Suddenly (and somewhat magically) convinced that all the Brexit concerns were no longer a problem, the bulls logged a third straight day of gains. Today’s 1.36% advance of from the S&P 500 left it at 2098.86, effectively where it ended right before Britain shocked the world by voting to leave the European Union.
Here’s a closer look at why each was up-ended.
Mastercard Inc (MA)
Mastercard was on the wrong end of a reversed court decision on Thursday, sparking a 4.4% stumble from MA shares.
The credit card company thought the matter was behind it, settling with retailers that claimed the card middleman had overcharged them for years. While the $7.25 billion it — along with Visa Inc (NYSE:V) — would have to shell out as restitution wasn’t a small amount, the years-long legal battle would at least be over.
Not so … according to a U.S. appeals court. The judicial system agreed with retailers that the dollar figure was “unreasonable and inadequate,” effectively opening the door to a bigger settlement in the future once the matter is re-argued.
Royal Bank of Scotland Group PLC (RBS)
Just when it looks like the worst is over for the British banks following the country’s decision to leave the EU, it gets a little worse. These banks were in the red again today, led by a 4.5% drop from Royal Bank of Scotland Group, on another round of worries.
The bulk of the setback RBS shares suffered today stemmed from worries that the Bank of England — Britain’s equivalent to the United States’ Federal Reserve — would soon be cutting interest rates. Just like their U.S. counterparts, British banks find it tougher to turn a profit in a low-rate environment.
Fanning the bearish flames for RBS were comments made by Royal Bank of Scotland Group CEO Howard Davies, who now claims that his bank along with others must now seek out new capital … capital that will certainly be tough to muster.
Rival Lloyds Banking Group PLC (ADR) (NYSE:LYG) wasn’t too far behind RBS, with a 2% setback of its own.
Tractor Supply Company (TSCO)
Last but not least, last quarter, popular “hobbyist farmer” outfitter Tractor Supply didn’t do as well as shareholders had hoped, sales-wise, prompting a Q2 earnings warning that sent TSCO tumbling.
Reportedly, thanks to prolonged cooler weather in the springtime, same-store sales last quarter fell 0.5% for the retailer. In turn, Tractor Supply Company cautioned investors it only expected to post a profit of between $1.15 and $1.16 per share of TSCO when it reports on July 20.
Analysts had been expecting an average profit of $1.26 per share. Sales will roll in right around $1.85 billion, versus estimates of $1.93 billion.
The anticipated top and bottom line full-year guidance from the company was adjusted accordingly, and still calls for impressive progress. TSCO shareholders weren’t swayed though, sending TSCO down to the tune of 4%.
As of this writing, James Brumley did not hold a position in any of the aforementioned securities.
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