Tag - GOT

An abrupt late-session reversal pushed down the Russell 2000 (NYSE: IWM) and the Dow Jones Industrial Average (INDU), wiping out strong gains that came despite weak retail sales. The small-cap index lost 10.21 points, or 1.21%, to 834.98. The Dow tumbled 63.57 points, or 0.45%, to 14,015.12.

Small caps were on track for a strong close and the Dow was in record territory until about 2 p.m. ET, when an abrupt turnout erased all gains and resulted in steep losses.

There appear to be a number of factors that combined to push equities off the cliff.

Financial services giant JPMorgan Chase & Co. (NYSE: JPM) announced staff reductions due to the lower volume of leveraged finance and structured credit, while also lowering its sales estimate for Chinese search engine Baidu—a move that resulted in a decline of major U.S. tech stocks.

Meanwhile, Countrywide Financial Corp. (NYSE: CFC) announced that September mortgage lending tumbled a stunning 44.3% from a year earlier due to tighter lending standards and the ongoing housing slump.

Trading got off to a bullish start following news that Wal-Mart Stores Inc. (NYSE: WMT) raised its third-quarter profit outlook.

Positive news from the world’s largest retailer overshadowed generally weak same-store results for September. Retailers blamed the warm weather, which made it difficult to sell cold-weather items.

The Russell 2000 (NYSE: IWM) and the other major U.S. indices opened in positive territory on good economic news and an upbeat forecast from Wal-Mart.

At 10:16 a.m. ET, the small-cap index had added 4.52 points, or 0.53%, to 849.71. The Dow Jones Industrial Average (INDU) had advanced 77.39 points, or 0.55%, to 14,156.08.

Retailers posted generally weak same-store results for September due to unusually warm weather that stalled sales of cold-weather merchandise. Among small-cap retailers, Gottschalks Inc. (NYSE: GOT) and department store chain The Bon-Ton Stores, Inc. (Nasdaq: BONT) reported same-store sales declines of 3.9% and 6.5%, respectively. Meanwhile, home accessories retailer Tuesday Morning Corp. (Nasdaq: TUES) missed analysts’ projected first-quarter sales forecast.

However, the bulls seized on news that Wal-Mart Stores Inc. (NYSE: WMT) raised its third-quarter profit outlook despite second-quarter results that came in at the low end of its expectations.

In economic news, jobless claims for the week ended Oct. 6 fell by 12,000 to a level of 308,000, according to the U.S. Labor Department.

Elsewhere, U.S. import prices rose in September due to more expensive oil and food, but August U.S. exports increased 0.4% to $138.34 billion, while imports fell 0.4% to $195.92 billion. The Commerce Department also reported that the U.S. trade deficit contracted 2.4% to $57.59 billion in August, from $59.00 billion a month earlier.

Department and specialty store chain Gottschalks Inc. (NYSE: GOT) said this morning that same store sales for the month of September declined.

Same store sales for the month of September 2007 decreased 3.9%, compared with the same month last year. Total sales for the month decreased 7.7% to $52.8 million from $57.2 million in September 2006.

Based on current trends, the company said it expects third quarter comp store sales to be 4.5% below last year.

Jim Famalette, CEO of Gottschalks, said that the store generated positive comparable store sales in its Northwest stores during the month, but continued to experience softer sales trends in its California stores. Specifically, the company said it had generally weak sales across home store merchandise and men's apparel.

Shares of Gottschalks (GOT) edged down 0.02% or $0.40 to $5.01 out of the gate. Shares of Gottschalks have been trading in the range of $4.19 to $15.37 for the past 52 weeks.

Shares of Gottschalks Inc. (NYSE: GOT) soared in today’s trading after the department store operator announced before the opening that it had $200 million under its credit facility after completing a second amendment.

The Fresno, Calif.-based company said the new agreement extends until 2012. The department store operator also said the credit facility gives the company the ability to implement its share repurchase program.

"The expanded and extended facility provides us with a stronger financial structure and greater flexibility,” Greg Ambro, Gottschalks’ chief operating officer, said in a statement. “Our increased borrowing capacity now gives us additional resources to direct toward our plans for an accelerated new store opening program and the completion of an increased number of store remodels."

In today’s trading, GOT shares soared 27.65%, or $1.20, to $5.54. Over the last 52 weeks, shares have ranged from $4.19 to $15.37.

Computer hardware maker SBE, Inc. (Nasdaq: SBEI) is giving back some of Wednesday’s considerable gains.

Maternity clothing retailer Mothers Work, Inc. (Nasdaq: MWRK) said same-store June sales fell 5.4% from the year-ago period. Mothers Work recorded net sales of $46.9 million for the period, from $49.6 million in 2006.

Flow International Corp. (Nasdaq: FLOW) reported an 18% plunge in fourth-quarter revenue compared with 2006.

Citing negative trends, specialty store chain Gottschalks Inc. (NYSE: GOT) forecast a second-quarter loss and lowered its fiscal-year earnings guidance.

These are the biggest percentage losers in Thursday's trading among companies with market capitalizations under $500 million: