Search

Wall Street ended last week down

Markets

Nikkei 225

32,698.81

▼ -82.73 / -0.25%

SSE Composite

3,150.62

▼ -47.28 / -1.48%

IBOVESPA

117,490.80

▼ -1,486.30 / -1.25%

Straits Times

3,189.68

▼ -1.92 / -0.06%

BMV IPC

53,430.60

▲ +88.69 / +0.17%

Dow Jones

33,762.38

▲ +34.95 / +0.10%

DAX 30

15,813.06

▼ -16.88 / -0.11%

BSE SENSEX

62,970.00

▼ -9.37 / -0.02%

FTSE 100

7,453.58

▼ -8.29 / -0.11%

JSE Top 40

68,980.52

▼ -150.23 / -0.22%

Last Week’s Highlights

Starbucks workers prepare for a strike

More than 3,000 Starbucks employees across over 150 stores in the United States have announced their intention to go on strike due to a controversy regarding Pride Month decorations. The Starbucks Workers United Union confirmed that in several stores, some Starbucks managers have banned or removed Pride Month decorations and flags. The company has denied these allegations and stated that it continues to promote the celebrations as long as safety guidelines are followed. However, in addition to the negative reaction from some conservatives towards companies supporting the LGBTQ+ community, the strikes, according to the union, also aim to pressure the company to improve wages and working conditions. The company is facing complaints filed with the National Labor Relations Board regarding alleged illegal practices.

CarMax beats estimates

CarMax Inc. reported that vehicle affordability remains a challenge due to high-interest rates and low consumer confidence. Despite this, the company managed to achieve higher quarterly profits thanks to implemented cost cuts. The company’s stocks rose by 8.8% as they also reported better-than-expected earnings in the first quarter. Although prices of used cars have recently declined, retailers have faced inflationary pressures and an increased supply of new vehicles, deterring consumers from buying second-hand cars. CarMax has reduced expenses by suspending hiring and halting share repurchases to cope with the current situation. While it exceeded investors’ low expectations, price, and volume trends are expected to continue challenging due to higher interest rates. In the quarter ended on May 31st, CarMax recorded an adjusted profit of $1.16 per share and net revenues of $7.69 billion, surpassing analysts’ estimates.

Coming Up This Week

Canopy Growth’s disappointing results

Canopy Growth Corp.’s stocks have experienced a decline following the release of disappointing fourth-quarter results. Both earnings per share and revenues fell below analysts’ expectations. The company also faced financial issues in its sports beverage division, leading to management changes and legal considerations. Despite this, Canopy Growth remains optimistic with a promising revenue increase in BioSteel and has implemented a transformation plan to reduce costs and enhance efficiency. Although analysts recommend selling Canopy Growth stocks, the average target price suggests a potential upside of 58.2%.

Apple may launch credit card in India

According to reports, Apple is exploring the possibility of launching its credit card and Apple Pay in India, following its recent foray into the country with the opening of its first retail store. It is said that Apple CEO Tim Cook met with the CEO and MD of HDFC Bank earlier this year, indicating an interest in establishing a partnership for the credit card launch. Additionally, the company has been in discussions with the Reserve Bank of India and the Central Bank of India. Apple is also exploring the possibility of introducing Apple Pay in the Indian market and has held discussions with the National Payments Corporation of India. Given Apple’s significant revenue growth in India in recent years and its interest in making the country a key manufacturing hub, analysts are optimistic about Apple’s stock, with a strong buy consensus rating.

All information provided was collected up to the last business day of the previous week of the release of this NewsFlight. The purpose of NewsFlight is to summarize and make accessible information on a variety of topics within the world of investing and personal finance, and thus cannot be considered formal research or reports. All sources utilized to compile the NewsFlight newsletter are considered trustworthy by the FlexInvest team. FlexInvest is not affiliated with and does not receive remuneration from the news sources used to compile NewsFlight. As well, any images or logos incorporated into the NewsFlight newsletter are not necessarily property of FlexInvest and may solely be included to provide context for the news covered. NewsFlight should not be taken as advice to sell or buy securities or to make any investment. When investing in securities or other financial products, there is always the potential to lose money or asset value. FlexInvest recommends that its users consider their investment objectives and risks before investing. Additionally, any projections or analysis made by authors of NewsFlight cannot be considered as a promise of future trends or returns. Opinions expressed in NewsFlight are not representative of FlexInvest.

Market News

The major US indices closed lower on Friday’s session and the streak of weekly gains came to an end. The negative numbers came in the wake of a week in which Federal Reserve Chairman Jerome Powell signaled that more interest rate hikes are on the horizon but also promised that the central bank will proceed with caution.

The hardest hit was the Nasdaq, mainly by tech stocks such as Microsoft, Tesla, and Nvidia, and down 138.09 points, or 1.01%, to 13,492.52. Meanwhile, the Dow Jones declined 219.28 points, or 0.65%, to 33,727.43, and the S&P 500 fell 33.56 points, or 0.77%, to 4,348.33.

Wild Card

More things to sip on...

Coinbase gets a win at the Supreme Court.
SoFi stock tumbles on new sell rating.
The US Government expands CHIPs Act eligibility to more firms.

Latest Market Insights