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Snippet of Motley Fool Money: Market Uncertainty, Surprising Earnings, and Thinking Bigger

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station description Motley Fool Money
Motley Fool Money
Duration: 05:53
The market reacts to news that President Trump has tested positive for COVID-19. The Labor Department reports slowing jobs growth. Bed Bath & Beyond soars on surprising earnings. Twilio hits a new high. Pepsi gets a boost from snacks. McCormick serves up strong earnings and a stock split.
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The market reacts to news that President Trump has tested positive for COVID-19. The Labor Department reports slowing jobs growth. Bed Bath & Beyond soars on surprising earnings. Twilio hits a new high. Pepsi gets a boost from snacks. McCormick serves up strong earnings and a stock split.
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number that I was looking at. The number of permanent job losses increased by 345,000 to 3.8 million. That's a seven year high. That compares to 2.5 million in February. So this is people who have been out of work for more than 27 months and looking for work. So that, combined with some of the facts and numbers that Ron mentioned earlier with some of the large cap corporate, uh, companies out there companies out there now looking to pare back some of their workforce that Disney, the airlines, all state some of the Wall Street banks now. So I think there's just this concern that why the numbers were below expectations, the economy is in this very delicate spot, and whether it's new stimulus or just more and more growth were not seen. The consumer maybe ramp up in the consumer weakness that that was a real strength of the past couple of months. That's the concern with, I think, the economy. I think you're seeing that in the stock market and this job reports. Some of that data showed that Hey, listen, the economy really still is in this spot where needs some help and despite what we've been through, the stock market is not cheap, especially the NASDAQ, where we've seen incredible runs from some of these technology companies, both the large cap and some of the midcap ones as well. And so any shock to the system, any uncertainty will create a selloff. I would imagine. I don't have in front of you that you're seeing a larger sell off in the NASDAQ today than you are in the Dow, for example, of the S and P 500. So we need to be wary about the continuing uncertainty and any shock to the system that comes will affect the market. But, you know, stick to your knitting, buy great companies. Hold them for the long term. Let's move on to some of the big stock news of the weak second quarter, profits for Bed, bath and beyond came in dramatically higher than expected. For the first time in four years, same store sales were positive shares, a bed bath and beyond, up 40% this week. Ron Mark Triton, spend the CEO for 11 months, and not only does it look like she is turning this business around, he's turning it around during a pandemic. Chris, as the A team's Hannibal Smith famously said, I love it when a plan comes together on I say that is both the shareholder and I know your shareholders well. But let's not take victory laps just yet. We've got a long way to go. Mark Triton is doing a great job executing on his what he's calling the Omni always transformation, which is, You have a number of ways to reach the consumer and sell your products. But we've got a long way to go, especially in the stores, which, let's face it, that is the big part of this turnaround or certainly a big part of it if we go through the numbers. Total comp sales up 6% as you said, first growth since the fourth quarter of fiscal 2016. The big story. Strong growth in digital channels up about 89% now. That was offset by a 12% decline in the stores themselves. And that is important to note. We can't take victory laps. We can't gloss over that. There's a lot of work to do here. Um, sales were down overall about 1% decline in the stores. As we mentioned a reason for that sale of the one Kings Lane, home to core unit, Actually which most people don't even realize happened earlier in the year they sold off a division, the gross margins were up. Operating expenses were down. It led to an adjusted E. P s earnings per share increase of 47%. So things are looking good, but we've got a long way to go. Well, and one more thing. Toe watch. Earlier in the week, before they came out with their earnings report, there was the announcement that they're partnering with insta cart and shipped to provide same day delivery. Um, it's gonna be interesting to see what that does to move the needle for them, particularly with the holidays coming up. Yeah, very important again. Executing on Trans Omni Always transformation. Interesting Shift is a wholly owned subsidiary of Target, which is which is an interesting partnership there, But the company is doing well, the restructurings in place. They're looking for an increase in the butt of 250 to $350 million as a result of the restructuring. They're paying down debt. They just reduced it by about 30%. Eso They're doing everything they need to do, making really smart moves. We're gonna keep a close eye. Shares of TWILIO up 12% on Friday after the Cloud Services company raised its forecast for the quarter. TWILIO is scheduled to release its next earnings report in early November. Andy Safe to assume that Thean Crease in remote working and remote education is helping them here. Yeah, it is Chris. So it was at their twilio signal conference and they kind of updated for investors. They had an investor day remotely and to kind of give us a more guidance. They updated that Q three guidance ahead of for the revenue to be ahead of the 401 to 406 million they talked about last quarter. So they really talked about just their continued to expand their market. They're serving more and more people. Right now, the market is somewhere about 60 billion if their market size of the services they offer, and they expect that to go to 87 billion over the next few years, they're serving more than 200,000 clients. As you mentioned Chris, the the market that they're serving now inside the cove it pandemic in the world that we live in. Um, they've done some surveys where 97% of the companies said that their digital strategy accelerated by six years, and one in three companies are now using live chat or integrated voice response systems. Um, then then we're before. So you're seeing companies really try to adapt to a virtual world. Tried to adapt to serving an omnipresent very much like what we're seeing a bed bath and beyond, um, a za world shift. This is really playing into the space of twilio their services, their messaging services there now email service that after the send grid acquisition voice video chat partnerships with WhatsApp and Facebook Messenger. So seeing a lot of growth in those areas where people are spending a lot more time in their communication. That's really benefiting twilio and it showed today, showed this week when
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