U.S. indices were on rise Tuesday, with all three indices seeing gains above 1% around midday. The Nasdaq is leading the way, up nearly 2%. Crude oil saw gains Tuesday of about 1% after days of decline. Technology companies appear to be today's big winners, while retail continues to struggle.
Shares of DSW (DSW) were down more than 11% after the latest earnings report missed expectations before the bell. The footwear and accessories retailer reported revenue growth this year, but its $681 million fell short of analysts' predictions of $699 million. Furthermore, the adjusted net income of $0.40 was below consensus estimates of $0.45 per share. DSW lowered the anticipated EPS for the full year, altering the range to $1.32 to $1.42 from its previous forecast of $1.54 to $1.64. CEO Roger Rawlins called this a prudent action to ensure inventory, expenses and capital investments are aligned to maximize profitability.
Best Buy (BBY) fell by more than 5% during midday trading. In the latest earnings report, sales of $8.4 billion beat analysts' estimates by 2%; however, news of CFO Sharon McCollam's departure has caused the stock to slide. But TheStreet's Jim Cramer said Best Buy is set to benefit later this year from the release of the iPhone 7, adding that "you are going to want to buy Best Buy as we get closer to the end of the year."
GoPro (GPRO) shares rose more than 5% after the company inked an exclusive partnership with the energy drink company, Red Bull. The deal makes Red Bull an equity partner in GoPro and it will receive less than 1% of its Class A shares. The agreement also includes content production, distribution, cross-promotion and product innovation. The camera company has seen its net income deteriorate and weak earnings growth in 2016.
Alaphabet (GOOGL), commonly known as Google, climbed more than 2% Tuesday after announcing plans to increase the size and frequency of ads. The tech giant is changing ads on its search platform and on Google Maps. According to the Wall Street Journal, ads make up 90% of Google's $75 billion in revenue last year. Shares climbed even after investigators raided Google's Paris headquarters as part of a probe into tax evasion and money laundering.
Netflix (NFLX) saw shares rise more than 4% as its exclusive movie deal with Disney (DIS) gets primed to begin this fall. The deal was actually signed back in 2012, but it will allow Netflix to stream content from Disney, Marvel, LucasFilm and Pixar.
--Written by Anders Keitz