Stocks that are expected to trade actively in the U.S. market on Tuesday include: Macy’s, Inc. (NYSE:M), T-Mobile US Inc (NYSE:TMUS), Bed Bath & Beyond Inc. (NASDAQ:BBBY), Alcoa Inc (NYSE:AA), SUPERVALU INC. (NYSE:SVU).
U.S.: Dow 16,462.74 (-0.41%), S&P 500 1837.49 (-0.02%), NASDAQ 4165.61 (0.30%)
Europe: FTSE 6743.81 (0.33%), DAX 9540.14 (0.45%), CAC 40 4274.55 (0.32%)
Asia Pacific: NIKKEI 15880.33 (-1.50%), HANG SENG 22787.33 (-0.91%), SHANGHAI 2027.62 (-0.82%), KOSPI 1946.11 (-0.66%)
Top value fund managers are ready for the small cap bear market to be done
During the bull market, small caps haven't been performing well, but some believe that could be about to change. Breach Inlet Founder and Portfolio Manager Chris Colvin and Gradient Investments President Michael Binger both expect small caps to take off. Q1 2020 hedge fund letters, conferences and more However, not everyone is convinced. BTIG strategist Read More
Commodities: Oil 92.73 (0.42%), NAT GAS 4.169 (-1.11%), Gold 1226.90 (0.11%), Silver 19.56 (0.06%), Wheat 590.25 (0.25%), Corn 415.75 (-0.30%).
Currency: EUR/USD 1.3606 (0.24%), GBP/USD 1.6456 (0.07%), USD/JPY 104.94 (0.10%).
10 year Treasury bond: 2.992 (0.000).
Economic and Market Update
U.S. markets down – Investors were conscious of the private sector jobs report released on Wednesday morning. The S&P 500 dropped less than a point to 1,837.49. The Dow Jones Industrial Average dropped 68.20 points, or 0.4%, on Wednesday to 16,462.74, and Nasdaq Composite added 12.43 points, or 0.3%, to 4,165.61.
European markets up – Investors piled up peripheral euro stocks on Thursday with stock markets in Madrid, Milan and Lisbon outperforming as investor confidence surged in the struggling southern European economies. At mid-morning, the FTSEurofirst 300 index of top European shares increased 0.2% at a 5-1/2 year high of 1,324.07. The euro zone’s blue-chip Euro STOXX 50 index added 0.5% at 3,124.10 points, a level not seen in five years.
Asian markets down – Japan’s Nikkei average dropped 1.5% on Thursday after the surge in the previous session as investors remained cautious on the U.S. Jobs report. The Nikkei closed 241.12 points lower at 15,880.33 after increasing 1.9% on Wednesday. The China Enterprises Index in Hong Kong dropped 1.7% to 10,152.8 points, its lowest closing level since Sept. 2. The Hang Seng Index dipped 0.9% to 22,787.3.
Stocks to watch
Macy’s, Inc. (NYSE:M)
Macy’s has decided to reduce its workforce by 2,500 and shutter five underperforming stores. Same store sales in November and December increased 3.6%, and the retailer narrowed its sales forecast for the second half of the year to a range of 2.8% to 2.9% from its previous outlook of 2.5% to 4% growth. Full fiscal profit outlook remained same at $3.80 to $3.90 per share. The stock climbed more than 5% in after-hours trading.
T-Mobile US Inc (NYSE:TMUS)
T-Mobil stated that its customer base expanded by 1.6 million in the fourth quarter to a total of 46.7 million. The company said that the increase in customer base was due to efforts to attract users from AT&T Inc via Un-carrier service plan.
Bed Bath & Beyond Inc. (NASDAQ:BBBY)
Bed Bath & Beyond’s third quarter profit increased to $237.2 million, or $1.12 per share, from $232.8 million, or $1.03 a share from the corresponding quarter of the previous year. Revenue increased 6% to $2.87 billion. Shares of Bed Bath & Beyond dropped over 8% in after hours of trading.
Alcoa Inc (NYSE:AA)
Alcoa is all set to post its fourth quarter earnings, and analysts expect the company to post earnings of 6% per share. The quarterly earnings of Alcoa would bear the impact of declining aluminum prices, foreign exchange headwinds on the stronger Australian dollar and decline in sales volume.
SUPERVALU INC. (NYSE:SVU)
Supervalu is expected to post third quarter earnings of $0.13 per share on revenue of $4.05 billion. Shares of the company surged 1.85% to $7.16 in after-hours trading. The company started a fair price promotion strategy in fiscal 2013, which is expected pay off in the long term. However, the strategy might put pressure on margins in the coming quarter.