Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average I:DJI rose sharply on Wednesday following a tumble of 391 points on Tuesday.
- The U.S. economy grew 2.2% in the first quarter, down from the 2.3% originally reported.
- Dick's Sporting Goods Inc. (DKS) - Get Report rose 24% after profit at the retailer jumped.
Wall Street Overview
Stocks rebounded sharply Wednesday, May 30, after a political crisis in Italy pushed equities sharply lower during the previous session.
Italy's political crisis continued to hang over global sentiment, however, with reports from Rome suggesting new elections could come as early as July. European stocks traded mixed on Wednesday.
Asian shares closed with heavy losses on Wednesday as investors reacted to news the U.S. will publish a list of Chinese goods it will hit with tariffs next month as the brewing trade war between the world's two biggest economies threatens to escalate again.
China's Commerce Ministry issued a statement Wednesday saying it was "surprised" by the U.S. move and urged Washington to act in the spirit of recent talks in which the two sides said they would work to narrow China's massive trade surplus.
First-quarter gross domestic product growth in the U.S. was revised lower to 2.2% from an originally reported 2.3%, according to the Bureau of Economic Analysis.
The U.S. added 178,000 private-sector jobs in May, according to Automatic Data Processing Inc. Economists had expected private payrolls to rise by 185,000 last month. The ADP report is a precursor to the official U.S. jobs report for May, which will be released Friday, June 1.
Salesforce said billings - defined as revenue plus the sequential change in unearned revenue that it has billed but not recorded on its income statement - rose a stronger-than-expected 16% to $2.21 billion.
Salesforce estimated that earnings for the fiscal year would be $2.29 to $2.31 a share on revenue of $13.08 billion to $13.13 billion.
Dick's Sporting Goods Inc. (DKS) - Get Report jumped 24% after the retailer reported first-quarter adjusted profit of 54 cents a share, above estimates of 45 cents. Sales were $1.91 billion vs. estimates of $1.88 billion. The company also raised its full-year guidance.
Michael Kors Holdings Ltd. (KORS) posted adjusted earnings in its fiscal fourth quarter of 63 cents, beating estimates by 3 cents. Revenue in the quarter rose to $1.18 billion; analysts expected $1.15 billion.
The company said it expects fiscal first-quarter earnings of 90 cents to 95 cents on revenue of $1.135 billion. Shares fell 12%.
The personal computer and printer maker also said it appointed Steve Fieler as chief financial officer, replacing Catherine Lesjack, who is stepping down. Lesjack plans to remain as interim chief operating officer until 2019. The stock rose 2.9%.
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