Afternoon Market Update (JCP, GAP, UNCA, IBM)

JC Penney Co JCP swung to profit in its second quarter, driven by gains in comparable sales, along with a fall in pension-plan expenses. However, the company issued weaker-than-expected projections for the third quarter and full year. Analyst Michelle Clark at Morgan Stanley mentioned, “Penney has now become a 'show me' story, in our view, and will need to deliver on forecast numbers before investors bid up shares." JCP’s shares are down about 2.5% following the results. Shares of Great Atlantic & Pacific Tea Co GAP plunged more than 5% after the company announced its plan to close 25 stores in 5 states as a part of its turnaround strategy. GAP is likely to complete the closure process by the third quarter. The company is currently operating 429 stores in 8 states comprising the A&P, Pathmark, and Super Fresh brands. Shares of Unica Corp UNCA posted a huge jump of 118% on news of its acquisition by International Business Machines Corp IBM. IBM will pay $480 million, or $21 per share, in cash for acquiring UNCA. The offer by IBM values UNCA’s shares at a premium of 120% over its Thursday closing price of $9.55 per share. The deal is likely to close later this year. Read more from Benzinga's Markets.