Market Minute: J.C. Penney's Post-Ron Johnson Earnings Confirm Grim Warning
Two big name companies have fallen on hard times, and the numbers tell the story.
The Dow Industrials fell 42 points yesterday, the S&P 500 lost 8, and the Nasdaq fell 6.
J.C. Penney (JCP) had warned that its quarterly results would be weak. They were, and then some. The retailer posted a loss of $348 million, more than double the deficit of a year ago. And sales tumbled 16 percent. The company blames the failed policies of ousted CEO Ron Johnson. It is now in the process of returning to its prior use of sales and discounts. Penney shares have lost 30 percent over the past year.
Dell's (DELL) net tumbled 79 percent, falling short of Wall Street's already lowered expectations. It's the company's sixth straight decline in quarterly earnings, as the PC market continues to suffer due to the growing popularity of smartphones and tablets. Company founder Michael Dell is trying to take the company private in a deal valued at more than $24 billion.
Two other tech companies, Autodesk (ADSK) and Aruba Networks (ARUN), are set to slide after posting disappointing results. Autodesk also forecast results for the current quarter that are below Street estimates.
Home furnishings retailer Tuesday Morning (TUES) fired its chief executive nearly a year ago. Now she's suing the company, claiming discrimination after being diagnosed with breast cancer. Tuesday Morning says the charge is without merit.
And tomorrow is the one-year anniversary of Facebook's (FB) IPO. It was marred by a major technical glitch at the Nasdaq, and a quick drop in price. Shares were listed at $38; they closed yesterday at about $26.
Also tomorrow, diehard gamers will get their first look at Microsoft's (MSFT) new Xbox video game system. According to NPD, videogame sales tumbled 25 percent last month.
-Produced by Drew Trachtenberg