Cautious comments out of Ford Motors weighed on U.S. stocks this morning.
The Dow Jones Industrial Average was declining by more than 70 points to 18,395, the S&P 500 is slipping by 4 points to 2,162 and Nasdaq had been trading slightly higher. The S&P Retail ETF was dropping by 45 cents to $44.41.
Ford said its U.S. sales had slowed, Brexit would cut into profits and China was weak. That was enough to worry investors and push the indices into negative territory.
Cabela’s Inc. missed on its earnings estimate, causing the stock to fall more than 2 percent to $52.50, but the sporting goods chain beat the sales forecast for the second quarter. Total revenue for the three months ended July 2 increased 11.2 percent to $929 million from $836 million a year earlier. This easily beat the FactSet estimate for $908 million. Comparable-store sales increased 1.5 percent and U.S. comp sales grew by 2.0 percent. This was the first quarter of positive comps since the third quarter of 2013.
Sequential Brands Group Inc. delivered second-quarter revenue of $34.1 million that beat the Capital IQ estimate of $31.2 million. The second-quarter earnings per share were inline at 6 cents a share. Sequential reiterated its guidance for full-year revenue of $155 million to $160 million and net income on the range of $12.7 million to $14.6 million. The Capital IQ estimate is for revenue of $158 million and net income of $17.9. The stock is adding 7 cents to sell at $8.27.
Facebook Inc. stock is gaining by 3 percent to $127 after the social media giant delivered another strong quarter. Advertising revenue rose 63 percent to $6.2 billion. Mobile advertising accounts for 84 percent of revenue, up from last year’s 76 percent. Facebook chief executive officer Mark Zuckerberg spoke at length about the importance of video to the site. Facebook now has cash and cash equivalents of $23 billion.
Looking ahead, Amazon.com, Columbia Sportswear Company and Taubman Centers Inc. will be reporting earnings after the market close today.