Grainger Post 13% Drop in Sales Last Month

Grainger (GWW) said Friday it suffered a 13% decline in August sales from a year ago due to weak demand across the board.

The industrial-supply company said its sales were negatively impacted approximately one percentage point by currency fluctuations. But primarily, the double-digit drop in sales was due to “weak demand across all customer end-markets and geographies.”

Sales in the U.S. tumbled 14% from a year ago and 8% in Canada.

Shares of Grainger were inactive in the premarkets but are up 14% so far in 2009.

Retail sales dip 0.1 percent in JulyWeek Ahead: Tech and Retail Earnings On Tap

Market Winners & Losers: Target, MetroPCS

The major indices gained back a large chunk of Monday’s losses on some better-than-expected earnings. The Dow closed up 0.9%, the S&P gained 1%, and the Nasdaq added 1.3%.

Here are Tuesday’s winners and losers

Winners:

Ciena Corp. (CIEN)

The communications equipment provider soared 9% yesterday and last traded at $12.81, up $1.06.

Agilent Technologies Inc. (A)

The measurement technology company rose 7.9% on quarterly earnings. Agilent shares closed at $25.41, a gain of $1.85.

Target Corp. (TGT)

The discount retailer’s stock was boosted 7.6% after reporting earnings Tuesday, despite a drop in same-store sales. TGT shares ended the session at $44.32, up $3.11

Manitowoc Co. (MTW)

The crane manufacturer bounced back from yesterday’s losses to close Tuesday up 7.4%. MTW shares last traded at $6.66, a gain of 46 cents.

Deere & Co. (DE)

The tractor manufacturer was seeing green today as investors pushed the stock up 6.2% in anticipation of its earnings release. John Deere shares closed at $45.09, up $2.62

Losers:

Constellation Brands Inc. (STZ)

The beer and wine manufacturer bucked the market trends as it fell 3.1%. STZ shares last traded at $13.95, a loss of 45 cents.

TJX Cos. (TJX)

The TJ Maxx owner continued its volatile trading pattern as it returned most of Monday’s gains with a 3% loss, despite posting a 31% profit gain. TJX shares closed at $34.33, down $1.05.

MetroPCS Communications Inc. (PCS)

The wireless communications provider continues to float around its yearly lows after an Atlantic Equities downgrade caused the stock to drop 2.8%. PCS shares ended the session at $8.26, a loss of 24 cents.

Coventry Health Care Inc. (CVH)

News that President Obama's health-care plan was again gaining momentum squashed all of Monday’s games for Coventry as the stock fell 2.6%. CVH shares ended Tuesday at $22.98, down 62 cents.

IMS Health Inc. (RX)

IMS was another health-care company retreating from yesterday’s gains as it fell 2.5%. RX shares closed at $13.07, a loss of 34 cents.

Market Winners & Losers: Starbucks, Allegheny TechnologiesStocks tumble amid investors’ worries

Report: JPMorgan to Lend $1.5B to California

JPMorgan Chase & Co. (JPM) has agreed to provide the State of California a short-term loan of $1.5 billion to allow the state to end its IOU program, the Los Angeles Times reported Tuesday, citing state officials.

The short-term loan provided by JPMorgan would allow the state to begin to repay government vendors and creditors on Sept. 4, earlier than the maturity date on the IOUs of Oct. 2.

The Times reported that the interest rate on the $1.5 billion loan has not been determined yet, but experts said the interest rate could be between 2% and 3%. JPMorgan would be repaid for the loan in late September, according to the Times, when the California government sells what’s known as Revenue Anticipation Notes that have a longer maturity schedule than the IOUs.

The Times said that JPMorgan’s reasoning for doing the short-term loan was primarily to get into the good graces of the state government, which is one of the largest bond issuers in the nation. JPMorgan also recently oversaw a major expansion into California after the bank bought Seattle-based Washington Mutual in a distressed sale during the height of the financial crisis last year.

The budget crisis and a political deadlock in California over the summer forced the state government to issue IOUs for the first time since the early 1990s.

Nashville-based prison operator CCA will get new CEORed-Hot Stocks Cool Off

Cavuto: He's Lost an Option, Not the War

He hasn't lost.‪

Here's the deal.

He's lost an option. He hasn't lost the war.

Barack Obama conceding the public option to salvage some option… any option… on reviving his tattered health-care reform.‪

Do not assume he's scrambling, or that health care is dead.‪

He isn't. And it isn't. ‪

History proves it, because hard as it may be to believe now, when Medicare debuted 44 years ago, it was seen by some as a disappointment. Not nearly as sweeping as its original designers had hoped, or even as Lyndon Johnson had planned.‪ or as all-inclusive as liberals at the time had dreamed.

What's more, its $65 million first-year budget was deemed barely enough to cover its bare bones' goals. ‪

That was then. ‪

This is Medicare now.‪ a $400 billion budget.‪ and $5 trillion in benefits handed out. ‪

Not too shabby for a bureaucratic disappointment.‪‪

Lesson learned.‪

Big-government advocates have a habit of feigning disappointment when their big government goals are tamed.‪ They aren't that dumb. But we are.‪

Here's why. Once a bureaucracy starts. It can't be stopped. It can only grow.

Medicare proves it.

Because once a bureaucrat's in the door, he has a habit of staying.‪

Sort of like that unwanted guest who won't leave.‪ and to add insult to injury, stays later than any other guest, then parks himself on your couch and orders pay-per-view movies after you've long gone to sleep.‪‪

That was Medicare then. ‪this health-care reform now.

Trust me, taking the public option out now doesn't remove it later.‪ and forming these health cooperatives now doesn't mean they don't evolve into something amazingly government-like later.‪

This is about striking a deal…any deal…to get in the door.‪

Because once in, the government ain't leaving.‪

I hope you've ordered extra food.

I hear he's hungry.

Cavuto: Now it’s Chuck Grassley’s TurnTwo tax plans would take a big bite from the rich

Housing Starts Fall 1%

Newly-released data on Tuesday revealed that housing starts surprisingly fell in July as the battered U.S. housing market continued to struggle to recover.

According to the Commerce Department, total housing starts fell 1% in July to a seasonally-adjusted annual pace of 581,000. The data was unexpected as economists predicted starts would rise 2.7% in July.

The July figures also represented a drop-off from previous months as housing starts climbed 6.5% in June and soared 15% in May.

“It’s still an improvement of where we were a few months ago. In this quarter, housing will finally contribute positively to GDP,” Peter Morici, an economist at the University of Maryland, told FOX Business.

Morici added, “I’m not concerned that it was a little bit lower than the optimistic forecasts. Overall, I think this is a pretty good number. I think we’re okay.”

The government also said single-family housing starts rose 1.7% last month, well off June’s torrid pace of 17.8%. Construction of multifamily homes tumbled 13% last month.

Building permits, which help gauge future activity, also fell, declining 1.8% in July to an annual rate of 560,000. Economists had expected permits to increase 0.5% to 573,000.

Shares of home builders like Centex (CTX) and Pulte Homes (PHM) were mixed in pre-market trading following the data.

Week Ahead: Tech and Retail Earnings On TapRetail sales dip 0.1 percent in July

Week Ahead: Tech and Retail Earnings On Tap

Earnings next week from a handful of technology and retail stalwarts will give investors a better idea of the strength of the economic recovery.

Computer maker Hewlett-Packard (HPQ) reports on Tuesday and improvements in its consumer PC business are expected to improve the company’s quarterly numbers.

Retailer Target (TGT) will post results Tuesday, and competitors Gap (GPS) and Sears (SHLD) on Thursday. Revenues are expected to be down from a year ago as consumers keep a tight check on their wallets, waiting for the labor market to improve.

Home-improvement chain Home Depot (HD) will post second-quarter results Tuesday, a day after rival Lowe's (LOW). Both are expected to show lower profits and revenue as they continue to struggle with lower demand amid the recession and housing market downturn.

Also posting results next week are food companies H.J. Heinz (HNZ) and Hormel Foods (HRL), both Thursday, and J.M. Smucker (SJM) on Friday. Farm machinery maker Deere & Co. (DE) reports on Wednesday.

Several reports next week are expected to show an improving housing market, including data on July housing starts, out Tuesday, and information on July existing-home sales, to be released Friday. On Monday, the National Association of Home Builders will issue its August housing market index; the July reading was the highest since last September.

The July Producer Price Index, out Tuesday, is expected to slide 0.2% after a 1.8% jump in June on higher food and energy prices. Inflation has remained low this year, and the July Consumer Price Index, out this week, plunged 2.1% from a year earlier, the biggest drop since 1950.

The private Conference Board will release its July index of leading indicators Thursday, and reports on regional manufacturing activity are due Monday from New York and Thursday from Philadelphia.

Meanwhile, new rules requiring credit card issuers to give consumers 45 days of notice before raising their interest rate or making other significant changes to a card plan's terms become effective next week. Issuers also must begin sending bills 21 days before payment is due. The rules are the first of a number of new consumer protections to be implemented under a major credit card law enacted in May. Most of the law's changes won't take effect until February.

Market Winners & Losers: Goodyear, AkamaiWall St. seeks to extend rally

Stocks End Higher as Bulls Wave Off Retail Data

Wall Street gained ground on Thursday as the markets proved to be unfazed by sobering economic reports that revealed retail sales unexpectedly dropped last month as jobless claims rose further.

Today’s Markets

The Dow Jones Industrial Average rose 36.58 points, or 0.39%, to 9398.19, the Standard & Poor's 500 added 6.92 points, or 0.69%, to 1012.73 and the Nasdaq Composite picked up 10.63 points, or 0.53%, to 2009.35. The consumer-friendly FOX 50 gained 4.12 points, or 0.56%, to 736.84.

Concerns stemming from those worse-than-expected economic reports were countered by enthusiasm for Wal-Mart's (WMT) earnings beat and the government's successful sale of $15 billion of 30-year Treasury notes.

“I think we should be encouraged by the market action today. What could have been received as bad economic data is being overlooked and you are getting continued sponsorship of this market,” said Art Hogan, chief market strategist at Jefferies & Co.

The slight gains allow the bulls to tack onto Wednesday's 120-point rally, which came after the Federal Reserve decided to leave interest rates unchanged and said economic activity is "leveling out." The markets are now on track to end in the green for the fifth straight week amid optimism about the U.S. economy.

The Dow was led higher Thursday by gains of about 6% each from Bank of America (BAC) and Alcoa (AA). Nearly half of the index's 30 components lost ground, including United Technologies (UTX) and Caterpillar (CAT).

Thursday's rally was limited by a pair of downbeat reports on the U.S. economy, casting some doubt on Wall Street’s second-half recovery hopes.

The Commerce Department said retail sales fell by 0.1% in July, much weaker than the 0.7% rise economists had forecasted. Excluding auto sales, which received a boost from the government's "cash for clunkers" program, retail sales fell 0.6%. Despite the report, the retail sector avoided a knee-jerk sell off on Thursday. Shares of retailers like Sears (SHLD) and Abercrombie & Fitch (ANF) ended flat to slightly higher.

On the jobs front, the Labor Department said initial jobless claims rose by 4,000 last week to 558,000. Wall Street had been looking for a decline of 5,000. The government said continuing claims plunged by 141,000 to 6.2 million as unemployment benefits continue to be exhausted.

The negative domestic economic news stood in contrast to headlines out of Europe, where Germany and France surprised the markets by posting positive GDP figures. The basic materials sector on Wall Street rose in response as metals and mining stocks like Freeport-McMoRan (FCX) and AK Steel Holding (AKS) rose sharply.

The markets received a brief boost after the results of the Treasury Department said its 30-year auction received solid demand, capping off a successful week of bond auctions. The Treasury sales could help further ease fears on Wall Street about the government's ability to finance its growing debt load.

“Any concerns about the government’s ability to sell its longer maturity debt have once again been refuted,” Dan Greenhaus, chief economic strategist at Miller Tabak, wrote in a note.“Yesterday’s ten year and today’s thirty year auction have both gone quite well and have done so in the face of a powerful equity market rally.”

Wall Street also cheered Wal-Mart’s quarterly results, as the Dow component beat the Street with a profit of 88 cents per share despite a 1.2% decline in U.S. same-store sales. At the same time, Wal-Mart, which sells 10% of all goods in the U.S., upped the lower end of its full-year earnings guidance and forecasted an in-line profit for the current quarter.

On the commodities front, crude oil gained ground for the second day in a row but closed well off its highs. Crude settled at $70.52 a barrel, up 36 cents, or 0.51%.

Corporate Movers

Las Vegas Sands (LVS) soared 12% after the casino operator said it completed an amendment to its $3.3 billion Macau credit facility. The amendment increases the company's interest rates but gives it flexibility to sell a minority stake in its Macau operations.

Kohl's (KSS) disclosed a 3% drop in net income but the retailer’s EPS of 75 cents topped estimates. Kohl’s said net sales rose 2.2% but same-store sales fell 2.3%. At the same time, the department store chain upgraded its full-year guidance.

Urban Outfitters (URBN) reported a 14% decline in net income but the retailer’s EPS of 29 cents a share topped estimates. The company’s second-quarter sales rose by a better-than-expected 1% to $459 million even as its same-store sales tumbled 3%.

Estee Lauder (EL) reported a net loss in its latest quarter amid weak sales but the beauty products company’s adjusted-profit of 20 cents per share matched the Street’s view.Net sales tumbled by 16% to $1.68 billion, missing a $1.72 billion target.

DuPont (DD) unveiled plans to streamline its organization by consolidating its wide-ranging 23 businesses and eliminating five group vice president positions. The Dow component also named a new leadership team in the wake of the retirement of Richard Goodmanson, its chief operating officer.

E*Trade Financial (ETFC) tumbled 3% after hedge fund Citadel Investment Group said in a regulatory filing it plans to sell as much as 80% of its stake in the online brokerage.

Dr Pepper Snapple (DPS) easily beat the Street with a 46% jump in net income to 62 cents per share. The maker of Snapple and Mott's apple juice said its net sales tumbled 4% to $1.48 billion. Dr. Pepper also upgraded its 2009 profit outlook.

Data Dump

The Commerce Department said total business inventories tumbled by 1.1% in June, a larger increase than economists had called for and the 10th consecutive month of falling inventories. At the same time, business sales climbed by 0.9% to $975.8 billion in June.

Global Markets

European markets closed higher for the second straight day. London's FTSE 100 gained 0.82% to 4755.46, France's CAC 40 rose 0.49% to 3524.39 and Germany's DAX climbed 0.95% to 5401.11.

In Asia, Japan's Nikkei 225 closed up 0.79% to 10517.19, Hong Kong's Hang Seng rallied 2.08% to 20861.30 and China's Shanghai Composite jumped 0.89% to 3140.56.

Retail sales dip 0.1 percent in JulyAffiliated Computer Services Beats Street