NEW YORK, August 18, 2017 /PRNewswire/ --
U.S stock indexes fell Thursday after several concerning
developments weighed on markets. The Dow Jones Industrial
Average dropped 274 points, or 1.24%, to 21,750. This week the
President ended the manufacturing council after CEOs disbanded
strategic and policy forum. The uncertainties in Washington raised new doubts regarding the
administration's agenda, tax cuts specifically. The terrorist
attack in Barcelona also caused
panic. In addition, several major corporations have reported weak
earnings results this week, adding fuel to the fire. Alibaba Group
Holding Ltd (NYSE: BABA), L Brands Inc. (NYSE: LB), Wal-Mart Stores
Inc. (NYSE: WMT), Cisco Systems, Inc. (NASDAQ: CSCO), Dicks
Sporting Goods Inc. (NYSE: DKS)
"Cisco is in the midst of a turnaround, and it is showing very
slow progress in that, while Wal-Mart has had something like 12
straight quarters of revenue growth, which led to expectations
getting a little ahead of themselves. They're just taking a little
bit of a step back, and so is the market," said Mark Spellman, portfolio manager at Alpine
Funds, MarketWatch reported. "There's no direct market impact in
what [the President] has done recently, but if things continue to
be so polarized that his agenda is completely dead on arrival, that
would have a negative impact," Spellman added.
Alibaba Group Holding Ltd (NYSE: BABA) announced its
financial results for the quarter ended June
30, 2017. Shares spiked about 5 percent. The company's
revenue was RMB50,184 million
(US$7,403 million), an increase of
56% year-over-year. Annual active consumers on China retail marketplaces reached 466 million,
an increase of 12 million from the 12-month period ended
March 31, 2017. "Alibaba had a strong
start to fiscal 2018, reflecting the strength and diversity of our
businesses and the value we bring to customers on our platforms.
Our technology is driving significant growth across our business
and strengthening our position beyond core commerce," said
Daniel Zhang, Chief Executive
Officer of Alibaba Group. "We are excited about the future as we
continue to innovate and drive synergies among the businesses
throughout the Alibaba ecosystem."
L Brands Inc. (NYSE: LB) share value fell over 11 percent
Thursday, after the specialty retail business posted second quarter
financial results. Earnings per share was $0.48 compared
to $0.87 for the quarter ended July 30, 2016. Second
quarter operating income was $300.9 million compared
to $408.2 million last year and net income
was $138.9 million compared to $252.4
million last year. L Brands lowered full year guidance -
earnings per share to $3.00 to $3.20 from $3.10 to $3.40 previously. The company operates 3,077
company-owned specialty stores in the United
States, Canada, the United Kingdom and Greater
China. L Brands is the parent company of Victoria's Secret and Bath
& Body Works.
Wal-Mart Stores Inc. (NYSE: WMT) shares tumbled 2 percent
Thursday after the retail operator announced a mixed earnings
report for their second quarter. Wal-Mart reported total revenue of
$123.4 billion, an increase of
$2.5 billion or 2.1%. Second quarter
EPS included a change of $0.17 loss
on extinguishment of debt in connection with the company's recently
completed debt tender offers. The good news came from the
eCommerce division. E-commerce growth at Walmart in the U.S.
remained strong, led by organic growth through Walmart.com., Net
sales and GMV grew 60% and 67%.
Cisco Systems, Inc. (NASDAQ: CSCO) shares fell Wednesday
late Wednesday and continued Thursday, over 4%, as a result of
weaker than expected earnings. Total revenue was $12.1
billion, down 4%, with product revenue down 5% and service revenue
up 1%. Product revenue performance was led by Wireless and Security
segments which increased 5% and 3%, respectively. "Non-GAAP
total gross margin and product gross margin were 63.7% and 61.9%,
respectively. The decrease in non-GAAP product gross margin
compared with 63.9% in the fourth quarter of fiscal 2016 was also
primarily due to pricing, partially offset by continued
productivity improvements and to a lesser extent product mix,"
Cisco reports.
Dicks Sporting Goods Inc. (NYSE: DKS) stock crashed 20%
Tuesday, after the sporting goods retailer reported sales and
earnings results for the second quarter ended July 29th, 2017. On a non-GAAP basis,
the Company reported consolidated net income for the second quarter
ended July 29, 2017 of $104.8 million, or $0.96 per diluted share, compared to the
Company's expectations provided on May 16,
2017 of $1.02 to 1.07 per
diluted share. Second quarter 2017 non-GAAP results exclude a
previously announced corporate restructuring charge and income
related to a contract termination payment. The GAAP to non-GAAP
reconciliations are included in a table later in the release under
the heading "GAAP to Non-GAAP Reconciliations."
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