Subject: How to Limit Your Losses

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Rover's Weekly Market Brief
Rover

Indices

Dow Jones: 17,213.31 (+1.2%)

NASDAQ: 4,748.47 (+0.7%)

S&P 500: 2,022.19 (+1.1%)

Commodities

Gold: 1,249.40 (-0.9%)

Copper: 223.50 (-1.3%)

Crude Oil: 38.52 (+6.7%)

Economy

The European Central Bank (ECB) lowered rates and increased quantitative easing to curb persistently low inflation and spur growth. It lowered the marginal lending facility rate by 5 basis points to 0.25%, the main refinancing rate by 5 basis points to 0.00%, and the deposit facility rate by 10 basis points to -0.40%. It also increased its monthly asset purchase program to €80 billion from €60 billion and extended its purchases to include non-bank issued assets.


Crude Oil remains volatile; rising on an IEA report that prices may have bottomed and falling on uncertainty about the March 20 producer meeting. It rose 6.7% to close at $38.52 per barrel. Commercial crude oil inventories (excluding the Strategic Petroleum Reserve) increased 0.8% to 521.9 million barrels from 518 million the past week. However, the national average retail regular gasoline price rose 3.3% to $1.841 from $1.783 per gallon the prior week.


The US labor market continues its positive momentum pushed by further declines in unemployment claims. Initial unemployment claims fell 6.5% to 259,000 from 277,000 the past week while continuing claims fell 1.4% to 2,225,000 from 2,257,000. Additionally, the continuing claims 4-week moving average fell 0.2% to 2,252,000 from 2,256,500. The insured unemployment rate declined to 1.6% from 1.7% the previous week.

Markets

Dick's Sporting (NYSE: DKS) recorded a 6.7% rise in sales and a 4% drop in net income for 2016. Diluted EPS fell 0.4% to $2.83 from $2.84 the past year. The sales rise was partly attributed to increased e-commerce penetration which rose to 10.3% of total sales from 9.2% while the net income drop was driven by a 7.4% increase in SG&A expenses and a 13.4% increase in pre-opening expenses. Consolidated comparable store sales dropped 0.2%.


Urban Outfitters (NASDAQ: URBN) reported a revenue increase of 3.7% and net income decline of 3.4% for 2016. However, diluted EPS rose 6% to $1.78 from $1.68 the previous year. The revenue increase was driven by better sales in the urban outfitters (up 0.6%), anthropologie (up 2.5%), and free people brands (up 14.8%) while the net income drop resulted from high SG&A expenses (up 4.8%). Comparable store sales increased 2%.


Square (NYSE: SQ) posted a 49% rise in revenue and a 37.6% increase in net losses for 2015. Losses per share increased to $1.24 from $1.08 the previous year. Revenue grew across all business segments; transaction, starbucks, software, and hardware grew 48%, 16%, 382% and 124% respectively. Net losses increased to $212 million from $154 million as operating expenses rose 44.6%. Gross Payment Volume rose 50% to $35.6 billion.


Box's (NYSE: BOX) revenue rose 39.9% while net losses grew to $202 million in 2016 from $169 million in 2015. Losses per share declined to $1.67 from $11.48 the previous year as total shares outstanding septupled. The revenue gains were driven by a growing customer base (57,000 businesses in January 2016 from 45,000 in January 2015) while the net losses were propelled by increasing operating expenses (up 24.1%).

Next Week's Earnings Calendar

Mon
ALIOF
GSM
Tues
ORCL
FDS
Wed
FDX
CTAS
Thurs
ADBE
MCS
Fri
TIF
PRTO

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Guest Blog Post: How to Limit Your Losses

 

The first in a series of three guest-authored blog posts, Individual investor & Stock Rover user Randall Bal gives clear, practical guidance on how to limit your losses in investing using stop loss orders and strategic allocation.

 
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Stock Rover 101 Webinar — Wednesday at 1pm

 

Join us this Wednesday at 1pm for an introductory webinar to Stock Rover. Dive into each of the 5 panels to discover how it offers an exceptional depth of data in a logical, organized, and flexible format.

 
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Comcast & Dish: A Tale of Two Growth Strategies

 

After looking at Comcast's (CMCSA) & Dish's (DISH) valuation, efficiency and management standing and how the two measure up to cord cutting; we turn to the great determinant of future returns—growth strategy. In the third and final installment of this series, Bryson Kacha examines which growth strategy of the two peers is more likely to succeed.

 
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