- Markets finished the day slightly higher.
- Federal Reserve leaves rates unchanged.
Sales at stores open at least a year increased 10% during Lululemon's most recent quarter compared with the same period a year. The company also grew its profit by 24% compared with a year prior.
But investors expected a stronger outlook from Lululemon and sold off shares of the company.
Lululemon reported double-digit increases during the quarter in both its men's and women's divisions, including a 38% increase in its fast-growing men's unit.
"Part of Lululemon’s success comes from it leaning more heavily into areas where it is less developed. One aspect of this comes from the menswear business," said Neil Saunders, managing director at GlobalData Retail.
The overnight lending market freakout has been solved, after the Fed started injecting billions of dollars to keep the markets steady. Right?
Not so fast.
"We have seen the riskiest form of junk bonds refuse to come back in line with what the rest of the stock market and money managers are doing," said Danielle DiMartino Booth, CEO and chief strategist of Quill Intelligence, on CNN Business' "Markets Now" live show.
"That suggests investors see risk in the market, and that's the big worry for 2020 that keeps Jay Powell up at nightl," she said.
Netflix CEO Reed Hastings has said no ads will ever appear on his company's platform. Buuuuut, Disney+ is starting to capture attention, and it might be time to lower Netflix's prices, CNN Business' Paul R. La Monica said on CNN Business "Markets Now" live show.
Netflix's subscriber growth for US has slowed.
La Monica also noted Apple is the strongest stock in the Dow this year. But can it continue its streak? People are excited about a 5G iPhone, but "whether the iPhone can come back and create revenue on the device side, that remains to be seen."
If you want to get out of FAANG altogether, La Monica recommended financials -- the Fed could lower rates next year, boosting banks and lowering bond yields.
It's Fed day, and the markets are quiet. But Peter Tuchman, floor trader at Quattro Securities, said traders are waiting for the Fed's signals about where the economy is going in 2020.
On CNN Business' "Markets Now" live show, Tuchman told Alison Kosik that there's a 99% probability the Fed will not lower rates further on Wednesday. The market could gyrate a bit after the Fed's announcement comes out, but that won't have a longterm effect on stocks.
"I think we're going to see a bob and weave," Tuchman said. "We're in a chokehold over the tariffs. There are so many unkowns yet the market trades higher."
Peloton's stock, currently hovering around $32, is still above its IPO price of $29. But it's now about 15% below the peak of about $37 that it hit earlier this month.
I talked about the Citron report and the stock with Julia Chatterley on CNNi's First Move. Warning. Puns about bicycles follow.
The company forecasts that same-store sales will decline in the "high-teens" for the remainder of the year. GameStop's quarterly sales sunk nearly 26% to $1.4 billion.
American Eagle shares are now down more than 25% this year.