The retail earnings train of sub-mediocrity led off Monday by the misleading
beats of J.C. Penney (NYSE: JCP ) and Lowe's (NYSE: LOW ) continued Tuesday
with the lackluster report of big-box giant Wal-Mart (NYSE: WMT ). The headline
news was Wal-Mart breaking a two-year-plus streak of declining U.S. same-store
sales, posting 1.3% gain in the measure more than analysts' expectations of
0.3%. The company also reported a 5.7% increase in its Sam's Club store sales,
besting estimates of 4.9%. However, Wal-Mart's actual earnings were a mixed
lot. The company watched its profit margins fall across Wal-Mart and Sam's
Club stores, as well as its international division. It reported a profit of
$3.34 billion, compared to $3.44 billion in the third quarter of 2010.
Wal-Mart's 97 cents per share were two cents better than last year but fell a
penny short of Wall Street expectations. Moreover, the company released
disappointing guidance, with a $1.42-$1.48 range for the fourth quarter against
analysts' expectations of $1.45 per share, and full-year outlook of $4.45 to
$4.51, slightly less than the estimated $4.50. WMT shares finished the day down
about 2.4% at $57.46. Going against the grain of its usual sob song was Research
In Motion (NASDAQ: RIMM ), which saw its shares gain about 5% on Tuesday as it
launched a pair of new phones for its BlackBerry 7, the latest version of its
current operating system. The BlackBerry Bold 9790 uses a touchscreen system but
also features a keyboard, while the Curve 9380 is the first Curve model to rely
solely on a touchscreen, and both will feature 5-megapixel cameras. The pair of
phones will continue to use the BlackBerry legacy operating system a fact that
might hinder sales, considering the company has announced it will be switching
to a new operating system (BBX) next year. Nonetheless, the new phones are
expected to carry RIM through the holiday season and provided at least a one-day
burst, with RIMM shares finishing Tuesday up at $19.13. Three Up Green Mountain
Coffee Roasters (NASDAQ: GMCR ): Up 12.98% ($5.47) to $47.61. Red Hat (NYSE: RHT
): Up 5.02% ($2.52) to $52.72. Cliffs Natural Resources (NYSE: CLF ): Up 4.79%
($3.36) to $73.45. Three Down Dish Network (NASDAQ: DISH ): Down 5.36% ($1.37)
to $24.19. Western Digital (NYSE: WDC ): Down 4.9% ($1.29) to $25.05. LinkedIn
(NYSE: LNKD ): Down 4.62% ($3.63) to $74.86. As of this writing, Kyle Woodley
did not own a position in any of the aforementioned stocks. Check out our list
of previous IP Market Recaps .
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