The US stock futures are implying a higher opening for the major indices after sharp declines yesterday. Nevertheless, the major broader indices (S&P and NASDAQ) are on pace for their worst month since December 2022.

Looking at the futures, they are implying:

  • Dow Industrial Average up 115 points after yesterday's -388 point decline
  • S&P index up 19 points after yesterday's -63.91 decline
  • NASDAQ index up 66 points after yesterday's -207.71 decline

Costco reported quarterly earnings after the close and they surpassed Wall Street expectations, driven by increased grocery sales but offset by reduced purchases of big-ticket items.

Traffic to stores increased, but the average transaction amount dropped.

  • Earnings per share were $4.86 versus $4.79 expected,
  • Revenue at $78.9 billion versus a 77.9 billion expected.
  • The company’s net income rose to $2.2 billion.

Costco’s membership grew, especially in the higher-tier Executive Membership. E-commerce sales declined due to reduced purchases of big-ticket items, but grocery sales remained strong. U.S. sales trends have slowed, and investors are anticipating a membership fee increase. Costco plans to open 10 new stores in the next three months. The company’s stock has outperformed the S&P 500, rising about 21% this year.

Despite all the good news, Costco shares are trading at $543 down $9.93 or -1.8% in premarket trading. The high for the year reached $571.16 back on July 27. The high price last week reached $569.22 before rotating to the downside.

Yesterday the FTC announced that they were suing Amazon alleging a legal monopoly power. Amazon shares fell -4.05% to $125.92. Shares today in premarket are trading at $126.05 up 13% or 0.10%.

Other big Stocks today are showing:

  • Alphabet shares fell -1.94% yesterday. There shares are trading up 0.39% at $129.07 in premarket trading
  • Nvidia closed at $419.11 down -0.74% yesterday. It is shares are currently trading up $3.72 or 0.89% at $422.83
  • Apple fell 2.37% to $171.84. It is currently trading up $0.91 or 0.53% lead $172.75
  • Microsoft fell -1.7% to $312.14. It is currently trading at $1.42 or 0.45% at $313.56