It’s the last trading day of August and stocks are dipping into negative territory.
The S&P 500 is lower by four points at 2,171, the Dow Jones Industrial Average is down by 39 points to 18,415 and the Nasdaq is slipping by 12 points to trade at 5,210. The S&P Retail ETF is adding 15 cents to sell at $44.65.
Crude oil continues to be under pressure, dipping down to $45.95 a barrel. So far, oil has dropped 3.6 percent in the past week. In economic news, the ADP employment report showed an increase of 177,000, which beat the estimate for an additional 170,000 jobs.
Chico’s FAS Inc. late Tuesday reported a solid second quarter of earnings and sales that beat analysts’ expectations. The stock rose over 12 percent to $12.68 in early trading. Net sales were $635 million, which was lower than last year’s $685 million, but better than the FactSet estimate for sales of $632 million. Earnings of 25 cents a diluted share also topped the FactSet estimate of 22 cents, although this was 1 cent shy of last year’s earnings. Chico’s is in the process of cutting costs and reorganizing its structure. The company also said that Chico’s brand president Cynthia S. Murray had left and it is looking for a successor. The retailer guided investors to a low single-digit comparable-sales decline for the second half of the year. But investors decided to look past the job cuts that the company said were coming and instead focused on the work to streamline the company’s organization.
Authentic Brands Group was part of a group that submitted a bid to acquire at least 229 Aéropostale stores, potentially saving the retailer from liquidation. The bidding group also includes Simon Property Group and retail store liquidators Gordon Brothers Retail Partners and Hilco Merchant Resources. Earlier this week, Great American Group and Tiger Capital made a bid for the stores. As of yet, that consortium hasn’t indicated if it will raise its offer.
G-III Apparel Group Ltd. stock continues to sell off following its second-quarter earnings report. G-III is falling over 7 percent to $30.79 in early trading. The stock dropped over 20 percent on Tuesday after the apparel brand disappointed investors.