Stocks were trading in negative territory as economic trade data out of China worried traders and retailers underwhelmed investors with poor sales.
The Dow Jones Industrial average is dropping by 137 points to 16,935, the S&P 500 is down by 20 points to 1,981 and the Nasdaq has dropped by 46 points to 4,661. The S&P Retail ETF is losing 16 cents to sell near $44.90.
Shares of Dick’s Sporting Goods tumbled after the retailer missed earnings and sales estimates because the warm winter hurt sales. Net income for the fourth quarter was $128 million, or $1.13 cents a diluted share, down from $155 million, or $1.30 cents, a year ago. This was at the low end of the guided range of $1.10 to $1.25 a share and missed the FactSet estimate of $1.15. The stock is dropping over 3 percent in early trading to $43.
Perry Ellis International Inc. reported preliminary fourth-quarter and full-year results causing the stock to plunge over 11 percent in early trading to $17.38. Perry said that its fiscal fourth-quarter revenues are expected to be $214 million, which is short of the FactSet estimate of $231 million. The adjusted earnings per share are expected to be approximately 35 cents per share, also shy of the FactSet estimate of 37 cents per share. Total fiscal 2016 revenue is expected to be roughly $900 million, as compared to last year’s $890 million, but missing the Capital IQ estimate of $914 million.
Urban Outfitters Inc. is jumping over 13 percent to trade near $31.94 after the retailer beat analyst estimates for the fourth quarter. Earnings per diluted share were 61 cents in the fourth quarter topping the estimate of 55 cents per share. But it wasn’t all rosy because net income declined 7.2 percent to $73 million from $80.2 million in the 2014 fourth quarter ending Jan. 31, and fell 8 percent to $224 million from $323.4 million for the full year. BMO Capital Markets raised its price target to $28 from $22, but maintained its market perform rating.
China reported its third-largest drop in exports in history, a drop of 25 percent, but it didn’t hurt the Chinese stock market, which managed to close slightly higher. Japan and Hong Kong closed modestly lower.
European markets traded lower on the trade news from China. Gold keeps trading higher as investors worry over the global economy and is now at $1,272 an ounce and oil is trading at $37.45 a barrel.