As the broader market seesawed in choppy trading Tuesday afternoon, J.C. Penney’s stock and airline shares were in sharp focus.
J.C. Penney was in the spotlight after Bill Ackman resigned from the retailer’s board. Ackman has been demanding the ouster of CEO Myron Ullman and chairman Thomas Engibous.
In its statement, Penney’s board reiterated its “overwhelming support” for the two leaders. Shares of J.C. Penney initially rose on the news but quickly fell into the red. The stock was down nearly 3 percent, making it one of the biggest losers in the S&P 500.
Ackman’s departure was the also the hottest topic among traders on StockTwits, but there was little agreement on how the hedge fund manager’s exit will impact the future of J.C. Penney.
traderrick1: With Ichan up in Bill`s face, he`s making huge mistakes and effecting his investment strategy in regards to $JCP.
BlackHawkTrader: Just cause Ackman is off the board, it doesn’t change my view on $JCP (garbage store), never been in 1 and dont know anyone who shops there.
Meanwhile, airline stocks were big losers after the Justice Department filed a lawsuit to block the $11 billion merger between American Airlines and U.S. Airways, arguing that it would lead to higher fares for consumers. Shares of American Airline’s bankrupt parent company AMR Corp. plunged more than 40 percent while U.S. Airways shares also tumbled.
Other airline stocks, including Delta, United Continental, JetBlue and Southwest also declined.
Stonefoxcapital: $LCC evidently the govt doesn’t realize that American is in bankruptcy.
Meanwhile, the major indexes flipped between gains and losses. All three opened higher, fell into the red but bounced back in afternoon trading. With about three hours remaining in the trading day, the Dow Jones industrial average, S&P 500 and Nasdaq were up between 0.2 percent and 0.3 percent.
After surging this year to record highs, markets have softened this month with little significant news to speak of. Volume is also light as many traders are away.
And Tuesday’s lackluster report on retail sales wasn’t enough for investors to make any big bets.
Retail sales edged up 0.2% in July, rising for a fourth straight month, but the gain was “softer than anticipated,” said Jim Baird, chief investment officer at Plante Moran Financial Advisors.
“Consumers are still spending, although limited income growth appears to also be holding spending increases in check,” he added.
What’s moving: In addition to Penney and airline shares, a few other stocks were on the move and getting plenty of attention on StockTwits.
Eli Lilly shares rose after the company said its experimental lung cancer drug increased the survival rate of patients in a late-stage trial.
34angstroms: time to get away from erectile dysfunction, testosterone and antidepressants and move towards curing cancer #Necitumumab
Shares of Yum! Brands Inc sank after the restaurant operator said same-store sales at its KFC locations in China dropped 13% versus last year as the company continues to struggle in the wake of a food safety scandal.
nnngggggg: $YUM people foolishly just assume this will do well china problem is getting worse not better. Bearish
