Tyson Foods, Inc. (TSN) released its fourth quarter and full-year earnings on Monday, November 13. The company missed analysts’ revenue estimates, causing the food company’s stock to drop 3.6% following release of the report.

Tyson’s revenue for the fourth quarter was $13.35 billion. This was down 3% from $13.74 billion reported in the same quarter last year and below analysts’ forecasts of $13.71 billion. Full-year sales returned at $52.88 billion, a 1% decrease from $53.28 billion in fiscal 2022.

“While economic headwinds persist, we are moving in the right direction and managing what we can control,” said Tyson Foods CEO, Donnie King. “The decisions we have taken have made us more operationally efficient and aided a second quarter of sequential improvement in adjusted operating income. The strategy and leadership team we have in place will allow us to take advantage of the long-term opportunities in front of us and drive shareholder value.”

Tyson posted a net loss of $450 million or $1.31 per adjusted share. This is a decrease from year-over-year net income of $538 million or $1.50 per adjusted share. For the full year, the company reported net losses of $648 million or $1.87 per adjusted share. This was down from net income of $3.24 billion or $8.92 per adjusted share in fiscal 2022.

The Arkansas-based food company includes brands such as Jimmy Dean, Hillshire Farm and Ball Park. The company experienced a volume increase in some segments: 1.7% in Chicken, 1.0% in Prepared Foods and 4.9% in International. Operating income, however, was down 6.4% in Beef, 0.7% in Pork and 6.4% in Chicken. Lower prices for chicken and pork and weakened demand for beef pushed sales lower. The company announced the closure of six chicken facilities, which will lower costs and improve productivity. Tyson’s outlook for fiscal 2024 expects sales revenue to remain unchanged and adjusted operating income to be between $1.0 billion to $1.5 billion.

Tyson Foods, Inc. (TSN) shares closed at $48.74 up 6% for the week.

Home Depot Announces Earnings Results

The Home Depot, Inc. (HD) announced its third quarter results on Tuesday, November 14. After reporting better-than-expected earnings, the company’s shares rose 5.4% following the report’s release.

The company reported revenue of $37.71 billion, down 3% from $38.87 billion during the same quarter last year. Revenue was slightly ahead of analysts’ expectations of $37.60 billion.

"Our quarterly performance was in line with our expectations," said Home Depot CEO, Ted Decker. "We remain very excited about our strategic initiatives and are committed to investing in the business to deliver the best interconnected shopping experience, capture wallet share with the Pro, and grow our store footprint. In addition, our associates did an outstanding job delivering value and service for our customers throughout the quarter and I would like to thank them for their dedication and hard work.”

Home Depot reported quarterly net earnings of $3.81 billion. This is down over 12% from net earnings of $4.34 billion during the same quarter last year.

The Atlanta, Georgia-based home improvement retailer reported U.S. comparable store sales decreased 3.1% year-over-year, better than analysts’ expectations of a 3.6% decrease. The company also reported a 2.4% decrease in customer transactions during the quarter. Average consumer spending per ticket was $89.36, a slight decrease from $89.67 the prior year. Home Depot revised its fiscal 2023 outlook and is now expecting a 3% to 4% decline in sales and comparable sales and a 9% to 11% decline in diluted earnings per share.

The Home Depot, Inc. (HD) shares ended the week at $307.27, up 7% for the week.

TJX Releases Third Quarter Earnings

TJX Companies, Inc. (TJX) released its third quarter earnings on Wednesday, November 15. The multinational off-price apparel and home accessories retailer delivered strong revenue, but its shares fell 2.6% following the release.

The company reported third quarter net sales of $13.27 billion, up 9% from $12.17 billion reported during the same quarter last year. This exceeded analysts’ expectations of $13.09 billion.

“I am extremely pleased with our third quarter performance and strong execution of our teams as our comp store sales, pretax profit margin, and earnings per share all exceeded our expectations,” said TJX Companies CEO, Ernie Herrman. “Going forward, we continue to see excellent opportunities to grow sales and customer traffic, capture market share, and drive the profitability of our Company.”

For the third quarter, TJX reported net income of $1.19 billion or $1.03 per diluted share. This was up 12% from $1.06 billion or $0.91 per diluted share reported in the same quarter the previous year.

The Massachusetts-based parent company to T.J. Maxx, Marshalls and HomeGoods reported an increase in comparable store sales across all store segments, including an increase of 7% at Marmaxx and 9% at HomeGoods. At the end of the third quarter, TJX operated a total of 4,934 stores in nine countries and six e-commerce sites. The company returned $1.0 billion to shareholders through share repurchases and dividends in the third quarter. For fiscal year 2024, TJX expects comparable store sales to increase 4% to 5% and adjusted earnings per share to be between $3.71 to $3.74.

TJX Companies, Inc. (TJX) shares ended the week at $88.84, down 2% for the week.

The Dow started the week of 11/13 at 34,259 and closed at 34,947 on 11/17. The S&P 500 started the week at 4,407 and closed at 4514. The NASDAQ started the week at 13,746 and closed at 14,125.

Treasury yields increased early in the week as investors waited for economic data including the consumer price index. Yields dropped later in the week after reports that inflation is declining suggests the Federal Reserve may hold off on further rate increases.

On Tuesday, the U.S. Bureau of Labor Statistics announced that the consumer price index (CPI), which measures the cost of dozens of everyday consumer goods, did not change in October and was slightly below economists’ forecast of 0.1%. The CPI year-over-year fell to 3.2%, slightly lower than economists’ projections of 3.3%.

“Overall the October CPI report gives Fed officials more confidence that inflation is on a firm downward trajectory, which should stay their hand on any additional rate hikes,” said lead U.S. economist at Oxford Economics, Michael Pearce. “However, the disinflation process still has some way to go, and the path to weaker services inflation depends on a continued cooling in labor market conditions, so it will still be a long time before the Fed is able to think about lowering interest rates.”

The benchmark 10-year Treasury note yield opened the week of November 13 at 4.65% and traded as low as 4.42% on Tuesday. The 30-year Treasury bond opened the week at 4.76% and traded as low as 4.59% on Tuesday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment increased by 13,000 to 231,000 for the week ending November 11. This was above economists’ estimates of 220,000. Continuing claims increased by 32,000 to 1.87 million, the highest level since November 2021.

“There is little prospect for re-energized labor demand on the near-term horizon as interest rates are set to remain higher for longer,” said senior economist at PNC Financial in Pittsburgh, Pennsylvania, Kurt Rankin. “Fading consumer demand entering 2024 should thus place upward pressure on jobless claims going forward as those enduring layoffs and new job seekers find opportunities less readily available.”

The 10-year Treasury note yield finished the week of 11/13 at 4.44%, while the 30-year Treasury note yield finished the week at 4.59%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, November 16. The survey showed the 30-year mortgage rate moved lower for the third consecutive week.

This week, the 30-year fixed rate mortgage averaged 7.44%, down from last week’s average of 7.50%. Last year at this time, the 30-year fixed rate mortgage averaged 6.61%.

The 15-year fixed rate mortgage averaged 6.76% this week, down from last week’s 6.81%. During the same week last year, the 15-year fixed rate mortgage averaged 5.98%.

“For the third straight week, mortgage rates trended down, as new data indicates that inflationary pressures are receding,” said Freddie Mac’s Chief Economist, Sam Khater. “The combination of continued economic strength, lower inflation and lower mortgage rates should likely bring more potential homebuyers into the market.”

Based on published national averages, the savings rate was 0.46% as of 10/16. The one-year CD averaged 1.79%.

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