The trucks are gone out front of the New York Stock Exchange. Two weeks ago, Broadway was a sea of TV trucks...Friday, there is a lone NBC truck on a side street.
What happened? Has the media lost interest in the global economy? In stocks? In jobs? Of course not. But try being a general news director—what is it they are going to say they didn't say two weeks ago?
Can you see the reporter on the street in front of the NYSE on the 7 a.m. broadcast: "The problem is, Europe has too much debt and the political leadership there is split along north-south lines, and in the United States the debt reduction process is bogged down over the Really Big problems of Medicare, Medicaid, and Social Security. Back to you, Sue."
Easier to just do a reader.
1. The Dow Jones Industrial Average and S&P 500 are only down 2 percent to 3 percent this week, but looking beyond those two indices, the week’s damage is quite evident. Dow Transports down 7 percent (new low), Germany down 10 percent (new low), Italy down 8 percent, U.K. down 6 percent, Spain down 6 percent. (European banks are at 29-month lows.)
2. Gapbeats estimates by 2 cents after reporting better-than-expected sales. Still however, comps fell 2 percent on weakness at Gap stores (down 3 percent) and Banana Republic (down 2 percent). Guidance for the year is reaffirmed, but it’s quite cautious ($1.40 a share to $1.50 a share, mostly below $1.50 a share consensus).
3. ANN Inc. —Ann Taylor, why did they change their name? And to ALL CAPS? What's next? Greek letters?—also topped estimates by 2 cents on a stronger-than-expected 8.6 percent jump in comps thanks to strength in outlet store and website sales at its Ann Taylor and LOFT apparel brands. That offset fairly stagnant in-store comps at its Ann Taylor stores. For the current quarter, the company sees comps rising at a mid-single digit rate, with total revenues coming in slightly higher than the Street’s current consensus.?
4. Barnes & Noble disclosed that Liberty Media has abandoned its $1 billion bid for 70 percent of the company that it submitted back in May. Instead, Liberty Media will make a $204 million investment in the bookseller though the purchase of preferred stock, providing capital to the struggling retailer. Those shares would give it a 17 percent stake in Barnes and Noble once they’re converted into 12 million shares at $17 each.