It seems to me the whole rally is based on a belief the Fed is going to step in and infuse the economy with lliquidity, muses Brian Kelly. But according to CNBC's Steve Liesman, markets might be getting ahead of themselves in anticipating some bold new moves from the Fed. I’m getting a little more cautious.
And if you’re looking for weak consumer trades I’d look at TJX as well as GameStop where video game players can trade in their games, Kelly says.
AFTER HOURS ACTION: BARNES & NOBLE
Shares of Barnes & Noble surged 26% in extended trade after the world's largest specialty bookseller, said it was reviewing a possible sale as its board believes its shares are significantly undervalued.
Specifically, the company announced formation of a special committee of four independent directors to consider all options for increasing shareholder value.
The company's founder and top shareholder Leonard Riggio has told the board he would consider being part of a wider investor group that could buy the company.
Barnes & Noble has come under increasing pressure from larger retail rivals including Amazon and Walmart . Its sales have also suffered as more readers turn to digital books on devices like Amazon's Kindle and Apple's iPad.
What should you make of it?
The adoption of the e-reader has been so fast, reminds Karen Finerman. It can’t bode well for a brick and mortar such as Barnes & Noble.
AFTER HOURS ACTION ELECTRONIC ARTS
In extended trade shares of Electronic Arts gained as much as 5% after the company reported better-than-expected results, led by sales of "FIFA" soccer. The company also reaffirmed its full-year outlook.
Looking at the numbers, Electronic Arts reported a net profit of $96 million, or 29 cents a share in the fiscal first quarter ended June 30, versus a year-ago net loss of $234 million or 72 cents a share.
Excluding items, the company posted a loss of 24 cents a share, better than the consensus analyst estimate for a loss of 35 cents a share, according to Thomson Reuters I/B/E/S.
What’s the trade?
I have a client that’s always bullish ERTS into the holiday season, says Steve Grasso. He likes it up to $18.
AFTER HOURS ACTION: PRICELINE
Shares of Priceline surged 15% in the aftermarket after the online travel site posted quarterly profit above analyst forecasts as bookings jumped 43 percent, led by international bookings and hotel reservations.
Looking at the numbers, Priceline said its second-quarter net profit was $115 million, or $2.26 per share -- up from $67 million, or $1.38 per share, a year earlier, when the travel industry was in the grip of an economic downturn.
Excluding one-time items, Priceline's profit was $3.09 per share -- above analysts' average estimate of $2.65, according to Thomson Reuters I/B/E/S.
What should you make of it?
I think Priceline is sitting in the sweetspot allowing Americans to book short vacations at inexpensive prices, says Anthony Scaramucci.