The stock market is taking a tumble after tensions escalate in the Middle East. Members of the Turkish military shot down a Russian fighter jet, saying it violated the country’s air space — of course, Russia says it didn’t and thus the event has taken center stage. The pilots were able to eject, but were killed by Syrian opposition.
The S&P 500 was down by seven points to 2,079, the Dow Jones Industrial average dropped by 45 points to 17,746 and the Nasdaq fell 19 points to 5,082. In economic news, the nation’s gross domestic product grew at a 2.1 percent annual pace from July through September, better than the expected 1.5 percent.
Cheap gas and steady jobs are fueling the growth. Spending rose at a rate of 3 percent, which was a little lighter than anticipated. The economy is on track to grow by 2.7 percent in the fourth quarter.
Tiffany’s, Signet Jewelers and Movado all reported their earnings before the market opened on Tuesday and all three disappointed investors.
Tiffany’s stock was flat in early trading at $76.64 after dropping over 6 percent before the market open. The company with the little blue box missed its third-quarter earnings estimate and cut its outlook. Tiffany’s reported third-quarter earnings per share of 70 cents, which was lower than the FactSet estimate of 75 cents per share. The sales came in at $938 million, also short of the consensus of $971 million. Net earnings were $91 million versus last year’s net earnings of $38 million.
Signet Jewelers is also sliding over 4 percent in early trading to $134.03, after missing on its earnings and revenues estimates for the third quarter. Signet delivered third-quarter earnings per share of 33 cents, which was worse than the FactSet consensus of 39 cents. Sales were reported at $1.216 billion, also shy of the consensus of $1.229 billion. Other operating income was $60.9 million, an increase of 13.8 percent over last year’s $53.5 million.
Movado joined its peers by also missing its third-quarter estimates. The luxury watch company reported third-quarter earnings of 92 cents per share, a penny shy of the FactSet estimate of 93 cents per share. Revenue fell 1.6 percent year-over-year to $185.6 million and missing the estimate of $190 million. Operating income of $33.5 million barely beat last year’s $33.3 million. Movado stock has fallen over 15 percent year-to-date, but was up by 4 percent in early trading to $25.22.
Chico’s stock fell over 2 percent to $11.87 after the retail chain missed its third-quarter earnings and sales estimates. Chico’s reported third-quarter earnings per share of 13 cents, which was much less than the FactSet estimates of 20 cents per share and sales came in at $641 million, also missing the estimate of $667 million. The company experienced a 3.3 percent decrease in comparable sales following a 1.6 percent decrease in last year’s third quarter and a decrease in the average dollar sale and transaction count.
Burlington Stores seemed to be the only retailer this morning that delivered good third-quarter results. The discount chain stock is popping over 8 percent to $47.95 after delivering third-quarter earnings of 25 cents per share, beating the Capital IQ consensus of 23 cents per share. Revenues were essentially inline at $1.231 billion, versus the estimate of $1.238 billion. Burlington issued downside guidance for the fourth quarter with earnings in the range of $1.44-$1.48 versus the anticipated $1.49.