Author

admin

Browsing

Macy’s cut its full-year profit guidance on Wednesday even as it beat Wall Street’s quarterly earnings expectations, as the retailer’s CEO said it will hike prices of certain items to offset tariffs.

In a news release, the department store operator said it reduced its earnings outlook because of higher tariffs, more promotions and “some moderation” in discretionary spending. Macy’s stuck by its full-year sales forecast, however.

For fiscal 2025, Macy’s now expects adjusted earnings per share of $1.60 to $2, down from its previous forecast of $2.05 to $2.25. It reaffirmed its full-year sales guidance of between $21 billion and $21.4 billion, which would be a decline from $22.29 billion in the most recent full year.

In an interview with CNBC, CEO Tony Spring said about 15 cents to 40 cents per share of the guidance cut is due to tariffs. He said about 20% of the company’s merchandise comes from China.

Macy’s will raise some prices and stop carrying certain items to mitigate the hit from tariffs, he added.

“You’re dealing with it on both the demand side as well as the increased cost side,” he said. “And so navigating that, we have a series of different scenarios to try to figure out kind of what will be the reality, and we want our guidance to reflect the flexibility of that uncertainty, so that we can react in real time to how we serve or better serve the consumer.”

Spring said the company will be “surgical” with price changes.

“It’s not a one-size-fits-all kind of approach,” he said. “There are going to be items that are the same price as they were a year ago. There is going to be, selectively, items that may be more expensive, and there are items that we might not carry because the pricing doesn’t merit the quality or the perceived value by the consumer.”

Here’s how Macy’s did during its fiscal first quarter, compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

In the three-month period that ended May 3, the company’s net income was $38 million, or 13 cents per share, compared with $62 million, or 22 cents per share, in the year-ago period. Sales dropped from $4.85 billion in the year-ago quarter. Excluding some one-time charges including restructuring charges, adjusted earnings per share were 16 cents.

The company’s shares were down more than 2% in early trading on Wednesday.

Economic uncertainty — including President Donald Trump’s on-again, off-again tariff announcements — has complicated Macy’s turnaround plans. The New York City-based legacy retailer is more than a year into a three-year effort to become a smaller, but healthier business. It’s shuttering weaker stores and investing in stronger parts of the company, including luxury department store Bloomingdale’s and beauty chain Bluemercury. It has also tried to improve the customer experience, including by speeding up online deliveries and adding staff to stores.

Spring told analysts on the earnings call that the tariff impact on Macy’s outlook includes the additional costs of inventory previously imported under the 145% China tariffs, which have since dropped to 30%. He said the outlook does not include a potential increase in tariffs on the European Union or any other U.S. trading partner.

Trump recently threatened to implement, and then delayed, a 50% tariff on the EU.

Macy’s sells a mix of national band private brands, which are sold exclusively at its stores and on its website. Spring told CNBC that the company has reduced the share of its private brands that comes from China to about 27% — a drop from 32% last year and more than 50% before the Covid pandemic.

CFO Adrian Mitchell said on the company’s earnings call that Macy’s has taken action to blunt the impact of tariffs on national brands it sells, too. He said the company has renegotiated orders with vendors, canceled some orders and delayed others.

“We’ve been able to gain some vendor discounts, which has been helpful to us, but we’re absorbing some of that price as well,” he said.

And in some cases, Macy’s is keeping prices the same despite higher costs to appeal to value-conscious customers and gain market share from competitors, Mitchell added.

Spring said on the company’s earnings call on Wednesday that Macy’s sales were stronger in March and April compared to February, attributing some of that to improving weather. So far, sales trends in the second quarter have been above those in March and April, he added.

Macy’s plans to close about 150 underperforming namesake stores across the country by early 2027.

In the fiscal first quarter, Macy’s namesake brand remained its weakest. Comparable sales across Macy’s owned and licensed business, plus its online marketplace, declined 2.1% year over year.

When Macy’s took out the stores that it plans to shutter, however, trends looked slightly better. Comparable sales of its go-forward business, including its owned and licensed business and online marketplace, declined 1.9%

On the other hand, comparable sales at Bloomingdale’s rose 3.8% year over year, including its owned, licensed and marketplace businesses. Comparable sales at Bluemercury climbed 1.5% year over year.

To try to turn its namesake stores around, Macy’s has invested in 50 locations — dubbed the “First 50” — with more staffing, sharper displays and changes to its mix of merchandise. It has expanded that initiative to 75 additional stores, bringing the total to 125 locations that have gotten increased attention. That’s a little over a third of the 350 namesake locations that Macy’s plans to keep open.

Those 125 locations performed better than the overall Macy’s brand. Comparable sales among those revamped stores owned and licensed by Macy’s were down 0.8% compared with the year-ago period.

On Macy’s earnings call in March — before Trump made several sudden tariff moves that baffled companies and investors — Spring said the company’s guidance “assumes a certain level of uncertainty” about the economic outlook. He said even Macy’s affluent customer “is just as uncertain and as confused and concerned by what’s transpiring.”

Earlier this spring, Macy’s announced a few key leadership changes — including a new chief financial officer. Macy’s new CFO, Thomas Edwards, will begin on June 22. He previously served as the chief financial officer and chief operating officer of Capri Holdings, the parent company of Michael Kors. He will succeed Mitchell, who is leaving Macy’s.

As of Tuesday’s close, Macy’s shares are down about 29% so far this year. That trails the S&P 500′s nearly 1% gains during the same period. Macy’s stock closed on Tuesday at $12.04 per share, bringing the retailer’s market value to $3.35 billion.

This post appeared first on NBC NEWS

Dick’s Sporting Goods said Wednesday it’s standing by its full-year guidance, which includes the expected impact from all tariffs currently in effect.

The sporting goods giant said it’s expecting earnings per share to be between $13.80 and $14.40 in fiscal 2025 — in line with the $14.29 that analysts had expected, according to LSEG.

It’s projecting revenue to be between $13.6 billion and $13.9 billion, which is also in line with expectations of $13.9 billion, according to LSEG.

“We are reaffirming our 2025 outlook, which reflects our strong start to the year and confidence in our strategies and operational strength while still acknowledging the dynamic macroeconomic environment,” CEO Lauren Hobart said in a news release. “Our performance demonstrates the momentum and strength of our long-term strategies and the consistency of our execution.”

Here’s how the company performed in its first fiscal quarter compared with what Wall Street was anticipating, based on a survey of analysts by LSEG:

The company’s reported net income for the three-month period that ended May 3 was $264 million, or $3.24 per share, compared with $275 million, or $3.30 per share, a year earlier. Excluding one-time items related to its acquisition of Foot Locker, Dick’s posted earnings per share of $3.37.

Sales rose to $3.17 billion, up about 5% from $3.02 billion a year earlier.

For most investors, Dick’s results won’t come as a surprise because it preannounced some of its numbers about two weeks ago when it unveiled plans to acquire its longtime rival Foot Locker for $2.4 billion. So far, Dick’s has seen a mix of reactions to the proposed acquisition.

On one hand, Dick’s deal for Foot Locker will allow it to enter international markets for the first time and reach a customer that’s crucial to the sneaker market and doesn’t typically shop in the retailer’s stores. On the other hand, Dick’s is acquiring a business that’s been struggling for years and some aren’t sure needs to exist due to its overlap with other wholesalers and the rise of brands selling directly to consumers.

While shares of Foot Locker initially soared more than 80% after the deal was announced, shares of Dick’s fell about 15%.

The transaction is expected to close in the second half of fiscal 2025 and, for now, Dick’s outlook doesn’t include acquisition-related costs or results from the acquisition.

In the first full fiscal year post-close, Dick’s expects the transaction to be accretive to earnings and deliver between $100 million and $125 million in cost synergies.

This post appeared first on NBC NEWS

Technology Back in Top-5

Last week’s market decline of 2-2.5% (depending on the index) has led to some notable shifts in sector performance and rankings.

This pullback, coming after a strong rally, is changing the order of highs and lows on the weekly chart — a particularly significant development, at least for me.

Let’s dive into the details and see what’s flying around in the market.

The composition of the top five sectors has seen some notable changes. Here’s how it stands now:

The big surprise here is Technology making its way into the top five, displacing Consumer Staples (now at #6). This shift suggests a gradual move from a more defensive positioning to sectors that are more cyclical and economically sensitive.

Another eye-catching move comes from Consumer Discretionary, jumping from #10 to #7 — a significant leap, albeit still in the bottom half of the ranking. Real Estate and Materials saw minor shifts, while Energy dropped to #10 and Health Care remains at #11.

  1. (1) Industrials – (XLI)
  2. (4) Communication Services – (XLC)*
  3. (3) Utilities – (XLU)
  4. (2) Financials – (XLF)*
  5. (6) Technology – (XLK)*
  6. (5) Consumer Staples – (XLP)*
  7. (10) Consumer Discretionary – (XLY)*
  8. (7) Real-Estate – (XLRE)*
  9. (8) Materials – (XLB)*
  10. (9) Energy – (XLE)*
  11. (11) Healthcare – (XLV)

Weekly/Daily RRG Analysis

The weekly Relative Rotation Graph (RRG) provides some interesting insights:

  • Utilities maintains very high readings, but Consumer Staples (highest on RS-Ratio ranking) is likely to be pushed down by weak daily chart readings.
  • Industrials continues to push further into the leading quadrant with stable momentum.
  • Financials and Communication Services are inside the weakening quadrant but have room to curl back towards leading.
  • Technology, despite having the second-lowest RS-Ratio reading, is rapidly improving with a strong RS-Momentum heading over recent weeks.

Remember, the ranking combines daily and weekly readings.

Technology’s high daily chart reading is propelling it into the top five, while Consumer Staples’ weak daily reading is pushing it out.

Industrials: The Leader Holding Strong

XLI is now pushing against its all-time high, just below 145. After two weeks of attempts, last week’s slight market decline confirms that this resistance level has worked.

We’re now looking for where any potential decline might stop and form a new low. The gap area from two weeks ago seems to be a good support area to watch.

The relative strength line breaking out of its consolidation formation continues to drag the RRG lines higher. XLI, for good reason, remains the strongest sector at the moment.

Communication Services: Stable Relative Uptrend

XLC is continuing its move higher with remarkable stability. The uptrend in the RS line is still valid, currently testing the lower boundary of the rising channel.

Due to the lack of upward relative momentum in recent weeks, both RRG lines are now pointing lower.

However, the RS-Ratio line remains well above 100, keeping the XLC tail on the right-hand side of the RRG.

Utilities: Testing Resistance

XLU is pushing against overhead resistance but has yet to manage a decisive break higher.

With defensive sectors under pressure, it’s questionable whether this breakout will happen in the short term.

The RS line versus SPY is dropping back into its trading range, unable to break away decisively. This drop is causing the RS-Momentum line to roll over and start pointing lower.

It’s the recent strength in relative strength that’s keeping Utilities inside the leading quadrant for now.

Financials: At a Crossroads

The Financial sector seems to be respecting the old rising support line as resistance, with the market dropping off that line last week and now trading around $50.

This move is affecting the relative strength line, which has returned to the lower boundary of the rising channel — a level that needs to hold to maintain a positive outlook for XLF.

The RS-Ratio line is stable around 102.50, high enough to keep Financials on the right-hand side of the graph.

The RS-Momentum line has just dropped below 100, positioning the XLF tail inside the weakening quadrant, but with enough room to curl back up before hitting lagging.

Technology: The Week’s Winner

XLK saw a significant jump two weeks ago and has since returned to test the old resistance area as support. If last week’s decline continues, there’s a bit more room to the downside — $220 seems to be a good level to watch for support, marking the bottom of the gap range from two weeks ago.

The jump has pushed the relative strength line above its falling resistance line, a good sign that seems to be breaking the relative downtrend in place since mid-last year.

This is changing the characteristics of the relative strength move for the Technology sector.

For now, it has only pushed the RS-Momentum line above 100, moving XLK into the improving quadrant on the weekly RRG, but it’s already starting to drag the RS-Ratio line higher.

Portfolio Performance

We’re clawing back some of the losses from recent weeks. The underperformance of almost 6% last week has now shrunk to 4.6%. Still behind the benchmark, but closing in again and narrowing the gap.

It’s a long-term game, so we keep pushing forward. So far, nothing out of the ordinary. Let’s wait and see whether we’ve seen the low in underperformance and how long it will take to return to SPY’s performance since inception.

#StayAlert –Julius

Get the latest stock market update with Mary Ellen McGonagle. Learn key downside signals, how to manage pullbacks, and which earnings reports could impact the market next week.

In this week’s episode, Mary Ellen reviews where the markets currently stand and what to watch for to signal further downside. She also highlights ways to combat inevitable pullbacks and shares the key earnings reports that are likely to move the markets in the upcoming week.

This video originally premiered May 23, 2025. You can watch it on our dedicated page for Mary Ellen’s videos.

New videos from Mary Ellen premiere weekly on Fridays. You can view all previously recorded episodes at this link.

If you’re looking for stocks to invest in, be sure to check out the MEM Edge Report! This report gives you detailed information on the top sectors, industries and stocks so you can make informed investment decisions.

Confused by mixed market signals? Follow along as Julius analyzes sector rotation, asset rotation, and global market trends using daily and weekly Relative Rotation Graphs (RRGs).

In this video, Julius puts the current sector rotation in perspective on both weekly and daily Relative Rotation Graphs (RRGs). He also examines asset rotation and the position of the U.S. markets in relation to international equities.

This video was originally published on May 27, 2025. Click on the icon above to view on our dedicated page for Julius.

Past videos from Julius can be found here.

#StayAlert, -Julius

In this video, Chip Anderson, President of StockCharts, sits down with Tony for a conversation in the StockCharts studio! During this in-depth Q&A session, Chip and Tony explore the powerful features that make the OptionsPlay add-on a must-have for options traders using the StockCharts platform. They discuss the integration of the StockCharts Scanning Engine with OptionsPlay strategies—showcasing how this tool enhances your ability to find trade setups quickly and effectively.

This video premiered on May 23, 2025.

In this must-see market update, Larry Williams returns with timely stock market analysis, trading insights, and macroeconomic forecasts. Discover what’s next for the Federal Reserve, interest rates, and inflation — and how it could impact top stocks like Tesla (TSLA), Nvidia (NVDA), Apple (AAPL), and consumer staples (XLP).

This video originally premiered on May 27, 2025. Watch on StockCharts’ dedicated Larry Williams page!

Previously recorded videos from Larry are available at this link.

King Charles III used a significant speech in Canada’s parliament on Tuesday to underscore the country’s sovereignty following pressure from US President Donald Trump.

“Today, Canada faces another critical moment. Democracy, pluralism, the rule of law, self-determination, and freedom are values which Canadians hold dear, and ones which the Government is determined to protect,” the king said from the throne in the Senate chamber as he delivered a speech, which laid out the Canadian government’s legislative agenda for the year ahead.

Charles, 76, is on a two-day trip to Canada, the first time he has visited the country since assuming the throne in 2022. He is the head of state in Canada and 13 other Commonwealth realms, as well as in the United Kingdom.

It was the first time in nearly 50 years that a sovereign had delivered the address and was seen by many as a powerful show of support for Canada.

King Charles’ remarks comes as Trump has repeatedly expressed his desire to annex Canada and make it the 51st state — a move which Canadian Prime Minister Mark Carney has repeatedly rebuffed.

During the roughly 26-minute address, which was written by the Canadian government, Charles spoke of the several challenges the nation faced. “The system of open global trade that, while not perfect, has helped to deliver prosperity for Canadians for decades, is changing. Canada’s relationships with partners are also changing.”

King Charles discussed the changing relationship between Canada and the United States.

“The Prime Minister and the President of the United States, for example, have begun defining a new economic and security relationship between Canada and the U.S., rooted in mutual respect and founded on common interests, to deliver transformational benefits for both sovereign nations,” he said.

Charles also referenced protecting Canada’s sovereignty, saying that the government would look at “rebuilding, rearming, and reinvesting in the Canadian Armed Forces.”

He said the government “will boost Canada’s defence industry by joining ReArm Europe, to invest in transatlantic security with Canada’s European partners. And it will invest to strengthen its presence in the North, which is an integral part of Canada, as this region faces new threats.”

The monarch added: “The government will discharge its duty to protect Canadians and their sovereign rights, from wherever challenges may come at home or abroad.”

King Charles on Tuesday also emphasized that “the Crown has for so long been a symbol of unity for Canada,” adding that “it also represents stability and continuity from the past to the present.”

‘Delicate balancing act’

Charles and his wife, Camilla, made their way to parliament by carriage through the streets of the capital.

As the king formally opened a new session of parliament, he outlined some of Carney’s other priorities, which also focused on domestic issues such as more affordable housing, a tax cut for the middle class and the removal of barriers to interprovincial trade — themes the prime minister promised voters during the recent election campaign.

The king alternated between speaking in English and French – the two official languages of Canada – and received a standing ovation after wrapping up the speech.

Jeffrey Dvorkin, journalist and senior fellow at Massey College in Toronto, described the speech as a “delicate balancing act” after the recent unwanted attention from Trump, but one that touched upon key issues and tensions in Canada.

“Geography has been the greatest uniting force. But now under Prime Minister Carney, Canadians are looking overseas for a different set of connections without necessarily separating from the best connections that Canada has with the United States,” he continued.

“But it certainly was a message to the Trump administration that those days of Canada accepting everything that the United States tries to do, those days are over.”

King Charles and Queen Camilla were warmly welcomed on the tarmac as the couple touched down in Ottawa on Monday afternoon by Carney and Canadian Governor General Mary Simpson, the monarch’s representative in the country.

On Monday, Carney – who was elected in March largely on an anti-Trump platform – praised the “historic ties” between Canada and the United Kingdom which “crises only fortify.”

This post appeared first on cnn.com

Thousands of Palestinians overran a newly established aid site in southern Gaza on Tuesday that is part of a controversial new Israeli- and US-approved aid distribution mechanism that began on Tuesday after months of blockade.

Videos from the distribution site in Tel al-Sultan, run by the Gaza Humanitarian Foundation (GHF), showed large crowds storming the facilities, tearing down some of the fencing and appearing to climb over barriers designed to control the flow of the crowd.

A diplomatic official called the chaos at the site “a surprise to no one.”

An 11-week Israeli blockade on humanitarian aid has pushed the enclave’s population of more than 2 million Palestinians towards famine and into a deepening humanitarian crisis, with the first resumption of humanitarian aid trickling into the besieged enclave last week.

The GHF acknowledged the pandemonium, saying “the GHF team fell back to allow a small number of Gazans to take aid safely and dissipate. This was done in accordance with GHF protocol to avoid casualties.” A security source said American security contractors on the ground did not fire any shots and that operations would resume at the site on Wednesday.

“It’s a big failure that we warned against,” said Amjad al-Shawa, director of Palestinian Non-Governmental Organizations Network.

“If Israel believes that through this blockade and emboldening starvation, which violates humanitarian principles, that this distribution method would work, they are mistaken.”

GHF said it has distributed about 8,000 food boxes totaling 462,000 meals in Gaza so far. They say the flow of meals will increase each day, with a goal of delivering food to 1.2 million – 60% of Gaza’s population – by the end of the week.

The GHF claimed it began operating on Monday, but photos from the organization showed only a handful of people carrying boxes of aid, with pallets of boxes sitting at an otherwise empty lot.

GHF is readying three additional sites for the distribution of aid, two of which are in southern Gaza and one in central Gaza. All of the sites in the south are in an area that fell under a massive evacuation order one day earlier.

There are no distribution sites in northern Gaza – a point of criticism from many aid experts. The UN has previously warned that the fact the initial sites were only in southern and central Gaza could be seen as encouraging Israel’s publicly stated goal of forcing “the entire Gazan population” out of northern Gaza, as Defense Minister Israel Katz put it earlier this month.

The United Nations said on Tuesday that Israel continues to deny it authorization to deliver food directly to families in Gaza, but they have thousands of trucks ready to enter the strip. The UN Relief and Works Agency for Palestine Refugees (UNRWA) said it was ready, with other humanitarian organizations, “to distribute meaningful quantities of aid the moment we are allowed to.”

“The amount of supplies that were permitted to enter the Gaza Strip has been so minimal that they have not even reached families outside of one small area,” UNRWA said in a statement.

Israel and the US had declined to name the humanitarian organizations involved in the controversial new mechanism, but images from the GHF showed boxes labeled “Rahma Worldwide,” a Michigan-based non-profit organization that says it provides “aid and assistance to the most vulnerable communities in the world.”

This is a developing story and will be updated.

This post appeared first on cnn.com

For decades, Germany has stood squarely in Israel’s corner, its dark history of Jewish persecution shaping its modern-day policy of virtually unquestioned backing.

In the aftermath of the Hamas October 7, 2023, attacks, the question of German political and military support for Israel was raised – and reaffirmed by then-Chancellor Olaf Scholz.

But comments by new Chancellor Friedrich Merz in recent days have put Germany’s support for Israel under the spotlight.

“We are dismayed by the fate of the civilian population and the terrible suffering of the civilian population” in Gaza, the chancellor said on Tuesday while on a visit to Turku, Finland.

The question of what provoked Merz’s sharp change in tone toward Israel remains unclear. Peter Lintl, an analyst from the German Institute of International and Security Affairs who focuses on German-Israeli relations, believes Merz wanted to get into office, start conversations with Israeli leaders and get an understanding of the direction of travel before outlining his stance.

Merz followed his Tuesday comments by questioning the current actions of the Israel Defense Forces inside Gaza.

Referring to Israel’s expanded operations and the humanitarian crisis in the territory, the German chancellor said that he “no longer sees any logic as to how they serve the goal of fighting terror and freeing the hostages. In this respect, I take a very, very critical view of what has happened in the last few days.”

Tuesday’s language came hot on the heels of a thinly veiled threat from Merz in Berlin on Monday. “The Israeli government must not do anything that its best friends are no longer prepared to accept,” he said.

Merz has also done the previously unthinkable and questioned whether Israel may be violating international law.

National interest

The change of tone is particularly striking because of Germany’s long-standing stance on Israel, that is connected to a theory known as “staatsraison” or national interest.

The connection of staatsraison and Israel were made by then-Chancellor Angela Merkel in 2008.

She told the Israeli parliament, or Knesset, that the “historical responsibility of Germany is part of my country’s national interest (staatsraison). This means that, for me as German chancellor, Israel’s security is never negotiable.”

Similar words were also used by Scholz in the wake of the October 7 attacks in which Hamas militants killed more than 1,200 people in southern Israel and kidnapped some 250 others.

Since Merkel’s speech, and particularly after she stepped down as chancellor in 2021, “the term got a life of its own,” the analyst Lintl says.

“It appeared that if you want to be a respected politician, you have to use the term because it came to signal … that Israel’s security is German staatsraison. It is the minimum threshold we use to distance ourselves from the past,” Lintl says.

That “past” refers largely to the Holocaust in which the Nazis killed more than 6 million Jews.

In Finland on Tuesday, Merz was quick to reiterate he is not abandoning staatsraison entirely.Israel’s security and existence are, as we have been saying for many years and decades, part of our German staatsraison,” but he has clearly set out to clarify it.

Lintl added: “We didn’t know how this government will conduct itself, or how this government policy toward Israel will look – right now we have more of an idea.”

It remains unclear if Merz and Germany’s relationship with Israel will shift significantly.

Merz has maintained he will continue to talk with Israeli leader Benjamin Netanyahu. Merz has also said he would find “ways and means” for Israel’s prime minister to visit Germany given the ICC (International Criminal Court) arrest warrant out for him.

For now, the statements from Israel seem muted, and respectful.

The Israeli Ambassador to Germany Ron Prosor told German TV Tuesday morning, “when somebody criticizes Israel, and when Friedrich Merz makes this criticism, we listen very carefully because he is a friend.”

Inke Kappler contributed reporting.

This post appeared first on cnn.com