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Here’s why stock investors should hope that corporate earnings growth shrinks

“Many investors find it surprising that, in the wake of the fastest growth rate in corporate profits in many years, the U.S. stock market is struggling” writes Mark Hulbert for marketwatch.com. Secondly, faster earnings growth puts more pressure on the Federal Reserve to raise interest rates and tighten monetary policy.Such quarters were rare, however, and if we bracket them there is a perfectly inverse correlation between earnings growth rates and the S&P 500’s performance.Over the past nine decades, the stock market on average has hardly produced any gain in calendar…

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Investors find little appetite for consumer staples

“Investors have been turning away from staples companies because they are grappling with changing consumer preferences, fierce competition and other obstacles to raising prices even as their costs swell” writes Midwest Communications Inc for 95kqds.com. But even if investors do look more kindly on the staples sector in economic downturn, the sector’s may be “less of a port in the storm” than in the past, said Wells Fargo’s Samana.”We would get interested if valuations lowered to levels that compensated investors to take on the risk of the sector,” said Samana.The…

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Cramer: Foot Locker’s stellar earnings show the ‘mall is still not dead’ yet

“CNBC’s Jim Cramer said Foot Locker’s stellar quarterly earnings report on Friday shows there’s still some life left for brick-and-mortar retailers” writes Berkeley Lovelace Jr for cnbc.com. Cramer, host of “Mad Money,” has previously made the case for investors to stay in retail, particularly in apparel retail.Foot Locker and other similar stocks have been under pressure as investors have been concerned that Amazon could expand its dominance into apparel.Shares of Foot Locker, now with a market value of about $6.3 billion, soared about15 percent early Friday after the company reported…

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Foot Locker shares are jumping 15% after a blowout earnings report

“Shares of shoe retailer Foot Locker surged Friday after the company reported earnings well ahead of Wall Street expectations” writes unknown author for cnbc.com. Fears that e-commerce giant Amazon may seek to expand into apparel have made it a tough year for Foot Locker shares, now down more than 22 percent over the past 12 months.The stock rallied more than 15 percent in premarket trading after the New York-based company reported adjusted earnings per share at $1.45 for the first quarter, above consensus estimates of $1.25 from FactSet. Source: cnbc.com Share…

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A specialty retailer up 118% in one year could have more room to run after earnings

“Athleisure manufacturer Lululemon reports quarterly earnings next Thursday, and the options market is implying a relatively tame move on earnings after a mammoth run in recent months” writes Hannelore Foerster for cnbc.com. Bottom line: Shares of Lululemon are expected to see a move of around 8 percent following its earnings report next week, according to Gilbert.Stacey Gilbert, head of derivative strategy at Susquehanna, told CNBC’s “Trading Nation” Lululemon is expecting a relatively small move on earnings this quarter. Source: cnbc.com Share This:

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Bayer cuts expected Monsanto earnings synergies

“Bayer AG (BAYN.XE) on Friday reduced its expected earnings synergies from the Monsanto Co” writes Alberto Delclaux for marketwatch.com. “Bayer generated proceeds of over 15 billion euros through the separation from Covestro–around 4.5 billion euros more than expected,” said Chief Executive Werner Baumann.As part of the acquisition process, Bayer has been required to divest from businesses worldwide.MON, +0.06% acquisition, which has forced the company to divest from various businesses worldwide. Source: marketwatch.com Share This:

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Bayer cuts Monsanto synergy target to $1.2 billion due to divestments

“BONN (Reuters) – Bayer said that combining with takeover target Monsanto will have positive synergy effects of about $1.2 billion on core earnings, less than the $1.5 billion initially targeted because more divestments were needed to get antitrust approval” reports businessinsider.com. The German drugs and pesticides maker, which is holding its annual shareholder meeting on Friday, said in a statement that the targeted synergies will have their full effect on annual adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) from 2022. Source: businessinsider.com Share This:

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Nutanix shares fall on earnings miss

“Analysts surveyed by FactSet had estimated adjusted losses of 19 cents a share on revenue of $278.7 million” writes Tech Reporter for marketwatch.com. NTNX, -1.63% shares dropped more than 7% before taking back some of those losses and trading down 4.2% in the extended session Thursday after the company missed analyst earnings expectations. Source: marketwatch.com Share This:

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Gap Inc. shares tank as retailer misses earnings expectations, same-sale stores weaker

“Analysts polled by FactSet had expected earnings of 44 cents a share on sales of $3.61 billion for the quarter” writes Claudia Assis for marketwatch.com. GPS, +3.03% fell more than 10% late Thursday after the retailer missed Wall Street’s per-share earnings expectations and its same-store sales grew less than forecast. Source: marketwatch.com Share This:

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Ross Stores shares down 6% on weaker outlook, flat same-store sales

“Ross said it expects second-quarter same-store sales to be up between 1% and 2%, and second-quarter earnings per share between 95 cents and 99 cents” writes Claudia Assis for marketwatch.com. ROST, +0.42% fell more than 6% late Thursday after the retailer posted first-quarter earnings and sales above Wall Street expectations but predicted weaker second-quarter earnings.Analysts polled by FactSet had expected per-share earnings of $1.07 on sales of $3.5 billion, and a rise in same-store sales by 2.9%. Source: marketwatch.com Share This:

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