The US Fed, as expected, passed the baton onto the European Central Bank to act and we will see exactly how serious the Europeans were about taking real action to save the Eurozone. Expectations have already been tapered this morning, but we still see futures here in the US higher in expectation of something happening in Europe. We think we may get a carrot thrown to us, but shall receive further talk as well and it is safe to say we shall receive more talk than action.
We have a ton of economic news out today, and it is as follows (data set - consensus):
Challenger Job Cuts - N/A
Initial Claims - 365k
Continuing Claims - 3298k
Factory Orders - 0.6%
Looking at Asian markets we see markets are mixed:
All Ordinaries - up 0.17%
Shanghai Composite - down 0.57%
Nikkei 225 - up 0.13%
NZSE 50 - up 0.95%
Seoul Composite - down 0.56%
In Europe markets are higher:
CAC 40 - up 0.15%
DAX - up 0.06%
FTSE 100 - up 0.35%
OSE - down 0.12%
The Facebook (NASDAQ:FB) IPO was a bust, and since the IPO shares have essentially traded lower with that being the trend except for a brief period when we saw a bounce around the $30/share level. Shares finished at $20.88/share yesterday after trading lower by $0.83 (3.82%) during the session on volume of 44.6 million shares. The stock closed at the low for the day, which was also a new 52-week low as well. Pressure is mounting on the company to perform to investors' expectations, and the lower this goes the more uncomfortable Zuckerberg and fellow Facebookers must be getting. One interesting fact is that Zuckerberg's sister sold her company to Google and now works there.
Frontier Communications (NYSE:FTR) rose once again yesterday with shares finishing up $0.42 (10.71%) to close at $4.34/share on volume of 50.4 million shares. The company's earnings beat on both the top and bottom lines, providing investors reason to cheer because this is one of the weaker players in the industry, but looks to be turning a corner now. This also appears to ensure that the dividend is safe for the immediate future, which has been the main attraction for the stock lately.
Knight Capital Group (NYSE:KCG) saw its shares plummet as a glitch in their trading platform affected trading of 150 stocks on the New York Stock Exchange. Of those stocks affected the exchange announced that they were going to cancel trades in 6 companies, so this was no little event. The company received tons of bad publicity and the stock closed at the low for the day, which was also a new 52-week low. Shares finished down $3.39 (32.82%) to close at $6.94/share with 63.9 million shares traded. The company has not really provided a detailed answer of what went wrong as of this writing, but we imagine that the SEC and possibly even Capitol Hill will begin investigating soon if they have not already.
Genworth Financial (NYSE:GNW) saw their shares trade lower once again as investors were left disappointed by the company's outlook and business plan moving forward. With volume of 36.1 million shares traded, investors pushed the shares down by $0.56 (11.11%) to close at $4.48/share which was the low for the day. The close was also a new 52-week low as well as investors reacted to the company stating that they were not ready to disclose their plan to boost the share price which has lagged the general market for some time.
Abercrombie & Fitch (NYSE:ANF) closed at $34.02/share after rising $0.22 (0.65%) in yesterday's session prior to releasing its numbers after the close. In after hours trading the shares were lower by $5.50 or 16.17% after the estimated earnings came in below expectations. Inventories are rising as consumers are not moved by the company's styles and the company will have to scale back store openings as they try to get a handle on the situation at hand. We have been bullish many retail names, but Abercrombie is a premium teen brand and has been out of style for some time now. We would play other teen retailers at this time if you wanted exposure and would stay away from here unless there was a dramatic turnaround both internationally and domestically.
Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.