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Omar Venerio
Omar Venerio
Articles (1697) 

Thursday Morning Market Highlights

Dow down 700+ points, The Children's Place falls on weak results

US markets

U.S. stocks were in the red on Thursday ahead of new labor market data and a second wave of Covid-19 cases. An additional 1.542 million Americans filed for unemployment benefits the past week, short expectations of 1.55 million. The Dow Jones Industrial Average lost 2.98% to 26,186, the S&P 500 index fell 2.48% to 3,111 and the Nasdaq Composite Index was down 1.72% to 9,849.

Gainers

• Kroger Co (NYSE:KR) +1.7%

• Clorox Co (NYSE:CLX) +1%

• Kimberly-Clark Corp (NYSE:KMB) +0.87%

• Colgate-Palmolive Co (NYSE:CL) +0.5%

• Newmont Corporation (NYSE:NEM) +0.4%

Losers

• Carnival Corp (NYSE:CCL) -11.3%

• Occidental Petroleum Corp (NYSE:OXY) -10.9%

• Freeport-McMoRan Inc (NYSE:FCX) -9.1%

• Alliance Data Systems Corp (NYSE:ADS) -7.8%

• Gap Inc (GPS) -7.4%

• Kohls Corp (KSS) -6.3%

• Aptiv PLC (NYSE:APTV) -5.4%

• The Walt Disney Company (NYSE:DIS) -4.4%

Global markets

The main European stock markets traded in the red.The UK's FTSE 100 lost 2.88%, France's CAC 40 retreated 3.31%, Germany's Dax was down 3.12% and Spain's Ibex 35 dipped 4.25%.

In Asia, Japan's Nikkei 225 fell 2.82%, India’s BSE Sensex lost 2.07%, Hong Kong's Hang Seng declined 2.27% and China's Shanghai Composite slid 0.78%.

The Children's Place releases earnings report

Shares of The Children's Place, Inc. (NASDAQ:PLCE) fell more than 11% on pre-market trading Thursday morning after the company announce its first-quarter results. The company posted a loss of $1.96 per share, beating analysts’ estimates by 30 cents. Revenue of $255.21 million declined 38.1% year-over-year and fell $6.57 million short of expectations.

President and CEO Jane Elfers had the following to say:

“Although we are facing a period of uncertainty regarding the future impact of the COVID-19 pandemic, The Children’s Place is moving swiftly and decisively to proactively address these challenges. In an effort to structurally position the company for continued success, we are significantly accelerating our fleet optimization initiative, and focusing our resources on accelerating our digital sales, both key elements of our long-standing transformation strategy. At the same time, we are addressing the near-term priorities necessary to preserve our financial flexibility.”

Net sales were down 38.1% to $255.2 million from $412.4 million in the same quarter of 2019. The gross loss was $19.7 million, compared to a gross profit of $152 million in the first quarter of 2019. Adjusted gross profit was $68.4 million compared to $151.4 million in the comparable period last year.

The operating loss was $173.1 million compared to operating income of $5.0 million in the comparable period last year, while the adjusted operating loss was $37.5 million compared to adjusted operating income of $6.6 million in the three first months of 2019.

Jim Simons' Renaissance Technologies increased the position by 1194% to 682,660 shares. Chuck Royce (Trades, Portfolio) added 4% to his holdings for 772,767 shares, while Steven Cohen (Trades, Portfolio) reduced his holdings 79% to 46,157 shares. Paul Tudor Jones (Trades, Portfolio) sold out the stock.

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

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About the author:

Omar Venerio
Omar Venerio is a capital markets, derivatives, corporate finance and financial management professor and Area Head of Finance. He is passionate about the stock market and providing independent fundamental research and hedge fund and insider trading-focused investigation.

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