Movers: Alibaba, Ceridian, Restaurant Brands, Shake Shack

Barry Adams
04 Aug, 2022
New York City

Stocks rested on Wall Street after rallying for two days in a row and investors noted the rising bearishness in the energy markets. 

The S&P 500 index was nearly unchanged at 4,155.07 and the Nasdaq Composite index increased 0.3% to 12,708.50. 

Futures of crude oil declined $2.60 to $88.07 a barrel and natural gas fell 14 cents to $8.14 a thermal unit. 

Crude oil futures extended losses this week to 10% and fell to the lows last seen February 3. 

On a weekly basis, West Texas Intermediate crude oil and Brent crude in London are down the most since April on the global recession worries and falling demand from China and rising inventories in the U.S.   

Exxon Mobil Corp declined 2.5%, Chevron Corp fell 1.4%, Marathon Petroleum decreased 1.3%, and Schlumberger NV dropped 2.5%. 

Earnings season continued and investors are awaiting another batch of earnings after the market closes.  

Internet retailers were in focus after the South America focused Mercado Libre posted results exceeding investors expectations. 

Alibaba Group said fiscal first quarter revenues increased to 205.6 billion renminbi and net income plunged 50% to 22.73 billion renminbi or 8.51 per American Depositary Share. 

Domestic China commerce business in the quarter declined in mid-single-digit from a year ago on the resurgent coronavirus and widespread lockdowns. 

However, the China commerce business began to improve in late May and June. 

China-focused retailers JD.com and Pinduoduo gained 4% after the release of Alibaba.com quarterly results. 

Ceridian HCM Holding Inc soared 9.8% to $64.89 after the payroll processing company posted second quarter earnings ahead of investor's expectations and issued a third quarter outlook ahead of expectations.   

Revenues increased 20.3% to $301.2 million and net loss shrank to $19.8 million from $25.8 million a year ago. 

The company guided third quarter total revenue between $304 million and $307 million, an increase of 18% to 19% on a GAAP basis and 20% to 21% on a constant currency basis. 

Restaurant Brands International 7.2% to $58.93 after the parent of Burger King, Tim Hortons and Popeyes said global same-store sales rose 9% driven by the strength in Burger King and Tim Hortons. 

Second quarter revenues rose 14.2% to $1.6 billion and net income fell to $346 million from $391 million a year ago. 

Diluted earnings per share declined to 76 cents from 84 cents a year ago. 

Burger King's system-wide sales rose 14.6% and at Tim Hortons' gained 16.3% from a year ago.    

Shake Shack Inc plunged 7.5% to $50.42 after the fast food chain operator reported weaker-than-anticipated quarterly earnings. 

Shake Shack said second quarter revenues increased 23.1% to $230.8 million and same store sales rose 10.1% from a year ago. 

The fast food chain operator swung to a quarterly loss of $1.2 million from $1.9 million a year ago.