Category: Financial News

Amazon shares climbed more than 13% in extended trading on Thursday after the company reported better-than-expected second-quarter revenue and gave an optimistic outlook.

Here’s how the company did:

  • EPS: Loss of 20 cents
  • Revenue: $121.23 billion vs. $119.09 billion expected, according to Refinitiv

Here’s how other key Amazon segments did during the quarter:

  • Amazon Web Services: $19.7 billion vs. $19.56 billion expected, according to StreetAccount
  • Advertising: $8.76 billion vs. $8.65 billion expected, according to StreetAccount

Revenue growth of 7% in the second quarter topped estimates, bucking the trend among its Big Tech peers, which all reported disappointing results prior Thursday. Apple, along with Amazon, beat expectations.

Amazon said it expects to post third-quarter revenue between $125 billion and $130 billion, representing growth of 13% to 17%. Analysts were expecting sales of $126.4 billion, according to Refinitiv.

Amazon has been contending with higher costs, as a pandemic-driven expansion left the company

…
Read More

Ongoing supply chain pressures amid strong consumer demand make for a scary combination as Hershey warned there will be a Halloween and holiday candy shortage.

“Seasonal consumer engagement is expected to remain high, and we expect high single digit sales growth for both our Halloween and Holiday seasons,” Hershey Chairman and CEO Michele Buck said during the earnings call. “Despite this strong growth, we will not be able to fully meet consumer demand due to capacity constraints.”

Trick-or-treaters can partially blame a scarcity of raw ingredients and workers for the lack of Reese’s pumpkins this year. The CEO also mentioned that the Russia-Ukraine war and geopolitical tensions strained supply chains when explaining that the company had to make the difficult decision to prioritize producing its everyday candy offerings over seasonal confections.

Kids dressed in costumes wait for candy while trick or treating during Halloween in Port Washington, New York, October 31, 2014. REUTERS/Shannon Stapleton (UNITED STATES - Tags: SOCIETY)

Kids dressed in costumes wait for candy while trick or treating during Halloween in Port Washington, New York, October

…
Read More

An inflation gauge that the Federal Reserve uses as its primary barometer jumped to its highest 12-month gain in more than 40 years in June, the Bureau of Economic Analysis reported Friday.

The personal consumption expenditures price index rose 6.8%, the biggest 12-month move since the 6.9% increase in January 1982. The index rose 1% from May, tying its biggest monthly gain since February 1981.

Excluding food and energy, so-called core PCE increased 4.8% from a year ago, up one-tenth of a percentage point from May but off the recent high of 5.3% hit in February. On a monthly basis, core was up 0.6%, its biggest monthly gain since April 2021.

Both core readings were 0.1 percentage point above the Dow Jones estimates.

Fed officials generally focus on core inflation, but have turned their attention recently to the headline numbers as well, as food and fuel prices have soared in

…
Read More

On Wednesday, the Federal Reserve continued efforts to tame inflation by raising interest rates for the fourth consecutive time — and communicating that more hikes are on the way.

Stocks rallied in the aftermath, with the S&P 500 jumping 2.6% on Wednesday and another 1.2% on Thursday.

The rip higher has extended the roughly six-week reversal in what has been an ugly 2022 for stocks to date; through Thursday’s close, the S&P 500 has bounced back roughly 11% from its lows in mid-June.

The Fed usually shrugs off moves in the stock market, but the turn in equities has also coincided with an alarming turn in bond markets as well — which could brew trouble for policymakers.

Longer-term interest rates, which the Fed does not directly control, don’t appear to be getting Fed Chairman Jerome Powell’s message on further rate increases. And that could potentially dampen the intended impact of

…
Read More