American Airlines & Southwest Airlines
Signs of weakness from American Airlines and Southwest Airlines. American lowered its second-quarter forecast, while Southwest announced limits on added seats, citing weak economic growth. This comes just a day after Delta and United revised outlooks to the downside. Shares of American Airlines rose one percent to $40.33. Southwest fell four percent to $34.59.
Lululemon out with earnings that beat on both the top and bottom lines. Quarterly profit more than doubled and on that, the yogawear retailer raised its revenue guidance for the year. Shares rose about 11 percent to $68.27.
An ugly report from Hovnanian. The home builder posted a quarterly loss that was wider than expected, as the company was hurt by weaker margins. The CEO says he expects the firm will post a loss for the year. Shares fell almost ten percent to $2.86.
General Electric will sell its private equity lending unit to Canada’s largest pension fund for about $12 billion. The move is a major step towards the industrial company’s retreat from banking. Shares were up a fraction to $27.33.
Campbell Soup is spicing things up with its purchase of salsa maker Garden Fresh Gourmet. The $230 million buy is part of a strategy to diversify beyond canned foods and get into the fresh and organic business. Shares were a fraction higher to close at $46.57.
Burlington Stores reported same-store sales that were well below estimates, blaming increased store closures and harsh winter weather. The off-price retailer also announcing plans to raise the minimum wage for its employees with six months or more of service to $9 an hour. Shares tumbled 8.5 percent to $49.35.
Etsy’s backer, Tiger Global Management, hiked its stake in the firm to about nine percent. The move invigorated interest in the online craft marketplace. Shares popped 7.5 percent to $15.99.