Scalper1 News
Data on Friday showed retail sales rose 1.3% in April, their fastest clip in more than a year. You would never know it from looking at the week’s results among retail stocks. Earnings misses sent Fossil ( FOSL ) to a 31% loss. Nordstrom ( JWN ) tanked 17%. Macy’s ( M ) fell 15%. J.C. Penney ( JCP ) dropped 8%. All of that followed Tuesday’s news that antitrust concerns led Office Depot ( ODP ) and Staples ( SPLS ) to call off their proposed $6 billion merger. Staples ended the week with a 19% loss. Office Depot crashed 41%. Among IBD’s industry rankings, retail groups started the week on already-crumbling feet of clay. They ended the week much where they started, holding five of the 10 worst rankings among 197 groups tracked by IBD. Specialty-retail and dollar-store chains were the clear exception, both ending the week in the top 10. But one of the strongest moves among any industry last week came from the Internet retailers group. The 32-stock group rose 4% for the week, the third-best gain among IBD industries. This was primarily due to a healthy week for Amazon.com ( AMZN ). It rose more than 5% — its sixth gain in the past eight weeks. That hoisted the stock to a new high and well past a 603.34 buy point. The company on Tuesday announced a new, YouTube-like self-service streaming video platform called Amazon Video Direct. In addition, Sanford Bernstein upped its price target on the stock to 1,000 — 40% above where the stock was trading on Friday. Several other stocks in the group also posted gains: Etsy ( ETSY ) rose 4%. Wayfair ( W ) climbed 6%. Netherlands-based Cnova ( CNV ), a low-priced, thinly traded stock, had an outsize effect, surging 48% Thursday after France’s Casino Guichard announced it would take the company, a unit that it had spun off in 2014, private in a deal valued at $196 million, about $5.50 a share. China-based e-tailers sold off hard during the week. Alibaba Group Holding ( BABA ) eased a mere 2% for the week, leaving its cup-with-handle pattern intact. But JD.com ( JD ) — a juggernaut with nearly $29 billion in 2015 revenue — ended down 10% for its fourth straight weekly decline. Vipshop Holding ( VIPS ) slumped 5%. Jumei International ( JMEI ) stumbled 13%. E-Commerce China Dangdang ( DANG ) caved 16%. The three remain in deep declines. There were also some brutal reversals by U.S.-based companies. Stamps.com ( STMP ) surged 23% on a strong Q1 report, then reversed to a 1% loss. PetMed Express ( PETS ) spiked 24% following an apparently solid fiscal Q4 report. It reversed to a fractional loss for the week. On the stronger side, Shutterfly ( SFLY ) stood its ground, posting a flat week as it continues to trade sideways just above a cup-base buy point of 46.93. Company earnings are projected to spike 257% this year and 92% in 2017, despite expectations for losses in the next two quarters. Argentina’s MercadoLibre ( MELI ) also stood tough, ceding only a fraction. The stock showed little response, good or bad, to the impeachment of President Dilma Rousseff in Brazil, MercadoLibre’s largest market. Scalper1 News
Scalper1 News