RIDGELAND, Overlook. — Cal-Maine Food items obtained record highs in internet profits and internet income in the second quarter finished Nov. 28 as no positive assessments for very pathogenic avian influenza (HPAI) were being identified at manufacturing services.
Net earnings of $198.6 million, equal to $4.08 per share on the frequent stock, in comparison with $1.17 million, or 2¢ for every share, in the preceding year’s next quarter. Web sales of $801.7 million ended up up 110{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from $381.7 million.
“These outcomes replicate the existing market place natural environment characterised by record typical providing rates for regular eggs, principally because of to lowered offer relevant to the outbreak in the US of remarkably pathogenic avian influenza (HPAI), and excellent shopper need,” claimed Sherman Miller, chief government officer, when final results were being declared Dec. 28. “There have been no beneficial exams for HPAI at any of Cal-Maine Foods’ owned or contracted production services as of Dec. 28, 2022. Client demand for shell eggs continued to be fantastic in the quarter, especially major up to the Thanksgiving holiday, and we skilled file quarterly volume ranges for specialty eggs bought.”
Irrespective of the outcomes, Cal-Maine Foods’ stock on the Nasdaq was investing at $54.51 per share late in the morning on Dec. 29, down 12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from a near of $62.19 on Dec 28 and down 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} from a close of $63.78 on Dec. 27. Media experiences mentioned next-quarter outcomes came in underneath Wall Street forecasts.
HPAI ongoing to impression the sector negatively in the quarter. The complete number of birds, like chickens and turkeys, culled in the United States stood at 52.5 million by the finish of November, which was over the approximated 50 million birds in 2015, according to the US Office of Agriculture’s Animal and Plant Health and fitness Inspection Services.
Dozens of eggs sold at Cal-Maine Meals in the next quarter greater 5.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 284.1 million from 269.6 million. While standard egg volumes offered lowered 2.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} when when compared with the past year’s 2nd quarter, specialty egg volumes increased 24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. Cage-free of charge mandates that went into outcome on Jan. 1, 2022, in California and Massachusetts even more supported need.
“Conventional egg web normal marketing cost for each dozen amplified to $2.883 when compared with $1.151 a year in the past, and both conventional and specialty egg earnings reached file degrees for the 2nd quarter of fiscal 2023,” stated Max Bowman, chief economic officer for Cal-Maine Meals. “Net typical offering price for specialty eggs rose 24.9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $2.370 per dozen, in comparison with $1.898 for every dozen for the next quarter of 2022. We observed our maximum at any time quarterly profits of specialty eggs of $227.8 million, or 29.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of total shell egg income. Specialty dozens bought had been 33.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of full dozens bought as opposed with 28.7{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the prior-yr period of time.”
Cal-Maine Food items dealt with increased expenditures across inputs these as feed, labor, packaging and distribution in the quarter. Farm product expenditures per dozen eggs rose 22{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in contrast to the prior year’s next quarter, primarily since feed fees elevated 30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Cal-Maine Food items expects the HPAI outbreak will keep on to effects the offer of eggs negatively. The duration of the influence will depend in component by how prolonged it can take to replenish the layer hen flock in the United States. The five-12 months typical for the layer hen flock from 2017-21 was about 328 million hens. A LEAP Industry Analytics report issued on Dec. 8, 2022, tasks the layer hen inventory to not exceed 382 million hens right until December 2023.
Around the 1st two quarters of the fiscal year, Cal-Maine Foods had web income of $323.9 million, or $6.66 per share on the prevalent inventory, which when compared with a decline of $16.9 million in the exact same time of the prior 12 months. Web revenue over the to start with two quarters rose 106{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $1.46 billion from $706.7 million.
Futures on Wall Street’s main benchmarks pushed higher in pre-market trading Tuesday following a choppy previous session that saw stocks climb in the final hour to cap the day at six-week highs.
Contracts on the S&P 500 were up 0.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, and the Dow Jones Industrial Average jumped 150 points. Futures tied to the Nasdaq Composite were up 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after the index was buoyed by a comeback in technology stocks during the previous session. Big names in the sector — Tesla, Amazon, and Apple — each rallied during intraday trading Monday following a rough start to the year stoked by a risk-off sentiment amid a liftoff in interest rates by the Federal Reserve.
“Corporate America is in excellent shape — earnings estimates are higher in 2022 now than they were at the start of the year, which is no small feat,” LPL Financial equity strategist Jeff Buchbinder said in a note, adding, however, that the positive outlook was not without risks, particularly around the Fed’s inflation fight. Buchbinder pointed out the S&P 500 registered a 19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} correction when the Federal Reserve last bumped rates up three years ago.
“We saw in 2018 what can happen when the market thinks the central bank is getting too aggressive,” he said. “And certainly we would not dismiss the potential for an escalation of the war in Europe and a broader conflict.”
Also weighing on corporate earnings is a slowdown in economic expansion and a challenging margin environment set forth by wage pressures, supply chain woes, materials and labor shortages, and rising commodity price, LPL Financial noted. These factors could make big earnings upside for companies to achieve and leave valuations to do the heavy lifting — but those valuations may not offer enough support to prop the S&P 500 up to 5,000 at year-end.
“As we see inflation across the board for companies, we expect margins to continue to be under pressure,” Hazen said.
Inflation worries are also mounting for everyday Americans. The Conference Board’s Consumer Confidence Index due for release on Tuesday will show a timely snapshot of their thinking following the latest spike in prices. Economists surveyed by Bloomberg are looking for the index to fall to 107.0 for March following a read of 110.5 last month.
There will also be a new read on labor demand with the Job Openings and Labor Turnover Survey (JOLTS) for February scheduled for release Tuesday morning. Analysts are expecting 11 million vacancies, little changed from January’s 11.26 million openings. The results will jump start a week of fresh jobs data for March, which includes ADP’s private payrolls (out on Wednesday) and the crucial jobs report (Friday).
Investors got some relief on Monday as the CBOE Volatility Index (^VIX), which measures volatility and serves as a gauge of market sentiment, dipped. Wall Street’s “fear index,” better known as the VIX, settled below 20 for the first time since January after hovering at elevated levels in recent weeks.
Meanwhile, oil prices tanked on Monday after Shanghai implemented a lockdown to curb a surge in COVID-19 infections, renewing fears of a slowdown in demand. WTI Crude Oil futures (CL=F) plunged 9.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to settle at around $103 per barrel, recording their biggest drop in two weeks.
The war in Ukraine remains on the radar for investors. The Kremlin said Monday that peace talks between Russia and Ukraine may continue this week when officials from both countries meet in Turkey on Tuesday.
“While we cannot and will not speak about progress at the talks, the fact that they continue to take place in person is important, of course,” Kremlin spokesperson Dmitry Peskov told reporters on a conference call.
Peskov added that no major progress had been made in the talks themselves or the possibility of a face-to-face meeting between Russian President Vladimir Putin and Ukrainian President Volodymyr Zelenskyy.
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7:10 a.m. ET: Stock futures rise ahead of consumer confidence, jobs data
Here were the main moves in markets ahead of Tuesday’s open:
S&P 500 futures (ES=F): +16.00 points (+0.35{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,584.00
Dow futures (YM=F): +132.00 points (+0.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,985.00
Nasdaq futures (NQ=F): +40.75 points (+0.27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,026.00
Crude (CL=F): +$0.88 (+0.83{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $106.84 a barrel
Gold (GC=F): -$28.50 (-1.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,911.30 per ounce
10-year Treasury (^TNX): -0.00 bps to yield 2.477{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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6:16 p.m. ET Monday: Futures open flat after stocks close at 6-week highs
Here’s where the major stock index futures opened Monday evening:
S&P 500 futures (ES=F): +0.25 points (+0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,568.25
Dow futures (YM=F): -14.00 points (-0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 34,839.00
Nasdaq futures (NQ=F): -10.75 points (-0.07{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 14,974.50
Crude (CL=F): -$2.43 (-2.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $103.53 a barrel
Gold (GC=F): -$17.60 (-0.91{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,922.20 per ounce
10-year Treasury (^TNX): -1.5 bps to yield 2.477{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
NEW YORK, NEW YORK – MARCH 28: Traders work on the floor of the New York Stock Exchange (NYSE) on March 28, 2022 in New York City. Following a positive week for stocks, the Dow Industrial Average was down over 100 points in morning trading. (Photo by Spencer Platt/Getty Images)
—
Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Read the latest financial and business news from Yahoo Finance
The Dow Jones Industrial Average set another closing record on Tuesday at 36,799.65 points after upbeat economic data powered the index forward as investors bet on a strong recovery. Tech stocks faltered to drag the Nasdaq down 1.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in its biggest decline since December, and the S&P 500 was mostly unchanged.
Investors mulled a trove of new prints out of Washington, including a fresh read on the ISM Manufacturing Index and the Labor Department’s latest job openings.
Releases from ISM showed manufacturing slowed in December on a cool down in demand for goods, but that supply chain constraints are starting to ease. On the employment side, data showed demand for workers was historically high again in November, with a record 4.5 million Americans quitting their jobs as labor shortages continue to strain employers, though the impact of the latest virus wave has yet to show.
“Looking ahead, the Omicron variant wave will likely lead to some short-term weakness in the labor market,” Sam Bullard, senior economist for Wells Fargo, wrote in a note published earlier this week. “However, we believe this will be temporary and that the pace of hiring should pick back up by the spring.”
Despite a mixed day, markets have made headway overall, picking up right where they left off in a banner 2021 to trade near all time highs into the new year. The pace of that momentum, however, remains at the helm of the Federal Reserve as it gears up for potential rate hikes as soon as this quarter to deal with rising inflation.
Market veteran Jim Bianco of his eponymous firm Bianco Research told Yahoo Finance’s Brian Sozzi in a sit-down interview that the central bank’s measures pose the biggest threat to the red-hot rally in equities.
“I think that is the number one risk right now in 2022,” he said, adding that high inflation is likely to be persistent and can push the Fed hard to do something. “In the process of doing something about it, it puts the rally of the stock market at risk.”
Managing Partner Ted Oakley told Yahoo Finance Live that the Federal Reserve “turned political on us.”
“As soon as the inflation numbers had gone up, I think the administration had pressed them not to worry as much about the market,” he said.
Automakers led headlines on Tuesday, with shares of Ford Motor Company (F) surging more than 11{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in afternoon trading at its highest level in two decades to close at $24.31 after the company said it would nearly double annual production capacity for its popular F-150 Lightning electric pickup to 150,000 vehicles.
The move comes as Ford’s competition with rival General Motors (GM) in the electric vehicle race heats up, with GM set to unveil its own electric truck on Wednesday. GM closed up at a record high of 7.47{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $65.74.
Meanwhile, General Motors was ousted by Japanese carmaker Toyota Motor Corp (T) as the leader in U.S. sales for the first time in nearly a century. Toyota sold 2.332 million vehicles in the United States in 2021, beating 2.218 million for General Motors, the companies reported on Tuesday. GM’s U.S. sales slumped 13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for 2021, while Toyota was up 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Shares of Toyota closed 6.92{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher on Tuesday at $199.19 a piece.
4:01 p.m. ET: Dow powers on to set second-straight closing record
Here’s how market closed out Tuesday’s session:
S&P 500 (^GSPC): -3.03 (-0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,793.53
Dow (^DJI): +214.39 (+0.59{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 36,799.45
Nasdaq (^IXIC): -210.08 (-1.33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,622.72
Crude (CL=F): +$0.95 (+1.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $77.03 a barrel
Gold (GC=F): +$14.70 (+0.82{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,814.80 per ounce
10-year Treasury (^TNX): +4 bps to yield 1.6680{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
Among the most heavily-allocated picks in her portfolio posting declines during the session were Tesla (TSLA), down 3.29{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $1,160.25; Teladoc Health (TDOC), which shed 6.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $89.30, and Zoom Communications (ZM), tumbling 5.69{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to 173.77.
ARKK was down 5.64 in the early afternoon, slumping lower from a challenging 2021 that saw declines for the exchange-traded fund of more than 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
Wood recently promised her strategy could deliver a 40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} compound annual rate of return during the next five years — a projection she later tweaked to a lower, however still-lofty 30{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}-40{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} after criticism of her statement.
Ark Innovation’s top holdings took a beating during intraday trading on Tuesday, positioning the popular ETF managed by Cathie Wood’s Ark invest for a rough start to the new year.
—
11:20 a.m. ET: Apple turns red after reaching $3 trillion milestone
Shares of Apple (AAPL) dipped more than 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during midday trading after the iPhone-maker rallied in Monday’s session toward a $3 trillion market capitalization.
The decline contributed to losses in the Nasdaq as the index pared Monday’s gains to edge 1.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} lower, shedding 280 points.
—
11:07 a.m. ET: Toyota dethrones GM as No. 1 automaker
Japanese carmaker Toyota Motor Corp (T) topped General Motors Co (GM) in U.S. sales last year, unseating the Detroit-based vehicle company as the country’s leader in auto sales for the first time in nearly a century.
Toyota sold 2.332 million vehicles in the United States in 2021, beating 2.218 million for General Motors, the companies reported on Tuesday. GM’s U.S. sales slumped 13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for 2021, while Toyota was up 10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}. In 2020, GM’s U.S. sales totaled 2.55 million, compared with Toyota’s 2.11 million and Ford’s 2.04 million.
Shares of GM were up more than 5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in morning trading to $64.25 a piece. Toyota was up nearly the same amount, trading 4.92{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} higher at $195.45.
—
10:21 a.m. ET: Manufacturing slips amid lower demand for goods
The Institute for Supply Management (ISM) reported its latest index of national factory activity fell in to 58.7 last month, signaling a cooling demand for goods.
December’s print came in below consensus estimates of 60.2 and lower than the previous month’s read of 61.1, according to Bloomberg Data. Readings above 50 indicate an expansion in manufacturing
Meanwhile, data showed that supply chain constraints are starting to ease. The ISM survey’s measure of supplier deliveries declined to 64.9 from 72.2 in November, with prints above 50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} suggesting slower deliveries to factories.
—
10:05 a.m. ET: Job openings hold near a record high
Demand for workers remained historically high in November, pointing to continued labor shortages that have strained employers.
The Department of Labor reported 10.562 million job openings in November in a fresh read out Tuesday on its Labor Turnover Summary (JOLTS).The figure came in below October’s print of 11.033, based on the government’s first estimate for the month. Consensus economist estimates pointed to a 11.079 million in November, according to Bloomberg data.
The data does not yet meaningfully capture the impact of rising cases of COVID on employment in the latest wave of the virus. Some economists suggested labor shortages may be worsened in the near-term due to the latest surge.
“Looking ahead, the Omicron variant wave will likely lead to some short-term weakness in the labor market,” Sam Bullard, senior economist for Wells Fargo, wrote in a note published earlier this week. “However, we believe this will be temporary and that the pace of hiring should pick back up by the spring.”
—
9:54 a.m. ET: Ford gets a move on EV truck production
Ford Motor Company (F) plans to nearly double annual production capacity for its popular F-150 Lightning electric pickup to 150,000 vehicles to keep up with a surge in demand ahead of its arrival at U.S. dealers this spring, the company said on Tuesday.
The model has attracted nearly 200,000 reservations already, far outpacing the automaker’s initial production capacity for 70,000-80,000 vehicles.
Ford’s announcement comes as its electric truck vehicle race heats up with competitor General Motors Co (GM), which is scheduled to unveil the Chevrolet Silverado electric pickup on Wednesday set to go on sale in early 2023.
Shares of Ford climbed 6.64{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} at open to $23.22 a piece. Rival GM was also up 2.56{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} to $63.73 per share.
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9:30 a.m. ET: Markets charge forward into second straight day of gains
Here’s what happened in the markets at the start of the day’s trading session:
S&P 500 (^GSPC): +15.07 (+0.31{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,811.63
Dow (^DJI): +182.71 (+0.50{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 36,767.77
Nasdaq (^IXIC): +4.23 (+0.03{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,837.03
Crude (CL=F): +$0.47 (+0.62{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $76.55 a barrel
Gold (GC=F): +$8.30 (+0.46{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,808.40 per ounce
10-year Treasury (^TNX): +4.4 bps to yield 1.6720{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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7:33 a.m. ET: Stock futures point to continued gains
Here’s how contracts on the major indexes fared before market open:
S&P 500futures (ES=F): +17.00 points (+0.36{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,803.00
Dow futures (YM=F): +120.00 points (+0.33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 36,575.00
Nasdaq futures (NQ=F): +52.50 points (+0.32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,538.00
Crude (CL=F): +$0.11 (+0.14{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $76.19 a barrel
Gold (GC=F): +1.10 (+0.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,801.20 per ounce
10-year Treasury (^TNX): 1.628 bps to yield 0.00{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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6:02 p.m. Monday ET: Stock futures quietly open after record-setting session
Here were the main moves in markets heading into the overnight session:
S&P 500futures (ES=F): -0.50 points (-0.01{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,785.50
Dow futures (YM=F): -29.00 points (-0.08{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 36,426.00
Nasdaq futures (NQ=F): +16.25 points (+0.10{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 16,501.75
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
Read the latest financial and business news from Yahoo Finance
Stocks reached fresh all-time highs on Tuesday in another record-setting session, with investors cheering another set of better-than-expected corporate earnings results.
The Dow and S&P 500 gained while the Nasdaq rose more modestly, weighed by a drop in Tesla (TSLA) after CEO Elon Musk downplayed the expected impact of a deal with car rental giant Hertz. Investors watched with optimism as more corporate earnings results exceeded expectations and defied concerns over ongoing supply chain constraints, shortages and cost pressures.
Clorox (CLX) became one of the latest major names to top estimates in results posted Monday after the closing bell, with the cleaning supplies and home goods company topping third-quarter sales and profits estimates and reaffirming its full-year guidance even as the company said it expects “cost pressures to persist.” Shares of Avis (CAR) and Simon Property Group (SPG) also jumped, with both of these companies posting quarterly earnings that exceeded expectations after market close.
Heading into this week, the expected earnings growth rate for the S&P 500 was at 36.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} for the third quarter, which while a step down from the second quarter’s rate, would still mark the third-highest pace in data spanning back to 2010, according to FactSet.
“I don’t think what’s going on is terribly surprising,” when it comes to the sizable year-over-year earnings growth many companies have reported for the third quarter, Pacer ETF’s President Sean O’Hara told Yahoo Finance Live. “I think what we need to see going forward is, is it sustainable, or are some of these outside factors going to be a bigger challenge than we expect?”
“Is inflation and the input costs that the producers are dealing with, is that going to derail things? Is the lack of workers?” he added. “There’re a lot of things out there that could potentially derail the market, especially as you’re making this transition from where we are, which is easy comparables versus last year, to more difficult ones going forward.”
In addition to the solid backdrop of corporate earnings, an ongoing economic recovery and still-accommodative positioning by monetary policymakers have also helped underpin equities in their march to new highs. For investors, the Federal Reserve’s latest monetary policy decision on Wednesday will help suggest how long the central bank will maintain its current levels of support. Many pundits expect to see the bank begin to pull back the asset purchases that comprised its quantitative easing program that had helped support the recovery, with fresh economic data reflecting a U.S. economy closing in on pre-pandemic conditions.
“We think that better days are ahead. Earnings are still growing at a pretty healthy clip. There’s a lot of people focusing on peak growth rates. That’s probably not the way to look at it,” Sameer Samana, Wells Fargo senior global market strategist, told Yahoo Finance Live. “From our standpoint, those low interest rates, still stimulative policy and really strong growth are what set the stage for strong equities in the next year.”
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4:05 p.m. ET: S&P 500, Dow and Nasdaq rise to reach fresh all-time highs; markets await Fed decision
Here were the main moves in markets as of 4:05 p.m. ET:
S&P 500 (^GSPC): +16.98 (+0.37{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,630.65
Dow (^DJI): +138.79 (+0.39{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 36,052.63
Nasdaq (^IXIC): +53.69 (+0.34{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,649.60
Crude (CL=F): -$0.55 (-0.65{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $83.50 a barrel
Gold (GC=F): -$6.90 (-0.38{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,788.90 per ounce
10-year Treasury (^TNX): -2.6 bps to yield 1.5490{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
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12:36 p.m. ET: Residential rental vacancy rate dips in 3Q to near pre-pandemic levels
The U.S. vacancy rate for rental housing fell in the third quarter to close in on pre-pandemic levels.
Rental vacancies reached 5.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the three months ending in September, marking the lowest level since the second-quarter of 2020. This fell by 6.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} compared to the second quarter and from 6.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the same period last year.
Rent prices have also been increasingly notably over the course of the past year, with the median asking rent for vacant units rising to $1,203 in the third quarter from $1,160 a year earlier. And in the Bureau of Labor Statistics’ consumer price index, rent of primary residence prices last increased by 0.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in September compared to August, accelerating from a rise of 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} during the prior month.
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11:35 a.m. ET: Avis shares surge, triggering volatility halt after 3Q estimates point to strong car-rental demand
Shares of Avis (CAR) more than doubled on Tuesday alone after the car-rental company posted third-quarter estimates that far exceeded consensus estimates, pointing to solid demand for rentals.
At session highs on Tuesday, the stock more than tripled to reach a record $545.11 per share. This outsized move to the upside triggered at least one volatility halt in the stock. Third-quarter net revenue nearly doubled over last year to reach $3 billion, and adjusted earnings per share of $10.74 were much better than the $7.24 expected. The company also said it would add more electric vehicles to its fleet over time during its quarterly earnings call with analysts.
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11:27 a.m. ET: Chegg shares plunge after lowering guidance, with company saying ‘education industry is experiencing a slowdown’
Shares of education company Chegg (CHGG) sank 45{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} Tuesday morning after the company lowered its full-year guidance and highlighted a slowdown in the broader higher education industry.
For the third quarter. Chegg reported revenue of $171.94 million, which missed expectations for $174 million, according to Bloomberg consensus data. The firm also lowered its forecast for both revenue and adjusted EBITDA for the full year, and now sees revenue coming in at as much as $764 million, versus the as much as $815 million seen previously.
“In late September it became clear to us that the education industry is experiencing a slowdown that we believe is temporary and is a direct result of the Covid-19 pandemic,” CEO Dan Rosensweig said in prepared remarks for the company’s earnings call.
“A combination of variants, increased employment opportunities and compensation, along with fatigue, have all led to significantly fewer enrollments than expected this semester,” he added. And those students who have enrolled are taking fewer and less rigorous classes and are receiving less graded assignments”
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9:42 a.m. ET: Tesla gives back some gains as Musk plays down Hertz deal
The carmaker’s high-flying stock is under pressure in early trading, after Elon Musk tweeted that Tesla has not yet signed on the dotted line with Hertz, which announced a deal last week to add Model 3s to its fleet of rentals. Musk also stated that regardless, the deal would have “zero impact” on Tesla’s bottom line.
But Hertz said it’s already receiving cars under its plan to add 100,000 Tesla EVs through 2022, but didn’t respond directly to Musk’s remark:
As we announced last week, Hertz has made an initial order of 100,000 Tesla electric vehicles by the end of 2022 and is investing in new EV charging infrastructure across the company’s global operations. Deliveries of the Teslas already have started, and consumer reaction to our commitment to lead in electrification has been beyond our expectations.
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9:30 a.m. ET: Stocks open flat ahead of the Fed
Here were the main moves in markets as of 9:30 a.m. ET:
Stocks ended at records on Friday as investors digested disappointing earnings results from Apple (AAPL) and Amazon (AMZN) that came during an otherwise solid quarterly reporting season from many major companies.
The S&P 500 set record intraday and closing highs. The index posted monthly gain of more than 6.5{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October, or its best single-month advance since November 2020. The consumer discretionary, energy and information technology sectors outperformed during the month.
The Nasdaq also eked out a fresh record level, even as a couple of heavily weighted technology giants saw shares dip.
Amazon shares dropped after the e-commerce juggernaut missed third-quarter expectations and forecasted a jump in expenses in the fourth quarter due to supply chain disruptions and rising costs for labor, materials and freight. These factors are expected to generate “several billion dollars of additional costs” to Amazon in the current quarter, the company said in its earnings statement.
Peer tech giant Apple also disappointed Wall Street in its fiscal first-quarter results, with key iPhone sales missing expectations even following the launch of its latest iPhone 13 handset series. Shares of Apple’s suppliers including Taiwan Semiconductor Manufacturing Co. (TSM), Qualcomm (QCOM) and Broadcom (AVGO) also fell immediately following the results.
For Wall Street, the results appeared to vindicate concerns that mounting supply chain disruptions, labor costs and materials shortages were impacting companies of all sizes heading into the holiday season, and were creating challenges for corporations to keep pace with rising demand.
And for Apple, Amazon and some other technology companies, investors have been additionally fearful that these key members of last year’s lucrative “stay-at-home” trade would be unable to maintain lofty growth rates following a pandemic-induced surge in their businesses. Amazon’s sales grew 15{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in the third quarter, slowing down markedly from 27{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rate in the second quarter.
“I will agree, they are overvalued,” Rebecca Felton, Riverfront Investment Group senior market strategist, told Yahoo Finance Live about technology companies on Thursday. “But remember valuation is a condition, not a catalyst. And the catalyst I think for technology is going to be the consistency both on the top and bottom line.”
Meanwhile, investors continued to digest a mixed batch of economic data results, which included a weaker-than-expected print on third-quarter gross domestic product. The report, while comprehensive in scope, still offered an only backwards-looking view of state of the economy. Some pundits suggested economic activity had already begun to pick up, helping to underpin companies’ performance into the final months of the year and equity prices.
“I still think the best is yet to come,” Heritage Capital President Paul Schatz told Yahoo Finance on Thursday. “GDP for Q3 is going to be a trough. We’re going to have much stronger growth in Q4 and Q1 of next year, inflation is going to peak in the next six months, supply chain issues strongly moderate by early Q2 of next year. And this rising tide is going to lift most ships.”
“The economically sensitive trade, whatever you want to call it — reopening, reflation, inflation — that trade is very alive, very well and it’s not over,” he added.
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4:03 p.m. ET: Stocks end at records, S&P 500 posts best monthly advance since Nov. 2020
Here’s where markets closed out Friday’s session:
S&P 500 (^GSPC): +8.96 (+0.19{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,605.38
Dow (^DJI): +89.01 (+0.25{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,819.49
Nasdaq (^IXIC): +50.27 (+0.33{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,498.39
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2:39 p.m. ET: Microsoft overtakes Apple as most highly valued stock in the U.S. by market cap
Microsoft (MSFT) shares jumped on Friday, sending the stock’s market capitalization above that of Apple and making it the most valuable stock in the U.S.
The Redmond, Washington-based company was the best performer in the Dow on Friday, extending gains after reporting better-than-expected quarterly results earlier this week as its Microsoft Azure cloud unit surged in growth yet again. As of Friday afternoon, Microsoft’s market capitalization was hovering at $2.478 trillion, versus Apple’s $2.466 trillion, based on Yahoo Finance data.
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12:30 p.m. ET: S&P 500, Nasdaq turn higher to jump to record intraday highs
Stocks reversed course to push into positive territory in afternoon trading, led by gains in the communication services and health-care sectors in the S&P 500. The Dow reversed earlier losses of as many as 97 points to rise by more than 110 points, or 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}.
The Nasdaq Composite and Nasdaq 100 also each eked out intraday records despite drops in heavily weighted technology stocks Amazon and Apple.
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9:31 a.m. ET: Stocks drop as tech shares lag
Here’s where markets were trading just after the opening bell:
S&P 500 (^GSPC): -23.57 (-0.51{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 4,572.85
Dow (^DJI): -15.81 (-0.04{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 35,714.67
Nasdaq (^IXIC): -111.67 (-0.72{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,339.63
Crude (CL=F): -$0.72 (-0.87{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $82.09 a barrel
Gold (GC=F): -$21.60 (-1.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,781.00 per ounce
10-year Treasury (^TNX): +2.9 bps to yield 1.598{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
—
8:41 a.m. ET: Core PCE inflation rose 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in September over last year, matching August’s rate
The Federal Reserve’s preferred measure of inflation rose at the expected annual rate in September, holding at an elevated level on a historical basis but averting an expected acceleration.
Core personal consumption expenditures, which capture underlying price changes and exclude volatile food and energy prices, rose 3.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in September over last year, the Bureau of Economic Analysis said Friday. This was in-line with the expected rate of change, according to Bloomberg data, and matched the prior month’s gain.
On a month-over-month basis, the core PCE rose 0.2{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, slowing slightly from August’s 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} rise.
The broadest measure of personal consumption expenditures rose 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in September compared to August and 4.4{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in September over last year. Both of these metrics matched expectations.
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8:33 a.m. ET: Personal income drops more than expected in September while spending meets estimates
Personal income posted a larger than expected monthly decline in September as stimulus from more government crisis-relief programs waned. Spending, however, rose in-line with estimates.
U.S. consumer income fell 1.0{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in September compared to August, the Bureau of Economic Analysis said on Friday. This was bigger than the 0.3{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} decline expected, according to Bloomberg consensus data. The Bureau of Economic Analysis noted that the end of enhanced federal unemployment benefits in early September was one major factor contributing to the drop.
Spending, meanwhile, rose at a 0.6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} clip, matching expectations. This followed a 0.8{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} monthly rise in consumer spending in August.
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7:22 a.m. ET Friday: Stock futures fall, with Apple, Amazon weighing on Nasdaq
Here’s where markets were trading ahead of the opening bell:
S&P 500 futures (ES=F): -22.25 points (-0.49{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,565.25
Dow futures (YM=F): -42 points (-0.12{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,571.00
Nasdaq futures (NQ=F): -137.00 points (-0.87{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,627.75
Crude (CL=F): +$0.20 (+0.24{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $83.01 a barrel
Gold (GC=F): -$5.80 (-0.32{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to $1,796.80 per ounce
10-year Treasury (^TNX): +3.4 bps to yield 1.603{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}
NEW YORK, NEW YORK – SEPTEMBER 30: Traders work on the floor of the New York Stock Exchange (NYSE) on September 30, 2021 in New York City. In afternoon trading the Dow was down over 250 points as investors continue to worry about inflation, wages and supply chain issues. (Photo by Spencer Platt/Getty Images)
Inventory futures opened a bit larger Monday evening, steadying near record degrees as buyers awaited one more hefty set of earnings and financial data.
The S&P 500 and Dow had each achieved all-time highs during Monday’s session, with equity buyers proving resilient even in the encounter of ongoing source chain challenges and elevated inflationary pressures.
The Nasdaq Composite jumped by .9{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}, coming within just 1{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} of its very own file closing superior as shares of Tesla (TSLA) rallied for a fourth straight session, bringing the stock’s sector capitalization above $1 trillion for the to start with time. Engineering shares also obtained broadly as investors awaited earnings final results from the likes of Alphabet (GOOGL), Twitter (TWTR) and Sophisticated Micro Devices (AMD) on Tuesday, and other tech heavyweights like Amazon (AMZN) and Apple (AAPL) later on this 7 days.
Fb (FB) shares attained in late investing even soon after the organization posted mixed third-quarter benefits and profits assistance that skipped expectations. The social media big also reported it would be shifting its reporting structure to break out Facebook Actuality Labs in its very own separate segment, next the firm’s enough financial commitment in creating out its digital fact products and solutions and metaverse. It observed it envisioned investment decision in Fb Actuality Labs to reduce total working gain by about $10 billion this year.
Shares have jumped so significantly in Oct as investors at least quickly shook off problems around increasing input and labor fees, and popular shortages, for organizations across a wide selection of industries. Even specified these pressures, quite a few providers have managed to exceed Wall Street’s earnings anticipations in their most up-to-date quarterly benefits, which largely reflected companies’ skills to take in or move on heightened expenses at minimum for the time remaining.
With earnings rolling in this month, the S&P 500 has so much obtained 6{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} in October, and is heading for its most effective thirty day period considering that November 2020.
“The S&P 500 Index has obtained more than 20{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a} so far this 12 months, generating extra than 50 record highs alongside the way. Certainly no person really should be upset with that return if that was all 2021 brought us,” Ryan Detrick, Chief Marketplace Strategist for LPL Economical, wrote in an electronic mail. “Having said that, we see indications that there could be much more gains to occur in the last two months of the calendar year.”
“Seasonal tailwinds, increasing market internals, and crystal clear signs of a peak in the Delta variant all present potential fuel for equities heading into calendar year-conclusion, and we retain our over weight equities recommendation as a end result,” he additional.
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6:03 p.m. ET Monday: Stock futures tick up
This is the place marketplaces were investing as the right away session kicked off:
S&P 500 futures (ES=F): +6 details (+.13{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 4,564.00
Dow futures (YM=F): +22 details (+.06{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}), to 35,642.00
Nasdaq futures (NQ=F): +33 factors (+.21{1b90e59fe8a6c14b55fbbae1d9373c165823754d058ebf80beecafc6dee5063a}) to 15,528.75
Traders do the job on the floor of the New York Stock Exchange (NYSE) in New York Metropolis, U.S., Oct 18, 2021. REUTERS/Brendan McDermid
