Tag - Wfmi

Small-cap stocks pushed higher in a relatively tame session, with morning pressure from concerns about sloppy sales at Wal-Mart countered by optimism for massive infrastructure spending projects in the months ahead. Perhaps the story lines simply balanced out each other, or perhaps the market was taking a little “breather” ahead of Friday’s big jobs report. The Russell 2000 (NYSE:IWM) closed up 4.91, or 0.99% at 502.01 and is now up 0.5% for the year; meanwhile the Dow is off 0.3% for 2009 and the S&P 500 is up 0.7%.

The day started off with a thud as the Wal-Mart worries ignited fears that if consumer spending is slack at discounters, then how bad might it be for higher-end fare? Wal-Mart Stores Inc. (NYSE:WMT) reported same-store sales were up 1.7% in December, which missed the forecast for a rise of 2.8%. WMT was a drag on large-cap index products throughout the day, and eventually lost more than 7%.

There actually was plenty of movement today in the retail arena, with most stores now coming out with monthly same-store results. However, for every Wal-Mart, Limited Brands Inc. (NYSE:LTD) and Abercrombie & Fitch Co. (NYSE:ANF), all of which fell on weak numbers, there was a Sears Holdings Corp. (Nasdaq:SHLD), which jumped 23%. If you owned stock in any retailers, chances are you experienced ...

Small-cap stocks pushed lower, pressured by news of soft earnings and by profit-taking from traders who caught Tuesday’s big rally. At 9:54 a.m. ET, the Russell 2000 (NYSE:IWM) was down 5.15, or 0.71% at 715.89.

Tech stocks were underpinned relative to other index products by surprisingly stout earnings from Cisco Systems Inc. (Nasdaq:CSCO), which was up 5% shortly after the open. Within the tech arena, Microsoft Corp. (Nasdaq:MSFT) was the beneficiary of positive analyst comments overnight and was up 1.5%.

However, the good news on big-cap techs was countered by big losses from a broad spectrum of companies. For example, Whole Foods Market Inc. (Nasdaq:WFMI), missed the earnings projection and tumbled 18% on the open. Also, priceline.com (Nasdaq:PCLN) was down 13% as the company had a cautious forward-looking statement. Freddie Mac (NYSE:FRE) dropped 13% on sloppy quarterly earnings and news that the firm will reduce its dividend.

Crude oil prices were on mildly firm footing this morning awaiting the weekly inventory report, which comes out near 10:35 a.m. ET. Energy prices have tanked in recent days, sinking over 19% from the summer peak to the recent low. The market is a little oversold on short-term momentum readings and vulnerable to a bounce. In addition, an explosion in a pipeline in Turkey and concerns about potential supply disruptions out of Africa were supportive elements in play. As for the inventory report, traders are looking for a build in crude oil stocks of about 300,000 barrels...

Small-cap shares are edging higher in midday trading, supported by a reversal rally that was triggered ahead of the opening by an inflation report suggesting that the economic slowdown is moderating inflation related to soaring food and energy prices. At 1:20 p.m. ET, the Russell 2000 (NYSE:IWM) was up 6.71, or 0.91%, at 743.56.

The consumer price index (CPI) headline figure came in at 0.2%, which was below the forecasted 0.3%. The “core” reading, which excludes food and energy costs, came in at 0.1%, also below the median forecast of 0.2%. The CPI report suggested inflation wasn’t out of control, which means the Federal Reserve can keep interest rates low in response to the sputtering economy.

“Headline consumer inflation rose moderately in April because a sharp rise in food prices was partially offset by no change in energy costs,” Steven Wood, chief economist with Insight Economics, said in an email. “Meanwhile, core consumer inflation rose only slightly with largely offsetting price accelerations and decelerations in the various expenditure categories. Although energy prices are expected to rise sharply over the next several months, weakening economic activity over the next several quarters should help cap the gains in core inflation. Although the Fed is currently on hold, at least temporarily, they have heaved a collective sigh of relief with the release of this data,” Wood said.

The market appeared to take away a perception of a hawkish tone from the array of Federal Reserve speakers that were out and about Tuesday, and the CPI . . .

Small-cap shares edged higher on the opening, supported by a reversal rally that was triggered ahead of the opening by a tame inflation report. At 9:53 a.m. ET, the Russell 2000 (NYSE:IWM) was up 3.24, or 0.44%, at 740.09.

The CPI (Consumer Price Index) headline figure came in at 0.2%, which was below the forecast of 0.3%. The “core” reading, which excludes food and energy costs, came in at 0.1%, also below the median forecast of 0.2%. The CPI report suggested inflation wasn’t raging out of control, which sparked a reversal in fortune for equities in the overnight session, and the buyers remained in place for the regular opening.

“Headline consumer inflation rose moderately in April because a sharp rise in food prices was partially offset by no change in energy costs,” Steven Wood, chief economist with Insight Economics, said in an email. “Meanwhile, core consumer inflation rose only slightly with largely offsetting price accelerations and decelerations in the various expenditure categories. Although energy prices are expected to rise sharply over the next several months, weakening economic activity over the next several quarters should help cap the gains in core inflation. Although the Fed is currently on hold, at least temporarily, they have heaved a collective sigh of relief with the release of this data,” Wood said.

The market appeared to take away a perception of a hawkish tone from the array of Federal Reserve speakers that were out and about Tuesday, and the CPI . . .

Small-cap shares are expected to open slightly higher, erasing mild overnight losses on the release of CPI data this morning, which came in relatively tame. S&P 500 futures jumped about six handles on the CPI report, moving from negative territory to positive. If the Russell 2000 (NYSE:IWM) matches the early climb in S&P 500 futures, then the Russell should open about 0.2% higher near 738.20.

The CPI headline figure came in at 0.2%, which was below the forecast for a gain of 0.3%. In addition, the ex-food and energy component was pegged at 0.1%, which was below the median projection for a gain of 0.2%.

In overnight trading, big caps on the move include Whole Foods Market Inc. (Nasdaq:WFMI), which tumbled nearly 10% when earnings failed to meet expectations. Deere & Co. (NYSE:DE) was off nearly 6% despite a 22% jump in quarterly profits. The world’s largest maker of tractors cautioned that rising raw material costs could crimp operations the rest of 2008, which sparked the pullback in shares . . .

Shares of Wild Oats Markets Inc. (Nasdaq: OATS) are climbing Monday morning after The Federal Trade Commission filed an antitrust lawsuit to block the $565 million sale of Wild Oats to Whole Foods Market, Inc. (Nasdaq: WFMI).

The FTC says the merger of Wild Oats and Whole Foods, the nation's two largest natural-food chains, would increase prices and restrain competition.

Wild Oats says prices at its stores will fall if they are bought by competitor Whole Foods Market Inc., and says regulators should not contest the deal because it would be positive for consumers.

Shares of Wild Oats climbed 7.75%, or $1.02, to $15.47 mid-morning Monday.