Here Are 3 Hot Things to Know About Stocks Right Now
- The Dow Jones Industrial Average I:DJI and S&P 500 I:GSPC finished sharply higher on Wednesday, the first day of gains for the indexes in the last four trading sessions.
- 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 jumped 25.8% 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.
Leading gainers on the Dow included Exxon Mobil Corp. (XOM) - Get Report and Chevron Corp. (CVX) - Get Report , which rose 3.9% and 3.1%, respectively, after U.S. oil prices climbed 2.2% to settle at $68.21 a barrel.
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.
"From a financial markets perspective, if Italy were to leave the eurozone, what would happen to its trillions of dollars in debt, which is widely held? Were that debt redenominated from euros to lira, it could bankrupt the entire European banking system, rocking financial institutions around the world," said Brad McMillan, Chief Investment Officer for Commonwealth Financial Network.
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 25.8% 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 declined 11.4%.
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 4%.
Hot On TheStreet: Coming Up Thursday
Boeing's (BA) - Get Report stock has been on fire this year, up 20%, as investors have warmed up even more to the aircraft maker's growth potential. TheStreet's Executive Editor Brian Sozzi will sit down exclusively with Boeing CEO Dennis Muilenburg on Thursday afternoon to discuss the company's outlook.
Sign up for alerts on Boeing on TheStreet's homepage so you are alerted immediately when this interview goes live.
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