Benchmark Indexes Fall in Friday Premarket Trading

JC Penney rallies after posting earnings beat

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Nov 10, 2017
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Wall Street was down in premarket trading Friday, with the main indexes in red as investors worry about the Republicans’ proposed tax reform plan.

Shares of J.C. Penney Co. Inc.Ă‚ (JCP, Financial), however, jumped more than 14% after reporting financial results for the third quarter. The company posted a loss of 33 cents, beating expectations by 10 cents. Revenue of $2.81 billion beat expectations by $40 million, but declined 1.7% year over year. In the year-ago quarter, the company reported revenue of $2.86 billion. The decrease is mostly due to closing 139 stores. Further, adjusted EBITDA reached $108 million, down from $174 million last year.

Same-store sales increased 1.7%, surpassing the estimated gain of 0.5%.

Looking forward, the company expects comparable store sales to be between -1.0% and 0.0%; cost of goods sold is expected to be up 100 to 120 basis points compared to 2016; selling, general and administrative expenses are projected to decrease 1.0% to 2.0% and free cash flow is forecasted to be between $200 million and $300 million. Adjusted EPS is expected to be between two cents and eight cents.

Gainers

Losers

  • Johnson Controls International PLC (JCI, Financial)
  • Norwegian Cruise Line Holdings Ltd. (NCLH)
  • Coty Inc. (COTY, Financial)
  • Royal Caribbean Cruises Ltd. (RCL)
  • Cardinal Health Inc. (CAH, Financial)
  • Medtronic PLC (MDT)

Global markets

The main European stock markets traded lower. The U.K.'s FTSE 100 lost 0.68%, Germany's DAX fell 0.42%, France's CAC 40 declined 0.50% and Spain's IBEX 35 slipped 0.48%.

In Asia, Japan's Nikkei 225 declined 0.82% and Hong Kong's Hang Seng dipped 0.05%, while China's SSE Composite gained 0.14% and India’s BSE Sensex rose 0.19%.

Disclosure: The author holds no positions in any stocks mentioned.