What's moving markets today: May 29, 2019
Canada Goose (GOOS) shares are falling from the sky — down as much as 22% — after it slightly missed on revenue and issued mixed guidance in its latest quarterly earnings.
It wasn't all bad for the luxury jacket maker. Its net income for the first three months of 2019 rose 11% compared to the same period a year earlier. Canada Goose said its direct to consumer business is growing.
If its premarket losses are maintained at the open, it will wipe away all of its year-to-date gains.
Despite Uber's less-than-impressive performance after going public, one analyst remains optimistic on the company.
Wedbush Securities' Daniel Ives said in a new note that that despite the "negative noise," he remains positive on Uber (UBER).
The company went public earlier this month and is trading 9% below its $45 IPO price
"This week marks an important step forward for Dara & his team to prove to the Street that this business model is still in the early days of playing out," Ives said of Uber's first earnings report, which comes out Thursday.
Ives admitted that it will be a "long and winding road for Uber" to prove its value, he's optimistic the company will successfully expand beyond ride-hailing:
A core tenet of our bull thesis is around Uber's ability to morph its unrivaled ridesharing platform into a broader consumer engine with Uber Eats, Uber Freight, and autonomous initiatives 'just scratching the surface' of the full monetization potential."
Boeing (BA) shares slid 1.4% in premarket trading after the head of a global airline group said the troubled Boeing 737 Max likely won't return to the air until August.
Alexandre de Juniac, the director general of International Air Transport Association, told reporters that the plane won't re-enter service for at least another 10 to 12 weeks.
"But it is not our hands," he added according to Bloomberg. "That is in the hands of regulators."
He added that airlines, government regulators and Boeing will hold another meeting within the next five to seven weeks to discuss the 737 Max.
ExxonMobil (XOM) is bracing for stiff opposition at Wednesday's annual shareholder meeting from activists and shareholders upset with the oil giant's stance on climate change.
All eyes will be on a shareholder proposal that calls for Exxon to install an independent board chair during its next CEO transition. Exxon opposes the shareholder proposal, noting its board comprises entirely independent directors, other than the CEO. However, the proposal has received support from the Church of England’s endowment fund and the New York State pension fund.
Those groups are irked by Exxon’s successful effort to lobby the SEC to block a separate resolution they proposed that would have urged the company to adopt and disclose greenhouse gas emissions targets.
"The transition to the low-carbon economy is the single greatest challenge the company faces,” Edward Mason, head of responsible investment at the Church Commissioners for England, told CNN Business.
The greenhouse gas emissions proposal that was blocked by the SEC was backed by Mason and other investors with a total of $9.5 trillion in assets. That group, known as Climate Action 100+, previously reached agreements with Royal Dutch Shell, Equinor, BP and other oil giants.
We believe the issues we have been having with engagement at Exxon are linked to governance of the company,” said Mason.
Another round of retail earnings is keeping the US-China trade war front of mind for investors.
Retailers including Abercrombie & Fitch (ANF) and Dick's Sporting Goods (DKS) report earnings from the first three months of the year on Wednesday. Both are expected to post results before the US market open.
Major retailers have developed strategies to blunt the impact of tariffs so far. But they're starting to warn that the trade war is affecting business.
Walmart (WMT), Target (TGT), Home Depot (HD), Kohl's (KSS) and Macy's (M) all said that the tariffs have forced them to either alter their financial outlooks, remodel carefully crafted supply chains or consider raising price tags for customers.
US stock futures were pointing lower on Wednesday after a rough start to the week.
- 🔔 The Dow is set to open down 148 points, or 0.6%. The Nasdaq could drop 0.8% and the S&P 500 is poised to fall 0.6%.
- 🌏 That follows a difficult trading session in Asia. Hong Kong's Hang Seng index dropped 0.5% and Japan's Nikkei shed 1.2%. The exception was the Shanghai Composite index, which gained almost 0.2%.
- 🌍 European markets are building off those losses in early trading. Britain's FTSE 100 dropped 1.1%, while France's CAC 40 lost 1.6% and Germany's DAX index fell 1.2%.