Coffee With Greta: Best Buy Sales Tumble, the Stock is Still Up
DJIA Futures: +134 (+0.4%)
SPX Futures: +20 (+0.5%)
NASDAQ Futures: +86 (+0.7%)
Good morning friends!
Futures are popping after back-to-back losing sessions.
Let’s get right to it!
Best Buy Tops Q2 Expectations Even As Sales Tumble
Best Buy (BBY) shares are up 1.6% ahead of the open after beating fiscal Q2 expectations.
The electronics retailer reported adjusted earnings of $1.54 per share on $10.33 billion in revenue.
That was better than analysts’ expectations for adjusted EPS of $1.27 on $10.24 billion in revenue.
Same-store sales dropped 12.1% year over year in the quarter as inflation forced consumers to pull back on spending.
That was better than Best Buy’s forecast for a 13% drop.
The CEO said Best Buy is “focused on balancing our near-term response to difficult conditions and managing well what is in our control.”
The company did not give specific guidance but said it expects a larger sales decline in Q3.
Big Lots Rises on Smaller Q2 Loss than Expected
Big Lots (BIG) shares are up 1.4% in premarket trade after reporting a smaller-than-expected loss in the second quarter.
The discount retailer reported an adjusted loss of $2.28 per share on $1.35 billion in revenue.
That was better than analysts’ expectations for an adjusted loss of $2.47 per share on $1.46 billion in revenue.
Same-store sales fell 9.2% vs expectations for a 9.8% decline.
The CEO said, “We remain laser focused on helping our customers navigate these challenging times by delivering outstanding value across our assortment.”
Big Lots forecast same-store sales will be down in the low double-digit range in the current quarter.
Oil Prices Fall on Demand Concerns
Oil prices are lower today as the market anticipates higher interest rates will cause an economic slowdown and soften demand.
West Texas Intermediate crude futures are down 2.4% to under $95 bbl while Brent crude futures are down 2.9% to $102 bbl.
The Fed is expected to continue aggressive rate hikes with the Fed Chair saying it will likely cause some economic hardship.
The oil market has been in a back and forth between demand concerns and supply worries.
The American Petroleum Institute releases its data on U.S. inventory levels later today.
Consumer Confidence Expected to Rebound
The University of Michigan releases its final August consumer confidence index at 10:00 a.m. ET.
That survey is expected to show confidence rose to 97.4 this month from 95.7 in July.
Consumers have been feeling better about the impact of inflation since the Fed began larger rate hikes to tackle high prices.
Lower gas prices have also alleviated some of the price concerns among Americans.
JOLTS on Deck
The Labor Department’s July Job Openings and Labor Turnover Survey (JOLTS) will be released at 10:00 a.m. ET.
That survey is expected to show the number of job openings in the U.S. economy dropped to 10.3 million last month from 10.7 million in June.
That would be the second straight monthly decline but available jobs would still outnumber unemployed workers.
This is the first piece of key labor market data this week.
ADP releases the August private payrolls report on Wednesday followed by the official Labor Department August jobs report on Friday.
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