What's moving markets today: April 9, 2019
Levi's made the announcement during its first quarterly earnings report since re-entering the public market last month.
The retailer said it plans to spend up to $200 million next year to open new stores and invest in other areas of the business. Levi's runs more than 800 stores around the world today and brought in $5.6 billion in sales last year.
During Levi's most recent quarter ending in late February, sales grew 7% compared with the same time last year. That included a 9% increase in its Americas division— Levi's largest region— and an 8% increase in Asia.
Levi's sales at its own stores and online, which are more profitable for Levi's than its wholesale business and are a key gauge of the company's strength, grew 10% from a year ago.
Levi's also posted a profit during its most recent quarter, compared to a net loss during the same period last year.
"Our strategies are working and our investments are paying off," CEO Chip Bergh said in a release on Tuesday.
Levi's stock gained 1% after hours on its results. It has lost 5% since it began trading last month.
Global growth concerns and US-Europe trade tensions snapped the S&P 500's eight-day winning streak.
Markets were driven lower by US threats to impose tariffs on $11 billion of European goods and the IMF cutting its global growth outlook. The IMF warned the world economy faces a “delicate moment.”
“It is unwelcome news that the US is considering fresh tariffs,” Paul Donovan, chief economist at UBS Global Wealth Management's chief investment office, wrote in a note to clients.
Previous tariffs from the Trump administration appear to have “curbed” corporate investment and “weakened market confidence,” Donovan wrote.
The Dow was once again dragged down by Boeing (BA), which lost another 1.5%. American Airlines (AAL) finished down 2% after cutting its revenue forecast due to the grounding of the Boeing 737 Max fleet.
It's down 5% for reasons that even our Paul R. La Monica can't figure out:
But cautious comments from an analyst at B. Riley FBR didn't help. The firm found that Under Armour continues to lag Nike (NKE) and Adidas (ADDYY) in a customer survey about athletic apparel and footwear.
US markets are trading lower today because of a new report warning of slowing global economic growth. Uncertainty surrounding a trade war between the United States and European Union isn't helping either.
Here's where the markets stand:
- The Dow is down 130 points, or 0.5%
- Nasdaq slid 10 points, 0.1%
- S&P drifted lower 11 points, or 0.3%
Wynn Resorts (WYNN) stock is down nearly 3% after dropping its bid for Crown Resorts, an Australian rival.
American Airlines (AAL) shares retreated from their earlier lows after cutting its first quarter revenue guidance because of the continued grounding of its Boeing 737 Max 8. It's now down more than 1%.
In another sign that the economy is cooling off, employers posted fewer job openings in February, after a year of mounting demand for workers.
The number of postings declined by 538,000, the Labor Department reported Tuesday, down from 7.1 million in January. The job openings rate is still higher than it was at this time last year, but now there is definitely a slowdown.
The biggest drops came in the hospitality and food services sector, potentially an indication that leisure spending is weakening.
The rate of workers quitting their jobs, usually seen as a sign that employees are confident enough in the labor market to make a transition, has been trending sideways for half a year now after steadily rising out of the Great Recession.
February was also a bad month for job growth, with only 33,000 new positions created. Job openings may recover in March along with the more positive payrolls data released last week.
Meanwhile, America's long streak of declining unemployed people per job opening seems to have ended.
Wynn Resorts (WYNN) has abandoned plans to buy Crown Resorts, one of Australia's largest gaming and entertainment businesses, just hours it had approached the Melbourne-based company.
"Following the premature disclosure of preliminary discussions, Wynn Resorts has terminated all discussions with Crown Resorts concerning any transaction," it said about the potential $7.1 billion deal.
Wynn's shares fell more than 3% after it announced the termination:
- The stock is up 40% for the year
American Airlines (AAL) is cutting its first quarter revenue guidance because of the continued grounding of its Boeing 737 Max 8 fleet and the government shutdown.
The airline forecasts that its total expected revenue per seat mile will be flat to 1% year-over-year, compared to flat to 2% in its previous guidance.
This change is due primarily to the impact of the government shutdown, the grounding of the company’s MAX fleet, and the removal from service of the 14 737-800 aircraft," the airline said in a government filing.
The stock is down nearly 3% in early trading.
Global growth jitters appear to have returned to Wall Street.
Stocks extended their premarket losses after the IMF cut its global growth outlook and warned the economy faces a “delicate moment.”
Boeing (BA) continues to drag the Dow lower. The aerospace giant fell 1% extending its recent 737 Max slump.
Soceite General (SCGLY) is laying off 1,600 employees from its global workforce.
The French bank will close its over-the-counter commodities business and its proprietary-trading subsidiary. Nearly 800 jobs will be eliminated in France through a "voluntary departure plan."
"Societe Generale plans some strategic adjustments in order to always better meet its clients’ expectations while structurally improving its profitability," it said in a release.