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February 6th - Hong Kong stocks opened lower but rebounded throughout the day, before slightly retreating in the afternoon. At the close, the Hang Seng Index fell 1.21%, and the Hang Seng Tech Index fell 1.11%. New energy vehicle stocks rallied, with NIO-SW (09866.HK) rising nearly 7%, the company expecting to achieve its first profit in the fourth quarter of 2025. Oil stocks fluctuated higher, with PetroChina (00857.HK) and CNOOC (00883.HK) both rising over 1%. Lithium battery concept stocks were active, with Zhongchuang Aviation (03931.HK) rising over 5% and CATL (03750.HK) rising over 1%. Tea beverage stocks saw their gains narrow in the afternoon, with Chabaidao closing up 6.08%. In addition, traditional Chinese medicine, biomedicine, optical communications, coal, and new consumption concept stocks strengthened during the day. Cloud computing, wind power, nuclear power, leading internet companies, non-ferrous metals, building materials and cement, and artificial intelligence concept stocks were weak during the day.The Hang Seng Index closed down 325.29 points, or 1.21%, at 26,559.95 on Friday, February 6; the Hang Seng Tech Index closed down 59.93 points, or 1.11%, at 5,346.2; the H-share Index closed down 61.96 points, or 0.68%, at 9,031.38; and the Red Chip Index closed down 13.6 points, or 0.31%, at 4,360.7.Hong Kong stocks closed with the Hang Seng Index down 1.21% and the Hang Seng Tech Index down 1.11%. New energy vehicle companies, oil, lithium batteries, tea beverages, and traditional Chinese medicine concepts performed well; cloud computing, wind power, leading tech companies, non-ferrous metals, and building materials and cement sectors were among the biggest losers.February 6th - Today, the draft national standard for pre-prepared meals was released for public comment, outlining regulations for pre-prepared meal products from the perspectives of food safety and nutrition. Pre-prepared meals must not use spoiled or rotten ingredients. Pesticide residues, veterinary drug residues, contaminants, and mycotoxins must all meet relevant limits. Proof of origin and traceability of raw materials are essential. The production process of pre-prepared meals requires strict control of cross-contamination risks, along with temperature control and hygiene management. The standard provides detailed regulations on the amount of raw materials or ingredients used in pre-prepared meals and their content in the finished product, allowing consumers to clearly understand the products true condition through the label. The label must indicate the consumption method: pre-cooked pre-processed meals should be labeled "must be heated or reheated before consumption"; uncooked or partially cooked pre-processed meals should be labeled "must be cooked before consumption."Spains seasonally adjusted industrial production fell 0.3% year-on-year in December, compared with a forecast of 2.5% and a revised previous reading of 4.6% (up from 4.50%).

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.