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Data Deluge

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The Dow inches ever-closer to a new all-time high this morning, closing Monday regular trading above the 26K threshold and up another 60 points in today’s pre-market. Positive sentiment regarding a new trade deal with Mexico has added fuel to the overall bullish vapors, with a lack of major economic data hitting the tape affecting markets either way.

That’s not completely true, however: a new read on Advance Trade Goods for July showed a widening in our trade deficit — a revised improvement from -$68.3 billion to -$67.9 billion in June — by 6.3% to $72.2 billion. We look for analyst reports today on whether or not our current global rising tariff environment is affecting our current trade balance, but really: we didn’t get to -$70+ billion in trade deficit overnight, nor over the past year and a half. These deficits are part of American finance, and have been so since the Alexander Hamilton days.

And home price growth is slowing again, according to the latest Case-Shiller index released this morning. This is a lagging indicator, posting results from June, but widely considered to be the most accurate in tracking the home-buying market. A headline of 6.2% nationwide growth in home sales is below the 6.5% expected and the 6.4% rate in May. Las Vegas, San Francisco and Seattle continued to see the highest home price growth, whereas Washington, Chicago and New York grew the slowest in the 20-city index.

And the Retail sector continues its healthy Q2 earnings results, with several more specialty retailers outperforming expectations ahead of the bell this morning:

Shares of discount shoe retailer DSW (DSW - Free Report)  are up 22% in today’s early trading, posting a 34% positive earnings surprise to 63 cents per share in the just-reported quarter, up big from 39 cents in its Q1. Revenues zoomed past estimates to $793.7 million from the Zacks consensus $691 million. Same-store sales grew 9.7% year over year, and the Zacks Rank #2 (Buy)-rated company revised both full-year sales and earnings guidance notably higher. For more on DSW’s earnings, click here.

Luxury retailer Tiffany & Co. (TIF - Free Report)  is also trading up, to the tune of 6% from Monday’s close, on quarterly earnings of $1.17 that beat the $1.00 consensus on revenues of $1.076 billion that grew 12% year over year. Comps surged 8% year over year, led by an 18% gain in its Jewelry Collections segment. For more on TIF’s earnings, click here.

And Best Buy (BBY - Free Report)  also beat estimates this morning, posting 91 cents per share from an estimated 83 cents, and 69 cents in the year-ago quarter. Sales of $9.38 billion surpassed expectations by more than a full percentage point, for the third positive revenue surprise in the past four quarters. However, shares are trading down 5% in pre-market activity on disappointing guidance for the full year. For more on BBY’s earnings, click here.




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