Stocks trimmed early pre-market gains as economic data on income and spending was a little lighter than expected. September’s personal income was expected to be up 0.2 percent and instead was only up 0.1 percent. Personal spending had been estimated at an increase of 0.2 percent, but was only up 0.1 percent.
The personal income increase was the smallest increase since March and September’s spending. The S&P 500 was up modestly 1 point to 2,090, the Dow Jones Industrial average moved higher by 1 point to 17,000 and the Nasdaq was lifted by 5 points to 5,079.
Columbia Sportswear stock was ahead in early trading moving higher by 15 percent to $62.51 after outdoor apparel brand delivered earnings per share of $1.28, easily beating analysts estimates of $1.09 a share. Net sales increased 14 percent to a record $767.6 million. The company attributed the gains to better supply chain execution with timely delivery of fall orders. The company forecast 2015 net sales to grow approximately 10.5 percent to more than $2.3 billion.
One thing consumers are apparently still buying are Uggs boots. Deckers stock is jumping more than 8 percent to $55.96 this morning after the shoe company delivered fiscal second quarter revenue of $486.9 million, a bit better than the estimated $486 million. Net sales increased 5.4 percent to $506.2 million, however diluted earnings per share was $1.11 versus last year’s $1.17. Uggs sales increased .9 percent to $421.1 million, but Teva net sales dropped 13.6 percent and Sanuk net sales declined 9 percent. The company forecast that its fiscal 2016 revenues should be roughly $2.01 billion, a 10.5 increase over last year.
Colgate-Palmolive delivered its fifth straight fall in quarterly sales due to weak demand in its strongest region in Latin America and a strong dollar, which caused sales to fall by 11 percent. Overall the company reported net sales of $3.9 billion for the third quarter, a decrease of 8.5 percent. Net income in the third quarter was $542 million on earnings per share of 59 cents. The stock was sliding 2 percent to $67.80.
Target’s stock was getting a boost as the company is coming out early and aggressively for the holidays. The low-priced chain said it was bringing back free shipping and returns for the holidays and new curbside pickup services. The stock added 13 cents to trade at $76.40.
Quiksilver’s bankruptcy judge approved the company to access up to $175 million in order to keep its operations going as it goes through its restructuring. The company has been closing stores and is looking for a potential buyer.
Elsewhere markets in Asia closed mostly lower after the Bank of Japan decided to leave its monetary policy unchanged. The Chinese yuan had its biggest gain since 2005 as the People’s Bank of China said it was considering a trial program in Shanghai to allow the buying of overseas assets. China wants the yuan to be included in the IMF’s reserve currency basket and this is another step in the process.
Europe’s indices traded lower across the board. Standard & Poor’s said Britain’s credit rating could be cut if it decides to leave the European Union. The influx of migrants is causing many Brits to want out of the EU ahead of its referendum at the end of 2017. The “Brexit” would cause a cut of as much as two notches.
