Oil Futures Recover After Early Weakness, Settle Sharply Higher
Crude oil prices rallied sharply on Thursday, rebounding strongly after drifting down earlier in the session amid fears of a recession and uncertainty over sanctions on Russia by the European Union.
Oil prices moved higher amid expectations of a pick up in energy demand on reports Chinese officials are planning to ease restrictions in Shanghai.
The dollar’s weakness – the dollar index dropped more than 1% today – contributed significantly to the rise in oil prices.
West Texas Intermediate Crude oil futures for June ended higher by $2.62 or about 2.4% at $112.21 a barrel, moving up after two successive days of losses. WTI crude futures dropped to a low of $105.13 a barrel earlier in the day.
Brent crude futures for July settled at $112.04 a barrel, gaining $2.93 or 2.7%.
Data released by the Energy Information Administration (EIA) on Wednesday said crude inventories dropped by 3.4 million barrels last week, as against expectations for a rise of 2.1 million barrels.
Gasoline stocks fell 4.8 million barrels in the week, nearly five times more than the expected drop, while distillate supplies increased by 1.2 million barrels, against an expected drop of 1 million barrels.
Deckers Outdoor Corp Bottom Line Rises In Q4, Beats estimates
Deckers Outdoor Corp (DECK) announced a profit for its fourth quarter that increased from last year and beat the Street estimates.
The company’s bottom line totaled $68.82 million, or $2.51 per share. This compares with $33.46 million, or $1.18 per share, in last year’s fourth quarter.
Analysts on average had expected the company to earn $1.32 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.
The company’s revenue for the quarter rose 31.2% to $736.01 million from $561.19 million last year.
Deckers Outdoor Corp earnings at a glance (GAAP) :
-Earnings (Q4): $68.82 Mln. vs. $33.46 Mln. last year.
-EPS (Q4): $2.51 vs. $1.18 last year.
-Analyst Estimate: $1.32
-Revenue (Q4): $736.01 Mln vs. $561.19 Mln last year.
European Economics Preview: Eurozone Industrial Production Due
Industrial production data from eurozone is due on Friday, headlining a light day for the European economic news.
At 2.00 am ET, Statistics Norway releases GDP data for the first quarter. Mainland-Norway is expected to contract 0.5 percent sequentially, reversing the 1.4 percent rise in the fourth quarter.
At 2.45 am ET, France final consumer and harmonized prices figures are due. The statistical office is expected to confirm 4.8 percent inflation for April.
At 3.00 am ET, Spain’s INE releases revised CPI & HICP data. According to flash estimate, consumer price inflation eased to 8.4 percent in April from 9.8 percent in March.
In the meantime, retail sales and industrial production data from Turkey and industrial output from Hungary are due.
At 4.00 am ET, consumer price data is due from Poland.
At 5.00 am ET, Eurostat is scheduled to issue Euro area industrial production data for March. Economists forecast output to fall 2.0 percent on month, in contrast to the 0.7 percent rise in February.
Yamaha Recalls Wolverine RMAX Off-Road Side-By-Side Vehicles
Yamaha Motor Corp. USA, affiliated to Japanese automaker Yamaha Motor Co. Ltd., is recalling about 4,130 units of Wolverine RMAX Off-Road Side-By-Side vehicles citing fire and explosion hazards, the U.S. Consumer Product Safety Commission said.
This recall involves Off-Road Side-by-Side vehicles with model numbers YXF10WPZMG (Wolverine RMAX 4 SE), YXF10WPLML (Wolverine RMAX 4 LE), YXF10WPAMS (Wolverine RMAX 4), YXE10WPZMG (Wolverine RMAX 2 SE), YXE10WPAMS/YXE10WPAMW (Wolverine RMAX 2), and YXE10WPLML (Wolverine RMAX 2 LE).
The side-by-side vehicles were manufactured in the United States by Newnan, Georgia-based Yamaha Motor Manufacturing Corp of America. They were sold in silver, white, black, yellow, gray and blue colors.
The vehicles were sold at Yamaha side by side dealers nationwide from February 2021 through July 2021 for between $22,700 and $26,700.
According to the agency, the recalled vehicles can have a damaged fuel tank causing fuel to leak, posing fire and explosion hazards.
The recall was initiated after the Cypress, California-based company received two reports of the fuel tanks being assembled incorrectly. However, there were no incidents of fuel leakage, and no injuries have been reported.
Consumers are urged to immediately stop using the recalled vehicles and contact an authorized Yamaha dealer to schedule a free inspection and repair.
Ross Stores Lowers FY22 Outlook; Shares Down 20%
While reporting its results for the first quarter on Thursday, Ross Stores Inc. (ROST) lowered its outlook for the full year 2022, sending the company’s shares down over 20% in extended trading session.
Looking ahead, CEO Barbara Rentler said, “Given our first quarter results and today’s increasingly uncertain macro-economic and geopolitical environment, we believe it is prudent to adopt a more conservative outlook for the balance of the year.”
The company now expects comparable store sales to decline 2% to 4% and earnings of $4.34 to $4.58 per share for the full year 2022. Previously, the company expected comparable store sales to be flat to up 3% and earnings of $4.71 to $5.12 per share.
Analysts polled by Thomson Reuters currently expect earnings of $5.02 per share for the year.
For the second quarter, the company now forecast same store sales to decrease 4% to 6% with earnings projected to be $0.99 to $1.07 per share. Analysts currently expect earnings of $1.33 per share for the quarter.
ROST closed Thursday’s trading at $92.70, down $0.10 or 0.11%, on the Nasdaq. The stock further dropped $20.89 or 22.54% in the after-hours trade.