The stock market has not been able to gain any traction today as the sellers stay in charge reacting to fallout in the oil market. Even a great Michael Kors’ earnings report wasn’t enough to cheer investors.
The S&P 500 is down 30 points to 1,908, the Dow Jones Industrial Average is dropping 264 points to 16,185 and the Nasdaq is losing 70 points to trade near 4,549.
The drillers keep pumping and the price keeps falling — heading back to $30 a barrel this morning. It’s so bad that BP’s earnings for 2015 were worse than its 2010 Deepwater Horizon catastrophe year.
Michael Kors stock is continuing to pull in buyers rising over 23 percent to $49.78 after reporting earnings per share of $1.59 for the fiscal third quarter, which beat the FactSet consensus of $1.46. Total revenue increased 6.3 percent to $1.4 billion and retail net sales increased 11.1 percent to $766.2 million driven primarily by e-commerce sales. Comparable-store sales decreased 0.9 percent. The outlook for the fiscal fourth quarter of 2016 is in the range of #1.13 billion to $1.15 billion, which is slightly lower than the FactSet estimate of $1.16 billion.
PVH Corp. stock is staying elevated trading over 4 percent to $76.72 after the company updated its earnings guidance following the market close on Monday. PVH is now forecasting earnings to be at or above $7.00 per share for the full year 2015. This is at the high end of the previously announced range of $6.90 to $7.00 a share. Chief executive officer Emanuel Chirico attributed the earnings to strength in Calvin Klein and Tommy Hilfiger International. In a statement Chirico said, “We were able to post stronger results despite a difficult U.S. retail environment, which was negatively impacted by unseasonably warm weather and decreased international tourist traffic and spending, particularly for our Tommy Hilfiger brand.”
Fitbit stock is down 2 percent to $16.31, even after Oppenheimer analysts initiated coverage with an outperform rating. The analysts noted that international expansion, a broadening product portfolio and modest margin leverage were all near-term catalysts. Investor remained concerned about competition.
Alphabet, formerly known as Google, delivered strong earnings results after Monday’s market close and the stock is climbing over 3 percent to $800. Google is now more valuable than Apple. The core Google internet business reported that its operating income rose 23 percent for the year.
Elsewhere in the market, Japan’s Nikkei closed down 0.6 percent and Hong Kong’s Hang Seng dropped 0.8 percent. Only China’s Shanghai Composite closed up 2.3 percent on rallies from the Bank of China and China Shipbuilding.
European stocks closed to the downside as pressure on oil companies and banks pulled down all the major indices. The French CAC closed down 2.4 percent to 4,283, the German DAX ended down 1.8 percent at 9,581 and the U.K. FTSE closed at 5,922, a decline of 2.2 percent.
In case you missed it, Punxsutawney Phil has forecast an early spring.