J. C. Penney Sent to the Market Doghouse
As expected, GDP was revised higher for the fourth quarter, and it shows that the economy grew 0.1% instead of shrinking 0.1% as earlier estimates said. This, combined with a 22,000-person drop in initial unemployment claims to 344,000 and the first increase in consumer debt in four years, has stock markets moving higher today despite the pending sequester. As of 3:25 p.m. EST, the Dow Jones Industrial Average is up 0.24%, while the S&P 500 is up 0.31%.
DuPont is one of the big winners today, climbing 1%. The company's vice president of research said the company may be able to increase wheat yield by 20% with hybrid wheat technology, which is now in the company's development pipeline. DuPont is the world's second-largest seed maker, and wheat is the most planted crop, so this could be big for the company in the long term.
AT&T and Verizon both jumped 1% after prepaid operatorLeapWireless reported terrible fourth-quarter results. Consumers don't seem interested in paying large upfront costs to buy cellphones, even if there are lower costs on the back end. This bodes well for AT&T and Verizon, which offer subsidies on devices in order to rope subscribers into lucrative contracts. The competitive moat around these companies seems to keep getting bigger, and there's little chance anyone will be able to catch up.
In the market's doghouse today sits J. C. Penney , the retailer that can't seem to do anything right. The company saw same-store sales fall 32% and reported a $2.51 per-share loss for the quarter. The stock has fallen 17% today, and it's unclear whether J. C. Penney will be able to turn things around and survive much longer.
J. C. Penney has been a train wreck whose comeback always seems just around the next earnings corner, but people are beginning to doubt if CEO Ron Johnson can weave the same magic that he did at Apple. Investors wondering whether J. C. Penney is a buy today are invited to claim a copy of The Motley Fool's must-read report on the company. Learn everything you need to know about JCP's turnaround -- or lack thereof -- and as a bonus, you'll receive a full year of expert guidance and updates as key news develops. Simply click here now for instant access.
The article J. C. Penney Sent to the Market Doghouse originally appeared on Fool.com.Fool contributor Travis Hoium has no position in any stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.