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Market news: The Yemeni armed forces reported that Houthi strongholds in Taiz, Yemen, were hit by three airstrikes.September 13th - According to the Wall Street Journal, recent sales data shows that Tesla (TSLA.O) is once again expanding its market share in the US electric vehicle market as traditional automakers withdraw from the sector. According to Motor Intelligence data, Tesla has regained more than half of the US electric vehicle market, reaching 52% in the first eight months of 2026, up from 43% in the same period last year. However, Tesla has not escaped the overall market downturn. So far this year, its US sales are 325,351 vehicles, a 16% decrease year-over-year. But the overall electric vehicle market has shrunk even more, declining by 30%. Tesla once accounted for more than 80% of US electric vehicle sales, but in recent years, its share has continued to decline as established automakers such as Hyundai, Ford, and GM have launched electric models. In 2025, Teslas share fell to a record low of 41%, when Musks political involvement and cooperation with the Trump administration to cut federal government spending alienated some buyers and led to protests outside stores. Now, the Austin, Texas-based company is recovering lost ground, even though it has downplayed its core automotive business.September 13th - According to the Wall Street Journal, Canadian Prime Minister Mark Carney is pushing for a bold proposal: to make Canada an "associate member" of the European Union, in order to deepen economic and security ties with Europe and reduce dependence on the United States. The EU is open to the idea, while US officials have expressed skepticism. Canada and the United States are embroiled in the worst bilateral trade war in modern history. The Trump administrations threat to make Canada the USs "51st state" has prompted Carney to accelerate Canadas "pivot to Europe." Carney has privately communicated with key European leaders, including those from France, Italy, Germany, and the Nordic countries, to explore ways to allow Canada to integrate more deeply into the EU. According to sources, Carney has instructed his special envoy to Europe to explore the most ambitious possibilities without making Canada a full member of the EU or its common market. Technical working groups are still outlining the details, and Carney has told aides that this would be a repositioning of an economy and society that has been dominated by the United States for half a century.On September 13th, it was reported that the National Healthcare Security Administration established a credit evaluation system for pharmaceutical pricing and procurement in August 2020 to guide pharmaceutical companies to operate with integrity and compliance, and to create a fair and just business environment for the pharmaceutical industry. Analysis of commercial bribery cases in the pharmaceutical procurement and sales sector over the past three years revealed that some medical institutions have lax internal education and management, with their staff accepting commercial bribes from dishonest companies on a frequent, large-scale, and prolonged basis. Following the public exposure of a Shanghai-based science and technology trading companys involvement in stent and balloon bribery at the Second Affiliated Hospital of Hebei Medical University, which allegedly received a 5,000 yuan kickback per stent, the hospital was involved in nine more judicial and criminal judgments in the second half of 2025 alone. Staff members of this hospital accepted commercial bribes 46 times, with the largest single bribe amounting to 16.58 million yuan, lasting for up to 11 years, and totaling 184 million yuan.Artificial Intelligence: 1. Altman: OpenAI will not go public this year; a lot of security work still needs to be done. 2. OpenAI Codex Product Manager: Several quality issues in Astra have been discovered and fixed. 3. ECB President Lagarde: A correction in the AI sector is entirely possible, but when it will happen is unclear. 4. Anthropic CEO calls for slowing down the pace of improving AI model capabilities to ensure their security. OpenAI founders Altman and Musk subsequently made similar statements. New Energy Vehicles: 1. Cui Dongshu of the China Passenger Car Association: The current downturn in the passenger car market is a phase of structural fluctuation. 2. Tesla announces it will showcase its next-generation Roadster electric supercar on October 1st; speculation about a SpaceX merger intensifies. Other: 1. 2025 World-Class Scientific Journals Directory Released. 2. Joint construction of the Yangtze River Delta Scientific Data Sharing Service Platform launched. 3. Xiongan International Computing Power Integrated Dispatch Center launched. 4. Report: China ranks second in global space infrastructure assessment. 5. Major Project of the National Natural Science Foundation of China Yangtze River Delta Basic Research Joint Fund launched. 6. The Dark Side of the Moon: Information circulating online regarding the founder and employees is malicious fabrication; a police report has been filed. 7. Oracle co-founder Larry Ellison has cancelled plans to sell up to $7.5 billion worth of Oracle shares. 8. SpaceXs weighting in the Nasdaq 100 index will increase after the index adjustment, expected to rise from approximately 1.28% to approximately 2.82%.

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.