Chinese trade negotiators suddenly canceled a visit to meet U.S. farmers after they wrapped up trade talks in Washington this week.Marketsread more
Blackstone Executive Vice Chairman Tony James says he's less optimistic now than before that the U.S.-China trade war could be resolved, but even a smaller deal could help...World Economyread more
The Pentagon will deploy U.S. forces to the Middle East on the heels of the attack on Saudi Arabian oil facilities, United States Secretary of Defense Mark Esper announced...Defenseread more
President Trump also said he is "not looking for a partial deal" with Beijing, moving away from his suggestion last week that he would consider an "interim deal."Politicsread more
Progress on trade talks will determine how far market will move above new highs.Trader Talk with Bob Pisaniread more
"Sure, the trade war's taking its toll on business ... it's just not taking its toll where it was supposed to," Jim Cramer says.Mad Money with Jim Cramerread more
Joe Biden called on President Donald Trump Friday to release the transcript of a call with a foreign leader that is the subject of a whistleblower complaint. Biden described...Politicsread more
For investors taking a breather from the chaos in August, buckle up as the market is about go crazy again, Goldman Sachs warned.Marketsread more
Palantir Technologies is targeting a valuation of at least $26 billion in a private fundraising round, the first for the Peter Thiel-backed data analytics startup in four...Wall Streetread more
Michael Pack, a conservative filmmaker linked to Steve Bannon, saw at least $1.6 million in donations from his nonprofit sent into the coffers of his independent production...Politicsread more
The New England Patriots released Antonio Brown just 11 days after signing the wide receiver. The NFL Super Bowl champion team initially had kept him in the face of a rape...Sportsread more
Macy's stock will fall as the company's physical store sales deteriorate, according to one top Wall Street firm.
Morgan Stanley lowered its rating to underweight from equal weight for Macy's shares, predicting the retailer will report lower-than-expected earnings this fiscal year.
"Macy's continues to undergo core operating challenges, similar to peers in the department store space. Despite closing stores proactively, store-only comps remain negative and we forecast them to remain so in the future," analyst Kimberly Greenberger wrote in a note to clients Thursday.
"Expense cuts, real estate monetization, and secondary growth initiatives are encouraging, but we think the market needs to see core retail EBIT stabilization and a return to strong cash flow generation in order to become more constructive on the stock," she wrote.
The company's shares closed down 2.4 percent Thursday after the report.
Greenberger reduced her price target for Macy's shares to $25 from $27, representing 17 percent downside to Wednesday's closing price.
The analyst said Macy's return on invested capital (ROIC), which measures how efficiently a company is profitably allocating its resources, has declined by 4.3 percentage points from 2014 to 2016. She noted ROIC also fell during the first three quarters of 2017 before rebounding in the fourth quarter due to real estate gains.
"We expect ROIC to deteriorate in 2018 after 1Q and thus expect the stock price to decline once again. Furthermore, Macy's increased reliance on private label credit card income and real estate gains masks the underlying deterioration in core retail EBIT (-63% since 2014)," she wrote.
The analyst said she is "cautious" on the department store subsector, pointing to competition from online retailers and lower apparel prices.
Greenberger estimates Macy's will generate earnings per share of $3.55 in its fiscal 2019 versus the Wall Street consensus of $3.61.
— CNBC's Michael Bloom contributed to this story.