Trending Stocks: Sears Holdings Corp (NASDAQ:SHLD), Delcath Systems, Inc. (NASDAQ:DCTH)
Trading the news is a technique to trade equities, currencies and other financial instruments on the financial markets. Trading news releases can be a noteworthy tool for financial shareholders. Economic news reports often drive strong short-term moves in the markets, which may create trading opportunities for traders. Declarations about corporate profits, a change in administration, rumors of a merger, are events that can cause a company’s share price to move wildly up or down. Interest rates, unemployment and export rates, or the central bank’s policy shifts, can cause a deep change of an exchange rate.
The bad news in the retail sector continued to pile up Thursday with the news that the default rate for riskier retailers has spiked in July.
The trailing 12-month high-yield default rate among U.S. retailers rose to 2.9% in mid-July from 1.8% at the end of June, after J. Crew accomplished a $566 million distressed-debt exchange, according to Fitch Ratings.
The overall high-yield default rate fell to 1.9% in the same period from 2.2% at the end of June as $4.7 billion of debt rolled out of the default universe.
“Even with energy prices languishing in the mid $40s, a likely iHeart bankruptcy and retail remaining the sector of concern, the broader default environment remains benign,” said Eric Rosenthal, senior director of leveraged finance at Fitch, in a note.
Fitch is still expecting Claire’s Stores, Sears Holdings Corp. SHLD, -4.94% and Nine West Holdings to default by the end of the year, pushing the default rate to 9%. “The timing on Sears and Claire’s is more uncertain, and our retail forecast would end the year at 5% absent these filings,” said Rosenthal.
Shares of Sears Holdings Corp (NASDAQ:SHLD) declined -5.83% to $9.04 on Friday.
Sears said Thursday it is making its Kenmore brand available for sale on Amazon— news that sent its stock price up more than 20%. But analysts said the news suggests that its own stores and websites are failing to gain sufficient traction and that its smart-home program is failing. (Source: MarketWatch)
The stock is currently trading at $9.04 per share, floating in a range of $8.95 to $9.80. The stock is moving on high volume, traded at a volume of 2.16 million shares, as compared to its average daily volume of 1.55 million shares. The market capitalization billion for the company is reported at $1.07 Billion.
Delcath Systems, Inc. (NASDAQ:DCTH) opened at $0.15. It reached an intraday trading high of $0.15 and now trading at $0.143. The stock price declined -0.009 points or -6.05% at the market. The total volume traded for the day is 25.56 million, as compared to its average daily volume of 156.50 million shares. Trading volume, or volume, is the number of shares or contracts that point towards the overall activity of a security or market for a given period. Trading volume is a key technical indicator an investor uses to identify momentum in a stock and confirm a trend or trend reversal. Volume gives an investor an idea of the price action of a security and whether he should buy or sell the security.
Trading volume can also signal when an investor should take profits and sell a security because of low activity. If there is no relationship between the trading volume and the price of a security, this signals weakness in the current trend and a possible reversal.
The current EPS for the company has been recorded at $-8.98 and the beta value recorded by the company stands at 0.09 points.