Stocks open higher after cooler inflation data
US stocks opened higher on Tuesday as Wall Street digested cooler-than-expected inflation data and awaited an update on consumer prices, due Wednesday.
Shortly after the opening bell, the S&P 500 (^GSPC) rose about 0.7%, while the tech-heavy Nasdaq Composite (^IXIC) jumped roughly 1%. The Dow Jones Industrial Average (^DJI) inched up about 0.4%.
Tue, August 13, 2024 at 2:04 PM GMT+1
Chipotle stock tumbles 8% after CEO departs for Starbucks
Chipotle (CMG) stock fell as much as 8% in pre-market trading after the company announced the departure of its CEO, Brian Niccol, who will take the same role at Starbucks (SBUX) starting next month.
Niccol has been the CEO of Chipotle since 2018. Scott Boatwright, its COO, will serve as the company's interim CEO.
Niccol has been integral to Chipotle's rebound over the last several years, as the company recovered from anE. coli crisisthat began in 2015 and weighed on shares for years.
In the year before Niccol joined the company, Chipotle's annual revenues were around $4.5 billion; by 2023, revenue had more than doubled, totaling $9.9 billion for the year. In the past five years, the stock has rallied more than 240% against an 85% gain for the S&P 500.
Tue, August 13, 2024 at 1:16 PM GMT+1
Ugly quarter out of Home Depot
There isn't much to like in this quarter out of Home Depot (HD).
A checklist ahead of the earnings call:
Same-store sales fell 3.3%.
Same-store sales missed the consensus estimate decline of 2.1%.
Transaction trends worsened from the first quarter.
Full year sales guidance was cut at the mid-point.
Full year EPS guidance was cut at the mid-point.
Tue, August 13, 2024 at 1:00 PM GMT+1
Chart of the morning comes compliments of BofA
The Bank of America fund manager survey for August is out, and it's clear that investors are worried about the outlook for growth.
The below chart shows a plunge in global growth expectations, which follows a steady drumbeat of negative economic surprises this month (mostly in the US).