STOCK MARKET NEWS: Bed Bath & Beyond soars, durable goods mixed, oil spikes
Retailers including Macy’s, Nordstrom’s and Amazon are in focus along with rising oil prices. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
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| Symbol | Price | Change | %Change |
|---|---|---|---|
| NVDA | $172.25 | 0.44 | 0.26 |
Chip designer Nvidia Corp predicted third-quarter revenue below market expectations on Wednesday after weak gaming demand led to a 19% sequential decline in second-quarter sales.
The gaming industry is showing signs of weakness as consumers pull back from discretionary purchases such as video-gaming gear amid decades-high inflation.
Chipmakers have also been struggling with supply-chain snarls ahead of the key holiday period due to the Russia-Ukraine conflict and COVID-19 curbs in China's manufacturing hubs.
The company expects third-quarter revenue of $5.90 billion, plus or minus 2%. Analysts had estimated $6.95 billion, according to Refinitiv data.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| CRM | $180.50 | 4.50 | 2.56 |
Salesforce Inc on Wednesday cut its full-year revenue forecast to below market estimates over a sharp hit from a strong dollar and strong competition in cloud computing, sending shares down 6% in extended trading.
The San Francisco, California-based company now expects revenue of $30.90 billion to $31.00 billion, lower than the $31.70 billion to $31.80 billion it forecast in May, and below Wall Street estimates of $31.73 billion.
Salesforce revenue forecast accounts for about $800 million hit from a strong dollar, a third higher compared to its outlook in May.
Salesforce reported revenue of $7.72 billion in the second quarter ended July 31, up 22% from last year.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| VSCO | $38.35 | 0.01 | 0.03 |
Victoria's Secret is down in extended trading. The lingerie, clothing, and beauty retailer estimates full year 2022 net sales will decrease in the mid to high single digit range compared to last year’s full year net sales of $6.785 billion.
Fiscal third quarter net sales is forecast to decrease in the high single digit range compared to last year’s third quarter net sales of $1.441 billion.
“We expect customers will continue to be challenged by inflationary and other financial pressures for the balance of 2022, and we have adjusted our inventory position and cost structure accordingly while allowing for continued investment in growth initiatives,” said CEO Martin Waters.
Fiscal second quarter sales for the three months ended July 30 declined 5.7% to $1.5 billion. Store and direct comp sales dropped 8%.
Net income was $69.9 million compared to $151.1 million a year ago.
General Motors CEO Mary Barra weighs in on how General Motors is handling various challenges while keeping consumers happy on 'The Claman Countdown.'
| Symbol | Price | Change | %Change |
|---|---|---|---|
| NTAP | $72.84 | -0.44 | -0.60 |
NetApp is higher in extended trading. The hybrid cloud data services and data management company topped Wall Street revenue and profit estimates.
Fiscal first quarter revenue rose 9% to $1.59 billion. Analysts expected $1.55 billion. Billings increased 13% to $1.56 billion.
Net income grew to $214 million from $202 million.
Diluted non-GAAP net income per share for the three months ended July 29 was $1.20, topping the estimate of $1.10.The company expects fiscal 2023 net revenues to grow 6% to 8%.
The Dow Jones Industrial Average, S&P 500 and Nasdaq Composite inched higher following three days of losses with energy and financial companies leading the gains. Investors are also awaiting Thursday’s revised 2Q GDP estimate and are looking ahead to the Fed’s Jackson Hole Wyoming conference. In commodities, oil rose 1.2% to $94.89 per barrel.
President Biden gives remarks on the student loan handout that will cost taxpayers $300 billion.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| V | $207.36 | 0.56 | 0.27 |
Visa credit card on reflective surface. (Photo by Jörg Carstensen/picture alliance via Getty Images)
Visa says it now has more tokens in circulation worldwide than credit cards. The financial services company has issued more than four billion network tokens, nearly doubling the count in one year.
Tokens are a security technology that replaces 16-digit Visa account numbers with a token that only Visa can unlock, protecting the underlying account information.
Visa says tokens have led to a 28% reduction in fraud rates and a 3% increase in approval rates — increasing sales for merchants while saving them money on fraud-related expenses.
More than 8,600 issuers and 800,000 merchants use tokens.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| FTCH | $9.46 | 1.62 | 20.66 |
Richemont Wednesday announced a long-awaited deal to offload most of its online fashion retailer YOOX Net-A-Porter (YNAP), clearing the way for its labels to sign up for technology run by luxury e-commerce specialist Farfetch.
The maker of Cartier jewelry and IWC watches said it expected a 2.7 billion euro ($2.68 billion) writedown related to the agreement in which Farfetch will initially acquire a 47.5% stake, in exchange for over 50 million Farfetch shares. The estimated write-down could fluctuate, depending on the listed price of Farfetch shares and exchange rates, Richemont added.
Farfetch shares lost 60% over the past six months, and it missed first quarter sales expectations due to business disruptions from lockdowns in China as well as a loss of sales in Russia.
"This seems very good news for both companies," said Bernstein analyst Luca Solca.
While Richemont will remove a "continuing source of losses," Farfetch will get a welcome boost to traffic from e-concession deals with Richemont labels, he said.
The deal comes amid a flurry of industry-wide investments in digital services as luxury players shrug off past skepticism and embrace new channels to reach customers, spurred by a faster shift to online consumption during the pandemic.
In a call with journalists on Wednesday, Farfetch and Richemont executives stressed their aim to make YNAP a "neutral and open platform" for the industry.
Despite heavy investments in YNAP over the years, Richemont's online distributors, including watch marketplace Watchfinder, still had an operating loss of 210 million euros in the fiscal year to March.
It had begun moving toward a more inventory-light "hybrid" business model, Farfetch, meanwhile, operates as a marketplace without inventory, making money by connecting buyers with brands and charging commissions.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| TRQ | $28.38 | 5.06 | 21.70 |
| RIO | $59.11 | -1.99 | -3.26 |
Miner Rio Tinto on Wednesday raised its offer to buy about 49% of Canada's Turquoise Hill Resources it does not already own to $3.1 billion.
Rio Tinto also said miner Turquoise's minority shareholders will receive C$40 ($31) per share.
Turquoise last week rejected an offer by Rio Tinto for $2.7 billion, saying the majority shareholder's proposal did not reflect the Canadian company's full and fair value.
Turquoise Hill is a single-asset company holding 66% of Oyu Tolgoi, one of the world's largest known copper and gold deposits, 550 km (342 miles) south of Mongolia's capital Ulaanbaatar.
Rio Tinto and the Mongolian government, which owns the remaining 34% of Oyu Tolgoi, earlier this year ended a long-running dispute over a near $7-billion expansion of the mine.
Wednesday's improved proposal has the same conditions as its initial proposal, Rio Tinto said, and is not subject to any financing condition or due diligence.
($1 = 1.30 Canadian dollars)
U.S. stocks struggled for direction across the board as investors digested cautious outlooks from retailers including Macy’s and Nordstrom as inflation takes a toll on consumer spending. In economic news, durable goods orders for July were flat. In commodities, oil spiked to the $94 per barrel level.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| PTON | $13.04 | 1.84 | 16.42 |
| AMZN | $133.56 | -0.06 | -0.05 |
Amazon and Peloton are teaming up so consumers can now buy "Bike, Guide, and select accessories and apparel" via the online retailer.
The troubled technology fitness company is exploring new avenues to shore up customers that dwindled post pandemic.
"We want to meet consumers where they are, and they are shopping on Amazon. Providing additional opportunities to expose people to Peloton is a clear next step, as we continue to generate excitement for our unparalleled connected fitness experience" said Peloton Chief Commercial Officer, Kevin Cornils in the announcement.
Peloton bike
Shares of Bed Bath & Beyond are seeing a big move higher after the WSJ reported the troubled retailer has secured financing to help with its reported cash crunch.
Stock footage, big ticket items
Durable goods for the month of July were unchanged compared to the prior month, according to the Commerce Department. Excluding transports orders rose 0.3% while capital goods orders rose 0.4%.
Stock traders (Reuters)
U.S. equity futures were bouncing between gains and losses Wednesday morning, looking to halt a three-day decline.
The major futures indexes suggest a small decline when the opening bell rings on Wall Street.
Oil prices traded higher adding to the surge of nearly 4% the previous day.
U.S. West Texas Intermediate crude futures contract traded at $93.00 a barrel, having jumped 3.7% the previous day. Brent crude futures traded around $99.00 a barrel.
Worries about inflation are weighing on investors' minds. A report on falling new home sales also set off pessimism about a possibly imminent recession.
The next big event circled on the calendar is a speech Friday by Jerome Powell, the chair of the U.S. Federal Reserve. He’ll be speaking at an annual symposium held by the Fed in Jackson Hole, Wyoming.
Wednesday's economic reports include pending home sales and durable goods orders.
Two stocks that were moving in the premarket were Nordstrom and Intuit on quarterly results. Shares of La-Z-Boy were higher.
In Asia, Japan's benchmark Nikkei 225 slid 0.5%, Hong Kong's Hang Seng dipped 1.2% and China's Shanghai Composite shed 1.9%.
On Wall Street, the S&P 500 dipped 9.26 points, or 0.2%, to 4,128.73 after flipping between small gains and losses through the day.
The Dow Jones Industrial Average dropped 154.02 points, or 0.5%, to 32909.59. The tech-heavy Nasdaq Composite slipped 0.27 point, or less than 0.1%, to 12381.30.
Gas Prices (AAA)
The average price of a gallon of gasoline slipped on Wednesday to $3.883, according to AAA. Tuesday's price was $3.892.
The price dropped below $4 for the first time since March more than a week ago, when the price fell to $3.99.
Gas has been on the decline since hitting a high of $5.016 on June 14. Diesel has slipped below $5.00 a gallon to $4.977.
Oil rig pumping (Reuters)
Oil prices traded higher Wednesday morning, adding to the surge of nearly 4% the previous day. There had been fears of an output cut by the OPEC and its allies.
U.S. West Texas Intermediate crude futures contract traded at $93.00 a barrel, having jumped 3.7% the previous day.
Brent crude futures traded around $99.00 a barrel.
Underlining tight supply, U.S. crude stockpiles fell by about 5.6 million barrels for the week ended Aug. 19, according to market sources. That's more than the estimate of a drop by 900,000 barrels in a Reuters poll. But gasoline inventories rose by about 268,000 barrels.
Bitcoin was trading around $21,000 after gaining in two of the last three days. Bitcoin is down more than 9% in the past week. For the month, the cryptocurrency is also lower by 9%.
Year-to-date, bitcoin is down more than 53%.
Ethereum was trading around $1,600, after losing more than 11% in the past week. Dogecoin was trading at 6 cents, down 20% in the past week.
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