J.C. Penney Slumps, Zulily Jumps As Dow Loses 101 Points

The Dow Jones Industrial Average (DJINDICES: ^DJI  ) pulled back from the record closing high it reached yesterday, breaking its four-day win streak in the process. Tomorrow investors will look to weekly jobless claims figures and readings from the consumer price index for guidance. If inflation starts rising too quickly, it could cause the Federal Reserve to allow interest rates to drift higher, making money harder to come by. Taking a more cautious approach, the Dow fell 101 points, or 0.6%, to end at 16,613.

Most blue chip stocks have already reported quarterly earnings, but Wal-Mart (NYSE: WMT  ) still hasn't. The company is on the docket for tomorrow, and shares lost 0.5% on Wednesday before its results. The world's largest retailer increasingly finds itself trying to grow by expanding its services rather than its stores: Wal-Mart has announced its entry into the used video game market, the money transfer business, and even auto insurance this year, while also doubling down on efforts to grow its online presence. I applaud the company's willingness to branch out, but I think it'll take longer than a quarter or two to see the impact.

Source: J.C. Penney website.

Meanwhile, J.C. Penney (NYSE: JCP  ) shares shed 5.3% as investors got jittery before tomorrow's highly anticipated quarterly results. This year may turn out to be one of the defining moments in J.C. Penney's history, with the validity of its turnaround story on the line. Analysts expect the struggling department store to finally post a year-over-year revenue increase in the first quarter, although it likely will post a net loss as heavy promotional deals drive revenue growth.

Finally, shares of flash-sales website Zulily (NASDAQ: ZU  ) soared 9.3% today, after initially losing more than 5% in morning trading. Today marked the end of the company's "lockup period," meaning company insiders who owned stock before Zulily's IPO six months ago are now allowed to sell their holdings. This naturally puts pressure on a stock, so at first glance today's rally doesn't make much sense. The explanation lies in the mechanics of the market: short sellers who already borrowed and sold Zulily shares in anticipation of a decline decided to take their profits, and in order to close their positions they had to buy back the stock today.

Your credit card may soon be completely worthless
The plastic in your wallet is about to go the way of the typewriter, the VCR, and the 8-track tape player. When it does, a handful of investors could stand to get very rich. You can join them -- but you must act now. An eye-opening new presentation reveals the full story on why your credit card is about to be worthless -- and highlights one little-known company sitting at the epicenter of an earth-shaking movement that could hand early investors the kind of profits we haven't seen since the dot-com days. Click here to watch this stunning video.


Read/Post Comments (0) | Recommend This Article (1)

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.

DocumentId: 2958161, ~/Articles/ArticleHandler.aspx, 8/1/2014 8:27:46 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...


Advertisement