Stock Market Today Mid-Morning Updates
On Wednesday, the Dow Jones Industrial Average is up by 25 points as investors eagerly await for the Federal Reserve’s minutes from its policy meeting earlier in the month. Snap’s (NYSE: SNAP) 40% slide on Tuesday has dragged many tech stocks lower after it warned that profits may stagger, adding to woes for a sector that is already reeling from user growth slowdown and rate-hike fears.
Shares of Dick’s Sporting Goods (NYSE: DKS) is down by over 12% on today’s opening bell after it issued a weaker-than-expected outlook for the full year. The company cites challenging macroeconomic conditions. Dell Technologies (NYSE: DELL) is also in focus today after Evercore added the IT company to its Tactical Outperform list. Evercore says that IT demand trends will remain strong enough for Dell to lead to an earnings beat. It also says that Dell could raise outlook when the company reports its financials this Thursday.
Among the Dow Jones leaders, shares of Apple are down by 1.12% today while Microsoft (NASDAQ: MSFT) is also down by 0.57%. Meanwhile, Disney (NYSE: DIS) and Nike (NYSE: NKE) are trading lower by 0.07% and 3.14% respectively on Wednesday. Among the Dow financial leaders, Visa (NYSE: V) is down by 0.89% while JPMorgan Chase (NYSE: JPM) is also down by 0.46%
Shares of EV leader Tesla (NASDAQ: TSLA) are down by 0.66% on Wednesday. Rival EV companies like Rivian (NASDAQ: RIVN) are up by 0.94%. Lucid Group (NASDAQ: LCID) is also up by 0.53% today. Chinese EV leaders like Nio (NYSE: NIO) and Xpeng Motors (NYSE: XPEV) are trading higher today.
Dow Jones Today: U.S. Treasury Yields Dips to 2.7% Ahead Of Fed Minutes Today; Mortgage Demand Declines For The Second Straight Week.
Following the stock market opening on Wednesday, the Dow, S&P 500 and Nasdaq are all trading higher at 0.08%, 0.26% and 0.23% respectively. Among exchange-traded funds, the Nasdaq 100 tracker Invesco QQQ Trust (NASDAQ: QQQ) is up by 0.35% while the SPDR S&P 500 ETF (NYSEARCA: SPY) is also up by 0.18%.
The benchmark 10-year U.S. Treasury yield currently dipped to 2.7% today as investors await the Fed’s May policy meeting minutes. Investors hope to gain more insight into the central bank’s approach to handling inflation and the economy. Earlier in the month, the Fed raised interest rates by 50 basis points.
Mortgage rates are also on the decline and was not enough to boost demand for new purchase loans or refinances. This is according to the weekly report from the Mortgage Bankers Association. Rates are still much higher than they were for the past two years. For example, applications to refinance a home loan dropped 2% for the week and are about 75% lower than the same week year-over-year.
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Wendy’s Stock Gains Ground Following News Of Largest Shareholders Considering Deal
Grabbing headlines in today’s stock market news cycle is Wendy’s (NASDAQ: WEN). This is apparent seeing as WEN stock is currently gaining by over 10% at the opening bell today. Diving in, the main reason for this movement in the company’s shares is thanks to a new 13-D filing by Trian Partners. In brief, Trian, alongside its partners, now holds a 19.4% stake in Wendy’s, amounting to 41.6 million shares. This would make it the largest shareholder at the moment. According to the filing, the firm is considering making a potential deal with the Wendy’s board of directors. The likes of which Trian notes will serve to “enhance shareholder value.” On top of that, the firm also states that the current deal could be in the form of an acquisition or business combination.
At the moment, Trian Partners is working with its advisors to evaluate the best strategic options for a deal. Furthermore, the firm also adds that it is having discussions with the Wendy’s board. On the flip side, Wendy’s also released a statement on this via a 13-D filing. The fast-food chain operator writes that it is continuously evaluating business opportunities. As such, it is currently “carefully,” reviewing Trian’s proposal with the intent of “maximizing value for all stockholders.” Because of all this, investors would be swarming to WEN stock in the stock market today.
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Nordstrom Stock Rises After Revenue Beat And Bump In Annual Guidance
In other news, luxury department store chain operator Nordstrom (NYSE: JWN) is coming into focus at today’s stock market opening. Overall, the company reported commendable figures in its latest financial update. From the earnings report, Nordstrom’s total revenue for the quarter is $3.57 billion. To compare, the consensus on Wall Street is $3.28 billion. Even after posting a slightly wider-than-expected loss per share of $0.06 versus the consensus of a $0.05 loss, JWS stock is now gaining by over 1.8% now.
Notably, a core reason for this momentum in the company’s shares could be its guidance update. According to the press release, Nordstrom is anticipating annual credit card sales to increase by 6% to 8% for the current fiscal year. For reference, this is an increase from the company’s previous guidance range of a 5% to 7% rise in annual credit card sales. On top of that, the company is also guiding for an earnings per share of between $3.38 to $3.68 for its fiscal 2022. To highlight, this is up from its prior range of $3.15 to $3.50.
In general, the company’s outlook bump is already positive news in and of itself. More importantly, this comes at a time when some of the biggest retailers continue to face pressures from macro headwinds. Speaking about Nordstrom’s current operational trajectory is CEO Erik Nordstrom. He states, “Looking ahead, we are committed to driving additional merchandise margin improvement and increasing supply chain productivity, to deliver incremental profitability while continuing to elevate the customer experience.” As Nordstrom remains hard at work, JWN stock could be attractive to investors eyeing the retail space today.
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