China’s Trading Halt Heard ‘Round the World; Planet Netflix; JC Penney’s for Dollars

Domino effect…

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Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Another day, another trading halt in China where shares once again plunged 7% – this time in just 29 minutes. The yuan dropped to its lowest level since March 2011 and it marked the second time this week that one of the world’s biggest economies took a hit like this. Naturally, this triggered global markets to reluctantly follow suit and even here in the U.S., the Dow, S&P and Nasdaq also saw drops. Not that I am trying to freak anybody out, but the last time the Dow had a bad start to the New Year was back in 2008. Investors, however, are most definitely not panicked about that little parallel and expect the situation to improve…over time.  Besides, market indexes aren’t anywhere near lowish territories so experts don’t expect China’s fiscal woes to be a major issue.. well here anyway.

Gone global…

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Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Apparently it’s Netflix’s world and we just live in it. Netflix CEO Reed Hastings told a crowd at CES, “You are witnessing the birth of a global TV network,” as he announced that the streaming video service would now be expanding to 130 more countries. The service will be available in 21 different languages and be available in a total of 190 countries in this great big world. That way, a whole new massive international audience can get to experience the joy we call ,”Orange is the New Black.” Interestingly, Netflix will not be making customized services for particular countries. Rather, it will be just one single solitary internet-based television network – one that is expected to reel in millions upon millions of new subscribers.  That, my friends, is how you conquer the world, but more importantly, Wall Street, where yesterday, shares of Netflix went up 10% on the news (though today it closed down at 114.56). Unfortunately, folks in China still have to wait – maybe forever – for the service to reach its shores lest its citizens gain inspiration from entertainment that the Chinese government might deem objectionable, incendiary or just plain rude. Other countries that wont be catching up on past seasons of “House of Cards” any time soon include North Korea, Syria and Crimea.

Bah-humbug…

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Image courtesy of renjith krishnan/FreeDigitalPhotos.net

Macy’s did not have a very merry Christmas as evidenced by its disappointing sales during the most important spending season of the year. Two factors seem to have contributed to these results: unseasonably warm weather kept shoppers from loading up on cold-weather gear; and a strong dollar that kept overseas tourists’ wallets at bay. And when a retailer posts less than impressive earnings during the most critical time of the year, it usually means a forecast trimming is in the works – which is exactly what Macy’s did. To add insult to fiscal injury, the retailer will be laying off close to 5,000 employees and closing 40 stores. Oddly enough, embattled retailer JC Penney saw a sales surge this holiday season of close to 4%. A big shout out for this fiscally pleasant surprise goes to amped up online efforts which helped lift shares by 2.4%. Now, if JC Penney can recoup that 8% decline that it took over that past year…well, wouldn’t that be grand.

 

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