Major benchmarks continued to climb on Wednesday after Chinese authorities surprised investors by saying the country will provide exemptions from tariff increases for certain American imports, spurring hope for improved trade relations between the two countries.

By the end of the day, both the Dow Jones Industrial Average (DJINDICES:^DJI) and the S&P 500 (SNPINDEX:^GSPC) had climbed around 0.8%.

Today's stock market

Index Percentage Change Point Change
Dow 0.85% 227.61
S&P 500 0.72% 21.54

Data source: Yahoo! Finance.

As for individual stocks, disparate earnings news sent shares of RH (NYSE:RH) and Dave & Buster's Entertainment (NASDAQ:PLAY) in opposite directions today.

Digital world map on a colorful LED display with arrow charts indicating gains.

Image source: Getty Images.

RH decorates a solid quarter

Shares of Restoration Hardware parent RH rose 4.8% after the home furnishings retailer said its fiscal second-quarter adjusted revenue increased 9.9% to $706.5 million, translating to 59% growth in adjusted earnings to $3.20 per share. To be fair, the latter figure included a $0.20-per-share benefit related to a change in RH's normalized tax rates. But even when excluding that item, its results still would have trounced analysts' expectations for earnings of $2.70 per share on revenue closer to $698 million.

CEO Gary Friedman credited the outperformance to a combination of the strength of its core business, new galleries, the expansion of the RH Hospitality concept, improved efficiency from its redesigned home-delivery network, and a planned acceleration in outlet sales related to the closure of a distribution facility late last fiscal year. 

As such, RH increased its full fiscal-year outlook to call for adjusted revenue of $2.68 billion to $2.694 billion (up from $2.658 billion to $2.674 billion previously), and for adjusted net income per share of $10.53 to $10.76 (up from its prior target range of $9.08 to $9.52).

Dave & Buster's not-so-fun guidance

Meanwhile, Dave & Buster's dropped 4.6% as the sports- and arcade-centric restaurant chain announced its own solid second-quarter report, but also reduced its full-year outlook.

Revenue climbed 8% year over year to $344.6 million, as a 1.8% decline in comparable-store sales partly offset contributions from new locations. Net income grew to $32.4 million, or $0.90 per share, up from $33.8 million, or $0.84 per share a year earlier. Most analysts were looking for lower earnings of $0.84 per share on revenue of $344.3 million.

Dave & Buster's is also tackling five initiatives to improve performance, including revitalizing existing stores, improving guest engagement, investing more in its "highest-return new store locations," improving cost management, and continuing to return capital to shareholders through dividends and stock repurchases.

But in the meantime, given what it calls today's "competitive environment" and the time it will take for those initiatives to yield fruit, Dave & Buster's lowered its full fiscal-year guidance. It now calls for revenue of $1.338 billion to $1.359 billion (down from $1.365 billion to $1.39 billion before), assuming a comps decline ranging from 2% to 3.5% (compared with a previous range of a 1.5% decline to a 0.5% gain) -- which should yield net income of $91 million to $100 million (down from $103 million to $113 million before).