents per share, versus a loss of -$8.2 million, or -2 cents per share, last year. The quarter included a one-time financing commitment charge of $12.9 million. Revenue rose nearly 54% from $4.29 billion to $6.6 billion, but fell just short of the $6.8 billion consensus. The company also cut its full-year guidance to a loss of -$78 million to -$161 million on revenue of $24.5-$25.1 billion. Previously, the company had forecasted a loss of -$47 million to -$129 million on revenue of $25.3-$26 billion.
In other corporate news, Google (Nasdaq: GOOG - News) announced that it is looking to increase its staff by a third over the next several years. Before you get that resume ready, though, note that most of the news jobs will be for engineers located in Europe. If you're willing to relocate across the pond, note that British Airways (OTC: BAIRY - News) today ordered $8.2 billion in new aircraft from Boeing (NYSE: BA - News) and Airbus, making it the airline's largest purchase in more than a decade. The news was considered a mixed bag for Boeing, as previously it was the exclusive large passenger plane provider for British Airways. The planes are expected to be delivered between 2010 and 2014. Boeing shares rose 1.0%.
In M&A news, a group led by JC FLowers said that it would not go through with its $26 billion purchase of Sallie Mae (NYSE: SLM - News). The student lender said it would take legal action, as the group has no basis for breaking the merger agreement.
By the BullMarket.com Staff
Labels: BA, BAIRY, BBBY, Boeing Co., GOOG, Google Inc., KB Homes, KBH, RAD, Rite Aid Corp., Sallie Mae, SLM
posted by Stock Administrator @ 8:36 PM
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