It's almost Friday.
The Dow Jones Industrial Average rose 121 points, or 0.51%, to 24,000, the S&P 500 rose 0.45%, and the Nasdaq rose 0.42%. Stocks rose for a fifth straight day on Thursday after progress was reported in U.S.-China trade talks and following the dovish comments from the Fed.
Retail shares were suffering on Thursday, Jan. 10 after retailers announced weak holiday sales.
Macy's (M) disappointed markets after it said that it expects comparable-store sales to increase 2% in the year, which is below the previous estimate of 2.3% and 2.5%. And the company said that net sales will be flat year over year, down from the previous estimate of 0.3% to 0.7% increase. Kohl's Corp. (KSS) shares fell nearly 9% after the company reported a 1.2% increase in holiday season comparable store sales, down from the roughly 7% growth it reported last year.
Target Corp., on the other hand, (TGT) posted stronger-than-expected holiday sales on Thursday and said it would see double-digit adjusted earnings growth in fiscal 2019. And yet, it also suffered.
Macy's closed down nearly 18% to $26.11 a share. Kohl's was down nearly 5% to $69.90 and Target was down nearly 3% to $68.29.
Constellation Brands (STZ) was rebounding Thursday after disappointing markets with weaker-than-expected quarterly earnings and a muted outlook, according to TheStreet's Martin Baccardax.
The Corona beer maker said earnings for its 2019 fiscal year, which ends in March, to come in between $9.20 and $9.30 per share, down from a prior forecast of $9.60 to $9.75 and shy of the Street consensus of $9.43 per share. The reduction was linked to a pre-tax impact of around 25 cents a share from its debt-backed Canopy Growth investment in 2017, and a $164 million decrease in the fair value of the stake over the three months ending in November.
Constellation is Real Money's stock of the day.
Time to Prep for Bank Earnings
Citibank (C) is set to announce earnings Monday, Jan. 14. Walls Fargo (WFC) and JPMorgan Chase (JPM) are announcing Tuesday, Jan. 15. Both Morgan Stanley (MS) and Goldman Sachs (GS) will be announcing later in the week.
Jonathan Corpina, senior managing partner at Meridian Equity Partners, discussed the banking sector with TheStreet.
You know historically over time earnings season has offered a bit of buoy for our markets. Kind of helps move it higher as it's moving higher when the markets have been selling off it kind of changes and reverses that type of movement there. I think bank earnings you know overall can help our markets. I just don't think they're going to be as strong as we've been expecting," said Corpina.