U.S. stocks are moving gently higher as investors sit back and wait for Federal Reserve Board chair Janet Yellen’s final remarks before the June 14-15 FOMC meeting.
The S&P 500 is up by 4 points to 2,103, the Dow Jones Industrial Average is higher by 58 points to 17,865 and the Nasdaq is adding 5 points to trade at 4,947. The S&P Retail ETF is losing 14 cents to sell at $42.53.
Chico’s FAS Inc. continues to fight back in its battle with activist investor Barington Capital Group. On Friday, Chico’s issued a statement refuting Barington’s claims that it should receive credit for the improvements being made at the company. Chico’s also rebutted many of Barington’s other claims. This morning, Chico’s filed its definitive proxy materials and mailed a letter to shareholders regarding the upcoming shareholders meeting. Chico’s is suggesting shareholders vote for its board nominees and not for the board members that Barington has nominated. Chico’s said it vetted those nominees and found them to lack the needed skills. The stock is flat in early trading.
Burberry Group Plc’s chief executive officer Christopher Bailey took a 75 percent pay cut last year. The fashion house published its annual report and noted that Bailey received 1.9 million pounds, or $2.7 million at today’s exchange rate, versus last year’s 7.5 million pounds, or $10.8 million. Bailey also didn’t receive a bonus or incentive payments because the earnings missed the company’s goals. Bailey is also the company’s chief creative officer and there is concern that the dual role is hurting the company. However, Burberry did acknowledge that the slowdown of the Chinese economy and geopolitical events had hurt the luxury sector as a whole. The stock is gaining 7 pence to trade at 10.76 pounds or $15.52.
Wal-Mart Stores Inc. was upgraded to a “buy” from a “hold” by Jefferies following the company’s annual meeting last week. The stock is rising by 38 cents to sell at $71.25 on the news. The analyst also raised his price target to $82 from $60. The note said that the company’s investments are yielding improved store conditions resulting in better sales.
Cabela’s Inc. stock is falling by 1 percent to $51.33 after a story in Barron’s over the weekend suggested it was a good time to sell the stock. The article said that shareholders may want to lock in profits before the chain puts itself up for sale or tries to sell some assets. Cabela’s has been trying to sell its real estate and credit card businesses.
Revlon, Inc. revealed it has acquired Coty’s International Cutex business. The acquisition completes the consolidation of the Cutex brand’s worldwide operations.
Looking ahead, Vince Camuto Group reports earnings on Tuesday as Ralph Lauren Corp. holds its investor day. Lululemon Athletica Inc. and Tailored Brands Inc. deliver earnings on Wednesday.