Major benchmarks rallied on Thursday after the U.S. and China agreed to simultaneously phase out existing tariffs on imported goods, stoking hope that the two countries are making progress toward a more comprehensive deal to resolve their long-standing trade war. The Dow Jones Industrial Average (DJINDICES:^DJI) and the S&P 500 (SNPINDEX:^GSPC) both closed at record highs.

Today's stock market

Index Percentage Change Point Change
Dow 0.66% 182.24
S&P 500 0.27% 8.40

Data source: Yahoo! Finance.

As for individual stocks, earnings news left shares of Roku (NASDAQ:ROKU) and Ralph Lauren (NYSE:RL) moving in different directions.

Wall Street sign with three American flags in the background.

Image source: Getty Images.

Roku's impressive quarter just wasn't enough

Shares of Roku lost 16% despite better-than-expected third-quarter results from the streaming media specialist.

Revenue climbed 50% year over year to $260.9 million, as 11% growth in player revenue (to $81.6 million) was stoked by a 79% increase in platform segment revenue (to $179.3 million). That translated into a net loss of $22.2 million, or $0.22 per share. Analysts, on average, were modeling an even bigger loss of $0.28 per share on lower revenue of $256 million.

"Our business momentum and competitive differentiation make Roku an essential partner for content publishers and advertisers," wrote founder and CEO Anthony Wood in a letter to shareholders. "This is evident in the launch of major new streaming services on our platform and by the growth in the number of advertisers who work with Roku."

For the fourth quarter, Roku expects revenue of $380 million to $396 million, the midpoint of which also exceeded consensus estimates for Q4 sales of $386 million.

The most likely reason for the stock's decline? Roku shares were up more than 330% so far in 2019 leading into this report, leaving many investors eager to take some profits off the table regardless of how impressive its quarter turned out to be.

Ralph Lauren's fashionable results

Meanwhile, shares of Ralph Lauren jumped 14.7% after the American fashion leader posted a strong fiscal second-quarter 2020 report. Revenue grew 0.9% year over year to $1.706 billion, translating into adjusted (non-GAAP) earnings of $198 million, or $2.55 per share. Most analysts were looking for adjusted earnings of $2.39 per share on revenue of $1.69 billion. 

"Our global teams are elevating our iconic brand across every market and channel," stated Ralph Lauren, who serves as his company's executive chairman and chief creative officer. "From our stores to our digital flagships and the way we are connecting on social media, the authentic expression of the Ralph Lauren lifestyle is showing up in relevant ways all over the world."

CEO Patrice Louvet added that the company achieved its better-than-expected results in spite of "a more challenging operating environment."

With shares down around 24% over the past year as of yesterday's close, it's no surprise to see Ralph Lauren stock rebounding in response.