Tag: stock market

J.C. Penney’s Co.’s stock shot up 5.2% in afternoon trade Friday, after Credit Suisse said it was no longer bearish on the department store chain, given its new priority to pay down debt. Analyst Michael Exstein raised his rating to neutral, after being at underperform since at least February 2013. Exstein said the upgrade is not based on any significant change in business expectations, but on the company’s shift in focus to what it can control–reducing debt. “This focus on debt reduction could allow [J.C. Penney] to maintain its current share price despite multiple decay by shifting its enterprise value from debt to equity,” Exstein wrote in a note to clients. The stock has now run up 14% since it closed last Wednesday at the lowest level ($6.31) since Jan. 2, 2015. Still, it has tumbled 21% over the past three months, while the SPDR S&P Retail ETF has lost 11% and the S&P 500 has shed 7.8%.

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WASHINGTON (MarketWatch) – The Federal Reserve’s message to markets this week was that it will be patient about hiking rates and needs more time to assess market turmoil, said Dallas Fed President Robert Kaplan on Friday. In an interview with Reuters, Kaplan said it was significant the central bank removed the description of “balanced” risks from its January statement. Removing this language “should be saying to people (that) we are going to take some time here to understand what is going on,” he said. Kaplan is not a voting member of the Fed policy committee this year.

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Oil prices continued to trade higher after data from Baker Hughes showed that the number of active U.S. oil-drilling rigs edged down for a sixth week in a row. They fell by 12 to 498 as of Friday. The total active U.S. rig count, which includes natural-gas rigs, was down 18 at 619. Compared with last year, the total U.S. rig count has fallen by 924, with oil rigs down by 725. March crude was at $33.35 a barrel on the New York Mercantile Exchange, up 13 cents, or 0.3%. It was at $33.57 before the data.

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Bank of America Corp.’s stock climbed 2.2% in active trade Friday, after analyst Mike Mayo at CLSA did an about face on the banking giant, turning to bullish from bearish, citing attractive valuation and limited downside risk. With volume of of about 60 million shares, it was the most-active stock on the NYSE. Mayo raised his rating to outperform, after being at sell since at least February 2013, and lifted his stock price target to $16, or about 16% above current levels, from $15. Mayo said BofA’s stock was trading at recession prices, even without a recession. “BAC stock trades below tangible book value, which is worse than the recessions in the early 1990s and early 2000s,” Mayo wrote in a note to clients, despite a much strong balance sheet. He said BofA and the banking industry has become much more resilient–the Federal Reserve’s stress tests have helped–which means BofA could grow book value even in a recession. The stock has tumbled 18% so far this year, while the S&P 500 has lost 5.9%.

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Guess Inc. said it will no longer use angora fiber in any of its merchandise, effective immediately. The company said the decision came while it was developing its sustainability practices in 2015 and publishing its first sustainability report. Angora use became controversial after undercover video shot by People for the Ethical Treatment of Animals in 2013 showed cruelty against angora rabbits. Since then, other retailers including Gap Inc. and Zara, an Inditex company, have stopped selling items with angora fur, according to the Daily Mail. Guess shares are up 3.7% in Friday trading, but down 7.8% for the past year. The S&P 500 is down 5.3% for the past 12 months.

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Oil futures pared some of its earlier gains on Friday following news that Iran will not participate in any plan for coordinated output cuts with other members of the Organization of the Petroleum Exporting Countries. An Iranian oil official said Tehran won’t consider a reduction until its exports have increased by 1.5 million barrels a day over current levels, according to a report from Dow Jones. Following an agreement regarding Iran’s nuclear program, sanctions on the country were lifted earlier this month. March oil rose 34 cents, or 1%, to $33.56 a barrel on the New York Mercantile Exchange after tapping a high of $34.40.

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The National Retail Federation is expecting the average spend for viewers and partygoers enjoying Super Bowl 50 will be $82.19, up from $77.88 last year and the highest amount in survey history. That includes food, decor, team paraphernalia, and more. The NRF forecasts total spending to reach $15.5 billion. An estimated 188.9 million people are expected to tune in, up from 183.7 million. More than 43 million people are planning to throw a Super Bowl party. About the same number of people say the commercials are the most important part of the day, with 78.6% of Americans saying the commercials are entertainment versus 17.5% who say it makes them aware of the advertising brands. More than a third (34.7%) say the actual game is the most important part. The NRF polled 7,293 consumers for its Super Bowl Spending Survey. Super Bowl 50 will be broadcast on Feb. 7.

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Moody’s Investors Service on Friday placed Xerox Corp.’s Baa2 senior unsecured debt rating on review for a possible downgrade, and said the decision to split in two will create smaller companies with less business diversity and profitability than the current one. The move comes after Xerox said it will create an $11 billion document technology company and a $7 billion business process outsourcing company by the end of 2016. “Xerox has not announced capitalization plans for DT or the BPO units post-spinoff, nor how much of its $1.4 billion in cash will be allocated between the two companies,” Moody’s acknowledged in a statement. It said its review will focus on the post-split capital structure, liquidity profile, shareholder return policies, future strategy, competitive positioning and growth prospects for each business. It will also evaluate the impact of the $2.4 billion in cost cuts the company plans over the next three years. Moody’s Baa2 rating is just two notches above speculative, or junk status. Xerox shares were up 5.3% in early trade, but have fallen 28% in the last 12 months, while the S&P 500 has lost 5%.

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WASHINGTON (MarketWatch) — The Republican presidential debate on Fox News was the second least watched of the 2016 election cycle, according to preliminary Nielsen estimates cited in several news reports. The debate garnered an 8.4 household rating, which translates into approximately 11 million to 13 million viewers. The first Republican debate on Fox in August drew 24 million viewers.

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Macy’s Inc. has made a downward revision to its fourth-quarter guidance after a timing change on the completion of its Brooklyn real estate transaction with Tishman Speyer. Macy’s will receive $270 million in cash and will use $100 million for renovations. The retailer will record about $86 million in gains during the fourth quarter, with the remaining $164 million booked in fiscal 2016 and 2017. The retailer said it previously assumed the entire gain would apply to the fourth quarter of 2015. Now fourth-quarter earnings are expected to range between $1.85 to $1.90 compared with a previous range of $2.18 to $2.23. Full-year earnings are now forecast between $3.54 and $3.59 from $3.85 to $3.90. This full-year guidance excludes expenses related to previously announced cost efficiences and asset impairment charges largely tied to spring 2016 store closures. Macy’s announced that it had sold the upper floors of its nine-story Brooklyn store in October. It will continue to own and operate the first four floors and the lower level. Macy’s shares are up 1.1% in morning trading and down 39% for the past 12 months. The S&P is down 5.9% for the past year.

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