business newsThe Markets Now: JC Penney Slashes More Jobs
By
Christopher Witrak
Mar 07, 2013 1:15 pm
Plus, Bank of America likely to increase dividends.
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Stocks continued their march higher today. The Dow (INDEXDJX:.DJI) closed at a new all-time high yesterday of 14,345.47 and increased today by 0.30% to 14,339.42. The S&P 500 (INDEXSP:.INX) increased 0.17% to 1,544.11, and the Nasdaq (INDEXNASDAQ:.IXIC) rose 0.17% to 3,227.87. For the week ending March 2, new jobless claims fell 7,000 to 340,000. The the four-week average of 348,750 is the lowest level seen since March of 2008. The four-week average for continuing claims also hit a recovery low, dropping 37,000 to 3.122 million.
Despite the drop in new unemployment claims, the Challenger Job-Cut report showed layoff announcements increased in February. From January to February, the number climbed from 40,430 to 55,356. JPMorgan (NYSE:JPM) caused a spike in the total after announcing last month that it would lay off 19,000 employees from its mortgage unit. The monthly report collects corporate layoff data from the state departments of labor.
Gallup reported the US Payroll to Population employment rate dropped to 43.3% from 43.6%. The ratio measures the number of full-time employees (defined as working more than 30 hours) over age 18 who work for an employer against the total US population. The percentage excludes self-employed individuals.
The US’ trade deficit widened more than expected in January to $44.4 billion from $38.1 billion in December 2012. A consensus estimate expected a deficit of $43.0 billion. Exports of industrial goods declined $2.6 billion, dragging down net exports, which registered a 1.2% decline in January after net exports grew 2.2% in December. January imports increased 1.8% after December imports dropped by 2.6%.
Nonfarm business productivity decreased an annualized 1.9%; the consensus estimate projected a 1.6% drop. Unit labor costs also exceeded expectations, growing by an annualized 4.6% rather than 4.4%.
The Bloomberg Consumer Comfort Index showed a reading of -32.4 and has gained 5.1 points over the past five weeks. The scale ranges from -100 to 100. This recent number is the highest reading this year, and Bloomberg believes that the recent rise in stocks have offset fears of sequestration and account for the gains in the index.
JC Penney (NYSE:JCP) shares increased for the first time in four sessions, rising 2.52% to $14.79. Reports have surfaced that the store cut 1,500 store-level department managers and merchandising positions. Last month, the store slashed another 300 positions at its headquarters in Plano, Texas.
Former JC Penney CEO Allen Questrom said in a telephone interview that current CEO Ron Johnson will be unable to turn the company around.
RadioShack (NYSE:RSH) spiked 5.21% today to $3.29.
Bank of America (NYSE:BAC) may raise its dividend along with the other large US banks after the Federal Reserve releases its stress-test results today, regardless of the central bank’s recommendations on dividend amounts. Shares of the bank increased 2.29% to $12.19.
Gap (NYSE:GPS) surprised investors today after the clothing retailer’s February results were leaked online. Net sales in February rose 11% to $966 million, and same store sales rose 3% in February. Investors sent shares up 3.71% to $35.74.
Valero (NYSE:VLO) has completed maintenance work at its Texas City refinery and increased production back to planned rates. Shares of the oil company dropped 2.71% to $46.33.
Twitter: @ChrisWitrak
Despite the drop in new unemployment claims, the Challenger Job-Cut report showed layoff announcements increased in February. From January to February, the number climbed from 40,430 to 55,356. JPMorgan (NYSE:JPM) caused a spike in the total after announcing last month that it would lay off 19,000 employees from its mortgage unit. The monthly report collects corporate layoff data from the state departments of labor.
Gallup reported the US Payroll to Population employment rate dropped to 43.3% from 43.6%. The ratio measures the number of full-time employees (defined as working more than 30 hours) over age 18 who work for an employer against the total US population. The percentage excludes self-employed individuals.
The US’ trade deficit widened more than expected in January to $44.4 billion from $38.1 billion in December 2012. A consensus estimate expected a deficit of $43.0 billion. Exports of industrial goods declined $2.6 billion, dragging down net exports, which registered a 1.2% decline in January after net exports grew 2.2% in December. January imports increased 1.8% after December imports dropped by 2.6%.
Nonfarm business productivity decreased an annualized 1.9%; the consensus estimate projected a 1.6% drop. Unit labor costs also exceeded expectations, growing by an annualized 4.6% rather than 4.4%.
The Bloomberg Consumer Comfort Index showed a reading of -32.4 and has gained 5.1 points over the past five weeks. The scale ranges from -100 to 100. This recent number is the highest reading this year, and Bloomberg believes that the recent rise in stocks have offset fears of sequestration and account for the gains in the index.
JC Penney (NYSE:JCP) shares increased for the first time in four sessions, rising 2.52% to $14.79. Reports have surfaced that the store cut 1,500 store-level department managers and merchandising positions. Last month, the store slashed another 300 positions at its headquarters in Plano, Texas.
Former JC Penney CEO Allen Questrom said in a telephone interview that current CEO Ron Johnson will be unable to turn the company around.
RadioShack (NYSE:RSH) spiked 5.21% today to $3.29.
Bank of America (NYSE:BAC) may raise its dividend along with the other large US banks after the Federal Reserve releases its stress-test results today, regardless of the central bank’s recommendations on dividend amounts. Shares of the bank increased 2.29% to $12.19.
Gap (NYSE:GPS) surprised investors today after the clothing retailer’s February results were leaked online. Net sales in February rose 11% to $966 million, and same store sales rose 3% in February. Investors sent shares up 3.71% to $35.74.
Valero (NYSE:VLO) has completed maintenance work at its Texas City refinery and increased production back to planned rates. Shares of the oil company dropped 2.71% to $46.33.
Twitter: @ChrisWitrak
No positions in stocks mentioned.
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