The labor market outlook darkened following a report from outplacement firm Challenger, Gray & Christmas, which tracked 108,400 job cuts last month—a massive jump from the 35,500 reported previously. This surge represents the highest level for that specific month since 2009. Compounding these concerns, new weekly jobless claims climbed by 22,000 to 231,000, exceeding economist forecasts, while the Labor Department noted that December job openings fell by 386,000 to their lowest level since September 2020.

Mixed Fortunes in Luxury and Retail

Despite the macro-economic gloom, performance among luxury retailers remained fragmented. Tapestry shares climbed after the company reported strong second-quarter revenue and upgraded its fiscal outlook. The gains were driven primarily by the Coach brand, which successfully offset sagging sales at Kate Spade. Analysts suggested Coach’s resilience may be coming at the expense of competitors like Michael Kors. Conversely, Ralph Lauren saw its stock price decline even as it reported robust revenue growth fueled by international demand from Gen Z consumers, particularly in Asian markets.

Beauty giant Estee Lauder also adjusted its full-year earnings guidance upward. However, the company cautioned that ongoing trade tensions would likely result in a $100 million headwind due to tariffs. These costs are expected to weigh heavily on profit margins during the second half of the year, highlighting the persistent geopolitical risks facing global consumer brands.