Business and Finance News - 7.16.24

Burberry Faces Operating Loss, Names New CEO as Shares Plunge 16% and Sales Drop 21%

• Burberry expects an operating loss for the first half of the year.

• Full-year operating profit is expected to be below current consensus.

• Burberry shares closed 16.08% lower in London.

• The company suspended its dividend due to current trading conditions.

• Joshua Schulman named new CEO, replacing Jonathan Akeroyd immediately.

• Comparable store sales fell 21% in the 12 weeks to June 29.

• Retail revenue for the period was £458 million ($595 million).

*Burberry (BURBY) - Burberry is a luxury fashion brand that designs, manufactures, and sells high-end clothing, accessories, and fragrances, renowned for its iconic trench coats, distinctive check pattern, and commitment to craftsmanship and innovation in the fashion industry.

Fed Chair Powell: No Rate Cuts Until Confidence in 2% Inflation Target; Economy Avoids 'Hard Landing

• The Fed will not wait for inflation to hit 2% to cut interest rates.

• Fed Chair Powell referenced "long and variable lags" in central bank policy.

• The Fed seeks "greater confidence" that inflation will return to 2%.

• Powell does not see a "hard landing" for the U.S. economy as likely.

• June's consumer price index report showed cooling inflation.

• Powell's first public appearance since June's inflation report.

• The Fed’s next policy meeting is at the end of July.

*The Federal Reserve (The Fed) - The Federal Reserve, often referred to as the Fed, is the central bank of the United States that conducts monetary policy to promote maximum employment, stable prices, and moderate long-term interest rates.

Goldman Sachs Beats Earnings Estimates with $3.04B Profit, Strong Fixed Income and Wealth Management Growth

• Goldman Sachs reported earnings of $8.62 per share, beating the $8.34 estimate.

• Revenue was $12.73 billion, exceeding the $12.46 billion estimate.

• Second-quarter profit jumped 150% to $3.04 billion.

• Fixed income revenue increased 17% to $3.18 billion, surpassing estimates.

• Credit loss provisions fell 54% to $282 million, below the $435.4 million estimate.

• Asset and wealth management revenue rose 27% to $3.88 billion.

• Investment banking fees rose 21% to $1.73 billion, missing the $1.8 billion estimate.

*Goldman Sachs (GS) - Goldman Sachs is a global investment banking, securities, and investment management firm that provides a wide range of financial services to corporations, financial institutions, governments, and individuals.

Macy’s Ends $6.9B Buyout Talks with Activist Group; Shares Drop 14% Amid Turnaround Efforts

• Macy’s board ended negotiations with activist group seeking $6.9 billion buyout.

• Arkhouse and Brigade had attempted to buy Macy’s for months.

• Macy’s cited lack of financing certainty and value in rejecting the proposal.

• Activist group planned a proxy fight but settled for adding two directors in April.

• Macy’s shares fell roughly 14% in early trading Monday.

• CEO Tony Spring leads a turnaround, including closing 150 stores and opening new locations.

• Macy’s expects fiscal year net sales between $22.3 billion and $22.9 billion.

*Macy’s (M) - Macy's is a retail company that operates a chain of department stores offering a wide range of products, including clothing, footwear, accessories, cosmetics, home furnishings, and housewares, along with online shopping and various customer services.

Trump Media Shares Surge 30% After Assassination Attempt

• Trump Media shares rose over 30% after the attempted assassination of Donald Trump.

• More than 76 million shares of Truth Social's owner traded Monday, ten times the average.

• Trump Media has experienced volatile trading throughout the election race.

• Trump was grazed by a bullet and treated at a local hospital in Pennsylvania.

• Trump Media CEO Devin Nunes called for a federal investigation into the attack.

• Analysts suggest the assassination attempt may boost Trump's chances in the November election.

• Trump Media reported a net loss of $327.6 million in the first quarter of the year.

*Trump Media (DJT) - Trump Media & Technology Group (TMTG) is a media company founded by former U.S. President Donald Trump, focused on developing and operating social media and technology platforms, including the social network Truth Social.

Here’s how the markets closed yesterday:

• Dow Jones Industrial Average: 40,211.72 +210.82 (+0.53%)

• S&P 500: 5,631.22 +15.87 (+0.28%)

• Nasdaq Composite: 18,472.57 +74.12 (+0.40%)

• Bitcoin (BTC): $64,777.55 (8:15PM PST on 7/15/24)

• Ethereum (ETH): $3,465.51 (8:15PM PST on 7/15/24)

Here’s how leading market ETFs did yesterday:

• SPDR S&P 500 ETF Trust (SPY): 561.53 +1.54 (+0.28%)

• iShares Core S&P 500 ETF (IVV): 564.61 +1.57 (+0.28%)

• Vanguard S&P 500 ETF (VOO): 516.11 +1.56 (+0.30%)

• Vanguard Total Stock Market ETF (VTI): 276.82 +1.18 (+0.43%)

• Invesco QQQ Trust (QQQ): 496.15 +1.33 (+0.27%)

Here’s how the THE SUPER SIX STOCKS did yesterday:

• Microsoft (MSFT) [3.374T]: 453.96 +0.41 (+0.09%)

• Apple (AAPL) [3.594T]: 234.40 +3.86 (+1.67%)

• Nvidia (NVDA) [3.165T]: 128.44 -0.80 (-0.62%)

• Alphabet (GOOG) [2.326T]: 188.19 +1.41 (+0.75%)

• Amazon (AMZN) [2.006T]: 192.72 -1.77 (-0.91%)

• Meta Platforms (META) [1.259T]: 496.16 -2.71 (-0.54%)