All three of the major U.S. stock averages rallied on Thursday after Atlanta Federal Reserve President Raphael Bostic signaled policymakers should be cautious in determining the size of future rate hikes so they don’t “overshoot.” He favors a quarter-point rate hike in March.
Additionally, Salesforce lifted the Dow after delivering a strong outlook. The stock posted the best percentage gain since August 2020.
The 10-year Treasury yield hit 4.072%, the highest since November. In commodities, oil rose 0.6% to $78.16 per barrel.
The Consumer Safety Product Commission is seeking public comment on possible chronic hazards associated with gas stoves.
The request for information does not constitute or propose any regulatory action or ban.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| HPE | $15.50 | -0.04 | -0.26 |
Hewlett Packard Enterprise Co. on Thursday reported fiscal first-quarter profit of $501 million.
On a per-share basis, the Spring, Texas-based company said it had profit of 38 cents. Earnings, adjusted for non-recurring costs and stock option expense, were 63 cents per share.
The results exceeded Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 52 cents per share.
The information technology products and services provider posted revenue of $7.81 billion in the period, also beating Street forecasts. Seven analysts surveyed by Zacks expected $7.4 billion.
For the current quarter ending in April, HP Enterprise expects its per-share earnings to range from 44 cents to 52 cents.
The company said it expects revenue in the range of $7.1 billion to $7.5 billion for the fiscal second quarter.
HP Enterprise expects full-year earnings in the range of $2.02 to $2.10 per share.
{{#rendered}}| Symbol | Price | Change | %Change |
|---|---|---|---|
| SFM | $34.80 | 4.00 | 12.99 |
Sprouts Farmers Market Inc. on Thursday reported fourth-quarter earnings of $45.1 million.
On a per-share basis, the Phoenix-based company said it had profit of 42 cents.
The results surpassed Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 37 cents per share.
The natural and organic food retailer posted revenue of $1.58 billion in the period, which also topped Street forecasts. Three analysts surveyed by Zacks expected $1.56 billion.
For the year, the company reported profit of $261.2 million, or $2.39 per share. Revenue was reported as $6.4 billion.For the current quarter ending in March, Sprouts Farmers expects its per-share earnings to range from 83 cents to 87 cents.
The company expects full-year earnings in the range of $2.41 to $2.53 per share.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| KR | $43.38 | 0.24 | 0.56 |
Kroger Co forecast annual profit above Wall Street estimates on Thursday, as the supermarket chain benefits from higher prices, easing cost pressures and steady demand for its groceries and other essentials.
Kroger's upbeat forecast is in contrast to that of retail chains such as Walmart Inc, Target Corp and Dollar Tree Inc, which have all issued downbeat 2023 profit forecasts, as weakening consumer spending on discretionary goods squeeze margins.
Analysts have also said Kroger's move to use automation across its businesses, coupled with its personal finance and media divisions, should help cushion margins.
Kroger forecast adjusted earnings per share of between $4.45 and $4.60 for fiscal 2023, while analysts on average expected a profit of $4.20 per share, according to Refinitiv IBES data.
Still, the company projected same-store sales growth, excluding fuel, of 1% to 2% in fiscal 2023, below analysts' estimate of a 2.23% increase.
Ford will resume production of its F-150 Lightning on March 13, the company said on Thursday.
The automaker first halted production last month after a battery fire on Feb. 4, at its plant in Dearborn, MI.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| F | $12.29 | -0.03 | -0.22 |
On Feb. 24, Ford extended its delay until March 6.
Emma Bergg, a Ford spokesperson said on Thursday, “We will restart production at the Rouge Electric Vehicle Center (REVC) on March 13, allowing time for SK On’s battery cells to be built into battery arrays and packs and be delivered to the Lightning production line.”
“In the weeks ahead, we will continue to apply our learnings and work with SK On’s team to ensure we continue delivering high-quality battery packs – down to the battery cells,” she added. “As REVC ramps up production, we will continue holding already-produced vehicles while we work through engineering and parts updates.”
{{#rendered}}The average long-term U.S. mortgage rate hit a three-month high this week, reflecting higher Treasury yields and expectations that the Federal Reserve will continue to raise its benchmark rate and keep it there until inflation recedes.
Mortgage buyer Freddie Mac reported Thursday that the average on the benchmark 30-year rate rose to 6.65% from 6.5% last week. The average rate a year ago was 3.76%.
The average long-term rate reached a two-decade high of 7.08% in the fall as the Fed continued to raise its key lending rate in a bid to cool the economy and quash persistent, four-decade high inflation.
Rates came down this winter as it appeared inflation was steadily declining. But recent economic data reveal a still-hot economy and stubborn inflation. The recent rise in mortgage couldn't come at worse time for the slumping housing market, on the verge of its spring buying season.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BUD | $60.36 | 0.11 | 0.18 |
Anheuser-Busch InBev, the world's largest brewer, expressed confidence in China's recovery and the willingness of drinkers to pay higher prices after reporting increased profit in the fourth quarter despite lower beer sales.
The maker of Budweiser, Corona and Stella Artois on Thursday registered record drinks volumes for the year , but they fell by 0.6% in the final quarter of 2022, compared with a rise expected by the market.
AB InBev's sales and earnings declined in China due to a strict zero COVID policy that was suddenly dropped in December.
In the United States, AB InBev's largest market, profit and revenue increased, largely because of price increases, although those same increases, along with harsh winter weather in December, cut into beer sales in volume terms.
"Beer is a very resilient category," Doukeris said, adding the trend towards more higher priced premium beers was continuing, notably for drinking occasions in people's homes.
The company's overall core profit — earnings before interest, tax, depreciation and amortization (EBITDA) — rose 7.6% on a like-for-like basis in the fourth quarter to $4.95 billion, above the 7.1% gain expected by analysts in a company-compiled poll.
For the whole year, core profit growth was 7.2%.
The Belgium-based company forecast core profit would grow in 2023 in line with its medium-term outlook range of 4% to 8%, with revenue expanding at a higher rate than profit.
AB InBev also increased its full-year dividend to a proposed 0.75 euros from 0.50 euros in each of the past two years.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| UTZ | $17.36 | 1.06 | 6.50 |
Utz Brands, Inc. on Thursday reported fourth-quarter profit of $14.9 million.
On a per-share basis, the Hanover, Pennsylvania-based company said it had net income of 18 cents. Earnings, adjusted for one-time items, were 15 cents per share.
The results exceeded Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 12 cents per share.
The company posted revenue of $354.7 million in the period, also beating Street forecasts. Three analysts surveyed by Zacks expected $332.5 million.
{{#rendered}}| Symbol | Price | Change | %Change |
|---|---|---|---|
| HRL | $42.16 | -1.67 | -3.81 |
Hormel Foods Corp. on Thursday reported fiscal first-quarter earnings of $217.7 million.
The Austin, Minnesota-based company said it had profit of 40 cents per share.
The results did not meet Wall Street expectations. The average estimate of five analysts surveyed by Zacks Investment Research was for earnings of 45 cents per share.
The maker of Spam canned ham, Dinty Moore stew and other foods posted revenue of $2.97 billion in the period, which also missed Street forecasts. Four analysts surveyed by Zacks expected $3.1 billion.Hormel expects full-year earnings to be $1.70 to $1.82 per share.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| M | $20.43 | -0.03 | -0.15 |
Macy's profit and sales for the holiday quarter slid with inflation leading some customers to pull back, but it beat Wall Street expectations and its outlook for 2023 didn't disappoint given the uncertain economic environment.
The company said it expects to earn between $3.67 and $4.11 per share, compared with analysts projections for per-share earnings of $3.78.
Macy's earned $508 million, or $1.83 per share, in the quarter ended Jan. 28. Stripping out certain items, its earnings were $1.88 per share. That tops the per-share earnings of $1.57 that Wall Street had expected, according to a survey by Zacks Investment Research.
Sales declined to $8.26 billion from $8.67 billion, but that also topped analyst projections. Macy's Inc. it expects sales of $23.7 billion to $24.2 billion for 2023, which is on the lighters side compared with analyst projections.
Comparable sales dropped 3.3% on an owned basis and were down 2.7% on an owned-plus-licensed basis.
The U.S. stock averages are mostly lower on Thursday as Wall Street traders take in another day of earnings from Big Lots, Best Buy and Macy’s.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BIG | $13.73 | -0.62 | -4.32 |
| BBY | $82.54 | -0.57 | -0.69 |
| M | $20.43 | -0.03 | -0.15 |
The Dow Jones Industrial is hovering just above the flatline, while the S&P and Nasdaq trade in the red.
In commodities, oil is up approximately 0.55% to $78.12 a barrel as gold sheds roughly 0.26% to $1,840.60 an ounce.
Meanwhile, silver is off, slipping round 1.37% to $20.80 an ounce.
{{#rendered}}| Symbol | Price | Change | %Change |
|---|---|---|---|
| BBY | $82.54 | -0.57 | -0.69 |
Best Buy Co Inc on Thursday joined peers with a cautious annual earnings forecast as uncertainty over the U.S. economic outlook tempers expectations for a recovery in demand for TVs, laptops and other electronic products.
Best Buy and other retailers have offered bigger discounts than usual during the holiday season to stoke demand as surging costs of rent and food over the last year hammered spending on non-essentials.
The company sees no relief this year, forecasting full-year comparable sales to fall 3% to 6%, compared with analysts' estimates for a 1.9% decline.
The company expects fiscal 2024 adjusted earnings per share of $5.70 to $6.50, below analysts' estimates of $6.71.
.On an adjusted basis, the company earned $2.61 per share in the fourth quarter ended Jan. 28, beating analysts' estimates of $2.11, according to IBES data from Refinitiv.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| SIX | $26.76 | 0.36 | 1.36 |
Six Flags Entertainment Corp. on Thursday reported fourth-quarter profit of $13.4 million.
The Arlington, Texas-based company said it had profit of 16 cents per share. Earnings, adjusted for asset impairment costs, came to 32 cents per share.
The results surpassed Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for earnings of 23 cents per share.
The amusement park operator posted revenue of $279.9 million in the period, missing Street forecasts. Seven analysts surveyed by Zacks expected $282.1 million.
For the year, the company reported profit of $108.9 million, or $1.29 per share. Revenue was reported as $1.36 billion.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BIG | $13.73 | -0.62 | -4.32 |
Big Lots Inc. on Thursday reported a fiscal fourth-quarter loss of $12.5 million, after reporting a profit in the same period a year earlier.
On a per-share basis, the Columbus, Ohio-based company said it had a loss of 43 cents. Losses, adjusted for one-time gains and costs, were 28 cents per share.
The results topped Wall Street expectations. The average estimate of seven analysts surveyed by Zacks Investment Research was for a loss of 69 cents per share.
The discount retailer posted revenue of $1.54 billion in the period, which missed Street forecasts. Six analysts surveyed by Zacks expected $1.55 billion.
For the year, the company reported a loss of $210.7 million, or $7.30 per share, swinging to a loss in the period. Revenue was reported as $5.47 billion.
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