It may be the biggest day of the earnings season with almost 50 companies delivering results, but the stock markets are opening essentially flat.
The initial jobless claims dropped by 26,000 to 255,000, the lowest level since November of 1973. The four-week moving average, which tends to be the more watched number, as it doesn’t have big swings, only dropped 4,000 to 278,500 for last week.
Under Armour continues to stay performing with the stock popping 7.5 percent to trade at $96.15 on strong second-quarter results. The sports apparel company raised its full-year revenue and profit forecast for the second time in three months. The company has hitched itself to two rising stars, Jordan Spieth, the 21-year-old golfer who came up just short of his third consecutive major this week; and Misty Copeland, the ballerina who became the first African-American named as a principal dancer at the American Ballet Theatre. Apparel sales are up 23 percent in the second quarter and footwear jumped 40 percent to $154 million.
It wasn’t all good in the land of sports retailers. Cabela’s missed its earnings estimate when it delivered second-quarter earnings of $0.56 versus the expectations of $0.60. the stock is plunging almost 6 percent to trade at $48.70. The company suffered a decrease in the Direct channel when it shifted ammunition sales to the Retail channel. However, the chain saw strong performance in guns and ammo, but had a weaker result in soft goods and apparel. Cabela’s said its new format stores are outperforming the legacy stores and plans to open four new stores in the third quarter and two in the fourth.
Polyester and yarn maker Unifi stock dropped 7 percent to $29.80 after reporting fourth quarter and year-end results after the market closed on Wednesday. North Carolina-based Unifi missed analysts estimates by two cents and missed revenue estimates. The company reported earning $0.55 per share when the expectation was $0.57. The revenue estimate for the quarter was $191.6 million, but the company only delivered $175 million. Net income for 2015 fiscal year was $42.2 million or $2.32 per share, much higher than last year’s 28.8 million and $1.52 per share. Net sales though were essentially flat at $687.1 million. The company noted that it had expected to see benefits in 2016 from the addition of texturing machines that would support growth in demand for synthetic yarns.