Choppy trading ends week as rate fears outweigh job growth, oil slides| September 2, 2022

Date:

Duluth Trading drops on earnings report, outlook

Duluth Holdings Inc.

$

7.91

Duluth Holdings lost more than 8% Friday. The maker of casual wear, workwear and accessories lowered its full year outlook after missing Wall Street revenue and profit estimates.

The owner of the Duluth Trading brand sees fiscal 2022 net sales of $680 million to $705 million, down from the previously guided $730 million to $755 million. Earnings per share are now expected to be $0.61 to $.71 per diluted share compared to the previous estimate of $0.93 to $1.02 per diluted share.

Fiscal second quarter revenue fell 5% to $141.5 million. The estimate was $156.2 million.

Net income for the three months ended July 31 was $2.4 million, or 7 cents, compared to $9 million, or 27 cents, a year ago. Wall Street expected 15 cents.

Breaking News

Dow, S&P, Nasdaq tumble to end the week

U.S. stocks reversed all gains on Friday to close lower across the board despite the solid monthly jobs report for August in which employers added 315,000 workers. For the week, the S&P 500 and Dow Jones Industrial Average fell 3% a piece, while the tech-heavy Nasdaq Composite lost 4.2%. 

Symbol Price Change %Change
WBA $35.27 0.01 0.01
CVS $99.33 -0.59 -0.60
RAD $6.84 0.10 1.41

Pharmacies around the nation have begun rolling out updated COVID-19 boosters which target the most common omicron strain.

The new boosters were authorized by federal health officials earlier this week in hopes of preventing another winter surge in cases while simultaneously reducing the continuing spread of the BA.5 omicron cases.

Yogurt maker Chobani pulls initial public offering

Chobani has decided not to go public at this time. The food company specializing in strained yogurt told the Securities and Exchange Commission: “The company has determined not to pursue, at this time, the contemplated initial public offering….” No reason was given in the filing.

The company registered for an IPO in November. It stated it planned to use proceeds to pay down debt and buy back units held by executives. Any remaining proceeds would go towards capital investment or other general corporate purposes.

In March, the company paused plans due to market conditions. An initial offering could value the company between $7 to $10 billion, said media reports at the time.

U.S. markets are ‘very messy’ and unlike any previous economic pattern: Ray Wa

Constellation Research analyst and founder Ray Wang provides professional analysis of the U.S. markets as the Nasdaq is on pace for its sixth down in a row on ‘Cavuto: Coast to Coast.’

Developing Story

Dow gives up 300+ point rally

Early afternoon U.S. stocks gave up the bulk of earlier gains driven by job growth in August of 315,000 positions. The Dow Jones Industrial Average reversed a 300+ point gain.

Dow Jones Averages.

$

31989.42

While Salesforce, JPMorgan and Chevron held up, Dow and 3M weighed on the average.

A consortium led by China’s Hollysys Automation Technologies management plans to take the U.S.-listed automation and control system maker private in a deal that would value the firm at $1.8 billion, people with knowledge of the matter said.

The management team, led by founder and Chief Executive Officer Wang Changli, has won endorsement for the deal from the municipal government of Beijing, where the company is based, the people said.

The team, acting under the local government’s guidance, has joined hands with a Beijing-based state firm for the potential deal, they added.

Bayer to pay $40M to settle whistleblower lawsuits over Trasylol, Avelox and Baycol

Symbol Price Change %Change
BAYRY $12.97 0.15 1.14

Bayer Corporation and its related entities have agreed to pay $40 million to resolve alleged violations of the False Claims Act in connection with the drugs Trasylol, Avelox and Baycol, the Justice Department said.

A “whistleblower” lawsuit accused the drugmaker of paying kickbacks to hospitals and physicians to induce them to utilize the drugs Trasylol and Avelox, and also marketed these drugs for off-label uses that were not reasonable and necessary.

The complaint further alleges Bayer downplayed the safety risks of Trasylol.

A second lawsuit relating to Bayer’s statin drug, Baycol, alleges that Bayer knew about, but downplayed, Baycol’s risks of causing rhabdomyolysis.

NASA schedules Saturday launch for Artemis I

NASA is targeting Saturday at 2:17 p.m. EDT for the launch of Artemis I, the first integrated test of NASA’s Space Launch System (SLS) rocket, Orion spacecraft, and the ground systems at the agency’s Kennedy Space Center in Florida.

The Artemis I flight test is an uncrewed mission around the Moon aimed at paving the way for a crewed flight test and future human lunar exploration as part of Artemis program.

Live coverage of events will air on NASA Television, the NASA app, and the agency’s website at: https://www.nasa.gov/live.

The launch countdown will resume Saturday at the opening of a planned 2.5 hour built in hold, which will begin at 4:37 a.m.

NASA’S ARTEMIS 1 MISSION MOON ROCKET LAUNCH SCRUBBED AFTER DELAYS

Lufthansa cancels hundreds of flights as pilots strike over pay

Symbol Price Change %Change
DLAKY $6.00 0.15 2.53

Pilots at Lufthansa went on strike on Friday, forcing the German airline to cancel hundreds of flights, stranding holidaymakers.

The airline said it had cancelled about 800 flights at its main bases in Frankfurt and Munich on Friday, affecting 130,000 passengers, and said it was working flat out to minimize the impact of the strike.

Labor union Vereinigung Cockpit (VC) had called on more than 5,000 Lufthansa pilots to stage a 24-hour walkout, saying the latest round of wage talks had failed.

Strikes and staff shortages have already forced several airlines, including Lufthansa, to cancel thousands of flights this summer, leading to long queues at major airports, frustrating people keen to start travelling again after COVID-19 lockdowns.

The VC union is demanding a 5.5% pay rise this year and automatic inflation compensation thereafter as well as better terms for entry-level pilots.

Lufthansa has said VC’s demands would raise its staff costs by 40% or around 900 million euros ($899 million) over the next two years.

A dating sight for right minded individuals

Investor Peter Thiel has made billions from founding and backing companies including PayPal. In one of his latest finds, he provided a small round of seed funding to a dating site that serves conservatives. Thiel, an early backer of then presidential candidate Donald Trump, has been critical of those who shun right leaners in Silicon Valley.

Lululemon shares jump

Lululemon shares are headed for the best percentage increase since March 2020, when it rose 11.86% as tracked by Dow Jones Market Data Group.

The athleisure clothing maker posted revenue of $1.87 billion a 29% jump beating estimates. Comp store sales soared 25%.

Lululemon Athletica Inc.

$

326.36

Breaking News

Dow, S&P, Nasdaq rise after solid jobs report

All three of the major averages rose Friday after the August jobs report showed employers added 315,000 workers while the unemployment rate inched up to 3.7%. Still, for the week stocks are headed for losses. In commodities, oil gained nearly 3% to the $89 per barrel level. 

Meet the new CEO of Starbucks

Starbucks announced it has hired Laxman Narasimhan as its new CEO. He will replace Howard Schultz who returned to the coffee giant after Kevin Thompson retired. Narasimhan will inherit a company which is seeing a national wave of unionizing.

Breaking News

The August jobs report was inline with expectations a signal the U.S. economy is holding up while facing down inflation.

Shell’s CEO Ben van Beurden to step down

Shell’s Chief Executive Ben van Beurden will be stepping down next year after leading the British multinational oil and gas company since 2014.

Shell has four candidates on a shortlist to replace him, sources told Reuters.

The candidates have been narrowed down to Wael Sawan, Shell’s head of integrated gas and renewables and Huibert Vigeveno, who heads the company’s refining operations of downstream.

Recently appointed Chief Financial Officer Sinead Gorman and Zoe Yujnovich, head of upstream, are also seen as possible successors.

Click here to read more on the story: Shell’s CEO Ben van Beurden to step down next year, successors lined up

August jobs report to release Friday

The key economic report of the week, the August employment report out Friday morning, is expected to show a solid jobs market that’s starting to cool off.

Economists anticipate the Labor Department to say the U.S. economy added 300,000 new nonfarm jobs in August. That’s down from a blowout gain of 528,000 in July.

“If the consensus among economists is close to correct, the number of jobs added in August will be the lowest in over a year,” said Mark Hamrick, senior economic analyst at Bankrate.com. “At the same time, the unemployment rate sits at 3.5%, the lowest point since the pandemic, matching a decades low level.”

The manufacturing sector likely added 20,000 jobs in August, trailing the larger-than-expected increase of 30,000 the prior month.

Look for hourly earnings to increase 0.4% month-over-month and to jump 5.3% from a year ago. 

Click here for more: Jobs report, Lululemon shares rise and more: Friday’s 5 things to know

California’s electrical grid operator urges conservation for 3rd-straight day amid ‘worst heat wave’

California’s grid operator has issued a statewide call for energy conservation for a third straight day as the state continues to endure record-high temperatures.

In the California Independent System Operator’s (ISO) most recent Flex Alert issued for Sept. 2, 2022, the ISO has called for voluntary electricity conservation amid triple-digit temperatures, including encouraging homeowners not to use major appliances between 4 p.m. and 9 p.m. The alert also urges homeowners not to set their thermostats any lower than 78 degrees.

“Consumer conservation efforts helped maintain power grid stability yesterday, and the California Independent System Operator (ISO) is calling for additional conservation and preparing for possible emergency actions as the state and much of the Western U.S. endure the worst heat wave so far this summer,” an ISO news release read.

“Additional calls for conservation are likely through the Labor Day Holiday,” it added.

Here’s more on the story:
California’s electrical grid operator urges restraint amid ‘worst heat wave’ this year

Conservative dating app ‘The Right Stuff,’ founded by Trump officials, set to launch

A new dating app called The Right Stuff is set to go live later this month and promises to be a non-woke alternative for conservatives seeking a date with someone who shares their values.

The Right Stuff was co-founded by former Trump administration officials John McEntee, Daniel Huff and Isaac Stalzer, who found from their dating experiences in Washington, D.C., and New York City that it was difficult to find other conservatives on traditional dating apps.

McEntee says the biggest deal-breaker for conservatives and liberals alike when it comes to dating is whether the other person holds the opposing political affiliation. But all the current dating apps are targeted toward the left, he says, and many require right-leaning users to endorse progressive causes to even sign up.

“Your only options are left wing,” McEntee told FOX Business, referring to the array of dating sites available today. “There’s a climate change tag, there’s no Second Amendment tag. There’s a feminism tag … BLM tag, there’s an LGBTQ tag, but there’s no pro-life tag.”

For more information on the app, click here: Non-woke dating site, backed by Peter Thiel, launching soon

Stock futures suggest gains ahead of August jobs report

U.S. equity futures were trading higher ahead of the most anticipated economic report of the month.

The major futures indexes suggest a gain of 0.1% when the opening bell rings for the final trading day of the week.

Keep in mind, U.S. equity and bond markets will be closed on Monday for Labor Day.

Oil was higher Friday on bets that OPEC+ will discuss output cuts at a meeting on Sept. 5.

U.S. West Texas Intermediate crude futures traded around $89.00 a barrel. Brent crude futures were around $95.00 a barrel.

The key economic report of the week, the August employment report, is expected to show a solid jobs market that’s starting to cool off.

Economists anticipate the Labor Department to say the U.S. economy added 300,000 new nonfarm jobs in August. That’s down from a blowout gain of 528,000 in July.

The unemployment rate is anticipated to hold steady at 3.5%.

In Asia, the Nikkei 225 in Tokyo lost less than 0.1%, the Hang Seng in Hong Kong sank 0.7% and China’s Shanghai Composite Index added 0.1%.

On Wall Street, the benchmark S&P 500 index rose 0.3% on Thursday to 3,966.85, rebounding from a four-day string of declines.

The Dow Jones Industrial Average finished up 0.5% at 31,656.42. The Nasdaq slid 0.3% to 11,785.13 for its fifth daily drop.

Nissan looks to make $7,500 electric vehicle tax credit more available to customers

Nissan Motor Co. is looking to make an aggressive push to help customers take advantage of a new U.S. law that provides up to $7,500 in tax credits for the purchase of an electric vehicle.

Under the Inflation Reduction Act of 2022, which President Joe Biden signed into law last month, a tax credit is made available for qualifying electric vehicles that are assembled in North America.

The Nissan Leaf, the company’s signature electric car, is among those produced by Nissan that qualifies under the law, but it must contain a battery built in North America to be eligible for the tax credit – a requirement that is prompting the new change.

Read more on the story by clicking here: Nissan looks to make $7,500 electric vehicle tax credit more available

Gasoline continues to move lower

The average price of a gallon of gasoline slipped on Friday to $3.809, according to AAA. Thursday’s price was $3.829. 

Gas has been on the decline since hitting a high of $5.016 on June 14.

Diesel’s recent rise paused on Friday slipping to $5.076 from $5.086 per gallon.

Oil heads for losing week

Oil benchmarks are on track for a steep weekly decline as fears of China’s COVID-19 curbs and weak global growth weighed on the market.

Oil was higher Friday on bets that OPEC+ will discuss output cuts at a meeting on Sept. 5.

U.S. West Texas Intermediate crude futures traded around $88.00 a barrel. Brent crude futures were around $94.00 a barrel.

Both benchmark contracts slid 3% in the previous session to two-week lows. Brent was headed for a weekly drop of nearly 7%, and WTI was on track to fall about 5% for the week.

Cryptocurrency prices for Bitcoin, Ethereum and Dogecoin were lower Friday morning.

Bitcoin was trading around $20,000, after trading lower in six of the last eight days. Bitcoin has traded down more than 6% in the past week.

The cryptocurrency is down more than 56% year-to-date.

Ethereum was trading around $1,500. For the week, Ethereum was trading lower by more than 6%.

Dogecoin was trading at 6 cents and is down more than 9% in the past week.

Amazon plans to appeal unionization decision: ‘we strongly disagree’

The Amazon Labor Union picked up a win on Thursday when a hearing officer for a federal labor board blocked the ecommerce giant’s attempt to overturn a historic union win.

The win is a relief for the grassroots group of former and current workers who claimed an unexpected victory involving a Staten Island, New York, warehouse.

Amazon filed more than two dozen objections with the National Labor Relations Board shortly after the spring vote, claiming the result was tainted by organizers and Region 29, the agency’s regional office in Brooklyn that oversaw the election. 

“While we’re still reviewing the decision, we strongly disagree with the conclusion and intend to appeal,” Amazon Spokesperson Kelly Nantel said in a statement. “As we showed throughout the hearing with dozens of witnesses and hundreds of pages of documents, both the NLRB and the ALU improperly influenced the outcome of the election and we don’t believe it represents what the majority of our team wants.”

Click here to read more: Amazon loses attempt to scrap historic union win


The Valley Voice
The Valley Voicehttp://thevalleyvoice.org
Christopher Brito is a social media producer and trending writer for The Valley Voice, with a focus on sports and stories related to race and culture.

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