WMT - Gets a taste of Their own Campaign in a 'Price Rollback'

Stocks slipped yesterday, following steep losses in China and a downbeat outlook from Wal-Mart Stores... that outlook a result of 'currency fluctuations' (read strong dollar) along with the realization that those higher wages that WMT has started paying are beginning to hit the bottom line.......causing management to cut their annual forecast from $5.05/sh to a range of $4.40/$4.70/share.

Investors did NOT like this at all......sending shares in WMT down some 3.5%... 'rolling back' the global retailer's stock back to December 2012 prices......or a 25% discount to the highs posted in January 2015. Well WMT is famous for those commercials teasing 'price rollbacks' - a campaign to mislead the consumer - and now their stock is getting 'rolled back' as some investors make it clear that they are not misleading anyone - instead voting with their feet as they move out the door.

What exactly does a price rollback mean? Well, it does NOT mean you are getting a bargain - it just means that on Monday they were selling something at an artificially higher price, then on Tuesday they 'rolled it back' to give you the impression that you are getting a deal....so investors are sending a message to CEO Doug McMillon - We're rolling back your price.....How do you like that deal?

Now investors that have been buying WMT since it broke the highs are not very happy yet.....I mean if you liked the stock at $85 and then you liked it more at $75 - then you gotta be head over heels about it at $69.50 . Many analysts now calling for the bottom....yesterday's action as noted taking the stock back to December 2012 lows.....So - will it find support here? Will a slowing China cause more downside pressure in the stock or is that now priced in.....Stay tuned - we are sure to find out in the next couple of months......

OK - so this morning we wake up to a sea of red once again across global mkt centers..... as investors get all worked up about the global picture.......Continued China turmoil sent copper and other commodities to multi year lows....Gold on the other hand is trading higher on a 'fear trade'. WTI is down while Brent crude is flat. The dollar index under a bit of pressure - suggesting that rates will remain steady.

Asian mkts all under pressure once again as the angst builds over fear of more instability from China. At one point the Chinese mkt was down another 5% overnight - taking it below its long term support (200 dma) at 3650. Then it did a 180 and rallied back to close +1.2% as the bargain hunters moved in as talk of more support from the PBoC hit the rumor mill. Other Asian mkts did NOT respond in kind and continued to move lower. Hong Kong - a mkt this is down 18% off the highs in May is now fast approaching its own 'death cross' - causing Asian investors to tremble. And the continued selloff in Emerging Mkts is not helping the tone this morning. Japan -1.6%, Hong Kong -1.3%, ASX +1.45% and China +1.2%.

Add in today's FOMC minutes and you are ripe for the 'risk off' trading mentality. US futures are down 5.50 in early trade as you can feel the pressure build. Remember - this is the last show for the FED before the 'big September' reveal.....The minutes due out at 2 pm will keep traders on the edge of their seats.....investors on the other hand are taking it slow......What will the minutes reveal about the September meeting? The time and pace of any move has been a source of constant angst for investors/traders keeping the S&P locked in a tight range. What to do, what to do???? I am not expecting anything new.....just more of the same....teasing about higher rates at some point in the future - and I do not think that future is September.
Prior to today's Fed minutes we will get: Mortgage apps - which came in at +3.6% (good) and CPI - exp of +0.2%. Remember the FED is data dependent and they are most concerned about jobs (and by default wages) and inflation....so the next important dates to watch prior to September 17th are Friday Sept 4th for the NFP report and Sept 11th for the PPI report.....
Expect the mkt to flail around within the well defined range until the Janet decides to just pull the trigger on rates. At some point - you have to stop being the 'girl who cried wolf'.

In Europe - mkts there are all lower as declines in Asia and emerging mkts are cited as reasons for 'taking money off the table'. On the other hand - the Germans approved the 3rd bailout for Greece in a vote of 454 yays vs. 113 nays with 18 abstentions. Europeans are now sitting and waiting patiently on the FOMC mins....but we won't see that reaction until tomorrow - as European mkts will be closed when the news hits... FTSE -0.87%, CAC 40 0.58%, DAX -1.03%, EUROSTOXX -0.58%, SPAIN -0.06% , ITALY -0.36% .

Pork Tenderloin

Pork tenderloin is an easy dish to make - you can't really screw it up unless you forget it in the oven......

For this you need a couple of things -

Olive oil, Soy sauce, Minced garlic, Dijon honey mustard, s&p and the boneless pork loin....

To make the marinade - use equal parts of olive oil and soy sauce - so typically you would use 1/2 c of each. Now add 2 minced cloves of
garlic, about 5 tbls of dijon honey mustard, and a bit of s&p. Place
your pork loin in a zip lock bag and add in the marinade - if you are cooking later that night - let it sit out while it marinates for at least an hour.....if you are making it the next night - then please refrigerate.

Preheat oven to 350 degrees - place the pork loin in a glass dish with the marinade. You should cook it for about 45 mins or so.....a meat thermometer should read 145 degrees for it to be cooked to perfection.
Remove and let rest for 5 mins - then slice.

You should serve this with a baked sweet potato (dollop of butter and a splash of syrup), and a large mixed salad dressed with a red wine vinaigrette.


Buon Appetito.