Tyson Foods, Inc. (TSN) released its quarterly earnings report on Monday, August 5. The company beat analysts’ estimates, causing the food company’s stock to rise 2% following the release of the report.

Tyson posted revenue of $13.35 billion for the quarter. This is up 1% from $13.14 billion reported in the same quarter last year and more than the $13.21 billion in revenue that analysts expected.

“In Q3, we delivered the highest adjusted operating income in the last seven quarters while also generating strong free cash flow,” said Tyson Foods CEO, Donnie King. “Looking ahead, we will continue to strive to be best-in-class operators, drive efficiencies, value-up our portfolio, win with customers and consumers, and be disciplined in our capital deployment.”

For the third quarter, the company posted net income of $196 million or $0.54 per adjusted share. This is an increase from a net loss of $435 million or $1.18 per adjusted share this time last year.

The Arkansas-based food company includes brands such as Jimmy Dean, Hillshire Farm and Ball Park. The company experienced a sales volume increase in some segments: 4.4% in Beef, 1.2% in Pork and 2.0% in Prepared Foods. The company, however, had a slight decline of 0.4% in sales of Chicken. Operating income was up 6.0% in Chicken while decreasing 1.3% in Beef and 4.2% in Pork. For fiscal 2024, Tyson expects the total company adjusted operating income to be between $1.6 billion to $1.8 billion and revenue to stay relatively flat compared to fiscal 2023.

Tyson Foods, Inc. (TSN) shares ended the week at $61.69, down 1% for the week.

Jack in the Box Reports Quarterly Earnings

Jack in the Box Inc. (JACK) reported its third quarter earnings on Tuesday, August 6. The company reported decreased revenue and earnings for the quarter, causing shares to decrease by more than 4% following the release of the report.

The company reported revenue of $369.2 million for the quarter, missing analysts’ expected revenue of $371.8 million. Quarterly revenue was down from $396.9 million reported at the same time last year.

"I am proud of our teams and how they continue to enhance the guest experience and deliver operational improvements during a challenging sales environment for our entire industry," said Jack in the Box CEO, Darin Harris. "We will strive to finish the year strong with positive momentum heading into 2025, while continuing to execute against our strategic initiatives to achieve our long-term growth and profitability ambitions.”

The company reported a net loss of $122.3 million for the quarter or $6.26 per adjusted share. This is down from net income of $29.2 million or $1.41 per adjusted share during the same quarter last year.

Jack in the Box reported that same-store sales decreased 2.2% during the quarter, while Del Taco same-store sales fell 3.9%. The decline in sales was partially offset by an increase in the average check. During the third quarter, the company entered into franchise development agreements to open 28 new restaurants.

During the quarter, Jack in the Box opened three new restaurants and closed three, while Del Taco opened five new restaurants and closed three. The company’s Board of Directors declared a cash dividend of $0.44 per share payable on September 19, 2024, to shareholders of record as of August 30, 2024.

Jack in the Box Inc. (JACK) shares ended the week at $53.53, up 2% for the week.

Airbnb Releases Earnings Report

Airbnb, Inc. (ABNB) released its second quarter earnings report on Tuesday, August 6. The company reported lower-than-expected earnings which caused shares to fall 14% following the earnings release.

The company’s revenue for the second quarter was $2.75 billion. This was up 11% from $2.22 billion during the same quarter last year, just above analysts’ forecast of $2.74 billion.

“Q2 marked another strong quarter for Airbnb,” said Airbnb’s CEO, Brian Chesky in a shareholder’s call. “In Q2, we surpassed 8 million active listings, driven by continued growth across all regions and market types. Now, turning to Q3, we are looking forward to another record summer travel season. We have been encouraged by the excitement around the Olympics and EuroCup, and we are also encouraged by the relative strength of Latin America and Asia-Pacific, which continue to be our fastest-growing regions.”

Airbnb reported net income of $555 million during the quarter or $0.86 per adjusted share. This was down 15% from net income of $650 million or $0.98 per adjusted share reported last year.

The San Francisco-based company serves as an online platform for vacation rentals and lodging. Airbnb’s Nights and Experiences Booked category reached 125.1 million bookings during the quarter, a 9% increase from the same quarter last year. Airbnb’s gross bookings value was $21.2 billion, up 11% from last year at this time. As a part of their updated quality system, the company has removed over 200,000 listings that failed to meet guests’ expectations but still surpassed 8 million active listings in the second quarter. For the third quarter of 2024, the company expects revenue of $3.67 billion to $3.73 billion.

Airbnb, Inc. (ABNB) shares ended the week at $123.77, down 7% for the week.

The Dow started the week of 8/5 at 39,056 and closed at 39,498 on 8/9. The S&P 500 started the week at 5,151 and ended at 5,344. The NASDAQ started the week at 15,713 and finished at 16,745.

U.S. Treasury yields climbed this week as the markets responded to the latest economic data on the services sector. Yields continued to rise towards the end of the week as investors responded to lower than expected weekly jobless claims.

On Monday, the Institute for Supply Management (ISM) released its Services purchasing managers’ index (PMI) for July indicating growth in the service industry. The PMI measures the change in economic activity in the services sector and is used as an indicator of U.S. economic activity. The PMI for July was 51.4%, up from a PMI of 48.8% in June and above economists’ estimates of 51.0%.

“Clearly, the ISM Non-Manufacturing PMI composite gauge is not exactly robust, averaging just below 51 over the past four months, a level that historically has correlated to real GDP growth of less than 1%," said Santander economist, Stephen Stanley.

The benchmark 10-year Treasury note yield opened the week of August 5 at 3.79% and traded as high as 4.02% on Thursday. The 30-year Treasury bond opened the week at 4.11% and traded as high as 4.32% on Thursday.

On Thursday, the U.S. Department of Labor reported that initial claims for unemployment decreased by 17,000 to 233,000 for the week ending August 3. Continuing unemployment claims increased by 6,000 to 1.88 million.

“You do not want to overreact to one data point,” said Deutsche Bank senior US economist, Brett Ryan. “So without question, the risks have risen, leaning toward the Fed starting off with a more aggressive pace of rate cuts, but we are not there yet.”

The 10-year Treasury note yield finished the week of 8/5 at 3.95%, while the 30-year Treasury note yield finished the week at 4.23%.

Freddie Mac released its latest Primary Mortgage Market Survey on Thursday, August 8. The survey showed mortgage rates falling to the lowest levels in over a year.

This week, the 30-year fixed rate mortgage averaged 6.47%, down from last week’s average of 6.73%. Last year at this time, the 30-year fixed rate mortgage averaged 6.96%.

The 15-year fixed rate mortgage averaged 5.63% this week, down from 5.99% last week. During the same week last year, the 15-year fixed rate mortgage averaged 6.34%.

“Mortgage rates plunged this week to their lowest level in over a year following the likely overreaction to a less than favorable employment report and financial market turbulence for an economy that remains on solid footing,” said Freddie Mac’s Chief Economist, Sam Khater. “The decline in mortgage rates does increase prospective homebuyers’ purchasing power and should begin to pique their interest in making a move. Additionally, this drop in rates is already providing some existing homeowners the opportunity to refinance, with the refinance share of market mortgage applications reaching nearly 42%, the highest since March 2022.”

Based on published national averages, the savings rate was 0.45% as of 7/15. The one-year CD averaged 1.85%.

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