U.S. stocks trade sideways and crude oil was in focus after the extended OPEC member nations agreed to bring forward additional oil supply in the next two months.

Chewy, the online pet food retailer reported first quarter profit after the company expanded its active customer base with larger purchases.

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U.S. market indexes struggled after mortgage rates rose, economic worries resurfaced, and energy prices failed to budge from elevated levels. European and Asian markets closed down.

U.S. stocks turned lower on the renewed worries of the health of the economy after the latest jobs survey showed a decline in available jobs. Crude oil and the yield on the 10-year U.S. Treasury notes headed higher.

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U.S. Indexes Extend May Losses

May 31, 2022
Barry Adams
U.S. stocks closed mixed after another day of lackluster trading. European leaders agreed to ban the import of oil from Russia and cargo insurance but appeared to be divided in shipping advanced arms to Ukraine.

U.S. stocks turned lower after a week of advance and another leg up in energy prices dampened the sentiment. Eurozone record inflation advanced for the seventh month in a row and the EU leaders placed a ban on energy products imports from Russia.

Investors after weeks of rising inflation and bond yields hit the buy button after the latest measure of inflation showed signs of cooling. The personal consumption expenditure, controversial but Fed's preferred measure, showed a mild decline over a year in April.

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Burlington Stores quarterly results were marred by consumer demand shift, inventory mismatch, and rising freight and product costs. The retailer said the monthly sales trend is encouraging but issued a cautious outlook.

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Ulta Beauty reported strong quarterly results as customers return to work and start to participate in events and activities. The retailer lifted its full-year sales and earnings growth outlook.

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Gap Inc said quarterly sales were marred by falling demand at its namesake brand and management challenges at Old Navy. Banana Republic sales surged 24%. The company plans to close 350 stores in North America.

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Stocks on Wall Street advanced after the release of personal income and consumption data. Retailers were in focus after American Eagle Outfitters, Big Lots, and Hibbett results disappointed investors. Costco same stores sales showed consumer strength.

Costco Wholesale Corp said U.S. comparable sales in the first quarter rose 10.7% excluding fuel sales and reported first quarterly revenues in excess of $50 billion. Membership revenues surged 9% approaching $1 billion.

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U.S. market indexes advanced after retailers reported stronger than expected results at the top and bottom end of the consumption. Macy's, Williams-Sonoma, Dollar General and Dollar Tree results reassured investors.

Dollar General's quarterly earnings declined as the company and its customers battled inflation and customers limit purchases to basic items. The deep discount retailer lifted annual sales growth outlook.

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Williams Sonoma quarterly sales slowed but still ahead of expectations. Pottery Barn comparable sales increased 15% on top of 41% increase in the quarter a year ago.

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