Stocks Plunge Along With Oil Prices; This Retailer Plummets To 5-Year Low – Investor's Business Daily

XAutoplay: On | Off The stock market opened on an up note early Wednesday after overnight positive manufacturing data out of China. However, gains were quickly pared and all three major indexes turned red after Chicago PMI hit its lowest level since January. The Nasdaq lagged with a 0.6% loss, while the S&P 500 and Dow Jones industrial average fell 0.3% each.

Among the Dow industrials, medical components Pfizer (PFE), Merck (MRK), and Johnson & Johnson (JNJ) found themselves at the head of the pack. Pfizer gained 1.3%, while Merck and JNJ followed up with gains of 0.8% each.

In early trading, the blue chip’s laggards were financial components Goldman Sachs (GS) and JPMorgan (JPM), falling 3% and 1.8%, respectively.

On the S&P 500, Analog Devices (ADI) surged over 4% after its big Q2 earnings beat. The chipmaker handily exceeded its sales and earnings targets while providing an optimistic outlook for the current quarter. The stock broke out of a cup base with a 84.34 buy point on Tuesday.

On the downside, energy names found themselves at the bottom of the S&P 500’s performers for a second straight day as oil prices plunged again. Crude dropped 2.9%. Transocean (RIG) dropped 4.4%, while Chesapeake Energy (CHK) fell 2.7%.

Retail stocks were showing mixed action in the stock market today. Michael Kors (KORS) fell another 7% to a five-year low after its fiscal-Q4 earnings release resulted in weak same-store sales and a gloomy outlook. Quarterly earnings have declined for a four consecutive quarters, capped off by a 28% decline in the quarter reported. The retailer plans to close 100-125 stores over the next two years. Women’s apparel retailer J. Jill (JILL) shot up almost 12% after its top- and bottom-line beat.

Leading retailer Ollie’s Bargain Outlet (OLLI) will report its Q1 earnings after the close today. The stock is well-extended from a 33.55 flat-base buy point.

Action in the IBD 50 was predominantly negative as the general market reversed lower after the open. On the downside, Chemours (CC) dropped almost 6%, while fiberoptics stock Lumentum (LITE) moved down almost 4%. (STMP) fell hard for a second straight day after last week’s breakout. Shares were down almost 2%.

On the upside, Control4 (CTRL) rose 2.5%, while New Oriental Education (EDU) moved up 1.6%.

Chicago-region manufacturing fell off sharply in May, sending Kingsbury International’s Chicago Purchasing Managers Index to a reading of 55.2.  That was well below April’s 58.3 tally, as well as economist projections for a downtick to 57.5.


Michael Kors Dives On Outlook, Will Shut 100-125 Stores; J. Jill Soars

Analog Devices Jumps On Big Q2 Earnings Beat, Raised Outlook

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