S&P 500 poised for worst monthly drop since September on economy

Kohl’s Retreats

Kohl’s Corp. retreated 5 percent to $46.40 after the retailer said May same-store sales decreased 4.2 percent. That compares with the average estimate for a 1.1 percent decline.

Facebook, which this week fell below $30 for the first time, dropped 2.2 percent to $27.56. Investors have pummeled the shares, citing concern over growth prospects for the largest social-networking service.

Talbots climbed 92 percent to $2.48. Shareholders will get $2.75 per share, the Hingham, Massachusetts-based retailer said today in a statement. That’s lower than the most recent offer of $3.05 per share.

TJX Cos. rose 1 percent to $41.74. The owner of the T.J. Maxx and Marshalls retail chains posted an 8 percent increase in same-store sales, topping the 5.1 percent estimate as warm weather and lower gasoline prices boosted consumer spending.

“Traffic trends have picked up as hot summer weather spread over the majority of the nation,” Adrienne Tennant, an analyst at Janney Montgomery Scott LLC in Washington, wrote in a note.

Ciena’s Results

Ciena Corp. climbed 6.8 percent to $12.69. The maker of networking equipment rose after second-quarter sales and earnings topped analysts’ estimates. Ciena is capitalizing on demand for speedy fiber-optic networks, which transmit data in the form of light over fiber strands.

The S&P 500 may rebound almost 3 percent in June based on the average size of moves following past May declines of 4 percent or more, Bespoke Investment Group said.

The benchmark gauge has fallen 4 percent or more in May on 15 occasions since 1928, followed by an average June increase of 2.8 percent, according to data compiled by Bespoke. The index rose in June 60 percent of the time following such moves.

The last time the S&P 500 slid more than 4 percent during May of a U.S. presidential election year was in 1984, when it tumbled 5.9 percent before rebounding 1.8 percent in June. This year’s slide may also mark a bottom for the market followed by a June rally, Justin Walters, Bespoke’s co-founder, said in a phone interview yesterday.

“The data certainly leans positive,” Walters said. “Along with the election analysis and the big down Mays, the risk-reward favors the market going positive here.”

The S&P 500 has averaged a gain of 0.51 percent in June following an increase in May, the Bespoke report showed, and the index has risen 0.96 percent in June after May declines. Its performance next month ultimately will be determined by Europe’s handling of the government-debt crisis, according to Walters.

Bloomberg News

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