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Costco's Gas Sales Pain ⛽
Plus, Avalanche's $40M grant boost.
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Today is Friday, September 27, 2024.
The Early Bird Index today is 74.64.
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Costco's Gas Sales Pain ⛽
Shares of Costco (Nasdaq: COST) fell by 1.43% in after-hours trading on Thursday after the retail giant released mixed financial earnings results.
Financials: Costco reported earnings of $5.29 per share in the past quarter, which was better than expected. But revenue was lower than expected at $79.69 billion.
Details: Comparable store sales increased in the quarter and Costco’s online business grew revenue by 18.9%.
Powering the Story: Sales excluding gas increased by 6.9%, but only by 5.4% when gas is included. That means the lower price of gas during the summer impacted overall sales. Also, membership fee revenue came in lower than expected.
Stock Price: Costco is up 38% this year.
Early Bird’s Nest Egg Gains: Gas prices in the fourth quarter of 2024 are expected to trend upward.
Historically, gas prices tend to increase during the holiday travel season in the fourth quarter.
Recent hurricanes and oil production cuts could reduce supply, increasing prices.
Final Thoughts: Even if Costco sales grew because of projected higher gas prices in the fourth quarter, questions remain about consumer spending.
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Notables
Notable Earnings Today: N/A.
Notable IPOs Today: EQV Ventures Acquisition Corp. (NYSE: EQV).
Notable Equity Crowdfunding Campaigns Ending Today: Osprey (Republic), Creole Me Up (Honeycomb), StockText (Netcapital), ScanHash (Netcapital), HeadFarm (Netcapital), Fantize (Netcapital), CountSharp (Netcapital).
Notable Economic Events Today: Core PCE Price Index / PCE Price Index (8:30 a.m. ET), Goods Trade Balance (8:30 a.m. ET), Retail Inventories (8:30 a.m. ET), Personal Spending (8:30 a.m. ET), Michigan Consumer Expectations / Sentiment (10:00 a.m. ET).
Avalanche's $40M Grant Boost
The price of the cryptocurrency Avalanche jumped about 7% on Thursday due to a new $40 million grant program.
Details: The Avalanche Foundation announced the grant program, called Retro9000, for its blockchain. Developers are encouraged to contribute to Avalanche before its upcoming upgrade called Avalanche9000.
Final Thoughts: Avalanche is now up about 21% in the last 30 days.
Bristol Myers Squibb’s Schizophrenia Drug Wins Approval
Bristol Myers Squibb (NYSE: BMY) jumped 4.45% in after-hours trading on Thursday after the FDA approved one of its drugs.
Details: COBENFY becomes the first new schizophrenia drug to get approval in the past few decades.
Quote: “After more than 30 years, there is now an entirely new pharmacological approach for schizophrenia — one that has the potential to change the treatment paradigm.” - CEO Chris Boerner.
Final Thoughts: Shares of Bristol Myers Squibb were down 5% this year before this announcement.
Trends to Watch
Blame Flies Free: Activist hedge fund Elliott slams Southwest CEO Bob Jordan as shares soar 7% (New York Post)
Major Deal: DirecTV and Dish Near Deal That Has Eluded Them for Years (Wall Street Journal)
More Boeing Problems: NTSB issues ‘urgent’ safety warning for some Boeing 737s, including MAX, in latest blow to struggling planemaker (CNN)
So Much Winning: Trump Media shareholder UAV dumped nearly 11 million shares (CNBC)
Above a Key Resistance Level: Bitcoin rallied above $65K, but will BTC price hold this level? (Cointelegraph)
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