U.S. stocks lost early gains after getting a better than expected October ADP employment report, which came in at 182,000, beating the consensus number of 180,000. A smaller than expected trade deficit of $48.3 billion was also well received along with an earnings beat from Michael Kors.
The S&P 500 is down 4 points to 2,105, the Dow Jones Industrial average is down 19 to 17,898 and the Nasdaq lost 5 points to trade near 5,139.
Michael Kors stock rose 7 percent to $42.33 after the fashion firm delivered second quarter earnings of $1.01 a share, beating the estimate of 90 cents, while revenue of $1.13 billion easily beat the estimate of $1.08 billion. Investors tended to ignore that the sales gain was mostly achieved by adding new retail locations. Same store sales fell 3.4 percent, but that was better than the expected decline of 4.1 percent. Guidance was weaker than expected as well. Kors said third quarter earnings will be in the range of $1.44 to $1.48, lighter than the estimated $1.53.
HSNi stock is getting pummeled, dropping over 13 percent to $54.20 after the company missed earnings and sales estimates for the third quarter. HSNi reported third quarter net sales increased 3 percent to $864.9 million, but the consensus was for $873 million. Some of the problems occurred at the Cornerstone segment, where gross profits decreased to 37.1 percent as a result of increased promotions, including markdowns on end-of-season inventory.
Revlon stock also declined this morning, losing over 5 percent in early trading to $30.56 after profits dropped considerably. Third quarter profits came in at $6.2 million, compared to $14.6 million in the third quarter of 2014. The decrease was attributed to a higher tax expense due to a change in U.S. law relating to certain assets. The beauty company reported revenue of $471.5 million, lighter than the estimated $472 million.
Elsewhere, European markets traded higher as European Central bank president Mario Draghi told investors that the ECB would be willing to act in December. Asian markets closed higher after an update posted on the People’s Bank of China Web site referred to an article relating to the Shenzhen Stock Link. The PBOC corrected the information, saying it was an old story from May, but the markets preferred to ignore that and stayed on the high side.