[Music] That's the closing bell on Wall Street and now it's market domination overtime. We're giving you full team coverage of all the moves to get you up to speed on the action from today's trade. Yahoo.Finances Jared Blickery joining us now to break down the market action. Jared, >> thank you Josh. three down days in a row.And also, I would add that this is the worst week on track for the worst week since the beginning of August. That would be August 1st. Kind of a nasty day there in and of itself.But let ...

Market Overview - The market has experienced three consecutive down days, marking the worst week since early August, with the Dow down 173 points or approximately 0.4% [2] - The Nasdaq and S&P 500 showed similar trends, while small caps were down the most at 0.9% [2] - The VIX index has been trending upwards, indicating increased market volatility [3] Sector Performance - The energy sector (XLE) was the only sector in the green, up 0.9%, breaking out of a multi-month base [4] - Healthcare, consumer discretionary, and materials sectors were down by 1% or more, with healthcare down the most at 1.6% [5] Company Insights: Pure Storage - Pure Storage announced advancements in data storage technology aimed at enhancing AI initiatives for businesses, emphasizing the need for better data accessibility [6][8] - The company claims to have a competitive advantage due to its significant investment in R&D, which is higher than its competitors [12] - Pure Storage's new product, Flashblade Exit, reportedly offers performance benchmarks five times higher than competitors, positioning the company favorably in the market [15] Company Insights: Costco - Costco's fourth-quarter results showed revenue of $86.16 billion, slightly above expectations, with same-store sales growth of 6.4% [44] - The Canadian segment contributed significantly to sales growth, with a 6.3% increase, while U.S. sales rose by 5% [46] - Costco's membership price increase has not deterred consumers, who are increasingly value-conscious [46] Industry Trends: Formula 1 - Formula 1 is experiencing a surge in popularity, with viewership expected to reach an average of 1.4 million per race by the 2025 season [21] - The sport has successfully engaged a younger audience, partly due to the influence of Netflix and increased diversity among fans [23] - The introduction of a budget cap has led to greater competitiveness, with multiple teams winning races, enhancing the sport's appeal [24]

Core Insights - Costco's earnings per share (EPS) for the fiscal fourth quarter was $5.87, with total revenue reaching $86.16 billion, meeting Wall Street expectations despite concerns over tariffs and inflation impacting consumer spending [1] - The company reported a net sales increase of 8% to $84.4 billion compared to $78.2 billion in the same quarter last year, with comparable sales in the U.S. rising 6% on an adjusted basis [2] Financial Performance - Wall Street had projected an EPS of $5.80 on revenue of $86 billion, with expectations for same-store sales growth of 5.9% year-over-year [3] - Membership fees generated $1.7 billion in revenue, marking a 14% year-over-year increase, highlighting strong customer loyalty with renewal rates frequently surpassing 90% [4] Market Position and Strategy - Costco's supply-chain capabilities and strong vendor relationships position it well to handle tariff-related pressures, with analysts noting that its value proposition could become more appealing in an inflationary environment [5] - The company has introduced an extra hour of shopping for executive members, which contributed an additional 1% to sales [4] Stock Performance and Valuation - Costco's stock has increased approximately 3.8% year-to-date, although it experienced a decline of less than 1% after the market closed [6] - Analysts express concerns regarding the sustainability of Costco's high valuation, indicating that the stock valuation is challenging compared to historical standards [6]

Market Performance - U.S. stock markets experienced their third consecutive day of declines, with the Nasdaq Composite and S&P 500 both falling by 0.5%, while the Dow Jones Industrial Average dipped by 0.4% [1] - Despite recent losses, all three major indexes remained close to record highs achieved earlier in the week [1] Economic Indicators - The 10-year Treasury yield rose to 4.17% from 4.15%, indicating stronger economic conditions that may make equities less attractive [2] - The final revision of second-quarter GDP showed a robust annual growth rate of 3.8%, up from a previous estimate of 3.3%, raising concerns about the need for continued monetary easing [3] - Weekly jobless claims fell to 218,000 from 232,000, suggesting a tightening labor market [4] Federal Reserve Outlook - Comments from Kansas City Fed President Jeff Schmid indicated that the Federal Reserve may not need to lower interest rates soon, contrasting with earlier market expectations for multiple rate cuts [5] - The upcoming release of the U.S. Core PCE Price Index is anticipated to influence future monetary policy decisions, with forecasts of a 0.2% monthly increase and a 2.8% annual rate [6] Corporate News - CarMax shares plummeted by 20% after missing analysts' estimates for second-quarter results [10] - IBM shares surged over 5% following HSBC's announcement of successful use of IBM's quantum computers for bond trading [11] - Intel's shares climbed over 6.5% due to reports of seeking a substantial investment from Apple [12] - Starbucks announced plans to lay off approximately 900 corporate employees and close some stores, expecting a 1% decline in total store count for 2025 [13] - Lithium Americas shares soared 95.8% on reports of potential U.S. government ownership stake due to its lithium project in Nevada [16]

Sales Performance - Net sales reached $84.4 billion, representing an 8.0% growth[4] - Comparable sales increased by 5.7%[4] - Adjusted comparable sales, excluding gasoline price and foreign exchange impacts, grew by 6.4%[4] - E-commerce comparable sales saw a 13.6% increase, with an adjusted increase of 13.5% excluding foreign exchange impacts[4] - US comparable sales increased by 5.1%, while adjusted US comparable sales grew by 6.0%[8] Financial Highlights - Net income was $2.61 billion, and diluted EPS was $5.87, representing a 10.9% and 11.0% growth respectively[9] - Gross margin increased by 13 bps compared to Q4 FY'24, and 3 bps excluding gas impact[9] - SG&A decreased by 17 bps compared to Q4 FY'24, and 9 bps excluding gas impact[9] Membership Metrics - Membership income grew by 14.0%, or 13.6% excluding foreign exchange impacts[12] - The worldwide membership renewal rate was 89.8%, with a US/CN renewal rate of 92.3%[12] - Paid memberships reached 81.0 million, a 6.3% increase[15] - Total cardholders amounted to 145.2 million, a 6.1% increase[15] Digital Performance - E-commerce comparable sales increased by 13.6%, with an adjusted increase of 13.5%[17] - E-commerce site traffic increased by 27%[20] Warehouse Expansion - The company ended FY'25 with a total of 914 warehouses, including 629 in the US, 110 in Canada, and 175 in other international locations[23] - The company plans to expand to 944 warehouses in FY'26[23]

TikTok Deal - The US version of TikTok is valued at $14 billion, with American investors taking control of its operations [2][9] - Key investors include Oracle (ORCL), Dell (DELL), Rupert Murdoch, Abu Dhabi's MGX, and Silver Lake, with Oracle expected to oversee the app's security [2][3][9] - President Trump indicated that the US government anticipates generating tax revenue from the TikTok deal, which he claims has China's support despite some resistance [3][4][9] Corporate Earnings - Costco Wholesale Corporation (COST) reported Q4 2025 earnings with an EPS of $5.87, exceeding estimates of $5.82, and revenue of $86.16 billion, slightly above the $86.03 billion estimate [5][9] - Comparable sales for Costco grew by 5.7%, just under the 5.85% estimate, while excluding gas and currency effects, sales grew by 6.4%, beating the 6.21% estimate [5][9] Corporate Restructuring - Starbucks (SBUX) is undergoing significant restructuring, including the closure of several stores, such as its iconic Seattle roastery [6][9] Market Performance - The Dow Jones Industrial Average unofficially closed down 161.84 points (0.35%) at 45,959.44 [7][9] - US Money-Market Fund Assets reached a record $7.31 trillion, indicating a positive economic indicator [7][9]

Group 1: Financial Performance - Costco reported fourth-quarter revenue of $86.16 billion, exceeding analyst estimates of $86.12 billion [1] - Adjusted earnings for the fourth quarter were $5.87 per share, surpassing estimates of $5.80 per share [1] - Net sales for the fourth quarter increased by 8% year-over-year [2] Group 2: Comparable Sales and Membership Fees - Total comparable sales rose by 5.7% year-over-year, with regional breakdowns showing U.S. up 5.1%, Canada up 6.3%, and Other International up 8.6% [2][5] - Membership fees reached approximately $1.72 billion, up from $1.51 billion in the same quarter last year [2] - The company increased its annual membership fee by $5 in September 2024, marking the first hike since 2017 [2] Group 3: Operational Highlights - Costco operates 914 warehouses, including 629 in the U.S. [2] - The company ended the quarter with approximately $14.16 billion in cash and cash equivalents [3] - Costco shares were down 0.21% in after-hours trading, priced at $940 at the time of publication [3]

Group 1 - The core point of the article is that Costco's fourth-quarter sales fell short of Wall Street's expectations, despite the company reporting a per-share profit that exceeded forecasts [1] Group 2 - Costco is a membership warehouse retailer that has reported its financial performance for the fourth quarter [1] - The sales figures for the fourth quarter did not meet the estimates set by analysts on Wall Street [1] - The per-share profit reported by Costco was higher than what analysts had anticipated [1]

Financial Performance - Costco reported a net income of $2.61 billion, or $5.87 per share, for the fiscal fourth quarter, an increase from $2.35 billion, or $5.29 per share, a year earlier [1] - Revenue for the quarter was $86.16 billion, surpassing the expected $86.06 billion [7] Sales Metrics - Same-store sales rose by 6.4% excluding the impact of gas prices and foreign exchange, marking two consecutive quarters of decelerating growth [2] - E-commerce sales increased by 13.5% compared to the previous year, also excluding gas prices and foreign exchange impacts [2] Market Position and Strategy - Costco has opened new locations and attracted younger members, with nearly half of new signups being individuals under 40 [3] - The company is well-positioned to handle higher tariffs due to its grocery-focused sales and flexible merchandise selection [4] - Actions have been taken to mitigate tariff-related costs, including expediting orders and sourcing more items locally [5] Stock Performance - Over the past five years, Costco's shares have increased by approximately 180%, but have underperformed in the current year with just over 2% growth compared to the S&P 500's over 12% gains [6]

Core Insights - Costco Wholesale exceeded fourth-quarter revenue and profit expectations as consumers sought lower-priced essentials amid inflation and a weakening labor market [1][5] - The company's strategy of limited product categories and local sourcing has helped mitigate the impact of tariffs from the Trump administration's trade policies [2] - Strong sales of private-label brands and maintaining lower prices on key items contributed positively to Costco's performance [3] Financial Performance - Costco reported revenue of $86.16 billion, surpassing analysts' average estimate of $86.06 billion [5] - Same-store sales, excluding gas, increased by 6.4%, slightly below the estimated 6.44% [5] - Earnings per share, excluding items, were $5.87, exceeding the analysts' average estimate of $5.80 [5] Membership and Pricing Strategy - The company is reinvesting part of the increased membership fees into sharper pricing for members, benefiting both members and shareholders [4] - Earnings from membership fees rose by 14% to $1.72 billion for the quarter ended August 31 [4]