Market Minute: Home Depot Earnings Soar as J.C. Penney Sinks - Again

Earnings from big retailers will drive the market today. That and more is what's in business news Tuesday.

Stocks extended last week's big losses Monday. The Dow Jones industrial average (^DJI) fell 70 points, its fourth straight decline, and the Dow's longest losing streak this year. The Standard & Poor's 500 index (^GPSC) lost 9, and the Nasdaq composite index (^IXIC) fell dropped 13 points. Investors are rattled by rising interest rates and tumbling prices in emerging markets.

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Home Depot's (HD) quarterly earnings rose by a better-than-expected 17 percent and the do-it-yourself retailer raised its outlook for the rest of the year, led by the housing market recovery.

J.C. Penney (JCP) continues to bleed money. It posted another big loss, but its results weren't as bad as some forecasts, and the stock is set to rally.

Shares of electronics retailer Best Buy (BBY) are also set to soar after earnings easily topped expectations. And teen-oriented retailer Urban Outfitters (URBN) posted a 25 percent earnings gain, topping expectations.

Another day, another investigation into JPMorgan Chase (JPM). The Wall Street Journal reports that the Justice Department is probing whether the company manipulated U.S. energy markets. The bank settled similar charges with federal regulators last month by agreeing to pay more than $400 million.

Career Education (CECO) has agreed to reimburse $9 million to 5,000 former students. New York's attorney general had accused the for-profit education company of inflating its rate of success in placing graduates into jobs.

Barnes & Noble (BKS) has kissed and made up with Simon & Schuster, the publishing unit of CBS (CBS). The two companies have been battling all year over the financial terms on issues like e-books and in-store promotions. As a result, the bookstore chain has limited the number of Simon & Schuster titles available in its stores. Barnes & Noble is also out with earnings today.

Struggling online retailer (OSTK) says it will permanently match book prices offered by (AMZN). Overstock will also offer a 15 percent rebate on books to members of its loyalty club.

-Produced by Drew Trachtenberg.

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Earnings are down but JCP stock goes up. People are seeing the same that I am, their stock will go up based on school sales and upcoming holiday sales.

August 20 2013 at 2:47 PM Report abuse -2 rate up rate down Reply

Maybe Obama can give Ron Johnson an important position in the administration.

August 20 2013 at 12:52 PM Report abuse -1 rate up rate down Reply

Another distortion of the data. People are unable to afford to have work done on their homes and so they opt to buy materials and do the job themselves. All this shows is that people are in a downward spiral in spending. It fits closely with the fact that the average car on American roads is now 12 years old. Why? The cash is short and they are hanging onto what they have. Home depot is just another abomination known as a monopoly. They along with Lowe's have driven every small mom and pop shop out of business in this country.

August 20 2013 at 11:23 AM Report abuse +1 rate up rate down Reply

I wonder how many small independent hardware stores closed with the owners hopes destroyed, to make these record profits for the few in Atlanta Georgia that own Home Depot! I HATE monopolies, but I'm a dying breed!!!

August 20 2013 at 11:17 AM Report abuse rate up rate down Reply

>"Soaring sales at Home Depot signals good news"<

Yep. Things are getting better. I spent $2.39 there yesterday on parts to repair a window screen. It really needs replacing, but I can't afford that.

August 20 2013 at 10:46 AM Report abuse +4 rate up rate down Reply

I don't know how sales are soaring at Home Depot. The one near me is fairly new and large, yet they never have more than one check out lane open, are constantly out of items, and the customer service counter rarely has someone at it. The only area that seems to be staffed is the returns area!

August 20 2013 at 10:19 AM Report abuse +1 rate up rate down Reply

Retailers like Home Depot and Lowes always post better results in summer months as people do landscaping, remodeling etc. Every year their summer results are up. Its a seasonal thing.

JCP decline tho is concern as this time of year people are buying for back to school. JCP has lost lot of customers (me included) due to their liberal move and pro-gay agenda.. It will be hard for JCP to regain those customers as we have already found other retailers we prefer.

August 20 2013 at 10:18 AM Report abuse -1 rate up rate down Reply
2 replies to dkelmstra's comment

LOL.... Gay See Penny! That fits!

August 20 2013 at 10:39 AM Report abuse -5 rate up rate down Reply

Meanwhile, Home Depot is considered one of the most gay-friendly retailers in the country, while JCPenney contributes 3 times as much funding to Republican candidates as Democrats.

August 20 2013 at 5:55 PM Report abuse +2 rate up rate down Reply

Love to see Soros & Goldman Sucks money circling the drain with Jippy Penney!

August 20 2013 at 9:35 AM Report abuse +2 rate up rate down Reply
1 reply to Larry's comment
Jacob Guiness

MOre like sore-os or sorosis!

August 24 2013 at 6:45 AM Report abuse rate up rate down Reply