The U.S. markets rallied as positive news came out of Europe and China’s markets remained closed. The Dow Jones Industrial Average moved higher by 76 points to 16,427 while the S&P 500 jumped 8 points to 1,957 and the Nasdaq was moving higher by 13 points to 4,763.
U.S. stocks followed the lead of the European markets, which moved higher across the board. European Central Bank President Mario Draghi suggested that the bank would continue its quantitative easing for longer. Euro zone business activity accelerated at its fastest pace in four years. The Euro zone August PMI of 54.4 beat expectations and while July retail sales of 0.4 percent missed estimates, they were better than the prior month of a 0.2 percent decline and 2.7 percent better than last year.
Apparently a later back-to-school season did not hurt earnings at Genesco. The retailer delivered net income of $8.5 million, or 36 cents a share, for the second quarter of fiscal 2016, beating last year’s earnings of 34 cents a share and topping analyst expectations of 24 cents a share. Net sales of $656 million increased 7 percent over last year and were higher than the FactSet consensus of $651 million. Genesco enjoyed a 4 percent increase in The Journeys Group, an 8 percent rise in The Lids Sports Group, an 8 percent increase in the Schuh Group and a 10 percent jump in the Johnston & Murphy Group. Genesco stock opened flat on the news.
Lands’ End beat analyst estimates on its second-quarter earnings, but the results were down from last year. Net income for the quarter was $7.5 million, down from $11.8 million for the same period last year. The earnings per share were 23 cents, better than analyst expectations of 7 cents. Net revenue decreased 10 percent to $312.4 million, but that topped the FactSet consensus of $305 million. Customers did not respond well to the spring collection or the reduced promotional approach. The stock increased by 1.4 percent to $26.50 in early trading.
Lululemon stock is stretching its price higher this morning after Wedbush added the stock to its best ideas list. The analyst maintained the outperform rating and believes that there is going to be upside to the earnings in the second half of the year. Lululemon stock rose 1.7 percent to $66.56 on the news.
PVH is also moving higher by 0.6 percent to $118.95 after the company said it would be buying back the licensing agreement for the Calvin Klein platinum label held by CK21. The Calvin Klein Asia business will take over a number of CK21’s freestanding Calvin Klein stores.
In economic news, the weekly initial jobless claims came in at 282,000, higher than the Briefing.com consensus of 273,000. Jobless claims have risen in five of the last six weeks. The July trade balance had a deficit of $41.9 billion versus the consensus of $42.7 billion. Imports of consumer goods fell by $2.6 billion.