Negative headlines pushed markets lower today. The Dow 30 closed lower on the day by 76, the S&P 500 lost 4, and the Nasdaq 100 closed down on the day by 10. Central bankers will meet for a symposium in Jackson Hole, WY with Fed chairman Jerome Powell Friday, but after the release of the Fed minutes yesterday, almost everyone now expects a further rate hike in September's meeting.
New tariffs took effect today in the continuing trade war with China on a combined $100 billion in products. Talks are in the works, but comments from both sides show that there is little progress as of now. Caterpillar (CAT ), and Boeing (BA ), which have both been sensitive to trade news, were both lower today.
Alibaba (BABA ) was in the news today as the company reported earnings that beat expectations. Revenue was also better than anticipated - the company earned $400 million more than Wall Street thought. Another important metric, monthly average users, was also higher by 17 million. Technical traders were not impressed, however, as the stock opened at the 200 day moving average and sold off aggressively just after.
In retail earnings news, Limited Brands (LB ), the parent company of Victoria Secret and Bath & Body Works, plummeted to new lows today despite beating expectations on earnings and revenue. The company offered weak guidance going forward and investors ran for the exits. Stein Mart (SMRT ) shares were also lower on the day, as the company reported an earnings loss and just missed their revenue goal.
Williams Sonoma (WSM ) shares absolutely blasted off today as the company reported earnings that came in much better than expected. The company also reported sales at their stores that were off the charts, and they raised their guidance for the year. Shares are higher by 22% in just the last 5 trading days.
Other retail news today included earnings from The Children's Place (PLCE ) which sold off despite strong earnings, Nordstrom (JWN ) which approved a $1.5 billion stock buyback, and Deckers Outdoor (DECK ) which was upgraded thanks to positive sales of their UGG brand.
