Stocks Fall as Earnings Season Heats Up

U.S. stocks started lower on Monday as investors prepared to assess a quarterly earnings season that will pick up
steam this week. The Dow Jones Industrial Average lately fell 19.59 points, or 0.12%, to 16,417.46. The S&P 500
lost 1.57 points, or 0.09%, to 1,840.80. The Nasdaq Composite lost 5.75 points, or 0.14%, to 4,168.92.

Wendy’s Co, the second-largest U.S. hamburger chain, estimated adjusted quarterly earnings above analysts’
expectations, as expenses fell due to franchising many company-owned outlets.The company estimated net income for the quarter ended Dec. 29 at $25.2 million to $28.7 million, or 6-7 cents per share, compared with $26.4 million,
or 7 cents per share, a year earlier.

Upscale yogawear retailer Lululemon Athletica Inc cut its current-quarter forecast after sales declined in the
first two weeks of January. The company said on Monday it expects net revenue to range between $513 million and
$518 million for the quarter ending Feb. 2, down from $535 million to $540 million earlier.

SodaStream International Ltd. (SODA) warned it missed its profit targets for the fourth quarter, pointing to a
challenging U.S. holiday selling season and higher product costs, and said some of the headwinds are expected to
continue.