Movers: Canoo, GAP, PepsiCo, Peloton, PriceSmart, Twitter

Barry Adams
12 Jul, 2022
New York City

U.S. stocks headed lower ahead of inflation reports and bank earnings later in the week.  

The surging dollar added to a list of worries as the euro traded at parity with the U.S. currency and the Japanese yen and the British pound traded near two-decade lows. 

Emerging market currencies also sank near record lows with surging inflation and rising fuel and food prices. 

Investors have been dialing down the expectations of earnings growth on the rising interest rates, surging fuel prices and rising wage costs. 

The S&P 500 decreased 0.5% to 3,839.57 and the Nasdaq Composite index rose 4.50 to 11,888.30. 

Futures of crude oil dropped $4.58 to $99.51 a barrel and natural gas advanced 58 cents to $6.51 a unit. 

The yield on 10-year Treasury notes declined to 2.94% and stayed below the 3.03% yield for 2-year Treasury notes. 

PepsiCo gained a fraction to $171.45 after the beverages and food products maker reported better than expected revenues and earnings. 

Revenues in the quarter ending on June 11 rose 5.2% to $22.5 billion and net income declined to $1.4 billion from $2.4 billion a year ago. 

Diluted earnings per share declined to $1.03 from $1.73 a year ago. 

Foreign currency translation impacted revenues negatively 3% and earnings per share 2%.  

The company guided full-year organic revenue to increase 10% from the previous estimate of 8% increase and estimated core constant currency earnings per share to increase 8%.

Peloton Interactive gained 4.2% to $9.41 after the high-end bicycle maker said it plans to end all its manufacturing activities and outsource its production. 

Canoo Inc soared 75% to $4.51 after Walmart agreed to buy 4,500 electric battery operated vans from the company with an option to purchase additional 5,500 vehicles. 

PriceSmart declined 12% to $64.05 after the wholesale club chain's quarterly earnings were affected by supply chain disruptions despite rising sales. 

Sales in the quarter ending in May increased 15% to $1.03 billion and net income declined to $19.3 million from $22.6 million a year ago. 

Diluted earnings per share fell to 62 cents from 73 cents a year ago. 

The earnings were affected by larger than normal markdowns after the retailer ordered more inventories and customers avoided discretionary items and focused on essential goods. 

Gap Inc declined 5.1% to $8.30 and the company said Sonia Syngal has resigned from the chief executive post and company board following a brief transition. 

Executive chairman Bob Martin will temporary assume the CEO position till the company finds a replacement. 

The company also appointed Horacio Barbeito as the new chief executive and president of Old Navy. 

Twitter Inc gained 2.6% to $33.48 and the company said in a letter sent to Elon Musk that the merger termination is "invalid and wrongful" and demanded to complete the merger as agreed in the agreement.