Forex School - Forex Learning » down

Rite Aid forecast worse than expected; shares down

admin — Tue, 30 Mar 2010 13:45:10 +0000

NEW YORK (Reuters) – Rite Aid Corp (RAD.N) posted a worse-than-expected quarterly loss and forecast a wider fiscal year loss than Wall Street was anticipating, sending its shares down 8.8 percent.

Asian Markets

The results marked the No. 3 U.S. drugstore chain’s 11th straight quarterly loss, one which the company attributed to a mild cold and flu season that cut down on consumers looking for medications.

Rite Aid has performed worse than larger rivals like Walgreen (WAG.N), which reported improved margins last week, and CVS Caremark Co (CVS.N), even though all three face similar pressures on their earnings.

“We think part of Rite Aid’s consumer base has lagged in terms of economic recovery relative to some of Rite Aid’s peers,” said Leah Hartman, an analyst with CRT Capital Group.

Rite Aid posted a loss of $208.4 million, or 24 cents per shares, in the fourth quarter ended on February 27 from a loss of $2.29 billion, or $2.67 per share, a year earlier.

Analysts on average had forecast a loss of 19 cents a share, according to Thomson Reuters I/B/E/S.

Sales fell 3.6 percent to $6.46 billion. Sales at stores open at least a year fell 2.4 percent, the company said in early March.

Same-store sales of general merchandise sold dropped 2.6 percent, as Rite Aid has had to compete with supermarkets and discount retailers.

The new fiscal year showed some moderation in that decline, with same-store sales falling by 0.1 percent in March. Rite Aid forecast same-store sales would range from a decline of 1 percent to an increase of 1 percent in its fiscal 2011.

The drugstore chain said it expects the economy to remain weak with high unemployment and forecast a fiscal 2011 loss per share of between 41 cents and 65 cents, while analysts expect a loss of 36 cents.

Shares were down 15 cents at $1.55 in late morning trading on the New York Stock Exchange.

FEWER PRESCRIPTIONS FILLED

Rite Aid said prescriptions filled at stores open at least a year fell by 1.7 percent, a key indicator as prescription sales make up two-thirds of total drugstore sales.

“It was a difficult quarter with continued weak consumer demand, a weaker cough, cold and flu season than last year, and continued pressure on pharmacy reimbursement,” Chief Executive Mary Sammons said in a statement.

Sammons is stepping down as CEO in June, but staying on as chairman. She will be replaced by current President and Chief Operating Officer John Standley.

The struggling chain closed 138 stores and opened 17 new stores during the fiscal year, bringing its total store count to 4,780. Chief Financial Officer Frank Vitrano said on a call with analysts that there could be as many as 80 additional store closings this year.

Rite Aid has also had a hard time boosting sales at the Brooks and Eckerd stores it bought from Canada’s Jean Coutu (PJCa.TO) in 2007. The acquisition, which saddled Rite Aid with debt, came just before the recession hit and shoppers cut back spending sharply.

Rite Aid has refinanced debt, trimmed expenses and taken other steps to improve its position, but the acquisition has limited its ability to compete and led to extra expenses linked to the closing of stores.

“You can see that in the kinds of margins Rite Aid has and can see that in the fact they are still closing down stores — it’s a drag,” said Doug Conn, a managing director at Hexagon Securities.

(Reporting by Phil Wahba; additional reporting by Jessica Wohl; Editing by Lisa Von Ahn, Dave Zimmerman)

Asian Markets

feeds.reuters.com

Risk Aversion Strong Overnight, but Dies Down in NY Trading

admin — Tue, 23 Mar 2010 03:04:36 +0000

Note: All information on this page is subject to change. The use of this website constitutes acceptance of our
. Please read our
.
Trading foreign exchange on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading and seek advice from an independent financial advisor if you have any doubts.
Opinions expressed at FXstreet.com are those of the individual authors and do not necessarily represent the opinion of FXstreet.com or its management. FXstreet.com has not verified the accuracy or basis-in-fact of any claim or statement made by any independent author: errors and Omissions may occur.
Any opinions, news, research, analyses, prices or other information contained on this website, by FXstreet.com, its employees, partners or contributors, is provided as general market commentary and does not constitute investment advice. FXstreet.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information.
2010 “FXstreet.com. The Forex Market” All Rights Reserved.

fxstreet.com

FTSE ends down on Greek debt saga (AFP)

admin — Mon, 15 Feb 2010 00:44:42 +0000

closed lower on Friday as recovery stalled in the eurozone and the Greek debt saga weighed on the markets.
ended 0.37 percent lower at 5,142.45 points.
(LBG) was the most traded stock, seeing 434 million units change hands, followed by
(RBS), which saw 95 million shares switch owners.
topped the leader board, gaining 16 pence — or 2.56 percent — to finish at 640, followed by telecoms group BT, which added 2.6 pence — or 2.17 percent — to stand at 122.5.
was the session's biggest loser, slipping 8.4 pence — or 4.12 percent — to close at 195.5, followed by LBG, which shed 1.56 pence — or 3.24 percent — to finish at 46.58.
Meanwhile, sterling slipped against the dollar but was up against the euro.
At 17:16, the pound was trading at $1.5684, down from $1.5690 at the same time on Thursday, while Britain's currency stood at 1.1500 euros, up from 1.1480 euros over the same period.

us.rd.yahoo.com

Are stocks set for a down year?

admin — Sun, 31 Jan 2010 15:57:04 +0000

Are stocks set for a down year?
NEW YORK (Reuters) – The adage “as January goes, so goes the year” bodes ill for equity investors after the S&P 500 closed out its worst month in almost a year. This week, they will have to contend with fears of sovereign defaults and potential unpleasantness in the U.S. labor market as well.
U.S. corporations have so far handily beat analysts’ earnings forecasts. With heavyweights like Exxon Mobil Corp (
XOM.N
UPS.N
) set to report this week, investors will be looking for that to continue, going some way to offset the perception that political risk is on the rise.
Still, China’s protest over the weekend of a $6.4 billion U.S. arms sale to Taiwan is yet another political bump in the road for investors. China said it would impose unspecified sanctions on any companies involved in the deal.
Politics have played the biggest role in tripping up indexes this year. The Standard & Poor’s 500 Index .SPX fell 3.7 percent in January and is off nearly 7 percent from its high this month. Currently, investors are worried that Greece’s debt troubles may herald a wave of sovereign defaults in the euro zone that could derail an economic recovery.
“There’s a lot of concerns going on as far as the sovereign debt is concerned in a lot of the nations, specifically in the euro zone,” said David Lutz, managing director of trading at Stifel Nicolaus Capital Markets in Baltimore.
A heavy week for economic data will culminate in Friday’s nonfarm payrolls report. Analysts believe the economy added 5,000 jobs in January, according to a Reuters poll. Another negative surprise after the previous month’s unexpected surge in job losses could roil markets.
“The next headline is going to be this unemployment data that is coming out, and there is no indication it is going to be moving in the direction in which we want it to move,” said Jonathan Corpina, senior managing partner of Meridian Equity Partners in New York.
Friday’s jobs number will be presaged by the ADP private-sector jobs report on Wednesday.
WILL MORE EARNINGS BEATS HELP?
Around 500 U.S. companies have reported quarterly earnings so far and of those, 73 percent have beaten earnings estimates, exceeding the 68 percent that beat in the last two quarters, according to data from Bespoke Investment Group.
But that positive earnings picture has not translated into gains for the stock market this time around.
Bespoke Investment Group’s data shows the average stock of a company whose earnings beat estimates gained only 0.8 percent, compared with a 2.9 percent drop in those that missed.
“The companies beating aren’t being rewarded by nearly as much as the companies that miss are being punished,” Bespoke Investment said in its research note.
After consecutive quarters when better-than-expected earnings helped drive stocks up more than 66 percent from last year’s lows, fourth-quarter numbers may have already been factored into the market.
Highlights in the second full week of the earnings season will include Exxon Mobil on Monday, which is the first of a number of energy companies reporting results, as well as delivery service UPS on Tuesday. UPS, viewed as a window on the economy’s health, raised its profit forecast earlier this month.
Exxon is expected to post earnings per share of $1.19, while UPS is seen reporting 73 cents per share.
The U.S. economy grew at its fastest pace in more than six years in the fourth quarter of 2009, expanding at an annual pace of 5.7 percent — much more than most economists had expected.
There will be an early indication of the sustainability of growth on Monday, when the Institute for Supply Management releases its manufacturing report for January. Economists in a Reuters poll are expecting a reading of 55.2, showing an expanding sector for the sixth straight month.
That will be followed by the ISM’s service-sector survey on Wednesday, expected to edge into growth mode after the largest segment of the U.S. economy struggled to find its footing in the fourth quarter of last year.
“The economy is showing no signs of a self-sustaining recovery,” said David Wright, portfolio manager at Sierra Core Retirement Fund in Santa Monica.
“Essentially the fuel was used in sustaining the rally as far as it did, and we are now beginning a down cycle that I expect to be prolonged and severe.”
For the past week, the S&P 500 slid 1.7 percent, while the Dow Jones industrial average
shed 1.1 percent and the Nasdaq Composite Index
fell 2.6 percent.
For the month of January, the blue-chip Dow average dropped 3.5 percent — close to the S&P 500’s 3.7 percent decline — and the Nasdaq lost 5.4 percent.
If this January is anything to go by — and the Stock Trader’s Almanac shows only six major occasions since 1950 when January’s performance has not been an indicator for the rest of the year — Wright’s prediction may come true.

feeds.reuters.com

Are U.S. stocks set for a down year?

admin — Sat, 30 Jan 2010 07:53:24 +0000

Are U.S. stocks set for a down year?
NEW YORK (Reuters) – The adage ‘as January goes, so goes the year’ bodes ill for equity investors after the S&P 500 closed out its worst month in almost a year. In the coming week, they will have to contend with fears of sovereign defaults and the potential for unpleasant surprises in the U.S. labor market.
U.S. corporations have so far handily beat analysts’ earnings forecasts. With heavyweights like Exxon Mobil Corp and United Parcel Service Inc set to report next week, investors will be looking for that to continue, going some way to offset the perception that political risk is on the rise.
The Standard & Poor’s 500 Index fell 3.7 percent in January and is off nearly 7 percent from its high this month. Investors are worried that Greece’s debt troubles may herald a wave of sovereign defaults in the euro zone that could derail an economic recovery.
“There’s a lot of concerns going on as far as the sovereign debt is concerned in a lot of the nations, specifically in the euro zone,” said David Lutz, managing director of trading at Stifel Nicolaus Capital Markets in Baltimore.
A heavy week for economic data will culminate in Friday’s non-farm payrolls report. Analysts believe the economy added 5,000 jobs in January, according to a Reuters poll. Another negative surprise after the previous month’s unexpected surge in job losses could roil markets.
“The next headline is going to be this unemployment data that is coming out, and there is no indication it is going to be moving in the direction in which we want it to move,” said Jonathan Corpina, senior managing partner of Meridian Equity Partners in New York.
Friday’s jobs number will be presaged by the ADP private- sector jobs report on Wednesday.
WILL MORE EARNINGS BEATS HELP?
Around 500 U.S. companies have reported quarterly earnings so far and of those, 73 percent have beaten earnings estimates, exceeding the 68 percent that beat in the last two quarters, according to data from Bespoke Investment Group.
But that positive earnings picture has not translated into gains for the stock market this time around.
Bespoke Investment Group’s data shows the average stock of a company whose earnings beat estimates gained only 0.8 percent, compared with a 2.9 percent drop in those that missed.
“The companies beating aren’t being rewarded by nearly as much as the companies that miss are being punished,” Bespoke Investment said in its research note.
After consecutive quarters when better-than-expected earnings helped drive stocks up more than 66 percent from last year’s lows, fourth-quarter numbers may have already been factored into the market.
Highlights in the second full week of earnings will include Exxon Mobil on Monday, which is the first of a number of energy companies reporting, as well as delivery service UPS on Tuesday. UPS, viewed as a window on the economy’s health, raised its profit forecast earlier this month.
Exxon is expected to post earnings per share of $1.19, while UPS is seen reporting 73 cents per share.
The U.S. economy grew at its fastest pace in more than six years in the fourth quarter of 2009, expanding at an annual pace of 5.7 percent — much more than most economists had expected.
There will be an early indication of the sustainability of growth when the Institute for Supply Management releases its manufacturing report for January. Economists in a Reuters poll are expecting a reading of 55.2, showing an expanding sector for the sixth straight month.
That will be followed by the ISM’s service sector survey on Wednesday, expected to edge into growth mode after the largest segment of the U.S. economy struggled to find its footing in the fourth quarter of last year.
“The economy is showing no signs of a self-sustaining recovery,” said David Wright, portfolio manager at Sierra Core Retirement Fund in Santa Monica.
“Essentially the fuel was used in sustaining the rally as far as it did, and we are now beginning a down cycle that I expect to be prolonged and severe.”
For the final week of January, the S&P 500 slid 1.7 percent, while the Dow Jones industrial average declined 1.1 percent and the Nasdaq Composite Index fell 2.6 percent.
For the month of January, the blue-chip Dow average dropped 3.5 percent — close to the S&P 500’s 3.7 percent decline — and the Nasdaq lost 5.4 percent.
If this January is anything to go by — and the Stock Trader’s Almanac shows only six major occasions since 1950 when January’s performance has not been an indicator for the rest of the year — Wright’s prediction may come true.

feeds.reuters.com

GBPUSD breaking trendline support. Looking for the momentum down.

admin — Sun, 17 Jan 2010 14:32:44 +0000

Foreign exchange trading carries a high level of risk that may not be suitable for all investors. Leverage creates additional risk and loss exposure. Before you decide to trade foreign exchange, carefully consider your investment objectives, experience level, and risk tolerance. You could lose some or all of your initial investment; do not invest money that you cannot afford to lose. Educate yourself on the risks associated with foreign exchange trading, and seek advice from an independent financial or tax advisor if you have any questions.
FXDD provides references and links to selected blogs and other sources of economic and market information as an educational service to its clients and prospects and does not endorse the opinions or recommendations of the blogs or other sources of information. Clients and prospects are advised to carefully consider the opinions and analysis offered in the blogs or other information sources in the context of the client or prospect’s individual analysis and decision making. None of the blogs or other sources of information is to be considered as constituting a track record. Past performance is no guarantee of futures results and FXDD specifically advises clients and prospects to carefully review all claims and representations made by advisors, bloggers, money managers and system vendors before investing any funds or opening an account with any Forex dealer. Any news, opinions, research, data, or other information contained within this website is provided as general market commentary and does not constitute investment or trading advice. FXDD expressly disclaims any liability for any lost principal or profits without limitation which may arise directly or indirectly from the use of or reliance on such information. As with all such advisory services, past results are never a guarantee of future results.

forex.fxdd.com

FTSE 100 finishes down on US earnings (AFP)

admin — Fri, 15 Jan 2010 08:25:40 +0000

LONDON (AFP) –
The leading stock exchange ended lower on Friday as this week's rally came to a swift end in reaction to weaker-than-expected US earnings news, traders said.
ended down 0.78 percent at 5,455.37 points.
was the most traded stock, seeing 295 million units change hands, followed by
, which saw 242 million shares switch owners.
Energy group International Power topped the leader board, adding 12.6 pence — or 4.07 percent — to finish at 322, followed by
, which added 41 pence — or 2.09 percent — to stand at 2,000.
Group which lost 21.7 pence — or 6.9 percent — to close at 292.7, followed by insurer
, which shed 4 pence — or 3.56 percent — to finish at 108.5.
next week.
, no-frills airline easyJet and brewer
, while further developments are expected in Kraft Foods' takeover battle for British confectioner Cadbury.
, with inflation, unemployment,
and retail sales numbers all due.
Meanwhile, sterling traded down against the dollar but ticked up against the euro.
At 17:18, the pound was trading at 1.6248 dollars, down from 1.6325 at the same time Thursday, while the British currency stood at 1.1298 euros, up from 1.1268 over the same period.

us.rd.yahoo.com

USDCHF leading the way down? Or is it just another tease?

admin — Fri, 08 Jan 2010 04:00:10 +0000

forex.fxdd.com

Winding Down…

admin — Fri, 01 Jan 2010 14:21:01 +0000

Winding Down…
Thu, Dec 31 2009, 17:30 GMT
Holiday mode continues to contribute to interesting swings in price action with the USD rising in tandem with stocks at the beginning of the week vs. most of the majors. USD/JPY is a very interesting story as we grind higher into year end. The rally off of the 84.80 level is firmly in tact with near term bias still to the upside after the Dec. 15th break above the cloud resistance. The pair has had a steady rally this month, rising on recovery optimism in the US and an improving yield relationship between US treasuries and Japanese JGB’s.
Also helping to spur USDJPY higher are comments during the week from BoJ Governor Shirakawa who said that the BoJ will remain patient in their near-zero interest rate policy. The technical bias near term, however, is still firmly towards that area. The start of the decline at the end of August began around the 93.27 level and the 200 day SMA on the daily is sloping lower towards 93.70. We should see heavy seller interest at these levels. So In terms of where we could go heading into 2010, it is more than likely that the pair will pare its gains heading into the 93 area, where institutions and major players are rumored to be waiting.
See chart.
The week wasn’t without heavy data, with GDP data from the US, New Zealand, and a month on month print from Canada. Quarterly GDP in NZ was worse than expected, but a positive revision on last quarter’s GDP helped soften the blow. Outlook is still strong in New Zealand, as central bankers have noted that they expect to normalize economic policy in the middle of next year. Rate expectations are still high going into the 1st quarter and may put Kiwi bid in the first month of 2010. Most of the major data this week pertained to the US economy, with Existing Home Sales, New Home Sales, m/m Core Durable Goods, and Unemployment claims all released during the week.
New Home Sales usually give us a good indication of where existing home sales are going, so these numbers are pretty worrisome. There isn’t a huge discrepancy between the previous print in New Home Sales, but it is enough to warrant a mention. We could expect to see a definitive decline in existing home sales into next year as the recovery pans out. This data came out towards the end of the week, right around the time the greenback began to give back some of its gains from the previous weeks rise.
The MPC minutes was also released this week, with members voting 9-0 in favor of leaving interest rates unchanged and to leave their asset purchasing program intact. From the statement we can garner that there is some faint evidence of economic momentum in the UK with improving labor conditions prevalent in previous data releases. The sterling dollar pair was fairly rangy with the holidays so expect some follow thru into next week.

fxstreet.com

US New Home Sales down sharply for November 2009

admin — Wed, 23 Dec 2009 03:58:53 +0000

forex.fxdd.com