Bernanke trumps China. Mr. Bernanke's reappointment for a second term certainly trumps the 2.6 percent decline in the Shanghai Index.
China's drop barely elicited a shrug from traders, since the Shanghai Index had risen 7.5 percent in the prior 3 sessions and other global markets have been on either side of a 1 percent rise or decline this morning.
1) Borders Group reported a bigger-than-expected Q2 loss (loss of $0.21 vs. loss of $0.16 est.). Cost cuts couldn't offset steep declines in sales. During the quarter, comp. store sales plunged 17.9 percent at its Borders superstores, while same store sales at its Waldenbooks chain fell 10.8 percent.
Despite inline or better-than-expected results today, company outlooks are still overshadowed by uncertainty and caution.
2) Burger King up 4 percent after topping earnings Q4 estimates despite lower margins and a 2.4 percent decline in same-store sales.
The fast food chain isn't providing any 2010 earnings guidance due to "continuing consumer uncertainties," but it expects comp. store sales to be "soft" during at least the next six months. Additionally, Burger King is cutting its new restaurant openings in 2010 due to the economic slowdown.
3) Staples is down 4 percent after meeting Q2 earnings estimates. Same-store sales fell 5 percent, and like Home Depot and Lowe’s sales of higher-priced items like furniture and business machines remained soft.
The office supplies retailer stated it is not issuing Q3 or full year guidance.
4) Some good news at Chico’s. Shares up 1 percent pre-open after Q2 earnings were inline with estimates. Same-store sales for the apparel retailer ROSE 1.3 percent, as a result of stronger sales at its White House Black Market stores. Gross margins improved too, due to lower markdowns at its Chico's stores and slightly higher markups at its White House Black Market chain.
After a disaster few years (2006-2008) Chico’s has been a real bright spot in the retail group this year.
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