Stocks are off to a weak start as earnings from technology giants Alphabet Inc. and Microsoft Corp., along with retailer The TJX Cos. Inc., weigh on the market.
The S&P 500 is slipping by 6 points to 2,183, the Dow Jones Industrial average fell 37 points to 18,598 and the Nasdaq dropped 19 points to 5,242. The S&P Retail ETF is flat at $45.97 after starting the day in negative territory.
TJX is sliding by over 2 percent to $80.70 as investors focused on the guidance rather than the earnings beat. The off-price retailer delivered second-quarter earnings per share of 82 cents versus the FactSet estimate of 81 cents. Sales were $7.88 billion versus an estimate of $7.84 billion. TJX even raised its 2017 outlook to a range of $3.39 to $3.43, but that was still below Wall Street expectations of $3.48. Full-year same-store sales guidance was lifted to a range of 3 to 4 percent from 2 to 3 percent.
Dick’s Sporting Goods Inc. stock is popping over 7 percent to $59.06. after the retailer topped its own expectations for the second quarter and also beat the analyst expectations. Net income for the quarter rose 4.65 percent to $91.4 million, or 82 cents a diluted share, up from $90.8 million, or 77 cents, a year ago. Dick’s had forecast earnings in the range of 62 to 72 cents a share and FactSet analysts were expecting earnings of 69 cents a share. Net sales for the three months ending July 30 increased 7.9 percent to $2 billion from $1.8 billion a year earlier. The FactSet estimate was for sales of $1.8 billion.
Coty Inc. stock is falling over 5 percent to $28.06 as the cosmetics giant reported a $31 million loss in the quarter due to acquisition costs. The loss per share was 9 cents, while adjusted earnings a share were 13 cents, which beat the consensus for 6 cents. Net revenues for the quarter rose 6 percent to $1.08 billion. However, skin- and body-care net sales fell 10 percent in the quarter to $693.4 million. Coty is in the process of integrating the 41 brands it acquired from Procter & Gamble.
Delta Galil Industries Ltd. sales dropped 2 percent in the second quarter to $249.5 million from last year’s $255.5 million. The soft top-line performance in the U.S. wasn’t enough to offset stronger sales in Europe and Israel. Net income in the second quarter was $7.8 million, which also dropped 16 percent from last year’s $9.3 million. Diluted earnings per share were 30 cents versus last year’s 36 cents for the same period. The company’s debt also increased as a result of the company’s acquisitions from VF Corp.
In economic news, consumer prices were unchanged as the cost of gas fell for the first time in 5 months. Apparel prices were unchanged from the previous month and up 0.3 percent for the past 12 months.