NEW YORK, NY / ACCESSWIRE / January 10, 2017 / The Dow Jones Industrial Average pulled back Monday after nearly breaking the 20,000 point plateau Friday. Declines by financial and energy sectors pressured the Index lower. Monday, the Dow declined 0.38 percent to close at 19,887.38, in its previous session the Dow touched a high of 19,999.63. "Our view about the Dow (hitting) 20,000 is not a matter of if, but a matter of when," said Matt Jones, U.S. head of equity strategy at J.P. Morgan Private Bank in New York. Latest reports on Lululemon Athletica Inc. (NASDAQ: LULU) and Global Payments Inc. (NYSE: GPN).
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The S&P 500 Index declined 0.35 percent to close at 2,268.90. The technology sector was the largest gainer on Monday as Apple posted a 0.92 percent gain as January 9th marked the 10th anniversary of the iPhone's debut. As we enter into earnings season with the big banks later this week, companies in the S&P 500 Index are expected to post a profit increase of 5.8 percent year-over-year in the recent quarter, according to Thomson Reuters I/B/E/S.
Lululemon Athletica's shares declined 0.12 percent to close at $68.19 a share Monday. The stock traded between $67.15 and $68.54 on volume of 2.24 million shares traded. The company has narrowed its guidance for revenues in the fourth quarter of fiscal 2016 ending January 29, 2017, to be between $775 million to $785 million, compared to its previous guidance range of $765 million to $785 million. Diluted earnings per share guidance were narrowed to a range of $0.99 to $1.01 per share for the fourth quarter, compared to its previous guidance range of $0.96 to $1.01 per share.
"We had a strong holiday season in both our store and digital channels driven by our assortment, operational execution and guest experience. Our entire team is excited about the momentum in the business and I am grateful to our global collective for their great work and enthusiasm. We look forward to 2017 as we continue to advance on our long term goals," said Laurent Potdevin, CEO of lululemon.
Global Payments' shares spiked 7.17 percent to close at $79.79 a share Monday. The stock traded between $78.06 and $80.88 on volume of 3.86 million shares traded. The Company has reported GAAP revenues of $941.8 million for second quarter of fiscal 2017, compared to $722.4 million in the second quarter of fiscal 2016. The company reported adjusted net revenues were $817.2 million for the second quarter of fiscal 2017, an increase of 58 percent when compared to $518.3 million in the second quarter of fiscal 2016. Analysts had projected adjusted revenues to be $803.4 million, according to ten analysts surveyed by Zacks. For 2017, the company expects adjusted net revenues to be in the range of $3.35 to $3.45 billion.
"We exceeded our expectations for organic adjusted net revenue growth, operating margin expansion and adjusted earnings per share growth for the quarter," stated Cameron Bready, Executive Vice President and Chief Financial Officer. "As a result of this strong performance and momentum, we are introducing accelerated growth expectations for calendar 2017. We are also raising our expectation for expense synergies from the Heartland merger to $135 million, a $10 million increase from our prior target."
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