- Barry Adams
- 19 Aug, 2022
- New York City
Stocks turned lower on Wall Street after inflation and higher rates worries resurfaced and the benchmark indexes halted four weekly gains a row.
The Fed's minutes of the latest meeting and comments from St. Louis Federal Reserve President James Bullard seemed to indicate that the central bank will continue its campaign to lift rates at a faster pace, contradicting the hopes of a slower rate increase in the near-term.
Tech stocks led decliners as investors avoided high growth stocks and the S&P 500 index is set to close down 1% and the tech-heavy Nasdaq 2.2% for the week.
The S&P 500 index fell 1.3% or 55.26 to 4,228.48 and the Nasdaq Composite index dropped 2.01% to 12,705.20.
For the week, the S&P 500 declined 1.2% and the Nasdaq Composite dropped 2.6%.
Futures of crude oil decreased 45 cents to $90.05 a barrel and natural gas rose 9 cents to $9.29 a thermal unit.
The yield on 10-year Treasury notes rose to 2.97% and 30-year Treasury bonds traded up 7 basis points to 3.22% and 2-year Treasury notes rose to 3.27%.
Movers: Bed Bath & Beyond, Cineworld, Wayfair
Bed Bath & Beyond dropped 40.2% to $11.14 after investor Ryan Cohen sold his entire stake of 9.4 million shares and call options.
Cohen's filings with the regulatory agency SEC shows that the stake in the homewares retailer was sold on Tuesday and Wednesday.
According to the regulatory filings in March, Cohen, co-founder of Chewy.com and a board member of AMC, spent nearly $120 million in acquiring a stake in the retailer and sold his positions after five months in the low 20's, resulting in a profit of at least $60 million.
Bill.com Holdings Inc rose 13% to $168.80 after the back-office software provider reported better-than-expected quarterly results.
Revenues in the quarter ending in June soared 156% to $200.2 million.
Net loss in the quarter surged to $84.9 million or $0.81 a share, basic and diluted, compared to net loss of $41.9 million or $0.48 per share,
The company forecasted fiscal 2023 first quarter revenues to fall between $208 million and $211 million, an increase between 76% and 78% from a year ago.
Bill.com forecasted fiscal 2023 revenues in the range between $955.5 million and $973.5 million, representing an increase between 49% and 52%.
Deere & Company declined 1.6% to $362.93 after the maker of industrial equipment reported higher sales but earnings were below expectations.
Net revenues in the third quarter ending in July increased 22% to $14.1 billion
Net income in the fiscal third quarter increased to $1.88 billion or $6.16 a share compared to $1.67 billion or $5.32 a share.
The higher production costs nearly wiped out the price increase implemented by the company, but improved volume mixed lifted the earnings in the quarter.
Deere also tightened its annual sales range between $7.0 billion and $7.2 billion from the previous range between $7.0 billion and $7.4 billion.
Foot Locker, Inc soared 19.8% to $38.28 after the athletic footwear and apparel retailer posted better-than-expected results and announced the appointment of a new chief executive officer.
Richard Johnson will be replaced by Mary Dillon, former chief executive of Ulta Beauty on September 1.
Madison Square Garden Entertainment Group rose 2.0% to $63.92 on the news that the company's board is looking to separate its live entertainment business and MSG Networks businesses.
Ross Stores fell 2.1% to $90.01 after the discount retailer reported strong quarterly results but forecasted weaker annual outlook.
The retailer said its quarterly results were impacted by increased promotional activities and higher product costs.
Cineworld, the parent of Regal Cinemas, plunged as much as 90% before closing down 60% after the company searches for capital injection and prepares for a bankruptcy filing.
The parent of Regal Cinemas, operates more than 540 locations in the U.S. and more than 750 worldwide, a day ago announced that existing shareholders may be diluted significantly in the event of new capital injection.
Following the announcement, the company is looking for bankruptcy advisors in the U.S. and the U.K.
Wayfair Inc dropped 19.3% to $57.73 after the online furniture retailer said in a regulatory filing that it plans to cut 5% of its staff or 870 positions as a part to cut costs.
The company plans to take a one-time charge in the third quarter between $30 million and $40 million linked to the employee severance and benefits expenses.
European Markets Fall On Inflation Worries
European markets closed down amid worries of economic slowdown, soaring inflation, and the prospects of interest rate hikes in coming months.
European markets have gained at least 7% since mid-June on the hopes that the inflation is peaking and future rate hikes are less likely.
However, the U.S. Federal Reserve's latest minutes of meeting poured cold water on market optimism.
The DAX index declined 1.1% to 13,544.52, the CAC -40 index fell 0.9% to 6,495.93, and the FTSE 100 index added 0.1% to 7,550.37.
The dollar rebounded in the euro dropped to 1$1.004 and the U.K. pound declined to $1.18 after the release of the retail sales data.
Retail sales in July unexpectedly increased 0.3% on a monthly basis after rising at 0.2% in June, the Office for National Statistics reported Friday.
On a yearly basis, retail sales declined 3.4% in July and sales are likely to fall as inflation surges above 10%.
Germany's producer price index, a measure of wholesale prices, soared to 37.2% in July after rising 32.7% in June, the Destatis reported Friday.
The latest surge in wholesale prices was driven by a 105% jump in energy prices from a year ago.
In Paris trading, ArcelorMittal and Air France-KLM led the decliners with a loss of 5%.
Societe Generale, BNP Paribas, Credit Agricole, Accor, Renault, and Airbus Group fell between 3% and 3.5%.
In Frankfurt trading, Deutsche Bank, Deutsche Lufthansa, Daimler, Porsche Automobil, BMW, Infineon, and Vonovia declined between 3% and 5%.
FLSmidth & Co soared 9.8% to 221.0 Danish kroner after the Danish mining equipment maker lifted its annual outlook.
The Swiss benchmark SMI closed down 10.87 points or 0.1% to 11,156.72 after dropping as low as 11,125.80 and trading as high as 11,241.18.
Swiss industrial production rose 5.1% in the second quarter, the Federal Statistics Office reported Friday.
Credit Suisse and UBS Group declined nearly 4% and Dufry, Flughafen Zurich, and VAT Group fell between 2% and 4%.
- Bridgette Randall
- 19 Aug, 2022
- Frankfurt
European markets closed down amid worries of economic slowdown, soaring inflation, and the prospects of interest rate hikes in coming months.
European markets have gained at least 7% since mid-June on the hopes that the inflation is peaking and future rate hikes are less likely.
However, the U.S. Federal Reserve's latest minutes of meeting poured cold water on market optimism.
The DAX index declined 1.1% to 13,544.52, the CAC -40 index fell 0.9% to 6,495.93, and the FTSE 100 index added 0.1% to 7,550.37.
The dollar rebounded in the euro dropped to 1$1.004 and the U.K. pound declined to $1.18 after the release of the retail sales data.
Retail sales in July unexpectedly increased 0.3% on a monthly basis after rising at 0.2% in June, the Office for National Statistics reported Friday.
On a yearly basis, retail sales declined 3.4% in July and sales are likely to fall as inflation surges above 10%.
Germany's producer price index, a measure of wholesale prices, soared to 37.2% in July after rising 32.7% in June, the Destatis reported Friday.
The latest surge in wholesale prices was driven by a 105% jump in energy prices from a year ago.
Cineworld Group, the second largest operator of movie theater chain, plunged as much as 90% before recovering to close down 60% to 4.07%.
The parent of Regal Cinemas, operates more than 540 locations in the U.S. and more than 750 worldwide, a day ago announced that existing shareholders may be diluted significantly in the event of new capital injection.
Following the announcement today, the company is looking for bankruptcy advisors in the U.S. and the U.K.
In Paris trading, ArcelorMittal and Air France-KLM led the decliners with a loss of 5%.
Societe Generale, BNP Paribas, Credit Agricole, Accor, Renault, and Airbus Group fell between 3% and 3.5%.
In Frankfurt trading, Deutsche Bank, Deutsche Lufthansa, Daimler, Porsche Automobil, BMW, Infineon, and Vonovia declined between 3% and 5%.
FLSmidth & Co soared 9.8% to 221.0 Danish kroner after the Danish mining equipment maker lifted its annual outlook.
The Swiss benchmark SMI closed down 10.87 points or 0.1% to 11,156.72 after dropping as low as 11,125.80 and trading as high as 11,241.18.
Swiss industrial production rose 5.1% in the second quarter, the Federal Statistics Office reported Friday.
Credit Suisse and UBS Group declined nearly 4% and Dufry, Flughafen Zurich, and VAT Group fell between 2% and 4%.
- Scott Peters
- 19 Aug, 2022
- New York City
Ross Stores fell 2.1% to $90.01 after the discount retailer reported strong quarterly results but forecasted weaker annual outlook.
The retailer said its quarterly results were impacted by increased promotional activities and higher product costs.
Sales in the second quarter fell to $4.6 billion from $4.8 billion in the prior year's period and comparable store sales fell 7%.
Net income in the second quarter declined to $385 million or $1.10 a share from $494 million or $1.39 a share a year ago.
The retailer forecasted third quarter same store sales to decline 7% to 9% compared to 14% gain last year.
For the fourth quarter, same store sales are estimated to fall between 4% and 7% on top of a 9% increase for the same period a year ago.
- Scott Peters
- 19 Aug, 2022
- New York City
Foot Locker, Inc soared 19.8% to $38.28 after the athletic footwear and apparel retailer posted better-than-expected results and announced the appointment of a new chief executive officer.
Richard Johnson will be replaced by Mary Dillon, former chief executive of Ulta Beauty on September 1.
Second quarter sales declined 9.2% to $2.07 billion from $2.28 billion a year ago and net income plunged to $94 million from $430 million a year ago.
Diluted earnings per share fell to 99 cents from $4.09 a year ago.
Comparable same store sales fell 10.3% from a year ago.
Foot Locker revised its full-year sales growth outlook to decline in the range between 6% and 7% from the previous outlook of near the upper end of the 4% to 6% decline.
The company repurchased $40 million of its stock in the quarter.
- Scott Peters
- 19 Aug, 2022
- New York City
Deere & Company declined 1.6% to $362.93 after the maker of industrial equipment reported higher sales but earnings were below expectations.
Net revenues in the third quarter ending in July increased 22% to $14.1 billion.
Net income in the fiscal third quarter increased 12.6% to $1.88 billion or $6.16 a share compared to $1.67 billion or $5.32 a share.
The higher production costs nearly wiped out the price increase implemented by the company, but improved volume mixed lifted the earnings in the quarter.
Deere also tightened its annual sales range between $7.0 billion and $7.2 billion from the previous range between $7.0 billion and $7.4 billion.
- Scott Peters
- 19 Aug, 2022
- New York City
Bill.com Holdings Inc rose 13% to $168.80 after the back-office software provider reported better-than-expected quarterly results.
Revenues in the quarter ending in June soared 156% to $200.2 million, ahead of the company's guidance between $182.3 million and $183.3 million.
Net loss in the quarter surged to $84.9 million or $0.81 a share, basic and diluted, compared to net loss of $41.9 million or $0.48 per share,
The company forecasted fiscal 2023 first quarter revenues to fall between $208 million and $211 million, an increase between 76% and 78% from a year ago.
Bill.com forecasted fiscal 2023 revenues in the range between $955.5 million and $973.5 million, representing an increase between 49% and 52%.
- Barry Adams
- 19 Aug, 2022
- New York City
Stocks turned lower on Wall Street after inflation and higher rates worries resurfaced.
The Fed's minutes of the latest meeting and comments from St. Louis Federal Reserve President James Bullard seemed to indicate that the central bank will continue its campaign to lift rates at a faster pace, contradicting the hopes of a slower rate increase in the near-term.
Tech stocks led the decliners as investors avoided high growth stocks and the S&P 500 index is set to close down 1% and the tech-heavy Nasdaq 2.2% for the week.
The S&P 500 index fell 1.3% or 56.41 to 4,228.02 and the Nasdaq Composite index dropped 2.2% to 12,689.10.
Bed Bath & Beyond dropped 40.2% to $11.14 after investor Ryan Cohen sold his entire stake of 9.4 million shares and call options.
Cohen's filings with the regulatory agency SEC shows that the stake in the homewares retailer was sold on Tuesday and Wednesday.
According to the regulatory filings in March, Cohen, co-founder of Chewy.com and a board member of AMC, spent nearly $120 million in acquiring a stake in the retailer and sold his positions after five months in the low 20's, resulting in a profit of at least $60 million.
Bill.com Holdings Inc rose 13% to $168.80 after the back-office software provider reported better-than-expected quarterly results.
Revenues in the quarter ending in June soared 156% to $200.2 million.
Net loss in the quarter surged to $84.9 million or $0.81 a share, basic and diluted, compared to net loss of $41.9 million or $0.48 per share,
The company forecasted fiscal 2023 first quarter revenues to fall between $208 million and $211 million, an increase between 76% and 78% from a year ago.
Bill.com forecasted fiscal 2023 revenues in the range between $955.5 million and $973.5 million, representing an increase between 49% and 52%.
Deere & Company declined 1.6% to $362.93 after the maker of industrial equipment reported higher sales but earnings were below expectations.
Net revenues in the third quarter ending in July increased 22% to $14.1 billion
Net income in the fiscal third quarter increased to $1.88 billion or $6.16 a share compared to $1.67 billion or $5.32 a share.
The higher production costs nearly wiped out the price increase implemented by the company, but improved volume mixed lifted the earnings in the quarter.
Deere also tightened its annual sales range between $7.0 billion and $7.2 billion from the previous range between $7.0 billion and $7.4 billion.
Foot Locker, Inc soared 19.8% to $38.28 after the athletic footwear and apparel retailer posted better-than-expected results and announced the appointment of a new chief executive officer.
Richard Johnson will be replaced by Mary Dillon, former chief executive of Ulta Beauty on September 1.
Second quarter sales declined 9.2% to $2.07 billion from $2.28 billion a year ago and net income plunged to $94 million from $430 million a year ago.
Diluted earnings per share fell to 99 cents from $4.09 a year ago.
Comparable same store sales fell 10.3% from a year ago.
Foot Locker revised its full-year sales growth outlook to decline in the range between 6% and 7% from the previous outlook of near the upper end of the 4% to 6% decline.
Madison Square Garden Entertainment Group rose 2.0% to $63.92 on the news that the company's board is looking to separate its live entertainment business and MSG Networks businesses.
Ross Stores fell 2.1% to $90.01 after the discount retailer reported strong quarterly results but forecasted weaker annual outlook.
The retailer said its quarterly results were impacted by increased promotional activities and higher product costs.
Sales in the second quarter fell to $4.6 billion from $4.8 billion in the prior year's period and comparable store sales fell 7%.
Net income in the second quarter declined to $385 million or $1.10 a share from $494 million or $1.39 a share a year ago.
The retailer forecasted third quarter same store sales to decline 7% to 9% compared to 14% gain last year.
For the fourth quarter, same store sales are estimated to be down between 4% and 7% on top of a 9% increase for the same period a year ago.
Wayfair Inc dropped 19.3% to $57.73 after the online furniture retailer said in a regulatory filing that it plans to cut 5% of its staff or 870 positions as a part to cut costs.
The company plans to take a one-time charge in the third quarter between $30 million and $40 million linked to the employee severance and benefits expenses.
- Barry Adams
- 19 Aug, 2022
- New York City
Stocks turned lower on Wall Street after inflation and higher rates worries resurfaced.
The Fed's minutes of the latest meeting and comments from St. Louis Federal Reserve President James Bullard seemed to indicate that the central bank will continue its campaign to lift rates at a faster pace, contradicting the hopes of a slower rate increase in the near-term.
Tech stocks led decliners as investors avoided high growth stocks and the S&P 500 index is set to close down 1% and the tech-heavy Nasdaq 2.2% for the week.
The S&P 500 index fell 1.01% or 43.74 to 4,240.02 and the Nasdaq Composite index dropped 1.70% to 12,746.50.
Futures of crude oil increased 61 cents to $91.11 a barrel and natural gas fell 8 cents to $9.11 a thermal unit.
The yield on 10-year Treasury notes rose to 2.97% and 30-year Treasury bonds traded up 7 basis points to 3.22% and 2-year Treasury notes rose to 3.27%.
Bed Bath & Beyond dropped 40.2% to $11.14 after investor Ryan Cohen sold his entire stake of 9.4 million shares and call options.
Cohen's filings with the regulatory agency SEC shows that the stake in the homewares retailer was sold on Tuesday and Wednesday.
According to the regulatory filings in March, Cohen, co-founder of Chewy.com and a board member of AMC, spent nearly $120 million in acquiring a stake in the retailer and sold his positions after five months in the low 20's, resulting in a profit of at least $60 million.
Bill.com Holdings Inc rose 13% to $168.80 after the back-office software provider reported better-than-expected quarterly results.
Revenues in the quarter ending in June soared 156% to $200.2 million.
Net loss in the quarter surged to $84.9 million or $0.81 a share, basic and diluted, compared to net loss of $41.9 million or $0.48 per share,
The company forecasted fiscal 2023 first quarter revenues to fall between $208 million and $211 million, an increase between 76% and 78% from a year ago.
Bill.com forecasted fiscal 2023 revenues in the range between $955.5 million and $973.5 million, representing an increase between 49% and 52%.
Deere & Company declined 1.6% to $362.93 after the maker of industrial equipment reported higher sales but earnings were below expectations.
Net revenues in the third quarter ending in July increased 22% to $14.1 billion
Net income in the fiscal third quarter increased to $1.88 billion or $6.16 a share compared to $1.67 billion or $5.32 a share.
The higher production costs nearly wiped out the price increase implemented by the company, but improved volume mixed lifted the earnings in the quarter.
Deere also tightened its annual sales range between $7.0 billion and $7.2 billion from the previous range between $7.0 billion and $7.4 billion.
Foot Locker, Inc soared 19.8% to $38.28 after the athletic footwear and apparel retailer posted better-than-expected results and announced the appointment of a new chief executive officer.
Richard Johnson will be replaced by Mary Dillon, former chief executive of Ulta Beauty on September 1.
Madison Square Garden Entertainment Group rose 2.0% to $63.92 on the news that the company's board is looking to separate its live entertainment business and MSG Networks businesses.
Ross Stores fell 2.1% to $90.01 after the discount retailer reported strong quarterly results but forecasted weaker annual outlook.
The retailer said its quarterly results were impacted by increased promotional activities and higher product costs.
- Barry Adams
- 18 Aug, 2022
- New York City
Benchmark indexes rebounded from early doldrums after investors digested a fresh batch of earnings and economic news.
Initial jobless claims at the last week edged higher but remained near the high for the year so far.
Jobless claims fell 2,000 from the previous week to 250,000 for the week ending on August 13, the Labor Department reported Thursday.
The four-week moving average of claims declined 2,750 to 246,750.
The sale of existing homes declined 5.9% in July from June and dropped 20% from a year ago as home prices remain stubbornly high, the National Association of Realtor reported Thursday.
The S&P 500 index edged up 0.3% to 4,286.09 and the Nasdaq Composite index rose 0.4% to 12,990.70
Futures of crude oil increased $1.54 to $89.64 and natural gas rose a fraction to $9.25 a thermal unit.
The yield on 10-year Treasury notes decreased to 2.84% and 2-year notes fell to 3.22%.
BJ's Wholesale Club Holdings Inc increased 8.4% to $74.90 after the company said total comparable club sales increased 19.8% and rose 7.6% excluding gasoline sales from a year ago.
Total sales increased 22.4% to $5 billion and membership fees rose 11.3% to $98.7 million.
Net income increased 27% to $141 million from $111 million a year ago and diluted earnings per share rose to $1.03 from 80 cents a year ago.
BJ's repurchased 353,000 shares of its common stock, totaling $22.8 million in the second quarter.
Bath & Body Works Inc declined a fraction to $40.16 after the personal care products retailer said second quarter sales declined 5% to $1.62 billion from $1.70 billion a year ago.
Net income in the second quarter declined to $120 million from $374.2 million a year ago and diluted earnings per share fell to 52 cents from 77 cents a year ago.
Bath & Body Works forecasted third quarter earnings from continuing operations a diluted share between $0.10 and $0.20.
For fiscal 2022, the company estimated earnings from continuing operations a diluted share between $2.70 and $3.00.
The company said it also eliminated 130 positions to lower its operating costs and become more efficient.
Through its reorganization, the company expects to save approximately $30 million in the second-half of 2022, prior to any impact from severance.
The company expects to record severance and other charges of approximately $6 million in the third quarter of 2022 related to the reorganization.
Bed Bath & Beyond plunged 23.8% to $17.57 after investor said in a regulatory filing that he intends to sell 7.78 million shares of the homewares retailer.
Cohen's earlier purchase of long-dated call options had fueled a two-week stock rally.
Cisco Systems increased 6.8% to $49.85 after the networking equipment maker reported better-than-expected revenues and earnings.
Cisco said revenues in the fiscal year fourth quarter ending in July were flat at $13.1 billion and net income declined 6% to $2.8 billion from a year ago.
Diluted earnings per share fell to 68 cents from 71 cents a year ago.
The networking gear maker estimated revenues in the first quarter ending in October to increase between 2% and 4% and earnings per share between 64 cents and 68 cents.
Cisco also estimated full-year revenues to rise between 4% and 6% and earnings per share to fall between $2.77 and $2.88.
Estee Lauder Companies increased 1.9% to $281.96 after the cosmetic maker said second quarter net sales 10% to $3.56 billion from $3.94 billion a year ago. Organic net sales decreased 8%.
Covid-19 restrictions and lockdowns impacted sales in China and overwhelmed the rising sales in the Americas.
Business closure in Russia also impacted sales in Europe and the Middle East.
Net income in the quarter plunged to $52 million or 14 cents a share from $1.02 billion or $2.76 a share.
Kohl's Corporation declined 4.8% to $32.20 after the retailer said second quarter comparable sales decreased 7.7% and net sales decreased 8.5% to $4.09 billion.
Net income in the period plunged to $143 million from $382 million a year ago.
Diluted earnings per share declined to $1.11 from $2.48 a year ago.
Kohl's revised lower its sales decline to range between 5% and 6% and earnings per share in the range between $2.80 and $3.20 excluding non-recurring items.
Home builders fell after the release of July existing home sales data.
Lennar, D R Horton, NVR Homes, Centex edged fractionally lower.
- Scott Peters
- 18 Aug, 2022
- New York City
BJ's Wholesale Club Holdings Inc increased 8.4% to $74.90 after the company said total comparable club sales increased 19.8% and rose 7.6% excluding gasoline sales from a year ago.
Total sales increased 22.4% to $5 billion and membership fees rose 11.3% to $98.7 million.
Net income increased 27% to $141 million from $111 million a year ago and diluted earnings per share rose to $1.03 from 80 cents a year ago.
BJ's repurchased 353,000 shares of its common stock, totaling $22.8 million in the second quarter.
- Scott Peters
- 18 Aug, 2022
- New York City
Kohl's Corporation declined 4.8% to $32.20 after the retailer said second quarter comparable sales decreased 7.7% and net sales fell 8.5% to $4.09 billion.
Net income in the period plunged 63% to $143 million from $382 million a year ago.
Diluted earnings per share declined to $1.11 from $2.48 a year ago.
Merchandise inventories shot up nearly 50% to $4.03 billion from a year ago.
Kohl's revised lower its sales decline to range between 5% and 6% and earnings per share in the range between $2.80 and $3.20 excluding non-recurring items.
On August 18, 2022, Kohl's announced an accelerated share repurchase agreement to repurchase approximately $500 million of the company
- Scott Peters
- 18 Aug, 2022
- New York City
Cisco Systems increased 6.8% to $49.85 after the networking equipment maker reported better-than-expected revenues and earnings.
Cisco said revenues in the fiscal year fourth quarter ending in July were flat at $13.1 billion and net income declined 6% to $2.8 billion from a year ago.
Diluted earnings per share fell to 68 cents from 71 cents a year ago.
The networking gear maker estimated revenues in the first quarter ending in October to increase between 2% and 4% and earnings per share between 64 cents and 68 cents.
Cisco also estimated full-year revenues to rise between 4% and 6% and earnings per share to fall between $2.77 and $2.88.
In the fourth quarter Cisco returned $4.0 billion to stockholders through share buybacks and dividends.
Cisco paid a cash dividend of $0.38 per common share or $1.6 billion, and repurchased approximately 54 million shares of common stock under the current repurchase program at an average price of $44.02 a share for an aggregate purchase price of $2.4 billion.
The remaining authorized amount for stock repurchases under the program is $15.2 billion with no termination date.
In the fiscal year ending in July 2022, total revenues increased 3% to $51.6 billion net income rose 12% to $11.8 billion, an increase of 12%.
Earnings per share increased 13% to $2.82.
- Brian Turner
- 18 Aug, 2022
- New York City
Initial jobless claims at the last week edged higher but remained near the high for the year so far.
Jobless claims fell 2,000 from the previous week to 250,000 for the week ending on August 13, the Labor Department reported Thursday.
The four-week moving average of claims declined 2,750 to 246,750.
The previous week's claims were revised lower 10,000 to 252,00.
- Brian Turner
- 18 Aug, 2022
- New York City
The sale of existing homes declined 5.9% in July from June and dropped 20% from a year ago as home prices remain stubbornly high, the National Association of Realtor reported Thursday.
Existing-home sales fell for the sixth month in a row to a seasonally adjusted annual rate of 4.81 million.
Median home price fell $100,000 from June but rose 10.8% from a year ago to $403,000.
"The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June," said NAR Chief Economist Lawrence Yun.
"Home sales may soon stabilize since mortgage rates have fallen to near 5%, thereby giving an additional boost of purchasing power to home buyers," Yun added.
Home sales may have fallen but this is still a fast moving market.
Eighty-two percent of homes sold in July were on the market for less than a month and a typical home was on the market for 14 days, matching June but lower than 17 days a year ago.
The 14-day home sale time is the shortest on record since the NAR began keeping the records in May 2011.
- Barry Adams
- 18 Aug, 2022
- New York City
Benchmark indexes rebounded from early doldrums after investors digested a fresh batch of earnings and economic news.
Initial jobless claims at the last week edged higher but remained near the high for the year so far.
Jobless claims fell 2,000 from the previous week to 250,000 for the week ending on August 13, the Labor Department reported Thursday.
The four-week moving average of claims declined 2,750 to 246,750.
The sale of existing homes declined 5.9% in July from June and dropped 20% from a year ago as home prices remain stubbornly high, the National Association of Realtor reported Thursday.
Existing-home sales fell for the sixth month in a row to a seasonally adjusted annual rate of 4.81 million.
Median home price fell $100,000 from June but rose 10.8% from a year ago to $403,000.
"The ongoing sales decline reflects the impact of the mortgage rate peak of 6% in early June," said NAR Chief Economist Lawrence Yun.
"Home sales may soon stabilize since mortgage rates have fallen to near 5%, thereby giving an additional boost of purchasing power to home buyers," Yun added.
Home sales may have fallen but this is still a fast moving market.
Eighty-two percent of homes sold in July were on the market for less than a month and a typical home was on the market for 14 days, matching June but lower than 17 days a year ago.
The 14-day home sale time is the shortest on record since the NAR began keeping the records in May 2011.
The S&P 500 index edged up 0.3% to 4,286.09 and the Nasdaq Composite index rose 0.4% to 12,990.70
Futures of crude oil increased $1.54 to $89.64 and natural gas rose a fraction to $9.25 a thermal unit.
The yield on 10-year Treasury notes decreased to 2.84% and 2-year notes fell to 3.22%.
Cisco Systems increased 6.8% to $49.85 after the networking equipment maker reported better-than-expected revenues and earnings.
Cisco said revenues in the fiscal year fourth quarter ending in July were flat at $13.1 billion and net income declined 6% to $2.8 billion from a year ago.
Diluted earnings per share fell to 68 cents from 71 cents a year ago.
The networking gear maker estimated revenues in the first quarter ending in October to increase between 2% and 4% and earnings per share between 64 cents and 68 cents.
Cisco also estimated full-year revenues to rise between 4% and 6% and earnings per share to fall between $2.77 and $2.88.
Kohl's Corporation declined 4.8% to $32.20 after the retailer said second quarter comparable sales decreased 7.7% and net sales decreased 8.5% to $4.09 billion.
Net income in the period plunged to $143 million from $382 million a year ago.
Diluted earnings per share declined to $1.11 from $2.48 a year ago.
Kohl's revised lower its sales decline to range between 5% and 6% and earnings per share in the range between $2.80 and $3.20 excluding non-recurring items.
BJ's Wholesale Club Holdings Inc increased 8.4% to $74.90 after the company said total comparable club sales increased 19.8% and rose 7.6% excluding gasoline sales from a year ago.
Total sales increased 22.4% to $5 billion and membership fees rose 11.3% to $98.7 million.
Net income increased 27% to $141 million from $111 million a year ago and diluted earnings per share rose to $1.03 from 80 cents a year ago.
BJ's repurchased 353,000 shares of its common stock, totaling $22.8 million in the second quarter.