U.S. stocks are trading to the downside even though automakers are reporting strong October sales. The S&P 500 slid 4 points to 2,099 in early morning trading, while the Dow Jones Industrial average fell 23 points to 17,810 and the Nasdaq was down 15 points to 5,111.
Consumers were apparently spending money on cars and not clothes in October. Fiat reported an increase of 14.7 percent in car sales over last year and Toyota looks to have had double-digit increases. Nissan sales rose 12.5 percent and Mitsubishi sales jumped 19.8 percent.
Markets in Asia finished mostly higher Tuesday, with Japan closed for a public holiday. The European indices were mostly lower with the U.K.’s construction data for October coming in below expectations.
Hugo Boss stock dropped after the company reported that third quarter net income fell 23 percent. U.S. sales fell 10 percent and Asia-Pacific sales dropped 12 percent. Europe posted a 4 percent gain, with the U.K. delivering the best showing with double-digit growth. Men’s wear sales were down, while women’s wear sales were up. The stock declined over 1 percent to 92.73 euros, or $101.68, in current exchange rates and year-to-date the stock has slid over 8 percent.
American Eagle stock is jumping over 8 percent in early trading to $16.56 after the company revealed it acquired the upscale men’s wear brand Todd Snyder for $11 million in cash. But it seems the business that Snyder developed called Tailgate was the real target. American Eagle sees a large rollout potential for Tailgate, with two to three stores planned for next year and eventually growing to 200 stores. The chain focuses on vintage looking T-shirts.
Coty is moving its executive management offices to London, but will remain incorporated in Delaware. The beauty company will create a new department called growth and digital. The new organizational structure will be category-focused with three divisions. Coty Luxury will house fragrances and skin care, Coty Consumer Beauty will focus on color, hair products and body care and then Coty Professional will focus on salon owners in both hair and nails. Coty’s stock is rising 16 cents to $29.82 in early trading, a day after the company revealed it was buying several Brazilian beauty brands for $1 billion.
National Retail Properties reported operating results for the third quarter with funds from operations (FFO) and recurring FFO up 11.5 percent. Portfolio occupancy was at 99.1 percent, better than the previous quarter rate of 98.8 percent. The company sold five properties for $8.2 million, resulting in $1.9 million in gains. Even though the company beat earnings estimates, the stock was down over 1 percent to $38.01.
Amazon opened its first brick-and-mortar store in Seattle. Amazon Books will sell physical books as well as give customers a chance to try out Amazon devices like the Kindle and Fire TV. Many are commenting on the irony of Amazon moving into an area where a Barnes & Noble had previously existed. Amazon’s initial beginnings put many book stores out of business. Amazon’s stock was adding 57 cents to trade near $629.05.