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The Dow Jones Industrial Average rose 48.95 points, or 0.10%, to close at 49,500.93 on Friday, February 13; the S&P 500 rose 3.41 points, or 0.05%, to close at 6,836.17; and the Nasdaq Composite fell 50.48 points, or 0.22%, to close at 22,546.67.On February 14, Wang Yi, member of the Political Bureau of the CPC Central Committee and Foreign Minister, met with British Foreign Secretary Cooper on the sidelines of the Munich Security Conference on February 13. Wang Yi stated that both China and the UK are major world powers and permanent members of the UN Security Council, each bearing the responsibility of maintaining international peace and security. They should maintain regular exchanges, strengthen strategic coordination and communication, expand common interests, and safeguard world peace and development. Prime Minister Starmer recently made a successful historic visit to China, restarting Sino-British relations. President Xi Jinping and Prime Minister Starmer agreed to develop a long-term, stable, and comprehensive strategic partnership, reaching broad consensus on bilateral and multilateral cooperation, responding to the expectations of all sectors for the stable development of Sino-British relations. Wang Yi said that both sides should implement the consensus reached by the leaders of the two countries, continuously release the positive effects of bilateral relations, and explore more cooperation potential. Both sides should successfully hold the new round of economic and financial dialogue, the Joint Economic and Trade Commission meeting, and the Sino-British Strategic Dialogue, resume normal exchanges between the two countries legislative bodies, and strengthen people-to-people exchanges. China supports free trade and opposes any form of protectionism. We welcome companies from the UK and other countries to invest in China, make good use of platforms such as the China International Import Expo, and expand exports to China. We hope that the UK will provide a fair, just, and non-discriminatory business environment for Chinese companies.On February 14, Wang Yi, member of the Political Bureau of the CPC Central Committee and Foreign Minister, met with Austrian Foreign Minister Meiner-Reisinger on the sidelines of the Munich Security Conference on February 13. Wang Yi stated that the world is rapidly changing and should be getting better, not worse. Now is the time for countries to strengthen solidarity and cooperation, to jointly uphold the authority and status of the United Nations, and to practice genuine multilateralism. All countries should work together to build a community with a shared future for mankind. This year marks the 55th anniversary of the establishment of diplomatic relations between China and Austria. Both sides should summarize historical experience, adhere to the positioning of friendly strategic partners, and promote the continuous deepening of bilateral relations on the basis of equality and mutual respect. China is willing to maintain close exchanges at all levels with Austria, strengthen mutually beneficial cooperation, and welcomes Austrian enterprises to seize cooperation opportunities in areas such as the digital economy and future industries, creating new highlights of cooperation. China hopes that Austria will provide a fair, just, and non-discriminatory business environment for Chinese enterprises. China supports strengthened exchanges between cultural institutions and art groups of both countries to better promote mutual understanding. China welcomes Austrian citizens to make good use of the visa-free policy to visit and learn about China.U.S. stocks closed on Friday with the Dow Jones Industrial Average up 0.1%, the S&P 500 up 0.05%, and the Nasdaq Composite down 0.22%. Major tech stocks were mixed: Apple (AAPL.O) fell 2.27%, Nvidia (NVDA.O) fell 2.21%, SanDisk (SNDK.O) fell 0.59%, Oracle (ORCL.N) rose 2.34%, and Qualcomm (QCOM.O) rose 1.61%.February 14th - On the afternoon of the 13th local time, thick smoke was seen billowing from the direction of the Nik López oil refinery in Havana, the capital of Cuba, suspected to be a fire.

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.