Key Takeaways
- Anheuser-Busch InBev (BUD) shares plummeted over 11% after reporting a larger-than-expected 1.9% decline in second-quarter sales volumes, primarily due to weak demand in Brazil and China.
- Target (TGT) is making significant strides in resolving its persistent out-of-stock merchandise issues, with on-shelf availability for thousands of best-selling items reaching record highs.
- Amazon (AMZN) CEO Andy Jassy states that prices remain steady despite tariff risks, noting that the company has not yet seen a meaningful hit to demand or prices.
- S&P 500 futures showed little change as traders anticipate the release of a crucial jobs report, which could influence market sentiment.
Brewer Anheuser-Busch InBev (BUD) experienced a significant downturn, with its shares falling by 11.2% to a five-month low, marking its biggest single-day decline since 2020. The company reported a 1.9% drop in second-quarter sales volumes, exceeding analyst expectations for a 0.3% decline. This performance was largely driven by a sharp 9% decrease in volumes in Brazil and a 7.4% fall in China, where the brewer has struggled to keep pace with rivals. Despite these volume challenges, AB InBev did report revenue and profit growth, with profit exceeding forecasts by 6.5%. CEO Michel Doukeris attributed the Brazilian weakness to poor weather conditions.
Meanwhile, Target (TGT) is demonstrating progress in tackling its long-standing problem of out-of-stock merchandise. Chief Operating Officer Michael Fiddelke informed employees that on-shelf availability for thousands of top-selling items has reached its highest levels ever. This improvement is critical as Target aims to boost traffic and revive sales growth amidst challenges like soft demand and tariffs. The retailer has been actively working to streamline operations and improve inventory reliability.
In the e-commerce sector, Amazon (AMZN) CEO Andy Jassy provided a measured outlook on the impact of tariffs, indicating that prices have remained stable so far. He noted that the company has not observed a significant impact on demand or pricing due to potential tariff increases. Jassy also highlighted that Amazon has been diversifying its supply chain away from China over the past six years, which could position the company to better withstand tariff-related disruptions.
Looking at the broader market, S&P 500 futures were relatively unchanged as investors awaited a key jobs report. This report is expected to provide further insights into the economic landscape and could influence market direction.
Ed Liston is a senior contributing editor at TheStockMarketWatch.com. An active market watcher and investor, Ed guides an independent team of experienced analysts and writes for multiple stock trader publications.