A combination of rising crude oil prices and a better-than-expected jobs report helped U.S. stocks to open higher on Wednesday.
The National Employment Report came in with an increase of 179,000 jobs versus the expected 165,000 and oil pushed back to $39.62 a barrel.
The Dow Jones Industrial Average gained 3 points to trade at 18317, The S&P 500 is flat at 2,157 and the Nasdaq is rising by 4 points to 5,142. The S&P Retail ETF sliding by 27 cents to sell at $43.55.
Kate Spade & Co. stock fell over 19 percent to $16.24 in early trading after the handbag company delivered disappointing second quarter earnings. Kate Spade called the current retail landscape challenging and blamed weak tourism and too much discounting. The company recorded earnings per share of 19 cents, which beat analysts’ estimate for 14 cents. Revenue was $320 million, which also topped the estimate for $318 million. But it was the lowered guidance that hit the shares. Kate Spade said that its projections for the rest of the year were for net sales between $1.37 billion and $1.4 billion. Analysts had pegged the number at $1.41 billion.
Crocs Inc. is also falling this morning following its less-than-stellar earnings. The stock sold off by 17 percent to $9.10 after the shoe company reported earnings per share of 13 cents, which were short of the FactSet estimate for 15 cents. Sales of $324 million also missed the estimate for sales of $348 million. Revenues decreased 6.3 percent from last year. Crocs projected that its third-quarter revenue should be in the range of $245 million to $255 million, which is a big drop from last year’s third-quarter revenue of $274 million.
E-commerce brand Shopify Inc. beat analysts’ estimates for its second quarter causing the stock to move higher by over 1 percent to $34. The company reported a loss of 4 cents a share for the quarter, but that was better than the forecast loss of 8 cents a share. Revenues were $86.6 million, also better than the expected $80.63 million. Gross merchandise volume increased 106 percent to $3.4 billion. Shopify raised its full-year revenue guidance to $361 million to $367 million from its previous range of $337 million to $347 million. The company is benefiting from adding more merchants.
Fitbit Inc. stock is also rising by over 10 percent to $14.46 on strong second quarter results. Fitbit delivered revenue of $587 million versus the expectations of $578 million and a 46 percent increase over last year. Unit sales growth jumped 28 percent over last year’s increase of 24 percent. Fitbit said over two-thirds of the activations were new customers, with the remaining third previous owners. Fitbit expects revenue for the full year of 2016 to be in the range of $2.5 billion to $2.6 billion.