Thursday morning gave investors an impressive opening on Wall Street. Stock market indexes soared on reports that Chinese leaders would still meet with U.S. trade officials despite the increased tensions between the two nations in recent weeks. Investors took the news as a sign that the worst-case scenarios on trade are unlikely to play out. As of 11 a.m. EDT, the Dow Jones Industrial Average (DJINDICES:^DJI) was up 446 points to 26,802. The S&P 500 (SNPINDEX:^GSPC) rose 41 points to 2,979, and the Nasdaq Composite (NASDAQINDEX:^IXIC) picked up 139 points to 8,116.
Earnings season is almost over, but there are still a few noteworthy companies that are reporting their results. Jewelry retailer Signet Jewelers (NYSE:SIG) wowed its shareholders with sparkling results during the second quarter, and those who follow yoga apparel specialist lululemon athletica (NASDAQ:LULU) hope that its numbers will look equally healthy.
A diamond in the rough
Shares of Signet Jewelers jumped 21% following the jewelry retailer's report of its second-quarter financial results. Even though some of the numbers might not appear all that impressive on their face, investors were pleased to see signs of improvement for the company.
Revenue during the quarter was down almost 4% from year-ago levels, driven largely by a 1.5% drop in same-store sales for the period. Adjusted earnings per share also fell year over year. However, Signet's bottom line doubled what most investors had expected from the jeweler.
Signet was also upbeat about its future, raising some of its guidance. The company still expects same-store sales to fall between 1.5% and 2.5% on the year, but it boosted its adjusted earnings projections by $0.03 to $0.06 to a new range of $2.91 to $3.23 per share.
Some investors have criticized Signet for failing to achieve the higher margins that some of its luxury retail rivals have achieved. However, shareholders have high hopes that the company's turnaround efforts are finally starting to pay off and will show continued improvement in the months to come.
Strike a pose
Shares of Lululemon Athletica were higher Thursday morning, climbing 3% as investors anticipated the yoga apparel retailer's second-quarter financial report after the market closes this afternoon. Lululemon has been on a roll this year, with its stock having soared by more than half since the beginning of 2019, and shareholders are hoping for more.
Lululemon does face some near-term challenges that could weigh on its immediate performance. Rising tariff rates have had an impact on the retailer, and that's prompted the company to take measures to try to control increasing costs.
However, over the long run, a lot is going right for Lululemon. Quality control issues seem to be behind it, and expansion into international markets beyond North America holds a lot of promise for the yoga retailer. Competition in athletic apparel more broadly has been fierce, but Lululemon hasn't hesitated to push into other areas like outerwear in its efforts to dominate the category.
Investors want to see Lululemon remain the growth stock success story that it's been for a long time. Many retailers have reported good results recently, but we'll have to wait until this afternoon before we'll know whether Lululemon's in the same position.