- Barry Adams
- 26 Aug, 2022
- New York City
Stocks on Wall Street traded lower after Fed Chairman Powell reiterated the central bank's commitment in bringing down inflation sooner than later.
In an eight minute short speech, Chairman Powell delivered a forceful reminder of the need to fight inflation now despite the pain it is likely to inflict on the economy.
Chairman Powell forcefully reiterated the central bank's commitment in aggressively fighting the four-decade high inflation before it entrenched and spread to a wider economy.
Powell delivered his comments at the Jackson Hole Economic Symposium, a gathering of central bankers, and said that reducing inflation will take time and will soften the labor market.
The comments were widely viewed and anticipated but the forceful reiteration only highlighted the long road ahead for the policy makers and the near-term pain for households and businesses.
"While higher interest rates, slower growth, and softer labor market conditions will bring down inflation, they will also bring some pain to households and businesses.
These are the unfortunate costs of reducing inflation. But a failure to restore price stability would mean far greater pain," Powell added in his prepared remarks.
Stock markets turned sharply lower after Powell's comments and bond yields jumped above 3%.
The S&P 500 index declined 1.5% to 4,137.15 and the Nasdaq Composite fell 1.7% to 12,414.95.
Futures of crude oil decreased 12 cents to $92.40 a barrel but natural gas rose 12 cents to $9.46 a thermal unit.
The yield on 10-year U.S. Treasury notes rose to 3.056% and on 2-year notes gained to 3.415%.
Electronic Arts Inc jumped 6.1% to $135.11 after a report in Swedish media suggested that Amazon.com is likely to make an offer to acquire the game publisher as early as today.
Farfetch Ltd soared 25.1% to $11.94 after the online luxury fashion retailer reported stronger-than-anticipated quarterly results and smaller loss.
Ulta Beauty Salon edged up a fraction to $419.08 after the company's latest quarterly results exceeded expectations and also issued a positive outlook for the year.
Gap Inc, after rising as much as 6%, declined 1.20% to 9.84 after the apparel retailer reported an unexpected quarterly profit on the sales strength at its Banana Republic chain.
European markets traded sideways but accelerated the decline after the comments from Fed Chairman Powell.
Moreover, weakening in consumer confidence in the euro zone's largest economy also unnerved the market.
Germany's forward looking consumer confidence index declined further in September to -36.5 from -30.9 in August, according to the survey released by the market research group Gfk on Friday.
Micro Focus International soared 93% to 519.0 pence in London trading after the Canada-based OpenText agreed to acquire the enterprise software maker for $6 billion including debt.
OpenText declined 12.7% to $32.73.
- Barry Adams
- 25 Aug, 2022
- New York City
Stocks extended gains for the second day in a row but the popular indexes are set to decline for the week.
Investors are keenly awaiting Fed Chairman comments on Friday hoping to find more clues on the future interest rate path.
The latest batch of earnings posted a weakening and diverging consumer demand after Dollar Tree and Abercrombie & Fitch lowered annual outlook but Autodesk and Dollar General provided positive updates.
The diverging customer behaviors were in sharp contrast after Nordstrom reported its high-end customers are looking for more upscale goods but the retailer it is struggling to attract customers at its discount chain Nordstrom Rack.
Moreover, Toll Brothers sold homes at the highest average price of $920,000 in its latest quarter.
In addition, Advance Auto Parts said the do-it-yourself business is struggling but its enterprise business is steady.
Brinker's International, the parent of Chili's and Maggiano's, offered another confirmation to the diverging consumption trends.
Same store sales are struggling at its lower priced Chili's chain but sales are still rising above 30% for its higher priced chain Maggiano's,
On the economic front, the government offered a mixed picture on the broader economy and labor market.
U.S. GDP growth in the second quarter was revised to a smaller decline than initially estimated, according to a report released by the BEA on Thursday.
Second quarter GDP contraction was revised to a slower 0.6% from the previous estimate 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.
U.S. labor market may have been stronger than previously estimated, the Department of Labor's statistics agency said today.
The U.S. economy added 462,000 more jobs in the 12 months to March than previously estimated, according to the preliminary data released by the Bureau of Labor Statistics Wednesday.
The bureau conducts a periodic review of monthly payroll data with the broader set of data provided by the unemployment insurance tax records.
The government agency will offer its final assessment of the labor market in February when it releases its employment situation report for January.
The S&P 500 index increased 1,4% to 4,199.12 and the Nasdaq Composite index added 1.7% to 12,639.27.
Futures of crude oil decreased $1.92 to $92.97 a barrel and natural gas increased 4 cents to $9.37 a thermal unit.
The yield on 10-year Treasury notes held stable at 3.02% and 2-year notes were nearly unchanged at 3.32%.
Peloton Interactive plunged 18.3% to $11.01 after the fitness equipment maker reported a larger-than-expected quarterly loss and said business is likely to remain challenging in 2023.
The newly appointed CEO Barry McCarthy is fighting on several fronts including cash outflow stemming, repositioning the company as a fitness service provider and expanding the user base through its digital app.
Dollar General Corp fell 0.5% to $246.08 after the deep discount retailer reported stronger quarterly results and said it will continue expanding its store count and reach more inflation-challenged customers in more locations.
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 6.3% to $17.44 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 1.9% to $37.62 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.
- Bridgette Randall
- 25 Aug, 2022
- Frankfurt
Stock markets in Europe closed higher after Germany reported better-than-expected economic growth.
Germany's second quarter GDP increased 0.1% from the previous quarter and rose 1.8% from a year ago, lifted by household and government spending.
Household spending rose 0.8% and government expenditures rose 2.3% in the quarter.
The quarterly growth slowed considerably when compared to the performance in the first quarter, the Federal Statistics Office said Thursday.
On a quarterly basis, the economy expanded at 0.8% and on an annual basis increased 3.9% in the first quarter.
The latest data clearly showed weakening economic activities but still the economy is humming along despite the supply chain issues, loss of markets in Russia and elevated costs of inputs.
A separate survey conducted by the Ifo institute showed weakening business sentiment in Germany.
The business climate index declined to 88.5 points in August from 88.7 points in July.
Investors also overlooked the weak confidence among French manufacturers in August, matching the expectations.
The DAX index added 0.4% to 13,217.96, the CAC-40 index fell 0.08% to 6,381.56, and the FTSE 100 index increased 0.1% to 7,479.74.
Unibail-Rodamco-Westfield rose 3.9% to 53.91 euros after the property developer announced the sale of Westfield Santa Anita in Arcadia, California for $537.5 million.
Novartis AG declined 0.8% to 80.20 Swiss francs after the drug maker said it plans to spinoff its biosimilar and generic business Sandoz next year as a standalone and publicly listed company.
Sandoz will be the largest generic company in Europe, the Swiss drug maker said Thursday.
The spinoff was widely anticipated after the company initiated business review last October and CEO Vas Narasimhan wants to sharpen focus on innovative new drugs.
Over the past few months Sandoz has attracted interest from several generic makers and buyout firms but Novartis has not received any binding offer, Narasimhan added in a call with reporters.
Delivery Hero SE declined 4.4% to 45.73 euros after the German food delivery company forecasted wider loss in the full-year 2022.
Gross merchandise volume on the online platform increased 18% to 9.9 billion euros and total segment revenues jumped 38% to 2.1 billion euros in the second quarter.
The food delivery company also guided third quarter gross merchandise volume to increase 7% on a quarterly basis to 10.6 billion euros and to 11.5 billion euros including the recent acquisition of Glovo.
The delivery company revised its full-year 2022 adjusted EBITDA loss to range between 1.5% and 1.6% of gross merchandise volume from the previous estimated range between 0.9% and 1.0%.
The revised guidance includes losses of up to 300 million euros in its recently acquired Glovo business.
- Scott Peters
- 25 Aug, 2022
- New York City
Dollar Tree, Inc plunged 10.9% to $148.02 after the deep discount retailer posted second quarter total sales increased 6.7% to $6.77 billion.
Same store sales increased 4.9% driven by 7.5% increase at Dollar Tree banner stores and 2.0% rise at Family Dollar stores.
Net income increased 27.4% to $359.9 million from $282.4 million a year ago and diluted earnings per share for the quarter rose 30.1% to a second quarter company record $1.60, compared to $1.23 a year ago.
The company tightened its full-year sales outlook between $27.85 billion and $28.10 billion from the previous range between $27.76 and $28.14 billion.
Full-year diluted earnings per share are also revised lower to fall between $7.10 and $7.40 from the earlier guidance between $7.80 and $8.20.
The company estimates consolidated net sales for the third quarter of 2022 between $6.75 billion and $6.87 billion, based on a mid-single-digit increase in overall same store sales.
Diluted earnings per share for the third quarter are estimated to be in the range of $1.05 to $1.20.
The company repurchased 1,754,496 shares in the first six months of fiscal 2022 for $250 million and $2.25 billion are still remaining under its share repurchase authorization at the end of the second quarter.
- Scott Peters
- 25 Aug, 2022
- New York City
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.
Total revenues declined 28% to $678.7 million after fitness equipment sales plunged 55% to $297 million and subscription revenues rose 36% to $383 million.
Net loss in the quarter soared four-fold to $1.24 billion and free cash outflow improved to $412 million from $678 million a year ago.
- Scott Peters
- 25 Aug, 2022
- New York City
Dollar General Corp was nearly unchanged at $247.09 after the deep discount retailer reported stronger quarterly results.
Revenues in fiscal second quarter 2022 ending in July increased 9.0% to $9.4 billion on a comparable same store sales rise of 4.6%.
Same-store sales increase was driven primarily by an increase in average transaction amount, as well as a slight increase in customer traffic.
higher fuel costs and prices forced many customers to stick to basic items.
Same-store sales in the second quarter included growth in the consumables category, partially offset by declines in each of the apparel, seasonal, and home products categories.
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.
During the second quarter of 2022, the company opened 227 new stores, remodeled 533 stores, and relocated 30 stores at a total cot of $659 million.
Share Repurchase and Dividend
In the second quarter of 2022, the company repurchased 1.5 million of its own shares for $349 million at an average price of $233.36 a share, under its share repurchase program.
The total remaining authorization for future repurchases was $1.0 billion at the end of the second quarter of 2022.
On August 24, 2022, the company
- Scott Peters
- 25 Aug, 2022
- New York City
Autodesk Inc increased 1.5% to $217.64 after the design software developer reported higher sales and earnings and offered positive outlook.
The company is benefitting as organizations accelerate digitizing processes and collaborate between departments by placing more data in the cloud.
Second quarter revenues increased 17% to $1.2 billion.
Net income in the second quarter increased to $186 million from $115 million a year ago and diluted earnings per share rose to 86 cents from 52 cents a year ago.
The company said as it moves from products to platforms and capabilities the demand for its products remains "robust."
Deferred revenue increased 12% to $3.70 billion and unbilled deferred revenue was $984 million, an increase of $141 million compared to a year ago.
Remaining performance obligations (RPO) increased 13% to $4.69 billion and current RPO increased 10% to $3.14 billion.
Cash flow from operating activities increased $55 million to $257 million and free cash flow rose $60 million to $246 million from a year ago.
Revenues for the fiscal full-year 2023 are estimated between $4.985 and $5.035, an increase between 14% and 15% from a year ago.
- Scott Peters
- 25 Aug, 2022
- New York City
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 after 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.
Sustained lockdown conditions in several parts of China negatively impacted sales and elevated inflation also affected demand in Europe and the Middle East and in the U.S.
Sales in the U.S. declined 4% and overall international sales dropped 14% driven by a 33% sales plunge in Asia Pacific and 13% in Europe and the Middle East.
In the quarter, Hollister banner store sales declined 15% to $437 million and Abercrombie store sales rose 5% to $368 million.
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%.
The parent of Hollister and Abercrombie estimated net sales in the third quarter to fall in high-single-digits from the third quarter level of 2021 level of $905 million.
Inventories in the quarter shot up 70% to $708 million from a year ago as the company ordered items in advance to mitigate supply chain disruptions.
In the quarter, the company returned approximately $18 million to shareholders through the repurchase of approximately one million shares.
In the fiscal-half ending in July 2022, the retailer purchased 4.3 million shares and returned $118 million to shareholders through share repurchases.
The company has $240 million remaining on the share repurchase authorization established in November 2021.
- Barry Adams
- 25 Aug, 2022
- New York City
Stocks on Wall Street opened higher and the GDP contraction in the second quarter was revised to a smaller decline than previously estimated.
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%.
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%.
Autodesk Inc increased 1.5% to $217.64 after the design software developer said second quarter revenues increased 17% to $1.2 billion.
Net income in the second quarter increased to $186 million from $115 million a year ago and diluted earnings per share rose to 86 cents from 52 cents a year ago.
The company said as it moves from products to platforms and capabilities the demand for its products remains "robust."
Revenues for the fiscal full-year 2023 are estimated between $4.985 and $5.035, an increase between 14% and 15% from a year ago.
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.
Dollar Tree, Inc plunged 10.9% to $148.02 after the deep discount retailer posted second quarter total sales increased 6.7% to $6.77 billion.
Same store sales increased 4.9% driven by 7.5% increase at Dollar Tree banner stores and 2.0% rise at Family Dollar stores.
Net income increased 27.4% to $359.9 million and diluted earnings per share for the quarter rose 30.1% to a second quarter company record $1.60, compared to $1.23 a year ago.
The company tightened its full-year sales outlook between $27.85 billion and $28.10 billion from the previous range between $27.76 and $28.14 billion.
Full-year diluted earnings per share are also revised lower to fall between $7.10 and $7.40 from the earlier guidance between $7.80 and $8.20.
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.
Total revenues declined 28% to $678.7 million after fitness equipment sales plunged 55% to $297 million and subscription revenues rose 36% to $383 million.
Net loss in the quarter soared four-fold to $1.24 billion and free cash outflow improved to $412 million from $678 million a year ago.
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.
Online health services providers rose on news that Amazon.com is planning to shut its internal online health services for its employees.
Teladoc Health increased 2.5%, Amwell gained 5.5% and Hims and Hers Health added 2.6%.
- 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.
- 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
- 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.
- 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.
- 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.
- 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%.