Bath & Body shares soar, Cisco gains, jobless claims and more: Thursday's 5 things to know
Key economic reports could impact trading on Thursday as data on jobless claims and housing starts are released
Investors need to be 'slightly more defensive' about retail market: Kevin Mahn
Hennion & Walsh Asset Management President and CIO Kevin Mahn joins a 'Mornings with Maria' panel to discuss the retail market's outlook for the holiday season.
Here are the key events taking place on Thursday that could impact trading.
CISCO SYSTEMS: Shares are gaining more than 4% in premarket trading after the company beat first-quarter revenue estimates, as easing supply chain constraints and a COVID-19 recovery in China helped meet demand for its broad networking products portfolio.
Cisco forecast current-quarter revenue to grow between 4.5% and 6.5%, while expecting adjusted earnings between 84 cents and 86 cents per share.
The company's revenue was $13.63 billion in the first quarter, above analysts' estimates of $13.31 billion, according to Refinitiv data.
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Cisco Systems sign in front of one the many buildings that make up the company's headquarters in San Jose. (iStock / iStock)
Excluding items, Cisco earned 86 cents per share.
BATH & BODY WORKS: Shares are surging more than 21% in premarket trading after the personal care and home fragrance retailer topped Wall Street revenue estimates.
Third quarter net sales fell 5% to $1.60 billion, topping the estimate of $1.56 billion.
Net income for the three months ended October 29 was $91 million, up from $87.8 million a year ago.
Diluted earnings per share were 40 cents; analysts were looking for 20 cents.
The company is forecasting fourth quarter earnings from continuing operations per diluted share between $1.45 and $1.65.For fiscal 2022, the company is forecasting earnings from continuing operations per diluted share between $3.00 and $3.20, compared to its prior full year forecast of $2.70 to $3.00.
Macy's prepares for the holiday's in New York City. (iStock / iStock)
RETAIL SALES RISE FASTER THAN EXPECTED IN OCTOBER
RETAIL EARNINGS: The earnings parade continues with department store chains Macy’s and Kohl’s reporting ahead of the opening bell, along with warehouse club BJ’s Wholesale, and children’s apparel retailer Children’s Place.
In the afternoon, we’ll hear from discount chain Ross Stores, clothing retailer Gap, and home furnishings' seller Williams-Sonoma
JOBLESS CLAIMS: The Labor Department will release the number of new jobless claims for last week. Expectations are for 225,000, unchanged from the previous week and indicating a labor market that remains tight.
Continuing claims, which track the total number of workers collecting unemployment benefits, are expected to rise for the fifth consecutive week to 1.5 million.
Homes under construction at the Cielo at Sand Creek by Century Communities housing development in Antioch, California. (Photographer: David Paul Morris/Bloomberg via Getty Images / Getty Images)
HOUSING NUMBERS: The Commerce Department is expected to say that the number of new homes under construction in October fell 2% to a seasonally adjusted annual rate of 1.41 million. That would follow a steeper-than-expected decline of 8.1% in September as surging mortgage rates and high prices continued to dampen demand.
Permits for future construction, a good gauge of upcoming housing activity, are anticipated to fall 3.3% to 1.512 million in October, the lowest since August 2020.
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The report follows the NAHB’s housing market index which tumbled more than expected to the lowest since June 2012 as high mortgage rates and rising construction costs weighed on the mood of homebuilders.