Stocks to invest in
With the U.S dollar index up for the fourth consecutive day and oil prices trending lower, U.S stocks are slightly down this morning. The dollar index was up by approximately 0.5% this morning, while oil prices fell by more than 2%, putting pressure on the market. Amid the general slump, some stocks have registered large declines for various reasons. Let’s find out why Michaels Companies Inc (NASDAQ:MIK), Nike Inc (NYSE:NKE), Goldcorp Inc. (USA) (NYSE:GG), Sunedison Inc (NYSE:SUNE), and Pinnacle Foods Inc (NYSE:PF) are all getting slammed this morning.
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Michaels Companies Inc (NASDAQ:MIK) is down slightly this morning after the company announced that certain shareholders are looking to offload 17 million shares. The company itself is set to acquire only 2 million of those shares, using cash on hand. Michaels Companies Inc (NASDAQ:MIK) has been on a roll lately, spurred by better-than-expected fourth quarter results. The arts and crafts specialty retailer posted a profit of $0.87 per share on the back of $1.68 billion in revenue, surpassing analysts’ expectations of $1.65 billion in revenue and earnings of $0.84 per share. Jonathon Jacobson‘s Highfields Capital Management is betting big on the stock, having reported ownership of 8.95 million shares of it in its latest 13F filing.
Shares of Nike Inc (NYSE:NKE) are down by more than 4% so far today, despite the company beating market expectations for the third quarter of fiscal year 2016. While analysts had projected revenue of $8.20 billion and earnings of $0.49 per share for the athletic equipment and apparel company, Nike posted a profit of $0.55 per share on the back of $8.03 billion in revenue. What upset investors was the company’s weak outlook for future orders. Nike said future orders increased by 16%, below analysts’ expectations of 17% growth, which was interpreted as a post-holiday slowdown in consumer spending. Investors were also disappointed by Nike’s earnings outlook, given that it is an Olympic year, as the company said that it expects sales growth in the low single digits. Hedge funds are bullish on Nike Inc (NYSE:NKE), as the number of firms with long positions in the stock rose to 63 at the end of December, from 59 a quarter earlier.
Goldcorp Inc. (USA) (NYSE:GG) is down by 6% this morning as gold futures continue their fall. Gold for April delivery is currently trading around the $1,218 per ounce level, down by 2.5% today. As chances of a further interest rate increase by the Federal Reserve in the short term are slim, investors are switching back to stocks and trimming or closing their gold positions. A stronger dollar has also helped slow down the recent surge in gold prices, as the metal became more expensive for foreign investors. Jim Simons‘ Renaissance Technologies reported a 125% increase in its holding of Goldcorp Inc. (USA) (NYSE:GG) to 2.21 million shares as of the end of the fourth quarter, while First Eagle Investment Management reduced its exposure to the stock, having indicated ownership of 39.5 million shares in its latest 13F filing, down by 8% over the quarter.
Two more of the day’s trending stocks are discussed on the next page.
– Stocks to invest in