DICK'S Sporting Goods Misses Q2 Earnings
DICK'S Sporting Goods reported a second consecutive quarterly earnings miss, sending its shares down 18%. Pre-market futures show modest gains across major U.S. indices, while the S&P Case-Shiller index indicates continued real-term declines in home prices. The market awaits the Consumer Confidence report and upcoming earnings from Zoom, Box, Intuit and NVIDIA.
Pre-market futures are up this morning, reflecting a mixed trading day on Monday. The Dow rose 256 points, the S&P 500 gained 31, the Nasdaq added 240 and the small-cap Russell 2000 increased 17. These gains are mirrored in the bond market, where the 10-year yield slipped to 4.658% and the 2-year fell to 4.210%.
Market Snapshot
| Index | Points | Change |
|---|---|---|
| Dow | 256 | + |
| S&P 500 | 31 | + |
| Nasdaq | 240 | + |
| Russell 2000 | 17 | + |
| Yield | 10-Year | 2-Year |
|---|---|---|
| 10-Year | 4.658% | |
| 2-Year | 4.210% |
DICK'S Sporting Goods Falls 18%
DICK'S Sporting Goods (DKS) posted its second straight quarterly earnings miss. Earnings of $3.53 per share were below the Zacks consensus of $3.78 by 6.6%. Revenue of $5.59 billion fell short of the $5.64 billion analysts expected. The company cited weak consumer spending on footwear, a weakness traced to its acquisition of Foot Locker nearly a year ago. Shares are down 18% on the day and have slipped 9% year-to-date. For a detailed view of DICK'S financials, see the company's stats.
| Metric | DKS | Consensus |
|---|---|---|
| EPS | $3.53 | $3.78 |
| Revenue | $5.59 bn | $5.64 bn |
| YTD Share % | -9% | - |
Case-Shiller Home Prices Rise 1.5% MoM
The S&P Cotality Case-Shiller Home Price Index for June increased 30 basis points to +1.5% month-over-month. However, for the 13th consecutive month, home prices fell in real terms across the 20-city survey. Chicago led the gains with +6.9%, followed by New York City at +4.8%. Denver, Las Vegas and Seattle recorded declines of -1.2%, -1.9% and -2.0% respectively.
| City | Change |
|---|---|
| Chicago | +6.9% |
| New York City | +4.8% |
| Denver | -1.2% |
| Las Vegas | -1.9% |
| Seattle | -2.0% |
New Home Sales and Consumer Confidence Outlook
New Home Sales for July are expected to tick down to 615,000 seasonally adjusted units from the 628,000 reported a month ago, remaining well below the 12-month high of 757,000 seen in November last year. The Conference Board Consumer Confidence report for August is projected to fall from 90.8 to 90.2, a level still below the decade-long average of over 100.
Earnings to Watch After Close
Three Zacks Rank #3 (Hold) stocks are slated for earnings releases after the market close: Zoom Communications (ZM), Box, Inc. (BOX) and Intuit (INTU). Intuit is expected to report earnings growth of +30.55%, while Zoom is projected to see a decline of -1.96%. NVIDIA (NVDA) is up 1.5% at this hour and is poised to break a 7-day losing streak ahead of its Q2 earnings report. The Zacks Rank #2 (Buy) chip giant anticipates 90%+ growth in both earnings and revenues for the quarter.
| Company | Expected Earnings Growth |
|---|---|
| Intuit | +30.55% |
| Zoom | -1.96% |
| NVIDIA | 90%+ |
Quantum Computing: A New Frontier
Quantum computing is emerging as the next technological revolution, with major hyperscalers such as Microsoft, Google, Amazon, Oracle, Meta and Tesla racing to integrate it into their infrastructure. Senior Stock Strategist Kevin Cook has highlighted seven stocks poised to dominate this space in his report Beyond AI: The Quantum Leap in Computing Power. The report lists NVIDIA, Intuit, DICK'S Sporting Goods, Box, and Zoom among the top picks. For a deeper dive into the market’s quantum prospects, see the latest fixtures.
