Group 1 - New York Times Co. (NYT) is part of the Consumer Staples sector, which is currently ranked 11 within the Zacks Sector Rank, consisting of 179 companies [2] - NYT has a Zacks Rank of 2 (Buy), indicating a positive outlook, with a 5.2% increase in the consensus estimate for its full-year earnings over the past 90 days [3] - Year-to-date, NYT has returned 4.9%, matching the average gain of 4.9% for the Consumer Staples group [4] Group 2 - NYT belongs to the Publishing - Newspapers industry, which is ranked 5 in the Zacks Industry Rank, with an average gain of 35.8% this year, indicating that NYT is slightly underperforming its industry [5] - Another stock in the Consumer Staples sector, WD-40 (WDFC), has outperformed the sector with a year-to-date return of 11.4% and also holds a Zacks Rank of 2 (Buy) [4][5] - The Consumer Products - Staples industry, to which WD-40 belongs, is ranked 174 and has seen a decline of 11% year-to-date [5]

Group 1 - The company has established a strategic framework aimed at achieving operational excellence in its supply chain, which has been crucial for expanding gross margins through cost-reduction initiatives [3] - In the first quarter, the company achieved a global on-time performance rate of 97.6% while increasing production capacity to support key business objectives [4] - The company is re-evaluating its sourcing strategies globally, particularly for steel cans, and is currently assessing the sourcing of its raw materials [4][5] Group 2 - The supply chain team is focused on engaging key suppliers and advancing responsible sourcing, with the first sustainability assessment among Tier 1 suppliers conducted in 2024 [5] - The company has decentralized its supply chain to offset tariffs and has strengthened global partnerships with key suppliers, leading to improved efficiencies and cost savings [6] - The company is evaluating the locations of its distribution centers to reduce delivery miles, which will involve structural changes but will not significantly impact capital expenses due to outsourcing to third-party logistics providers [8]

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Core Viewpoint - WD-40's fiscal Q1 2026 earnings report fell short of analyst expectations, leading to a market sell-off, but this presents a potential buying opportunity for total return investors [2][3] Group 1: Revenue Performance - The company's revenue for Q1 was $154.4 million, growing less than 1%, primarily due to foreign exchange (FX) conversion, with a decline of over 2% on an FX-neutral basis [4] - Direct market sales increased by 8%, driven by growth in the Americas and EIMEA regions, as well as the Specialty products segment [4] - The company anticipates that indirect-market softness will normalize as the year progresses [5] Group 2: Profitability and Margins - Despite disappointing earnings, gross margin expanded by 140 basis points, indicating improved profitability and setting the stage for future earnings strength [6][7] - The increase in selling, general and administrative (SG&A) expenses by 10% was linked to non-recurring charges, which had minimal impact on cash flow [7] - The free cash flow margin remained stable at 17.5%, allowing for continued capital returns, including dividends and share repurchases [7] Group 3: Future Outlook - WD-40 reaffirmed its fiscal 2026 guidance, indicating expectations for results to fall at the high end of the range despite the weak Q1 results [9] - The stock is trading near long-term lows, suggesting a potential rebound that could yield high-double-digit total returns within a few years [8]

Market Performance - The S&P 500 rose 0.6%, reaching a new all-time high, while the Dow Jones Industrial Average increased by 237 points (0.5%) and also set a record. The Nasdaq composite led with a 0.8% gain [1][16] - The S&P 500 closed at 6,966.28, the Dow at 49,504.07, and the Nasdaq at 23,671.35 [6][16] Company Developments - Vistra's stock surged 10.5% after signing a 20-year agreement to supply electricity from three nuclear plants to Meta Platforms [1][16] - Oklo's shares jumped 7.9% following a deal with Meta Platforms to secure nuclear fuel and advance its project in Pike County, Ohio [2][16] - Homebuilders and housing-related companies saw strong performance after President Trump announced a plan to lower mortgage rates, with Builders FirstSource rising 12%, Lennar up 8.9%, D.R. Horton climbing 7.8%, and PulteGroup increasing by 7.3% [1][16] - General Motors experienced a 2.7% decline after announcing a $6 billion hit to its results for Q4 2025 due to its pullback from electric vehicles, in addition to a $1.6 billion charge from the previous quarter [5][16] - WD-40's stock fell 6.6% after reporting weaker-than-expected profits, attributed to timing issues rather than demand [6][16] Economic Indicators - The U.S. job market showed mixed signals, with fewer hires in December than expected, but an improved unemployment rate, indicating a "low-hire, low-fire" state [1][16] - Consumer sentiment is reportedly strengthening, particularly among lower-income households, with inflation expectations at their lowest in a year, potentially allowing the Fed more flexibility in cutting interest rates [11][16] Bond Market Insights - The yield on the 10-year Treasury eased to 4.16%, while the two-year Treasury yield rose to 3.53%, reflecting mixed expectations for future interest rate changes by the Fed [9][10][16] - Traders have reduced the likelihood of an interest rate cut at the upcoming Fed meeting to 5%, down from 11% the previous day, but still expect at least two cuts within the year [7][8][16] Broader Market Trends - Smaller stocks in the Russell 2000 index rose 4.6% this week, outperforming the S&P 500's 1.6% increase, indicating a shift in market leadership away from Big Tech and AI stocks [12][16] - International markets also saw gains, with the French CAC 40 climbing 1.4% and Japan's Nikkei 225 increasing by 1.6% [13][16]

Economic Indicators - US housing starts unexpectedly fell by 4.6% month-over-month to a 5.5-year low of 1.246 million, weaker than expectations of 1.330 million [1] - US building permits fell by 0.2% to 1.412 million, which was stronger than expectations of 1.350 million [1] - US nonfarm payrolls rose by 50,000 in December, weaker than expectations of 70,000, while November's payrolls were revised lower to 56,000 from 64,000 [2] - The December unemployment rate fell by 0.1% to 4.4%, better than expectations of 4.5% [2] Stock Market Performance - The S&P 500 Index closed up by 0.65%, reaching a new all-time high, supported by a resilient US labor market [5][6] - Chipmakers and data storage companies saw significant gains, with Sandisk closing up more than 12% and Intel up more than 10% [15] - Home builders and suppliers rallied after President Trump announced plans for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds, with Builders FirstSource closing up more than 12% [16] - Power producers also experienced gains, with Vistra closing up more than 10% following electricity deals with Meta Platforms [17] Consumer Sentiment and Inflation Expectations - The University of Michigan's US January consumer sentiment index rose by 1.1 to 54.0, stronger than expectations of 53.5 [6] - January 1-year inflation expectations remained unchanged at 4.2%, while 5-10 year inflation expectations rose to 3.4% from 3.2% in December [7] Interest Rates and Federal Reserve Commentary - The 10-year T-note yield rose to a 4-week high of 4.203%, influenced by rising inflation expectations and hawkish comments from Atlanta Fed President Raphael Bostic [10][11] - The markets are currently discounting a 5% chance of a 25 basis point rate cut at the upcoming FOMC meeting [8] International Market Trends - European stock markets, including the Euro Stoxx 50, reached new record highs, with a 1.58% increase [9] - China's Shanghai Composite climbed to a 10.5-year high, closing up by 0.92% [9]

Market Overview - U.S. stocks are rising, with the S&P 500 up 0.5%, the Dow Jones Industrial Average adding 237 points (0.5%), and the Nasdaq composite increasing by 0.7% [1] - The gains follow a mixed U.S. job market report, which may delay interest rate cuts by the Federal Reserve but does not eliminate the possibility [1][2] Job Market Insights - The U.S. Labor Department reported that employers hired fewer workers in December than expected, although the unemployment rate improved [2] - The job market is characterized as being in a "low-hire, low-fire" state [2] Company Performances - Vistra, a power company, surged 11.9% after signing a 20-year electricity supply deal with Meta Platforms [3] - Oklo's stock jumped 12.3% after announcing a deal with Meta Platforms to secure nuclear fuel for its project in Ohio [3] - Homebuilders and housing market companies saw gains following President Trump's announcement to lower mortgage rates, with Builders FirstSource rising 8.5%, Lennar up 5.1%, PulteGroup increasing by 4.9%, and D.R. Horton climbing 4.8% [4][5] Automotive Sector - General Motors experienced a 3.3% drop after announcing a $6 billion hit to its results for Q4 2025 due to its pullback from electric vehicles [6] - The company also reported $1.6 billion in charges from the previous quarter, attributing the decline in EV demand to fewer tax incentives and relaxed fuel-emission regulations [6] Consumer Sentiment - A report indicated strengthening consumer sentiment, particularly among lower-income households, with inflation expectations at their lowest in a year [12] International Markets - Stock markets abroad saw gains, with the French CAC 40 rising 1.3% and Japan's Nikkei 225 jumping 1.6% [13] - Fast Retailing, the company behind Uniqlo, saw a 10.7% increase in stock price after a 34% year-on-year surge in quarterly operating profit [13]

Core Insights - WD-40 Company's shares declined by 7% following first-quarter earnings that fell short of analysts' expectations, with sales up 1% but earnings per share (EPS) down 8% [1] - Despite the decline, management reaffirmed guidance for 2026, indicating that the company is trading at a high valuation of 32 times next year's earnings, even after a 34% drop since late 2024 [1] Group 1 - The first-quarter results were underwhelming, but there are reasons for optimism, such as the focus on premium products and specialty offerings leading to a 140 basis point increase in gross margins and an 18% rise in specialty sales [2] - CEO Steve Brass attributed the sales softness in Q1 to timing-related factors within the marketing distributor network rather than a decline in end-user demand [4] - WD-40 aims to quadruple its international sales over the long term, targeting annualized revenue growth of 6.5% in the Americas, 9.5% in Europe, and 11.5% in Asia [4][6]

Group 1: Housing Market - US housing starts unexpectedly fell by 4.6% month-over-month to a 5.5-year low of 1.246 million, weaker than expectations of 1.330 million [1] - October building permits, a proxy for future construction, fell by 0.2% to 1.412 million, stronger than expectations of 1.350 million [1] - Home builders and home building suppliers are rallying after President Trump called for Fannie Mae and Freddie Mac to purchase $200 billion in mortgage bonds to lower long-term rates and spur housing demand [4][13] Group 2: Labor Market - US nonfarm payrolls rose by 50,000 in December, weaker than expectations of 70,000, with November's payrolls revised lower to 56,000 from 64,000 [2] - The December unemployment rate fell by 0.1% to 4.4%, indicating a stronger labor market than the expected 4.5% [2] - Average hourly earnings rose more than expected, supporting the notion of a resilient labor market [5] Group 3: Stock Market Performance - US stock indexes are climbing on optimism regarding the economic outlook, supported by signs of a resilient labor market and mixed housing news [5] - The S&P 500 Index is up by 0.38%, the Dow Jones Industrials Index is up by 0.21%, and the Nasdaq 100 Index is up by 0.59% [6] - Home builders and building suppliers are seeing significant gains, with Builders FirstSource up more than 7% and other major builders up more than 4% [13] Group 4: Inflation and Interest Rates - The University of Michigan's January 1-year inflation expectations remained unchanged at 4.2%, while the 5-10 year expectations rose to 3.4% from 3.2% [7] - Rising inflation expectations are bearish for T-notes, with the 10-year breakeven inflation rate reaching a 1.5-month high of 2.296% [11] - The markets are discounting a 5% chance of a 25 basis point rate cut at the FOMC's next meeting on January 27-28 [7]

Group 1: Market Reactions and Economic Indicators - Stock futures are muted as traders await a Supreme Court ruling on Trump's tariffs and December payrolls data, with S&P 500 futures up 0.1% and Nasdaq 100 contracts up 0.2% [1] - Mortgage stocks surged after President Trump announced a directive for the purchase of $200 billion in mortgage bonds, with LoanDepot (LDI) rising 16% and Rocket Companies (RKT) increasing by 5% [1][4] - The December jobs report and other economic indicators are scheduled for release, including October housing starts and University of Michigan sentiment [1][19] Group 2: Corporate News - Rio Tinto is in discussions to acquire Glencore, potentially creating the world's largest mining company with a combined market value exceeding $200 billion [2] - TSMC reported quarterly sales that surpassed estimates, raising expectations for sustained global AI spending in 2026 [2] - General Motors shares fell after announcing an additional $6 billion in charges related to cutbacks in electric vehicle and battery operations [2] Group 3: Stock Movements and Company Performance - Mag 7 stocks showed mixed performance in premarket trading, with Alphabet up 0.8% and Meta down 0.2% [3] - AXT Inc. saw a 14% decline after disappointing fourth-quarter revenue forecasts due to fewer export control permits from China [4] - Revolution Medicines gained 13% following reports of Merck's interest in acquiring the cancer drugmaker [4] Group 4: Economic Outlook and Market Sentiment - The S&P 500's early-year rally has slowed, with a shift away from AI stocks towards a broader range of tech players and sectors [5] - Traders are preparing for significant risk events, including the payrolls data and the Supreme Court ruling, which may impact global equities [6] - The market is anticipating a mixed reaction to the jobs data, with expectations for nonfarm payrolls to be around 70,000, in line with consensus [8][34]