What's moving markets today
Starbucks (SBUX) might be the next Apple thanks to China. Shares of the coffee chain fell 2% in early trading after a warning from Goldman Sachs.
Analysts at the firm downgraded Starbucks' stock due to concerns about China. The report cited a "number of points of caution" in the country, including increasing competition from rival Luckin Coffee, a weakening economy and cannibalization as Starbucks grows.
The chain plans to nearly double the number of coffee shops it has in China to 6,000 before the end of 2022.
Apple's stock bellyflopped earlier this month because of lower than anticipated iPhone sales in China.
Starbucks reports earnings on January 24.
Calvin Klein is closing its flagship store on Madison Avenue in midtown Manhattan as part of a larger reorganization.
The store will shutter in the spring. The luxury brand said in a release it's "evaluating options for future retail locations." Calvin Klein currently operates more than 2,000 stores worldwide.
The brand also announced executive changes and said it's relaunching its high-end "205W39NYC" line following the recent surprise departure of designer Raf Simons.
Shares of its parent company, PVH Corp., (PVH) rose 6% in premarket trading.
Other stores that have closed or remodeled their New York flagships:
- Gap: The company is closing its Fifth Avenue location later this month as part of a plan to rebound from slowing sales.
- Lord & Taylor: The luxury retailer just shuttered its Fifth Avenue location and is being converted into a WeWork.
- Henri Bendel: The once-famous handbag maker closed its Fifth Avenue store because the 123-year-old brand went out of business.
- Versace: The Italian designer is reportedly planning to leave its famous Fifth Avenue townhouse.
- Ralph Lauren: It shuttered its Fifth Avenue flagship in 2017 but kept the Polo Bar restaurant open.
- Tiffany & Co.: The high-end jeweler's Fifth Avenue store is undergoing a multimillion dollar renovation to lure in younger shoppers.
- Nike: The activewear brand moved five blocks south on Fifth Avenue and opened a tech-focused outpost.
Shares of Brazilian aircraft maker Embraer soared today after Brazil approved its joint venture with Boeing.
The deal: The joint venture will take over the commercial aircraft operations of Embraer, a leading maker of small passenger jets. Boeing will own 80%, and Embraer the rest.
Why this matters: The deal will help Embraer compete with Canadian rival Bombardier, which recently joined with Airbus in a similar partnership.
Slack, the buzzy workplace messaging tool, reportedly plans to go public through a direct listing.
It wants to make its stock market debut in the second quarter of 2019, but its plans aren't final, according to the Wall Street Journal.
Slack declined to comment.
What is a direct listing?
It might sound familiar because Spotify recently went that route.
Unlike traditional IPOs, the companies that directly list their shares don't raise new capital. Instead, they list existing shares directly on the exchange without relying on underwriters to help assess demand and set a price.
Apple is planning to release three new iPhone models this year, including a new version of the XR — the budget-friendly phone with an LCD screen that's facing sagging sales.
The Wall Street Journal reports that it can't scrap the planned released of the new XR because because it's been in the pipeline for months and Apple's plan "can’t be altered easily."
Apple can't end production of the LCD model until 2020, the report said. Apple eventually wants to sell only iPhones with the bright OLED-powered screens.
To get the XR moving off shelves, Apple has reportedly slashed prices in China where the phone is seen as too expensive compared to its locally made rivals.
US stock futures are pointing slightly lower, capping a relatively calm week on Wall Street.
Meanwhile, oil is enjoying its longest win streak since 2010.
Crude has climbed 10% so far this week, with US crude futures jumping 0.9% on Friday to above $53 per barrel.
The British pound briefly jumped as much as 0.5% to above $1.28 after the Evening Standard newspaper said Brexit could be delayed.
The London newspaper, which is edited by former UK treasury chief George Osborne, cited UK cabinet ministers as the source of the information.
The pound quickly gave back most of its gains.
The UK is scheduled to leave the EU on March 29, but Prime Minister Theresa May has not yet secured parliamentary support for her divorce agreement, raising the prospect that the country could crash out of the trading bloc without a deal.
Businesses, investors and the Bank of England say that would spell disaster for the British economy and the global companies doing business there.
The core story for sterling remains the same: less Brexit is good, more Brexit is bad," said Ranko Berich, analyst at brokers Monex Europe.