Markets wavered on Friday after news was released that U.S. wholesale inventories increased in August. The Commerce Department said that wholesale companies were restocking their shelves at the fastest pace since April, with a rise of 0.7% and a 0.3% increase in July. The large gain was partially attributed to a rise in computers, lumber and furniture. Despite the seemingly good news, there was a large drop in wholesale sales. Sales were down 0.7%, which was the largest decline since January. There was a decline in sales of computers, lumber and wholesale auto sales.
Shares of Amazon.com (AMZN) were trading slightly lower after the company reported that they have plans to open their first ever-physical store. This will mark as a first in the company’s 20-year history and is expected to open in time for the holiday shopping season. The location is expected to be on the same busy street in New York City as Macy’s, 34th street. The store will serve as a place for customers to pick up orders, but also be a distribution center for couriers. Matt Nemer, an analyst with Wells Fargo, said, that opening a physical location is “About marketing the Amazon brand. Same-day delivery, ordering online and pickup up in store are ideas that are really catching on. Amazon needs to be at the center of that.”
Costco Wholesale Corporation (COST) was trading higher after the company announced their fiscal fourth-quarter results. Earnings came in at $1.58 per share, which was up 13% over the $1.40 from this time last year. Sales were up 9% over last year. Revenue came in at $34.75 billion. The company opened 30 new locations during the fiscal 2014-year. There was a total of 663 total stores operating in fiscal 2014. In the next year the wholesale retailer plans on opening 31 new locations.
That’s all for today,
Warren Gates, Normandy Research