Stock markets in the United States ended the trading session in the red today. The decline was caused by poor earnings results from companies in the retail industry, led by Dicks Sporting Goods Inc (NYSE:DKS), Staples, Inc. (NASDAQ:SPLS), and Urban Outfitters, Inc. (NASDAQ:URBN).
The Dow Jones Industrial Average (DJIA) dropped 0.83%, the S&P 500 fell 0.65%, and the NASDAQ slumped 0.7% today.
Commenting on the movement of the stock markets, Brad McMillan, chief investment officer at Commonwealth Financial Network, told Bloomberg, “What we’re seeing is a re-assessment of the growth prospects of earnings. It’s not a question of ‘Are we going to grow?’ Because we are; it’s, ‘Are we going to grow as fast as we thought we would?’”
On the other hand, Mark Luschini, chief investment strategist at Janney Montgomery Scott LLC, opined that the waning earnings data and no significant U.S. economic data between now and June suggest that “equities have no appreciable catalysts” to move significantly higher. He said, “We’re going to be in this trading range for several months.”
Meanwhile, the chief investment officer of Greenwood Capital Associates LLC, Walter Todd, observed that investors seemed “nervous” and that the “markets seemed very reactionary right now.” According to him, “People are trying to get a handle on what exactly the Fed’s reaction function is on when they are raising rates.”
- Dow Jones Industrial Average (DJIA)- 16,374.31 (-0.83%%)
- S&P 500- 1,872.84 (-0.65 %)
- NASDAQ- 4,096.89 (-0.70%)
- Russell 2000- 1,099.74 (-1.32%)
- EURO STOXX 50 Price EUR- 3,163.93 (-0.19%)
- FTSE 100 Index- 6,802.00 (-0.62%)
- Deutsche Borse AG German Stock Index DAX- 9,639.08 (-0.21%)
- Nikkei 225- 14,075.25 (+0.49%)
- Hong Kong Hang Seng Index- 22,834.68 (+0.57%)
- Shanghai Shenzhen CSI 300 Index- 2,115.77 (+0.02%)
Stocks in Focus
The stock price of Dicks Sporting Goods Inc (NYSE:DKS) declined almost 18% to $3.60 per share after the company reported a disappointing sales performance for the first quarter. According to the company, sales in its golf and hunting segments were weak. CEO Edward Stack said that the company had expected further headwinds and modest improvement for its golf segment but experienced continued significant decline during the period.
Shares of Staples, Inc. (NASDAQ:SPLS) were down 12.55% to $11.71 per share after the company posted lower-than-expected adjusted earnings for the first quarter. Staples delivered adjusted earnings of 18 cents per share, compared with the 21 cent per share consensus estimate of Wall Street analysts.
The stock value of Urban Outfitters, Inc. (NASDAQ:URBN) dropped nearly 9% to $32.98 per share after the company also reported disappointing earnings results for the first quarter. The company reported earning 26 cents per share, compared with the 27 cent per share forecast from analysts.