Michael Kors Income drops 15%, stock is up 14% pre-market.

In Case you missed our Bitcoin Weekend Special, make sure to catch up on it.

The summer season seems to be affecting the German DAX. After a strong start in the afternoon and a slide-off in the afternoon, the Index reverted back to its previous close being off by 0,03%. If there can be a mention of a clear winning stock, REWE the German retail group would be it, being up 1,43% from its previous close.

The same kind of holiday boredom seems to have hit the Wall Street. Following a rather eventful week on Wall Street, as one month ended and another one began, with a succession of all-time highs being set amid some mixed economic data being issued, the latest five-day span began with prices initially headed somewhat higher. On point, the old week featured confirming evidence that the economy was still pressing ahead, if irregularly. Specifically, the reports showed a solid level of manufacturing growth, a slowing rate of non-manufacturing improvement, and a surprisingly strong employment report. Given that still largely positive backdrop, it is not all that surprising that stocks have been on the ascent. After all, with solid, but not inflationary, economic growth, a cooperative and cautious Fed, and strong earnings, the market backdrop is positive enough to keep the bull alive. On the other hand, multiples are rather stretched, so the margin for error is quite small. Accordingly, although stocks continue to head higher, the gains are not easily secured. And that was the case again yesterday morning, as the initial gain was pared rather quickly. But as has been the case this year, no serious selling took place. Thus, stocks again headed higher as the morning wound down, and the afternoon began. By midday, it looked as though another record in the Dow Jones Industrial Average would be set. The major beneficiaries yesterday were the consumer staples stocks, which performed nicely on the Dow. Slightly weaker performers included the energy stocks, which eased as oil prices fell, and some basic materials names, including recently weak Mosaic. On the other hand, some tech names strengthened, as the NASDAQ, with a mid-afternoon gain of 30 points again led the way. One big tech name doing well yesterday was Apple, which pushed up close to another all-time high. Holding the 30-stock Dow down, with a sharp loss on the day was United Technologies. That issue fell on news that it might be going after a major merger partner in Rockwell Collins. Meanwhile, stocks stayed irregularly higher as the afternoon wound down, but stayed in a tight band throughout the afternoon. As the final bell sounded, the major averages were all in the black, with the Dow’s 26-point gain securing that composite’s ninth straight record close. A four-point advance by the S&P 500 Index and a 32-point surge by the NASDAQ rounded out the session. Going forward, we will get inflation data later in the week along with earnings reports from some of the nation’s retail chains.

Michael Kors said Tuesday that its net income attributable to the company dropped 15 percent to $125.5 million, or 80 cents per share, from $147.1 million, or 83 cents a share, a year ago. Last year’s figure included one-time costs related to the acquisition of a Greater China licensee. Excluding that charge, Kors had earned 90 cents a share. While its profits fell, Tuesday’s results outpaced both the company’s and analysts’ expectations. According to Thomson Reuters, analysts on average were predicting Kors would earn 62 cents per share. That was also the midpoint of the company’s own forecast range. Total revenue for the first quarter came in at $952.4 million, again topping analysts’ estimates for sales of $918.6 million, according to Thomson Reuters. But this was another drop — by 3.6 percent — from last year. The drop in revenue wasn’t a surprise, Saunders commented, but it’s more of a “necessary evil” as Kors gets out of retailers that no longer fit the brand’s fresh strategy. “Reducing ubiquity comes with a price attached.” Michael Kors’ same-store sales dropped 5.9 percent during the period, coming in better than expected. Analysts surveyed by FactSet had predicted a decline of 9 percent. Shares of Michael Kors climbed more than 14 percent higher on the news in premarket hours.

The VW brand said it would offer buyers trading in an old diesel a discount on cars meeting the latest Euro 6 emissions standard, ranging from €2,000 to 10,000€ on its compact cars. And the carmaker proposed an additional discount of between 1,000€ and 2,380€ for those buying more environmentally friendly hybrid, all-electric or natural-gas-powered vehicles. VW was “acknowledging its share of responsibility for climate- and health-friendly mobility on German streets,” it said in a statement.

Ralph Lauren Corp reported better-than-expected quarterly profit and sales as the luxury apparel maker kept a tight leash on discounting and inventory, sending its shares up 5 percent in premarket trading. Ralph Lauren, like other U.S. apparel chains, has been struggling with weak sales due to sluggish spending on clothing and accessories and fierce competition from Amazon.com and fast-fashion retailers.  In a bid to turn its business around, the company has been pulling back inventory from wholesale partners, reducing sales in the off-price channel, engaging in fewer promotional periods, shuttering stores and exiting underperforming brands.  Ralph Lauren’s adjusted gross margins rose 210 basis points to 63.2 percent in the first quarter ended July 1, helped by a double-digit decline in costs.  The company also lowered its inventory levels by 31 percent from a year earlier.  The company’s net income was $59.5 million, or 72 cents per share, in the first quarter ended July 1, compared with a loss of $22.3 million, or 27 cents per share, a year earlier. Excluding items, the company earned $1.11 per share, while sales fell 13.2 percent to $1.35 billion in the quarter. Analysts on average were expecting adjusted earnings of 94 cents per share and revenue of $1.34 billion, according to Thomson Reuters I/B/E/S.

Todays Economic Calendar:

1. NFIB Small Business Optimism Index
2. Redbook
3. Jolts