What's moving markets today: May 14, 2019
Tuesday trading is over and done, and stocks have rebounded from Monday’s lows.
Here’s what's coming tomorrow:
- Alibaba (BABA), Tencent (TCEHY) and Macy’s (M) report earnings
- In European data, Eurozone first quarter GDP is due, expected at 1.2%. German GDP is also on the calendar, expected at 0.7%.
- On the US economic calendar, retail sales are scheduled for 8:30 am ET, along with the Empire State Manufacturing Survey. Industrial production for April is due at 9:15 am ET.
- The Energy Information Administration releases its weekly petroleum inventories report at 10:30 am ET.
US stocks finished higher, rebounding from yesterday's steep selloff. Here's how the day went:
It was the best one-day gain for the Dow since April 12, according to Refinitiv.
The US is supposed to have the upper hand on China in a trade war, right? Well you wouldn't know that from the recent performances of two leading retailers due to report earnings on Wednesday.
Chinese e-commerce giant Alibaba (BABA) is expected to post a year-over-year sales increase of nearly 50% despite trade tension with the US and a slowing Chinese economy. Shares of the Jack Ma-led company have soared 27% in 2019.
But Macy's (M) continues to struggle, due in large part to competition from Amazon (AMZN), Alibaba and other online retailers. Analysts are forecasting a drop in Macy's earnings and sales. The stock is down 26% this year, making it the second-worst performer in the S&P 500.
So much for Fortnite, Apex Legends and PlayerUnknown's Battlegrounds hurting Take-Two Interactive. Even though the maker of Red Dead Redemption reported a sales miss and mixed guidance after the market closed Monday, shares of Take-Two (TTWO) rose 6% Tuesday, making it the top performer in the S&P 500.
Investors appeared to be betting that the company's outlook was conservative and that revenue and profit for the full year will be better than expected. It also looks like Wall Street is starting to realize that gaming fans are more than happy playing multiple titles on their phones, tablets, consoles and PCs. The success of multiplayer battle-royale games like Fortnite and Apex Legends is a good sign for the whole industry.
To that end, Apex Legends publisher Electronic Arts (EA) was the second-best stock in the S&P 500 Tuesday, rising 5%. And Activision Blizzard (ATVI), the maker of the popular Call of Duty and World of Warcraft franchises, gained 4%.
In the second half of the trading day, stocks continue to forcefully rebound after Monday's brutal selloff.
President Donald Trump called the trade spat with China "a little squabble," speaking to reporters today.
Of course that spat has escalated significantly over the past week, as both Washington and Beijing raised tariffs on imports. As a result, on Monday, the Dow and the S&P 500 had their worst days since January 3, while the Nasdaq recorded its worst day since December.
In his comments, Trump added that the United States had a very good dialogue with China and that a trade deal could absolutely happen.
The Dow was up 333 points, or 1.3% at midday.
Fashion house Ralph Lauren (RL) is by far the worst performing stock in the S&P 500 this morning. It's down more than 6%
For context, it's followed by Gap (GPS), which is down only 1.6%.
Ralph Lauren reported earnings for its fourth quarter and financial year 2019 before the bell.
While the results exceeded expectations, they showed some worrying trends. Revenue from its North American wholesale operations fell 10% year-over-year in the quarter, while overall North American sales dropped 7%, or $708 million.
Correction: A previous version of this post incorrectly identified which index Ralph Lauren is a part of.
About an hour into trading, markets have extended their gains and the Dow is up nearly 200 points.
Only two Dow stocks are lower today, the opposite of yesterday's trading dynamic.
US stocks opened higher, erasing some of their steep losses from yesterday, when the Dow and the S&P 500 both had their worst day since January 3. The Nasdaq had its worst day since December. All three indexes ended Friday in the green, so their losing streak has been short, albeit drastic.