Stocks End Losing Streak, Try For Day Two Of Gains As Fed And Retailers In Play – Benzinga

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Stocks End Losing Streak, Try For Day Two Of Gains As Fed And Retailers In Play

Broad stock averages are positioning for back to back gains on Wednesday after Tuesday’s late-session spring higher broke what had been a string of four declines fueled by rate-hike jitters.

A holding pattern could take over trading ahead of Friday’s highly anticipated October jobs report. Trading was light, with stock markets open but the bond market and most schools closed for the U.S. Veterans Day holiday.

Wall Street’s gains could be challenged by a sour tone in the retail sector. Macy’s (NYSE: M) fell sharply after a revenue miss and lowered guidance. With several retailers reporting in coming sessions, it’s possible Macy’s dud causes broader Wall Street to lower its expectations for this retailer reporting round.

A Macy’s Miss

Macy’s shares are sharply lower early Wednesday after its reported revenues fell short of Street estimates and the department store chain lowered full-year guidance. As for the details, Macy’s said it had net income of $117 million, or $0.36 per share, in Q3, down from $0.61 per share, or $217 million for the same period last year. Adjusted earnings were $0.56 per share, about in line with the Street view. The retailer reported sales of $5.88 billion versus $6.2 billion a year earlier. Wall Street expected $6.09 billion. Macy’s revised full-year EPS guidance to $4.20 to $4.30, excluding impairment charges associated mostly with announced store closures. The previous guidance was for $4.70 to $4.80. The company lowered full-year same-store sales guidance on an owned plus licensed basis to a decline of 1.8% and 2.2% from flat. Q4 same-store sales guidance is a 2% to 3% decline.


Singularly Sound? Alibaba Group Holding (NYSE: BABA) may see active trading as the Chinese e-commerce giant reported blockbuster sales for Singles’ Day. It’s a result that some Street economists may stress Chinese consumer resilience despite other signs of a flagging economy.

Beer Deal Moves Ahead

Anheuser-Busch InBev NV (NYSE: BUD) says it has formally agreed to buy SABMiller for about $106 billion, as SABMiller agreed to sell its 58% stake in the MillerCoors LLC joint venture to its partner Molson Coors Brewing (NYSE: TAP). That sale of MillerCoors is necessary for AB InBev to get approval from U.S. regulators to buy SABMiller.

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