U.S. stocks are moving higher as crude oil rallies and Lululemon Athletica Inc. beat analyst estimates.
Oil rose by 2.5 percent to trade near $39 a barrel, pushing the Dow Jones Industrial Average up by 96 points to 17,731. The S&P 500 is higher by 10 points to 2,065 and the Nasdaq is rising by 30 points to 4,877. The S&P Retail ETF is adding 10 cents to sell at $46.25.
Lululemon rose by over 8 percent to trade at $66.66 as fourth quarter revenue and earnings beat analyst expectations. Net income for the quarter was $117 million, or 85 cents a diluted share, up from $110 million, or 78 cents, a year ago. The FactSet estimate was for 80 cents a diluted share. Unfortunately, the guidance was lighter than the analysts were expecting, but investors didn’t seem too concerned. Diluted earnings per share are forecast to be in the range of 28 cents to 30 cents for the quarter, but the guidance is lower than the FactSet estimate of 37 cents.
Claire’s Stores, Inc. reported preliminary unaudited fiscal 2015 fourth quarter and full year result. The specialty jewelry store delivered net sales of $402.6 million, a drop of 2.4 percent form last year’s net sales of $9.8 million. Same store sales fell dropped .2 percent. Fiscal 2015 net sales were $1.4 billion, a drop of $91.4 million or 6.1 percent from last year. The decrease was blamed on non-U.S. sales, store closures and decreased shipments to franchisees.
Sally Beauty Holdings got its price target raised to $36 from $30 by analysts at Oppenheimer & Co. “Even with the move higher lately, we still see a pathway for double-digit gains from here as management is still in the very early innings of driving change at the Sally Beauty Supply segment,” the firm said. In the last six months, the stock has climbed y 36 percent. This morning, Sally Beauty is higher by 14 cents to $32.63 in early trading.
In economic news, the ADP National employment report showed an increase in jobs by 200,000 in March, which topped the estimate of 196,000. February was revised lower to 205,000 from 214,000. Friday brings the March non-farm payrolls report, which is considered to have better jobs data.
European markets are higher across the board and Asia is mixed with Japan down, but Hong Kong and China closed higher.