May 29, 2020
The global pandemic has caused a lot of economic distress to a large number of companies, but it has also supercharged the sales of some others. Consider the discount retailers. Yesterday we heard positive news from Dollar Tree. This morning, Big Lots blew away estimates, reporting adjusted income of $1.26 last quarter, versus the estimated 40 cents. Although the second quarter is expected to slow, Big Lots estimated 73 cents of profit, well ahead of the 24-cent estimate. Shares are looking to open about 13 percent higher.
William-Sonoma shares are higher by 8 percent on strong online sales for home goods.
Last night, Costco reported $1.89 of adjusted earnings, 4 cents better than expected. Traders may have been expecting an even better beat as shares are looking about two percent lower this morning.
Markets around the world are holding their breath as we await the Administration’s official...