Track the companies that matter to you. It's FREE! Click one of these fan favorites to get started: Apple; Google; Ford.



Stock Market Today: JPMorgan's Record Fine, Lululemon's Dreary Outlook

Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.

Expect a lower start to the stock market today, as the Dow Jones Industrial Average (DJINDICES: ^DJI  ) is set to fall by 35 points at the opening bell following its painful 129-point drop yesterday. JPMorgan Chase (NYSE: JPM  ) is making headlines for the wrong reasons again this morning, while lululemon athletica (NASDAQ: LULU  ) sees a flat holiday quarter ahead, and Facebook's (NASDAQ: FB  ) stock has found a new home.

JPMorgan will have to pay $2 billion in penalties and face a criminal action for its role in Bernard Madoff's billion-dollar Ponzi scheme, according to The New York Times. While the settlement doesn't include a formal indictment, a major Wall Street bank had never previously faced an agreement of this type. JPMorgan also earned the dubious record of most fined bank in history earlier this year when it agreed to pay a $13 billion settlement tied to its selling of mortgage-backed securities leading up the financial crisis. While this most recent deal allows the megabank to move forward, the key question for investors is whether JPMorgan has changed the culture that allowed these failures in the first place. The stock is unchanged in premarket trading.

Next, lululemon beat top and bottom-line earnings estimates this morning while offering a weak outlook for the holiday season. Revenue for its third quarter rose by 20% to $379 million on the back of a solid 5% comparable-store sales bounce. Profit increased to $0.45 a share, above Wall Street's $0.41 target. However, the company forecast sales of just $540 million for the holiday quarter, which would mark an 11% rise over the prior period and would be lululemon's slowest growth rate since 2009. Comparable-store sales are also expected to be flat in the holiday quarter, which suggests that its new CEO will have some big challenges to face next year. Lulu's stock is down 10% in premarket trading.

Finally, Facebook shares are up this morning after Standard & Poor's announced that it would add the social networking company to its S&P 500 stock index next week. The move has no impact on Facebook's business or earning potential, but it will likely increase demand for the stock over the short term. For the shares to outperform in the years ahead, though, Facebook needs to show that it can keep users engaged while finding ways to expand the market for advertising on mobile devices. The stock is up 3.8% in premarket trading.

Get ahead of 2014
The market stormed out to huge gains across 2013, leaving investors on the sidelines burned. However, opportunistic investors can still find huge winners. The Motley Fool's chief investment officer has just hand-picked one such opportunity in our new report: "The Motley Fool's Top Stock for 2014." To find out which stock it is and read our in-depth report, simply click here. It's free!


Read/Post Comments (0) | Recommend This Article (0)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

Compare Brokers

Fool Disclosure

Sponsored Links

Leaked: Apple's Next Smart Device
(Warning, it may shock you)
The secret is out... experts are predicting 458 million of these types of devices will be sold per year. 1 hyper-growth company stands to rake in maximum profit - and it's NOT Apple. Show me Apple's new smart gizmo!

DocumentId: 2762395, ~/Articles/ArticleHandler.aspx, 9/27/2016 3:28:57 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...

Today's Market

updated 6 hours ago Sponsored by:
DOW 18,094.83 -166.62 -0.91%
S&P 500 2,146.10 -18.59 -0.86%
NASD 5,257.49 -48.26 -0.91%

Create My Watchlist

Go to My Watchlist

You don't seem to be following any stocks yet!

Better investing starts with a watchlist. Now you can create a personalized watchlist and get immediate access to the personalized information you need to make successful investing decisions.

Data delayed up to 5 minutes

Related Tickers

9/26/2016 4:35 PM
^DJI $18094.83 Down -166.62 -0.91%
FB $127.31 Down -0.65 -0.51%
Facebook CAPS Rating: ***
JPM $65.78 Down -1.47 -2.19%
JPMorgan Chase CAPS Rating: ****
LULU $64.03 Down -1.16 -1.78%
Lululemon Athletic… CAPS Rating: ***