U.S. Markets closed

Stocks Sink Waiting for Fed's Statement

- By Omar Venerio

U.S. stocks retreated on Thursday morning ahead of Federal Reserve November policy statement. The Dow Jones Industrial Average fell 0.09% to 26,150, the S&P 500 index lost 0.34% to 2,804 and the Nasdaq Composite Index slid 0.50% to 7,533.

Shares of Fossil Group Inc. (FOSL) fell more than 7% on Thursday morning before reversing and trading higher. The company posted third-quarter earnings of 19 cents per share on $608.8 million in revenue, reflecting a 11.6% year-over-year decline. The company beat earnings estimates by 29 cents, but fell $7.5 million short of revenue expectations.

"Our third quarter operating performance reflects the ongoing success of our current strategy during a transformational period for our category and for Fossil Group," Chairman and CEO Kosta Kartsotis said. "We are highly focused on initiatives that improve our overall profitability and establish a foundation for sustainable growth."

The gross margin rose 720 basis points to 53.6% due to an inventory evaluation, lower promotional activity and markdowns and favorable product mix. Operating income was $22.6 million, an improvement from an operating loss of $0.5 million in the third quarter of fiscal 2017.

For the full year, the company expects net sales to decline 9% to 7% and a gross margin between 52% and 53%. For the fourth quarter, the company projects net sales to decline 16% to 10% and a gross margin in the range of 51.5% to 53.5%.


  • TripAdvisor Inc. (TRIP)
  • Hologic Inc. (HOLX)
  • L Brands Inc. (LB)
  • News Corp. (NWSA)


  • Wynn Resorts Ltd. (WYNN)
  • Perrigo Company PLC (PRGO)
  • DaVita In.c (DVA)
  • Qualcomm Inc. (QCOM)
  • Albemarle Corp. (ALB)

Global markets

In Europe, the U.K.'s FTSE 100 rose 0.33%, France's CAC 40 fell 0.13%, Germany's Dax dipped 0.45% and Spain's IBEX 35 advanced 0.099%.

In Asia, Japan's Nikkei 225 gained 1.82%, India's BSE Sensex jumped 0.70%, Hong Kong's Hang Seng rose 0.31% and China's Shanghai Composite slipped 0.22%.

Disclosure: The author holds no positions in any stocks mentioned.

Read more here:

This article first appeared on GuruFocus.