CARMAX (DOG)
Used car dealership dos and don’ts: Do search under the floor mats for any loose change the previous owner might have left behind; Do kick the tires, but, if you hurt your toe, refrain from saying “owww!”; Don’t invest in CarMax. Shares of the used car dealer got rear-ended after second-quarter revenue and earnings missed estimates, hurt by incentives that are propelling new car sales to record levels.
KMX (NYSE), $53.74 (U.S.) down $2.76 or 4.9% over week
BOMBARDIER (DOG)
For a while there, it looked as if Bombardier’s long-struggling stock was set for takeoff. Nope. It’s been towed back to the hangar. Already plagued by lengthy delays and massive cost overruns, the company’s crucial C Series jet program suffered another setback this month when Bombardier scaled back its 2016 delivery estimate to seven planes from 15, citing delays from engine supplier Pratt & Whitney. Investors are taking the bus.
BBD.B (TSX), $1.60 down 24¢ or 13% over week
FEDEX (STAR)
You know the joy you get when the FedEx package finally arrives with that rare Cabbage Patch doll you bought on eBay? FedEx investors have their own reasons to smile: Shares of the parcel delivery company surged after revenue and earnings both rose more than expected thanks to cost efficiencies and volume growth. With FedEx – which bought TNT Express in May – poised to raise rates next year, the company could deliver more good news.
FDX (NYSE), $174.39 (U.S.) up $15.50 or 9.8% over week
ASCENA RETAIL GROUP (DOG)
Things that are best avoided: 1) rabid animals; 2) falling pianos; 3) apparel stocks. In the latest example of a fashion retailer getting hammered by weak store traffic and shifting customer tastes, Ascena – parent of Ann Taylor, Dress Barn, Lane Bryant, Justice and other chains – posted first-quarter adjusted earnings below expectations and issued a disappointing full-year forecast. The stock has been relegated to the clearance rack.
ASNA (Nasdaq), $5.88 (U.S.) down $2.09 or 26.2% over week
S&P/TSX COMPOSITE (STAR)
There once was a woman named Yellen
Who really got stock markets gellin’
With her most recent vow:
“There’ll be no rate hike now”
You’d be nutty to think about sellin’
S&P/TSX, 14,697.93 up 247.24 or 1.7% over week