Key Takeaways
- Macy's (M) and Dollar Tree (DLTR) both surpassed Q2 revenue and adjusted EPS estimates, with Macy's also raising its full-year outlook.
- US MBA Mortgage Applications declined by 1.2% for the week ending August 29, even as the 30-year mortgage rate slightly decreased to 6.64%.
- KKR (KKR) appointed former Amazon Web Services (AWS) CEO Adam Selipsky as a Senior Advisor, focusing on technology and artificial intelligence.
- Bank of America Global Research increased its price target for Apple (AAPL) to $260 from $250, signaling continued analyst confidence.
- Maersk reported ongoing strains in North American supply chains, while geopolitical tensions persist with Russian strikes on Ukrainian infrastructure and UAE warnings regarding Israeli annexation plans.
Corporate Earnings Outperform Expectations
Retail giants Macy's (M) and Dollar Tree (DLTR) delivered stronger-than-expected second-quarter results. Macy's reported adjusted earnings per share of $0.41, significantly beating the $0.18 estimate, on net sales of $4.81 billion, surpassing the $4.71 billion projection. The department store chain also saw comparable sales rise by 0.8% on an owned basis and raised its full-year adjusted EPS outlook to a range of $1.70 to $2.05 from $1.60 to $2.00, alongside an increased net sales forecast of $21.15 billion to $21.45 billion.
Discount retailer Dollar Tree (DLTR) also posted robust Q2 figures, with net sales reaching $4.51 billion against an estimated $4.47 billion. Segment comparable store sales surged 6.5%, exceeding the 5.18% estimate. The company adjusted its full-year net sales guidance upwards to $19.3 billion to $19.58 billion from its prior range of $18.5 billion to $19.1 billion, while revising its adjusted EPS outlook to $5.12 to $5.32 from $5.15 to $5.65.
In the technology sector, Bank of America Global Research demonstrated its confidence in Apple (AAPL) by raising its price target for the iPhone maker to $260 from $250.
Economic Indicators and Monetary Policy
US mortgage activity saw a decline for the week ending August 29, with MBA Mortgage Applications falling 1.2% after a 0.5% decrease in the previous period. Despite the dip in applications, the 30-year mortgage rate slightly eased to 6.64% from 6.68%. Meanwhile, US Treasury yields remained largely unchanged as market participants awaited key jobs data.
Looking at international monetary policy, JPMorgan revised its forecast for Turkey's upcoming September rate cut, now expecting a 200 basis point reduction, down from an earlier projection of 300 basis points.
Corporate Appointments and Global Developments
Global investment firm KKR (KKR) announced the appointment of Adam Selipsky, the former CEO of Amazon Web Services (AWS), as a Senior Advisor. Selipsky will provide expertise in technology and artificial intelligence, a strategic move for KKR.
On the global stage, shipping giant Maersk reported that North American supply chains continue to experience significant strains. Geopolitical tensions also remain elevated, with Russia's Defence Ministry stating that its forces targeted Ukraine's transportation infrastructure used for military purposes, as well as fuel infrastructure overnight. Separately, a UAE official urged Israel to halt its annexation plans for the West Bank, warning that such actions could severely damage the Abraham Accords and the normalization of ties, calling it a "red line" for the UAE.
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.