While you were busy waiting in multi-block long lines to claim IHOP's National Pancake Day goods, Wall Street was stuffing its face with a maple syrup-fueled stock-buying binge. Just after plummeting for its worst loss in a month, the Dow Jones Industrial Average (DJINDICES:^DJI) rebounded 228 points Tuesday for its best day of 2014, while the S&P 500 reached a record high -- mostly thanks to Russian President Vladimir Putin's easing of tensions in Ukraine.
2. Radio Shack earnings pull the plug on 1,100 stores
Nobody beats the Wiz, but everyone seems to be beating "The Shack." Shares of Radio Shack (NYSE:RSHCQ), the electronics retailer where you bought your first Nintendo Game Boy, fell 17% Tuesday after an even worse-than-expected earnings report -- a 19% drop in same-store sales caused a 20% loss in revenues from last year, down to $935 million over the last quarter.
What unplugged Radio Shack last quarter? Santa. While retail sales were lower than forecast at retailers nationwide, Radio Shack's "intense promotional activity" with price-slashed electronics still failed to gain buyers during the peak holiday season. Given the coal-worthy news, Radio Shack execs also announced in the earnings report that they'll be closing 1,100 stores in underperforming markets faster than you can order a computer from Amazon.com.
The takeaway is that as recently as early February, investors had some hope for The Shack. Following the Super Bowl, the stock surged 7% thanks to its self-deprecating "The '80s Called: They Want Their Store Back" ad that got Wall Street wondering if consumers would rethink their lack of respect for The Shack. Looks like they didn't.
We'll spare you all the "cleared for lift-off" airplane metaphors. Nonetheless, shares of Delta Air Lines (NYSE:DAL) rose 5.7% Tuesday to their highest point since it exited bankruptcy in 2007. Maybe now they'll stop charging us for the mid-flight peanuts we crave.
Why the sky-high number? Traffic rose 2.4% in February for the world's second-largest airline, with a notable 21% jump in mid-winter travel to Latin America (thanks, polar vortexes). Most impressively though, revenue for each seat flown 1 mile jumped 4% from last year, meaning Delta either managed to cram more people on each flight or pump up prices (or both).
Most interestingly of all, the brutal winter weather that's pounded the U.S. economy and all other airlines shockingly kind of helped Delta. While competitor United Airlines (NYSE:UAL) slashed a whopping 12.9% of its flights in the past two months, Delta cut only 4.5% of its flights.
- The Federal Reserve's "Beige Book" gives us the central bank's assessment of the U.S. economy.
- ADP's February Employment Report previews the big monthly jobs report due Friday.
- Fourth-quarter corporate earnings: Adidas reports.
As originally published on MarketSnacks.com
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