by Kyle Woodley | December 27, 2011 5:32 pm
Warm feelings of Christmas cheer took a cold turn Tuesday for Sears (NASDAQ:SHLD) investors, who couldn’t sell fast enough as the company announced scores of store closings. SHLD shares dumped 27% in just a few short hours.
Sears announced today it will close between 100 to 120 Sears and Kmart stores — a bit less than 5% of its total locations — to generate between $140 million to $170 million. Sears, much like beleaguered brethren like Best Buy (NYSE:BBY), has continued to suffer losses to online retailers like Amazon (NASDAQ:AMZN). But the company also has watched its once-great Craftsman and Kenmore lines fall into consumer disinterest, and the stores themselves are in desperate need of updating.
SHLD stock finished Tuesday just above $33, marking its lowest point since the financial crisis. Minus a brief spate of autumn optimism, likely on the anticipation of strong holiday sales, the stock has tumbled steadily since its February peak of $93 for a 65% decline.
Enjoying a far better day was Mead Johnson (NYSE:MJN), which gained almost 6% on positive news concerning its baby formula, Enfamil. Numerous retailers pulled the formula from their stores after two babies tested positive for a certain bacteria. The FDA is conducting its own research, but a Mead Johnson test on samples showed its Enfamil appears to be safe.
Also Tuesday, oil crossed the $100 threshold once more as Iran lashed out against possible international sanctions by threatening to cease crude oil shipments coming through the Strait of Hormuz. Responding in kind were the United States Oil Fund (NYSE:USO) and the PowerShares DB Oil Fund (NYSE:DBO), each of which gained about 1.5%.
As of this writing, Kyle Woodley did not hold a position in any of the aforementioned stocks. Check out our list of previous IP Market Recaps.
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