U.S. stocks are moving higher as retailers hope that Cyber Monday will play out as hoped. The S&P 500 is rising 1 point to 2,091, the Dow Jones Industrial Average is higher by 21 points to 17,822 and the Nasdaq is gaining 13 points to trade near 4,695.
Target reported a successful start to its Black Friday weekend with a strong turnout in stores on Thanksgiving Day and record-setting online sales. Popular gifts included Star Wars and Apple products. Top sellers included iPads, with Target selling a device every second throughout the day on Thanksgiving. Televisions, gaming consoles and movies were also big sellers. Target’s stock had risen in pre-market trading but was down 68 cents in the early session to trade near $72.82.
Amazon’s stock is also rising on comments from Dave Clark, senior vice president of operations and customer service, that today’s Cyber Monday would be its biggest ever. On Bloomberg Television, Clark stressed the company’s infrastructure built over 20 years as hard to beat. He also spoke about one-hour delivery and future drone delivery. As far as Monday goes, Clark said, “It’s going to be our best day ever.” The stock is up $3.40 to trade near $676.
Fitbit got a rating upgrade out of Barclays to overweight from equal weight. The analyst is sticking with the target price of $49. The analyst wrote that “FIT is the fastest-growing meaningful consumer company in the world at 140 percent+ revenue year-over-year in 2015.” Fitbit needed this endorsement, as the wearable tech company’s stock price has fallen by more than 30 percent in the past month over fears that it couldn’t compete with the Apple Watch. But the Fitbit device is turning into a hot holiday present and the stock is up almost 3 percent to trade near $28.74.
Lululemon is not enjoying Cyber Monday, with the stock falling over 6 percent to $49.15 after FBR Capital downgraded the yoga apparel company to underperform from market perform and slashed the target price from $55 to $42. The analyst believes that supply chain issues will hurt the company’s gross margin.
Under Armour’s stock is also sliding, by over 4 percent to $86 and change, after Piper Jaffray got the target price a holiday markdown from $97 to $88. The analyst kept the neutral rating on the stock. The reason for the price target cut was too much promotional activity in apparel and footwear. The analyst still believes in the company’s long-term growth prospects.
Elsewhere in the world, Asian markets closed out on a mixed note. The real drama was with the Chinese Shanghai Composite which fell over 3 percent during the trading session, only to get saved in the last hour of trading by unconfirmed government intervention.
The European indices were higher across the board with consumer names lifting the U.K. FTSE by 1 percent, the French CAC enjoying strength in exporters and financials and the German DAX seeing solid gains from the automakers.
Looking ahead to the rest of the week, retailers will continue to roll out earnings with Ascena Retail on Tuesday and PacSun on Wednesday. Thursday will see earnings from Sears, Rue 21 and Aéropostale to name a few. On Friday, the market will get the November nonfarm payrolls report.