Please ensure Javascript is enabled for purposes of website accessibility

What Happened in the Stock Market Today

By Jim Crumly - Updated Feb 14, 2018 at 5:38PM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

On a day of strong gains for the market benchmarks, Fossil exceeded fourth-quarter earnings expectations, and Chipotle announced its new CEO.

Stocks shrugged off news of higher inflation and rising interest rates Wednesday, and the Dow Jones Industrial Average (^DJI -0.82%) and the S&P 500 (^GSPC -0.88%) both surged more than 1%.

Today's stock market

Index Percentage Change Point Change
Dow 1.03% 253.04
S&P 500 1.34% 35.70

Data source: Yahoo! Finance.

Bank stocks led the rally on the steepening yield curve, but rate-sensitive utilities fell. The SPDR S&P Bank ETF (KBE -0.93%) rose 2.9% while the Utilities Select SPDR ETF (XLU 1.11%) lost 1.1%.

As for individual stocks, Fossil Group (FOSL -7.51%) nearly doubled on news of a turnaround, and Chipotle Mexican Grill (CMG 1.48%) investors cheered the announcement of the company's new CEO.

Stock graph and prices.

Image source: Getty Images.

Fossil skyrockets on smartwatch sales

Shares of fashion accessory maker Fossil Group soared an astounding 87.7% after the company announced fourth-quarter results that declined year over year but trounced Wall Street expectations. Revenue fell 4% to $921 million and adjusted earnings per share sank 47% to $0.64. Analysts were expecting EPS of $0.40 on sales of $890 million. 

Fossil's primary business, watches, declined 3% to $728 million, and 6% in constant currency terms. Leathers fell 7% and jewelry sales were down 8%. Sales in the Americas fell 9% in constant currency, while those in Europe and Asia dropped 6% and 3%, respectively.

Obviously there was good news amid all those declines, and that would be that the company is having surprising success with its smartwatches, or "wearables," as Fossil call them. CEO Kosta Kartsotis said in the press release:

While sales and earnings were challenged as expected, we generated progress toward our objectives that include: driving growth in wearables across our portfolio of powerful brands, leveraging our scale to lower supply chain costs, increasing our digital capabilities, and continuing the transformation of our business through New World Fossil. To this end, fiscal 2017 saw us nearly double wearables to over $300 million, representing 14% of total watch sales. 

In the conference call, company officials said industry research showed that the wearables market was $17 billion last year and is expected to grow to $32 billion by 2020. Fossil is one of the most heavily shorted stocks on the market, so signs that the company is getting traction in smartwatches sent those shorts scrambling to cover.

Chipotle's new CEO has investors cheering

Chipotle Mexican Grill announced its selection to succeed founder Steve Ells as CEO, and investors sent the stock up 15.4%. The company hired Brian Niccol, former CEO of Taco Bell, a division of Yum! Brands.

Niccol has been at Taco Bell since 2011, and oversaw a turnaround of that brand, making it popular with younger consumers through use of social media and clever advertising. He also drove new initiatives like the introduction of breakfast and the use of mobile ordering and payment. Prior to his stint at Taco Bell, Niccol led brand strategy and positioning at Pizza Hut and spent 10 years at Proctor & Gamble.

"Brian is a proven world-class executive, who will bring fresh energy and leadership to drive excellence across every aspect of our business," said founder, Chairman, and current CEO Steve Ells in the press release. "His expertise in digital technologies, restaurant operations and branding make him a perfect fit for Chipotle as we seek to enhance our customer experience, drive sales growth and make our brand more relevant." Ells will become executive chairman.

Chipotle still hasn't recovered from food safety issues in 2015, and the company has stumbled in recent attempts to innovate with new products such as chorizo and queso. With the stock still down 61% from its peak almost three years ago, investors had been hoping for a change, and it's hard to imagine a better choice than an experienced executive and turnaround expert like Niccol.

Invest Smarter with The Motley Fool

Join Over 1 Million Premium Members Receiving…

  • New Stock Picks Each Month
  • Detailed Analysis of Companies
  • Model Portfolios
  • Live Streaming During Market Hours
  • And Much More
Get Started Now

Stocks Mentioned

Chipotle Mexican Grill, Inc. Stock Quote
Chipotle Mexican Grill, Inc.
$1,307.26 (1.48%) $19.06
Fossil Group, Inc. Stock Quote
Fossil Group, Inc.
$5.17 (-7.51%) $0.42
Dow Jones Industrial Average (Price Return) Stock Quote
Dow Jones Industrial Average (Price Return)
$30,775.43 (-0.82%) $-253.88
S&P 500 Index - Price Return (USD) Stock Quote
S&P 500 Index - Price Return (USD)
$3,785.38 (-0.88%) $-33.45
The Select Sector SPDR Trust - The Utilities Select Sector SPDR Fund Stock Quote
The Select Sector SPDR Trust - The Utilities Select Sector SPDR Fund
$70.13 (1.11%) $0.77
SPDR Series Trust - SPDR S&P Bank ETF Stock Quote
SPDR Series Trust - SPDR S&P Bank ETF
$43.88 (-0.93%) $0.41

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Motley Fool Returns

Motley Fool Stock Advisor

Market-beating stocks from our award-winning analyst team.

Stock Advisor Returns
S&P 500 Returns

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 07/01/2022.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.