Market Update
U.S. Stocks Advance, Smaller Q2 GDP Contraction
Barry Adams
25 Aug, 2022
New York City
Stocks on Wall Street opened higher and the GDP contraction in the second quarter was revised.
U.S. economic growth in the second quarter was revised to a smaller decline than initially estimated, according to a report released by the BEA on Thursday.
GDP contracted at 0.6% in the second quarter compared to the previous estimate of a decline of 0.9% released last month by the Bureau of Economic Analysis.
However, the smaller contraction data was also accompanied by higher inflation in the quarter. The price index for gross domestic purchase increased to 8.4% from the previous estimate of 8.2%.
In a separate report, jobless claims held nearly steady near multi-decade low.
Initial claims of jobless benefits were 243,000 for the week ended Aug 20, a decline of 2,000 from the previous, the Labor Department reported Thursday.
The S&P 500 index increased .06% to 4,165.63 and the Nasdaq Composite index added 0.9% to 12,532.07.
Futures of crude oil decreased 22 cents to $94.67 a barrel and natural gas decreased 9 cents to $9.24 a thermal unit.
The yield on 10-year Treasury notes held stable at 3.10% and 2-year notes were nearly unchanged at 3.38%.
Peloton Interactive plunged 20.2% to $10.76 after the fitness equipment maker reported a larger-than-expected quarterly loss and said business is likely to remain challenging in 2023.
Dollar General Corp was nearly unchanged at $247.09 after the deep discount retailer reported stronger quarterly results.
Revenues in the second quarter fiscal year 2022 ending in July increased 9.0% to $9.4 billion on a comparable same store sales rise of 4.6%.
Net income in the second quarter increased 6.4% to $678 million from $637 million a year ago. Diluted earnings per share rose to $2.98 from $2.69 a year ago.
Total merchandise inventories rose 25.1% to $6.9 billion compared to $5.3 billion as of July 30, 2021.
Abercrombie & Fitch declined 4.1% to $17.87 after the apparel retailer posted an unexpected quarterly loss.
The apparel retailer said second quarter revenues declined 7% to $805 million and gross margin rate declined 730 basis points to 57.9%, driven by higher product costs and commodity inflation partially offset by higher average unit retail at Abercrombie.
In the second quarter, the retailer swung to a loss of $14.7 million or 33 cents a diluted earnings per share from a profit of $110.5 million or $1.33 a share a year ago.
Abercrombie & Fitch lowered its net sales outlook to be down mid-single-digits from $3.7 billion in 2021 compared to previous outlook of flat to up 2%.
Victoria's Secret & Company increased 2.6% to $39.32 after the intimate apparel retailer said second quarter sales declined 5.7% to $1.5 billion from $1.61 billion a year ago.
Second quarter net income declined to $70 million or $0.83 a diluted share compared to $151 million or $1.71 a share a year ago.
Same store sales in the second quarter declined 7% compared to an increase of 16% in the quarter a year ago.
Nordstrom Second Quarter Sales Rise 12%, Plans to Cut Inventories and Costs
Scott Peters
24 Aug, 2022
New York City
Nordstrom, Inc plunged 18.7% to $18.86 after the retailer issued a cautious outlook.
Second quarter sales increased 12% to $4.1 billion from $3.7 billion a year ago.
Net income rose to $126 million or 77 cents from $89 million or 49 cents a share.
During the quarter, Nordstrom branded store net sales increased 14.7%, Nordstrom Rack increased 6.3% and digital sales increased 6.3% from a year ago.
Digital sales account 38% of total sales in the quarter.
The timing shift of the Anniversary Sale had a positive impact on Nordstrom store and Nordstrom Rack net sales of approximately 400 basis points.
"In the second quarter, men
Stocks, Bond Yields, Energy Prices Advance In U.S. and Europe
Barry Adams
24 Aug, 2022
New York City
U.S. and European stocks rebounded for the second day in a row and looked beyond the Fed's rhetoric, slowing worldwide economic activities and rising energy prices.
Crude oil and natural gas trading dominated the sentiment in stock markets as several regions around the world experienced record heat waves.
Futures of crude oil increased $1.59 to $95.34 a barrel and natural gas rose 5 cents to $9.23 a thermal unit.
Fed Steps Up Campaign, Yields Rise
The U.S. treasury bond yields rose for the third day in a row and traded above 3% on the expectations that the Fed officials will reiterate their commitment in lowering inflation
The four-decade high inflation is largely driven by the surge in demand driven by the central bank's excessive money printing in the last two years, the supply disruptions rooted in the China-lockdowns and the surge in energy prices after Russia's invasion of Ukraine.
The yield on 10-year Treasury notes edged up to 3.105% and two-year notes rose to 3.39%.
Cruise Line Operators Float Higher
Cruise lines were in favor and Carnival Corp gained 5.4%, Royal Caribbean advanced 7.7%, and Norwegian Cruise floated higher 8.4%.
Financial services providers and real estate companies also led the gainers.
Benchmark indexes opened lower but after thirty minutes of trading on Wall Street passed the flat-line on the sustained buying in energy stocks.
The indexes continued to advance despite the weakness in tech stocks but the rise in financials and REITs sustained the market advance.
The late morning rally in tech stocks faltered by the early afternoon but the rise in broader market helped the Nasdaq rebound in the final hour of the session.
The S&P 500 index increased 0.3% to 4,140.77 and the Nasdaq Composite index advanced 0.4% to 12,431.53.
Movers: Advance Auto Parts, Brinker International, Nordstrom, Petco
Advance Auto Parts Inc dropped 9.7% to $179.91 after the retailer said second quarter net sales increased 0.6% to $2.7 billion and comparable sales fell 0.6% from a year ago.
Net income declined to $144.4 million or $2.39 a share from $178.7 million or $2.76 a share a year ago.
The auto parts retailer said higher gasoline prices impacted negatively the demand in the quarter from its do-it-yourself customers.
Brinker International, Inc declined 4.9% to $28.82 after the restaurant chain operator said total revenues increased 12.9% to $1.02 billion but company sales declined 3.5% to $987 million.
Net income declined to $40 million or 90 cents from $75 million or $1.58 a share a year ago.
Farfetch Ltd soared 21.3% to $9.51 after the company agreed to acquire 47.5% stake in the online retailer YNAP from Switzerland based Richemont in exchange of 50 million of its shares.
Nordstrom, Inc plunged 19.9% to $18.56 after the retailer reported second quarter sales increased 12% to $4.1 billion from $3.7 billion a year ago.
Net income rose to $126 million or 77 cents from $89 million or 49 cents a share.
The retailer lowered its annual sales outlook to an increase between 5% and 7% compared to 6% and 8% rise in the previous estimate.
Petco Health and Wellness Company declined 8.8% to $14.34 after the retailer reported weaker-than-expected quarterly results and lowered its full-year outlook.
Europe Look Beyond Energy and Economic Worries
Benchmark indexes in Europe closed higher and investors reacted to local economic and corporate news.
Traders also looked ahead to comments from the U.S. Fed Chair Jerome Powell on Friday and anticipated hawkish tone in cooling inflation.
Moreover, the U.S. Fed officials stepped up inflation rhetoric ahead of Powell's comments.
Federal Reserve Bank of Minneapolis President Neel Kashkari said Tuesday that the inflation is much more entrenched and at a higher level in the economy and the central been needs to be more aggressive in bringing it under control.
In the region's news, Iceland lifted its lending rate again, Poland's jobless rate was steady in July and consumer confidence in the euro zone rebounded slightly.
Iceland's central bank lifted its key lending rate for the fourth time this year.
The 7-day term deposit rate by 75 basis points to 5.5%, the level last seen in May 2017.
Poland's jobless rate in July was stable at 4.9%, the nation's statistical office reported Tuesday.
Consumer confidence in the euro zone recovered to -24.9 in August from the record low of 27.0 in July, according to the flash estimate released by the European Commission on Tuesday.
The DAX index increased 0.2% to 13,220.06, the CAC-40 index rose 0.4% to 6,386.76, and the FTSE 100 index fell 0.2% to 7,471.51.
Resource stocks closed lower despite the rise in energy prices in the region.
Brent crude oil traded above $100 a barrel mark and natural gas futures for October delivery rose 8.2% to 295.85 euros per megawatt hour.
Rising real estate industry woes in China knocked down Antofagasta, Glencore and ArcelorMittal between 1% and 2%.
CTS Eventim AG rose 2.5% to 55.50 euros after the event ticketing and live event management company reported revenues surged in the first-half and the second quarter revenues surpassed the previous high in 2019.
Revenues jumped to 734.4 million euros in the first-half 2022 compared to 65.3 million euros a year ago and higher than 696.6 million euros in the first-half of 2019
Revenue in the second quarter increased to 595.1 million euros from 45.7 million euros a year ago and 413.9 million in the comparable quarter in 2019.
Lookers PLC surged 11.2% to 83.40 pence after the auto dealer reported first-half sales increased to 2.23 billion pounds from 2.15 billion pounds a year ago.
New vehicle sales in the period declined 5.6% to 970 million pounds and used vehicle sales rose 16.7% to 1.2 billion pounds.
"Trading during July and August has been in line with expectations. Margins remain at H1 levels and the Group continues to maintain a strong order book for the remainder of 2022," guided the company in the trading update.
Skanska AB declined 0.7% to 160.65 after the Swedish engineering company signed a contract with the U.K. National Highway to upgrade a 6.6 km road of the A46 Newark Bypass in the Midlands.
European Markets Look Beyond Energy and Economic Worries
Bridgette Randall
24 Aug, 2022
Frankfurt
Benchmark indexes in Europe closed higher and investors reacted to local economic and corporate news.
Traders also looked ahead to comments from the U.S. Fed Chair Jerome Powell on Friday and anticipated hawkish tone in cooling inflation.
Moreover, the U.S. Fed officials stepped up inflation rhetoric ahead of Powell's comments.
Federal Reserve Bank of Minneapolis President Neel Kashkari said Tuesday that the inflation is much more entrenched and at a higher level in the economy and the central been needs to be more aggressive in bringing it under control.
In the region's news, Iceland lifted its lending rate again, Poland's jobless rate was steady in July and consumer confidence in the euro zone rebounded slightly.
Iceland's central bank lifted its key lending rate for the fourth time this year.
The 7-day term deposit rate by 75 basis points to 5.5%, the level last seen in May 2017.
Poland's jobless rate in July was stable at 4.9%, the nation's statistical office reported Tuesday.
Consumer confidence in the euro zone recovered to -24.9 in August from the record low of 27.0 in July, according to the flash estimate released by the European Commission on Tuesday.
The DAX index increased 0.2% to 13,220.06, the CAC-40 index rose 0.4% to 6,386.76, and the FTSE 100 index fell 0.2% to 7,471.51.
Resource stocks closed lower despite the rise in energy prices in the region.
Brent crude oil traded above $100 a barrel mark and natural gas futures for October delivery rose 8.2% to 295.85 euros per megawatt hour.
Rising real estate industry woes in China knocked down Antofagasta, Glencore and ArcelorMittal between 1% and 2%.
CTS Eventim AG rose 2.5% to 55.50 euros after the event ticketing and live event management company reported revenues surged in the first-half and the second quarter revenues surpassed the previous high in 2019.
Revenues jumped to 734.4 million euros in the first-half 2022 compared to 65.3 million euros a year ago and higher than 696.6 million euros in the first-half of 2019
Revenue in the second quarter increased to 595.1 million euros from 45.7 million euros a year ago and 413.9 million in the comparable quarter in 2019.
Lookers PLC surged 11.2% to 83.40 pence after the auto dealer reported first-half sales increased to 2.23 billion pounds from 2.15 billion pounds a year ago.
New vehicle sales in the period declined 5.6% to 970 million pounds and used vehicle sales rose 16.7% to 1.2 billion pounds.
"Trading during July and August has been in line with expectations. Margins remain at H1 levels and the Group continues to maintain a strong order book for the remainder of 2022," guided the company in the trading update.
Skanska AB declined 0.7% to 160.65 after the Swedish engineering company signed a contract with the U.K. National Highway to upgrade a 6.6 km road of the A46 Newark Bypass in the Midlands.
Chili's Parent Brinker International Fiscal Q4 Net Drops 47%
Scott Peters
24 Aug, 2022
New York City
Brinker International, Inc declined 4.0% to $29.12 after the restaurant chain operator struggled with rising food and labor costs and struggled to build sales momentum.
Total revenues in the fourth quarter ending in June increased 12.9% to $1.02 billion but company sales declined 3.5% to $987 million.
Net income in the fiscal fourth quarter 2022 declined to $40 million or 90 cents from $75 million or $1.58 a share a year ago.
Restaurant operating margin, as a percentage of company sales, in the fourth quarter declined to 10.3% from 16.9% a year ago.
Comparable restaurant sales growth across the company declined to 3.1% from 12.3% a year ago.
Same restaurant sales at Chili's fell to 0.3% from 8.6% a year ago and at Maggiano's declined to 30.1% from 53% a year ago.
Weekly sales at Chili's and Maggiano's are running ahead of the pre-pandemic levels in 2020.
The restaurant chain operator guided fiscal 2023 sales in the range between $3.9 billion and $4.0 billion and diluted earnings per share excluding specific items in the range between $2.45 and $2.85.
Advance Auto Parts Net Income Falls 19%, Trims Sales Growth Outlook
Scott Peters
24 Aug, 2022
New York City
Advance Auto Parts Inc dropped 10.8% to $177.57 after the retailer said second quarter net sales increased 0.6% to $2.7 billion and comparable sales fell 0.6% from a year ago.
Net income declined to $144.4 million or $2.39 a share from $178.7 million or $2.76 a share a year ago.
The auto parts retailer said higher gasoline prices negatively impacted the demand in the quarter from its do-it-yourself customers.
Net cash provided by operating activities was $308.5 million compared to $776.2 million in the same period of the prior year.
The decrease was primarily driven by lower net income and working capital.
Free cash flow through the second quarter of 2022 was $97.3 million compared to $646.6 million a year ago.
During the second quarter, the company repurchased one million shares of its common stock at an aggregate cost of $200 million, or an average price of $199.02 a share and about $1.1 billion were still remaining in its share repurchase program.
On August 16, 2022 the company declared a regular cash dividend of $1.50 per share to be paid on September 30, 2022 to all common stockholders of record as of September 16, 2022.
The auto parts retailer tightened its annual sales outlook for 2022.
The revised outlook forecasts sales in the range of $11 billion to $11.2 billion compared to previous range of $11.2 billion to $11.5 billion.
Comparable sales forecast was lowered from the increase between 1.0% and 3.0% to the new range between flat and a decline of 1%.
Toll Brothers Net Signed Contract Value Plunged 44%
Scott Peters
24 Aug, 2022
New York City
Toll Brothers Inc increased 2.6% to $46.89 and the luxury home builder lowered its guidance for the year citing supply chain problems and labor shortages.
Fiscal third quarter 2022 revenues rose 1% to $2.3 billion and the delivered homes declined 7% to 2,414.
The company missed its own estimate of delivering 2,750 homes in the fiscal third quarter.
However, gross margin increased to 26.0% in the second quarter from 22.7% a year ago.
Net signed contract value plunged 44% to $1.7 billion in the third quarter and contracted homes dropped 60% to 1,266.
Net income in the quarter increased to $273.5 million or $2.35 a diluted share compared to $234.9 million or $1.87 a diluted share.
The home builder lowered its annual homes delivered outlook to between 10,000 and 10,300 from the previous estimated range between 11,000 and 11,500 units.
However, the luxury home builder raised its outlook for the average home price to $920,000 from the previous estimated range between $895,000 and $915,000.
Backlog home value increased 19% t0 $11.2 billion at third quarter and homes in backlog were up 1% to 10,725 from a year ago.
In the quarter, The company repurchased approximately 2.0 million shares of its common stock during the quarter at an average price of $44.93 a share for $91.6 million.
Movers: Advance Auto Parts, Brinker Intl, Farfetch, Nordstrom, Petco, Peloton, Toll Brothers
Barry Adams
24 Aug, 2022
New York City
Stocks on Wall Street inched higher as retail companies report weaker results and investors await comments from the Fed Chair on Friday.
Crude oil and natural gas trading dominated the sentiment in stock market as several regions around the world experience record heat waves.
The S&P 500 index increased 0.5% to 4,150.72 and the Nasdaq Composite index advanced 0.9% to 12,486.90.
Futures of crude oil increased $1.06 to $94.80 a barrel and natural gas rose 5 cents to $9.41 a thermal unit.
The yield on 10-year Treasury notes edged up to 3.095% and two-year notes rose to 3.358%.
Advance Auto Parts Inc dropped 10.8% to $177.57 after the retailer said second quarter net sales increased 0.6% to $2.7 billion and comparable sales fell 0.6% from a year ago.
Net income declined to $144.4 million or $2.39 a share from $178.7 million or $2.76 a share a year ago.
The auto parts retailer said higher gasoline prices negatively impacted the demand in the quarter from its do-it-yourself customers.
Bed Bath & Beyond Inc jumped 14.2% to $10.01 after the retailer is said to have secured new financing and improve its liquidity.
The news was first reported by The Wall Street Journal.
Brinker International, Inc declined 4.0% to $29.12 after the restaurant chain operator said total revenues increased 12.9% to $1.02 billion but company sales declined 3.5% to $987 million.
Net income declined to $40 million or 90 cents from $75 million or $1.58 a share a year ago.
Farfetch Ltd soared 25.8% to $9.86 after the company agreed to acquire 47.5% stake in the online retailer YNAP from Switzerland based Richemont in exchange of 50 million of its shares.
Nordstrom, Inc plunged 18.7% to $18.86 after the retailer reported second quarter sales increased 12% to $4.1 billion from $3.7 billion a year ago.
Net income rose to $126 million or 77 cents from $89 million or 49 cents a share.
The retailer lowered its annual sales outlook to an increase between 5% and 7% compared to 6% and 8% rise in the previous estimate.
Petco Health and Wellness Company declined 6.2% to $14.77 after the retailer reported weaker-than-expected quarterly results and lowered its full-year outlook.
Peloton Interactive Inc soared 20.5% to $13.44 after the fitness equipment retailer struck a deal with Amazon.com to sell some of its equipment accessories.
Toll Brothers Inc increased 2.6% to $46.89 and the luxury home builder lowered its guidance for the year citing supply chain problems and labor shortages.
Fiscal third quarter 2022 rose 1% to $2.3 billion and the delivered homes declined 7% to 2,414.
The company missed its own estimate of delivering 2,750 homes in the third quarter.
Net income in the quarter increased to $273.5 million or $2.35 a diluted share compared to $234.9 million or $1.87 a diluted share.
The home builder lowered its annual homes delivered outlook to between 10,000 and 10,300 from the previous estimated range between 11,000 and 11,500 units.
However, the luxury home builder raised its outlook for the average home price to $920,000 from the previous estimated range between $895,000 and $915,000.
Stocks Snap 3-day Losing Streak
Barry Adams
24 Aug, 2022
New York City
Stocks on Wall Street inched higher as retail companies report weaker results and investors await comments from the Fed Chair on Friday.
Crude oil and natural gas trading dominated the sentiment in stock market as several regions around the world experience record heat waves.
The S&P 500 index increased 0.5% to 4,150.72 and the Nasdaq Composite index advanced 0.9% to 12,486.90.
Futures of crude oil increased $1.06 to $94.80 a barrel and natural gas rose 5 cents to $9.41 a thermal unit.
Treasury yields rose for the third day in a row and traded above 3% on the expectations that the Fed officials will reiterate their commitment in lowering inflation
The four-decade high inflation is largely driven by the surge in demand driven by the central bank's excessive money printing in the last two years, the supply disruptions rooted in the China lockdowns and the surge in energy prices after Russia's invasion of Ukraine.
The yield on 10-year Treasury notes edged up to 3.095% and two-year notes rose to 3.358%.
Advance Auto Parts Inc dropped 10.8% to $177.57 after the retailer said second quarter net sales increased 0.6% to $2.7 billion and comparable sales fell 0.6% from a year ago.
Net income declined to $144.4 million or $2.39 a share from $178.7 million or $2.76 a share a year ago.
The auto parts retailer said higher gasoline prices impacted negatively the demand in the quarter from its do-it-yourself customers.
Brinker International, Inc declined 4.0% to $29.12 after the restaurant chain operator said total revenues increased 12.9% to $1.02 billion but company sales declined 3.5% to $987 million.
Net income declined to $40 million or 90 cents from $75 million or $1.58 a share a year ago.
Farfetch Ltd soared 25.8% to $9.86 after the company agreed to acquire 47.5% stake in the online retailer YNAP from Switzerland based Richemont in exchange of 50 million of its shares.
Nordstrom, Inc plunged 18.7% to $18.86 after the retailer reported second quarter sales increased 12% to $4.1 billion from $3.7 billion a year ago.
Net income rose to $126 million or 77 cents from $89 million or 49 cents a share.
The retailer lowered its annual sales outlook to an increase between 5% and 7% compared to 6% and 8% rise in the previous estimate.
Petco Health and Wellness Company declined 6.2% to $14.77 after the retailer reported weaker-than-expected quarterly results and lowered its full-year outlook.
U.S. and Global Markets Decline as Worldwide Slump Deepens
Barry Adams
23 Aug, 2022
New York City
Stocks on Wall Street extended losses for the third day as bond yields rose and energy prices advanced and private sector activities fell sharply in Europe and Japan.
Global economies are slowing down as private sector battles supply disruptions and rising input costs, consumers are struggling with sky-high inflation and record higher energy and food prices and government finances are stretched.
In addition China, the second largest economy in the world, is facing heat waves for three months in a row in the southern region on top of lockdown conditions in the central and northern regions.
Crude oil prices surged more than 3% and natural gas prices hovered near $10 level as divisions between Russia and the European Union deepened.
The U.S. Treasury yields also rose and traded near the 3.0% mark for 10-year notes after new home sales plunged 12.6% in July.
Investors are awaiting hawkish comments from the Fed Chairman Jerome Powell on Friday as central bankers gather for three days at an annual economic symposium in Jackson Hole, Wyoming.
The Economic Policy Symposium is scheduled to commence on August 25 and convened by the Federal Reserve Bank of Kansas City.
At the last year's gathering, Fed Chair Powell labeled the latest bout of inflation as "temporary" and "transitory" and highlighted the slack in labor markets.
The wildly wrong assessment of the inflation has forced the Fed to play catch up as inflation surges to a four-decade high driven by soaring energy and food prices and persistent supply chain disruptions.
New Home Sales Plunge
New home sales declined to an annual rate of 511,000 in July from the revised 585,000 sales in June, the Census Bureau reported on Tuesday.
From a year ago, new home sales plunged 29.6% after home prices continue to advance.
The median price for a newly-built home increased to $439,400, up from $402,400 in the prior month.
Investors are awaiting hawkish comments from the Fed Chairman Jerome Powell on Friday as central bankers gather for three days at an annual economic symposium in Jackson Hole, Wyoming.
The Economic Policy Symposium is scheduled to commence on August 25 and convened by the Federal Reserve Bank of Kansas City.
At the last year's gathering, Fed Chair Powell labeled the current bout of inflation as "temporary" and "transitory" and highlighted the slack in labor markets.
The wildly wrong assessment of the inflation has forced the Fed to play catch up as inflation surges to a four-decade high driven by soaring energy and food prices and persistent supply chain disruptions.
Indexes Commodities, Yields
The S&P 500 index fell 0.2% to 4,124.97 and the Nasdaq Composite index dropped a fraction to 12,376.02.
Futures of crude oil prices rose $3.31 to $93.64 a barrel and natural gas decreased 39 cents to $9.28 a thermal unit.
The yield on 10-year Treasury notes reversed the earlier decline to rise to 3.04% and on two-year notes rose to 3.29%.
In trading, stocks attempted a rebound in the morning but lacked enthusiasm ahead of the Fed comments.
Movers: Dick's Sporting, Macy's, Medtronic, Palo Alto Networks, Zoom Video, Twitter
Dick's Sporting Goods Inc increased 1.3% to $112.81 after the sporting goods retailer said comparable store sales declined less than anticipated 5.1%, after rising 20.2% in the quarter a year ago.
The retailer sales in the quarter fell 5% to $3.1 billion and net income plunged 35.7% to $318.5 million.
Dick's Sporting Goods lifted its comparable sales range for the full-year to a decline between 2% and 6% from the previous estimate of a fall between 2% and 8%.
Macy's Inc increased 3.5% to $19.30 after the retailer reported better-than-anticipated quarterly results but offered a cautious outlook for the year.
Comparable sales at the company owned stores declined 1.5% and diluted earnings per share fell to 99 cents from $1.09 a year ago.
Comparable sales rose 4.3% on a two-year basis or compared to the second quarter in 2019.
Net sales were flat at $5.6 billion but earnings declined to $275 million compared to $345 million a year ago.
Macy's tightened annual sales outlook to range between $24.34 billion and $24.58 billion compared to the previous estimate between $24.46 billion and $24.70 billion.
Medtronic PLC declined 2.9% to $90.34 after the medical products maker said revenues in the fiscal year 2023 first quarter ending on July 29 declined 8% to $7.4 billion.
Revenues were impacted by persistent supply chain disruptions.
Net income in the quarter increased to $929 million or 70 cents a share from $763 million or 57 cents a share a year ago.
Palo Alto Networks soared 11.9% to $569.09 after the cyber security company reported better-than-expected quarterly results.
The company also announced that the board has approved a 3-for-1 stock split.
Zoom Video Communications plunged 16% to $81.88 after the company reported stronger-than-expected quarterly earnings but lowered its annual revenues estimate.
Twitter Inc declined 6.5% to $40.22 after a whistleblower filed a complaint with the Department of Justice, Federal Trade Commission, and Securities and Exchange Commission.
Peiter Mudge Zatko, the former securities head of Twitter, alleged that the social media operator is suffering from
July Home Sales Fall 13%
Brian Turner
23 Aug, 2022
New York City
New home sales continued to fall in July as mortgage rates rise and buyers struggle with higher prices.
New home sales declined 12.6% to an annual rate of 511,000 in July from the revised 585,000 sales in June, the Census Bureau reported on Tuesday.
From a year ago, new home sales plunged 29.6% after home prices continue to advance.
The median price for a newly-built home increased to $439,400, up from $402,400 in the prior month.
After the release of the housing data, bond yields rose and home builders edged slightly lower.
The U.S. Treasury yields also rose and traded near 3.0% mark for 10-year notes.
European Markets Extend 3-day Losses On Recession and Higher Rate Fears
Bridgette Randall
23 Aug, 2022
Frankfurt
Stocks across the euro area closed down amid rising tensions with Russia and soaring natural gas prices and slowing economic activities.
Private sector in the euro zone contracted for the second month in a row in August after the manufacturing sector faced headwinds.
The preliminary or flash estimate of the composite output index declined to 49.2 from 49.9 in July, S&P Global reported today.
The index below 50 indicates contraction and above shows growth. The index declined for the second month in a row after rising for 16 months as activities expanded in the currency zone.
Manufacturing activities declined for the third month in a row and service sector growth came to a standstill after rising cost of living sapped demand.
The composite output index for Germany dropped to 47.6 in August, down from 48.1 in July, after the index fell deeper into the contraction zone.
For France, the preliminary reading on the composite output index declined to 49.8 from 51.7 in July.
The output indexes in the rest of the countries in the region continued to expand marginally.
The DAX index declined 0.3% to 13,194.23, the CAC-40 index dropped 0.3% to 6,362.02, and the FTSE 100 index decreased 0.6% to 7,488.11.
The euro traded down and fetched 0.997 U.S. dollars and the sentiment in the foreign exchange market remained negative.
John Wood Group Plc fell 2.4% to 146.35 pence after the engineering services company reported weaker-than-anticipated half-year results.
Revenues in the first-half 2022 declined 0.4% to $2.56 billion and order book at the end of the quarter rose 4.7% to $6.4 billion.
Net income in the period swung to a profit of $89 million from a loss of $11 million a year ago.
The company guided results are expected to improve in the second-half 2022 and said revenues are expected to rise at least 9% from a year ago to $2.5 billion and full-year 2022 revenues to fall between $5.2 billion and $5.5 billion.
The Swiss benchmark SMI index fell 152.78 points or 1.4% to 10,933.06 and the index struggled to rise above the flat-line for most of the session.
Roche Holding AG declined 2.2% to 316 Swiss francs and the company released a digital PCR testing system that helps clinics better understand the nature of a patient
Movers: Dick's Sporting Goods, Medtronic, Palo Alto Networks, Zoom Video
Barry Adams
23 Aug, 2022
New York City
Stocks traded volatile and energy prices rose for the second day in a row and after falling the most on Monday since June.
Crude oil prices surged more than 3% and natural gas prices hovered near $10 level as divisions between Russia and European Union deepened.
The U.S. Treasury yields also rose and traded near 3.0% mark for 10-year notes after new home sales plunged 12.6% in July.
The S&P 500 index fell 0.2% to 4,124.97 and the Nasdaq Composite index dropped a fraction to 12,376.02.
Futures of crude oil prices rose $3.56 to $93.94 a barrel and natural gas increased 25 cents to $9.94 a thermal unit.
The yield on 10-year Treasury notes declined to 2.998% and two-year notes fell to 3.25%.
In trading, stocks attempted a rebound in the morning but lacked enthusiasm ahead of the Fed comments.
Dick's Sporting Goods Inc increased 1.9% to $112.51 after the sporting goods retailer said comparable store sales declined less than anticipated 5.1%, after rising 20.2% in the quarter a year ago.
The retailer sales in the quarter fell 5% to $3.1 billion and net income plunged 35.7% to $318.5 million.
Net income in the quarter declined 32.5% to $579.1 million from $857.3 million a year ago.
Inventories at the end of the quarter rose 49% to $2.99 billion from $2.0 billion a year ago.
Dick's Sporting Goods lifted its comparable sales range for the full-year to a decline between 2% and 6% from the previous estimate of a fall between 2% and 8%.
The company lifted full-year 2022 diluted earnings per share guidance to $8.85 to 10.55 from the previous estimate between $7.95 and 10.15.
The retailer also revised higher full-year 2022 non-GAAP diluted earnings per share guidance to $10.00 to 12.00 from the previous estimate in the range of $9.15 and 11.70.
Medtronic PLC declined 3.5% to $89.77 after the medical products maker said revenues in the fiscal year 2023 first quarter ending on July 29 declined 8% to $7.4 billion.
Revenues were impacted by persistent supply chain disruptions.
Net income in the quarter increased to $929 million or 70 cents a share from $763 million or 57 cents a share a year ago.
Palo Alto Networks soared 10.9% to $563.90 after the cyber security company reported better-than-expected quarterly results.
The company also announced that the board has approved a 3-for-1 stock split.
Zoom Video Communications plunged 14.4% to $83.38 after the company reported stronger-than-expected quarterly earnings but lowered its annual revenues estimate.
Zoom said fiscal second quarter 2023 revenues increased 8% to $1.099 billion and enterprise sales rose 27% to $599 million.
Net income in the second quarter was $45.7 million or $0.15 a share, compared to $316.9 million or $1.04 a share a year ago.
The number of customers contributing to at least $100,000 revenues increased 37% to 3,116 from 2,278.
The video communication company guided fiscal third quarter 2023 revenues to fall between $1.095 billion and $1.11 billion and for the full-year in the range of $4.385 billion and $4.395 billion.
The company had earlier guided fiscal full-year 2023 revenues to fall between $4.53 billion and $4.55 billion.
Zoom Lowers Annual Outlook, Revenue Growth Slows to 8%
Scott Peters
23 Aug, 2022
New York City
Zoom Video Communications plunged 14.4% to $83.38 after the company reported stronger-than-expected quarterly earnings but lowered its annual revenues estimate.
Zoom said fiscal second quarter 2023 revenues increased 8% to $1.099 billion and enterprise sales rose 27% to $599 million.
Revenue growth slowed to 8% from 12% in the previous quarter and plunged from 54% a year ago.
Net income in the second quarter was $45.7 million or $0.15 a share, compared to $316.9 million or $1.04 a share a year ago.
The number of customers contributing to at least $100,000 revenues increased 37% to 3,116 from 2,278.
The video communication company guided fiscal third quarter 2023 revenues to fall between $1.095 billion and $1.11 billion and for the full-year in the range of $4.385 billion and $4.395 billion.
The company had earlier guided full-year revenues between $4.53 billion and $4.55 billion.
Dick's Sporting Goods Comparable Sales Drop 5%
Scott Peters
23 Aug, 2022
New York City
Dick's Sporting Goods Inc increased 1.9% to $112.51 after the sporting goods retailer reported better-than-expected quarterly results and lifted full-year estimates.
Comparable store sales declined 5.1% after rising 20.2% in the quarter a year ago.
The retailer said sales in the quarter fell 5% to $3.1 billion and net income plunged 35.7% to $318.5 million.
Net income in the quarter declined 32.5% to $579.1 million from $857.3 million a year ago.
Inventories at the end of the quarter rose 49% to $2.99 billion from $2.0 billion a year ago as the company ordered more goods ahead of time to navigate challenging supply chain issues.
Dick's Sporting Goods lifted its comparable sales range for the full-year to a decline between 2% and 6% from the previous estimate of a fall between 2% and 8%.
The company lifted full-year 2022 diluted earnings per share guidance to $8.85 to 10.55 from the previous estimate between $7.95 and 10.15.
The retailer also revised higher full-year 2022 non-GAAP diluted earnings per share guidance to $10.00 to 12.00 from the previous estimate in the range of $9.15 and 11.70.