Ugly Day for Retailers — Wednesday’s IP Market Recap

by Marc Bastow | December 26, 2012 4:23 pm

It wasn’t quite a Merry Christmas for retailers and investors paid the price as the sector suffered the majority of losses in Wednesday’s trading. Adding to the gloom contained in an east-coast winter storm was a lack of any progress in budget talks, even as President Obama left the warmth of Hawaii to fly back to Washington and try to make a deal.

The net result was a loss on the day despite some good news on the housing front, as the Case-Schiller Index showed [1]another rise in new home prices in October. The Nasdaq took the biggest fall, dropping 0.74% to 2,990.16, while the S&P 500 lost 0.48% to 1,419.83 and the Dow fell 0.19% at 13,114.59.

Retailers winced on news of weakness in sales[2] in the eight weeks leading to Christmas. The sector, once again, was down broadly on the day, led by Michael Kors (NYSE:KORS[3]) which was down nearly 7% by the end of the trading session.

Sector mates Coach (NYSE:COH[4], -5.9%), Abercrombie & Fitch (NYSE:ANF[5], -3.5%), and Ralph Lauren (NYSE:RL[6], -3.3%) also saw shares sink on the news. E-tailer Amazon (NASDAQ:AMZN[7]) tumbled as well, falling just under 4%.

Bucking the trend was J.C. Penney (NYSE:JCP[8]) which maintained Monday’s momentum from a “buy” recommendation from Oppenheimer (NYSE:OPY[9]). Penney closed on Monday up over 1% and added another 4%% today.

Also basking in some good news was Research In Motion (NASDAQ:RIMM[10]), which saw shares climb over over 11% on no particular news. Herbalife (NYSE:HLF[11]) also rose just over 5% after hiring a strategic advisor and announcing it will hold an analyst and investor meeting next month in response to comments from hedge fund manager Bill Ackman[12].

Three Up

Three Down

Marc Bastow is an Assistant Editor at InvestorPlace.com. As of this writing he did not hold a position in any of the aforementioned securities.

Endnotes:
  1. showed : http://investorplace.com/2012/12/sp-case-shiller-index-home-prices-rose-in-october/
  2. weakness in sales: http://investorplace.com/2012/12/retailers-see-weak-holiday-sales/
  3. KORS: http://studio-5.financialcontent.com/investplace/quote?Symbol=KORS
  4. COH: http://studio-5.financialcontent.com/investplace/quote?Symbol=COH
  5. ANF: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANF
  6. RL: http://studio-5.financialcontent.com/investplace/quote?Symbol=RL
  7. AMZN: http://studio-5.financialcontent.com/investplace/quote?Symbol=AMZN
  8. JCP: http://studio-5.financialcontent.com/investplace/quote?Symbol=JCP
  9. OPY: http://studio-5.financialcontent.com/investplace/quote?Symbol=OPY
  10. RIMM: http://studio-5.financialcontent.com/investplace/quote?Symbol=RIMM
  11. HLF: http://studio-5.financialcontent.com/investplace/quote?Symbol=HLF
  12. comments from hedge fund manager Bill Ackman: http://investorplace.com/2012/12/ackman-blasts-herbalife-as-a-pyramid-scheme/
  13. ANR: http://studio-5.financialcontent.com/investplace/quote?Symbol=ANR
  14. BIDU: http://studio-5.financialcontent.com/investplace/quote?Symbol=BIDU
  15. GRPN: http://studio-5.financialcontent.com/investplace/quote?Symbol=GRPN
  16. RSH: http://studio-5.financialcontent.com/investplace/quote?Symbol=RSH
  17. UA: http://studio-5.financialcontent.com/investplace/quote?Symbol=UA
  18. VRNG: http://studio-5.financialcontent.com/investplace/quote?Symbol=VRNG

Source URL: http://investorplace.com/2012/12/wednesdays-ip-market-recap-hlf-rimm-rl-kors-amzn-anf/
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