Wall Street benchmarks higher
Non-farm payrolls tomorrow in focus
Biotech shares gain
AFTER-HOURS
Better than expected earnings were not enough to stop Costco Wholesale Corporation (NASDAQ:COST) shares retreating in after-hours trading on Thursday.
A rise in membership fees was behind the wholesaler's out-performance, but analysts were more concerned with falling gross margins, and the prospect of the company getting sucked into a price war.
The shares fell 3.3% to US$161.51 after hours.
Fiscal fourth quarter earnings clocked in at US$2.08 on an adjusted basis, versus expectations of US$2.02.
Adjusted revenue grew 15.7% to US$42.30bn, which topped analysts' expectations of US$42.30bn.
Stripping out sales of fuel, like-for-like sales on a constant currency basis rose 5.7% year-on-year, well ahead of the consensus forecast of 5.1%.
Yum China Holdings Inc (NYSE:YUMC) also beat expectations with its trading update, and unlike Costco saw its share rise as a result – to US$40.80, having closed in regular trading at US$39.97.
Chief executive Mickey Pant's off, however, though he will remain on the board as vice chairman of the Pizza Hut and Taco Bell franchises operator.
CLOSE
US stocks climbed higher Thursday to reach new records.
The Dow Jones industrial average rose 114 points to 22,775 and the S&P 500 surged 14 points to 2,552.
The TSX in Toronto is up 55 points to stand at 15,776.
US crude was 1.52% up at US$ 50.74.
MID-SESSION
US benchmarks were still ahead at mid-session as traders await the key jobs report tomorrow and the market was buoyed by strong data.
The trade deficit for the US narrowed in August and jobless claims declined more than expected last week.
Meanwhile, new orders for US goods rose in August too.
It all added up to positive sentiment. The Dow Jones added over 95 at 22,759; the S&P 500 gained over 12 at 2,550.
The tech heavy Nasdaq added over 38 points to 6,572.
The ADP employment change reading - always a precursor to the main event - came in at 135,000 - the lowest reading since October 2016 due to hurricanes Harvey and Irma.
The market consensus is for a read tomorrow of a weak 80,000 jobs added for the month.
In stocks, biotechs were in the frame. Onvia Inc (NASDAQ:ONVI) shares surged almost 99% to US$8.95 after the firm agreed to be purchased by Deltek for US$9 per share.
Xenetic Biosciences Inc (NASDAQ:XBIO) also added over 18% to US$3.20.
OPEN
US benchmarks are in the green again on Wednesday, and at fresh all-time highs.
The S&P 500 index is on course to log its longest streak of records for two decades.
The Dow Jones added over 24 at 22,685, while the S&P 500 was boosted 4.66 points, to stand at 2,542.
The tech heavy Nasdaq index added over 19 points to stand at 6,553.
US crude- West Texas Intermediate - added 0.94% to stand at US$ 50.45 a barrel.
In Toronto, the TSX gained over 51 points to stand at 15,722.
In stocks, Biogen Inc (NYSE:BIIB) was a notable gainer, adding 3.35% to US$325.48 a share.
Acuity Brands Inc (NYSE:AYI) shares shed 2.43% to stand at US$173.99 each after the lighting and building management company beat fiscal fourth-quarter profit expectations but missed on sales.