52.4 F
Fort Worth
Saturday, November 28, 2020
Business Stocks take a big dive as J.C. Penney surges, Whole Foods dives

Stocks take a big dive as J.C. Penney surges, Whole Foods dives

Other News

Left for dead, twice, RadioShack gets another shot online

SILVER SPRING, Md. (AP) — RadioShack, a fixture at the mall for decades, has been pulled from brink of death, again. It’s the most prized...

JC Penney sees bankruptcy protection exit by Christmas

NEW YORK (AP) — J.C. Penney believes it will emerge from bankruptcy protection before Christmas under a new ownership agreement that would save tens...

Petalo, not Charmin: Virus brings Mexican toilet paper to US

By JOSEPH PISANI AP Retail Writer NEW YORK (AP) — Toilet paper is back on store shelves. But you may not recognize some of the...

Mall owners close to buying JC Penney out of bankruptcy

By ANNE D'INNOCENZIO AP Retail WriterNEW YORK (AP) — Mall owners Simon Property Group and Brookfield Property Partners are close to a deal to...
Robert Francis
Robert is a Fort Worth native and longtime editor of the Fort Worth Business Press. He is a former president of the local Society of Professional Journalists and was a freelancer for a variety of newspapers, weeklies and magazines, including American Way, BrandWeek and InformatonWeek. A graduate of TCU, Robert has held a variety of writing and editing positions at publications such as the Grand Prairie Daily News and InfoWorld. He is also a musician and playwright.

By Hibah Yousuf

NEW YORK (CNNMoney) — Most stocks finished in the red Thursday, but the one that everyone had their eye on closed firmly in green. Shares of Twitter surged in their debut on the New York Stock Exchange.

But it was a pretty rough day for stocks not named Twitter. The Dow Jones industrial average fell more than 150 points, or 1 percent, while the S&P 500 dropped 1.3 percent. The Nasdaq was the biggest laggard of the day, down nearly 2 percent.

Stocks have been trading near all-time highs recently. In fact, the Dow hit a new record early Thursday morning before pulling back. So Thursday’s slump might be a sign that investors are growing more worried about how hot the market has been this year. Some analysts feel stocks are getting close to being overvalued.

Twitter defies the bears. But Twitter didn’t suffer from any concerns about valuation. The stock began trading at $45.10, 73 percent above its initial public offering price of $26, shortly before 11 a.m. ET. Twitter continued to rise, climbing as high as $50.09. It closed the day up 73 percent at $44.90, with more 117 million shares exchanging hands on the first day of trading.

Still, rival social media sites Facebook and LinkedIn tumbled along with the rest of tech. The Social Media ETF, which is expected to purchase shares of Twitter for its fund, declined almost 4 percent.

Two mutual funds that invest in private companies and have owned Twitter shares for some time also decreased sharply. GSV Capital fell 13 percent, while shares of Firsthand Technology Value Fund declined 6 percent.

Despite Twitter’s strong debut, most traders on StockTwits were bearish on the company’s future.

“$TWTR Social media hype will not last long,” said MasterBull. “Maybe another 6 years at most before the next big thing … sound familiar ‘my space’ Bearish.”

Many traders said they expect Twitter will retreat once the hype dies down.

“In the coming days $FB will turn Green & $TWTR will be beet Red. Bullish,” said tman2k.

But some traders did come to Twitter’s defense.

“Simple trade Psyche..Everyone thinks $TWTR is way over-priced here…but that is the reason it will even head higher,” said leopardtrader.

Earnings continue to roll in: The broader market was dragged down by companies with lackluster earnings.

Whole Foods was one of the biggest losers in the S&P 500 and Nasdaq as shares sank more than 11 percent. The sharp drop came after organic grocer cut its earnings and sales forecasts.

“$WFM all these hipster not buying over price supermarket,” said StockTwits user bullvsbear. “That’s probably because they’re shopping at their local farmer’s market instead.”

Qualcomm was also weighing on the Nasdaq and S&P 500, as shares fell 4 percent after the company posted quarterly earnings that fell short of expectations.

Groupon and Priceline.com both sank in after hours trading following their earnings releases. The two stocks finished the regular day of trading lower as well.

Tesla shares tumbled again following reports of yet another fire in one of its Model S electric cars.

“$TSLA buy one and than once it catches fire you get another one for free,” quipped Hameed on StockTwits.

Plano-based J.C. Penney Co., however, jumped after the troubled retailer announced an increase in same-store sales for October.

Upbeat economic data: Investors were initially encouraged by a report that showed the U.S. economy perked up slightly this summer, driven largely by businesses re-stocking their shelves, a rise in consumer spending, and the ongoing housing recovery.

Gross domestic product — the broadest measure of economic activity— rose at a 2.8 percent annual rate in the third quarter, according to the Bureau of Economic Analysis. That marked the fastest growth in a year and was stronger than economists had anticipated. A separate report showed initial jobless claims declined for the fourth straight week.

But the positive economic data also reignited speculation that the Federal Reserve may begin tapering its bond buying program, said analysts at Wells Fargo Advisors. The Fed’s stimulus measures have been a major driver of the bull market over the past several years.

Investors will continue to keep close tabs on economic data, particularly readings on the job market. The October jobs report is due early Friday. Economists surveyed by CNNMoney expect 120,000 jobs were added last month.

ECB unexpectedly cuts rates: In Europe, it’s all about the European Central Bank. The ECB said it cut a key interest rate to 0.25 percent, a sign of how fragile the European economic recovery is. European stock markets made modest gains in afternoon trading, keeping them near five-year highs.



Oh hi there 👋
It’s nice to meet you.

Sign up to receive awesome content in your inbox.

We don’t spam! Read our privacy policy for more info.

Latest News

JRB Fort Worth chosen for main operating base for C-130J aircraft

Naval Air Station Joint Reserve Base Fort Worth has been selected as a main operating base for eight C-130J aircraft at the 136th Airlift...

Several local Walmart Supercenters remodeled in time for holidays

Fort Worth and Arlington residents will soon get a first look at the newly remodeled Walmart Supercenters at 9500 Clifford Street, 8401 Anderson St....

Retail trade group sees solid holiday sales despite pandemic

By ANNE D'INNOCENZIO AP Retail Writer NEW YORK (AP) — The National Retail Federation, the nation's largest retail trade group, expects that holiday sales could...

Grapevine company acquires San Antonio family business

Grapevine-based Able Machinery Movers, a heavy machinery-moving and rigging company, announced Nov. 24 the acquisition of Diamond E Rigging, a family-owned rigging and heavy equipment relocation business...

Tarrant County DA’s office changing how it handles misdemeanor marijuna cases

The Tarrant County Criminal District Attorney’s Office is changing how it handles misdemeanor marijuana cases. The Tarrant County  Criminal District Attorney’s Office on Monday, Nov....