JC Penney CEO Johnson Resigns, Stocks Continue Two-Day Rally
Today's financial recap and tomorrow's financial outlook.
US economic data was somewhat better, though today's reports don't generally have a major effect on market movement. The NFIB Small Business Optimism index fell to 89.5 from 90.8 the month prior and JOLTS job openings from February increased to 3,925 from 3,611 the month prior. For small businesses, most concerning was the decrease in economic expectations and positive earnings trends.
In market news, Herbalife (NYSE:HLF) delayed its opening after releasing news that its auditor, KPMG, was resigning due to improper disclosures of internal information that resulted in illegal trading. Herbalife's stock gave back 3.75% today, but that isn't an outsized move for the stock, all things considered. Sketchers (NYSE:SKX), also a client of KPMG's Los Angeles office, disclosed that KPMG was also resigning as its auditor due to similar circumstances.
Overnight, JC Penney (NYSE:JCP) CEO Ron Johnson resigned and was replaced by his predecessor, Myron Ullman. At one point during the day, shares of JC Penney had risen 13% as a sale looked to be a possibility, but with news of Ullman's appointment, they quickly turned lower.
Tomorrow's Financial Outlook
Tomorrow will see the release of the FOMC's March meeting minutes. Undoubtedly, the minutes will show discussion that suggests the benefits of QE outweigh the costs. The minutes may also feature an outline of some pre-conditions for an eventual slowdown of monthly asset purchases. This month's minutes shouldn't be as market moving as February's, however. Other data includes the Treasury's monthly budget statement, which is expected to narrow to -$107 billion from last February's -$198.2 billion.
A big chunk of global data will come from China, but it's all quiet on the European front. Chinese trade balance is expected to remain relatively unchanged from the month prior, but YoY exports are likely to have fallen, vs. an expected sharp increase in imports. New domestic loans are expected to rise to 900 billion yuan, up from 620 billion the month prior.
Earnings season begins to pick up tomorrow with Family Dollar (NYSE:FDO), Constellation Brands (NYSE:STZ), Bed Bath & Beyond (NASDAQ:BBBY).
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