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MARKETS LIVE BLOG:

S&P 500 SLIPS BELOW 5,000; NASDAQ SINKS ON TECH DRAG

Nvidia tumbles 10%, Amazon loses more than 2% while Apple ends 1% lower

Today's Research Reports on Stocks to Watch: Nordstrom and Costco

ACCESSWIRE

NEW YORK, NY / ACCESSWIRE / October 9, 2017 / Shares of Nordstrom closed in the red on Friday with concerns over how the Nordstrom family will take the high-end retailer private. Shares of Costco also closed down despite a solid fourth-quarter report and announcing a new same-day grocery delivery service. It may have been Jim Cramer's comments about the company's aloof remarks about Amazon's acquisition of Whole Foods that had traders feeling nervous.

RDI Initiates Coverage on:

Nordstrom, Inc.
http://www.rdinvesting.com/report/?ticker=JWN

Costco Wholesale Corporation
http://www.rdinvesting.com/report/?ticker=COST

ADVERTISEMENT

Nordstrom, Inc.'s shares closed down 1.09% on Friday with nearly 1.4 million shares traded. Traders were reacting, albeit modestly, to the news that the Nordstrom family is scrambling to come up with more equity in order to take the company private. The original plan was to put up the family's 31% stake that had a value of $2.5 billion on August 1st according to The Wall Street Journal. Leonard Green & Partners was to supply another $1 billion in equity. According to the Journal report, the banks that would fill the rest, having to sell around $6.5 billion, are worried it won't be possible before the holiday season and that this would have to wait until 2018.

Access RDI's Nordstrom, Inc. Research Report at:
http://www.rdinvesting.com/report/?ticker=JWN

Costco Wholesale Corporation's shares closed down nearly 6% on Friday with roughly 18 million shares traded. It was an odd trading day for the company because shares sank despite good numbers reported late Thursday. Costco released its fourth-quarter earnings report that revealed net income of $919 million, or $2.08 per share and total revenue of $42.30 billion. Net income increased from $779 million or $1.77 per share a year ago while revenue rose 15.7%. They were good numbers, but traders were uneasy over Costco's response over Amazon. The company's CFO said, "As it relates to the publicity and the news and the noise around Amazon and Whole Foods, all we can do is perform." Jim Cramer of CNBC was one to not let this comment go on "Squawk on the Street" and said, "It was very disturbing because it basically just says, 'Amazon is coming for [Costco], and [Costco doesn't] even care what [it] say[s].' "Investors do not want to pay "25 times earnings for a company that is up against Amazon," Cramer remarked. In other news, Costco also announced that it would now be offering same-day grocery delivery through Instacart. For orders valuing less than $75 there will be a delivery fee with the service that is available in "most metropolitan areas."

Access RDI's Costco Wholesale Corporation Research Report at:
http://www.rdinvesting.com/report/?ticker=COST

Our Actionable Research on Nordstrom, Inc. (NYSE: JWN) and Costco Wholesale Corporation (NASDAQ: COST) can be downloaded free of charge at Research Driven Investing.

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Disclaimer: This article is written by an independent contributor of RDInvesting.com and Nadia Noorani, a CFA® charter holder, has provided necessary guidance in preparing the document templates. RDInvesting.com is neither a registered broker-dealer nor a registered investment advisor. For more information please read our full disclaimer at www.rdinvesting.com/disclaimer.

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SOURCE: RDInvesting.com