Why Home Depot failed in China

It seemed like a great opportunity.

In the 1990s, the Chinese government loosened regulations on its housing market, allowing its 1.2 billion citizens to own private homes for the first time since the communist revolution in 1949. Home improvement and furniture companies such as Sweden's IKEA and the U.K.'s B&Q rushed in to meet the need.

In 2006, Home Depot bought the Chinese home improvement company Home Way and its 12 stores in the country. With its booming economy and strong real estate market, China seemed like it would be an easy win for America's home improvement giant.

But by 2012, Home Depot closed the last seven of its 12 original stores. The company doesn't break out sales data by country, but data from Euromonitor shows that China accounted for only about 0.3% of Home Depot's annual net sales.

Analysts say that Home Depot failed to do its homework on the Chinese market, missing the mark on consumer needs and culture.

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GM stock cut to sell on expectation of lower guidance

Garrett Nelson at CFRA on Friday downgraded General Motors Co. GM, -0.97% stock to sell, from buy, on bearish expectations for auto sales, GM’s operating margin forecasts, and "a belief that GM is likely to lower earnings guidance," he said. Nelson also cut his 12-month price target on the shares by $8 to $32, and lowered full-year profit estimates for 2019 and 2020. GM global sales fell 10.4%, including a 7% drop for U.S. sales, "and recent data suggests that demand remains weak, particularly in China (43.5% of GM’s total vehicle sales in 2018)" Nelson said. "We expect weak sales and the negative impact of the trade war to weigh on GM’s margins." GM shares fell 0.8% on Friday. The stock has gained 35% this year, compared with gains of 15% and 12% for the S&P 500 index SPX, -0.15% and the Dow Jones Industrial Average. DJIA, -0.06%

Jobless Rate Remains Near 50-Year Low

This article was originally published on ETFTrends.com.

By Horizon Investments BIG NUMBER 3.6% – U.S. Unemployment Rate for May (Click the chart below to view and download) WHAT IT IS The May unemployment rate. While the jobs number came in light at 75,000, the unemployment rate remained near a 50-year low, indicating continued economic strength. MARKET/POLICY NOTES Indications from the U.S. Federal Reserve […]

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Cannabis stocks fall for a 4th-straight day; Hexo extends selloff after disappointing results

Cannabis stock traded broadly lower Friday, putting the sector on track for a fourth-straight loss, as Hexo Corp. shares HEXO, -4.92%HEXO, -3.71% extended losses toward a 3-month low in the wake of disappointing quarterly results. The ETFMG Alternative Harvest ETF MJ, -2.13% dropped 2.1%, as 31 of 38 components sold off, and the Horizons U.S. Marijuana Index ETF shed 3.2%. The ETFMG ETF has now lost 5.2% over the past four sessions. Among the sector’s more-active components, shares of Hexo Corp. HEXO, -4.92% dropped 4.1%, after losing 8.8% on Thursday, to put them on track for the lowest close since March 12. Elsewhere, shares of Aurora Cannabis Inc. ACB, -0.05% inched up 0.1%, after losing 4.7% over the past three days; Cronos Group Inc. CRON, -5.50% dropped 5.7%; Aphria Inc. APHA, -2.22% shed 2.0%; and Canopy Growth Corp. CGC, -1.77% declined 2.0%. The ETFMG ETF has now shed 15% over the past three months while the S&P 500 SPX, -0.17% has gained 2.7%.

Materials ETFs Have Been Marvelous in June

This article was originally published on ETFTrends.com.

The materials sector is one of the smallest sector weights in the S&P 500, but that is not preventing the group from generating big returns in June. The Materials Select Sector SPDR Fund (XLB), the largest exchange traded fund dedicated to materials stocks, entered Thursday with a month-to-date gain of 7.20%. The basic materials sector […]

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Maryland official says Baltimore resisted help after hack

A Maryland information technology official says Baltimore leaders resisted accepting help from the state for about a week after the city's computer servers were hacked.

The Baltimore Sun reports it obtained a transcript from a May 22 cybersecurity meeting where Maryland Chief Information Security Officer John Evans said there wasn't a "trusted relationship" between city and state officials before the ransomware attack. He says that kept the state from solving problems faster. The hack continues to cripple several city payment functions.

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Last week, Baltimore IT Director Frank Johnson apologized to the city council for his initial response to the hack.

City computer servers were hit by the ransomware attack May 7. City officials have refused a demand to pay the equivalent of $76,000 in bitcoin in response to the attack.

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Information from: The Baltimore Sun, http://www.baltimoresun.com

US Navy picks the first woman to lead the Naval War College after firing last president

• The Navy has named the first female leader of the U.S. Naval War College after removing the college president who is under investigation.
• The AP reported Harley was under investigation for allegedly spending excessively, abusing his hiring authority and otherwise behaving inappropriately, including keeping a margarita machine in his office.
• Visit INSIDER’s homepage for more stories.

PROVIDENCE, R.I. (AP) — The Navy has named the first female leader of the U.S. Naval War College after removing the college president who is under investigation.

Navy Secretary Richard Spencer announced Friday that Rear Adm. Shoshana Chatfield will be the new president.

Rear Adm. Jeffrey Harley was removed from his post as the college president Monday, days after The Associated Press he was under investigation and more than a year after the initial complaint was filed.

The AP reported Harley was under investigation for allegedly spending excessively, abusing his hiring authority and otherwise behaving inappropriately, including keeping a margarita machine in his office.

Spencer was at the college in Newport, Rhode Island, on Friday for graduation.

Chatfield currently leads a military command in Guam, Joint Region Marianas.