Pegasystems CEO: Appease Gen D or Die in the 'Customerpocalypse'
Pegasystems CEO: Appease Gen D or Die in the 'Customerpocalypse'
Big Lots Earnings, GDP: What to Watch on Wall Street May 29
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Companies that are unprepared to meet the needs of Generation D are doomed to fail in the coming 'customerpocalypse', said Alan Trefler, author of 'Build For Change' and CEO of Pegasystems. Trefler said Generation D members have no brand loyalty and no compunction about destroying a company through their prodigious use of social media. He added that big data can also kill a business and corporate executives need to avoid interpreting data incorrectly. Finally, Trefler said Pegasystems, which was founded in 1983 and went public in 1996, is capitalizing on its ability to meet the demands of Generation D.
For Friday, May 29 TheStreet highlights two notable companies reporting their quarterly financial results as well as a few economic data to watch on Wall Street. On the notable earnings front, keep an eye on Big Lots Inc (BIG) and Genesco Inc (GCO). Both companies are scheduled to release their quarterly financial results before the market opens early Friday morning. Nashville-based Genesco is a retailer and wholesaler of footwear, apparel and accessories that operates in five segments. Discount retailer Big Lots is the last of the mega retailers to report. For the first quarter, Wall Street is expecting Big Lots to post a profit of 59 cents per share on revenue of $1.28 billion. The Ohio-based company sells a wide variety of merchandise including toys, furniture, clothing, and housewares. The closeout retailer operates roughly 1,495 stores in 48 states throughout the U.S. The company operates in seven merchandise categories. TheStreet's Jim Cramer, Portfolio Manager of the Action Alerts PLUS Charitable Trust Portfolio, says he's keeping an eye on Big Lots earnings, saying the company has been 'rumored to be in talks.' He added that the company is worth 'a lot more because it's in the sweet spot.' On the economic calendar we note the preliminary first quarter GDP, the ISM Chicago survey, and the consumer sentiment index to wrap up the week. GDP, or gross domestic product, is the broadest measure of aggregate economic activity and encompasses every sector of the economy. First-quarter GDP is expected to move from an initial reading of plus 0.2% to a contractionary negative 0.8%. For the latest financial news and updates from Wall Street, check back on TheStreet.com throughout the day. TheStreet's Kurumi Fukushima reports in New York.
All three major stock indexes finished Thursday's trading day lower, recovering from deeper losses earlier in the day. Investors expressed caution after John Williams, president of the San Francisco Fed, joined a chorus of Fed members and economists who expect a rate hike this year. Plus, oil took an unexpected turn to close slightly higher. The latest weekly data showed domestic crude inventories falling at a faster than expected pace, a positive in addressing the current supply-demand imbalance. The energy sector remained the worst performer on markets. BP (BP), Total (TOT) and PetroChina (PTR) all closed lower. News of job cuts at JPMorgan did little to boost its stock. The bank remained lower after reports the company will eliminate more than 5,000 positions by next year. And Palo Alto Networks (PANW) jumped after beating analysts’ estimates with a narrower-than-expected quarterly loss. Sales at the security software developer also topped forecasts. TheStreet's Scott Gamm reports from New York.
Stocks extended early losses in midday trading Thursday after U.S. pending home sales hit a nine-year high, concerning some investors that the latest sign of a robust housing recovery may be further incentive for the Federal Reserve to raise rates this year. Pending home sales rose in April for the fourth straight month, reaching a better-than-expected high of 112.4, according to the National Association of Realtors. That's a 3.4% rise from March and 14% higher than a year ago. Economists had expected growth of 1% in April. In earnings news, shares of Costco (COST) slipped after missing sales estimates in its third quarter. The company's earnings of $1.17 a share beat by a penny, while its revenue of $26.1 billion fell short by $530 million. Despite reporting a wider-than-expected loss, shares of Abercrombie & Fitch (ANF) rose in Thursday trading after the teen apparel retailer said it expects comparable sales to improve in the second half of the year.
In Thursday's Analysts' Actions, TheStreet highlights upgrades for Chipotle Mexican Grill, Inc. (CMG) and General Motors Company (GM), along with ratings cuts for the struggling Michael Kors Holdings Ltd (KORS). Analysts at Miller Tabak raised their rating on Chipotle to BUY from HOLD early Thursday. Analysts at the firm also increased their price target on the burrito chain to $725 from its prior $715. Miller Tabak believes the burrito chain can deliver above-average earnings growth through the year 2016. General Motors also received a higher price target Thursday morning. Analysts at Morgan Stanley upgraded the automaker to EQUAL WEIGHT from UNDERWEIGHT. The firm issued a $28 price target on GM, saying various market forces could push GM to consider more radical strategic changes. Detroit-based General Motors designs, build and sell cars, trucks and automobiles parts globally. And finally, Michael Kors had its rating slashed at two firms. Goldman Sachs analysts downgraded the fashion brand to NEUTRAL from BUY, saying it lacks sales visibility. The firm also lowered its price target by nearly half to $50 from its prior $93 price target. Similarly, analysts at Telsey Advisory downgraded Michael Kors to MARKET PERFORM from its previous OUTPERFORM. Telsey analysts set a $50 price target matching Morgan Stanley's target. The firm cited lower sales outlook for the downgrade. TheStreet's Kurumi Fukushima reports in New York.
U.S. markets started Thursday's trading session in the red despite a $37 billion mega deal in the chipmaking space. It's official. Singapore based semiconductor maker Avago (AVGO) Technologies announced a deal to buy fellow chipmaker Broadcom (BRCM) in a deal valued at $37 billion in cash and stock. Under the terms of the deal, which is expected to close in the first quarter of 2016, Avago will pay $17 billion in cash and the equivalent of $20 billion worth of Avago's ordinary shares. FIFA is facing mounting pressure from sponsors as Visa (V) threatens to end the deal. Visa said that the twin U.S. and Swiss investigations into alleged corruption that resulted in the arrest of seven soccer officials could prompt the company to end its agreeement. Visa's current runs until 2022.
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