Key Takeaways
- The S&P 500 edged 0.4% higher on Thursday, Feb. 6, as investors responded to the latest earnings results and awaited Friday morning’s employment data.
- Shares of luxury lifestyle companies Tapestry and Ralph Lauren pushed higher following strong earnings results from the key holiday quarter.
- Skyworks Solutions shares plunged after the chipmaker said it sees increased competition in its business supplying components for Apple’s iPhone.
Major U.S. equities indexes were mixed as markets absorbed the most recent flow of earnings releases.
The wavering stock market session came ahead of Friday morning’s jobs report. The S&P 500 ended Thursday trading 0.4% higher, while the tech-heavy Nasdaq added 0.5%. Meanwhile, the Dow industrials slipped 0.3%.
Shares of Tapestry (TPR), the parent company of the Coach, Kate Spade, and Stuart Weitzman brands, surged 12.0%, securing the S&P 500’s top performance. The stock’s push higher came after the luxury goods company topped sales expectations for the critical holiday quarter and lifted its full-year guidance, highlighting strong sales growth at Coach.
Tapestry was not the only luxury lifestyle stock enjoying strong gains on Thursday. Ralph Lauren (RL) shares jumped 9.7%. The apparel and accessories designer posted better-than-expected quarterly sales and profits as well as boosted its revenue forecast.
Philip Morris (PM) also beat sales estimates for its fourth quarter, and shares of the tobacco giant popped 11.0% higher. The company highlighted strong demand for its Zyn nicotine pouches, motivating efforts to increase production of the popular smokeless tobacco product.
Skyworks Solutions (SWKS) shares plummeted 24.7%, the most of any S&P 500 stock. The semiconductor manufacturer warned of growing competition in supplying chips for Apple (AAPL). Since Apple is Skyworks’ largest customer, the competitive challenges could significantly impact overall sales.
Military shipbuilder Huntington Ingalls Industries (HII) reported lower-than-expected quarterly sales and profits, and its shares sank 18.3%. Elevated costs at its key shipyard in Newport News, Virginia, where Huntington constructs aircraft carriers and other large vessels, dragged on the results.
PTC (PTC) shares lost 9.6% following the design software firm’s quarterly earnings release. Analysts said the provider of product lifecycle management systems forecasts suggests it may be challenging for the company to sustain its growth trajectory. BMO analysts trimmed their price target on PTC stock after the release.