Despite weak economic reports over the weekend, the Chinese stock market inexplicably rose 4.9 percent today. Trade data and dropping factory prices — the worst in 6 years — seem to contradict a soaring stock market, but that didn’t stop investors from pouring money into the market.
Meanwhile, European stocks rose on the heels of China’s gains as well as rumors of a third bailout package for Greece. Back here in the U.S., gold fell for a seventh consecutive week. Stocks opened higher with the Dow Jones Industrial Average jumping 150 points at the open to 17,533.
Iconix Brand Group Inc.’s stock is up almost 4 percent to $15.51 on Monday morning after getting pounded on Friday when it lost 23 percent to trade at $14.92. Iconix delivered its second-quarter financial results today, and missed earnings estimates. The apparel company reported adjusted earnings of 45 cents per share, much lower than the anticipated 68 cents earnings per share. Iconix guided to earnings in the range of $2 to $2.15 for the full year and revenue in the range of $410 million to $425 million. Iconix has struggled as of late with its ceo resigning on Friday following a year in which the stock has declined of 65 percent. Wunderlich Securities cut its rating to a hold on Friday and said it had given up on Iconix.
In the department store segment, Dillard’s stock rating was cut to underweight from neutral by J.P. Morgan this morning. The price target was lowered to $89 from $114. The stock has plunged 24 percent over the past 3 months to trade at $97.67. The analyst cited underinvestment in omnichannel and negative foot traffic. The report also commented on the increased mall competition with fierce promotional activity and rising wage expenses. Dillard’s stock is trading sideways at the open near $97.68.
Alibaba is getting a lift this morning after announcing it was taking a $4.63 billion stake in Suning, an electronics store chain based in China. Suning’s network covers 90 percent of China with eight national distribution centers and 57 regional distribution centers. Alibaba is up 1 percent to trade near $79.67.