So investors were a little nervous about those mixed earnings results with Starbucks shares up and Visa shares down. The stock market experienced ups and downs in uncertainty ahead of the first quarterly reports from many of the country’s largest companies. Traders dialed in on the most recent inflation data, nudging the S&P 500 down 0.3%. At the same time, the Dow declined roughly 0.5%, and the Nasdaq Composite fell by close to 0.4%.
Starbucks had an fiscal third quarter revenue of $9.46 billion, above LSEG consensus of $9.31 billion. So the good news wasn’t all good for the coffee giant. Same-store sales fell for the sixth straight quarter, underscoring its continued challenges in a rapidly evolving competitive landscape. Per Cowan’s note, investors reacted positively to the revenue beat, with Starbucks’ shares climbing by 3% in extended trading following the announcement.
In related news, contrary to these numbers, Visa shares slipped 3% on the day amid a quarterly earnings report that beat Wall Street on all counts. The B2B payment processing company’s strong performance underscores the opportunity and obstacles of today’s economic climate. Even robust results are capable of sparking market turbulence.
Etsy at this point is preparing to announce its quarterly results. The announcement comes right before the market opens on Wednesday, as investors gear up for a new wave of earnings reports. In addition, Meta Platforms, Microsoft, Ford, and Robinhood will all provide their quarterly results after the market closes, generating anticipation among investors and analysts alike.
On the crypto side, investor sentiments point to larger trends in the market. They are playing it safe and waiting to see what the Federal Reserve does with interest rates. Jerry Tempelman commented on the situation, stating that “despite increased political scrutiny, Fed Chair Jerome Powell continues to signal patience around any interest rate decision.”
The stock market’s very mixed performances highlight just the confusion that investors are facing. They still have to figure their way through earnings season and general economic malaise. As some consumer companies, such as Starbucks, demonstrate stubbornness in the revenue growth deflection, others like Visa post misses on growing declines.