U.S. markets are set to open lower on Wednesday amid the departure of economic advisor Gary Cohn due to differences with President Donald Trump over trade tariffs. Moreover, economic data shows higher labor costs, which could be a source of future inflation.
Shares of Dollar Tree Inc. (DLTR, Financial) fell on the heels of the company reporting its financial results for the fourth quarter. The company posted adjusted earnings per share of $1.89. The company’s revenue of $6.36 billion was also 12.8% higher than the figure reported a year earlier. The company fell short of analysts' estimates by 1 cent in earnings per share and $30 million in revenue.
Further, gross profit increased 16.3% to $2.10 billion, compared to $1.81 billion in the same quarter of the previous year. As a percentage of sales, gross margin increased to 33.0% compared to 32.1% in the prior year. That improvement was due to lower merchandise costs, markdowns and occupancy costs.
Now, the company expects net sales for the next quarter to be between $5.53 billion and $5.63 billion and diluted earnings per share to be in the range of $1.18 to $1.25.
Gainers
• Micron Technology Inc. (MU, Financial)
• H&R Block Inc. (HRB, Financial)
• Autodesk Inc. (ADSK, Financial)
Losers
• Ross Stores Inc. (ROST)
• Dollar General Corp. (DG, Financial)
• Mondelez International Inc. (MDLZ, Financial)
Global Markets
The main European stock markets closed in positive territory. The U.K.'s FTSE gained 0.13% and Germany's Dax gained 0.51%, but France's CAC retreated 0.19% and Spain's Ibex fell 0.22%.
In Asia, India’s BSE Sensex fell 0.85%, Japan's Nikkei lost 0.77%, Hong Kong's Hang Seng retreated 1.03% and China´s SSE Composite slid 0.55%.
Disclosure: The author holds no positions in any stocks mentioned.
