Morning Brew: Costco Rises on Strong Sales, Semiconductor Bill Approved
Costco (NASDAQ:COST) shares surged over 2% in pre-market trading as the company reported an increase in comparable sales across all geographies, driven by robust demand for fresh foods. The retailer also saw a 7.6% year-over-year rise in paid household members, reaching 72 million. Additionally, Costco distributed $6.7 billion in special dividends. This earnings report comes after the announcement that CEO Craig Jelinek would step down.
Palantir Technologies (NYSE:PLTR) announced the extension of its partnership with the U.S. Army, securing a one-year contract valued at $115.04 million for its Vantage program. The deal, which includes $97.35 million awarded and initial funding of $35.6 million, will support the Army's data platform with AI-enabled capabilities, reinforcing Palantir's commitment to enhancing the nation's defense.
Bank of America upgraded several semiconductor stocks, including AMD (NASDAQ:AMD), Micron Technology (NASDAQ:MU), and Intel (NASDAQ:INTC), anticipating an intra-sector rotation after the semiconductor index's significant rise in 2023. Analysts expect continued growth driven by generative AI, complex chips, and the CHIPs Act, despite the consumer chip inventory correction appearing to have concluded.
Dividend activity this week featured increased payouts from Waste Management (NYSE:WM) and Amgen (NASDAQ:AMGN), with AT&T (NYSE:T) and Taiwan Semiconductor (NYSE:TSM) also declaring dividends. Upcoming ex-dividend dates include Alibaba (BABA) and Southwest Airlines (LUV).
Several small-cap stocks experienced significant movements: Aurora Technology Acquisition (ATAK) soared 50%, while Aadi Bioscience (AADI) plummeted 54% following study data for its anti-tumor drug. Other notable movers included Brilliant Acquisition (BRLI) and Ikena Oncology (IKNA).
Pfizer (PFE) announced a 2.4% increase in its quarterly dividend, with a forward yield of 6.43%, payable on March 1 to shareholders of record as of January 26.
The U.S. Senate passed a bill to exempt semiconductor projects from federal environmental permitting, aiming to accelerate the chip industry's development. This could impact companies like Samsung Electronics (SSNLF), Texas Instruments (TXN), Nvidia (NVDA), and Qualcomm (QCOM).
New York Federal Reserve President John Williams stated that it would be "premature" to consider rate cuts in March, emphasizing the need for a sufficiently restrictive monetary policy to ensure inflation returns to 2%.
Chinese EV maker NIO (NIO) plans to introduce its Firefly brand in Europe in 2024, a year earlier than previously announced, as part of its strategy to reach profitability by reducing costs and improving efficiency.
Ladder Capital (LADR) maintained its quarterly dividend at $0.23/share, while Ready Capital (RC) reduced its dividend by 16.7% to $0.30/share. Innovative Industrial Properties (IIPR) slightly increased its dividend by 1.1% to $1.82/share.
Progressive (PGR) reported net premiums written of $4.73 billion for November, with a combined ratio that improved year-over-year, indicating a strong performance in the property and casualty insurance sector.
This article first appeared on GuruFocus.
