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Morning Bid: Bond crush stifles markets as $134 billion hits
  + stars: | 2023-09-26 | by ( ) www.reuters.com   time to read: +6 min
The yield spike has supercharged the U.S. dollar worldwide - both a reflection and aggravator of mounting financial stress far and wide. As Deutsche Bank notes, this is historically significant territory as the average of the 10-year yield going back to 1799 is around 4.50%. The Treasury sells $48 billion in two-year notes on Tuesday, $49 billion in five-year paper on Wednesday and $37 billion in seven-year notes on Thursday. Minneapolis Fed Bank President Neel Kashkari said on Monday the Fed probably needs to raise borrowing rates further. Private sector bankers are starting to brace for the worst, with JP Morgan chief Jamie Dimon reported overnight as warning: "I am not sure if the world is prepared for 7% (Fed rates)."
Persons: Jose Luis Gonzalez, Mike Dolan, South Korea's, Sterling, haven't, Neel Kashkari, Said Kashkari, Austan Goolsbee, JP Morgan, Jamie Dimon, Christine Lagarde, China Evergrande, Michelle Bowman, Christina Fincher Organizations: REUTERS, Federal Reserve, U.S ., Bank of Japan, South, Treasury, Deutsche Bank, Minneapolis Fed, Chicago Fed, European Central Bank, ECB, Dallas Fed's, Chicago Fed's, HK, Richmond Fed, Dallas Fed, Philadelphia Fed, Costco, Cintas, Thomson, Reuters Locations: Ciudad Juarez, Mexico, U.S, Wall St, Asia, Europe, Philadelphia, Washington
Instacart shoppers often end up with free groceries when they can't deliver an order. But for some shoppers, those kinds of last-minute obstacles are a perk: Instacart often lets shoppers keep all or some of the groceries for free. "We got all these groceries for free because we couldn't locate the right address," the poster says in the video. Instacart issues shoppers a debit card to pay for items. That means Instacart carries the cost of canceled or undeliverable orders.
Persons: , Instacart, iamlo.uie, didn't, It's Organizations: Service, Costco Locations: California
Jim Cramer says the stock market is 'too negative'
  + stars: | 2023-09-26 | by ( Jeff Marks | ) www.cnbc.com   time to read: +3 min
Every weekday the CNBC Investing Club with Jim Cramer holds a Morning Meeting livestream at 10:20 a.m. The S & P has pulled back roughly 4% this month, a result of higher government-bond yields and a stronger U.S. dollar . "I think things are too negative," Jim Cramer said Tuesday. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER .
Persons: Jim Cramer, I'm, Anthropic, We'll, Jim Cramer's, Jim Organizations: CNBC, Nasdaq, West Texas, Amazon Web Services, Costco Wholesale, Costco
Stock Market Today: Dow, S&P 500 Slip; Bond Yields Hold Around 4.5%
  + stars: | 2023-09-26 | by ( ) www.wsj.com   time to read: +1 min
Worries about rising bond yields and a strengthening dollar are dragging down stocks again. It settled Monday at a 16-year high a little above 4.5%, and it's still above that level. Rising yields have hurt stocks recently in part by stoking concerns that they could slow down the economy by increasing borrowing costs for businesses and consumers. The S&P 500 and Nasdaq Composite were down more than 1%, while the blue-chip Dow was about 300 points lower. The 10-year Treasury yield was hovering around 4.55%, a touch higher than Monday.
Persons: Dow, Brent Organizations: Treasury, Moody's Investors, Costco, Nasdaq
Share Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailRetailers will need to promote in order to drive sales, says Jefferies' Corey TarloweCorey Tarlowe, Equity Research Vice President at Jefferies, previews Costco's earnings report and the state of the consumer.
Persons: Jefferies, Corey Tarlowe Corey Tarlowe Organizations: Equity Research, Jefferies
Costco on Tuesday reported quarterly earnings that topped Wall Street's expectations, as shoppers turned to the membership club for groceries but bought fewer big-ticket items. As of the end quarter, Costco had 32.3 million paid executive memberships, an increase of 981,000 since the end of the prior quarter. Those higher-tier members now account for slightly over 45% of all paid membership, Galanti said. Costco echoed a trend seen at rival retailers, including Walmart and Target : Groceries are the category driving sales. In the year-ago fiscal fourth quarter, comparable sales rose 15.8% in the U.S., but since then they have largely decelerated.
Persons: Richard Galanti, Galanti Organizations: Costco, Walmart, Sam's, BJ's Wholesale Locations: U.S, LSEG, , Puerto Rico, Canada, China, Japan, Australia
Federal student loan payments are coming back in October and a trio of stocks are set to shine as borrowers cut their spending, according to Jefferies. Payments on federal student loans had been paused since March 2020 as part of a package of Covid-era relief measures. A recent poll of about 630 U.S. consumers with student loan debt found that the majority expect to pay $500 or less each month, Jefferies found. Walmart beat Wall Street's estimates for sales and earnings in its fiscal second quarter and hiked its full-year earnings forecast. Shares have popped 21% this year, leaving analysts to only see 3% further upside from here, according to LSEG.
Persons: Jefferies, That's, Randal Konik, WMT, — CNBC's Michael Bloom Organizations: Jefferies, Walmart, Wall, Costco Locations: Maxx, HomeGoods, Sierra
Here are some of the tickers on my radar for Tuesday, Sept. 26, taken directly from my reporter's notebook:If you like this story, sign up for Jim Cramer's Top 10 Morning Thoughts on the Market email newsletter for free.
Persons: Jim Cramer's
Costco still won't raise its annual membership fees, CFO Richard Galanti said Tuesday. Costco collected nearly $4.6 billion in fees for the past year, representing 72% of profits. Costco will not raise its annual membership fees, CFO Richard Galanti told analysts on the company's quarterly earnings call Tuesday. Because Costco sells merchandise at extremely low mark-ups, membership fees are a key way the company is able to turn a profit. Costco reported nearly $4.6 billion in revenue from membership fees last year, representing over 72% of the total annual profits of $6.3 billion.
Persons: Richard Galanti, , Galanti Organizations: Costco, Service, Netflix, Star, BJ's Wholesale, Sam's
September has been unkind to stocks – living up to its historical reputation as the weakest month for the S & P 500 . Still, some Club stocks have been able to buck the downward trend since the start of the month — and none more so than Humana (HUM). The health insurer advanced 7.3% through Friday's close, putting it among the top-10 performing stocks in the S & P 500 over that stretch. In a year largely characterized by outperformance in technology stocks, health care has been one of the worst S & P 500 sectors . The stock entered Monday's session down more than 11% in 2023, the third-worst of any Club stock.
Persons: Jim Cramer, Jim, Centene, Molina, it's, Ford's outperformance, , Shawn Fain, Ford, Honeywell's outperformance, Vimal, Morgan Stanley, Kupar, Darius Adamczyk, Jim Cramer's Organizations: Federal Reserve, Treasury, CVS Health, Molina Healthcare, McKesson Corp, Humana, Costco Wholesale, Ford, Costco, Club, Detroit, General Motors, Chrysler, United Auto Workers, GM, UAW, Reuters, Honeywell International, Meta, Street Journal, Morgan, CNBC, New York Stock Exchange, View Press, Getty Locations: Friday's, Kupar, New York
In the week ahead , Club name Costco (COST) reports its quarter after the closing bell Tuesday. The analysts also remove their price target, saying the generative AI narrative is "too positive a force to contend with." Club name Oracle (ORCL) gets a price target cut to $130 per share from $132 at BMO Capital, which keeps market perform (hold) rating. Jefferies downgrades Club name Foot Locker (FL) to hold from buy and cuts price target to $18 per share from $28. Citi lowers price target on Club name Starbucks (SBUX) to $104 per share from $112.
Persons: Jim Cramer, Guggenheim, Morgan Stanley, , Max, CloudWorld, Jefferies, Jim Cramer's, Jim Organizations: Dow, Nasdaq, Costco, Hollywood, Disney, Paramount, Comcast, Universal, Warner Bros Discovery, Writers Guild of America, Alliance, Television Producers, United Auto Workers, General Motors, Chrysler, Ford, UAW, Ford ., Club, Microsoft, OpenAI, Guggenheim, Apple, Pro, Oracle, BMO Capital, Jefferies, Nike, Citi, Starbucks, Jim Cramer's Charitable, CNBC Locations: Canada
As for today's edition, we're looking at how AI could upend the job of the junior banker, and the effect that'll have on Wall Street's traditional career path. AdvertisementAdvertisementAspiring financiers need to look no further than investment banks' analyst programs to get a foot in the door. But this crucial piece of Wall Street's ecosystem could be upended by the rise of artificial intelligence. AdvertisementAdvertisementBuy-side firms have largely held off on going after college graduates, instead pointing them toward banks' analyst programs. Regardless of what direction things go, what's clear is the type of work AI excels at falls directly in junior bankers' wheelhouse.
Persons: Insider's Bianca Chan, Emmalyse Brownstein, Alyssa Powell, Steve Cohen's, Cohen, millennials, Elon Musk, Mark Zuckerberg, Jeff Bezos, ChatGPT, Xavier Lalanne, It's, Saint, Givenchy, Donald Glover, Childish Gambino, Will Smith, Catherine Zeta, Jones, krisanapong detraphiphat, Dan DeFrancesco, Naga Siu, Hallam Bullock, Lisa Ryan Organizations: Service, Guild of America, Hollywood, Tech, LinkedIn, Meta, National, Costco, Lowe's, Tractor Supply, Brands, Getty Images Finance Locations: Wall, Silicon, Paris, New York City, San Diego, London, New York
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Costco members will soon be able to receive low-cost health care through a partnership with Sesame. In addition to $29 virtual visits, Costco members will receive discounts on other services. Through a new partnership with Sesame, a healthcare marketplace startup backed by Google, Costco members can receive virtual doctor's visits for $29, plus discounts on other telehealth and in-person services, Sesame said Monday. The move into primary care follows similar investments by retailers Walmart and Amazon, as well as from pharmacies CVS and Walgreens. In addition to $29 virtual visits, Costco members will be able to receive virtual mental health sessions for $79, health checkups for $72, and a 10% discount on other services.
Persons: Sesame, , David Goldhill, Goldhill Organizations: Costco, Walmart, Amazon, CVS, Walgreens, Service, Google, Costco Members, Bloomberg
New York CNN —Costco customers are going to the mattresses over mold. The US Consumer Product Safety Commission announced the recall of 48,000 mattresses sold exclusively at Costco due to risk of mold exposure. Mold could have developed, leading to health risks for consumers with compromised immune systems, damaged lungs or a mold allergy. The CPSC said only mattresses with the model and item numbers listed on its website are included in the recall. The DreamAway 8-inch mattress has a gray base with “Novaform” printed in white letters,” the CPSC said.
Persons: CPSC Organizations: New, New York CNN, Costco, US Consumer Product Safety Commission, Northwest Locations: New York, Northwest United States, San Francisco Bay, San Bernardino , California, California
Patients with private health insurance aren't likely to see a drop in costs from the negotiations. Longo said the price-setting provisions will drive research and investment away from treatment options for Medicare patients. If drug companies won't come to the negotiating table to lower drug prices paid by private insurers, those insurers could take the companies' drugs off their lists of covered medications. Or, if private insurance companies don't negotiate drug prices down for their patients, patients in some cases could seek out different insurance. "These are not full solutions, but they are the beginning of cracks in the facade" of drug companies' constant price hikes, Feldman said.
Persons: Biden, Juliette Cubanski, Jeffrey Davis, Davis, Richard Frank, , Nicole Longo, Longo, it's, — aren't, Robin Feldman, Feldman, Cuban's Organizations: Medicare, Healthcare, Morning, Centers, Services, Congressional, McDermott, Consulting, Brookings Schaeffer Initiative, Health, Pharmaceutical Research, Manufacturers of America, PhRMA, University of California Law School, Costco, Pharmaceutical Locations: Lower
And the US economy’s surprising resilience, despite 11 rate hikes, has raised hopes of a soft landing becoming a reality. “I’ve always thought that the soft landing was a plausible outcome, that there was a path to a soft landing,” he said. But historical records show that a soft landing has only occurred once in the 1990s, or perhaps even a handful of times. The US Commerce Department releases its final estimate of second-quarter gross domestic product. The US Commerce Department releases August data on household income, spending, and the Fed’s preferred inflation gauge.
Persons: it’s, Jerome Powell, Powell, “ I’ve, , , Powell’s, ” “ Jerome Powell, ” Quincy Krosby, Krosby, ” Krosby, Matt Egan, ” Neil Bradley, “ We’ve, Read, Christine Lagarde, Michelle Bowman, Austan Goolsbee, Lisa Cook, John Williams Organizations: CNN Business, Bell, DC CNN, Fed, LPL, CNN, Corporate, US Chamber of Commerce, European Central Bank, Costco, Global, Board, Survey, US Commerce Department, Micron, Nike, US Labor Department, National Association of Realtors, Carnival Corp, University of Michigan, New York Fed, China’s National Bureau of Statistics Locations: Washington
It was another downer of a week on Wall Street with all three major averages posting steep losses despite a bounce back on Friday. The S & P 500 and the technology-heavy Nasdaq fell 2.3% and 2.9% this week, respectively, while the Dow Jones Industrial Average lost 1.5%. Federal Reserve: The central bank signaled this week that it was planning to keep rates higher for longer to beat down inflation. ET: Personal consumption expenditure Before the bell: Carnival (CCL) (See here for a full list of the stocks Jim Cramer's Charitable Trust is long.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Persons: downer, Jim Cramer, carmakers, hasn't, Jim, " Cramer, Stanley Black, Decker, Jim Cramer's, Ferguson, SYNNEX, HB Fuller, Jabil, Cramer's, Emily Elconin Organizations: Nasdaq, Dow Jones Industrial, Federal Reserve, Republican, Democratic, UAW, Big, United Auto Workers union, General Motors, Club, Ford, Fed, Stanley, Jim Cramer's Charitable, Costco, Citi, Meta, Industries, Cintas, Natural Foods, Micron Tech, Concentrix Corp, Worthington, Gross, Accenture, BlackBerry, Vail Resorts, MTN, CNBC, United Auto Workers, Stellantis NV, Bloomberg, Getty Locations: SWK, Stellantis NV Toledo, Toldeo , Ohio
I have seen this myself when I go to the grocery store and buy five items … for $60. As we know, inflation has resulted in higher consumer costs: higher prices for groceries, gas, and other everyday goods and services. Take advantage of memberships like Costco, where you can buy items in bulk and fuel up at Costco gas stations for less per gallon than the competition. When I sat down and went through my budget, I found several items I didn't know I was even paying for. Leave room for small splurgesYou can save money and not deny yourself happiness.
Organizations: Federal Reserve, Costco, Marriott, Netflix, HULU, Apple
Retail executives generally agree that retail theft is worse than they've ever seen. Even so, leaders from Costco, Lowe's, Best Buy, and Tractor Supply have said their businesses aren't so affected. The companies have five striking similarities that are helping them win the war on retail theft. "Organized retail crime is worse now than I've ever seen it," Tractor Supply CEO Hal Lawton told Insider in August. Meanwhile, a typical Tractor Supply location may have as many as eight people working in a relatively small, 20,000 square-foot store.
Persons: Hal Lawton, I've, Marvin Ellison, Corie Barry, Richard Galanti, We've, Lawton, Dominick Reuter, John Tlumacki, Ben Tobin, they're, Paul Hennessy, Lowe's, Mario Tama, Barrie, Ellison Organizations: Costco, Lowe's, Tractor Supply, Service, Goldman Sachs, Conference, Supply, Massachusetts Costco, Boston Globe, Getty, Electronics, Retailers, Tractor Locations: Wall, Silicon, Massachusetts, Costco, Orlando
Jeff Marks: The upcoming earnings report should be good considering how strong the beer business is doing. Jim Cramer: Estee Lauder CEO Fabrizio Freda was adamant that this quarter wouldn't be any good so everyone is selling it. (Ronald) Jim Cramer: There is no pressure that could pull oil down with the Saudi Arabia oil cuts and Russia export cuts. Jeff Marks: These oil stocks have become great hedges to inflation again, much like they were last year. As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade.
Persons: Jim Cramer's, Jeff Marks, Jim Cramer, Johnson, Arbitrageurs, Greg, There's, We're, Elliott Management's, I'd, Elliott, Morgan Stanley, Carey, we've, James Gorman, Jim, Estee Lauder, Fabrizio Freda, there's, Dave Cote, Darius Adamczyk, Vimal Kapur, Darius, hasn't, , Ronald, Rick, We've Organizations: Investing Club, Broadcom, VMWare, AAA, Constellation Brands, Modelo, Elliott Management, Cisco, Palo Alto Networks, Honeywell, Morgan, Morgan Stanley Laguna, GE Healthcare, Natural Resources, Devon Energy, Halliburton, HAL, Costco, Walmart, Kirkland, CNBC Locations: Canada, Johnson, Mel , Pennsylvania, Manville, New Jersey, U.S, Carey , Virginia, Asia, Kyle , Wisconsin, PANW, Omar , Colorado, Saudi Arabia, buybacks, GEHC
How to trade Costco ahead of next week's earnings
  + stars: | 2023-09-22 | by ( ) www.cnbc.com   time to read: 1 min
In this videoShare Share Article via Facebook Share Article via Twitter Share Article via LinkedIn Share Article via EmailHow to trade Costco ahead of next week's earningsThe 'Options Action' traders talk Costco strategy ahead of earnings next week
Organizations: Costco
CNBC's Jim Cramer on Friday told investors what to look out for in the week ahead, and focused on companies whose earnings reports could lend insight into consumer spending. On Tuesday, Cintas and Costco report earnings. He thinks investors should also pay attention to whether Costco is seeing any kind of consumption slowdown to help gauge consumer spending. Paychex , a payroll processors for small and medium-sized businesses, reports earnings on Wednesday. On Thursday, Cramer will look for the earnings report from Accenture , a company that helps businesses digitize their operations.
Persons: CNBC's Jim Cramer, Cramer Organizations: United Auto Workers, Ford Motor, Costco, Accenture Locations: Cintas
Headwinds are piling up for the market heading into the final week of the month, as September lives up to its reputation as a horrible month for Wall Street. Wolfe Research's Rob Ginsberg pointed out in a note this week that the CBOE Volatility Index (VIX) doesn't suggest much fear in markets. "We have a potential shutdown in Washington, as well as the UAW strike, which could potentially create some volatility in jobs data in particular." But investors heading into the final trading week of September will likely see a continuation of those losses, if history is any indication. "We could see the market experience additional weakness over the next several weeks," said Sam Stovall, chief investment strategist at CFRA.
Persons: Wolfe, Rob Ginsberg, VIX, Amy Wu Silverman, Aditya Bhave, Shannon Saccocia, Saccocia, there's, RBC's Wu Silverman, what's, Goldman Sachs, Scott Rubner, Sam Stovall, Michael Bloom, Jeff Cox Organizations: Wall, Dow Jones, Reserve, Bank of America U.S, UAW, CFRA, Costco Wholesale, Nike, Chicago, Dallas Fed, New, Richmond Fed, Costco, Micron, . Kansas City Fed Manufacturing, BEA, Auto, PCE Deflator, Chicago PMI Locations: Washington, Detroit, . Kansas, Chicago, Michigan
There was lots of consumer stock research from Wall Street on Friday, including reports on Club names Costco (COST), Procter & Gamble (PG), beer maker Constellation Brands (STZ) and off-price retailer TJX Companies (TJX). HSBC also said Costco's premium stock multiple is worth it given management's strong execution, sustainable competitive advantages, and growth outlook. The analysts said that P & G has built "one of the strongest set of capabilities in the consumer staples sector." You will not see us trade Costco. TJX YTD mountain TJX Companies YTD In a note Friday, UBS sees department stores still losing share to off-price retailers in both sales and earnings before interest and taxes (EBIT) dollars over the next 10 years and beyond.
Persons: We're, Goldman Sachs, Goldman, Bill Newlands, Jim, TJX, It's, Jim Cramer's, Jim Cramer Organizations: Wall, Costco, Procter, Gamble, Constellation Brands, TJX Companies, HSBC, Coresight Research, Gamble YTD HSBC, Constellation, Modelo, Corona, Constellatio Brands, Elliott Management, UBS, Marshalls, Burlington, Ross Stores, CNBC, Corbis, Getty, & & $ Locations: U.S, Mexican, Maxx, Teterboro , New Jersey
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