Lululemon on the decline
Dow turns negative
12/09/2022, 11:00 p.m
Wall Street traders are excited about the coming week, and not just because the Fed is about to make its next interest rate decision. After a moderate course of trading on Friday, investors are taking the risk shortly before the market closes.
After yesterday’s recovery move, Wall Street closed in the red on Friday. In the course of the indices moved between gains and losses, in the late business they turned down. Of the Dow Jones Index lost 0.9 percent to 33,476. S&P 500 and Nasdaq Composite fell by 0.7 percent each.
Monetary policy was once again the focus. This time it was the much-anticipated US producer prices for November that should provide clues on the Fed’s next move. They were double-edged. On the one hand, they rose more than expected. This view eventually prevailed. On the other hand, at 7.4 percent, they were well below the 8 percent increase in the previous month. This confirmed hopes that inflation might have peaked. By midweek, US unit labor costs in the third quarter were already pointing in this direction. Meanwhile, the Michigan index was higher than expected on Friday.
On Tuesday, another important price indicator will be published with the consumer prices for November, before the highlight of the week with the US Federal Reserve’s interest rate decision will follow on Wednesday. The market sees a 75% chance that the Fed will hike rates by 0.5 percentage point next week.
“Over the next four trading days, there are important economic reports and Fed decisions that will probably determine the course of the markets for the next six months,” Fundstrat said.
Dollar slightly firmer – bond yields rise
On the foreign exchange market tended to dollar held up well after vacillating between wins and losses. The price data can be read in both directions, it said.
In the bond market, yields rose after price data and the strong Michigan index. the Yield on 10-year bonds rose 9.6 basis points to 3.58 percent.
the oil prices were well maintained after the previous day’s losses.
Lululemon give in
Below the individual values Broadcom 2.6 percent to. The semiconductor group had presented strong fourth-quarter figures and a better-than-expected outlook. The development of earnings in the past quarter was also better than expected, and sales met market expectations.
Lululemon lost 12.8 percent. The sportswear retailer reported third-quarter results that were as forecast or slightly better. However, Lululemon’s like-for-like sales growth for its stores fell well short of market forecasts. In addition, inventories rose by a whopping 85 percent over the year.
Blue Apron (-0.1%) wants to lay off about 10 percent of the employees and is planning further savings measures in view of the dwindling customers and competitive pressure. As the recipe box mailer announced, the job cuts are expected to cost about $1.2 million in severance pay and other expenses.
Apple and Ericsson have settled a legal dispute over the use of Ericsson technologies. As Ericsson announced, the two companies have signed a multi-year global license agreement. Apple lost 0.3 percent.