3g Capital

September 2, 2010 by staff 

3g Capital, U.S. stocks rise, extending yesterday’s gain, which set the standard of & 500, to the poor the largest rally in almost two months, initial claims for unemployment fell and pending home sales unexpectedly rose.

Nordstrom Inc., JC Penney Co. and Kohl’s Corp. advanced at least 1.5 percent after reporting August sales at stores open that beatanlysts’ estimates. Burger King Holdings Inc. gained 24 percent after the members of 3G Capital provides $ 4 million for the company. Mariner Energy Inc. sank 4.2 percent after the Coast Guard reported an explosion in its platform in the Gulf of Mexico.

The S & P 500 rose 0.4 percent to 1085.01 as of 24:28 in New York. The Dow Jones Industrial Average rose 3.75 points, or less than 0.1 percent, at 10273.22.

“The numbers today are not going to hurt the market,” said Timothy Ghriskey, chief investment officer of Solaris Asset Management in Bedford Hills, New York, which manages and two million dollars. “The more we see the stabilization of the economic data, and hopefully the weather improves, rising again, we see that in the market. The payroll numbers tomorrow will be critical.”

Stocks rallied yesterday’s biggest drop in nine years in August, with the S & P 500 up 3 percent, as growth faster than expected in the manufacture of mild concern that the global economy will slow as off government incentives.

The S & P 500 is still 11 percent below the highest level this year and Sunday in April amid concerns that a slowdown in the pace of economic recovery in the country and in China is hurting the profitability of their businesses.

Jobless claims

Homebuilders and home improvement retailers advanced after-industry report. D.R. Horton Inc., the homebuilder second largest U.S. by revenue, increased 3 percent to 11.03 y. Home Depot Inc., the largest improvement retailer, gained 2.2 percent to 29.30 y. Lowe’s, the second, advanced 3.8 percent to 22.04 y.

Factory orders

The biggest gain in almost two months in the U.S. stock market yesterday lacked the stamp of a movement that is likely to happen, said Jeffrey DeGraaf, the top-ranked technicalanlyst.

The market trend was negative in July and remains so in September, historically the worst month for stocks, DeGraaf said in an interview. The market is not “oversold” and while investor confidence has deteriorated, has reached a pessimistic extreme, he said.

“It’s the noise,” DeGraaf said the advance yesterday. “I’d be more encouraged if the volumes were heavier, if the sentiment had reached what I thought was an extreme capitulative. It is true that is choppy, but do not think it really.”

Thinking VIX

The benchmark for U.S. stock options could fall below 20 for the first time in four months, even after a “mediocre” the report tomorrow may show that the labor market is “recovering slowly,” said MKM Partners LP.

The VIX, as the Chicago Board Options Exchange Volatility Index is known, is likely to fall below its average of 20.4 in the last two decades, Stamford, Connecticut Jim Strugger options strategist wrote in a note to clients today day. The indicator has fallen by nearly half from highs this year in May.

Retailers helped shares of consumer discretionary companies up more than 10 industry groups in the S & P 500 after August sales in same stores rose 3.5 percent, according to Retail Metrics Inc. a statement by email. The group had forecast growth of 2.8 percent.

Nordstrom Inc. advanced 6.2 percent to 32.20 and, in the S & P 500. The chain of U.S. department stores with over 100 locations of the same name said the August 1 store sales rose 6.3 percent, surpassinganlyst estimates a growth of 5.5 percent.

J. C. Penney ups

J. C. Penney Co. rose 2.5 percent to 21.27 y. The third largest chain of U.S. department stores said August same-store sales increased 2.3 percent, compared with growth of 1.6 percent in a poll ofanlysts.

Kohl’s Corp. rose 1.5 percent to 49.10 y. The U.S. chain the fourth largest department store operator said same-store sales rose 4.5 percent in August, compared with growth of 3.2 percent forecast byanlysts.

Burger King rose 24 percent to 23.42 and after it agreed to be acquired by 3G Capital in a deal worth 4 billion and debt included, giving him control of New York investment firm on the hamburger chain largest U.S. seconds. The 24 per share and the price is 46 percent more than Burger King and 16.45 close on August 31, before reports of an agreement at the surface.

Wendy’s / Arby’s Group Inc., the third largest U.S. fast-food chain, rose 6 percent to $ 4.37.

Forest Laboratories profit

Forest Laboratories Inc. gained 5 percent to 29.04 y. The laboratory of experimental antibiotic for treatment of pneumonia and skin infections, according to U.S. regulators weighing whether the drug should be cleared for sale.

Abercrombie & Fitch Co. fell 5 percent to 34.77 and, in the S & P 500. While same-store sales rose in August, promotions probably contributed to the profit and sales growth is slowing, Howard Tubin, ananlyst at RBC Capital Markets, said in a report.

Collective Brands Inc. fell 6.1 percent to 12.92 y. The owner of Payless ShoeSource stores reported second-quarter earnings that fell below the average projection ofanlysts surveyed by Bloomberg. Revenue also fell short of estimates.

Mariner Energy Inc. sank 4.2 percent to 22.37 and after the Coast Guard said an explosion, U.S. Coast Guard Casey Ranel officer, hit the company’s platform in the Gulf of Mexico said in a telephone interview.

Apache Corp., the energy company which last month agreed to buy 7 billion in assets from BP Plc, whose Gulf of Mexico and caused the largest oil spill in U.S. offshore, fell 2.2 percent to 90.44 y.

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