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Stocks rise as Macy’s, Kohl’s raise outlooks, jobless claims fall – Fox Business

U.S. stocks opened mixed as investors digested a fresh round of earnings and a drop in jobless claims. 

The Dow Jones Industrial Average slipped 33 points or 0.2%, while the Nasdaq Composite and S&P 500 ticked higher by 0.35% and 0.24%, respectively. 

Ticker Security Last Change Change %
I:DJI DOW JONES AVERAGES 35848.38 -82.67 -0.23%
SP500 S&P 500 4694.13 +5.46 +0.12%
I:COMP NASDAQ COMPOSITE INDEX 15948.522443 +26.95 +0.17%

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Cisco Systems Inc. is the biggest drag on the Dow after it forecast current-quarter revenue below expectations as supply chain shortages and delays drive up costs. It also expects second-quarter revenue to grow 4.5% to 6.5% year-over-year, compared with Wall Street expectations of about 7.4%.

Ticker Security Last Change Change %
CSCO CISCO SYSTEMS, INC. 51.77 -4.99 -8.79%

Elsewhere, the flood of retail earnings continues with Macy’s and Kohl’s beating earnings estimates and boosting outlooks as shoppers return and the holiday season lures more customers. Both Petco and BJ’s Wholesale Club also topped estimates, with the former also raising its full-year outlook and the latter announcing a new stock buyback program worth up to $500 million. Children’s Place beat on its EPS estimate but missed on its revenue estimate.  

TARGET, WALMART SAY HOLIDAY INVENTORY IS UP DESPITE SUPPLY CHAIN DISRUPTIONS

Ticker Security Last Change Change %
M MACY’S, INC. 36.83 +6.01 +19.52%
KSS KOHL’S CORP. 61.55 +5.04 +8.91%
WOOF PETCO HEALTH AND WELLNESS COMPANY INC. 22.45 -2.27 -9.18%
BJ BJS WHSL CLUB HLDGS INC 68.59 +8.60 +14.32%
PLCE THE CHILDREN’S PLACE, INC. 106.30 +1.75 +1.67%

The afternoon will bring numbers from Ross Stores and Williams-Sonoma.

Ticker Security Last Change Change %
ROST ROSS STORES, INC. 116.76 +0.24 +0.21%
WSM WILLIAMS-SONOMA, INC. 212.90 +3.08 +1.47%

Pfizer also reported it will sell the U.S. government its oral COVID-19 pill for $5.3 billion. 

Ticker Security Last Change Change %
PFE PFIZER INC. 51.41 +0.55 +1.08%

In deal news, Ford is teaming up with Globalfoundries to address the semiconductor shortage. 

Ticker Security Last Change Change %
F FORD MOTOR CO. 20.07 +0.21 +1.08%
GFS GLOBALFOUNDRIES 65.30 +2.60 +4.15%

“The companies have signed a non-binding agreement that opens the door for GF to create further semiconductor supply for Ford’s current vehicle lineup and joint research and development to address the growing demand for feature-rich chips to support the automotive industry” according to the announcement. 

HOUSING STARTS UNEXPECTEDLY DROP AS MATERIALS SHORTAGES PERSIST

On the economic calendar center on jobs and manufacturing.

The Labor Department reported claims for unemployment benefits last week fell to 268,000 another pandemic low. Continuing claims, which track the total number of unemployed workers collecting benefits, slipped to 2.08 million. 

At the same time the Philadelphia Federal Reserve’s index of manufacturing activity for eastern Pennsylvania, southern New Jersey, and Delaware came in at 39. Any reading above zero means that more manufacturers say business conditions are improving rather than worsening.

And the Conference Board’s Leading Economic index will be released for October. Watch for a 0.8% increase from the prior month.

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In energy trading, benchmark U.S. crude rose 0.72% cents to the $78 per barrel level.  

FOX Business’ Ken Martin and The Associated Press contributed to this report.

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