Stocks are trading modestly lower as the post-Federal Reserve rally seems to have lost steam.
The S&P 500 is slipping by 7 points to 2,169, the Dow Jones Industrial average is down by 38 points to 18,353 and the Nasdaq is off by 17 points to trade at 5,321. The S&P Retail ETF is higher by 12 cents to sell at $43.93.
The Finish Line Inc. beat analyst expectations with its fiscal second-quarter sales results, but inline earnings and no raised guidance caused the stock to fall more than 4 percent to $23.02. The sneaker retailer delivered revenue of $509.4 million, beating the estimate of $495 million. Diluted earnings were only 53 cents or inline with the expectation of 53 cents, while adjusted earnings were 55 cents. Comparable-store sales increased 5.1 percent. Chief executive officer Samuel Sato said the company’s Macy’s Inc. business had a strong quarter with exceptional growth in kids’ and digital sales. Sato said the Adidas business remains on fire. Nike sales were led by Huarache Max air and Under Armour Inc.’s top sales came from the Curry shoes. Finish Line closed five locations during the quarter, bringing the year-to-date total to 11 store closures.
Nike Inc. filed a patent for a device that uses steam to custom fit its sneakers to the shoe owner. The steam device can custom fit the Flyknit sneakers, which are wildly popular – bringing in $1 billion a year for the franchise. Flyknits are already known for their comfortable fit. The steam machine was created by one of Nike’s shoe developers. It steams the shoe and then the buyer puts on the shoe immediately. The fabric then shrinks to a custom fit. Nike stock was trading lower in sympathy with Finish Line and was off by 18 cents to sell at $55.23.
United Parcel Service Inc. began testing drone service in rural Massachusetts. The delivery company is trying out the drones for delivery of medical supplies for now, but with the hopes that it can eventually get federal approval for regular deliveries. The drone delivered a package from Beverly, a town 25 miles north of Boston, to Children’s Island, a kids’ summer camp three miles off the coast. The drone made the journey in eight minutes. The stock is slipping by 39 cents to sell at $109.28.
PVH Corp. appointed Judith Knox to its board effective Dec. 7. Knox is currently the president of the global foods category at Unilever. Knox will serve on the compensation committee. The stock is rising by 68 cents to trade at $109.49.