Stocks Close Mixed; Lululemon CEO to Resign
By: ABC Digital
(NEW YORK) — The markets were mixed on Monday as investors played down signs of an improving government credit market.
The Dow Jones Industrial Average dropped nearly 10 points to close at 15,239. The Nasdaq Composite closed up 4.55 points at 3,474. The S&P 500 finished off a fraction of a point at 1,643.
Traders Monday were not impressed by Standard & Poor’s raising its outlook for U.S. government debt.
Standard & Poor’s ratings service is boosting its outlook for U.S. government debt from “negative” to “stable,” citing “stable government spending levels” and smoother sailing for the economy. Two years ago the agency downgraded the government’s long-term debt rating because of gridlock in Washington.
Apple shares dropped on new initiatives announced at its annual software developers meeting in California.
In after-hours trading, Lululemon shares slid on word the fitness apparel company’s CEO, Christine Day, is stepping down after more than five years. Lululemon’s shares were down 15 percent to $12.40. Before news of Day’s resignation broke, the stock hit a one-year high of $82.50.
Lululemon’s announcement also comes just a few months after the company had to recall one of its yoga pants for being too sheer. Last week, the company announced it was starting to get some of its Luon yoga pants back on stock shelves after the recall. Lululemon said Monday in a statement that the board has already formed a search committee to replace Day.
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