Stocks Opened Higher Amid Earnings

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.

About the Author

has written 15904 stories on this site.

Write a Comment

Gravatars are small images that can show your personality. You can get your gravatar for free today!

You must be logged in to post a comment.

Copyright © 2012 Nine Stocks