Tag - PSUN

Stocks are rising in afternoon trading after Treasury Secretary Timothy Geithner told Congress that some banks could be allowed to repay financial bailout funds.

At 1:24 pm ET, the Russell 2000 (NYSE:IWM) is up 2.47% at 463.65, while the Dow is up 0.74% and the S&P 500 is climbing 1.13%.

Small caps on the move today include retailer Pacific Sunwear (Nasdaq:PSUN), up nearly 20% after it renewed an extension agreement with Alliance Data Systems, and retailer Charming Shoppes, Inc. (Nasdaq:CHRS), which is up 14% on lower-than-average volume.

*****Treasury Secretary Tim Geithner is having his “Lucy” moment today. Yes, he’s got “a lot of explaining to do …”

He spoke Congress today to answer questions as to how the Public-Private Investment Program will actually remove toxic assets and protect taxpayer money at the same time. Also up for explanation is how the remaining $110 billion in TARP money is enough to fund any future bank rescues.

I don’t envy Geithner one bit. That’s because there’s no way he can adequately answer these questions:

If TARP’s $110 billion is sufficient, why is the government talking about accepting equity in return for as much as $200 billion in bailout funds?

How can you provide loans to private investors to minimize the risk of toxic asset purchases, pay the banks a premium for those assets and still believe that taxpayers can make off the deal?

There’s no way everybody can make money of these deals. The taxpayer is taking on the most risk and has the most to lose. 

*****No word on why Geithner thinks $110 billion is sufficient to keep the bailouts rolling. Goldman Sachs mortgage analysts think another $400 in bank . . .

Small-cap stocks struggled again on Tuesday, unable to shrug off awful data on home sales, which were so bad they defied claims that the housing market has bottomed. Retailer shares also were a drag on the market as stores are getting a chilly reception this holiday season from consumers. The Russell 2000 (NYSE:IWM) closed down 6.44, or 1.35%, at 468.64, and is now down 39% for the year. Meanwhile, the Dow is off 37% for 2008, and the S&P 500 is down 41%, as the stock market limps into the final six trading sessions of a year that could be the worst since the Great Depression era.

With a short trading week in tow, the market is getting force-fed a sizable batch of economic data into just a two-day window. The first run of data today had mixed signals; on a positive note, consumer sentiment perked up more than expected in the latest Reuters/Michigan sentiment survey, rising to 60.1, compared with a consensus projection of 58.6. While that’s still a low reading historically, it raises some hope that sentiment is finally on an upswing.

As for the “not-so-good” economic news, the latest picture of the nation’s housing market came in much worse than feared. New home sales tumbled 2.9% to an annualized rate of 407,000 units, below the forecast of 415,000 units. But the really bad news was seen for existing home sales, which make up the lion’s share of housing activity. Existing home sales crumbled 8.6% for the worst decline in 11 years and the rate plunged to 4.49 million units – way below the projection for 4.93 million units. Even more disheartening is that the median home price fell 13.2%, the largest percentage decline in 40 years of collecting data. And it’s not like the bargain basement prices cleaned up inventory either – in fact, the supply of homes is still pegged at 11.2 months (16.7 months for condos). There are many market watchers who believe that the stock market won’t be able to find a bottom until the housing market turns around and these numbers certainly didn’t instill confidence on that front.

“Existing home sales peaked during the summer of 2005 and fell steadily through September 2007. From then through October 2008, home re-sales had been relatively flat, suggesting a bottom may have been reached. However, sales slumped again in November, reflecting the effects of the credit crunch,” Steven Wood, chief . . .

Shares of Pacific Sunwear of California Inc. (Nasdaq:PSUN) dipped by nearly 11% this morning after the company’s stock was downgraded by two analysts in two days.

Earlier today, MKM Partners downgraded Pacific Sunwear to “sell” from “neutral.” And on Monday, Riley & Co. downgraded the stock to “neutral” from “buy.”

On Aug. 22, Pacific Sunwear shares lost nearly one-third their value and sunk to a new 52-week low after four analysts downgraded the stock in the wake of the company’s revision of its third- and fourth-quarter guidance.

By late morning, Pacific Sunwear is at $6.71, down $0.83 from Monday’s close. The stock has traded as low as $5 and as high as $18.44 in the past year.

For detailed price information and news stories on Pacific Sunwear, click PSUN.

Small-cap stocks pushed higher Friday, ending a difficult week on an up note, as crude oil prices reversed course, a legendary investor soothed market jitters and monetary policy leaders struck a reasonably upbeat tone. In the end, the Russell 2000 (NYSE:IWM) closed up 12.36, or 1.70%, at 737.60, but still lost more than 2% for the week and small caps are still down 3.7% for the year. The Dow closed up 1.73% and is now down 12.3% for 2008; meanwhile, the S&P 500 rose 1.13% Friday and is down 11.9% for the year.

Stock market watchers got a taste this week of just how fickle and tumultuous commodity markets can be when uncertainty is in the air. With all eyes on crude oil gyrations the past few days, the market for black gold collapsed down to the $112 handle a couple days ago, then shot back up above $120 the very next day. Today, the market cooled off, with crude generating the largest one-day percentage decline in some four years, backing down to $115 as a strong dollar put the brakes on demand for commodities. Still, with geopolitical tension in the mix between Russia and the United States, and with hurricane season pulsing through the tropics, stock market traders could get seasick tethered so tightly to crude oil.

Speaking of physical markets, the Commodity Research Bureau Index of 19 various commodity markets tumbled more than 2% today, as the slide was widespread beyond just the realm of energy. A big part of the decline was tied to a sudden resurgence in the U.S. dollar, which looked awful just one day earlier. Before the market opened this morning, billionaire investor Warren Buffett said on CNBC that he was not short the dollar and that the stock market was better off today than it was a year ago, which bolstered a fragile investor psyche. On Thursday, the greenback was absolutely hammered against the yen and fell hard against the euro as well, which sparked fears of a resurgence in commodities and a flight away from U.S. assets. However, the rout on the dollar proved to be very short-lived, and the buck was back near multi-month highs against many currencies today. At this stage of the economic . . .

After opening higher on the session, small caps accelerated into the green as Federal Reserve Chairman Ben Bernanke eased inflation concerns and oil deflated.

At 12:00 p.m. ET, the Russell 2000 (NYSE:IWM) was up 6.44, or 0.89%, at 731.69, while the Dow gained 156.82, or 1.37, to 11587.03.

Bernanke, speaking at a conference for central bankers in Jackson Hole, Wyoming on financial stability, said that recent declines in commodity prices and stabilization of the dollar were “encouraging,” and that although the inflation outlook is uncertain, the Federal Reserve will act as needed to maintain price stability. As Bernanke spoke the gains accelerated in the market.

Adding to the glee, oil has sold off $3.42 a barrel to roughly $117.76 midday, as OPEC announced that it would increase output though anxiety surrounding tensions between United States and Russia remain on the radar.

As oil has deflated, the greenback rallied against the euro and the yen after a sharp dip on Thursday.

In other positive trading catalysts, “The Oracle of Omaha,” Waren Buffett, said on CNBC that stocks are “more attractive” today than they were a year ago and that he currently does not have any bearish bets against the dollar. He also said that he has increased a stake in one of his financial firm investments

Pacific Sunwear of California Inc. (Nasdaq:PSUN) lost nearly one-third its value and sunk to a new 52-week low this morning after four analysts downgraded the stock in the wake of the company’s revision of its third- and fourth-quarter guidance.

Just before the market closed on Thursday, the Anaheim, Calif.-based youth specialty retailer said it now expects earnings from continuing operations of $0.00 to $0.05 per share for the third quarter and non-GAAP earnings from continuing operations of $0.11 to $0.16 per diluted share for the fourth quarter of fiscal 2008.

Analysts were expecting earnings per share of $0.23 for the third quarter and $0.36 for the fourth quarter.

Pacific Sunwear said it continues to be impacted by the effect of a weakening economy on the retail sector.

As a result of the disappointing revision, four analysts downgraded the stock this morning. Robert W. Baird to “neutral” from “outperform;" Friedman Billings to “market perform” from “outperform;” Roth Capital to “hold” from “buy;” and BB&T Capital Markets to “hold” from “buy.”

By mid-morning, Pacific Sunwear is at $5.36, down $2.42 from Thursday’s close, after having traded as low as $5 earlier in the day. Previously the stock had ranged between $7 and $18.44 during the past year.

For detailed price information and news stories on Pacific Sunwear, click PSUN.

Pacific Sunwear of California Inc. (Nasdaq:PSUN), Perry Ellis International Inc. (Nasdaq:PERY) and First M&F Corp. (Nasdaq:FMFC) are among the biggest percentage losers in Friday's trading among companies with market capitalizations under $1 billion.           

Also included among the results: Marine Petroleum Trust (Nasdaq:MARPS), Noah Education Holdings Ltd. (Nasdaq:NED), Pyramid Oil Co. (Nasdaq:PDO), Temecula Valley Bancorp Inc. (Nasdaq:TMCV), Volcom Inc. (Nasdaq:VLCM) and Citizens & Northern Corp (Nasdaq:CZNC).           

Here are the biggest percentage losers among small caps:   

Small-cap stocks pushed higher on the open, buoyed by a slide in crude oil prices, a bounce in the U.S. dollar, and soothing comments from billionaire investor Warren Buffett. At 10:04 a.m. ET, the Russell 2000 (NYSE:IWM) was up 8.35, or 1.15%, at 733.60, holding on to gains after the first flash of headlines from Federal Reserve Chairman Ben Bernanke.

Bernanke, speaking on financial stability, said that recent declines in commodity prices and the stability of the dollar were encouraging, and that although the inflation outlook is uncertain, that the Federal Reserve will act as needed to maintain price stability.

Buffett, nicknamed “The Oracle of Omaha” said on CNBC ahead of the opening this morning that stocks were “more attractive” today than they were a year ago and that he does not have any current bearish dollar investments. Buffett’s comments provided a lift to stock index futures and to the dollar ahead of the regular market opening.

Crude oil prices were in retreat mode this morning, unable to extend the dramatic rally from Thursday’s action. Crude oil prices were down nearly $2 dollars a barrel, hovering just below $119, weighed down by OPEC output increases. However, the market is still cautious about tensions between the United States and Russia and closely watching storm patterns trekking through the Gulf of Mexico.

The U.S. dollar was righting the ship today after a sudden freefall Thursday, which also pressured crude oil prices and a host of other commodity markets. The greenback was up some 1.2% against the yen and the pound sterling, and was up about 0.6% versus the euro. At this stage of the economic cycle a firm dollar is seen as a sign of optimism about the U.S. economy relative to other world economies, and . . .

Small-cap stocks opened lower and remained under pressure all day Friday, unable to shake off concerns about surging energy prices. The Russell 2000 (NYSE:IWM) shed 8.91, or 1.22%, to 724.10. For the week, small caps tumbled 17.07, the second-largest one-week point decline since the market bottomed early in early March.

Equities investors truly became fixated this week on the crude oil market, and with good reason. Earlier this week, crude oil futures charged past $135 dollars a barrel, and pump prices in some U.S. metropolitan areas pushed beyond $4 dollars a gallon, a sobering psychological benchmark in front of the summer holiday and driving season. Crude oil gained about 1% in value Friday, which kept equity bulls in hibernation.

Not only does the relentless rise in energy prices blunt consumer spending power, but it also raises input costs for many businesses and tightens margins. The airline industry is the current poster child for that vicious cycle, and many airline stocks were hammered again this week. The AMEX Airline Index closed out the week at new lows, and is trading just above $18, compared with a peak in January 2007 above $66. A powerful glimpse of that slide can be seen in small-cap stock US Airways (NYSE:LCC), which tumbled 18% Friday and is now a $4.25 stock, down from $16 in February, and a peak of almost $63 just a couple of years ago.

This morning’s existing home sales report appeared to serve up some needed good news when the headline figure came in at 4.89 million units sold, which topped the median forecast for a rise of 4.85 million units. However, the rosy headline figure came with hidden thorns, as the inventory of homes for sale swelled to record levels. “The stark inventory situation implies that additional price declines cannot be ruled . . .

Small-cap stocks opened lower, pressured by a jump in crude oil prices overnight, which keeps concerns about consumer discretionary spending at the forefront. At 10:05 a.m. ET, the Russell 2000 (NYSE:IWM) was down 7.33, or 1%, at 725.68.

The headline figure for existing home sales came in above expectations at 4.89 million versus the projection of 4.85 million. Although that figure was slightly better than expected, stock index futures were little changed immediately after the release. The inventory of homes for sale was up 10.5% to a record high, which may have offset any upbeat reaction to the headline figure.

Crude oil prices bounced overnight, lifted by strikes in France that could block tanker traffic and by residual support from a surprising drop in crude oil stocks in this week’s inventory data. In addition, the dollar was soft against the euro heading into today’s U.S. open, which underpinned crude oil prices.

Stock markets around the world were in a selling mood overnight, which also weighed on U.S. equities on the opening. Although Japan was up 0.2% last night, most of the other major countries were down, with Hong Kong off 1.3%, China down 0.9%, Australia down 1.0%, Singapore down 1.2% and Bombay off 1.5%. The biggest overnight loss was seen in Karachi, which tumbled 4.7% in response to a rate hike by the State Bank of Pakistan.

Large caps in the news this morning included Haliburton Co. (NYSE:HAL), which announced a bid of $3.4 billion for U.K. firm Expro International. This marks two consecutive days of M&A deals in the energy sector, and provides some . . .

Small-cap shares opened flat and then edged higher, underpinned by news of a big-cap energy acquisition, a firm tone in the dollar, and ideas that Wednesday’s post-FOMC minutes slide was overdone. At 9:52 a.m. ET, the Russell 2000 (NYSE:IWM) was up 2.46, or 0.34%, at 729.56.

News that NRG Energy (NYSE:NRG) tendered a bid to buy Calpine Corp. (NYSE:CPN) for a stock deal worth $11 billion injected some enthusiasm back into the M&A picture this morning, and played a supportive role in market psychology. Calpine shares were up 7.1% shortly after the opening on the news. If there are large-cap merger deals to be done, then there are certainly bargains to be had within small caps.

There are several apparel retailers coming out with earnings today, which could ripple through the markets. Children’s Place Retail Stores (Nasdaq:PLCE), which is right on the upper end of small-cap market capitalization, reported solid quarterly results this morning and the stock was up 6.2% right after the open.

Large caps in the news early today include Pfizer Inc. (NYSE:PFE), which tumbled 1% on the opening on news that its anti-smoking drug had serious side effects. Also, NetApp Inc. (Nasdaq:NTAP) tumbled 5.7% as the company’s forward projections disappointed.

Crude oil prices shot above $135 dollars a barrel overnight, and continue to be a drag on the both the consumer pocketbook and the cost structure for corporations (just ask the battered airline industry). Goldman Sachs technical analyst Kevin Edgeley said in a research report overnight that crude oil momentum and trend strength are pointing higher, and that there is a long-term channel extension target for crude at $142.90. If crude oil were to close lower today, and well off that $135 record overnight peak, it could generate a topping reversal on charts, and is worth . . .

The Russell 2000 (NYSE: IWM) futures are falling and the small-cap index will open with a drop despite an interest rate cut.

The U.S. Federal Reserve has decided to lower the target for the federal funds rate to 3.50% from 4.25% to calm jittery financial markets and keep the economy from falling into a recession.

“The Committee took this action in view of a weakening of the economic outlook and increasing downside risks to growth,” the Fed said in a statement. “While strains in short-term funding markets have eased somewhat, broader financial market conditions have continued to deteriorate and credit has tightened further for some businesses and households.”

The fact that the U.S. central bank has decided to lower the federal funds rate between its regularly scheduled meetings is a sign of the serious economic and financial problems we’re seeing.

The Fed has not moved to lower its target rate between meetings since September 2001, in the wake of the terrorist attacks. Its next regularly scheduled meeting is on Jan. 29 and 30.

The Russell 2000 (NYSE: IWM) fell as investors were not impressed with a stimulus package designed to prevent a recession. The small-cap index tumbled 7.39 points, or 1.09%, to 673.18, its second consecutive decline. The Dow Jones Industrial Average (INDU) lost 59.91 points, or 0.49%, to 12,099.30.

On a year-to-date basis, the Russell 2000 is down 12.12%, while the Dow has declined 8.79% and the S&P 500 is missing 9.75%.

The U.S. economy is in a recession and policymakers will not be able to do much about it. It appears that was the dominating sentiment on Wall Street as the major U.S. indices posted a second day of losses despite news of a stimulus package designed to invigorate the economy.

But stocks small and large actually began trading in the green following news that General Electric Co. (NYSE: GE) reported a rise in fourth-quarter profit, matching analysts’ expectations.

Also contributing good news was Armonk, N.Y.-based International Business Machines Corp. (NYSE: IBM), which reported fourth-quarter earnings and issued a 2008 guidance above projections.

However, the bullish sentiment did not last. Stocks lost steam ahead of President Bush’s speech to discuss an economic stimulus package and stayed below the flat line after details were made public.

“There is a risk of a downturn,” President Bush said today. “I have concluded that additional action is needed.”