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☆ Wall Street ends down, snaps weekly winning streak on Fed worries
▼ + stars: | 2023-06-23 | by ( Stephen Culp | ) www.reuters.com time to read: +3 min

With few market-moving catalysts this week aside from Powell's congressional testimony, all three indexes notched weekly losses, ending a weeks-long rally. The Nasdaq snapped its eight-week winning streak, its longest since March 2019, while the S&P 500 (.SPX) broke its five-week rally, its longest since November 2021. The S&P 500 and the Nasdaq logged their biggest Friday-to-Friday percentage drops since early March, when the regional banking liquidity crisis hit. "You can probably count on a rate hike next month, but it's that second hike that the markets are skeptical of," Mayfield added. According to preliminary data, the S&P 500 (.SPX) lost 33.48 points, or 0.76%, to end at 4,348.41 points, while the Nasdaq Composite (.IXIC) lost 138.09 points, or 1.01%, to 13,492.52.

Persons: Jerome Powell's, Ross Mayfield, Mary Daly, Tom Barkin, Mayfield, Russell, Stephen Culp, Shubham Batra, Shristi, Richard Chang Organizations: YORK, Federal, Nasdaq, Baird, Francisco Fed Bank, Reuters, Atlanta Fed, Financial, Dow Jones, Carmax Inc, Starbucks Corp, Thomson Locations: Louisville , Kentucky, Bengaluru

☆ CarMax beats profit estimates powered by cost-cuts; shares jump
▼ + stars: | 2023-06-23 | by ( ) www.reuters.com time to read: +1 min

Shares of the pre-owned car retailer were up about 8% before the bell. Auto retailer AutoNation (AN.N), in April, missed Wall Street estimates for first-quarter revenue as higher new vehicle and after-sales demand was offset by weakness in used vehicle and customer financial service businesses. On Friday, CarMax reported an adjusted profit of $1.16 per share, compared with average analysts' expectation of 79 cents per share, as per Refinitiv data. Net revenue came in at $7.69 billion, compared with analysts' estimates of $7.53 billion. Reporting by Kannaki Deka and Nathan Gomes in Bengaluru; Editing by Shailesh KuberOur Standards: The Thomson Reuters Trust Principles.

Persons: Bill Nash, CarMax, Kannaki Deka, Nathan Gomes, Shailesh Organizations: CarMax, Auto, Thomson Locations: Bengaluru

Appearing before the Senate Banking Committee, Powell reiterated his view that more rate hikes are likely in the months ahead. Richmond Fed President Tom Barkin said he remains unconvinced that inflation is on a steady path downward, but would not prejudge what the Fed should do at its July 25-26 meeting. Investors will also monitor comments from St. Louis Fed President James Bullard, Atlanta Fed President Raphael Bostic and Cleveland Fed's President Loretta Mester. ET, Dow e-minis were down 109 points, or 0.32%, S&P 500 e-minis were down 22 points, or 0.5%, and Nasdaq 100 e-minis were down 101.75 points, or 0.67%. Reporting by Shubham Batra, Shreyashi Sanyal and Shashwat Chauhan in Bengaluru; Editing by Arun KoyyurOur Standards: The Thomson Reuters Trust Principles.

Persons: Jerome Powell, Powell, Matt Britzman, Hargreaves Lansdown, Tom Barkin, Louis, James Bullard, Raphael Bostic, Loretta Mester, Shubham Batra, Shreyashi Sanyal, Shashwat Chauhan, Arun Koyyur Organizations: Dow, Nasdaq, Banking, Richmond Fed, Deutsche Bank, Louis Fed, Atlanta Fed, Cleveland, Dow e, 3M, Carmax Inc, Thomson Locations: U.S, Bengaluru

Her comments followed a hawkish stance by Fed Chair Jerome Powell in his two-day testimony before the Senate Banking Committee earlier this week. Markets calmed briefly and the S&P 500 (.SPX) and the Nasdaq (.IXIC) added some gains in the previous session after Powell said the Fed will proceed with caution. We've heard from the various Fed governors, Powell talk about higher interest rates," said Paul Nolte, senior wealth advisor and market strategist at Murphy & Sylvest. Yields on the 2-year, which best reflects interest rate expectations, dropped to hover at 4.71% on Friday. Investors will also monitor comments from some Fed policymakers due to speak later in the day.

Persons: Mary Daly, Jerome Powell, Powell, We're, We've, Paul Nolte, advancers, Shubham Batra, Shristi, Arun Koyyur Organizations: Starbucks, Dow, Nasdaq, Federal Reserve, San Francisco Fed Bank, Reuters, Committee, Murphy, Apple, Microsoft, Dow Jones, 3M, Carmax Inc, Starbucks Corp, NYSE, Thomson Locations: San, U.S, Bengaluru

☆ Wall St ends mixed as inflation data comes into focus
▼ + stars: | 2023-04-11 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

The bellwether S&P 500 ended essentially unchanged. "With huge inflation data tomorrow, Fed minutes coming out soon and earnings right around the corner, traders are taking a wait and see approach to see how the inflation data comes in." Analysts expect aggregate first-quarter S&P 500 earnings falling 5.2% year-on-year, a stark reversal from the 1.4% annual growth seen at the beginning of the quarter. Among the 11 major sectors of the S&P 500, communication services (.SPLRCL) and tech (.SPLRCT) ended in the red, while energy (.SPNY) and financials (.SPSY) enjoyed the largest percentage gains. The S&P 500 posted nine new 52-week highs and no new lows; the Nasdaq Composite recorded 64 new highs and 118 new lows.

☆ S&P 500 edges higher as investors look to CPI
▼ + stars: | 2023-04-11 | by ( Stephen Culp | ) www.reuters.com time to read: +4 min

With a lack of market moving catalysts, investors looked ahead to Wednesday's consumer price index (CPI) for any evidence that the long, slow inflation cooldown continues. Beyond CPI, investors are eyeing first-quarter reporting season, which surges from the starting gate this Friday with results from three major banks, Citigroup Inc (C.N), JPMorgan Chase & Co (JPM.N) and Wells Fargo & Co (WFC.N). Analysts expect aggregate first-quarter S&P 500 earnings falling 5.2% year-on-year, a stark reversal from the 1.4% annual growth seen at the beginning of the quarter. Among the 11 major sectors of the S&P 500, energy (.SPNY) and materials (.SPLRCM) were enjoying the biggest percentage gains, while communication services (.SPLRCL) and tech (.SPLRCT) were in the red. The S&P 500 posted eight new 52-week highs and no new lows; the Nasdaq Composite recorded 56 new highs and 86 new lows.

Hopes that the Fed will soon end its aggressive monetary policy tightening campaign spurred a rebound in the S&P 500 this month after the collapse of two U.S. mid-sized lenders sparked a selloff in March. Analysts expect first-quarter profits at S&P 500 companies to fall 5.2% year-on-year, the worst contraction since the third quarter of 2020 and a stark reversal from the 1.4% annual growth forecast at the beginning of the year, according to Refinitiv IBES data. Remarks later on Tuesday from voting members of the Fed's rate-setting committee will be parsed for more clues on the central bank's policy moves. Seven of the 11 major S&P sectors rose, with gains in material (.SPLRCM) and energy (.SPNY) shares offsetting losses in technology (.SPLRCT) stocks. The S&P index recorded six new 52-week highs and no new lows, while the Nasdaq recorded 43 new highs and 72 new lows.

Hopes that the Fed will soon end its aggressive monetary policy tightening have helped the benchmark S&P 500 (.SPX) stabilize so far in April after the collapse of two U.S. mid-sized lenders sparked a selloff last month. This marks a shift in traders' bets of a pause in the Fed's policy tightening after recent weak economic data raised the possibility of a U.S. recession. Data on Wednesday is expected to show consumer prices grew 5.2% in March after a 6.0% rise in February. Analysts expect first-quarter profits at S&P 500 companies to fall 5.2% year-on-year, a stark reversal from the 1.4% annual growth expected at the beginning of the year, according to Refinitiv data. ET, Dow e-minis were up 24 points, or 0.07%, S&P 500 e-minis were up 4.25 points, or 0.10%, and Nasdaq 100 e-minis were down 2.25 points, or 0.02%.

☆ CarMax speeds past quarterly profit estimates on cost cuts
▼ + stars: | 2023-04-11 | by ( ) www.reuters.com time to read: +1 min

Companies Carmax Inc FollowAutoNation Inc FollowApril 11 (Reuters) - CarMax Inc (KMX.N) on Tuesday posted fourth-quarter profit above analysts' estimates as cost cutting measures helped the pre-owned car retailer soften the blow from a slowdown in demand for vehicles. Demand for used cars was dented over the past year due to higher borrowing costs and soaring commodity and gasoline prices, weighing on CarMax's results. That demand for vehicles and related services helped auto retailer AutoNation Inc (AN.N) post a better-than-expected quarterly profit when it reported earnings in February. CarMax's adjusted fourth-quarter profit came in at 44 cents per share, ahead of Refinitiv IBES estimates of 24 cents per share. Its quarterly revenue came in at $5.72 billion, below analysts' estimates of $6.04 billion, as affordability concerns impacted sales.

Losses in megacap stocks such as Microsoft Corp (MSFT.O) and Amazon.com Inc (AMZN.O) weighed on the tech-heavy Nasdaq, while gains in industrial stocks such as Caterpillar Inc (CAT.N) boosted the Dow. Hopes that the Fed will soon end its aggressive monetary policy tightening helped the S&P 500 stabilize so far in April after the collapse of two U.S. mid-sized lenders sparked a selloff last month. Analysts expect first-quarter profits at S&P 500 companies to fall 5.2% year-on-year, a stark reversal from the 1.4% annual growth expected at the beginning of the year, according to Refinitiv data. Seven of the 11 major S&P sectors rose, with gains in industrial (.SPLRCI) and material (.SPLRCM) shares offsetting losses in technology (.SPLRCT) stocks. The S&P index recorded three new 52-week highs and no new low, while the Nasdaq recorded 32 new highs and 30 new lows.

☆ Explainer: What is Generative AI, the technology behind OpenAI's ChatGPT?
▼ + stars: | 2023-03-17 | by ( ) www.reuters.com time to read: +4 min

WHAT IS GENERATIVE AI? Like other forms of artificial intelligence, generative AI learns how to take actions from past data. The most famous generative AI application is ChatGPT, a chatbot that Microsoft-backed OpenAI released late last year. Generative AI likewise can take notes during a virtual meeting. Cybersecurity researchers have also expressed concern that generative AI could allow bad actors, even governments, to produce far more disinformation than before.

☆ Davos 2023: CEOs buzz about ChatGPT-style AI at World Economic Forum
▼ + stars: | 2023-01-17 | by ( Jeffrey Dastin | ) www.reuters.com time to read: +3 min

DAVOS, Switzerland, Jan 17 (Reuters) - Business titans trudging through Alpine snow can't stop talking about a chatbot from San Francisco. Businesses including CarMax Inc (KMX.N) have already used Microsoft and OpenAI's tech, such as to generate thousands of customer review summaries when marketing used vehicles. Such buzz carried through gatherings at Davos, like talk about a slide-generating bot dubbed ChatBCG after the management consulting firm. loadingGenerative AI is "a game-changer that society and industry need to be ready for," stated an article on the World Economic Forum's website. Reporting By Jeffrey Dastin in Davos, Switzerland; Editing by Kenneth Li and Gerry DoyleOur Standards: The Thomson Reuters Trust Principles.

☆ Companies’ Capital Spending Forecast to Slow in 2023 Amid Recession Fears
▼ + stars: | 2023-01-16 | by ( Kristin Broughton | ) www.wsj.com time to read: +8 min

Companies are expected to tap the brakes on capital investments this year as they assess the risk of a downturn and contend with higher financing costs. Capital spending in 2021 rose by 9% compared with 2020, the first year of the pandemic, EY said. After two years of spending heavily, some companies want to take a pause to digest the investments they’ve made, advisers said. FedEx Corp. last month lowered its capital spending forecast for the current fiscal year by $400 million, to $5.9 billion. The remainder said they don’t finance their capital spending plans through borrowing, or their borrowing isn’t sensitive to changes in interest rates.

☆ Used-car retailer CarMax posts plunge in profit, pauses share buyback
▼ + stars: | 2022-12-22 | by ( ) www.reuters.com time to read: +1 min

Dec 22 (Reuters) - CarMax Inc (KMX.N) on Thursday reported an 86% drop in quarterly profit and the largest U.S. used car retailer announced it was cutting expenses and pausing stock buybacks, as rising interest rates sap consumer confidence. The auto retail industry has been facing the brunt of consistent rate hikes and weakening consumer confidence. "We believe vehicle affordability challenges continued to impact our third-quarter unit sales performance, as headwinds remain due to widespread inflationary pressures, climbing interest rates, and low consumer confidence," CarMax said on Thursday. CarMax reported net income of 24 cents per share for the quarter through November, compared with expectations of 70 cents, as per Refinitiv data. Reporting by Priyamvada C and Kannaki Deka in Bengaluru; Editing by Maju SamuelOur Standards: The Thomson Reuters Trust Principles.

The final estimate of third-quarter U.S. GDP revealed gross domestic product increased at a 3.2% annualized rate, above the previous estimate of 2.9%. Micron Technology Inc (MU.O) slipped 3.2% after the chipmaker forecast a bigger-than-expected second-quarter loss, sparking declines in peers. Declining issues outnumbered advancers for a 5.83-to-1 ratio on the NYSE and a 3.28-to-1 ratio on the Nasdaq. The S&P index recorded no new 52-week highs and nine new lows, while the Nasdaq recorded 27 new highs and 180 new lows. Reporting by Shubham Batra, Amruta Khandekar, Ankika Biswas and Johann M Cherian in Bengaluru; Editing by Shounak DasguptaOur Standards: The Thomson Reuters Trust Principles.

Three sources briefed on OpenAI's recent pitch to investors said the organization expects $200 million in revenue next year and $1 billion by 2024. OpenAI was most recently valued at $20 billion in a secondary share sale, one of the sources said. The startup has already inspired rivals and companies building applications atop its generative AI software, which includes the image maker DALL-E 2. OpenAI has also attracted attention as an AI provider and potential Google search competitor, with ChatGPT answering queries for more than 1 million users so far. OpenAI warns users, ChatGPT "may occasionally produce harmful instructions or biased content."

☆ CarMax Shares Slump as Inflation Weighs on Used-Car Demand
▼ + stars: | 2022-09-29 | by ( Will Feuer | ) www.wsj.com time to read: 1 min

CarMax said its profit dropped by more than 50% in the latest quarter, missing Wall Street expectations. CarMax Inc. posted a steep drop in profit for the recently ended quarter, as inflation and economic concerns weighed on Americans’ demand for buying used cars, which have seen prices balloon amid a pandemic-related shortage of new cars. The used-car retailer saw profit drop by more than 50% as sales rose just 2%, the slowest pace since a rush in used-car purchases earlier in the pandemic.

☆ CarMax results fall short as inflation-hit buyers rethink purchases
▼ + stars: | 2022-09-29 | by ( ) www.reuters.com time to read: +2 min

Sept 29 (Reuters) - Shares of CarMax Inc (KMX.N) fell 20% in premarket trading on Thursday after the top U.S. used-car retailer's second-quarter results were slammed by the impact of rising inflation on consumer spending. Strong demand for personal transport has led to steady sales of both new and used cars in the United States so far, but rising interest rates and higher car prices are starting to upend that trend. Register now for FREE unlimited access to Reuters.com RegisterAuto research firm Cox Automotive, which tracks U.S. vehicle market trends, on Wednesday cut its forecast for new and used vehicle sales on worsening consumer sentiment. Consumers are pulling themselves out of the purchase process as rising interest rates and high vehicle prices make monthly payments unaffordable, said Cox Automotive Chief Economist Jonathan Smoke. Ford Motor Co's (F.N) shares tumbled last week after the automaker said it was experiencing higher inflationary pressures.

As for Ford, which reports results on Wednesday, Evercore said it expects a cut to the 2022 outlook. GM and Ford both must manage the costs of launching new electric vehicles. Ford will officially launch regular production of its electric F-150 Lightning pickup on Tuesday. In the United States, GM's sales for the first quarter fell by 20%. Ford's U.S. sales fell by 17% in the first quarter compared with a year ago.

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