The US dollar is bid against all the major and most emerging market currencies. An important driver is the backing up of US rates. The two-year yield, which is particularly sensitive to Fed policy is at its highest level since early June (~86 bp). The US 10-year yield is five basis points higher today at 1.77%, which is the highest in four months.
In comparison, Europe’s two-year yields are mostly lower today. Germany’s two-year yield is minus 68 bp and Japan’s stands at minus 27 bp. The UK two-year yield is below 20 bp.
Germany’s ZEW survey handily beat expectations, but this has not deterred the euro from being sold back to the pre-US jobs low near $1.1100. The assessment of the current situation rose to 59.5 from 55.1 in September. It is the highest since January. The expectations component rose to 6.2 from 0.5. The median forecast was for a 4.0. It is the best reading since June. A break of the $1.1100 area would target the early-August low near $1.1 045.
stock market programs: Diebold, Incorporated(DBD)
- [By Lisa Levin]
Some of the stocks that may grab investor focus today are:
Wall Street expects Dr Pepper Snapple Group Inc. (NYSE: DPS) to report quarterly earnings at $1.06 per share on revenue of $1.57 billion before the opening bell. Dr Pepper Snapple shares fell 0.07 percent to close at $93.49 on Monday. Analysts expect American International Group Inc (NYSE: AIG) to post quarterly earnings at $1.01 per share on revenue of $12.87 billion after the closing bell. AIG shares gained 0.38 percent to $66.39 in after-hours trading. Flowers Foods, Inc. (NYSE: FLO) reported in-line earnings for its fourth quarter, while sales missed expectations. Flowers Foods shares fell 1.87 percent to $20.45 in the after-hours trading session. Before the markets open, Diebold Nixdorf Inc (NYSE: DBD) is projected to report its quarterly earnings at $0.32 per share on revenue of $1.31 billion. Diebold Nixdorf shares slipped 0.73 percent to close at $27.20 on Monday.
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stock market programs: Canadian National Railway Company(CNI)
- [By Monica Gerson]
Canadian National Railway (USA) (NYSE: CNI) is estimated to post its quarterly earnings at $0.92 per share on revenue of $3.08 billion.
Container Store Group Inc (NYSE: TCS) is expected to post its quarterly earnings at $0.21 per share on revenue of $230.53 million.
stock market programs: L Brands, Inc.(LB)
- [By WWW.THESTREET.COM]
Many of the losers can be found at the mall, with Gap Stores (GPS) and Abercrombie & Fitch (ANF) continuing to disappoint. The only winner at the mall was Childrens’ Place (PLCE) , but Cramer said he’s not counting out a turnaround at L Brands (LB) .
- [By Jeremy Bowman]
J.C. Penney and Nordstrom should report holiday sales in the coming days, but there’s evidence elsewhere that it was a weak season for bricks-and-mortar retailers. Shares of Victoria’s Secret parentL Brands(NYSE: LB) were down 9% after it said comparable sales fell 1% in December and that it expects fourth-quarter earnings to come in at the low end of its previously stated guidance of $1.85-$2.00.
- [By Paul Ausick]
L Brands Inc. (NYSE: LB) also dropped about 2.6% on Friday to record a new 52-week low of $56.01. The stock closed at $57.48 on Thursday. Volume was about 33% above the daily average of around 2.5 million shares. Wednesday’s report that ecommerce giant Amazon.com is considering competing with the company’s Victoria’s Secret stores has caused some investors to seek greener pastures.
- [By Teresa Rivas]
L Brands (LB) ended at the bottom of the S&P 500 on Thursday, after disappointing guidance overshadowed better-than-expected earnings.
L Brands slid $9.19, or 15.8%, to $48.94, its lowest close since 2013. By contrast, the S&P 500 gained 0.99 points, or 0.04%, today to 2363.81.
Oppenheimers Anna Andreeva and Samantha Lanman reiterated an Outperform rating and $75 price target on the stock, but admit that the magnitude of L Brands downward forecast was disappointing, even with weak industry trends signaled by peers like Wal-Mart (WMT), Macys (M), and TJX Cos. (TJX).
While they still are bullish, they admit that the bottom isnt clear:
In the last 5 years, LB’s multiple averaged in high-teens given quality of brands/management, with 13-14x trough not seen since early ’13valuation could still compress assuming guidance isn’t conservative enough. Sticking with Outperform for now, albeit near-term visibility is worsening.
L Brands is down 25% this year.
- [By WWW.THESTREET.COM]
The next market worry is retail, with shares of Macy’s (M) falling over 14%, Kohl’s (KSS) down 19% and L Brands (LB) sinking more than 7%.
Cramer said the good news is that money is not leaving the stock market, it’s simply moving from the new winners back to the old winners, stocks like Facebook (FB) and Apple (AAPL) , two Action Alerts PLUS holdings.
- [By Nicholas Rossolillo]
L Brands (NYSE:LB), owner of brands likeVictoria’s Secret and Bath & Body Works, spun off its last stake in The Limited to private equity company Sun Capital in 2010. Once a thriving fixture of the shopping mall experience, the beleaguered company is throwing in the towel and is now in process of closing down its remaining 250 locations.
stock market programs: Energy XXI Ltd.(EXXI)
- [By Lisa Levin]
Shares of Energy XXI Ltd (NASDAQ: EXXI) were down 72 percent to $0.181 after the company announced that it and some of its subsidiaries have entered into a Restructuring Support Agreement (RSA) with holders of more than 63 percent of its secured second lien 11.0 percent notes. Energy XXI added that in order to implement the terms of the RSA, it has commenced cases under Chapter 11 of the Bankruptcy Code.
stock market programs: Crescent Point Energy Corp (16)
- [By Kana Nishizawa]
China Coal Energy Co., the countrys second-largest producer of the fuel, sank 3.1 percent after the government said it will cut coal consumption. Sun Hung Kai Properties Ltd. (16), the worlds second-biggest developer, fell 1.4 percent after trimming its sales target. Gold producers led materials companies lower as the precious metal headed for its steepest weekly loss since June amid expectations the U.S. Federal Open Market Committee will next week decide to reduce stimulus.
stock market programs: Synacor, Inc.(SYNC)
- [By Monica Gerson]
Synacor Inc (NASDAQ: SYNC) is projected to post a quarterly loss at $0.03 per share on revenue of $30.00 million.
VAALCO Energy, Inc. (NYSE: EGY) is expected to post a quarterly loss at $0.11 per share on revenue of $18.59 million.