The Seattle-based upscale retailer announced an 11% drop in income, however the company stated that this was common, as their largest sale of the year took place during the reported quarter.  To me, this is not bearish news. Sales increased 7.4% to $2.92 billion with same-store sales increasing 4.5%. They reported earnings of $156 million or 75 cents a share. Analysts were expecting earnings of 74 cents a share with revenue of $2.96 billion. Last year the company reported earnings of $175 million and 80 cents a share.

David Cornes holds a degree in economics from the University of Montana.

The Hang Seng dropped .7% today retreating from their 3 month high reached yesterday. Short selling
accounted for 12.2% of total turnover today. Weak earnings hit Li & Fung, as their core operating
profit for the first half fell 22%, sending them to their worse single day loss since 1992. Goldman Sachs
downgraded them to neutral from buy and their target price was cut to $17 from $ 18.60. China Yurun
Food group and China Datang Corp both dropped 6.1 & 4.7% respectively. China Overseas Land and
Investment reversed gains to finish .1% down after announcing a first half profit gain of 9.3%, slightly
lower than expected.

The FTSEurofirst is currently down .4% due to weak Chinese data showing Chinese exports rose by just
1% from a year earlier, much lower than expected. Alternative fuel maker Novozymes was among the
worst performers losing 2.9%. Indices are down around Europe with the DAX down .82%, the CAC down
1% and the Madrid General down .87%.

Bank of Ireland posted a 907B Euro loss in H1 compared to 722M a year ago, stock is down 6.1%

Goldman continues to retreat from Japan selling contractor Fujita Corp for 636M.

Commodities appear to be finishing weak with crude, natural gas and silver down over 1% and gold
down just under .5%.

Contributer Chris Rygh is currently pursuing his MBA in Wisconsin and has a passion for the Market.
Comments can be directed to ryghcw19@uww.edu

Trade:  Selling the JCP Aug 19-18 Put Spread and 25-26 Call Spread Condor for $.35

Risk: $65 per 1 lot

Reward: $35 per 1 lot

Notes:  good risk vs reward that JCP moves less than the measured move of 14.4%

American Express (AXP) lost -2.50%, the Dow’s biggest loss, with Visa and Mastercard also losing ground on the day as US economy data shows customer spending declining. 

In U.S. economic headlines, initial jobless claims, an indicator of cuts to the labor force, fell by 6,000 last week to a seasonally adjusted 361,000. Economists had forecast that number would rise to 370,000. Claims from the prior week were revised slightly higher.

In Europe, the Stoxx Europe 600 added 0.4% for its fifth consecutive day of gains, despite a downbeat survey from the European Central Bank that showed expectations for the euro-zone economy to contract more sharply this year than in previous estimates.

In corporate news, MDRX raged 18.44% after the electronic health record company raised its full year earnings outlook, though second quarter results fell short of estimates. Monster Beverage (MSNT) dropped near 10% after they missed earnings and estimates. Wendy’s (WEN) rose 1% after the fast food chain rose in sales and profitability over the last quarter.