Jobs, Services Data Lead to Green Markets

Company Performance - lululemon athletica (LULU) reported Q1 earnings of $2.54 per share, exceeding the Zacks consensus by 16 cents and up from $2.28 per share in the same quarter last year. Revenues reached $2.21 billion, a 10.5% year-over-year increase, slightly beating expectations. Despite weak guidance for the upcoming quarter, full-year earnings projections were raised, resulting in a 12% increase in LULU's stock price in late trading [4] - Five Below (FIVE) experienced a 16% decline in stock price after its Q1 report, which showed earnings of 57 cents per share and sales of $811.9 million, both below Zacks consensus estimates of 62 cents and $831.5 million. The company also projected lower revenue figures for the upcoming quarter and full year, with notable declines in free cash flow and same-store sales [4] Economic Indicators - The ISM Services PMI for May was reported at 53.8%, surpassing expectations of 50.7% and indicating growth from an unrevised 49.4% the previous month. This marks the 46th higher ISM Services report in the past 48 months. The Business Activity Index was at 61.2%, while the Employment Index decreased to 47.1% [2] - The S&P Services PMI for May was reported at 54.8, aligning with estimates and the previous month. Output growth reached a one-year high, although the labor force was reduced as employees exited without replacement. New orders saw renewed expansion, but new export orders declined, indicating potential challenges for the U.S. services sector in the global market [3]