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Retail stocks battered by Amazon-related fears

Shares of retailers were hammered Monday, as a wave of fears about the impact of juggernaut Amazon.com Inc. on the sector were highlighted in stories and commentary from analysts. Department store chain Macy’s Inc. , currently in the midst of store closures caused by weak revenue as shoppers switch to Amazon, led the decliners with a 7% fall, making it the worst performer on the S&P 500. Gap Inc. fell 6.5%, followed by Best Buy Inc. , down 6.3%. Best Buy has mostly escaped the pressure of the Amazon effect, but was hit Monday by a Recode report that Amazon has been hiring a team of people to offer in-home product installations, competing with Best Buy’s “Geek Squad.” Kohl’s Corp. fell 4.6% and Nordstrom Inc. was down 2.7%. Abercrombie & Fitch fell 20% after it said it had ended talks on a potential deal. Wal-Mart Stores Inc. was down 2.5% and Foot Locker Inc. was down 2.3%. Costco Wholesale Corp. fell 1.7% after an analyst downgrade that suggested the company’s strong fundamentals are being overshadowed by Amazon fears, following its bid for Whole Foods Markets Inc. . The SPDR S&P Retail exchange-traded fund was down 2% and is now down 11.7% in 2017, while the S&P 500 has gained 9%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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Oil prices notch a minor gain as traders weigh prospects for Libya, Nigeria output cap

Oil prices settled with a minor gain on Monday as traders looked to the possibility that the Organization of the Petroleum Exporting Countries may set a production cap for cartel members Libya and Nigeria. The Wall Street Journal reported Monday that the two countries, which have been exempt from the OPEC-led output-cut agreement, have been invited to a meeting of major oil producers later this month in Russia. August WTI crude rose 17 cents, or 0.4%, to settle $44.40 a barrel on the New York Mercantile Exchange after losing nearly 3% on Friday.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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IRLC Valuation Changes Could Have Big Impact

Most warehouse lenders think that net worth calculations for mortgage banking firms are incorrect because of the way that locked pipelines are valued. The correction of the calculations could significantly impact the reported net worth of companies.

Generally Accepted Accounting Principles require that everyone follows the same accounting rules. GAAP financials are produced for the benefit of users of financial statements, whom I will refer to in this foreword as Readers. Readers can include Fannie Mae, Freddie Mac and Ginnie Mae as well as secondary market investors, warehouse banks and for public companies. In addition, the category can include the Securities and Exchange Commission and the investing public.

GAAP is a good thing because it provides for comparability across an industry, across the country, or even around the world.

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Southwest Airlines share fall 1.5% after Wolfe Research downgrade

Southwest Airlines Co. shares fell 1.5% Monday, after Wolfe Research downgraded the stock to peer perform from outperform on valuation grounds. “Even though we take up our target multiple by one turn today from ~12x to 13x our 2018 EPS estimates, our EPS estimates are about as high as we feel we can go,” analyst Hunter Keay wrote in a note. “Valuation isn’t cooperating.” Southwest shares have gained 27% in 2017, while the S&P 500 has gained 9%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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CFRA sticks with buy rating on Amazon after Whole Foods bid

CFRA said Monday it is sticking with its buy rating on Amazon.com Inc. shares, and said it expects the company to bring major long-term disruption to the grocery business after it made a $14 billion bid for Whole Foods Market Inc. . “We think the news could presage a major long-term disruption of the grocery business by AMZN, as the company further leverages its technology, logistics and fulfillment infrastructure,” CFRA analyst Tuna Amobi wrote in a note. Amazon is bidding about $42 a share for Whole Foods, equal to a 27% premium over the stock’s pre-bid closing price. The deal is expected to close in the second half, subject to approvals. Whole Foods stock was trading at $41.98 Monday, below the bid price. It traded above the price last week, prompting speculation that another bidder might emerge. Amazon shares were up about 2%, and have gained 33% in 2017, while the S&P 500 has gained 8.5%.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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VA Extends Appraisal Requirements by 2 Years

Previously issued appraisal requirements for single-family loans that are guaranteed by the Department of Veterans Affairs have been extended by two years.

Back in June 2015, VA issued Circular 26-15-12 outlining new requirements for Lender Appraisal Processing Program and Servicer Appraisal Processing Program staff reviewers.

At the time, the department unveiled its automated appraisal management service for use in enhancing the appraisal review process prior to issuance of the Notice of Value.

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Best Buy’s stock tumbles to pace S&P 500 decliners amid concerns over Amazon effect

Shares of Best Buy Co. Inc. tumbled 7.2% in active morning trade Monday, enough to pace the S&P 500 decliners, amid increasing concerns over competition from Amazon.com Inc. . The electronics retailer’s stock had been relatively immune to the Amazon effect, as the stock has climbed 11% over the past three months and 27% year to date, while the SPDR S&P Retail ETF had lost 7.7% over the past three months and 12% this year. But Recode reported Monday, citing “multiple sources,” that Amazon has been hiring a number of people to offer free Alexa consultations and in-home product installations for a fee, which would compete with Best Buy’s “Geek Squad” installation and repair service. The new services are currently available in seven West Coast cities, the Recode report said, and it appears a large expansion is in the works to some states including Florida, Texas and the New York area. Best Buy’s stock volume topped 5.4 million shares within the first two hours after the open, already more than the full-day average of about 5.2 million shares. Amazon’s stock rallied 1.4% in morning trade, and has rallied 9.4% over the past three months and 32% year to date.

Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.

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From:: Stock Market News