Mixed US Stock Indexes; Post-Market: Starbucks, McDonald's Drop Sharply
On October 22nd local time, the U.S. stock market closed with mixed results, with the Dow Jones Industrial Average down by 0.02%, the Nasdaq Composite up by 0.18%, and the S&P 500 index down by 0.05%.
The precious metals sector showed strength, with Gold Field up by more than 3%, Cordell Mining and Hecla Mining up by more than 2%, and Pan American Silver up by over 4%. General Motors rose by nearly 10%, reaching its highest share price since February 2022, as the company's net sales and revenue, as well as adjusted earnings per share for the third quarter, all exceeded expectations.
As of the close on October 22nd local time, McDonald's reported at $314.65 per share, with a market value of $225.71 billion, and after-hours trading saw a drop that once expanded to 9%.
According to foreign media reports, the U.S. Centers for Disease Control and Prevention (CDC) announced a severe outbreak of E. coli infections related to McDonald's. Currently, 49 people have fallen ill in 10 states, including 10 hospitalizations, one of which was a child; the incident resulted in the death of an elderly person in Colorado.
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McDonald's issued a statement saying that the E. coli outbreak may be related to chopped onions; swift action was taken after the E. coli outbreak; the "Quarter Pounder" burgers were pulled from the shelves in four states; all other menu items were unaffected.
On October 23rd local time, after the U.S. stock market closed, Starbucks announced preliminary results for the fourth quarter and full year of fiscal year 2024, ending September 29, 2024.
EPS: Preliminary estimates indicate a year-over-year decrease of 25% to $0.80 for the adjusted EPS in the fourth quarter, below analysts' expectations of $1.03.
Revenue: Revenue for the fourth quarter decreased by 3% year-over-year to $9.1 billion, below analysts' expectations of $9.36 billion. Starbucks' global same-store sales declined by 7% in the fourth quarter, while analysts expected a decline of 3.48%. In China, same-store sales fell by 14% in the fourth quarter, while analysts expected a decrease of 10.5%. Additionally, Starbucks decided to temporarily hold off on releasing guidance for fiscal year 2025.
Starbucks' Chief Financial Officer, Rachel Ruggeri, stated: "Despite our increased investments, we have not been able to reverse the trend of declining customer numbers, which has put pressure on both our revenue and profits. Although our efforts to improve efficiency are on track, they are not sufficient to offset the impact of fewer customers. We are working on a plan to turn around the business, but it will take time. We want to bolster confidence in the company and provide some certainty as we drive the business turnaround. Therefore, we have increased our dividend."
After the U.S. stock market closed, Starbucks' shares once fell by 7%.Popular Chinese concept stocks mostly rose, with the NASDAQ Golden Dragon China Index up by 0.94%. iQIYI surged by over 7%, while Full Truck Alliance and Li Auto increased by more than 3%. Pinduoduo, Weibo, and XPeng Motors rose by over 2%, while NIO, JD.com, and Bilibili increased by more than 1%. Baidu, Tencent Music, and Futu Holdings saw a slight increase. Alibaba, NetEase, and VIPShop experienced a minor decline.
The FTSE A50 futures continued to rise by 0.38% in the night session, closing at 13,637.000 points.
International precious metal futures generally closed higher, with COMEX gold futures up by 0.88% at $2,763.10 per ounce, and COMEX silver futures up by 2.88% at $35.06 per ounce.
WTI November crude oil futures closed up by $1.53, a 2.17% increase, at $72.09 per barrel. Brent December crude oil futures closed up by $1.75, a 2.36% increase, at $76.04 per barrel.