Stocks are lifting modestly higher even as Asian markets closed lower on a drop in the Purchasing Managers Index in China.
The October Chinese PMI came in at 49.8, lower than the expected 50 due to a drop in demand for both imports and exports. The Shanghai Composite fell 1.7 percent and Japan’s Nikkei plunged 2.1 percent as lighter corporate earnings combined with no monetary easing caused the market to contract. European markets edged higher, but Kering was a weak performer in the French market.
In the U.S., the S&P 500 moved higher by 3 points to 2,082, the Dow Jones Industrial Average increased 4 points to 17,661 and the Nasdaq was lifted by 11 points to 5,064.
Coty is spending $1 billion in cash to buy Brazilian beauty company Hypermarcas S.A. The Brazilian beauty market is the third largest in the world. Coty will acquire personal care brand Monange, nail polish brand Risqu, men’s care brand Bozzano, skin label Paixo and the hair color brand Biocolor. The deal is just 3 months after Coty agreed to buy the beauty businesses from Procter & Gamble. Coty will report fiscal first-quarter earnings on Thursday and its stock is jumping over 2 percent in early trading to $29.58.
The Estée Lauder Cos. Inc.’s stock was rising over 7 percent to $86.86 in early trading after the beauty company delivered fiscal first-quarter earnings that beat expectations. Lauder achieved net sales of $2.83 billion, an 8 percent increase over last year’s $2.63 billion. Net earnings came in at $309.3 million, a 36 percent jump over last year’s $22.1 million. The makeup categories led the way with a 14 percent increase on a reported basis year over year, but a 23 increase in constant currency.
Telsey Advisory Group raised the price target on Nike to $142 from $137 and maintained its outperform rating on the stock. The stock is moving higher by 86 cents to $131. 89. Apparently the competition from Under Armour isn’t hurting Nike too much.