U.S. stocks are dipping into the red territory as many investors believe that with the strong jobs report on Friday, there will be a rate hike in December. The Dow Jones Industrial Average declined 72 points to 17,838, the S&P 500 fell 8 points to 2,091 and the Nasdaq slipped 23 points to 5,123.
A weaker yen and the hope of some economic stimulus pushed Asian markets higher. Japan’s Nikkei closed up 2 percent and the Chinese Shanghai Composite finished up 1.6 percent. The European markets traded lower across the board as the Eurogroup is expected to withhold a 2 billion euro bailout payment to Greece due to a disagreement over foreclosure rules. Lufthansa flights have been canceled due to a cabin crew strike.
Iconix is trying to regain some of the value it lost on Friday as the stock moved up 18 percent to $8.18. The brand company reported third-quarter earnings of 33 cents a share, which was 12 cents better than the estimate of 21 cents a share. However, net income came in at $4.4 million, an 89 percent decrease from last year’s $38 million for the same time period. While Iconix issued in-line guidance for fiscal year 2015, it also issued downward guidance for fiscal year 2016. The company now expects earnings-per-share in the range of $1.35 to $1.50, which is lower than the estimate of $1.99. The stock lost 57 percent of its value last Friday when the company gave a heads up on the earnings, dropping $9.24 to close at $6.90.
Luxury brands just got another kick in the ribs as word is coming out that Wall Street bonuses could be lower by 5 to 10 percent this year. Bonus time always means there would be new houses, apartments and, of course, lots of luxury items. It’s the first time since 2011 that compensation is likely to drop. Credit Suisse may cut bonuses by as much as 60 percent, while private equity firms may actually lift their bonuses.
The online travel Web site Priceline reported that its third quarter travel bookings increased by 7 percent year over year. Net income was $1.3 billion, a 10 percent increase over last year. Unfortunately, soft guidance pulled the stock down by over 5 percent to $1,369.58. Looking ahead to the fourth quarter, Priceline said its earnings would be between $11.10 and $11.90 a share, far below the estimate of $12.42.