U.S. stocks struggled for direction yesterday, with major indexes paring an early advance with the Nasdaq down firmly as major technology stocks sold off. That was offset an uptrend in banking stocks.
The CEO of Berkshire Hathaway, Warren Buffet, and JP Morgan’s CEO Jaime Dimon wrote an OP ED piece in the WSJ calling for America’s public companies to stop making quarterly profit forecasts. Buffet and Dimon said the quarterly earnings guidance leads to an unhealthy focus on short-term profits and the expense of a good long-term strategy.
Shares of Costco traded higher yesterday, after the company reported May sales showing same-store sales were up 14% to $11.02 billion from $9.66 billion in the same month a year ago. E-commerce sales were up 34.4%, the company said. In the U.S. the strongest regions were the Midwest, Texas and the Southeast, while internationally, Mexico, Japan and Taiwan were standouts.
Jobless claims were 222k last week and the rate of layoffs in the economy are at 50 year lows as the labor market continues to be on fire.