Stock Market News: Costco Sales Soar; Starbucks Slashes Profit Projections
Thursday morning was another positive one on Wall Street, extending the recent bullish run for major market benchmarks. The latest move higher came after the Federal Reserve announced further extraordinary measures to provide liquidity for the financial system, adding details on existing programs and opening up the potential for more financing for small and midsize businesses, local governments, and others hit hard by the coronavirus pandemic. As of 11 a.m. EDT today, the Dow Jones Industrial Average (DJINDICES: ^DJI) was up 306 points to 23,739. The S&P 500 (SNPINDEX: ^GSPC) rose 37 points to 2,787, and the Nasdaq Composite (NASDAQINDEX: ^IXIC) gained 28 points to 8,119.
Even with the Fed's latest moves, the COVID-19 outbreak continues to bring extensive economic disruptions. Costco Wholesale (NASDAQ: COST) has seen the effect. Its customers are ramping up their buying in anticipation for long periods of staying at home, and that became clear in its March sales numbers. For coffee giant Starbucks (NASDAQ: SBUX), though, the effects haven't been as benign, and it's making dire predictions about how much its profits could fall.
Shares of Costco Wholesale were down almost 2% Thursday morning, falling despite what would have seemed like upbeat sales news under ordinary circumstances. The numbers that Costco posted showed much larger gains than are typical for the warehouse retailer, but they still weren't quite as good as some had hoped.
Source Fool.com
