According to the US Census Bureau, retail sales for the month of January fell around 0.8% month-over-month compared to an estimated 0.2%. The decline for January was the largest since March 2023.
Cisco (CSCO) will layoff 5% of its total workforce which will result in up to $800 million in severance and termination costs. The company has also slashed its full-year revenue out look to $51.5 billion to $52.5 billion from $53.8 billion to $55.0 billion
Multiple fast food companies have released their latest earnings reports, including Shake Shack (SHAK) and Wendy's (WEN), with shares of Shake Shack jumping as it beat earnings estimates, while Wendy's shares are slipping as it misses revenue expectations.
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Editor's note: This article was written by Nicholas Jacobino
Video Transcript
BRAD SMITH: Let's get right to it with the three things that you need to know, your roadmap for the trading day. "Yahoo Finance's" Jared Blikre, Brian Sozzi, and Brooke DiPalma have more.
JARED BLIKRE: That's right. A slowdown in spending. Retail sales falling 8/10 of a percent in January from the month prior. According to Census Bureau data, economists had priced in a decline of 2/10 of a percent. The January report is closely watched by investors looking for signs of a soft landing in the US economy, where inflation cools to the Fed's 2% target rate without an extreme downturn in economic activity.
BRIAN SOZZI: All right. Cisco shares are in the penalty box today. The company saying everything an investor doesn't want to hear on earnings day. Inventory corrections, lower demand, uncertain outlook, worse than expected guidance, and layoffs. Maybe I left off something. But I'll figure it out later.
Those job cuts will result in around $800 million in severance and termination costs.
BROOKE DIPALMA: And fast food and focus this morning following earnings results from burger chains Shake Shack and Wendy's. Shake Shack shares jumping this morning and its earnings beat. Comparable sales also topping the Street's estimates.
Meanwhile, shares of Wendy's slumping in pre-market trading. The stock moving toward a three-month low after reporting a miss on revenue and profit for the quarter. And here in the US, Wendy's customers visited less, but spend more where they went.
