This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Market Preview: Sick of the Cliff?

Higgins offered up two reasons though why going over the cliff mights not be the end of the world for equities.

"Of course, if the Democrats and Republicans fail to reach the sort of compromise that we foresee, then there could indeed be a major and lasting reaction in the stock market," he said. "But even under this scenario, the impact on the stock market might not be that dramatic for two reasons. First, not all investors pay the top rates of tax that Obama wants to see rise. And second, a growing share of US equities is sheltered from tax."

As for Friday's scheduled news, J.C. Penney (JCP - Get Report) is slated to report its third-quarter results before the opening bell.

The department store operator, which is in the midst of a rocky turnaround effort under the leadership of former Apple exec Rob Johnson, is anticipated to post a loss of 7 cents a share on revenue of $3.27 billion. In the same period a year earlier, J.C. Penney earned 11 cents a share on revenue of $3.99 billion.

Since coming on board roughly a year ago, Johnson has sought to revamp the J.C. Penney brand, emphasizing low regular prices (no discounts) and a heightened fashion sense but the results so far have been a borderline disaster, as evidenced by a 21.7% drop in same-store sales in the second quarter.

The stock fell sharply on Thursday ahead of the numbers, losing 5% to close at $21.69. At that level, it's down 50% since hitting a 52-week high of $43.18 on Feb. 19. The majority of the sell side is bearish with 15 of the 21 analysts covering the shares at either hold (12) or underperform (3), and the median 12-month price target sitting at $25.

Check out TheStreet's quote page for J.C. Penney for year-to-date share performance, analyst ratings, earnings estimates and much more.

Other companies reporting quarterly results on Friday include CompuCredit (CCRT), E.W. Scripps (SSP), Energizer Holdings (ENR), Federal Signal (FSS), Foster Wheeler (FWLT), Ivanhoe Energy (IVAN), MGIC Investment (MGIC), NutriSystem (NTRI), and Warner Chilcott (WCRX).

Also on the corporate front, the pullback in Apple (AAPL - Get Report) becomes a bigger topic for the broad market with every passing day's decline. The shares closed Thursday at $537.65, down 3.6% as it fell for a fifth straight session. Since hitting an all-time high of $705.07 on Sept. 21, Apple has lost nearly 24%.
2 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $109.27 0.00%
DIS $100.97 0.00%
GRPN $4.25 0.00%
JCP $9.68 0.00%
FB $88.26 0.00%

Markets

Chart of I:DJI
DOW 16,102.38 -272.38 -1.66%
S&P 500 1,921.22 -29.91 -1.53%
NASDAQ 4,683.9190 -49.5780 -1.05%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs