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What Happened in the Stock Market Today

Steve Symington, The Motley Fool

Major benchmarks rebounded on Wednesday after Chinese government authorities indicated they will cut their reserve requirement ratio for banks "in a timely manner," a move that would encourage lending and potentially reaccelerate growth in the world's second-largest economy. The Dow Jones Industrial Average (DJINDICES: ^DJI) and the S&P 500 (SNPINDEX: ^GSPC) gained about 1%.

Today's stock market

Index Percentage Change Point Change
Dow 0.91% 237.45
S&P 500 1.08% 31.51

Data source: Yahoo! Finance.

As for individual stocks, PVH (NYSE: PVH) rose after a notable insider bought more shares, while Starbucks(NASDAQ: SBUX) fiscal 2020 earnings outlook failed to please investors.

Stock market charts indicating gains, overlaying a digital world map.

Image source: Getty Images.

A vote of confidence for PVH

Shares of PVH, the parent of brands such as Tommy Hilfiger and Calvin Klein, climbed 9.1% after an SEC filing indicated Chairman and CEO Chirico Emanuel spent nearly $10 million yesterday buying 133,155 shares at an average price of just under $75. The move significantly increased Emanuel's stake in PVH to 417,351 shares, worth a total of over $33.8 million as of this writing.

It's hard to blame Emanuel for his timing considering PVH was trading near multiyear lows as of yesterday's close. The apparel leader's stock was hurt by an underwhelming quarterly report in May and, more recently, conservative full-year guidance issued last week. To blame for the latter, Emanuel said at the time, were higher promotions amid weak customer traffic in both North America and China.

Considering both Emanuel's big purchase and the aforementioned news of impending government stimulus in China, it's no surprise PVH stock soared.

Starbucks' lukewarm guidance

Starbucks' stock dropped as much as 3.9% early this morning, then largely recovered to close down around 0.7% after the global coffee behemoth reiterated its fiscal 2019 earnings outlook, but followed with disappointing guidance for next year.

During a presentation this morning at the Goldman Sachs 26th Annual Global Retailing Conference, Starbucks reaffirmed its outlook for earnings per share in fiscal 2019 to arrive in the range of $2.80 to $2.82 -- good for growth of roughly 16% year over year. But it also said that growth will come in part because management chose to pull forward around $2 billion in share repurchases into fiscal 2019, rather than in fiscal 2020 as previously planned.

As such, given both normalized share repurchases and lapping one-time tax benefits in fiscal 2019, Starbucks now expects earnings per share in fiscal 2020 to increase "below" its "ongoing growth model of 10%" -- a reduction from its previous outlook for growth of at least 13%.

Still, CFO Pat Grismer insisted the company's "growth-at-scale agenda is delivering against our expectations," and that its long-term goal for double-digit EPS growth is "fully intact."

With shares trading near all-time highs after nearly doubling over the past year, however, it's understandable that Starbucks' stock pulled back modestly in response.

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Steve Symington has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Starbucks. The Motley Fool has a disclosure policy.

This article was originally published on Fool.com