Five Below(FIVE) ZACKS·2025-06-04 22:41Market Overview - Major market indexes showed mixed performance with the Dow closing down by 0.18%, S&P 500 up by 0.01%, Nasdaq up by 0.32%, and Russell 2000 down by 0.08% [2] - The market activity was influenced by a weaker-than-expected private-sector payrolls report and ongoing trade uncertainties [1][2] Economic Indicators - The Federal Reserve's Beige Book for May indicated a slight economic slowdown, with half of the 12 regions reporting negative growth [3] - Economic activity increased in Richmond, Atlanta, and Chicago, while other regions remained flat or showed declines [4] - All districts reported increased economic and policy uncertainty, with manufacturing activity slowing down [4] Services Sector Performance - S&P Services PMI for May improved to 53.7 from 50.8 in the previous month, while ISM Services dipped to 49.9, indicating a contraction [5][6] - The S&P PMI reflects a stable domestic business environment, whereas ISM Services showed shrinking orders and inventories with rising prices [6] Company Earnings - Five Below reported Q1 earnings of 86 cents per share, exceeding the Zacks consensus of 83 cents, with revenues of $970.5 million, surpassing expectations [7] - Comparable store sales increased by 7.1%, and Q2 guidance for comps is set between 5-7% [7] - The company raised its lower end of earnings guidance for the full year, despite a leadership change with the COO stepping down [8] Upcoming Economic Data - Jobless Claims data will be released tomorrow, following an unexpected rise in JOLTS job openings to 7.4 million [9] - An update on the April U.S. trade deficit is expected, with projections indicating an improvement to -$63.3 billion from -$140.5 billion [9]