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According to Al Jazeera, the White House stated that the United States will not "rush into a bad deal with Iran" in order to end the war and open the Strait of Hormuz.① Iran 1. Iran says it should confiscate the property of its adversaries in accordance with the law. 2. US media: Iran has begun using abandoned oil tanks to store oil. 3. Iranian police found Starlink devices and other spy equipment in a residence. 4. Iranian hacker group claims to have released information on nearly 2,400 US soldiers stationed in the Middle East. 5. Kpler: Irans unused oil storage space can store up to 22 days worth of supplies. 6. Iranian Army spokesman: The war is not over and the army is on high alert. ② United States 1. US Secretary of State says Iran still retains half of its pre-war missile stockpile. 2. US officials: Trump is dissatisfied with Irans new proposal; the nuclear issue must be resolved first. 3. Vance questions the Pentagons claims, fearing that US missile stockpiles may be rapidly depleted. 4. US says it is aware that Israeli military operations in Lebanon during the ceasefire do not support Israels long-term establishment of a "buffer zone." 5. US Secretary of State Rubio: There is no evidence that Irans new Supreme Leader Mojtaba Khamenei is dead. 6. Data from the American Automobile Association shows that the average price of gasoline in the United States has risen to $4.18 per gallon, the highest level since April 2022. 7. The United States announced sanctions against 35 Iranian-related entities and individuals. 8. US intelligence agencies are assessing how Iran will respond to Trumps unilateral declaration of victory. 9. The US military claims it has ordered 39 ships to turn back during its blockade of Iranian ports. ③ Israel 1. According to Al Jazeera: Israeli forces bombed the town of Zautar in southern Lebanon. 2. Israeli intelligence agencies claim to have infiltrated "core secrets" in Iran and Lebanon. 3. According to Israels Channel 14: Israeli Defense Forces officers were informed at a classified briefing that Iran is successfully restoring some capabilities of its ballistic missile system. ⑤ Strait of Hormuz 1. Trump: Iran wants the United States to open the Strait of Hormuz as soon as possible. 2. Iranian Revolutionary Guard: Absolute control of the Strait of Hormuz has been achieved. 3. US Energy Secretary: The Strait of Hormuz can be opened without clearing all mines. 4. The first liquefied natural gas (LNG) carrier to pass through the Strait of Hormuz since the outbreak of the conflict between the US, Israel, and Iran. 5. According to Irans Fars News Agency, citing satellite monitoring data, 52 ships crossed the US blockade in the past 72 hours, including 31 oil tankers and 21 cargo ships. 6. Iran reiterated its right to take measures to maintain security in the Strait of Hormuz. 6. Ceasefire Negotiations 1. Sources: Iran is expected to submit a revised peace proposal soon. 7. Other Developments 1. Emirates Airlines is gradually resuming some Middle East routes. 2. Saudi Aramco has suspended LNG deliveries for May.Seagate shares rose 17% in after-hours trading after the earnings report was released, which also boosted Western Digital (WDC.O) by 10%, SanDisk (SNDK.O) by 4%, and Micron Technology (MU.O) by 2.7%.Venezuelan interim president Rodriguez: We are close to ending the interest rate cut cycle that began in 2024. In the next monetary policy decision, we will consider the final interest rate cut in this cycle.U.S. State Department: The U.S. ambassador to Ukraine will leave Kyiv in June.

Costco Margins Are Impacted by Growing Freight And Labor Expenses, And The Stock Price Falls

Charlie Brooks

May 27, 2022 09:50

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Costco Wholesale Corp (NASDAQ:COST) announced a decline in gross margins on Thursday, impacted by rising freight and labor expenses across the United States. The news sent shares of the membership-only retailer down 2% and overshadowed an otherwise positive quarterly report.


Fresh COVID-19 lockdowns in China and the Russia-Ukraine conflict have compounded the problem for U.S. businesses.


Costco announced that it would increase prices in certain food categories in order to battle inflation.


Retailers such as Walmart (NYSE:WMT) Inc and Target Corp (NYSE:TGT) have warned that decades-high inflation will have a negative impact on their earnings, as shoppers hesitate from purchasing non-essential and high-margin goods.


The average Costco buyer earns more than the average Walmart and Target shopper, allowing Costco to generate quarterly earnings and revenue that easily exceeds expectations.


Memberships and sales have been boosted by the company's efforts to keep gas prices several cents below the national average.


Costco, in contrast to Walmart, reported that there has not been a significant shift from branded products to its private label product, Kirkland Signature.


"We aren't really observing a decline in commerce. This year, more money is being spent on tickets, dining out, travel, tires, and gasoline "In a post-earnings conference call, Robert Nelson, senior vice president of finance and investor relations, said.


Costco's gross margins decreased by 99 basis points in the third quarter.


According to data from Refinitiv IBES, Costco's total sales for the quarter ending May 8 increased by 16 percent to $52.60 billion, surpassing analysts' projections of $51.71 billion.


Excluding adjustments, Costco's earnings per share were $3.17, exceeding analysts' expectations of $3.03.