Back to the grind.
Here's what you're missing on Monday, Sept. 10.
Apple's Big Day is On the Horizon
RealMoney contributor Stephen Guilfoyle breaks down how investors should be trading Apple (AAPL) heading into its iPhone unveiling, which is expected to take place on Wednesday.
Now, scuttlebutt has it that Apple will introduce three iPhone models—a 5.8-inch and 6.5-inch OLED model, as well as one with a 6.1-inch LCD screen. Personally, I wouldn't know an OLED screen from a screen door, but I do know how to read a chart, and it's obvious that investors have run Apple's stock price up in anticipation of this event.
However, it's also obvious that trade-war jitters have impacted Apple shares over the past week. Apple made a government filing Friday that outlined potential damages that the firm (and ultimately the U.S. consumer) could face from President Donald Trump's proposed new tranche of $200 billion in tariffs on Chinese imports. For those unaware of it, Apple manufactures most of its products in China, including the iPhone's various iterations.
A longer version of this column appeared at 7:35 a.m. ET on Real Money, our premium site for active traders. Click here to get great columns like this from Stephen "Sarge" Guilfoyle, Jim Cramer and other experts each trading day.
If you're interested in trading Apple before Wednesday, here's Guilfoyle's column.
Sears Is in for a Rude Awakening
So much so that it renewed debate on the chain's ability to survive deep into 2019. Sears (SHLD) shares crashed more than 15% on Monday on no apparent news. Over the last three months, Sears stock has plunged 41%.
Sears has not set a date for its second-quarter earnings release, per its investor relations page. The company would be among the last retailers to announce results for the quarter, TheStreet's Brian Sozzi reported.
Sears didn't respond to a request for comment, either. Ouch.
Sears chairman and CEO Eddie Lampert wrote a letter to the board in mid-August offering to buy what's left of the Kenmore home appliances business. In the letter, Lampert offered several clues Sears could be headed into its final holiday season amid a major cash crunch.
Keep in mind for the 13 weeks ended May 5, Sears chewed up $1.2 billion in cash just to support its operations that continue to hemorrhage money. The company ended the first quarter with a mere $466 million in cash ahead of shipments of the all-important back-to-school, early fall shopping seasons. That's a poor position to be in for a retailer of Sears' size.
Oof. That can't be good.
Did Jack Ma Mistime His Departure from (BABA) ?
Today is certainly cruel for Alibaba's investors. But what about tomorrow and the day after tomorrow?
Jack Ma, the billionaire co-founder of China's e-commerce powerhouse, once famously said words to that effect in describing the challenges of building up a significant business. ("Today is cruel. Tomorrow is crueler. And the day after tomorrow is beautiful," were his exact words)
Watching the market reaction to news of his departure from Alibaba, which started in an apartment in the city of Hangzhou and grew to be worth nearly half a trillion dollars, Ma certainly seems to have at least a portion of that famous observation correct: Alibaba's U.S.-listed shares slumped more than 3% in morning trading in New York on Monday.
Ma, who will remain on the Alibaba board until 2020, will hand the position of executive chairman to current CEO Daniel Zhang, who has largely steered the group's international expansion since taking over as CEO in 2015. Zhang, 46, is relatively unknown to many investors, but has led the group's investor conference calls for a number of years and is credited with the creation of the company's "Single's Day" sales that is now the world's biggest annual online shopping event, raking in more than $25 billion in sales on a single day last November.
TheStreet's Martin Baccardax examined the repercussions of Ma's planned departure.
The Chinese government considers ICT (information and communications technology enterprises) as part of a "strategic sector" that will drive economic growth over the next 10 years, as well as one in which it has invested significant state capital and influence on behalf of state-owned companies.
So ... is Ma choosing to leave Alibaba at the perfect time, or should he have waited? Guess you'll have to actually read Baccardax's story if you want to find out.
Hey, I warned you that these are summaries.
That's the news of the day. Stick with TheStreet for all of your stock market news.
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