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Last Call: There's A Sale At Penny's!

JC Penny
Ryan T. Conaty | Bloomberg | Getty Images
JC Penny

(Reading Newspaper Headlines)

Rex Kramer: Passengers certain to die!

Steve McCroskey: Airline negligent.

Johnny: There's a sale at Penney's!

-Airplane

-Yes, Johnny, there's a sale at Penny's: the stock. No coupons needed as shares fall 20% tdy, its worst day ever (going back to 1929), wiping out $1.43B in market share.

Robert Hum's Market Musings

  • Stocks fail to hold gains as Europe weighs again
  • Dow closes at a 4-month low; S&P, Nasdaq post lowest close since early February
  • S&P Tech sector closes down for record 10th straight day
  • Gold enters bear territory - falls 20% from record intraday high hit back in September
  • Crude oil settles below $93 for first time since November 2
  • U.S. Dollar Index rises for record 13th consecutive day

What Wall Street Is Saying Tonight

All It Takes Is a Greek Story to Further Scare Markets/CNBC - Patti Domm: “Greece's weakened banks are relying on emergency liquidity assistance and will not be able to use the European Central Bank's conventional monetary policy operations until they recapitalize. Not surprising, but a Reuters headline Wednesday morning saying that the ECB halted monetary policy operations to certain Greece banks rattled markets and drove the euro lower. The stock market's immediate response was to sell off, as traders puzzled over whether it meant the ECB had just cut off Greece. The temporary confusion also came as investors are warily watching the pressure on Greek banks from a large amount of customer withdrawals.”

David Einhorn and the PowerPoint Speed Read/NY Times: Azam Ahmed & Kevin Roose: “The crowd began to buzz just before David Einhorn took the stage on Wednesday at the Ira Sohn Conference. Cellphone screens cast a fluorescent glow in the packed auditorium, as investors eagerly awaited the hedge fund managers latest tip. An image of Bart Simpson standing before a chalkboard was projected onto a large screen with the words "I will not pretend to be David Einhorn on earnings calls."

Heard on the Street:Three Fears for Facebook as IPO Approaches/WSJ - Rolfe Winkler: "If investors needed a reminder not to chase Facebook shares, they got three big ones over the past week. General Motors , major brand advertiser, plans to stop paying for Facebook ads. Some early investors will sell a lot more shares in the IPO than they previously planned. And the growing use of Facebook on mobile devices could, for the moment, eat away at the company's revenue."

Ad execs say jury still out on Facebook as medium/Reuters - Nicola Leske & Kate Holton: "...experts say Facebook has to step up its game in explaining how it can be useful and effective for companies to incorporate the site in their campaigns. "When I look at the GM news it is a little concerning," said Bernie Williams, a money manager for USAA. "They have to make that switch, from display to how to sell a product without ruining that social interaction. That could be a tough trick although they have 60 percent of the world's population."

Bankers to get bonus bumps in 2012: survey/Reuters - Lauren Tara laCapra: "Big banks are expected to use a larger portion of profits for employee bonuses this year, despite extensive job cuts and a recent outcry from shareholders over excessive pay, according to a closely watched survey of Wall Street compensation. Bonuses are expected to rise 5 percent to 15 percent for employees across the financial services industry, with fixed-income traders projected to get the biggest bonus increases, according to forecasts by the compensation consulting firm Johnson Associates."

Coty Is Said to Have Picked Underwriters for I.P.O./NY Times - Michael J/ De La Merced: “Two days after withdrawing its $10.7 billion bid for Avon Products , Coty appears to be moving quickly with a Plan B. The cosmetics products company has selected Bank of America, Merrill Lynch and JPMorgan Chase as the lead underwriters for an initial public offering, people briefed on the matter said on Wednesday."

J.C. Penney stock has worst fall ever/Reuters: “Shares in J.C. Penney plunged nearly 20 percent on Thursday, their worst decline ever, wiping away $1.43 billion in market value a day after the retailer shocked Wall Street with a much worse-than-expected drop in sales and by stopping its dividend.”

Leading insurer pays $109M for dog bite claims/AP - Sue Manning: “Dog bites man does not get a lot of attention in the news, but it costs insurance companies hundreds of millions in claims every year. State Farm Insurance, one of the nation's largest home insurers, paid more than $109 million on about 3,800 dog bite claims nationwide last year, spokesman Eddie Martinez said Wednesday. In 2010, there were about 3,500 claims and $90 million in payouts.”

Tomorrow's Earnings

Before the bell:

Wal-Mart, Dollar Tree, Gamestop, Advance Auto Parts

After the bell:

Aeropostale, Applied Materials, Autodesk, Gap, Intuit, Marvell Tech., Salesforce.com

Tomorrow's Economic Data

830 Initial claims

1000 May Philadelphia Fed Survey

1000 Apr Leading Indicators

1300 10-YR TIPS Auction

1600 Fed Balance Sheet

1600 Money Supply

Tomorrow on CNBC

Michael Lazerow, Buddy Media CEO (630a)

R Seetharaman, Doha Bank CEO (650a)

Paul Farr, PPL CFO (730a)

Steve Bartlett, Financial Services Roundtable (740a)

Tim Pawlenty, Fmr Minnesota Governor (810a)

Chris Lindland, Betabrand CEO (1000a)

Joshua March, Conversocial CEO (1000a)

Chad Dickerson, Etsy CEO (1000a)

Duncan Niederauer, NYSE Euronext CEO (340p)

Scott Davis, UPS CEO (340p)

Gov Sean Parnell, R-AK (700p)

Follow Tom Rotunno on Twitter: @tomrotunno

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AVP
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GM
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