The stock market opened the new week on a generally positive note, with market participants looking primarily at favorable indications from trade negotiations between the U.S. and China in hopes of greater macroeconomic stability in the year to come. As of 11 a.m. EST on Monday, the Dow Jones Industrial Average (DJINDICES:^DJI) had climbed 33 points to 28,857. The S&P 500 (SNPINDEX:^GSPC) gained 9 points to 3,274, and the Nasdaq Composite (NASDAQINDEX:^IXIC) picked up 30 points to 9,209.
The holiday shopping season always offers a valuable look at the health of the consumer economy, and high-end yoga apparel specialist lululemon athletica (NASDAQ:LULU) gave some signs that consumers are stronger than ever. Airline investors hope that they’ll see the same optimism when Delta Air Lines (NYSE:DAL) reports its latest results on Tuesday.
Holiday cheer for Lululemon
Shares of Lululemon rose 3% after it gave its latest reading on how the holiday season went. Based on the boosts to guidance that the company made, the end of 2019 went well.
On the sales front, Lululemon said that it now expects fourth-quarter revenue between $1.37 billion and $1.38 billion. That’s up by roughly $50 million to $55 million from its previous guidance. The retailer sees comparable-store sales having climbed by percentages in the mid to high teens year over year, versus earlier projections for low-double-digit percentage increases in comps.
Earnings also look more promising. The yoga specialist said it now believes quarterly earnings will be between $2.22 and $2.25 per share, up from its previous projections for $2.10 to $2.13.
Investors were pleased with the enthusiasm of CEO Calvin McDonald, who said, “We’re excited by the momentum in our business over the holiday period with guests responding well to our innovative merchandise offerings.” Shareholders are also feeling that optimism, and Lululemon