Account

New to ADSS? Open an
account now to get started.

OR

Already have an account?

Add funds to your ADSS account

Account

New to ADSS? Open an
account now to get started.

Add funds to your ADSS account

Trends & Analysis
News

Crude oil spikes on US inventories report

News

Does Apple have more room to run?

News

Gold spikes to new highs on Fed remarks

News

GBP/USD price may correct lower

News

Goldman Sachs’ stock surges on upbeat Q2

News

Caution ahead of Netflix’s earnings?

Trends & Analysis
News

Crude oil spikes on US inventories report

News

Does Apple have more room to run?

News

Gold spikes to new highs on Fed remarks

News

GBP/USD price may correct lower

News

Goldman Sachs’ stock surges on upbeat Q2

News

Caution ahead of Netflix’s earnings?

News

Ross Stores shares spike on upbeat results

Monday, May 27, 2024

Today’s headlines

What’s happening: Shares of Ross Stores gained on Friday after the company reported results for its first quarter.

What happened: The discount retailer reported stronger-than-expected sales and earnings for the latest quarter.

Ross Stores also increased its profit forecast for the year, providing a boost to the stock on Friday.

How were the results: The Dublin, California-based company reported a high single-digit increase in sales for the quarter ended May 4.

  • Revenues grew by 8% year-over-year to $4.858 billion, topping consensus estimates of $4.833 billion.
  • Earnings rose to $1.46 per share, from $1.09 per share in the year-ago period, surpassing Wall Street expectations of $1.34 per share.

Why it matters: Several customers have been shopping at off-price retailers with sticky inflation squeezing their overall budgets. However, Ross Stores warned of pressures on discretionary spending having an impact on sales, despite it offering discounts on its branded and designer products.

“Though we had hoped to do better, first quarter sales were in line with guidance despite macroeconomic headwinds that continued to pressure our customers’ discretionary spending. Earnings results for the period were better-than-expected primarily due to lower expenses relative to our plan,” CEO Barbara Rentler said.

The company’s comparable store sales rose 3% in the first quarter. Its operating margin expanded by 205 basis points year-over-year to 12.2%, with a decline in distribution, incentive, and freight costs.

The company spent $262 million on share buybacks during the first quarter and remains on track to repurchasing $1.05 billion worth of its common stock in fiscal 2024.

Management guided to comparable sales growth of 2% to 3% for the second quarter. They projected earnings of $1.43 to $1.49 per share, broadly in-line with market expectations.

Ross Stores also guided to full-year comparable sales growth of 2% to 3% for fiscal 2024. It lifted its earnings guided from a range of $5.64 to $5.89 per share to a range of $5.79 to $5.98 per share.

How shares responded: Shares of Ross Stores jumped 7.8% to close at $142.13 on Friday, following the release of quarterly results. The stock has gained more than 8% over the past month.

What to watch: Investors will continue monitoring overall inflation levels. Markets will also watch promotions offered by the company to drive sales of its higher-value items.

The markets today

The Canadian dollar will be in focus today ahead of a couple of major economic reports

Context: The CAD/USD forex pair rose on Friday as investors assessed the latest economic reports.

Details: Data released on Friday showed retail sales in Canada growing by 0.7% in April. In March, Canada’s retail sales had contracted by 0.2%, representing the third straight month of decline.

Canada’s manufacturing sales grew by 1.2% in April, following a 2.1% decline in March.

Earlier last week, Canada reported that its annual inflation rate had eased to a three-year low of 2.7%, which fuelled prospects of the Bank of Canada beginning to cut its benchmark interest rate at its upcoming policy meeting in June.

Strength in the price of crude oil, one of Canada’s major exports, provided a boost to the loonie. WTI crude oil for July delivery gained 85 cents to close at $77.72 per barrel on Friday.

Weakness in the greenback also lent support to the CAD/USD pair. The US dollar index, which measures the greenback’s performance versus a basket of major peers, fell 0.34% to 104.75 on Friday.

The CAD/USD forex pair rose to 1.3668 on Friday. The S&P/TSX Composite Index spiked 0.54% to close at 22,320.87.

What to watch: Investors await the release of economic data on wholesale sales and CFIB’s business barometer from Canada today. Wholesale sales in Canada, which declined by 1.1% in March, are expected to grow by 0.1% in April. Analysts expect the CFIB’s Business Barometer in Canada to increase to 49 in May, from 47.5 in April.

Other Markets: European indices closed mostly lower on Friday, with the FTSE 100, CAC 40 and STOXX Europe 600 Index down by 0.26%, 0.09% and 0.19%, respectively, and the DAX 40 up by 0.01%.

The news shaping the markets

Ukrainian President Volodymyr Zelenskyy is scheduled to meet Spanish Prime Minister Pedro Sanchez in Spain today to rally support for further military aid. The news sent the safe-haven US dollar index slightly lower in forex trading this morning.


Taiwan’s consumer confidence index increased to 72.20 in May, from a one-year low of 63.37 a month ago, lending support to the TWD/USD forex pair.


China’s industrial profits grew by 4.3% year-over-year to 2,094.69 billion yuan during the first four months of the year. However, the pace of growth remaining the same as in the previous period sent the CNY/USD pair slightly lower in forex trading this morning.


Mexico’s current account deficit shrank to $12,582 million in the first quarter, from $20,598 million in the year-ago period, which lent support to the MXN/USD forex pair.


Peru’s economy grew by 1.4% year-over-year in the first quarter, versus a 0.4% decline in the previous period. However, the PEN/USD pair fell slightly in forex trading this morning.

What else to watch today

Turkey’s manufacturing confidence index and capacity utilization, Germany’s Ifo business climate indicator, Ifo current conditions indicator and Ifo expectations indicator, as well as Brazil’s value of outstanding loans and Central Bank of Brazil focus market readout.


Site by Pink Green
© ADSS 2024


Investing in CFDs involves a high degree of risk that you will lose your money due to the use of leverage, particularly in fast moving markets, where a relatively small movement in the price can lead to a proportionately larger movement in the value of your investment. This can result in loses that exceed the funds in your account. You should consider whether you understand how CFDs work and you should seek independent advice if necessary.

ADS Securities LLC (“ADSS”) is authorised and regulated by the Securities and Commodities Authority (“SCA”) in the United Arab Emirates as a trading broker for Over the Counter (“OTC”) Derivatives contracts and foreign exchange spot markets. ADSS is a limited liability company incorporated under United Arab Emirates law. The company is registered with the Department of Economic Development of Abu Dhabi (No. 1190047) and has its principal place of business at 8th Floor, CI Tower, Corniche Road, P.O. Box 93894, Abu Dhabi, United Arab Emirates.

The information presented is not directed at residents of any particular country outside the United Arab Emirates and is not intended for distribution to, or use by, any person in any country where the distribution or use is contrary to local law or regulation.

ADSS is an execution only service provider and does not provide advice. ADSS may publish general market commentary from time to time. Where it does, the material published does not constitute advice, or a solicitation, or a recommendation to a transaction in any financial instrument. ADSS accepts no responsibility for any use of the content presented and any consequences of that use. No representation or warranty is given as to the completeness of this information. Anyone acting on the information provided does so at their own risk.