STOCK MARKET NEWS: Dow, S&P, Nasdaq post August losses, ADP jobs weak, Sam’s Club hikes fees
Bed Bath & Beyond turnaround plan includes job cuts, ADP’s employment report is back as more companies plan layoffs. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
Coverage for this event has ended.
The logo of technology company Nvidia is seen at its headquarters in Santa Clara, California February 11, 2015. (REUTERS/Robert Galbraith)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| NVDA | $151.77 | -2.91 | -1.88 |
Chip designer Nvidia Corp on Wednesday said that U.S. officials have ordered it to cease exporting two of its top computing chips for artificial intelligence work to China, hampering a business that accounted for $400 million in sales in the current quarter.
Nvidia said the ban, which affects its A100 and H100 chips designed to speed up machine learning tasks, could interfere with the completion of developing the H100, the company's flagship chip announced earlier this year. The disclosure sent share down about 3% in after-hours trading.
The announcement signals a major escalation of the technology tensions between the United States and China. Without American chips from companies like Nvidia and its rival Advanced Micro Devices , Chinese organizations will be unable to cost-effectively carry out the kind of advanced computing used image and speech recognition, among many other tasks.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| FIVE | $127.88 | -1.66 | -1.28 |
Five Below Inc. on Wednesday reported fiscal second-quarter profit of $41.3 million.
On a per-share basis, the Philadelphia-based company said it had profit of 74 cents.
The results fell short of Wall Street expectations. The average estimate of nine analysts surveyed by Zacks Investment Research was for earnings of 77 cents per share.
The discount retailer posted revenue of $668.9 million in the period, also missing Street forecasts. Eight analysts surveyed by Zacks expected $679.8 million.
For the current quarter ending in October, Five Below said it expects revenue in the range of $600 million to $619 million. Analysts surveyed by Zacks had expected revenue of $634.1 million.
The company expects full-year earnings to be $4.26 to $4.56 per share, with revenue ranging from $2.97 billion to $3.02 billion.
Cinderella's Castle at the Magic Kingdom at Walt Disney World. (FOX News Digital)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| AMZN | $126.77 | -1.96 | -1.52 |
| DIS | $112.08 | -0.35 | -0.31 |
Wall Disney is reportedly exploring an Amazon Prime type membership program, The Wall Street Journal reports.
The program known internally by some executives as “Disney Prime” aims to encourage members to spend more on Disney programs and services.
The report did not mention what types of benefits would be offered, noting discussions are in early days.
Disney already offers its more ardent followers the D23 Official Fan Club. For $99.99 to $129.99 per year, members get exclusive access to events and merchandise.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| NTNX | $17.30 | -0.82 | -4.53 |
Nutanix is higher in extended trading. The cloud software provider topped Wall Street revenue estimates.
Fiscal fourth quarter revenue fell 1% to $385.5 million. Analysts expected $354.9 million. Annual recurring revenue grew 37% to $1.20 billion.
“Our Fiscal 2022 results reflect strong progress on our subscription model with 27% year-over-year ACV billings growth and achievement of positive free cash flow, which we expect to be sustainable on an annual basis,” said CFO Rukmini Sivaraman.
The net loss narrowed for the three months ended July 31 to $151 million from $385.2 million.
For fiscal 2023 the company sees revenue of $1.77 - $1.78 billion.
Cleveland Federal Reserve President Loretta Mester said Wednesday that central bank policymakers need to raise the benchmark interest rate considerably higher and leave it elevated for some time until inflation starts to cool.
Mester, a voting member of the policy-setting Federal Open Market Committee, predicted that interest rates will rise above 4% by the beginning of 2023.
"My current view is that it will be necessary to move the fed funds rate up to somewhat above 4% by early next year and hold it there," Mester said Wednesday in remarks prepared for an event organized by the Dayton Area Chamber of Commerce. "I do not anticipate the Fed cutting the fed funds rate target next year."
U.S. stocks fell across the board on Wednesday as investors wrap up a losing month. For August, the Dow Jones Industrial Average, the S&P 500 and the Nasdaq Composite posted losses over 4% a piece, the worst August performance since 2015. In commodities, oil dipped over 12% for the month to $96.49 per barrel.
DJIA: -4.1%
Nasdaq: -4.6%
S&P 500: -4.2%
EXCLUSIVE: A bipartisan coalition of 37 state attorneys general is asking Congress to take action allowing enhanced consumer protections for airline customers, saying the industry is not being held accountable for growing complaints from travelers.
In a letter sent Wednesday and viewed exclusively by FOX Business, the National Association of Attorneys General told congressional leadership that "the airline industry has failed their customers" and asked for federal lawmakers to allow states greater authority to step in and address violations of consumers' rights.
JetBlue airliner lands past a Spirit Airlines at Fort Lauderdale Hollywood International Airport, Monday, April 25, 2022. (Joe Cavaretta/Sun Sentinel/Tribune News Service via Getty Images)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| JBLU | $7.91 | -0.12 | -1.43 |
| SAVE | $22.82 | 0.12 | 0.53 |
The chief executive of JetBlue says its takeover of Spirit Airlines will create more jobs.
In a message to Spirit employees , JetBlue CEO Robin Hayes said: “With a big order book and lots of travel demand, there will be more jobs — not fewer — as we continue to grow."
He noted JetBlue has never furloughed any crewmember.
Hayes also said the combined air carrier will strengthen its Florida footprint: “Your new headquarters in Dania Beach will become a vital part of our support center and training center footprint — so support center team members will not be required to move to our New York office.”
He anticipates regulators will approve the combination no later than the first half of 2024. Until then the airlines will operate as independent companies.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| DAL | $31.64 | -0.08 | -0.25 |
| AFLYY | $1.49 | -0.00 | -0.13 |
| DLAKY | $5.98 | 0.04 | 0.67 |
Italy has picked a group led by U.S. private equity fund Certares, backed by Air France-KLM and Delta Air Lines Inc, for exclusive talks on buying a majority stake in ITA Airways.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| CHPT | $16.24 | 1.75 | 12.08 |
ChargePoint jumped more than 16% Wednesday before retreating. The electric vehicle charging company topped Wall Street revenue and profit estimates.
Fiscal second quarter revenue rose 93% to $108.3 million from a year ago. Analysts expected $104 million. Networked charging systems revenue was up 106%. Subscription revenue grew 68%.
The net loss for the three months ended July 31 was $92.7 million, as compared to $84.9 million in the prior year's same quarter.
The adjusted loss per share was 18 cents, better than the expected loss of 22 cents.
For the third fiscal quarter ending October 31, ChargePoint expects revenue of $125 million to $135 million. At the midpoint, this represents an anticipated increase of 100% as compared to the prior year’s same quarter.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BHC | $5.93 | 0.81 | 15.82 |
Bausch Health spiked more than 20% in Wednesday trading before giving back some gains. The maker of health care products announced offers to exchange up $4 billion of bonds for between 44 to 72 cents on the dollar.
The company is struggling with debt. Total long-term and other debt at June 30 totaled $22.1 billion.
The exchanges will push out the maturity dates of some notes coming due from 2025 to 2027 into 2028 and 2030.
As of the announcement, holders of about 22.8% of the existing notes had agreed to tender all their existing notes, Standard and Poor’s said. The agency downgraded Bausch Health’s credit rating on the announcement.
The offers expire at 11:59 p.m., New York City time on September 27, 2022
| Symbol | Price | Change | %Change |
|---|---|---|---|
| VRA | $4.05 | -0.40 | -8.99 |
Vera Bradley Inc. (VRA) on Wednesday reported a loss of $29.8 million in its fiscal second quarter.
The Roanoke, Indiana-based company said it had a loss of 95 cents per share. Earnings, adjusted for non-recurring costs, came to 8 cents per share.
The results fell short of Wall Street expectations. The average estimate of four analysts surveyed by Zacks Investment Research was for earnings of 13 cents per share.
The handbag and accessories company posted revenue of $130.4 million in the period, which also did not meet Street forecasts. Three analysts surveyed by Zacks expected $131.7 million.
Vera Bradley expects full-year earnings to be 20 cents to 28 cents per share, with revenue in the range of $480 million to $490 million.
A vial and prepared doses of the Pfizer-BioNTech Covid-19 vaccine, Cape Town, South Africa, Tuesday, Nov. 30, 2021. (Dwayne Senior/Bloomberg via Getty Images)
| Symbol | Price | Change | %Change |
|---|---|---|---|
| MRNA | $139.24 | 3.31 | 2.44 |
| PFE | $46.18 | 0.33 | 0.72 |
| BNTX | $150.10 | 3.02 | 2.05 |
The Food and Drug Administration has authorized Moderna and Pfizer-BioNTech Omicron vaccines as a single COVID-19 booster dose.
The updated Moderna vaccine can be given to people age 18 or older at least two months following primary or booster vaccination.
The new Pfizer-BioNTech COVID-19 vaccine, Bivalent, is authorized for use as a single booster dose in individuals 12 years of age and older.
The updated shots contain two messenger RNA (mRNA) components of SARS-CoV-2 virus, one of the original strain of SARS-CoV-2 and the other one in common between the BA.4 and BA.5 lineages of the omicron variant of SARS-CoV-2.
U.S. stocks struggled to find direction as investors digested ADP’s monthly jobs report which fell short of estimates. Additionally, Bed Bath & Beyond and Snap are slashing workers. In commodities, oil fell over 1% to the $90 per barrel level.
For the month, which wraps today, the Dow Jones Industrial Average, S&P 500 and Nasdaq Composite will post losses.
| Symbol | Price | Change | %Change |
|---|---|---|---|
| BBBY | $12.11 | -1.24 | -9.29 |
| SNAP | $10.01 | -0.26 | -2.53 |
ADP's widely watched monthly employment report, often seen as pre-cursor to the Labor Department's data, is back after a summer haitius.
The report, which includes fresh metrics including median annual pay growth, fell short of expectations.
A Bed Bath and Beyond store
Bed Bath & Beyond said in a regulatory filing on Wednesday that the retailer could offer shares of its common stock, sending the stock down as much as 20% in premarket trading.
The size of the potential stock offering was not disclosed.
The news comes shortly before the company is expected to detail its turnaround plans on Wednesday.
Once known for providing many shoppers with 20%-off coupons, Bed Bath & Beyond overhauled its merchandise in recent years to focus on own-brand, or private-label, products including its Our Table brand cookware. But the retailer's strategy flopped. Sales plunged 25%, and it lost $358 million in its first quarter ended May 28.
Read the full story: Bed Bath & Beyond discloses stock offering plan ahead of strategy update
Lawmakers on Capitol Hill are looking into what is being done to prevent cryptocurrency fraud.
A House oversight subcommittee asked regulators and industry leaders to explain what they are doing to stop it along with other scams against consumers.
The issue was brought up by Illinois Rep. Raja Krishnamoorthi, head of the Economic and Consumer Policy subcommittee.
He asked leaders of the Treasury Department, Securities and Exchange Commission, Commodity Futures Trading Commission, and Federal Trade Commission for more information on the steps they are taking to curb consumer abuse linked to cryptocurrencies.
In March, President Biden issued an executive order calling for several agencies to look at ways to regulate digital assets and gave them 180 days to do so.
For more on the story, click here: Cryptocurrency fraud prevention: House panel calls on regulators to explain how they're protecting consumers
The national average price for a gallon of regular gas remains at $3.84, falling less than a penny from yesterday’s price, according to data from the Oil Price Information Service (OPIS).
Regular gas has fallen four cents from last week and nearly 40 cents from last month.
Regular, Mid-Grade, and Premium each saw a modest decrease from Tuesday while Diesel gas saw a 1-cent increase.
The current average price of gas sits at: $3.84 per gallon for Regular; $4.27 per gallon for Mid-Grade; $4.58 per gallon for Premium; and, $5.08 for Diesel.
Hawaii and California have the most expensive average price, at $5.30 and $5.26 respectively, while Arkansas ($3.34), Mississippi ($3.36) and Texas ($3.36) remain the lowest.
Bitcoin was trading around $20,000, after trading lower in five of the last six days. Bitcoin is down more than 7% in the past week.
For the month, the cryptocurrency is down more tan 16%. Year-to-date, bitcoin is down more than 56%.
Ethereum was trading around $1,500, trading down more than 8% in the past week. Dogecoin was trading at 6 cents after trading down more than 10% in the past week.
Cruise ship anchored off the shore of Grand Cayman Island, Royal Caribbean Caribbean cruise liner, Mariner of the Sea and Carnival Cruise Liner, turning to return to sea. (MyLoupe/Universal Images Group via Getty Images)
Royal Caribbean Group will now allow those who work remotely to take their work on cruise ships as they have adopted SpaceX’s Starlink internet technology, a first in the cruise industry.
The "high-speed, low-latency connectivity" will allow "for a better onboard experience for guests and crew fleetwide," the Group said in a statement Tuesday.
"Our purpose as a company is to deliver the best vacation experiences to our guests responsibly, and this new offering, which is the biggest public deployment of Starlink’s high-speed internet in the travel industry so far, demonstrates our commitment to that purpose," said Jason Liberty, president and chief executive officer of Royal Caribbean Group.
He added: "This technology will provide game-changing internet connectivity onboard our ships, enhancing the cruise experience for guests and crew alike. It will improve and enable more high-bandwidth activities like video streaming as well as activities like video calls. Using Starlink is one more example of our continued focus on innovation and excellence for our guests, our crew, the communities we visit and our shareholders."
Read more on the story: Royal Caribbean's new partnership with SpaceX's Starlink opens possibility to work remotely on cruise ships
Beauty brand Ulta found itself apologizing Monday for a tragic gaffe. (Brian Cassella/Chicago Tribune/Tribune News Service via Getty Images)
Inflation is eating away at Americans' paychecks and forcing them to trade down in order to stretch their dollars, but strong demand for beauty products shows consumers are still spending on their looks.
With sales on the rise, companies are jockeying for position, and an increasing number are leaning into the beauty space for a piece of the action.
Unlike in other retail categories, such as groceries, where customers are increasingly switching to off brands as their budgets are squeezed, some beauty companies say they haven't noticed a change in consumer activity.
A slew of firms across the industry showed strong results last quarter, with Ulta Beauty reporting a 16.8% year-over-year increase in net sales to $2.3 billion. Cosmetic brand e.l.f. Beauty posted a 26% increase to $122.6 million.
Read more on the story by clicking here: Strong demand for beauty products sparks scramble for market share
This illustration picture taken on 15 January 2021 shows the Snapchat logo in front of the silhouette of a hand holding a smartphone (STR/NurPhoto via Getty Images)
Snap, Inc. is reportedly planning to lay of roughly 20% of its workforce starting Wednesday following reports from earlier this month that the Snapchat parent company was preparing to slash jobs.
The report of forthcoming layoffs comes after Snap CEO Evan Spiegel told employees in the spring that the company would slow hiring for the year.
The company's stock has plummeted nearly 80% this year.
For more on the story, click here: Snap to lay off 20% of its workforce: report
EXCLUSIVE: Americans who work in the U.S. oil industry heavily criticized President Biden's $500 billion student loan handout, characterizing it as the latest attack on them by the administration.
Oil workers argued it was unfair for them and other working-class taxpayers to fund the handout, which would potentially benefit Americans on track to soon make hundreds of thousands of dollars.
"It's one more slap in the face from this administration," Matt Coday, the president and founder of the Oil & Gas Workers Association (OGWA), told FOX Business in an interview.
Click here for more on the story: Oil workers slam Biden's student loan handout: 'Trying to buy votes'
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