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.