A Bad Time for Movado

Wall Street got wound up about Movado (MOV) after the maker of luxury watches warned that third-quarter results would sharply miss expectations because of slow growth in the industry and brand weakness overseas.

For the third quarter, Movado expects sales of $188.6 million, below the $189.7 million in the year-earlier period and the $218 million expected by analysts polled by Thomson Reuters. Movado also expects per-share earnings of 86 cents to 87 cents, below the Thomson Reuters estimate of $1.13.

As for full-year forecasts, Movado now expects to earn between $1.80 and $1.85 a share on revenue of $585 million to $590 million, vs its previous outlook of $2.44 a share on revenue of $640 million.

Movado is slated to post third-quarter results on Nov. 25.

Heading into the closing bell, the stock dropped 28.7% to $27.43 after earlier falling as much as 35% to $25.12, its lowest point in more than two years. At its lowest Friday, the stock was down 47% from its 12-month high.

As the WSJ reports:

Watchmakers have been pressured by a lackluster economy in Europe and slowing sales in Asia, which had been a source of strength. In particular, sales in Hong Kong—the world's biggest watch market—have weakened because of pro-democracy protests that shut much of the city.

Adding to the industry's headaches is the looming smartwatch from Apple Inc. which is expected to compete for consumer attention.

"The overall watch category is experiencing slower growth and retailers are focusing on driving improved productivity. Moreover, certain of our brands did not perform as well as planned, including Movado in international markets," Chief Executive Efraim Grinberg said.

Coal Stocks Get a Post-Election Bounce

If any sector needed a Republican victory to reverse its fortunes it was the coal miners, where stocks like Alpha Natural Resources (ANR), Walter Energy (WLT), Arch Coal (ACI) and Peabody Energy (BTU) have lost more than 45% so far this year.

Well, they got what they wanted. With a Republican victory, there’s a good chance that the Congress will “slow down EPA rules on coal,” Strategas Research Partners’ Daniel Clifton said in an interview last month, rules that have limited its use by utilities. A Republican Congress will also have the votes to push through approval for the Keystone XL pipeline. if that happens, it should free up some rail transport for coal, Clifton said, a problem that Peabody Energy recently said had limited its coal sales.

The coal stocks are already acting as if an improvement in their fortunes is fait accompli. Shares of Alpha Natural Resources have jumped 8.4% to $2.26 at 11:13 a.m. today, while Walter Energy has gained 6% to $2.67 and Peabody Energy is up 3.7% to $10.67. Arch Coal has ticked up 0.2% to $2.26.

GM recalling 56,000 Saturns

In some Saturn Auras, a gear shift cable can break causing the gear selector not to work.

NEW YORK (CNNMoney) General Motors said Tuesday that is recalling 56,000 Saturn Aura sedans in the United States.

The automaker said the cars could roll away when drivers think the vehicle is in Park because of a flaw that sometimes incorrectly displays the gear in the gear selector.

The problem can occur in cars equipped with a four-speed automatic transmission. A gear shift cable can break even while the vehicle is being driven. If that happens, the driver would be able to move the gear selector, but unbeknownst to him, the car would not have shifted into another gear, such as Reverse of Park.

If, after stopping the car, the driver is unable to shift into Park, the vehicle could roll away if the parking brake has not been applied.

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GM is currently aware of 28 crashes and four injuries resulting from this problem but no deaths.

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The vehicles being recalled are all from model years 2007 and 2008. Owners will be asked to take their vehicles to a dealership to have the gear shift cable assembly replaced.

Since its recall of 2.6 million compact and sports cars over a problem with ignition switches, a problem the automaker had known about for 10 years, GM has been facing increased scrutiny over its response to safety issues. The automaker has pledged to respond more quickly in the future when recalls are needed. GM has announced a number of recalls since then including a recent one of 52,000 SUVs for a fuel gauge issue. Still, GM was accused of being slow to respond to a power steering issue in Saturn Ions.