U.S. stocks are moving higher this morning as October retail sales in China rose 11 percent year-over-year, but Macy’s earnings were a big disappointment.
Alibaba said it surpassed its 2014 Singles’ Day sales in just 14 hours, causing that stock to jump over 2 percent. China’s Shanghai Composite rose 0.3 percent on the news and the Nikkei improved by 0.1 percent.
The S&P 500 moved higher by 4 points to 2,085, the Dow Jones Industrial Average rose 39 points to 17,797 and the Nasdaq was up 12 points to 5,096. Happy Veteran’s Day in the U.S., which means the bond market is closed and trading in the equity markets will be on the light side.
Macy’s stock dropped by over 10 percent to $41.94 after the company reported a decline in revenues and lowered guidance. The strong dollar hurt the company’s tourist center stores as international shoppers stayed away. Sales did not improve from domestic customers either. Earnings per share for the third quarter were 56 cents, beating the FactSet estimate of 55 cents a share. But sales came in at $5.8 billion, lighter than the estimate of $6 billion. Macy’s said its 2015 earnings per share will now be in the range of $4.20 to $4.30, a big drop from the previous range of $4.70 to $4.80.
Luxottica stock is moving higher after Macy’s also revealed it would partner with the group to open LensCrafters in as many as 500 stores over the next three years. The stock was up 1.26 percent to 64.45 euros or $67.88. Luxottica has already placed 670 Sunglass Hut locations within Macy’s stores and as a result has tripled the sunglass business over the past six years. The first LensCrafter store will open in April with the goal of opening 100 locations by the end of the year.
J.C. Penney stock was up over 6 percent in premarket trading, but once the market opened, it slid 5 cents to trade near $8.61 after the retailer agreed to a lawsuit settlement and revealed improved same-store sales. The department store reached an agreement to settle a false advertising class action lawsuit that was brought in California for $50 million. Separately, J.C. Penney said comparable same-store sales increased 6.4 percent and that gross margin and earnings performance exceed its expectations in the third quarter.
European indices were higher across the board as the U.K. unemployment level slipped to 5.3 percent from 5.4 percent. The French CAC saw gains from L’Oreal and Louis Vuitton.