Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average closed down Tuesday, extending Monday's decline.
- Kohl's (KSS - Get Report) earned $2.24 a share on an adjusted basis in its fourth quarter, beating analysts' estimates by 6 cents. The stock rose 7.33%.
- Target (TGT - Get Report) posted stronger-than-expected fourth-quarter earnings after a solid holiday shopping season that saw increased foot traffic and higher same-stores sales. Shares rose 4.60%.
Wall Street Overview
Stocks ended the day down on Tuesday, March 5, following a slide for equities in the previous session as China trade talks with the U.S. remained in focus.
Wall Street extended Monday's declines as investors weighed the prospect of a comprehensive trade deal against fragile global economic growth.
China , in fact, illustrated that concern when Premier Li Keqiang slashed growth estimates for the world's second-biggest economy to a range of 6% to 6.5%, down from 6.5% and the weakest prediction in three decades. The move demonstrated the impact of weakening domestic demand and a damaging trade spat with Washington for China. Government officials pledged to accelerate plans for around $300 billion in tax cuts and spending support.
The Dow Jones Industrial Average closed down 13.02 points, or 0.05%, to 25,807 on Tuesday afternoon, the S&P 500 dipped 0.11%, and the Nasdaq was down 0.02%.
In economic news, sales of new U.S. homes climbed in December to their highest pace in seven months, a sign that lower mortgage rates have helped the real estate market. The Commerce Department said that new-home sales rose 3.7% in December to a seasonally adjusted annual rate of 621,000. November's sales were revised down to 599,000 from an annual rate of 657,000. For all of 2018, new-home sales rose 1.5%.
Also, the Institute for Supply Management said its non-manufacturing sector grew in February for the 109th consecutive month. The index registered 59.7%, higher than the January reading of 56.7%.
General Electric (GE - Get Report) lost ground after CEO Larry Culp said that free cash flow from the conglomerate's industrial division is likely to remain negative this year. Culp insisted the troubled group would accelerate its ongoing restructuring plan, but shares tumbled 4.72%.
Target (TGT - Get Report) posted stronger-than-expected fourth-quarter earnings after a solid holiday shopping season that saw increased foot traffic and higher same-stores sales. The stock rose 4.60%.
Target said earnings were $1.53 a share, 1 cent ahead of the Wall Street forecast. Sales were essentially flat at $22.98 billion and modestly ahead of analysts' estimates of $22.91 billion. Same-store sales rose 5.3%, firmly ahead of market expectations, a figure the company sees rising at a low to mid-single-digit range over the first quarter of the current fiscal year.
Kohl's (KSS - Get Report) earned $2.24 a share on an adjusted basis in its fourth quarter, beating analysts' estimates by 6 cents. Revenue in the quarter of $6.82 billion topped forecasts of $6.58 billion.
Kohl's said same-store sales in the period rose 1% vs. estimates that called for same-store sales to fall 0.5%. Shares were up 7.3%.
Salesforce.com (CRM - Get Report) posted stronger-than-expected fourth-quarter earnings and raised its revenue guidance for the current financial year, but the cloud company issued near-term earnings guidance that was modestly weaker than analysts' forecasts.
Salesforce was down just under 1% on Tuesday.
Looking into 2019, Salesforce said it was raising its revenue forecast to a range of $15.95 billion to $16.05 billion. It said it expects first-quarter revenue in the range of $3.67 billion to $3.68 billion, just shy of the $3.7 billion forecast. Non-GAAP earnings were forecast in the range of 60 cents to 61 cents a share, largely in-line with Wall Street estimates.
"Bottom line: After trading a few dollars within its all-time high last week, the shares pulled back during Monday's session (with many other cloud software stocks) before the print and those losses have extended after-hours (Monday night)," said Jim Cramer and the Action Alerts PLUS team, which holds Salesforce in its portfolio. "The critics will point to the company's high valuation as a reason to sell, however, we see a tremendous opportunity that is still in its beginnings."