Archive for August, 2013

Market Wrap

August 30th, 2013 No comments

S&P –0.32% Very choppy session. Both John Kerry and Obama spoke about the impending action in Syria.

Chicago PMI 53 vs. 53 est./52.3 prior. Employment 54.9/56.6. New orders 57.2/53.9

Consumer sentiment 82.1 vs. 80 est., 80 prior

Categories: News

Market Wrap

August 28th, 2013 No comments

S&P +0.27% Market was still dominated by geo-political Syria uncertainty

Pending home sales -1.3% vs. -1.0% est. Prior -0.4%

$JOY reported bad bookings

$WSM reported good sales and earnings, but warned about gross margin pressure the rest of the  year

Categories: News

Market Wrap

August 27th, 2013 No comments

S&P –1.59% The market gapped down and fell most of the day due to Syrian geo-political uncertainty with the U.S. likely to bomb in the coming days, emerging markets selling off, and a CNBC source on Team Obama saying Larry Summers was the likely pick for the Fed.

Consumer confidence 81.5 vs. 78.0 est., prior 80.3 revised to 81.0

Richmond Fed 14 vs. 0 est. –11 prior

Both $TIF and $MOV raised earnings guidance for the full fiscal year

Categories: News

Market Wrap

August 26th, 2013 No comments

S&P –0.40% The market shook off a weak durable goods number most of the day. It sold off following a John Kerry statement, which hinted at military action against Syria.

Durable goods ex-transportation –0.6% vs. 0.3% est./prior 0.0% revised to 0.1%

Dallas Fed 5.0 vs. 4.5 est., 4.4 prior

$AMGN announces $125 cash deal for $ONXX

Categories: News

Market Wrap

August 23rd, 2013 No comments

S&P +0.39%. Market was boosted by the news that $MSFT CEO Steve Ballmer would retire within 12 months and slightly dovish statements overall from Fed presidents at Jackson Hole.

Fed Lockhart supportive of September QE taper as long as data ok, Fed Bullard wants to be “very deliberate” in decision making meaning he doesn’t want to move on taper early. Fed John Williams wants to stick with Bernanke’s time-line plan and taper as long as data follows their expectations

New home sales 394K vs. 487K est. Prior revised to 455K from 497K

Mr. "Buy anything with a symbol" @Ralph_Acampora is now bearish -> "never fight papa Dow" "something is wrong" "target 12,000"

Categories: News

Market Wrap

August 22nd, 2013 No comments

S&P +0.86%. The market shook off a halt in Nasdaq stocks due to computer problems and rallied on strong over-night PMI data out of China and Europe.

Jobless claims 336K vs. 329K est. Prior 320K revised to 323K

Europe Flash Mfg PMI 51.3 vs. 50.9 est., 50.3 prior

HSBC Flash Mfg PMI 50.1 vs. 48.3 est., 47.7 prior

$SHLD $ANF posted weak sales and earnings

$GME raised October guidance vs. street (probably due to GTA V and BF4)

$HPQ said last night it now expects FY14 sales growth to be “unlikely”, back-pedaling from potential growth/stabilization comments in the past

Categories: News

Market Wrap

August 21st, 2013 No comments

S&P –0.58%. The market was choppy and volatile intra-day on strong home sales data, wild Fed minutes reaction, weak reports from $TGT $SPLS and a strong report from $LOW

Existing home sales 5.39M vs. 5.15M est.

Hilsenrath on the Fed minutes Link

$TGT sales comp 1.2% vs. 1.9% street estimate.

Categories: News

Market Wrap

August 20th, 2013 No comments

S&P +0.38%. The market rallied after the open on better than expected numbers from $BBY and $HD, although $DKS $JCP and $BKS posted weak numbers. All eyes are on the Fed minutes released at 2PM tomorrow.

$BKS digital content sales -15.8% y/y vs. -8.9% prior. Core book comps -7.2% y/y vs. -5.8% prior. Nook device sales -23% y/y

$DKS 71c vs. 74c est. Sales 1.5B vs. 1.57B est. Comp 1.2% vs. 3.5-4.5% guide. Next qter 37-39c vs. 47c est. Guides down for year. Just awful

$BBY dom comps CE improved -5.5% vs. -11.5% prior. Computing/Phones 5.8% vs. 7.4% prior. Videogames/Entertainment -29.8% vs. -17.2% prior

$BBY comps -0.6% vs. -1.3% prior. Domestic -0.4% vs. -1.1% prior. Online 10.5% vs. 16.3% prior

$BBY EPS 32c vs. 12c est. Sales 9.3B vs. 9.13B est

Categories: News

Market Wrap

August 19th, 2013 No comments

S&P –0.59%. Not much news. 10 year Treasury continues to drip lower. $Z announces a 5M share secondary (2.5M from existing share-holders)

Categories: News

Walmart’s Math Doesn’t Work

August 19th, 2013 No comments

On the May 16, 2013 Q1 call company management said: “May is off to a good start, with positive comps” Source Link bottom of page 16

On August 15, 2013 Walmart reported Q2 comps of –0.3% for the quarter. Source Link

On the August 15, 2013 Q2 conference call “traffic and comp sales increased throughout the quarter” Source Link top of page 10


How do you start off the quarter with positive comps then report a negative comp for the entire quarter, but then say comp sales got better “throughout the quarter”?

This is in addition to management saying things will get better in February AND May, which turned out to be wrong each time.

Management credibility is at stake here. Walmart management needs to be honest about this discrepancy above. Were they lying in May or lying on the August conference call? The math simply doesn’t work. How can Walmart investors trust a word management says after this?

Categories: News