PR Newswire 11-Aug-2017 9:00 AM
NEW YORK, August 11, 2017 /PRNewswire/ --
The stock market pulled back Thursday as escalated geopolitical tensions with North Korea weighed down markets. TheDow Jones industrial averagefell over 175 points with Goldman Sachs contributing the most significant losses. TheS&P 500fell 1.36 percent as the information technology and financial sectors led the decline. According to CNBC, the S&P 500 index also fell below its 50-day moving average, a key technical level, for the first time in a month. "We're through most of the earnings season and the valuations (in the stock market) become a bit problematic when you have something like North Korea come up," Maris Ogg, President of Tower Bridge Advisors, said in a CNBC report. Macy's Inc. (NYSE: M), Walt Disney Co (NYSE: DIS), NetEase Inc. (NASDAQ: NTES), Michael Kors Holdings Ltd (NYSE: KORS), Live Nation Entertainment, Inc. (NYSE: LYV).
"Looking historically, there's relatively little volatility when it comes to stock market and North Korean provocations," said Kent Boydston, a Research Analyst at the Peterson Institute for International Economics.The language from the administration raised concerns of escalation with North Korea. Despite the concerns, the long-term view remains optimistic, with some possible hurdles along the way. "I think the market would put it as a very low probability that this turns into anything extremely meaningful," said Scott Wren, Senior Global Equity Strategist at the Wells Fargo Investment Institute.
Macy's Inc. (NYSE: M) stock lost about 9% in value Thursday, after the retailer posted second quarter financial results. Sales in the second quarter of 2017 totaled$5.55 billion, a decrease of 5.4 percent, compared with sales of$5.86 billionin the second quarter of 2016. The year-over-year decline in total sales resulted from previously announced store closures by the company. Comparable sales were down 2.8 percent in the second quarter. Year to date, Macy's, sales totaled$10.89 billion, down 6.4 percent from total sales of$11.63 billionin the first half of 2016.Macy's reaffirmed its previously provided guidance for full-year 2017. The company expects comparable sales to decline between 2.2 percent and 3.3 percent.
Walt Disney Co (NYSE: DIS) shares fell about 3.5% after the entrainment giant reported third quarter earnings Tuesday after market. According to the company's report, diluted earnings per share (EPS) for the quarter decreased 5% to $1.51 from $1.59 from a year ago. Diluted EPS for the nine months ended July 1, 2017 decreased to $4.55 from $4.63.Disney announced a new strategy to distribute content. "Today we announced a strategic shift in the way we distribute our content. The media landscape is increasingly defined by direct relationships between content creators and consumers, and our control of BAMTech's full array of innovative technology will give us the power to forge those connections, along with the flexibility to quickly adapt to shifts in the market," said Robert A. Iger, Chairman and Chief Executive Officer of The Walt Disney Company. "This acquisition and the launch of our direct-to-consumer services mark an entirely new growth strategy for the Company, one that takes advantage of the incredible opportunity that changing technology provides us to leverage the strength of our great brands."
NetEase Inc. (NASDAQ: NTES) shares crashed over 9% Thursday. NetEase is a technology company based in China, and is one of the country's leading internet and online game service providers. For the second quarter of 2017, the company published a mixed earnings report. NetEase reported net revenues of RMB13.4 billion (US $2.0 billion), an increase of 49.4% compared with the second quarter of 2016. Net revenues of online game services were RMB9.4 billion (US $1.4 billion), an increase of 46.5% compared with the second quarter of 2016. Yet profits fell short. Gross profit for the second quarter of 2017 was RMB6,736.9 million (US $993.7 million), compared to RMB7,483.6 million and RMB5,280.4 million for the preceding quarter and the second quarter of 2016, respectively.
Michael Kors Holdings Ltd (NYSE: KORS) shares jumped over 21% Tuesday after the company announced financial results for fiscal 2018 first quarter ended July1, 2017. Retail net sales increased 10.1% to $619.9 million driven by 67 new store openings since the end of the first quarter of fiscal 2017, which include the acquisition of the Greater China license. Comparable sales decreased 5.9%. Wholesale net sales decreased 23.0% to $303.6 million. Earnings per diluted share exceeded the Company's prior expectations of$0.60 to $0.64. Net income for the first quarter of fiscal 2017 was$147.1 million, or$0.83per diluted share, based on a 21.2% tax rate and 176.6 million weighted average diluted shares outstanding.
Live Nation Entertainment, Inc. (NYSE: LYV) stock was up over 9% Thursday after strong financial results. Live Nation continued growing its businesses in the second quarter, with revenue up 29%, operating income up 53% and adjusted operating income up 22%. Net cash provided by operating activities increased to $43 million. According to the company press release, Live Nation sold over 68 million tickets to shows this year through July, a 12 million ticket increase compared to this point last year.
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