Three major indexes of US stocks Wednesday Low opening, the Dow fell 0.04%, the Nasdaq fell 0.07%, and the S&P 500 fell 0.1%.
Starbucks fell by more than 14% at the opening, and then fell all the way down. As of press release, the deepest drop was more than 17%, the biggest drop since March 2020.
Oil also fell sharply tonight. WTI crude oil lost $80/barrel, the first time since March 15. Oil distribution fell more than 2% within the day, and as of press release, it was 84.16 dollars/barrel.
Starbucks just released its financial report for the second quarter of 2024, which shows that the company's revenue, profit and same store sales growth did not meet market expectations due to the reduction of customer patronage frequency and order size. Laxman Narasimhan, CEO, called the current situation "a challenging environment" at the financial report conference call, and pointed out that macroeconomic resistance and the pressure faced by consumers were the main challenges.
According to the financial report, Starbucks Revenue in the second quarter fell 2% year on year to $8.6 billion, and adjusted earnings per share fell 8% to $0.68. Global same store sales declined by 4% year on year and transaction volume declined by 6%. Although the average consumption amount increased by 2%, it still failed to fully offset the impact of the aforementioned decline.
In order to boost sales, Starbucks tried a series of new strategies, including afternoon promotion and launching new products such as lavender lattes, but the results showed that these measures did not significantly improve performance. The same store sales of the company in North America decreased by 3%, and the passenger flow and ticket amount also showed different degrees of decline.
The US ADP employment data, known as "small non farm", was released on the 1st. The employment report showed that the number of ADP employment in the United States increased by 192000 in April, higher than the expected 180000, and the value was revised from 184000 to 208000 before March. This shows that the US labor market is still strong and stable.
At 2:00 p.m. EST on Wednesday, or 2:00 a.m. Beijing time on Thursday, the Federal Reserve will announce the resolution of the monetary policy meeting. In half an hour, Federal Reserve Chairman Powell will hold a press conference. Due to the strong employment data performance, the market generally expects that the Federal Reserve will continue to maintain high interest rates this time, and suggests that it will not cut interest rates soon, and may announce to slow down the pace of shrinking the balance sheet.
Before the announcement of the Federal Reserve's blockbuster resolution, the scale of refinancing bond issuance in the new quarter announced by the US Treasury Department remained unchanged, in line with market expectations, and the first repurchase of US bonds since 2002 will be launched. According to the analysis, the failure of the Ministry of Finance to increase the scale of refinancing bond issuance benefited from the Federal Reserve's plan to reduce QT.
Editor in charge: Meng Mei Checked by: Zhang Yu Editor: Zhou Yang
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