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Tesco Shares Fall as UK Sales Growth Slows Over Middle East Uncertainty

Tesco (TSCO.L) shares fell in early Thursday morning trading after the retail giant reported slower UK sales growth in the fiscal first quarter, citing the "ongoing uncertainty for many households" created by the Middle East conflict.For the 13 weeks ended May 30, Tesco reported UK comparable sales growth of 1.8% to 12.6 billion pounds sterling. This marked a slowdown from the 3.1% growth reported for the previous quarter.Tesco shares declined nearly 3% in early morning trading in London following the trading update."We think that the softer than expected UK LFLs will weigh on the shares today but that this is a temporary seasonal impact rather than a deterioration in the underlying business performance or competitive position of Tesco within the market," Bernstein said in a quick-take note following the trading update, noting that the company "is happy with the performance of the business and continues to see customer satisfaction increasing."Group sales rose 1.0% on a like-for-like basis and 1.8% at constant exchange rates to 16.83 billion pounds, supported by strong UK online sales growth of 8.9%. The company's Booker business, meanwhile, saw a 3.2% decline in sales on a like-for-like basis.Despite the softer performance in the UK market, the company maintained its profit outlook for fiscal 2027. It still expects group adjusted operating profit of between 3 billion pounds and 3.3 billion pounds for the full year and free cash flow within its medium-term guidance range of 1.5 billion pounds to 2 billion pounds.Chief Executive Ken Murphy said, "I am pleased with our progress in the first quarter, with customer satisfaction up strongly and continued sales growth building on the exceptional performance we delivered last year. With the conflict in the Middle East creating ongoing uncertainty for many households, we remain focused on giving customers the very best combination of price, quality and service."

$TSCO.L

US Markets53d ago

Swiss National Bank Holds Key Rate, Tweaks Inflation Forecasts on War Impact on Energy Prices

The Swiss National Bank (SNBN.SW) on Thursday kept its policy rate at 0%, as expected, while slightly nudging its near-term inflation projections upward as the ongoing uncertainty in the Middle East drives energy prices higher.The SNB said it will apply its 0% policy rate to bank sight deposits up to a specific threshold, maintaining a 0.25-percentage-point discount on deposits exceeding that threshold.According to the latest data available data, Switzerland's annual inflation came in at 0.6% in May, up from February's 0.1% print. The increase was primarily attributed to climbing oil product prices, with other goods and services making "little" contribution to inflation.Against this backdrop, the SNB raised its conditional inflation estimates for 2026, 2027 and 2028 to 0.6%, 0.6% and 0.7%, respectively, from the March 2026 forecasts of 0.5%, 0.5% and 0.6%. The Swiss central bank noted that midterm inflationary pressure remains "virtually unchanged" relative to the previous monetary policy review.Amid expectations of a "more moderate" global economic development tempering Switzerland's near-term growth, the SNB also projects that a "supportive" domestic monetary policy will help bolster an anticipated 1% growth for 2026. Looking ahead, the central bank forecasts 1.5% growth in 2027 as international market conditions are expected to improve."The SNB's monetary policy is appropriate to keep inflation within the range consistent with price stability, and it supports economic development. The SNB will continue to monitor the situation and adjust its monetary policy, if necessary, in order to ensure price stability," the Swiss central bank said.

$SNBN.SW

US Markets53d ago

HSBC Australia Faces Proposed $35 Million Penalty Over Scam Protection Failures

HSBC's (HKG:0005) Australian unit admitted to serious failures in protecting customers from scams that cost some victims tens of thousands of dollars, prompting Australia's corporate regulator to seek a AU$35 million penalty against the lender.The Australian Securities and Investments Commission (ASIC) said on Thursday that it and HSBC will jointly seek the Federal Court's approval of the proposed penalty, with the bank admitting to multiple compliance failures related to scam-related losses and delays in handling customer complaints.The proposed resolution follows civil penalty proceedings launched by ASIC in December 2024, in which the regulator alleged that HSBC's failures were widespread and systemic, leaving customers vulnerable to unauthorized transactions and impersonation scams.HSBC admitted that it failed to maintain adequate controls over its internal transfer system between May 2023 and May 2024, exposing customers to a greater risk of unauthorized payments.The lender also acknowledged that it had been aware since May 2021 of the growing threat posed by impersonation scams, in which fraudsters impersonated HSBC representatives.Between January 2020 and August 2024, HSBC received more than 1,000 reports of unauthorized transactions totaling AU$34.6 million.Reports of unauthorized transactions surged about 380% in 2023 and 2024, largely driven by such scams, ASIC said.HSBC further admitted it breached its financial services license obligations through major delays in investigating cases, taking an average of 144 days to finalize reports.The bank also had inadequate systems to help customers regain access to accounts that were locked after scam reports."HSBC's alleged failures left customers more vulnerable to scams, tens of millions of dollars out of pocket and waiting months to find out what had happened to their money," ASIC Chair Sarah Court said.Following ASIC's investigation, HSBC established a large-scale remediation program and has so far paid about AU$21.5 million in compensation to affected customers.The bank has also recovered AU$6.5 million and returned the funds to customers.Among the affected customers were a New South Wales dental technician who lost AU$47,000, a part-time architectural assistant who lost AU$50,000 in life savings, a Victorian couple who lost AU$48,000 that had been transferred from their home loan, and a Victorian father who lost AU$50,000.ASIC alleged in its 2024 lawsuit that some customers lost more than AU$90,000 and that HSBC took an average of 95 days to restore access to affected accounts, with one customer waiting 542 days."Individual customers lost tens of thousands of dollars which, for some, were their life savings, causing them real stress and uncertainty," Court said.The proposed settlement remains subject to approval by the Federal Court.

HKG:0005

US Markets53d ago

Manufacturing Strength Drives New Zealand's Economy to Third Consecutive Quarter of Expansion

New Zealand's economy continued to expand in the March quarter as growth in the manufacturing and business services sectors helped offset weakness in mining and construction.The country's gross domestic product increased 0.8% in the first quarter, accelerating from 0.5% growth in the previous three-month period and marking the third consecutive quarter of expansion, according to a report by the official statistics agency, StatsNZ, filed on Thursday.The growth is slightly ahead of the 0.7% expansion forecast by BofA Securities, but short of the 1% rise expected by ANZ.Nine out of the 16 industries in New Zealand posted an increase in activity in the first quarter, with a 1.9% jump in manufacturing representing the largest upward contribution to overall GDP growth. The business services sector grew 1.1%, and wholesale trade advanced 2.4%.On the flip side, mining was the biggest downward contributor to GDP as activity slumped 11.6% due mainly to a fall in oil and gas extraction. The construction sector declined 1% as spending on both residential and non-residential building slid by more than 3%.Earlier in June, the government agency said the Middle East conflict and the resulting increase in fuel prices will influence various segments of the economy, but the full impact is likely to be evident in second-quarter GDP data due for release in September.Westpac said that while the 0.8% first-quarter growth is slightly lower than the bank's forecast, the net impact of certain revisions, including the upward revision of December 2025 quarter growth to 0.5% from 0.2%, "make this a stronger overall result than we were expecting."ANZ echoed that sentiment, saying the result marks "a good start to the year." The data is unlikely to alter the Reserve Bank of New Zealand's thinking, ANZ said, adding that it still expects the central bank to raise its official rate by 25 basis points in July.

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US Markets53d ago

Dow Retreats From Highs in Broad Sell-Off Following Fed Decision

The Dow Jones Industrial Average fell from record highs Wednesday as markets reacted to the Federal Reserve's first policy decision under Kevin Warsh's leadership.The Dow shed 1% to 51,492.6 after notching back-to-back closing highs. The Nasdaq Composite dropped 1.3% to 26,021.7, while the S&P 500 fell 1.2% to 7,420.1. All sectors ended in the red, led by communication services.The Fed kept its monetary policy steady Wednesday to mark its fourth consecutive pause, removing the so-called easing bias from its statement. Fed policymakers raised its interest rate expectations through 2028 and their inflation projections for 2026 and 2027.It was Warsh's first policy meeting as Fed chair, replacing Jerome Powell, who remains a Fed governor.Warsh said at a post-meeting press conference that he didn't submit his rate forecast in the dot plot, which anonymously shows individual members' expectations regarding monetary policy, CNBC reported."The FOMC stuck a more hawkish tone under (Warsh's) debut appearance as the new Fed chair," Thomas Feltmate, senior economist at TD Economics, said in a report.US Treasury yields jumped in late-afternoon trade, with the two-year rate last seen up about 16 basis points at 4.23% and the 10-year rate rising five basis points to 4.5%."The Fed's latest message was dramatically reduced from prior releases, perhaps a precursor (to) a new Warsh era of decisively more succinct language and more limited communication from Fed officials," Stifel Chief Economist Lindsey Piegza said in a report e-mailed to.West Texas Intermediate crude oil was up 0.1% at $76.14 a barrel in Wednesday late-afternoon trade, while Brent was little changed at $78.98.A draft agreement between the US and Iran includes a mechanism for Tehran to gain access to at least $300 billion in financing, as well as a commitment from the Islamic Republic that it will never produce nuclear weapons.A formal signing ceremony is scheduled to take place in Switzerland Friday, which would kick off a 60-day period of further talks.US President Donald Trump said Wednesday that the proposed memorandum of understanding with Iran is "not final" and that Washington would resume military operations if he doesn't like the Tehran deal, CNBC reported.The International Energy Agency lowered its global oil demand forecast for 2026 amid war-driven headwinds while projecting a rebound next year."While the US-Iran interim agreement paves the way for a rebound in Middle East (oil) exports, operational and political constraints, including prolonged demining and unresolved transit arrangements, leave downside risks to the outlook," the agency said.In economic news, US retail sales rose more than expected in May as consumers kept spending despite higher prices, official data showed.In company news, CarMax's (KMX) fiscal first-quarter earnings fell year over year as comparable used vehicle sales swung negative. The used-vehicle retailer's shares slid 9%.Carvana (CVNA) shares sank 10%, the steepest decline on the S&P 500.Gold was down 2.2% at $4,258.60 per troy ounce, while silver slumped 4.1% to $67.17 per ounce.

Dow JonesNasdaq CompositeS&P 500$CVNA$KMX

US Markets53d ago

Manufacturing, Services Sectors Poised for Continued Expansion in 2026, ISM Says

The US manufacturing and services sectors are set for continued expansion this year despite macro and other headwinds, while raw material prices and employment are seen increasing, the Institute for Supply Management said Wednesday.Manufacturing revenue is expected to increase by an average of 8.4% in 2026, four percentage points higher than the December forecast and 5.9 percentage points higher than last year's rate, according to the ISM's latest supply chain planning forecast.Services revenue is expected to rise by 8.6% this year, four percentage points higher than the rate projected in December and 4.4 percentage points higher than the increase reported for 2025."Expectations for the remainder of 2026 are higher than those expressed in December," the ISM said. "The US economy continues to successfully battle the headwinds posed by trade issues, continued inflation concerns, and geopolitical uncertainty."In the manufacturing sector, raw material prices are expected to increase a total of 14.1% for the year, indicating a rise of 2.2 percentage points for the rest of 2026. Employment in the sector is seen growing 1.4%.In services, raw material prices are expected to increase 8.9% for 2026, indicating expectations of "continuing inflation," the ISM said. The sector's employment is likely to increase 0.9 percentage point this year.Capital expenditures in the manufacturing sector are now projected to rise 4.9% this year, 1.9 percentage points higher than the December forecast, while services capex is seen growing 6.4%, compared with 2025, according to the report.Earlier this month, an ISM survey showed that the US manufacturing sector expanded to its highest level in four years in May amid strength in demand and production, though price pressures remained elevated. A separate survey showed that the services sector grew at a faster rate sequentially last month.

US Markets53d ago

Update: Fed Drops Easing Bias in Hold Decision, Raises Rate Outlook

(Updates with the Summary of Economic Projections and comments from Oxford Economics.)The Federal Reserve kept its monetary policy steady Wednesday, removing the so-called easing bias from its statement, while raising its interest rate expectations through 2028.The central bank's Federal Open Market Committee maintained its interest rate at 3.50% to 3.75%, in line with Wall Street's expectations and marking its fourth consecutive pause.Last year, the FOMC delivered three back-to-back 25-basis-point cuts amid concerns about the labor market.The latest policy statement excluded language that suggested a lingering bias toward rate cuts.June's decision and the accompanying statement had backing from all voters, according to the Fed.Its April decision to hold rates drew opposition from then-Governor Stephen Miran, who favored a rate cut, while three other officials wanted the easing bias removed."Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East," the FOMC said Wednesday. "Job gains have kept pace with the workforce, and the unemployment rate has changed little."The FOMC's latest Summary of Economic Projections, or SEP, showed the median federal funds rate at 3.8% at the end of 2026, up from 3.4% in March. The 2027 and 2028 outlooks were revised higher to 3.6% and 3.4%, respectively, from 3.1% previously projected for both years.This was Kevin Warsh's first policy meeting as Fed chair, replacing Jerome Powell, who remains a Fed governor.Warsh said at a post-meeting press conference that he didn't submit his rate forecast in the dot plot, which anonymously shows individual members' expectations regarding monetary policy, CNBC reported.Policymakers raised their 2026 projections for headline and core inflation -- as measured by personal consumption expenditures -- to 3.6% and 3.3%, respectively, from the March estimates of 2.7% for both metrics.Their 2027 figures for headline and core inflation increased to 2.3% and 2.5%, respectively, from 2.2%. Core inflation excludes the volatile food and energy components."In a dramatically slimmed-down communication from the (Fed), the key message was that roughly half the committee are now projecting a rate hike this year, reflecting persistent inflation concerns," Michael Pearce, chief US economist at Oxford Economics, said in remarks e-mailed to. "Warsh took an axe to the policy statement, which now offers next to no guidance beyond a factual summary of the economic situation."The unemployment rate this year is seen at 4.3%, down from 4.4% previously expected, though the 2027 outlook was maintained at 4.3%, the SEP document showed."Inflation remains elevated relative to the committee's 2% goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy," the Fed said. "The committee will deliver price stability."Earlier this month, official data showed US annual inflation accelerated to the highest in about three years.The US and Iran have agreed to end their war and reopen the Strait of Hormuz.Fed officials' next monetary policy meeting is scheduled for July 28-29.

US Markets53d ago

Fed Leaves Rates Steady, Removes Language Around Easing Bias

The Federal Reserve kept its benchmark lending rate steady Wednesday, leaving the so-called easing bias out of its policy statement.The central bank's Federal Open Market Committee maintained its interest rates at 3.50% to 3.75%, in line with Wall Street's expectations and marking its fourth consecutive pause.Last year, the FOMC delivered three back-to-back 25-basis-point cuts amid concerns about the labor market.The latest policy statement excluded language that suggested a lingering bias toward rate cuts."Economic activity is expanding at a solid pace despite elevated uncertainty that owes, in part, to the conflict in the Middle East," the FOMC statement said. "Job gains have kept pace with the workforce, and the unemployment rate has changed little."The decision was unanimous, according to the statement.The Fed's April decision to hold rates drew opposition from then-Governor Stephen Miran, who favored a rate cut, while three other officials wanted the easing bias removed."Inflation remains elevated relative to the committee's 2% goal, in part reflecting supply shocks that have driven price increases in certain sectors, including energy," it said Wednesday. "The committee will deliver price stability."Earlier this month, official data showed US annual inflation accelerated to the highest in about three years.The US and Iran have agreed to end their war and reopen the Strait of Hormuz.Fed officials' next monetary policy meeting is scheduled for July 28-29.

US Markets53d ago

Update: Equity Markets Mixed Ahead of Fed Decision

(Updates with latest market prices and developments.)US benchmark equity indexes were mixed intraday ahead of the Federal Reserve's latest monetary policy decision and new central bank chair, Kevin Warsh's, press conference.The Dow Jones Industrial Average was up 0.4% at 52,202.7 after midday Wednesday, after closing at a record high in the previous session. The Nasdaq Composite and the S&P 500 were little changed at 26,367.7 and 7,511, respectively, intraday Wednesday.Among sectors, communication services saw the steepest decline, while industrials paced the gainers.The Fed is scheduled to announce its interest rate decision at 2 pm ET. Markets widely expect the central bank to keep rates unchanged for a fourth consecutive time, according to the CME FedWatch tool.Warsh, who assumed the Fed chair role last month, is expected to hold a press conference at 2:30 pm."I would expect the balance of the dots projection to remove the median participants call for a rate cut this year, but for Warsh's press conference to sound more neutral-dovish than the dots, which he'll likely boycott," Derek Holt, head of capital markets economics at Scotiabank, said in a note.West Texas Intermediate crude oil was up 0.8% at $76.68 a barrel intraday, while Brent rose 0.7% to $79.49.A draft agreement between the US and Iran includes a mechanism for Tehran to gain access to at least $300 billion in financing, as well as a commitment from the Islamic Republic that it will never produce nuclear weapons, news outlets reported.A formal signing ceremony is scheduled to take place in Switzerland Friday, which would kick off a 60-day period of further talks.US President Donald Trump said Wednesday that the proposed memorandum of understanding with Iran is "not final" and that Washington will "go right back to dropping bombs" if he doesn't like the Tehran deal, CNBC reported.The International Energy Agency lowered its global oil demand forecast for 2026 amid war-driven headwinds while projecting a rebound next year."While the US-Iran interim agreement paves the way for a rebound in Middle East (oil) exports, operational and political constraints, including prolonged demining and unresolved transit arrangements, leave downside risks to the outlook," the agency said.US Treasury yields were mixed intraday, with the two-year rate increasing 2.1 basis points to 4.07% and the 10-year rate little changed at 4.43%.In economic news, US retail sales rose more than expected in May as consumers kept spending despite higher prices, official data showed.In company news, CarMax's (KMX) fiscal first-quarter earnings fell year over year as comparable used vehicle sales swung negative. The used-vehicle retailer's shares were down 8.1% intraday.Carvana (CVNA) shares sank 7.1%, the steepest decline on the S&P 500.La-Z-Boy (LZB) shares surged nearly 20%. Late Tuesday, the furniture manufacturer reported a year-over-year gain in fiscal fourth-quarter earnings and said it expected sales to outperform the industry in the ongoing quarter.Gold was up 0.6% at $4,381.60 per troy ounce, while silver rose 0.9% to $70.64 per ounce.

Dow JonesNasdaq CompositeS&P 500$CVNA$KMX$LZB

US Markets53d ago

May Pending Home Sales Top Estimates Despite High Mortgage Rates

US pending home sales increased more than expected last month despite elevated mortgage rates, the National Association of Realtors said Wednesday.The forward-looking indicator of home sales based on contract signings increased 3.8% month over month in May, according to the report. Analysts expected a 0.9% gain, according to a survey compiled by Bloomberg."A late spring buyer rush -- even with mortgage rates not budging -- is an indication of pent-up housing demand and consumers' acceptance of above-6% mortgage rates as the new normal," NAR Chief Economist Lawrence Yun said."The inventory-constrained Northeast region, which has seen faster home price growth but slower home sales for several months, is now showing more buyer contract signings," Yun said. "More supply is needed to help moderate home price growth."The average 30-year fixed mortgage rate was 6.52% as of June 11, up from 6.48% a week ago, Freddie Mac data showed. Mortgage applications in the US declined last week as both refinancing and purchase demand weakened, the Mortgage Bankers Association said Wednesday.Pending home sales increased both sequentially and annually in all regions, NAR data showed.The US and Iran have agreed to end their war and reopen the Strait of Hormuz after months of shipping traffic disruption. The two sides are scheduled to sign the peace deal in Switzerland Friday."Going forward, falling oil prices will help lower mortgage rates," Yun said. "But declines will be modest given sizable borrowing by the federal government and strong (artificial intelligence) investment spending by tech companies."US housing starts plunged in May to their lowest level since 2020, driven by a sharp decline in multi-family construction, the Census Bureau and the Department of Housing and Urban Development said Tuesday. Building permits, a key indicator of future homebuilding activity, fell during the month.

US Markets53d ago

Draft US-Iran Framework Reportedly Includes $300 Billion Relief Fund for Tehran

A draft agreement between the US and Iran includes a mechanism for Tehran to gain access to at least $300 billion in financing, as well as a commitment from the Islamic Republic that it will never produce nuclear weapons.Multiple media outlets, including CNN and The Wall Street Journal, published text of the draft 14-point memorandum of understanding Washington and Tehran struck to end their war and reopen the Strait of Hormuz.A formal signing ceremony is scheduled to take place in Switzerland on Friday, which would kick off a 60-day period of further talks.The purported term sheet includes rehabilitation and economic development of Iran, ensuring at least $300 billion in financing.The $300 billion benefit will come via a private fund aimed at spurring investments into Iran, with more than half that sum having been already committed, Reuters reported, citing a source with direct knowledge of the deal.Iran may get access to a $300 billion fund if it meets commitments related to its nuclear program, CNN reported. As part of the deal, Iran would commit that it will never produce nuclear weapons, a key US demand.The purported MoU is yet to be officially released, but CNN -- which obtained a copy from a US official -- said that a diplomat attending the G7 summit in France this week and two other diplomatic sources confirmed the contents of the draft document.Under the proposed draft agreement, Iran would be allowed to export its oil and petrochemical products, while the US may release frozen Iranian funds, subject to progress of negotiations.The US has agreed to lift its naval blockade of Iranian ports.

US Markets53d ago

IEA Slashes 2026 Oil Demand Forecast, Projects Rebound Next Year

The International Energy Agency on Wednesday lowered its global oil demand forecast for 2026 amid war-driven headwinds while projecting a rebound next year.The agency now expects oil consumption to fall by 1.1 million barrels per day this year, 700,000 barrels lower than last month's projection. Second-quarter deliveries slumped by 5 million barrels a day year over year "in the face of higher fuel prices and disruptions to product availability," the IEA said in its latest monthly report."Despite the significant reductions in demand for crude oil and refined products, the buffers in the system continue to erode at a record pace," the agency said. On average, global observed oil stocks have dropped by 3.8 million barrels a day since the start of the US/Israel war with Iran in late February, according to the report."Further declines in the coming months could still take global oil stocks to historic lows before the market balance shifts to surplus towards the end of the year," the IEA said.In 2027, world oil demand growth is seen rebounding to 2 million barrels a day amid expectations of a normalization of trade flows, lower oil prices and an improving economy, the agency said.West Texas Intermediate and Brent crude oil prices were below $80 a barrel each intraday Wednesday.The US and Iran recently agreed to end their war and reopen the Strait of Hormuz, the world's most important chokepoint for crude flows. The two sides are scheduled to sign their peace deal in Switzerland Friday, which would kick off another round of negotiations on Tehran's nuclear program as Iran seeks sanctions relief."While the US-Iran interim agreement paves the way for a rebound in Middle East exports, operational and political constraints, including prolonged demining and unresolved transit arrangements, leave downside risks to the outlook," the IEA said Wednesday.Global supply is seen dropping by 3.9 million barrels per day to 102.4 million barrels this year before rebounding by 8 million barrels a day to 110.3 million barrels in 2027, according to the report."The (projected oil surplus) may provide a welcome respite to the market and an opportunity to replenish depleted inventories, or to build new strategic reserves, as countries review their energy strategies and policies in response to the crisis," the IEA wrote.

US Markets53d ago

Mortgage Applications Decline as Refinancing, Home Purchasing Activity Slows

Mortgage applications in the US declined last week as refinancing and home purchase demand weakened, the Mortgage Bankers Association said Wednesday.The market composite index, which measures loan application volume, decreased 3.8% in the week ended June 12, compared with the prior week's nearly 11% gain. On an unadjusted basis, applications were down 5% on a weekly basis."Last week's (consumer price index) data showed that inflation continued to move higher, putting upward pressure on rates early in the week, but growing optimism regarding the opening of the Strait of Hormuz brought rates down again by the end of the week," said Mike Fratantoni, the MBA's chief economist.The US and Iran recently agreed to end their war and reopen the crucial Strait of Hormuz after more than three months of conflict that disrupted regional stability and global shipping routes.Government data from last week showed that annual inflation in the world's largest economy accelerated to 4.2% last month, the highest level in about three years, fueling expectations that the Federal Reserve will keep interest rates on hold for some time."The net impact reduced mortgage application activity, with both purchase and refinance application volume down for the week," Fratantoni said.The refinance index fell 5% from the prior week, while the seasonally adjusted purchase index declined 3%.Purchase applications remains "modestly" ahead of last year's level, driven by conventional volume, Fratantoni said.The average interest rate for 30-year fixed mortgages with conforming loan balances of $832,750 or less remained unchanged at 6.6% on a weekly basis. For loan balances higher than that amount, the rate decreased to 6.62% from 6.66%. For 15-year loans, the rate rose to 6.02% from 5.99%.The share of Federal Housing Administration loans, which are often used by first-time home buyers and can involve smaller down payments, ticked up to 17.5% of total applications from 17.4% the week prior.On Tuesday, official data showed that housing starts in the US plummeted to the lowest level since 2020 in May, amid a steep drop in multi-family projects.Homebuilder confidence declined in June as rising material costs and high mortgage rates stoked affordability concerns, the National Association of Home Builders and Wells Fargo said Monday.

US Markets53d ago

Jabil Raises Full-Year Forecast Amid Robust AI Demand

Jabil (JBL) raised its full-year outlook on Wednesday as the manufacturing solutions provider logged stronger-than-expected fiscal third-quarter results amid robust demand for artificial intelligence infrastructure.For fiscal 2026, the company now anticipates core earnings of $12.70 per share and revenue of $35 billion, up from its prior guidance that called for $12.25 and $34 billion, respectively. Analysts in a FactSet poll project non-GAAP EPS of $12.35 and sales of $34.17 billion.For the quarter ended May 31, Jabil's core EPS rose to $3.16 from $2.55 a year earlier, surpassing the consensus estimate of $3.10. Revenue grew 12% to $8.75 billion, while analysts expected $8.61 billion.Shares of Jabil rose 4.1% in Wednesday trade."AI infrastructure demand remains extremely strong, and our full-year AI-related revenue outlook is now meaningfully higher," Chief Executive Mike Dastoor said in a statement on Wednesday.Jabil raised its full-year AI revenue outlook to $13.6 billion from $13.1 billion, Dastoor said on a conference call, according to a FactSet transcript. The company recorded $9 billion in AI revenue in fiscal 2025.Dastoor expects Jabil's fiscal 2027 AI revenue to grow at an annual pace similar to 2026.Third-quarter revenue in the regulated industries segment increased 4% year on year, while intelligent infrastructure sales jumped 21%, the company said in an earnings presentation. Connected living and digital commerce grew 5%."We continued to see better-than-expected performance in areas of the portfolio that had previously been under pressure, particularly in automotive and connected living," Dastoor said in the statement.For the ongoing quarter, Jabil expects core EPS of $3.80 to $4.20 on revenue of $9.2 billion to $10 billion. Analysts are looking for non-GAAP EPS of $3.72 and $8.97 billion, respectively.Price: $389.71, Change: $+14.20, Percent Change: +3.78%

$JBL

US Markets53d ago

US Retail Sales Outpace Forecasts in May as Consumers Remain Resilient

US retail sales rose more than expected in May as consumers kept spending despite higher prices.Sales climbed 0.9% after a downwardly revised 0.4% gain in April, the Census Bureau reported Wednesday. The consensus was for a 0.6% increase in May, based on a Bloomberg survey.Spending on motor vehicles and parts dealers rose 1.2% after a 0.9% decline in April. Gasoline station receipts rose 3.4% after a 2.4% gain in April."Consumers showed their resilience yet again last month," Scott Anderson, chief US economist at BMO, said in a report. "Higher goods and energy prices are definitely boosting the sales gains, but consumers in aggregate continue to meet the challenge and grow their real inflation-adjusted spending."Retail sales without the motor vehicle and gas components rose 0.5%, matching April's increase and topping the consensus for a 0.3% gain.Outlays on furniture and home furnishings rose 1% in May following a 1.5% drop in April. Spending on electronics and appliances fell 0.5%, while the clothing and clothing accessories category registered a 0.3% gain. Sales at sporting goods outlets increased 0.3%."The worst of the gas price increases appear to be in the rearview mirror," Ksenia Bushmeneva, economist at TD Economics, said in a report. "With gas prices down by roughly 50 cents in June on US-Iran peace progress, households will get some modest reprieve."Retail sales were up 6.9% from a year earlier, accelerating from April's 4.8% pace."The strength of May's retail sales report and the acceleration from April's spending pace will raise more yellow flags at the Fed as it tries to tamp down consumer inflation pressures," BMO's Anderson said.The Federal Reserve's monetary policy committee will announce its latest decision on interest rates at 2 pm ET Wednesday. Markets widely expect the central bank to keep interest rates unchanged for the fourth straight time, according to the CME FedWatch tool."Doves will remain on the back foot at today's meeting due to this consumer resilience, nearly ensuring we get a hawkish lean from the policy statement" and new Fed Chair Kevin Warsh, Anderson said.

US Markets53d ago

CarMax First-Quarter Earnings Fall as Comparable Used Vehicle Sales Turn Negative

CarMax's (KMX) fiscal first-quarter earnings fell year over year on Wednesday as comparable used vehicle sales swung negative.The used-vehicle retailer's earnings for the quarter ended May 31 decreased to $1.31 per share from $1.38 a year earlier. Total revenue rose 6.2% to $8.01 billion, topping the FactSet-polled consensus of $7.43 billion.CarMax's shares declined 7.2% intraday Wednesday, but are up about 25% so far this year.Comparable store used unit sales decreased 0.8%, compared with an 8.1% rise in the year-ago period. That was worse than Truist Securities' estimate that called for a flat print.The stock is up about 40% from recent lows, but comparable sales were "still negative despite significant price cuts, and we suspect it will cost (money) to improve the operations/tech, even as CAF (consumer finance) seems like it will be the main driver of earnings this (year)," Truist said in the note. "Thus, while the (quarter) was moderately better, we remain neutral on the stock."Revenue from retail used vehicle sales increased 4.7% year on year to $6.39 billion, driven by higher selling prices. Wholesale revenue moved up 14% to $1.43 billion amid an 8.4% rise in volume.Total gross profit declined 4.4% to $854.4 million due to weakness in the retail used vehicle segment.CarMax laid out a growth framework that focuses on competitive pricing, an improved customer experience and cost-reduction opportunities. The company said it also plans to grow profitability by "maximizing value across all aspects of our business."Price: $48.64, Change: $-3.47, Percent Change: -6.66%

$KMX

US Markets53d ago

SailPoint Positioned Well in Identity Security Market Amid Agentic AI Opportunity, RBC Says

SailPoint (SAIL) is positioned well as an adaptive identity security provider with potential to benefit from the emerging agentic AI market, RBC Capital Markets said in a note emailed Wednesday.The brokerage said it's optimistic about SailPoint after attending its analyst day, where the cybersecurity firm unveiled its fiscal 2029 and long-term financial targets, product strategy and pricing models.For fiscal 2029, SailPoint is eyeing annual recurring revenue of $2.1 billion, of which $800 million is expected to be generated from artificial intelligence. The company is also aiming to achieve an adjusted operating margin of 22%."We believe topline targets are achievable despite the implied acceleration as we believe modernizations will accelerate and yield a healthy uplift along with the extensive agentic opportunity ahead of the company," RBC analyst Matthew Hedberg wrote in the note.Last week, the firm said it expects ARR of $1.36 billion to $1.37 billion for its ongoing fiscal year, while the current consensus on FactSet is for $1.37 billion. Adjusted earnings are pegged at $0.30 to $0.34 per share on a revenue range of $1.27 billion to $1.28 billion. The Street is looking for non-GAAP EPS of $0.32 and sales of $1.27 billion.SailPoint reiterated its full-year outlook at the analyst event, according to RBC.Upside for the firm is likely to continue throughout the year based on senior management's bullish commentary around agentic inflection, Hedberg wrote. The brokerage said SailPoint's guidance "remains conservative," as it is measured about the timing of AI's impact on results but expects it to become a tailwind."We believe management did a good job reconciling recent bullish commentary on AI tailwinds with what we view is conservative (fiscal 2027) guidance by providing (fiscal 2029) and (long-term) targets implying accelerating growth," according to Hedberg. "We believe SailPoint remains well-positioned in a durable and growing identity security market and for the emerging agentic opportunity."RBC maintained its outperform rating on SailPoint's stock and price target of $19.

$SAIL

US Markets53d ago

Stocks Mostly Up Pre-Bell Ahead of Latest Fed Rate Decision

The main US stock measures were mostly pointing higher in Wednesday's premarket activity as traders await the Federal Reserve's monetary policy decision later in the day, the first under new Chair Kevin Warsh.The S&P 500 edged up 0.1% and the Nasdaq rose 0.5% before the opening bell, while the Dow Jones Industrial Average slipped 0.1%. The Dow recorded a new closing high Tuesday for the second consecutive session, while the S&P 500 and the Nasdaq finished lower.US markets will be closed on Friday for the Juneteenth National Independence Day holiday.The Fed's monetary policy committee will announce its latest decision on interest rates at 2 pm ET. Markets widely expect the central bank to keep interest rates unchanged for a fourth consecutive time, according to the CME FedWatch tool.Warsh, who assumed the Fed chair role last month, is expected to hold a press conference at 2:30 pm.The central bank's latest "dot plot" will likely show that most officials expect monetary policy to be "stagnant" for the rest of the year amid concerns over inflation, Stifel said Tuesday. "The (Federal Open Market Committee) is expected to remove the lingering easing bias from the statement, signaling instead an equal probability of the next policy move being a rate cut or a rate hike," according to Stifel.US Treasury yields were up in premarket action, with the two-year rate increasing 0.3 basis points to 4.05% and the 10-year rate adding 0.7 basis points to 4.44%.A draft memorandum of understanding between the US and Iran calls for an immediate and permanent end to hostilities, the lifting of sanctions on Tehran, and negotiations toward a final nuclear agreement, Bloomberg News reported Tuesday, citing a document it reviewed.Under the draft, the US and Iran would begin a 60-day negotiating period aimed at reaching a final agreement, according to Bloomberg. The memorandum is expected to be formally signed in Switzerland on Friday.However, analysts have flagged the possibility of implementation risks and potential disagreements."The path ahead is complex: watch for implementation disagreements, Gulf states' security demands, and Iran's continued leverage over the Strait of Hormuz," Deutsche Bank said in a note on Tuesday.President Donald Trump said Wednesday at the G7 conference that the proposed memorandum of understanding with Iran is "not final" and the US will "go right back to dropping bombs" if he doesn't like the Iran deal, CNBC reported.West Texas Intermediate crude oil increased 0.4% to $76.36 a barrel before the open, while Brent moved up 0.5% to $79.32.Wednesday's economic calendar also has the weekly mortgage applications bulletin at 7 am, followed by the retail sales report for May at 8:30 am. Last month's pending home sales index is out at 10 am, while the weekly EIA domestic petroleum inventories report posts at 10:30 am.Shares of SpaceX (SPCX) advanced 1.9% pre-bell after closing the previous session up 4.8%. SoFi Technologies (SOFI) rose 2% while Netflix (NFLX) nudged 0.1% lower.La-Z-Boy's (LZB) stock jumped 17% as the furniture manufacturer reported a year-over-year gain in fiscal fourth-quarter earnings and said it expects sales to outperform the industry in the ongoing quarter.Jabil (JBL) and CarMax (KMX) are scheduled to report their latest financial results before the bell.Gold slipped 0.1% to $4,348 per troy ounce, while bitcoin fell 1.1% to $64,870.

Dow JonesNasdaq CompositeS&P 500$JBL$KMX$LZB$SOFI$SPCX

US Markets54d ago

La-Z-Boy Fiscal Fourth-Quarter Earnings Rise; Expects Sales to Outperform Industry

La-Z-Boy (LZB) shares jumped early Wednesday as the furniture manufacturer reported a year-over-year gain in fiscal fourth-quarter earnings and said it expects sales to outperform the industry in the ongoing quarter.Adjusted earnings came in at $1.26 a share for the quarter ended April 25, up from $0.92 the year before, the company said late Tuesday. Three analysts polled by FactSet expected $0.82. Sales edged down to $570.3 million from $570.9 million, compared with the $569.2 consensus based on the same number of analysts.The stock spiked 18% in the most recent premarket activity."We are pleased with the strong finish to the fiscal year as our fourth-quarter margin performance exceeded expectations driven by strong execution across our businesses," Melinda Whittington said in a statement. The company's operating and adjusted operating margins rose by 200 and 50 basis points, respectively.For the current quarter, La-Z-Boy anticipates sales to be in a range of $490 million to $510 million, reflecting organic growth of up to 4%, Chief Financial Officer Taylor Luebke said. Two analysts surveyed by FactSet are looking for $495.4 million. Adjusted operating margin is pegged at 4% to 5.5%, Luebke added."While we continue to have a measured view of the external environment, we expect to continue to outperform the industry," according to Luebke. "Our first quarter is generally the lowest sales and operating margin quarter in the fiscal year due to seasonally lower industry sales and our annual week long plant shutdown."Sales in the retail segment advanced 11% to $269.6 million in the fourth quarter, while written same-store sales decreased 2%, representing a sequential improvement as lower traffic was partially offset by higher conversion rates, average ticket and design sales, the company said. In the wholesale segment, sales declined 2% to $393.2 million."We continue to execute well across our Century Vision strategy, and are increasingly focused on our core, vertically integrated North American upholstery business," Whittington said.

$LZB

US Markets54d ago

Straumann Shares Soar 9% on 2026 Guidance Upgrade

Straumann Holding (STMN.SW) on Wednesday guided 2026 profitability to be "significantly" above its previous outlook, underpinned by continued operational improvements, a favorable geographical mix, and lower-than-expected tariffs.The dental products company now projects core EBIT margin expansion in the range of 140 basis points to 170 basis points at constant 2025 exchange rates, up from its previous forecast of 30 basis points to 60 basis points issued in February 2026. The improvement is expected to be split uniformly between the first and second half of 2026.Shares of the Swiss dental implants maker zoomed up over 9% in midmorning trade.At the midpoint, the new guidance points to a 155-basis-point constant currency jump, ahead of the sell-side consensus expectations of a 50-basis-point rise, according to a Bernstein report. "An upgrade was not entirely unexpected given progress on internal execution, delayed [volume-based procurement policy in China], and a reduction in tariffs as we highlighted in our note following Q1 results in April. However, the magnitude of the revision is clearly positive," analysts wrote.At the same time, Straumann affirmed its high single-digit organic revenue growth outlook for the 12 months ending Dec. 31, ahead of the release of first-half results on Aug. 19.Regionally, the tooth replacement and orthodontic services company reported an increase in profitability from China, driven by the Shanghai campus ramp-up and lower local-for-local production costs. Straumann also noted the delayed rollout of VBP 2.0, a gradual normalization in patient flow and distributor demand, and expected non-core related tariff-refunds of up to 17 million francs."Strong execution across our franchises, combined with significant operational leverage driven by manufacturing efficiencies on the one hand and disciplined resource management on the other while continuing to progress on our strategic priorities, contributed to stronger-than-expected profitability," Chief Executive Officer Guillaume Daniellot said.

$STMN.SW

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US Markets53d ago

Stocks Mostly Up Pre-Bell Ahead of Latest Fed Rate Decision

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