Wendy’s slides 2% after reporting underwhelming revenue
Wendy’s slipped more than 2.2% in premarket trading after the fast-food chain reported worse-than-expected revenue in the second quarter.
The company saw $561.6 million in the quarter, while analysts polled by FactSet anticipated $566.2 million. But the company beat forecasts on earnings per share by 1 cent with 28 cents earned, excluding items.
— Alex Harring
Markets are in ‘purgatory,’ Vital Knowledge says
Adam Crisafulli of Vital Knowledge said the stock market is “stuck in a purgatory zone, with valuation constraints blocking a sustained close above 4600 in the near-term while favorable macro news flow (goldilocks data, the end of near end of rate hikes, decent earnings) prevents a sharp break through ~4400.”
He added that declines below 4,450 “should be purchased, while rallies above 4550 are to be faded, but the sideways pattern (that’s been in place for a few weeks) will likely persist for a bit.”
— Fred Imbert, Michael Bloom
China consumer prices in July fall for first time in over 2 years
China’s consumer price index fell for the first time in over two years, posting a 0.3% year-on-year drop in July, but rose 0.2% month-on-month.
Economists polled by Reuters expected July CPI to drop 0.4% compared to a year ago.
Producer price index slumped 4.4% year-on-year, more than the Reuters poll of 4.1%. That’s compared to a 5.4% decline in June.
The offshore yuan strengthened slightly against the greenback after the announcement, trading at 7.2257.
— Lim Hui Jie, Evelyn Cheng
Nikon shares tumble 17% as net profit drops by almost 80% year-on-year
Shares of Japanese optics and imaging manufacturer Nikon tumbled as much as 17% on Wednesday, and was the biggest loser on the Nikkei 225.
The company posted a 78.3% year-on-year plunge in net profit for its first quarter, at 2.58 billion yen ($18 million) in the three months ended June.
Operating profit plunged 78.6% to 3.29 billion yen, while first quarter revenue increased to 158.15 billion yen, an 8.6% increase year-on-year.
South Korea unemployment rises for second straight month to 2.7%
The unemployment rate in South Korea climbed to 2.7% in July, up from 2.6% the previous month, but down 0.2 percentage points compared to the same period last year.
Government data showed the number of unemployed persons stood at 807,000 thousand people in July, a 3.5% drop year-on-year.
South Korea’s employment to population ratio was at 63.2% in July, up 0.3% percentage points year-on-year.
— Lim Hui Jie
Behind the decline in Lyft shares could be lackluster fourth-quarter guidance
Lyft shares dropped about 7% in extended trading Tuesday after the release of the ride-hailing company’s latest quarterly results.
The stock initially jumped 14% after Lyft posted second-quarter earnings results that beat analysts’ estimates, citing strong ride sharing demand. It posted adjusted per-share earnings of 16 cents, which far exceeded the per-share loss of 1 cent anticipated by analysts polled by Refinitiv. Meanwhile, Lyft’s second-quarter revenue of $1.02 billion came in line with estimates.
However, Lyft shares turned lower after the company’s fourth-quarter outlook seemed weaker than anticipated, according to a rough calculation from CNBC’s Robert Hum. Fourth-quarter revenue growth expectations showed low- to mid-single digit increases. Meanwhile, the rough fourth-quarter earnings margin came in line to slightly lower.
What’s more, while the company cited strong demand for rides, the revenue per active rider declined 5% as Lyft used price cuts to drive demand.
Lyft shares 1-day
— Sarah Min, Robert Hum
Stocks making the biggest moves after hours
Check out the companies making headlines after hours.
- Rivian Automotive — Rivian Automotive dipped about 2.5% in extended trading. The decline comes even after the electric automaker beat second-quarter expectations on the top and bottom lines. Rivian reported an adjusted loss of $1.08 per share on revenue of $1.12 billion. Analysts polled by Refinitiv had expected a loss per share of $1.41 on revenue of $1.0 billion.
- Penn Entertainment — Penn Entertainment surged 22% after the entertainment and casino company said it’s launching an online sportsbook with ESPN, called ESPN Bet, this fall.
- Lyft — Lyft shares were 6% lower in extended trading after initially popping more than 12% following the release of the ride-hailing company’s second-quarter results. Lyft posted revenue of $1.02 billion, in line with the estimate from analysts polled by Refinitiv. Meanwhile, adjusted per share earnings came in at 16 cents, beating the expectation of a loss of 1 cent per share.
Read the full list here.
— Sarah Min
Stock futures open flat
U.S. stock futures were little changed Tuesday night.
Dow Jones Industrial Average futures fell by 23 points, or 0.06%. S&P 500 futures dipped 0.03%, while Nasdaq 100 futures gained 0.01%.
— Sarah Min
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