A trader works connected the level of the New York Stock Exchange successful New York, US, connected Friday, Aug. 23, 2024.
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Stock futures ticked higher Thursday nighttime arsenic investors prepared for a important ostentation speechmaking that's intimately watched by the Federal Reserve.
Futures tied to the Dow Jones Industrial Average precocious 19 points, oregon 0.05%. S&P 500 futures gained 0.1%, portion Nasdaq 100 futures added 0.2%.
In extended trading, Ulta dropped astir 7% aft missing apical and bottommost enactment expectations in the 2nd quarter, portion diversion apparel retailer Lululemon Athletica gained 6% connected better-than-expected earnings. Dell Technologies added 3% arsenic its fiscal 2nd 4th results bushed estimates, aided by server sales.
The marketplace has seen choppy trading enactment this week starring up to Nvidia's quarterly results. The artificial quality darling slumped connected Thursday, weighing connected the S&P 500 and dragging the Nasdaq Composite lower. The Dow was the outlier among the 3 large averages, adding much than 240 points to adjacent astatine a caller record.
A caller catalyst for stocks awaits connected Friday astatine 8:30 a.m. ET: the personal depletion expenditures terms index. Economists polled by Dow Jones expect a 0.2% monthly summation successful July for header prices, oregon 2.5% connected an yearly basis. The halfway speechmaking is expected to person gained 0.2% from the anterior month, oregon 2.7% from 12 months earlier.
The Fed keeps a adjacent oculus connected this metric, and it could inactive power policymakers' complaint determination successful September.
"The marketplace is acceptable to sorb the results of the PCE release, with statement estimates focused connected the halfway year-over-year study inching somewhat higher astatine 2.7% pursuing 2.6% for the erstwhile print," said LPL Financial's main planetary strategist Quincy Krosby.
"Because determination are immoderate Fed members suggesting they request much information to corroborate that ostentation is continuing connected a downward way earlier agreeing to chopped rates, immoderate astonishment indicating a hotter study could beryllium antagonistic for the market," she added.
As August's trading winds down, the S&P 500 is connected gait for a astir 1.3% gain, portion the Dow is connected way to adhd 1.2%. The Nasdaq Composite is the sole loser of the 3 large averages, disconnected by astir 0.5% this month.
On the week, the S&P 500 and the Nasdaq are connected gait for declines of 0.8% and 2%, respectively — the archetypal losing week successful 3 for some indexes. The Dow is connected gait for its 3rd affirmative week, up 0.4% successful the period.
Rate cuts could payment large-cap slope stocks for the archetypal 3 months, Wells Fargo says
Large-cap slope stocks could spot a boost done twelvemonth extremity from an involvement complaint cut, according to Wells Fargo.
More specifically, the slope wrote that complaint cuts that coincide with nary recession person typically led to slope stocks rallying aft initially declining by 6% successful the archetypal 1 oregon 2 weeks.
"While we admit that historically, slope stocks person sold disconnected for a abbreviated play pursuing the archetypal complaint cut, banks tin outperform successful a brushed landing scenario, expanding 21% from the post-cut low, based connected information from complaint chopped cycles successful 1995, 1998 and 2019 (pre-COVID)," Wells Fargo expert Mike Mayo wrote. "We estimation banks outperformed the S&P 500 by astir 10% from trough to highest during the 4th pursuing the archetypal complaint chopped (next Fed gathering 9/17-18)."
— Lisa Kailai Han
Ugly income figures from Lululemon and Ulta Beauty
Lululemon's net per stock bushed expectations by a coagulated 22 cents.
The athleisure apparel retailer seemed to clasp the enactment connected pricing, which benefited nett margins successful the latest quarter. But that strategy mightiness person travel astatine the outgo of income volumes.
Lululemon posted its first gross miss since March 2022 and same-store income lone roseate 2% — a fraction of the 5.9% expected by Wall Street. A large occupation was the slump successful North America, which has seen important income deceleration successful caller quarters. Same-store income successful the portion person present gone from up 7% successful the 4th fourth of past twelvemonth to level successful the archetypal 4th of this twelvemonth to present down 3% successful the latest quarter. Revenue guidance for some the 3rd 4th and the afloat twelvemonth are besides weak.
And there's small quality in Ulta's results this afternoon. The cosmetics retailer posted its archetypal net miss since May 2020 and its archetypal gross miss since December 2020. Its same-store income fell 1.2%, portion Wall Street expected a 1.2% gain. Traffic dropped astir 2%. The institution besides slashed its afloat twelvemonth earnings, gross and same-store income guidance – each of which are beneath statement estimates. The institution present expects a same-store income diminution of up to 2% this year, portion analysts projected a 2% rise.
— Robert Hum
English (US) ·