U.S. stocks climbed higher after first-quarter GDP projection was revised to a larger decline and initial jobless claims fell. Dollar General and Macy's results lifted market sentiment. Tech stocks advanced after Broadcom agreed to acquire VMWare for $61 billion.

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S&P 500 Rebounds 1% After Fed Minutes

May 25, 2022
Barry Adams
U.S. stocks jumped after the Fed minutes of meeting showed policy members are willing and ready to lift rates higher at the next meetings if necessary. The strong commitment to quell inflation bolstered the market sentiment.

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Urban Outfitters net income in the quarter plunged on higher raw materials and freight costs and longer lead times contributed to a surge in inventories.

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Toll Brothers quarterly sales rose 19% and net income soared 73%. Home backlog value jumped 35% to $11.7 billion average home price neared $900,000.

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Stocks traded lower and investors reacted to the latest batch of earnings and awaited details of the latest Fed policy meeting on May 4. Dick's Sporting Goods plunged 13% on cautious outlook.

Advance Auto Parts quarterly sales declined 1.3% and net income in the quarter fell 26%. The retailer guided full-year comp sales to increase between 1% and 3%.

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Stocks on Wall Street trimmed losses but tech-heavy Nasdaq dropped to a new low in the year. Snap Inc plunged 43% after issuing a profit warning. New home sales plunged 16% after buyers walked away from record home prices.

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AutoZone said comparable same store sales rose 2.6% in the quarter and on top of 28.9% a year ago. The parts retailer repurchased $900 million of its share in the quarter.

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Abercrombie & Fitch gross margin declined 810 basis points on higher raw materials and freight costs and the apparel guided lower operating margins in the second quarter and for the full-year.

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European Indexes Drop After ECB Comments

May 24, 2022
Barry Adams
Indexes in Germany and France fell after the ECB President raised the need to lift rates in tackling 4-deccade inflation. The British pound fell against the euro after the UK private sector expanded at the slowest pace in fifteen months.

Futures of U.S. stocks extend losses a day after a comeback rally led by financial stocks. Tech stocks led the market decline today after Snap released revenues warning. Best Buy and Abercrombie & Fitch diverge after results.

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Zoom Video Communication quarterly revenues rose 12% but net income was cut in half. Revenues in the Americas rose 15% and enterprise revenues jumped 31% to represent 52% of total revenues.

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In a broad rally, popular indexes surged after JPMorgan said that the bank is likely to reach its key investment returns target earlier than expected. Banks soared 6%. Retailers were in focus ahead of another batch of earnings later in the week.

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European markets advanced after takeover and merger activities perked up. A private survey showed business confidence unexpectedly rose in Germany.



Asian markets were on the defensive after Beijing city imposed additional restrictions in 22 districts. Stocks in Japan gained after the Tokio Marine fiscal year net income more than doubled. Indexes in India were on the defensive.