U.S. stocks opened slightly higher on Wednesday, amid mixed results from luxury retailers and an acquisition by Hormel Foods Corp. The Dow Jones Industrial Average lately added 113.01 points, or 0.63%, to 18,154.55. The S&P 500 gained 13.16 points, or 0.63%, to 2,117.36. The Nasdaq Composite was up 36.73 points, or 0.73%, to 5,069.48.
Tiffany & Co., the luxury jewelry retailer, reported better-than-expected fiscal first-quarter profit and sales, and provided an upbeat earnings outlook for the year. For the quarter ended April 30, net earnings fell to $104.9 million, or 81 cents a share, from $125.6 million, or 97 cents a share, in the year earlier period. Total sales declined to $962.4 million from $1.01 billion.
Michael Kors, the seller of handbags, clothing and accessories, issued a weak outlook and said sales are being pressured by foreign currency fluctuations. For the three months ended March 28, Michael Kors Holdings Ltd. earned $182.6 million, or 90 cents per share. That compares with $161 million, or 78 cents per share, a year earlier.
Toll Brothers Inc. (TOL) reported a 4.1% rise in net income for the second quarter ended April, thanks to higher contract sales and improved profit margins. The U.S.-based homebuilder said Wednesday its second-quarter net income was $67.9 million, compared with $65.2 million last year.
Hormel Foods Corp. agreed to buy Applegate Farms LLC for about $775 million, a move that would give the maker of Spam a foothold in the organic-meats category. Closely held Applegate’s annual sales are expected to be about $340 million this year, Hormel (HRL) said in a news release Tuesday announcing the deal.
Former Federal Reserve Chairman Ben Bernanke said that China’s economic slowdown should not worry markets as there was no risk of a hard landing, and emphasized that a move to raise U.S. rates should be viewed as a positive sign for the world’s largest economy.
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