adminVans and North Face Owner VF's Stock Plunges
3 minutes ago
Shares of Vans and The North Face owner VF Corporation (VFC) slumped Monday as JPMorgan put the apparel giant on its “Negative Catalyst Watch” list and warned about its financial outlook.
JPMorgan analysts wrote in a note to clients that after “recent fieldwork and management access” they cut their fiscal 2025 earnings per share estimate to 65 cents, which they noted was 35% below the Wall Street consensus. The analysts based that on an 8% year-over-year decline in revenue, also worse than consensus forecasts.
JPMorgan warned of “continued wholesale challenges” at The North Face, noting management said retailers were reluctant to take inventory risks because of the warmer start to the fall and winter last year. The analysts added their research found “ongoing traffic headwinds globally across brands in the portfolio” affecting direct-to-consumer revenues.
The analysts maintained a “neutral” rating on the stock, with a price target of $16, implying about 12% downside from Monday's intraday price of $18.25.
VF shares were down nearly 7% in intraday trading Monday, and they've moved into negative territory for 2024.
–Bill McColl
Boeing Leads Handful of Dow Gainers
35 minutes ago
Boeing (BA) shares advanced 3% Monday afternoon after the plane maker and its 33,000-member machinists union struck a tentative agreement over the weekend that could end the five-week strike that has crippled the company.
The deal includes a 35% bump in wages over four years, a $7,000 ratification bonus, and a boost to members’ 401(k) plans, though it would not bring back the traditional pension plans workers wanted. The union said it would be putting the proposal up for a vote on Wednesday.
Boeing has been hammered by the walkout, which began Sept. 13. Since then, the company has announced significant cost-cutting steps, including plans to lay off about 17,000 employees. It also wrote in a regulatory filing it planned to raise up to $25 billion through the sale of debt or stock.
Shares of Boeing hit a two-year low earlier this month, and despite a slight rally, they've still lost nearly 40% of their value this year.
Boeing was one of only five Dow components gaining ground on Monday.
–Bill McColl
Humana Levels to Watch After Report of Cigna Merger Talks
2 hr 31 min ago
Humana (HUM) shares rose Monday after Bloomberg reported late Friday that Cigna (CI) has resumed its efforts to merge with the struggling health insurer.
The stock broke down below a descending channel late last month, but promptly reversed course the following week to reclaim the pattern's lower trendline, potentially indicating a bear trap.
The stock was up 0.3% at $267.95 in recent trading, after rising to above $275 early in the session.
Investors should watch key overhead levels on Humana's chart around $300, $370 and $450, while also watching a crucial area of support near $230.
Read the full technical analysis piece here.
–Timothy Smith
Kenvue Stock Surges on Report of Starboard Stake
2 hr 54 min ago
Shares of Kenvue (KVUE) took off Monday morning on reports that activist investor Starboard Value has taken a large stake in the consumer health products maker.
The Wall Street Journal and Reuters report it’s unclear how big of an investment the hedge fund has made in the maker of Tylenol, Band-Aids, and Listerine.
The Journal, which first reported the news, said that Starboard has taken a “sizable stake” and wants the company to make changes to boost its stock price, while Reuters pointed out that the share price has fallen 18% since Kenvue began trading last year after it was spun off of Johnson & Johnson (JNJ).
The Journal noted that Starboard founder and Chief Executive Officer (CEO) Jeff Smith is expected to outline the firm’s plans for Kenvue at tomorrow’s 13D Monitor Active-Passive Investor Summit in New York.
Reuters added that Smith will also speak at the conference about Starboard’s plans for Pfizer (PFE) after it recently made an approximately $1 billion stake in the drug maker.
Kenvue shares were up about 6% in recent trading,
–Bill McColl
Spirit Airlines Soars as Debt Deadline Extended
3 hr 39 min ago
Spirit Airlines (SAVE) shares jumped in early trading Monday after the discount carrier said it has extended the deadline on a debt refinancing plan with credit card processors Visa (V) and Mastercard (MA).
The deadline for the refinancing originally was extended from September to Monday, but Spirit said in a filing late Friday that the deadline has been extended again to Dec. 23. Spirit also said that it has borrowed the entire $300 million available from a revolving credit line, and expects to end the year with at least $1 billion in liquidity.
Shares of the discount airline were up 38% at $2.02 in early trading but have lost nearly 90% of their value since the start of the year.
Legal challenges that eventually led Spirit and JetBlue Airways (JBLU) to abandon their attempted merger; cost-cutting maneuvers like delaying jet deliveries and furloughing pilots amid warnings of lower revenue; and a recent report that Spirit is considering filing for bankruptcy have sent the stock plummeting this year.
–Aaron McDade
Gold Continues to Glitter
4 hr 48 min ago
Gold (GOLD) is on the rise again early Monday, trading at record-high levels.
The yellow metal, which has posted four consecutive days in the green through Friday’s close, has received a boost in recent trading sessions from escalating tensions in the Middle East, uncertainties surrounding the upcoming U.S. presidential election, and expectations of further interest rate cuts before the end of the year.
Typically, investors flock to the safe-haven asset during periods of geopolitical uncertainty, while lower rates reduce the opportunity cost of holding the metal, making it more attractive as a store of value.
The relative strength index confirms bullish price momentum in the commodity, but also cautions of overbought conditions that increases the chances of short-term pullbacks.
Investors should monitor a bars pattern upside target on the gold chart around $2,890 an ounce, while also watching important support areas at $2,605, $2,530, and $2,430.
Read the full technical analysis piece here.
–Timothy Smith
Futures Point to Lower Open for Major Indexes
5 hr 30 min ago
Futures tied to the Dow Jones Industrial Average were down 0.2%.
S&P 500 futures were off 0.3%.
Nasdaq 100 futures were down 0.6%.
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