Business and Finance News - 8.16.24

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Cisco reported a third consecutive quarter of declining revenue and announced a 7% global workforce reduction, marking its first full fiscal year revenue drop since 2020. Despite the decline, the company exceeded analysts' earnings and revenue expectations, with its stock rising 5.5% in after-hours trading. (CNBC)

*Cisco (CSCO) - Cisco Systems, Inc. is a global technology company that designs, manufactures, and sells networking hardware, software, telecommunications equipment, and other high-technology services and products.

Deere & Co. exceeded third-quarter profit expectations due to strong pricing and cost control measures, despite declining demand for its farm equipment. The company maintained its 2024 net income forecast at $7 billion, with shares rising 6% following the report. (Reuters)

*Deere (DE) - Deere & Company, commonly known as John Deere, manufactures agricultural, construction, and forestry machinery. It also produces diesel engines, drive trains, and lawn care equipment.

Bill Ackman’s Pershing Square Capital Management acquired over 3 million shares of Nike in the second quarter, boosting the stock by about 4% in premarket trading. Despite Nike’s ongoing sales struggles due to a slowing Chinese economy and increased competition, the investment reflects confidence in the company’s future. (Investopedia)

*Pershing Square Capital Management - Pershing Square Capital Management is a hedge fund management company founded by Bill Ackman in 2004. The firm is known for its activist investment strategy, where it takes significant positions in publicly traded companies and pushes for changes to improve shareholder value. 

*Nike (NKE) - Nike, Inc. is a global corporation that designs, manufactures, and sells athletic footwear, apparel, equipment, and accessories.

Robust consumer spending in July, with retail sales surging 1%, has alleviated fears of an economic downturn and supports the possibility of a "soft landing" for the economy. The strong spending, especially in the auto sector, contrasts with earlier concerns of a consumer slowdown and aligns with signs of receding inflation. (Axios)

*Retail Sales - Retail sales represent the total revenue generated by retailers from selling goods and services to consumers. This key metric indicates consumer spending, a major driver of economic activity, and helps economists and policymakers assess economic health, consumer confidence, and spending trends.

Berkshire Hathaway acquired stakes in Ulta Beauty and Heico during the second quarter while nearly halving its significant stake in Apple. Ulta Beauty shares rose 14% and Heico shares increased 3% in after-hours trading following the disclosure, signaling confidence in Berkshire's investment choices. (Reuters)

*Berkshire Hathaway (BRK.B) - Berkshire Hathaway Inc. is a multinational conglomerate holding company headquartered in Omaha, Nebraska, United States. The company is known for its control and leadership by Warren Buffett, one of the most famous investors in the world.

*Ulta Beauty (ULTA) - Ulta Beauty is the largest beauty retailer in the United States, offering a wide range of cosmetics, skincare, haircare products, and fragrances. The company operates stores nationwide and provides salon services, including haircuts, styling, and skincare treatments.

Here’s how the major indexes did yesterday:

• Dow Jones Industrial Average: 40,563.06 +554.67 (+1.39%)

• S&P 500: 5,543.22 +88.01 (+1.61%)

• Nasdaq Composite: 17,594.50 +401.89 (+2.34%)

• Russell 2000: 2,135.47 +51.15 (+2.45%)

• CBOE Volatility Index (VIX): 15.23 -0.96 (-5.93%)

Here’s how leading market ETFs did yesterday:

• SPDR S&P 500 ETF Trust (SPY): 553.07 +9.32 (+1.71%)

• iShares Core S&P 500 ETF (IVV): 556.17 +9.36 (+1.71%)

• Invesco QQQ Trust (QQQ): 474.42 +11.69 (+2.53%)

• Vanguard S&P 500 ETF (VOO): 508.38 +8.58 (+1.72%)

• Vanguard Total Stock Market ETF (VTI): 272.52 +4.64 (+1.73%)

Here’s how The Magnificent Seven did yesterday:

• Apple (AAPL) [3.446T]: 224.72 +3.00 (+1.35%)

• Microsoft (MSFT) [3.129T]: 421.03 +4.92 (+1.18%)

• Nvidia (NVDA) [3.027T]: 122.86 +4.78 (+4.05%)

• Alphabet (GOOG) [2.009T]: 163.17 +1.14 (+0.70%)

• Amazon (AMZN) [1.848T]: 177.59 +7.49 (+4.40%)

• Meta Platforms (META) [1.363T]: 537.33 +10.57 (+2.01%)

• Tesla (TSLA) [683B]: 214.14 +12.76 (+6.34%)

Here’s how the major cryptocurrencies did yesterday:

• Bitcoin (BTC): $58,173.37 (8:00PM PST on 8/15/24)

• Ethereum (ETH): $2,593.11 (8:00PM PST on 8/15/24)

• Solano (SOL): $142.96 (8:00PM PST on 8/15/24)