Here Are 3 Hot Things to Know About Stocks Right Now
- The S&P 500 (^GSPC) and lNasdaq (^IXIC) ended lower for the first time in five sessions, ending a string of record closes.
- The Dow Jones Industrial Average (^DJI) also fell, ending its four-day winning streak.
- Salesforce.com Inc. (CRM) - Get Report slid 1.7% on Thursday after issuing soft guidance for its fiscal third quarter.
Wall Street Overview
Stocks closed lower on Thursday, Aug. 30, as reports emerged that President Trump wants to go ahead with tariffs on $200 billion in imports from China next week.
Public comment on the proposed tariffs is set to end Wednesday, and Trump is anxious to implement them as soon as possible, Bloomberg reoprted, citing unnamed sources.
With Canada back at the negotiating table this week ahead of a deadline of Friday, Aug. 31, set by Trump to reach an agreement that would overhaul the current arrangement with the three North American economies, investors have grown concerned that trade talks with China have moved further down on Trump's agenda.
Salesforce.com Inc. (CRM) - Get Report fell 1.3% on Thursday after second-quarter earnings beat analysts' forecasts but the customer-relationship management software company issued soft guidance for the third quarter.
Salesforce said it expects fiscal third-quarter revenue of around $3.36 billion but noted that ongoing increases in marketing and research and development costs would likely bring its bottom line in at a range of 49 cents to 50 cents a share, below Wall Street forecasts of around 54 cents.
Earnings in the second quarter were 71 cents a share on revenue of $3.28 billion, higher than forecasts that called for earnings of 47 cents a share on revenue of $3.23 billion. After backing out a 14-cent gain related to the accounting of "strategic investments," the earnings beat in the second quarter was 10 cents.
"This was a good quarter from Salesforce and they are still the leaders in customer relationship management, the largest and fastest growing category (that CRM is growing twice the rate of) in enterprise software according to (co-CEO Keith) Block," said Jim Cramer and the Action Alerts PLUS team, which holds Salesforce in its portfolio. "Yes, the adjusted earnings per share guidance was light compared analyst expectations, but Salesforce's operations remain fundamentally sound and the company is now working off two straight quarters of large bottom line beats."
Watch what TheStreet's Executive Editor @BrianSozzi thinks of Salesforce right now.
- Salesforce Slides as Soft Forecast Hangs Over Solid Second Quarter Earnings
- Salesforce Slides After Issuing Mixed Guidance: 8 Key Takeaways
Campbell Soup Co. (CPB) - Get Report said Thursday it was selling its two international units and its fresh foods business, a move that stemmed from a three-month board strategic review on what direction the soup maker would take. The much-anticipated announcement was made as Third Point's Dan Loeb and a descendant of the company's one-time president and owner wanted to see Campbell Soup sell itself.
Campbell Soup also reported fiscal fourth-quarter earnings of 25 cents a share, 1 cent ahead of analysts' estimates. Revenue was $2.2 billion vs. estimates of $2.24 billion. The stock fell 2%.
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Dollar General Corp. (DG) - Get Report reported second-quarter profit of $1.52 a share, 3 cents ahead of estimates, and same-store sales rose 3.7%. The retailer said it expects fiscal-year sales to rise 9% to 9.3%. The stock traded down 1%.
Abercrombie & Fitch Co. (ANF) - Get Report earned an adjusted 6 cents a share in its second quarter vs. an estimated loss of 4 cents. Sales of $842.4 million in the quarter came in below forecasts of $845.1 million. Shares fell 17%.
Abercrombie's CEO Fran Horowitz talked with Sozzi Thursday about the upcoming holiday shopping season.