Stocks are opening nearly flat to slightly down as earnings season underwhelms investors. Factory orders for June came in at up 1.8 percent, in line with Briefing.com’s estimate.
Coach stock opened higher by 7 percent to trade at $32.49 after reporting earnings that beat earnings and revenue estimates. Coach earned $0.31 a share for the second quarter and revenue of $1 billion. Analysts expected $0.29 and revenue of $973 million. Coach managed to hit the numbers due to its purchase of Stuart Weitzman that added $43 million. However, sales declined for the eighth straight quarter. Coach said on the conference call that they believe the way out of this slump is through differentiation. Coach also said it expects to return to positive comps by the end of fiscal 2016, but doesn’t expect to return to growth until 2017.
China’s e-commerce giant Alibaba named Michael Evans president. Evans had been an independent member of the Alibaba board since the initial public offering and was a former top Goldman Sachs executive. Evans will focus on the international expansion strategy. The stock has struggled for most of the year over concern about the strength of the Chinese consumer and economy. The stock is up slightly this morning to $78.23, but has dropped16 percent for the past year to trade at roughly $77.99.
After the market close, Boot Barn will report its first quarter of fiscal 2016. Analysts expect earnings of $0.11 on revenue of $96 million. Boot Barn operates 174 stores specializing in western wear and of course, boots.
An Illinois-based Native American arts and crafts store lost a $35 million suit accusing Peter Stone Company of falsely marketing a jewelry line as authentically Native American. The litigation cost the jeweler $100,000 in legal fees.
Greece’s banks continue to face heavy selling as the stock market stays open. Shares of Greek banks have hit limit down in trading once again. China’s Shanghai composite ended the day higher by 3.7 percent as regulators keep fighting short sellers.