What's moving markets today: May 29, 2019
It's currently down 25% and is "on pace for its worst day in nearly two decades," according to Eikon.
Today's losses also wiped out the retailer's year-to-date gains.
Capri Holdings (CPRI) stock sank 10% in early trading after it released a mixed earnings report. The company owns luxury brands Michael Kors, Jimmy Choo and Versace.
In its earnings call earlier, Capri said it's closing 50 Michael Kors stores this year and warned there could be more.
Michael Kors previously closed 100 stores beginning in 2017 because of slowing sales.
It also cut its outlook because of costs associated with its $2 billion acquisition of Versace.
The US stock market continues to get hit by trade war and economic jitters.
Investors remain worried about plunging Treasury bond yields and how the US-China trade war will slow the global economy and ding corporate profits.
The recent trade escalation has also led to fears that China will retaliate against US tariffs by taking more extreme steps, including placing restrictions on rare-earth exports.
The market slide comes after the Dow dropped 238 points on Tuesday. The S&P 500 has declined more than 5% since closing at a record high on April 30.
Abercrombie & Fitch (ANF) plunged 20% on disappointing earnings and outlook. Canada Goose (GOOS) tumbled 17% on a sales miss. Dick’s Sporting Goods (DKS), however, climbed 2% on strong guidance and upbeat results.
The retailer said on Wednesday that it appointed four new directors to its board in cooperation with the activist funds.
Under pressure, Bed Bath & Beyond has previously appointed five new directors, a new board chair and launched a business transformation committee in recent months. The company's veteran CEO also stepped down earlier this month.
The proxy fight kicked off in March, when three activist funds built a roughly 5% stake in Bed Bath & Beyond and attempted to replace the company's entire board of directors and its CEO.
The activist group previously blamed cluttered stores and a confusing pricing strategy for Bed Bath & Beyond's prolonged slump.
Abercrombie & Fitch (ANF) shares plummeted 25% in early trading after a dismal earnings report, where it reported lower-than-expected sales in stores open more than a year.
The retailer also said it's shutting down three Abercrombie & Fitch flagship stores and one Hollister store.
Abercrombie & Fitch closures:
- Copenhagen will close later this quarter.
- Milan will close by the end of this year.
- Fukuoka, Japan will close in the second-half of 2020.
- SoHo location in Manhattan will close in the second quarter of this year.
The closures are part of its plan to "pivot away from large format stores to smaller ... brand experiences," the company said.
Dick's Sporting Goods (DKS) stock fell 5% in early Wednesday trading, erasing the company's earlier gains.
Dick's said that it was "still working through the impact" of the latest round of tariffs on Chinese goods, and that it had not factored the tariffs into its guidance.
"We are closely monitoring the situation and are hopeful that a trade agreement can be reached," Dick's CFO Lee Belitsky told analysts on a call Wednesday.
The company also said it plans to open seven new stores this year and relocate three stores.
In March, Dick's said it will stop selling guns and ammunition at 125 stores where firearm sales have struggled. Last year, the company stopped selling assault-style weapons after the mass shooting at a Parkland, Florida, high school.
Dow futures were down more than 100 points with a little less than two hours to go before the market opens.
The drop in futures isn't all that dramatic, but it follows a puzzling, sudden drop in stocks Tuesday afternoon. The Dow was trading about 100 points higher at midday yesterday and the floor suddenly gave way. Stocks finished yesterday more than 200 points lower.
That unnerved investors who hoped for a break after five straight negative weeks for the Dow -- the longest streak since 2011.
S&P 500 futures and Nasdaq futures were down about 0.7% and 0.8%, respectively.