Morning Market Roundup: JC Penney Profits Freefalling, Unemployment Stagnant, April Home Foreclosures
- Posted on May 17, 2012 at 9:28am by
Becket Adams
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Here’s what’s important in the business world this morning:
JC Penney: J.C. Penney on Tuesday reported a larger-than-expected first-quarter loss.
Revenue dropped 20 percent to $3.15 billion for the quarter as customer traffic slipped 10 percent. Meanwhile, revenue at stores opened at least a year – a figure used to measure a retailer’s health – was down 18.9 percent. That’s a much steeper fall than the 11.4 percent drop Wall Street was expecting.
Penney shares soared 24 percent to about $43 after CEO Ron Johnson announced the company’s new pricing strategy in late January. But since the middle of February – after the new pricing was rolled out in stores- investors have sent shares back down to around $34. After Penney reported the disappointing first-quarter results after the markets closed on Tuesday, its shares fell 12 percent to $29.30 in after-hours trading.
Of course, courting two nationwide boycotts from conservative mothers probably didn’t help anything either.
U.S. Unemployment: The number of people seeking unemployment benefits was unchanged last week.
The Labor Department said Thursday that weekly unemployment aid applications stayed at a seasonally adjusted 370,000, the same level as the previous week. The four-week average, a less volatile measure, fell for the second straight week, to 375,000.
Applications for benefits surged in April to a five-month high of 392,000. The pace of hiring slowed sharply in March and April, to an average of 135,000 jobs per month. That raised fears that the job market is weakening.
U.S. Futures Down: Stock futures are falling, with unease about Europe overshadowing what is expected to be another positive U.S. employment report and also some big numbers from the world’s largest retailer.
Dow Jones industrial average futures are down 32 points to 12,542. Standard & Poor’s 500 futures are down 4.9 points to 1,317.5. Nasdaq composite futures are sliding 10.75 points to 2,546.75.
Economists forecast that weekly applications for U.S. unemployment benefits fell by 2,000 to a seasonally adjusted 365,000, according to a survey by FactSet. The Labor Department will release the report at 8:30 a.m. Eastern time Thursday.
Still, economic uncertainty is prompting continued caution from U.S. consumers, and a heightened emphasis on bargains from Wal-Mart Stores Inc. is paying off. The company is posting a 10.1 percent jump in first-quarter profit.
Home Foreclosures: National foreclosure trends took a positive turn in April, as the number of homes seized by banks declined and fewer properties entered into the foreclosure process.
But state-level data point to potentially more home repossessions ahead in Florida and many of the 25 other states where courts are required to sign off on foreclosures.
All told, the number of U.S. homes taken back by lenders in April declined 7 percent from March, the third consecutive monthly decline, foreclosure listing firm RealtyTrac Inc. said Thursday. Home repossessions fell 26 percent versus April last year.
The number of homes that lenders placed on the foreclosure path last month also declined, falling 4 percent from March and 2 percent from April 2011, the firm said.
The Associated Press contributed to this report.
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A Doctors Labor Is Not My Right
Posted on May 17, 2012 at 4:22pmJust wanted to let everyone know that Ron Paul is still running for President.
See here.
Ron Paul Has Not Suspended His Campaign
Report Post »http://www.youtube.com/watch?v=SzeoVUo1QCA
Gonzo
Posted on May 17, 2012 at 2:00pmJC Penney better star selling rainbow flags.
Report Post »budzy1911
Posted on May 17, 2012 at 4:12pmI know we stopped going – there are other stores lined up out there that are willing to take my agenda without shoving an agenda in my face. So long JC Penny – it was nice knowing you. Maybe they can join K-Mart and push an agenda together….
Report Post »Steve28
Posted on May 17, 2012 at 11:45amYes, JC Penny should have done some research. Their market was not gay mom’s, but Mom’s with kids that make money. Very poor stategy on Johnson part and could have done long term harm to the brand. Housing still a long way off from a bottom. They should just clear out the junk and get it to the bottom by allowing investor to buy pools of loans fix up the property not too far gone and put renters in them. That would clear off quite a few since rents are going up.
Report Post »teddrunk
Posted on May 17, 2012 at 11:38amWhat’s next for JCP? Trans-gender Moms? Cross-Dressing Moms? Why not just combine the different clothing department JCP. One big “anything goes” department. Pet supplies for it’s bestiality customers? Don’t forget the S&M crowd JCP. How about NAMBLA for Father’s Day JCP.
Report Post »Inlandmar2
Posted on May 17, 2012 at 10:59amOf course home foreclosures will fall. At some point in time, there won’t be any homes to foreclose because all of the sub prime “deadbeats” will have been weeded out. The real problem is how will the inventory of foreclosed homes be reduced? This will affect real estate prices and new home starts for years to come.
Report Post »A Doctors Labor Is Not My Right
Posted on May 17, 2012 at 3:58pm@Inlandmar2,
“The real problem is how will the inventory of foreclosed homes be reduced? This will affect real estate prices and new home starts for years to come.”
The problem is that so many people still believe that real estate prices should be kept from falling. The prices were bid up too high via an artificial expansion of credit.
People think their houses are worth more than they are, and nobody is entitled to a particular price for their house. Also, government gets in the way of the free market and harms consumers.
See here.
Defending the Undefendable (Chapter 20: The Slumlord) by Walter Block
Report Post »http://www.youtube.com/watch?v=RhURIycWHRI
dabbob
Posted on May 17, 2012 at 10:52amHow‘s that Ellen Degenerate thing working out Penny’s? LOL
Report Post »jg2pto
Posted on May 17, 2012 at 10:25amAnyone got a link to some figures for the total amount of homes foreclosed on since 2007 or so?
Report Post »Redmanblackdog
Posted on May 17, 2012 at 10:14amI used to shop at jcp, but I don’t anymore since I joined up with One Million Moms. Maybe the Millions of Moms that swore not to shop there are really making a difference. Let the 2% of gays support the store.
I won’t shop at jcp, home depot, starbucks or any other business that promotes homosexuality.
Report Post »IDONTTHINKSO
Posted on May 17, 2012 at 10:31amTo the point, very well said! I totally agree. Knew it soon as they evolved!
Report Post »FreedomWitness
Posted on May 17, 2012 at 10:09amSay goodbye to GAYCPENNY
Report Post »Optimist4now
Posted on May 17, 2012 at 10:05amBut the economy is getting better, right? The government is here to help us, right?
Report Post »lukerw
Posted on May 17, 2012 at 10:05amEveryone is waiting for… the EU shoe to Fall!
Report Post »Comeandtakeit
Posted on May 17, 2012 at 10:02amJ.C. Penney is catering in their advertising to every “type” of mom but the moms who actually would shop there. Their Mother’s Day flyer pictured above catering to “lesbian moms” also had “single mom”, “mom of color”, “foreign mom”, “mom of special needs child”, but not “mom of faith”. While some of all those other “typecast” moms might shop there, the majority of their client base is “other”, and is quietly voting with their purses. They think it is their pricing structure failing, but it is also their PC marketing emphasis that is failing. People are sick to death of being condescended to and agenda-forced with PC marketing programs.
Report Post »tamalezebra
Posted on May 17, 2012 at 9:58amWhat did they expect when they are catering to less than 10% of the population?
Report Post »FreedomWitness
Posted on May 17, 2012 at 10:09amIt’s less than 5%. Promoters of the homosexual lifestyle say that 5% of women are homosexual and 5% of men are homosexual (and even that is a wildly inflated number) therefore 10% of the population is homosexual. No that means that 5% of the total population, men and women are homosexual, not 10%.
Report Post »hi
Posted on May 17, 2012 at 10:10amI agree. (regarding JC Penny and Ellen Degeneres as their spokesperson)
Report Post »GrumpyCat
Posted on May 17, 2012 at 1:43pmFREEDOMWITNESS, your public education is showing.
5% of men, and 5% of women, is still 5% of men + women.
With these math skills its no wonder the world is in a mess.
Report Post »HKS
Posted on May 17, 2012 at 9:43amIn a bad economy people are only going to buy what they need and they really don’t need a lot of clothing. Clothing sales have be driven by a hording mentality as just something to do. That won‘t change until there is a more stable economy as it’s primarily a vanity thing.
Report Post »mizzouwendy
Posted on May 17, 2012 at 9:43amWe are in a stagnant economy……..mostly because business leaders do not know the future that this country will follow. With possible TAXMAGGEDON occuring in January and all the other issues we have facing us as a country, Obamacare, etc. business owners are not going to hire people until the future is a “bit” more clear. To much uncertainty right now………..guess what is certain is that OBAMA NEEDS TO GO HOME (wherever that is).
Report Post »Optimist4now
Posted on May 17, 2012 at 10:07amUnless there are some really big changes in November, I’m afraid the business future is all too clear.
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