Reuters Insider - Inside the News: A Closer Look at Retail's Winners, Losers

Army Holding AD

13/06/2016 11:00

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 https://insider.thomsonreuters.com/link.html?cn=share&cid=176305&shareToken=MzpiNDJhMTZiZC0zZGQ2LTQ4MmQtYmQyMC05MDQwN2JiNjRlYzU%3D&playerName=ReutersNews 
                                                                       
 Source:             Thomson Reuters                                   
                                                                       
 Description:        Reuters Retail Correspondent Phil Wahba says      
                     discounting in December was greater than expected. 
                     Also, President Obama is set to announce JPMorgan 
                     executive William Daley as his chief of staff.    
 
 
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Transcript (May be auto-generated)

                 In about half an hour, President Barack Obama is set to announce that JP Morgan 
Exec William Daley will be his new White House Chief of Staff. Analysts say 
Daley was not part of Obama's original inner circle but is someone with deep 
business experience. Current Chief of Staff Pete Rouse is being moved to the 
Senior Advisory Position of Councilor to the President. Retail shares are 
falling after a spade of disappointing same store sales figures from big Main 
Street names. Reuters Retail Correspondent Phil Wahba points a finger at 
discounting. Well, Phil, how heavy was the discounting and we got harmed in the 
process? Retailers had to cut prices to entice shoppers. 

The shoppers are not doing as well as we thought they were based on the strong 
November. They flocked to Marshalls and T.J. Maxx which are part of TJX en 
masse, and that company reported a surprise increase. Even JCPenney which beat 
expectations said that it had been a very promotional environment; meaning, a 
lot of price cutting and that spooked a lot of investors who thought, well, 
shoppers are not feeling as good as we thought they were going forward. All 
right. Thanks, Phil. Well, swap spreads at the front end of the yield curve have
blown wider. This on fears that Euro zone bank debt may face further losses 
which is leaking in the Dollar LIBOR rates according to IFR. This is being 
reflected in the front end of Euro-Dollar futures which are also under pressure.
Post-EIA bulls were able to get nat gas close to yesterday's highs before they 
ran out of steam. Ensuing sell-off filled the gap, nat gas fell to just above 
the short term support level at $4.3720, a further breakdown of $4.1850 will 
drive prices south toward the $4 mark. Technicals are very negative then that 
will give the bears greater confidence to push prices lower. Reuters 
Quantitative Analyst Mike Tarsala notes a bearish reversal pattern in shares of 
big tech newsmaker this week- ARM Holdings. The stock surged early in the 
session, following news Microsoft will make its Windows operating system 
compatible with ARM's chip design for tablet computers. But Tarsala says that 
news is anticipated. He sees few catalysts ahead and notes the stock is now 
trading at more than twice its intrinsic value so it could drop back below $20 a
share. Well, coming up at 3PM, Eastern, we look at where the Euro is going as it
slides against the Dollar. And at 3:30, find out why Japanese investors need to 
diversify their investments to take on more risks with Oki Matsumoto, the CEO of
Monex, Japan's second largest online brokerage. I'm Fred Katayama. This is 
Reuters Insider