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Nvidia, Wall Street’s AI darling, did not disappoint pushing shares near record, Dollar Tree latest retailer to warn on crime, Boeing reveals 737 Max supplier defect, Subway sandwich chain sold and investors weigh in on Fox GOP debate highlights. FOX Business is providing real-time updates on the markets, commodities and all the most active stocks on the move.
Covered by: FOX Business Team
Stocks mixed as investors digest ongoing earnings
Nvidia shares near record after latest results cement AI dominance
Boeing warns of a supplier defect for the 737 Max jet
Dollar Tree latest retailer to warn on in-store theft
Mortgage rates, already above 7%, due today
Fox GOP Debate highlights U.S. economic headwinds
Federal Reserve’s Kansas Symposium kicks off
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Coverage for this event has ended.
Walmart is teaming up with a unit of Google parent Alphabet to expand their drone delivery business.
Elon musk, SpaceX
The Department of Justice has filed a lawsuit accusing Elon Musk’s SpaceX of discriminating against asylum seekers and refugees in its hiring decisions.
The DOJ alleges that SpaceX “routinely discouraged asylees and refugees from applying and refused to hire or consider them, because of their citizenship status, in violation of the Immigration and Nationality Act (INA).
“According to the suit, SpaceX wrongly claimed that federal regulations restricted the company to only hiring U.S. citizens and lawful permanent residents, also known as green card holders.
This is a developing story. Please check back for updates.
Nvidia shares near a fresh record after quarterly results did not disappoint in its latest quarter securing its position as the dominant AI leader.
The stock has advanced over 200% this year. Goldman Sachs, on Thursday, raised it price target to $605 from $495.
Shares of Petco are down on Thursday, following the company’s second quarter earnings report that revealed it was cutting its 2023 forecast due to consumer spending and discretionary business.
The retailer did report meeting expectations for adjusted earnings while also surpassing estimates on revenue for the second quarter.
“In Q2, we delivered solid top line results and strong free cash flow,” Petco CFO Brian LaRose said in a statement.
“That said, the shift in consumer spending and pressures on our discretionary business mean we’re revising our guidance accordingly,” he added. “Looking ahead, we remain focused on debt paydown and cash flow, both of which will be supported by our productivity initiatives in addition to tightly controlled expense management.”
In the second quarter of 2023, Petco delivered net revenue of $1.53 billion, up 3.4% versus 2022, driven by strength in the company’s consumables business and services and other business.
Meanwhile, second quarter revenue growth was partially offset by the company’s supplies and companion animal business, down 9.4% versus last year.
On Wall Street, shares of Petco are down roughly 20% on Thursday, after dropping around 25% the last five days.
Dollar Tree store location.
Dollar Tree forecasted its annual profit below estimates on Thursday, penning the guidance to higher costs and change in consumer spending to lower-margin items.
Gross margins for the quarter dropped 290 basis points from 2022 due to a dip in demand for discretionary goods.
The dollar store chain also said its expenses jumped to 25.3% of total revenue during the second quarter, powered by higher labor wages and higher cost of utilities from “unseasonably high temperatures”.
Meanwhile, Dollar Tree CFO Jeff Davis said the profit outlook was also impacted by unfavorable shrink trends and higher diesel fuel prices.
Dollar Tree said it now expects to earn in the range of $5.78 to $6.08 per share in fiscal 2023, compared with its prior outlook of between $5.73 and $6.13. Analysts on average expect earnings per share of $6.03, according to Refinitiv IBES data.
On Wall Street, shares of Dollar Tree are down across the board, slipping roughly 9.9% the last five days, 6.2% the last quarter and nearly 9.5% year-to-date.
Reuters contributed to this post.
Boeing 737MAX 8
Boeing said on Wednesday that it has identified a new quality problem related to the 737 MAX and supplier Spirit AeroSystems.
The airplane manufacturer said the quality issue resulted in improperly drilled holes on the aft pressure bulkhead.
Boeing also said the defect would delay near-term deliveries, forcing the company to evaluate whether it will now miss its 2023 delivery target of at least 400 737s.
Boeing confirmed that the latest issue would pause the first MAX 8 delivery to Malaysia Airlines, which was scheduled for Aug. 28.
So far, Boeing believes the defect is limited to a portion of its bestselling MAX 8 model, but the company is looking into whether older-model 737 Next Generation jets are also impacted.
Meanwhile, Spirit said it has implemented changes to its manufacturing processes to correct the issue. The Federal Aviation Administration said the issue was not flight critical.
Reuters contributed to this post.
Which of the 2024 GOP candidates stood out? Political and economic experts weigh in the day after.
Fox’s GOP debate, the first as the 2024 race for the White House heats up, kicked off with a spotlight on the economy and challenges with Bidenomics.
Live Coverage begins here
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