Live coverage of the market's reaction to the December jobs number, an update on the potential sale of Grubhub and a disappointing announcement from Six Flags were a few of the topics covered on today's PreMarket Prep Show.
Song Remains The Same
Despite analysts expecting 160,000 jobs to be added in December, the fact that only 145,000 jobs were added did not ruffle market feathers. As of 11:00 a.m. EST, the March S&P 500 stock index futures are trading at the same level as it was ahead of the report.
GrubHub Not Exploring Sales Process
On Wednesday afternoon, it was reported GrubHub (NASDAQ: GRUB) was "considering strategic options including a possible sale." That instigated a $6 rally in the issue, rallying from $48.63 to $54.75. That was followed by a report from Dealreporter that Walmart (NYSE: WMT) was "vying for the company."
On Thursday, both hosts of the show were very skeptical the company would be sold and even less likely that Walmart would be the acquirer. As always, investors purchasing shares of the issue in hopes of a substantial payday were warned that if a deal did not come to fruition soon, the issue may relinquish some of this week's gains.
Before the opening, the company said it's "unequivocally" not exploring the sale process. As a result, the issue is deep in the red in today's session by $4.32 at $51.41.
Street Not Amused With Six Flags 8-K
In am 8-k filing, Six Flags Entertainment Corp (NYSE: SIX) disclosed that its development of co-branded parks in China has not progressed as management had expected.
After a long consolidation period following a steep decline instigated by its third-quarter miss, that's not what the Street wanted to hear.
While the issue was being covered on the broadcast it was very evident there were one or several "step down sellers" in the issue. In other words, the issue was under intense selling pressure at lower and lower prices as investors were abandoning the issue at any price available.
After a much lower open, the sellers let up for a bit and allowed the issue to rally to $37.46 before continuing its assault on the issue. At this time, it has continued to make new lows for the session with $35.10 as its current low.
Bill Santiago With A Hilarious Take On The Markets
Midway through the show, comedian Bill Santiago joined the broadcast. Bill, a listener of PreMarket Prep for years and one of its biggest fans, joined the crew and provided extremely humorous commentary on the markets.
At 8:35 a.m. EST on Monday, Ryan Craver, retail expert and founder of Commerce Capital will be our guest with an in-depth look at the retail sector.