U.S. stocks are rising this morning, in contrast to the heavy selling seen in China’s Shanghai Composite Index, which today dropped 6.4 percent.
The S&P 500 is up 14 points to 1,891, the Dow Jones Industrial Average is climbing 146 points to 16,032 and the Nasdaq is up 23 points to 4,540. Gold prices are moving higher again, up $7.60 to $1,112 an ounce and almost hitting a three-month high.
Coach’s stock is up over 7 percent to $32.76 in early trading after the handbag and accessories giant delivered fiscal second-quarter earnings that beat analyst expectations. Estimates for the quarter were earnings of 66 cents a share, while Coach reported 68 cents. Net sales for Coach Inc. totaled $1.27 billion for the quarter, which was 4 percent higher than last year’s $1.22 billion. Coach is maintaining its outlook for fiscal 2016, but raising its consolidated operating income outlook.
Procter & Gamble stock is up 2 percent to $78.48 after delivering its second-quarter fiscal earnings of $1.12, beating analyst estimates of 98 cents. The strong dollar caused revenue to drop 9 percent to $16.92 billion and the company said that looking ahead it expects to continue to see pressure on revenue due to the dollar’s strength. Organic sales increases in personal care and the super premium SK-II skin care brand were offset by organic sales declines of the Olay brand.
Buckle stock is up 26 cents to $26.99 after announcing that Patricia Whisler, the retailer’s senior vice president of women’s merchandising is retiring after 40 years with the company. The planned retirement should take place later this spring. Buckle stock is down 47 percent for the past year as sales have disappointed investors.
Moody’s downgraded Charlotte Russe Inc.’s corporate family rating and senior secured loans due 2019 to B3 from B2. The probability of default was also downgraded one notch to B3-PD and the outlook was changed to “Negative.” Moody’s believes Charlotte Russe will be challenged to improve its operating performance sufficiently to bring the credit metrics back in line with a B2 rating over the next one to two years.
The Retail Economist-Goldman Sachs Weekly Chain Store Sales Index slid 0.4 percent for the week ended Saturday, Jan. 23 compared to the prior week. Year-over-year, sales showed a 3.2 percent gain. Michael P. Niemira, chief economist of The Retail Economist LLC, said that despite “one of the worst Nor’easter snowstorms on record in the East, sales held up better than might have been expected. One reason for this was that consumers in the East seemingly stocked up on staples and shopped for winter gear ahead of that well-advertised storm.”
Johnson Redbook retail sales for the week of Jan. 23 were up 1 percent with the East Coast seeing a boost in sales of winter goods. Unfortunately, with most of the product being discounted it won’t result in higher margins. Also, the prior week was up 1.4 percent so sales are dwindling as the month drags on.
Elsewhere in the market, European stocks were trying to move up slightly as the French CAC and the German DAX were both up 0.3 percent and the U.K. FTSE was unchanged. Some mining companies were moving higher as gold prices begin to creep up.
Looking ahead, the Federal Open Market Committee meeting begins today and continues through Wednesday. No change in rates is expected at this meeting.