In a sign that economic recovery is accelerating, unemployment claims dropped to a fourteen-month low. Buoyed by the improving employment scenario and other bullish economic data, stock markets rallied this week. The Dow Jones Industrial Average added 125 points since the last close and hovered near its recent peak on Friday. The S&P 500 index gained about 1% since the beginning of the week.
After a busy tax season, accounting software firm Intuit on Tuesday reported mixed third-quarter results, and was joined by after-market auto-parts retailer Autozone that posted strong results amid record-high comparable sales.
The next day, chipmaker Nvidia, which entered fiscal 2022 on a high note aided by the continued strength of its GPU business, reported first-quarter earnings that more than doubled. Store operators dominated the earnings scene on Thursday when market leaders Dollar General, Best Buy, Dollar Tree, and Costco released their quarterly statements. CRM leader Salesforce and software firm Autodesk was the other major companies reported on a busy day.
As the earnings season approaches its fag end, there are fewer big releases scheduled for the next week. The spotlight will be on Zoom Video Communications, the COVID winner that is preparing to unveil its first-quarter numbers on June 1, since the outcome is expected to give a sense of sustainability of the current business boom. The other important event expected on that day is the second-quarter report of IT firm Hewlett Packard Enterprise.
Advance Auto Parts, another leading automotive parts retailer, is set to report earnings on June 2, besides tech firm Cloudera. DocuSign and Broadcom are scheduled to release their three-month financial statements on June 3.
Business communication platform Slack Technologies, which is all set to be acquired by Salesforce, will be reporting the same day. The $28-billion deal, which is being scrutinized by antitrust watchdogs, is expected to close in July this year.
The market witnessed more M&A deals this week, including the closely-followed buyout of MGM Studios by Amazon for about $9 billion. GPS gadget maker Garmin acquired aircraft performance software provider AeroData for an undisclosed amount. In another tech deal, Accenture bought cloud solutions provider Industrie&Co, continuing its buyout spree.
Key Earnings Reports to Watch
Monday: Max Healthcare Institute, Glenmark Pharmaceuticals, Gulf Oil Lubricants India, OnMobile Global Limited, and Kaveri Seed Company
Friday: Quanex Building Products and Hooker Furniture Corp
Key Corporate Conferences to Watch
Key Investor Days/AGMs to Watch
Key US Economic Events
The following are notable companies which have reported their earnings last week. In case if you have missed catching up on their performance, click the respective links to skim through the transcripts to glean more insights.
If you want to listen to how management responds to analyst questions and the tone they use, you can head over to our YouTube channel to listen to conference calls on the go.
Like other leading store operators, Costco Wholesale Corporation (NASDAQ: COST) went into overdrive when people stockpiled on essential items after coronavirus threw normal life out of gear in early 2020.
Nike Inc. (NYSE: NKE) reported first quarter 2022 earnings results today. Total revenue increased 16% year-over-year to $12.2 billion. Net income rose 23% to $1.9 billion while EPS grew 22%
Warehouse chain Costco Wholesale Corporation (NASDAQ: COST) reported higher earnings and revenues for the fourth quarter of 2021. The results also topped expectations. Fourth-quarter net sales grew 17.5% annually to