Good Evening! US stocks fell on Wednesday after two economic reports revealed a slowdown in the US economy in February, while new turmoil at Credit Suisse (CS) heightened investor concerns about the banking sector.
The S&P 500 fell 0.70%, while the Dow Jones dropped 0.87%. The Nasdaq Composite recovered earlier losses and finished just above the flatline by 0.05%.
EARNINGS
Adobe (ADBE) beat Wall Street’s sales and earnings targets for its fiscal first quarter and guided higher for the full year. In extended trading, ADBE stock rose by 4.61%.
- Revenue: $4.66 Billion vs. $4.62 Billion Expected
- Earnings Per Share: $3.80 vs. $3.68 Expected
How is this quarter looking? Adobe forecasts adjusted earnings per share of $3.78 on sales of $4.77 billion for the current quarter. This is based on the midpoint of its forecast. In the fiscal second quarter, analysts predicted earnings of $3.76 per share on sales of $4.75 billion.
Update: ADBE stock has fallen in recent weeks as a result of reports that the US Department of Justice intends to block Adobe’s $20 billion acquisition of Figma. Why? The Justice Department is concerned that Adobe’s acquisition of Figma will limit creative professionals’ options for design software. Adobe creates software such as Photoshop, Illustrator, Premiere, and Acrobat.
WINGS LAWSUITS
Aimen Halim of Chicago filed a class-action lawsuit against Buffalo Wild Wings, alleging that the restaurant chain misrepresented its boneless wings as chicken nuggets.
Why would it matter? According to the lawsuit, Halim mistook BWW’s boneless chicken wings for deboned wings. Halim claims that if he had known about the breast-meat truth, he would have ordered something else, and thus he has suffered “financial injury.”
Where did it all begin?? In the early 2000s, boneless wings became popular as the price of chicken breast, which is typically used to make boneless wings, fell while wings remained expensive. And wing purists have always resisted the bone-free option. Both items’ prices have fluctuated in recent years, but the debate over what, if anything, constitutes a boneless wing remains.