Diamonds and Dogs
Fertilizer had a good day. Mosaic (MOS), the world's largest producer of finished phosphate products, jumped 3% on better than expected earnings. The company sold 2.2 million tons of potash in the three months ended Sept. 30, above its forecast of 1.8 million-2.1 million tons, and up from 2.1 million tons from a year earlier. Still, the average realized price of $160 per ton of potash was much lower than $265 per ton a year earlier. Fertilizer prices have fallen steeply, triggered in part by weak currencies in importing countries such as Brazil, and excessive supplies. The company warned of a normal seasonal slowdown in the current quarter, but was optimistic of a more stable operating environment in 2017 due to lower inventories and improved demand for potash and phosphate.
Victoria Secrets not so hot anymore. The conglomerate, L Brands (LB) dropped 8% after the company cut its third-quarter forecast, citing a slowdown at its Victoria's Secret stores. The retailer said it expects to earn 40 cents per share in the third quarter, which was at the low end of its prior estimate of between 40 cents and 45 cents per share, and sharply lower than 2015's third-quarter earnings of 55 cents per share. Not the kind of news you want heading into a holiday season.
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