Another stock seeing impressive volume today was retailer J.C. Penney (JCP - 16-9/16), which closed almost 13 percent higher on the day. This rally was spurred by the news that JCP has joined forces with brokerage name Credit Suisse First Boston to explore JCP’s future business opportunities. These options for the company may include sales, joint ventures, or different directions in which to take the retailer’s direct-marketing business. The significant rally catapulted the shares directly into their overhead 20-week moving average. This intermediate-term trendline has been acting as resistance for the stock since mid-July. A break above this crucial barrier would be extremely significant from a technical perspective. Activity was moderate in the options pits today, with speculators primarily focusing their attentions on front-month JCP calls. <
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Limited (LTD - 48-1/16) shareholders received some potentially good news after the close, as the company announced a two-for-one stock split. Moreover, Intimate Brands (IBI - 42-5/16), which is 84 percent owned by LTD, also declared a two-for-one stock split and a $200 million stock buyback program. Both stock splits are scheduled to transpire on May 30 for shareholders of record by May 12. At the time of this writing, both IBI and LTD were halted in over-the-counter trading.<
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Go.com (GO - 13-5/16) reported earnings after the close that exceeded estimates by three cents per share. Unfortunately, the Internet service and software products provider is operating in the red with earnings losses of 47 cents per share. The company did announce that they will be purchasing up to five million shares. The shares of GO are trading five percent higher in after-hours trading.<
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Novell (NOVL - 17-9/16) reported after the close that their second-quarter earnings per share will be well below analysts' views. In fact, the company puts second-quarter figures around eight cents per share, versus Wall Street's original estimates of 16 cents per share. The stock is trading significantly lower in after-hours trading on this news. The company is expected to report its earnings in a couple of weeks. <
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Hilton Hotels (HLT - 8-1/2) has seen above-average volume for the last few sessions, leading up to its first-quarter earnings release. The lodging conglomerate released its earnings-per-share figures earlier today, easing past Wall Street estimates by a penny per share. This news was not received terribly well on the Street, as the shares closed down more than four percent. Since July, HLT has been contending with long-term technical resistance in the form of its descending 10-month moving average. The stock is currently a chip shot away from again challenging this trendline.
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