NEW YORK, November 24, 2017 /PRNewswire/ --
U.S. stocks were flat on Wednesday after the major indexes hit record highs on Tuesday. Solid third-quarter corporate earnings results have contributed to the rally in the stock market this week. According to FactSet, 97.8 percent of the S&P 500 companies had reported an average 6.25 percent increases in the third quarter earnings on a year-over-year basis, while about 74 percent of the companies had posted better-than-expected earnings. According to CNBC, Frank Cappelleri, executive director at Instinet, said in a note to clients, "New highs were the undeniable theme once again on Tuesday…It happened for the S&P 500 and for many, many other indices, ETFs and stocks. Broad participation and a proliferation of uptrends have helped this remain the case all year." GameStop Corp. (NYSE: GME), Baozun Inc (NASDAQ: BZUN), Hewlett Packard Enterprise Co (NYSE: HPE), salesforce.com, Inc. (NYSE: CRM), Guess?, Inc. (NYSE: GES)
The S&P 500 is up about 16 percent this year and crossing the 2,600 mark for the first time on Tuesday. Improving economic data is one of the drivers of the stock market. The Labor Department on Wednesday posted the U.S. jobless claims data for the week ended November 18. Initial claims for unemployment benefits decreased by 13,000 to a seasonally adjusted 239,000 last week. Economists polled by Reuters had estimated initial claims to be 240,000 in the latest week. The Jobless claims have been below 300,000 for 142 straight weeks, the longest streak since 1970.
GameStop Corp. (NYSE: GME) stock jumped about 8% Wednesday after the company reported sales and earnings for the third quarter ended October 28, 2017. Total global sales increased 1.5% to $1.99 billion (flat in constant currency), resulting in consolidated comparable store sales growth of 1.9%. New hardware sales increased 8.8%, led by demand for Nintendo Switch, and new software sales increased 5.4% driven by a strong title lineup. Pre-owned sales declined 2.4%. Worldwide omnichannel sales increased by 38.6% on the strength of new hardware sales. Dan DeMatteo, interim chief executive officer, said in a statement, "Our third quarter sales results were driven by strong software demand and continued momentum for Nintendo Switch and collectibles… As we enter the fourth quarter, we are encouraged by the initial customer response to Microsoft's Xbox One X, and believe that the holiday season results will be driven by new console hardware and collectibles."
Baozun Inc (NASDAQ: BZUN) announced its unaudited financial results for the third quarter ended September 30, 2017. Total net revenues were RMB890.2 million (US$ 133.8 million), an increase of 18.8% year-over-year. Income from operations was RMB27.8 million (US$ 4.2 million), an increase of 22.6% year-over-year. Mr. Vincent Qiu, Chairman and Chief Executive Officer of Baozun, explained, "We are pleased to report another outstanding quarter where we continued to strengthen our long-term competitive advantages, drove strong growth from our existing online stores and optimized efficiency with innovative new tools… I am proud of our strong performance during this year's Singles Day where we recorded total order value around RMB5 billion, almost double the amount from last year."
Hewlett Packard Enterprise Co (NYSE: HPE) announced financial results for its fiscal 2017 and the fourth quarter, ended October 31, 2017. Combined net revenue of $7.8 billion includes $7.7 billion from continuing operations and $174 million from Software, which is now included in discontinued operations. Meg Whitman, CEO of HPE, said in a press release, "With strong top line revenue growth, earnings above our previous outlook and our second consecutive quarter of sequential margin improvement, our fourth quarter results are a reflection of the progress we have made over the past two years to transform HPE into a nimble, focused and innovative organization… Today, HPE has a very strong balance sheet, an industry-leading product portfolio and a world-class leadership team ready to drive the next phase of shareholder value."
Salesforce.com, Inc. (NYSE: CRM) shares down about 1.8% after the company announced third quarter revenue was $2.68 billion, an increase of 25% year-over-year, and 23% in constant currency. Subscription and support revenues were $2.49 billion, an increase of 25% year-over-year. Professional services and other revenues were $194 million, an increase of 20% year-over-year. announced results for its fi scal third quarter ended October 31, 2017. "Salesforce delivered a record third quarter, and we're on a path to exceed $20 billion faster than any enterprise software company in history," said Marc Benioff, chairman and CEO, Salesforce. "With this phenomenal growth, we are building a company for the ages, creating value for our Trailblazers - our customers, employees, investors and communities - while helping make the world a better place for decades to come."
Guess?, Inc. (NYSE: GES) stock crashed about 10%. reported financial results for its third quarter ended October 28, 2017. Total net revenue for the third quarter of fiscal 2018 increased 3.3% to $554.1 million, compared to $536.3 million in the prior-year quarter. In constant currency, net revenue increased by 0.6%. Americas Retail revenues decreased 13.4% in U.S. dollars and 14.3% in constant currency. Retail comp sales including e-commerce decreased 10% in U.S. dollars and 11% in constant currency.Victor Herrero, Chief Executive Officer, commented, "Overall, our third quarter adjusted operating profit finished within our expectations, and adjusted earnings per share ended above the high-end of our guidance. We continue to see good momentum in Europe and Asia, where our revenues were up 19% and 17%, respectively, mainly driven by new store openings, wholesale growth and positive comp sales. We were also thrilled with the operating margin expansion in the Americas Retail despite a sales decline. This is the result of our profit improvement plan which included tight markdown management, higher IMUs, negotiated rent reductions and unprofitable store closures."
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