Good Evening! On Tuesday, U.S. stocks declined due to investors analyzing new economic data and still keeping track of development on the debt-ceiling limit.
The equity market performance fell into the red, with the S&P 500 decreasing by 0.64% and the Dow Jones dropping by 1.01%. The Nasdaq Composite experienced a 0.18% decline.
ON SECOND THOUGHT, IT CAN WAIT
As consumer spending on home remodeling slows down compared to the previous boom, companies like Home Depot (HD) started to show it. Home Depot released Q1 earnings and missed revenue estimates.
- Revenue: $37.3 Billion vs. $38.34 Billion expected
- Same-Store Sales: Down 4.5% vs. Down 1.42% expected
- Earnings Per Share: $3.82 vs. $3.80 expected
Some Insight. Ted Decker, the CEO, and President, attributed the decline in sales to several significant factors. The sales were lower than anticipated due to lumber deflation and adverse weather conditions, particularly in the Western division. The unfavorable weather in California had a disproportionate impact on the company’s results as well.
Where is HD now? Home Depot’s stock has underperformed the S&P 500, which is up almost 8% for the year, falling nearly 9% behind its performance. However, when compared to March 2020, share prices have increased by more than 30% after maintaining the gains earned throughout the Covid-19 pandemic.
FOR TACO TUESDAY!
Taco Bell is currently attempting to release the term “Taco Tuesday” from its intellectual property confinement. Yesterday, the fast-food chain submitted a petition to cancel the trademark of a phrase that is currently owned by a smaller taco chain, Taco John’s.
A brief overview of the historical background… Taco John’s, the creator of the Potato Olés (basically tater tots), has held the trademark for Taco Tuesday since 1989. The company has been known to take legal action by sending cease-and-desist letters to individuals or entities who attempt to use the trademark to promote tacos on Tuesdays.
In the state of New Jersey, the trademark has been owned by a restaurant and bar named Gregory’s since 1979 (trademark law is complicated). Not only that, Taco Bell has also filed a request to cancel Gregory’s trademark for Baja Blast.
Is it possible for Taco Bell to emerge as the winner in this petition? During the year 2019, LeBron James made an attempt to acquire a trademark for the phrase “Taco Tuesday”. However, the US Patent and Trademark Office denied his application, citing the phrase’s widespread usage and indicating that it would not be appropriate for any entity to hold a trademark for it. Taco Bell may be anticipating a favorable outcome based on this precedent.