cheap longchamp with the company exceeding expectations on both the top and bottom lines. That is where the good news stopped and the bad news began. Investors were not pleased to learn that the company is still struggling with internet traffic

6 Stocks Moving On News

The market was gaining strength into yesterday’s close until the oil market tanked into its close. The sell off in oil caused more concern than pleasure as the market continues to focus on how lower energy prices affect jobs in the United States rather than how consumers, and by extension the overall economy, benefit from lower prices. We understand the logic, especially when considering just how much we produce domestically these days, but think yesterday’s reasoning for the sell off was just an excuse for those who wanted to see the market take a break from its recent run.

Chart of the Day:In late 2012 and early 2013 there was talk of the cross in the US Dollar/Japanese Yen rising to the 150 level. That never materialized and instead we saw over a year of sideways movement until the US Dollar once again started gaining strength. The trade got even more crowded with Japan’s surprise announcement last week of further easing, but if new calls for 150 or 200 surface we think it would be wise to exit this momentum trade.

All Ordinaries up 0.24%Shanghai Composite up 0.03%Nikkei 225 up 2.73%NZSE 50 up 0.09%Seoul Composite down 0.91%In Europe, the markets are lower this morning:

CAC 40 down 0.43%DAX down 0.05%FTSE 100 down 0.16%OSE up 0.32%Disappointing Earnings ResultsAfter the market closed yesterday both Herbalife (NYSE:HLF) and Sprint (NYSE:S) reported disappointing quarterly results. Investors had bid up the price of each company’s shares during the session but shares gave up all of those gains and then some in the after hours session.

Herbalife finished down about 13% in after hours after the company reported a couple of one time losses and an earnings miss. The company’s adjusted EPS figure was $1.45 versus the analyst consensus estimate of $1.51/share. The company took two large charges for the quarter; one charge was related to Venezuela and the other was related to a $15 million settlement with a former salesman. Making matters worse for the company was the lowered EPS guidance for the fourth quarter, which management now sees at $1.30 $1.40 per share versus previous expectations of $1.69/share.

If guidance holds, that would make three quarters in a row where the company had disappointing results. With its third quarter disappointment, Herbalife has now reported results in two straight quarters which came in under consensus numbers.

The news at Sprint certainly was not any better, with shares falling nearly 8% in after hours trading on news that the company’s quarterly loss was larger than expected and the company would be laying off 2,000 employees. Sprint reported a loss of $0.19/share, versus analysts’ consensus of $0.06/share, with revenues that also came in below expectations.

Sprint ran into problems this quarter as the company tries to navigate a cellular market which has become quite heated in recent quarters. Increased marketing from competitors raised the company’s churn rate to 2.18% and Sprint is losing the most valuable customers in the industry, post paid subscribers. The big losses of post paid subs led the company to give a disappointing outlook for the quarter that ends in December, even though they should see gains from consumers upgrading to the new iPhone 6.

Financial NewsJP Morgan Chase (NYSE:JPM) is the latest bank to announce that it faces criminal charges over its FOREX trading in the spot market. It is cooperating with the Department of Justice, Commodities Futures Trading Commission and various foreign regulators. Due to the news the company increased the worst case scenario for legal expenses as it will undoubtedly have to write another check to regulators to settle the investigation. The upper range of reasonably expected losses is now $5.9 billion. Shares were lower in after hours trading.

Investors in American International Group (NYSE:AIG) pushed shares higher by about 1% after the company reported a strong third quarter and increased their share repurchase program by $1.5 billion. AIG left their quarterly dividend at $0.125/share, but with the steady growth in the core insurance business continuing this quarter we expect the company to have the fire power to continue to raise the dividend in the foreseeable future.

Big Tech NewsRetailMeNot (NASDAQ:SALE) reported a pretty good quarter as far as the financial aspect is concerned, with the company exceeding expectations on both the top and bottom lines. That is where the good news stopped and the bad news began. Investors were not pleased to learn that the company is still struggling with internet traffic, apparently still suffering from certain search engines having revamped their algorithms. Also troubling was news that CFO Douglas Jefferies was stepping down and would be replaced on an interim basis by Louis Agnese. Shares are down nearly 23% since the news broke.

Investors received their first look into Alibaba (NYSE:BABA) as the company reported its first quarterly results as a public company. Revenue grew by 54% as net income rose by 15%. The company exceeded analysts’ estimates on revenues but missed on net income due to expenses related to share based compensation and amortization.

Like other e commerce and internet companies, Alibaba is trying to crack the code to mobile. The company continues to see growth in mobile, with mobile revenue increasing ten times over year ago results. Moving forward the key is how to make mobile as profitable, or more profitable than desktop.

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cheap longchamp with the company exceeding expectations on both the top and bottom lines. That is where the good news stopped and the bad news began. Investors were not pleased to learn that the company is still struggling with internet traffic

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