Category: Stock Market News

Look for the pound to drop about 10% if the U.K. votes to leave the European Union in the so-called Brexit referendum next month, said Naeem Aslam, chief market analyst at ThinkForex UK, on Thursday. An “enormous [pound] selloff will take place against a basket of currencies. We’re looking at perhaps $1.29 against the dollar,” he said. The pound was trading around $1.4471 late Thursday in Europe. On the flip side, no change in U.S. interest rates at the Federal Reserve’s June 14-15 meeting and a rejection of Brexit on June 23 sets the pound to propel higher. “The Bank of England could increase the noise in the market…that there could be a rate hike in 2016”, Aslam said. As oil is trading above $40 a barrel, “inflation is going to be anchored to the upside and…perhaps the Bank of England cannot sit on their hands and do nothing while inflation is going higher. Overall, “clients are dead-split down the center, 50-50,” about what will be the referendum’s result, said ThinkForex Chief Executive Nauman Anees. “Just like the markets, they are just very indecisive over where it’s going to go. We’ve seen sterling trading in a range for over six months now.”

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Apple Inc.’s stock tumbled 3.1% to a near two-year low in morning trade Thursday, as a sharp drop in earnings at Taiwanese iPhone assembler Foxconn Technology Co. highlighted increasing concerns over slowing iPhone sales. Apple shares, which were trading at the lowest level since June 2, 2014, have now plunged 20.1% since peaking at a four-month high of $112.10 on April 14. The selloff has knocked Apple off its perch as the most valuable company by market capitalization, with Alphabet Inc. reclaiming the top spot. Apple’s market cap has fallen to $491.3 billion, while Alphabet’s is now at $497.3 billion.

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WASHINGTON (MarketWatch) — A jointly issued statement from Republican presidential candidate Donald Trump and House Speaker Paul Ryan said there was an opportunity for the party to unite but didn’t include an endorsement. Ryan is due to chair the Republican convention, which is likely to result in Trump becoming the party’s nominee. The joint statement said the U.S. can’t “afford another four years of the Obama White House, which is what Hillary Clinton represents.” It called the conversation between the two “great” while saying they were “honest” about their differences but that there were important areas of common ground.

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Sears Holdings Corp. said Thursday that it will open a smaller-sized appliance-focused store in Ft. Collins, Colo. on May 19. There are additional stores planned, according to Sears, but location and timing are not yet being provided. The 10,000-square-foot store will feature a 122-inch digital display to show how a kitchen will look with new appliance purchases at full scale, tablets to aid customers in their shopping and a variety of shipping and pick-up options. Sears shares are down 4.9% in Thursday trading, and down 71.4% for the past year. The S&P 500 is down 1.7% for the last 12 months.

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Channel checks at Abercrombie & Fitch Co. stores show that managers at Hollister are more upbeat than those at Abercrombie & Fitch shops, Wedbush said in a Thursday note. Analysts visited 40 Hollister stores and 40 Abercrombie & Fitch stores, and found that 24 Abercrombie & Fitch stores fell below planned quarterly sales goals. Some Abercrombie & Fitch store managers saw benefits from better fashions and inventory control while others thought fewer promotions were having a negative impact. “Some however noted that larger offerings online of petite and tall sizes were a plus for attracting older customers,” the Wedbush note said. Analysts expressed skepticism about Abercrombie’s efforts to reach this older demographic and concern about the brand’s lagging acceptance in the U.S. Hollister managers were upbeat about spring purchasing, attributed to better year-over-year fashion assortment. And seven Hollister stores launched the Club Cali rewards program, which analysts said would help the chain maintain momentum. Abercrombie shares are down 0.7% in premarket trading, and down 10.9% for the year to date. The S&P 500 is up 1% for the year so far.

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U.S. stocks opened higher on Thursday, boosted by strong gains in oil prices, after the International Energy Agency said it sees a “dramatic reduction” in the supply glut later this year. But a larger-than-expected rise in weekly jobless claims weighed on risk appetite, as it suggested that the pace of hiring has slowed. The S&P 500 added 7 points, or 0.3%, to 2,071. The Dow Jones Industrial Average rose 60 points, or 0.3%, to 17,767 at the open. Meanwhile, the Nasdaq Composite began the session up 14 points, or 0.3%, at 4,774.

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CPI Card Group Inc.’s stock plummeted 44% toward a record low in premarket trade Thursday, after the chip card maker missed profit and sales expectations, and provided a downbeat outlook. The disappointing results prompted analyst David Koning at Robert W. Baird to downgrade CPI to neutral from outperform, and cut the stock price target to $4 from $14. CPI reported late Wednesday earnings of $5.7 million, or 10 cents a share, compared with a loss of $6.4 million, or 16 cents a share, in the same period a year earlier. Adjusted earnings per share of 13 cents missed the FactSet consensus of 14 cents. Sales rose to $86.4 million from $77.3 million, but missed expectations of $88.2 million. For 2016, the company said it expects sales of $335 million to $355 million, well below the FactSet consensus as of the end of April of $436.4 million. The company blamed “much greater than anticipated” unissued card inventories at large issuers and evidence of “slower than anticipated” conversions for small to mid-sized issuers. “The magnitude of the guide down [for sales] leaves questions about whether there is any visibility,” Koning wrote in a note to clients. The stock is changing hands at $4.10 ahead of the open, which is 57% below the initial public offering price of $10. CPI went public on Oct. 9, just eight days the use of chip cards was supposed to become a requirement.

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From:: Stock Market News

CPI Card Group Inc.’s stock plummeted 44% toward a record low in premarket trade Thursday, after the chip card maker missed profit and sales expectations, and provided a downbeat outlook. The disappointing results prompted analyst David Koning at Robert W. Baird to downgrade CPI to neutral from outperform, and cut the stock price target to $4 from $14. CPI reported late Wednesday earnings of $5.7 million, or 10 cents a share, compared with a loss of $6.4 million, or 16 cents a share, in the same period a year earlier. Adjusted earnings per share of 13 cents missed the FactSet consensus of 14 cents. Sales rose to $86.4 million from $77.3 million, but missed expectations of $88.2 million. For 2016, the company said it expects sales of $335 million to $355 million, well below the FactSet consensus as of the end of April of $436.4 million. The company blamed “much greater than anticipated” unissued card inventories at large issuers and evidence of “slower than anticipated” conversions for small to mid-sized issuers. “The magnitude of the guide down [for sales] leaves questions about whether there is any visibility,” Koning wrote in a note to clients. The stock is changing hands at $4.10 ahead of the open, which is 57% below the initial public offering price of $10. CPI went public on Oct. 9, just eight days the use of chip cards was supposed to become a requirement.

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Ralph Lauren Corp. shares were up 3% in Thursday premarket trading after the luxury apparel and accessories company reported fourth-quarter earnings that beat estimates. Ralph Lauren reported net income of $41 million, or 49 cents per share, down from $124 million, or $1.41 per share, for the same period last year. Adjusted earnings were 88 cents per share, exceeding the FactSet consensus of 83 cents. Revenue for the quarter totaled $1.87 billion, down from $1.89 billion last year, but above the FactSet consensus of $1.86 billion. The company’s board authorized an additional $200 million stock repurchase program, in addition to the remaining $100 million available at the end of the fourth quarter from the previous program. Ralph Lauren will provide first-quarter and full-year fiscal 2017 guidance at its investor day event on June 7. Company shares are down 36.6% for the past year while the S&P 500 is down 1.7% for the same period.

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Honeywell Inc. said Thursday it is planning to spin off its $1.3 billion resins and chemicals business into a new standalone company to be named AdvanSix Inc. The new entity will be publicly traded with the deal expected to be completed by early 2017, the defense company said in a statement. The spinoff is expected to be tax-free to Honeywell shareholders. There is no impact to financial guidance at this time, said the statement. The business “is favorably positioned to continue to achieve global growth as a standalone enterprise, with added flexibility to make capital investments that enhance its offerings and service to customers,” Chief Executive Dave Cote said in the statement. Shares were not yet active in premarket trade, but are up 10% in the year so far, while the S&P 500 has gained 1%.

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