Plus, Ulta reported second quarter sales jumped more than 60%, Salesforce delivered an earnings beat, and Forbes is going public via a SPAC merger.
Stocks were mixed at the open on Thursday with the Dow adding 44 points, or 0.1%. The S&P 500 traded just below the flatline, while the Nasdaq dropped 0.1%.
Google and Microsoft both committed billions of dollars to beefing up their cybersecurity efforts at a meeting with President Joe Biden at the White House on Wednesday. Google said it would invest more than $10 billion over five years to strengthen the software supply chain and open-source security, and pledged to train 100,000 Americans in technical fields such as IT support and data analytics through its Career Certificate program. Microsoft committed $20 billion over five years to deliver more advanced security tools, and said it would invest $150 million to help government agencies upgrade their security systems and expand cybersecurity training partnerships. In addition to the investment promises from Google and Microsoft, the White House said Apple would create a program devoted to making security improvements across their technology supply chains. IBM and Amazon made commitments at the meeting as well. JPMorgan Chase CEO Jamie Dimon called the meeting “a very productive, collaborative discussion,” adding, “Hopefully we’ll continue to follow up and do a good job to protect our country from a really complex problem.”
Ulta shares popped late Wednesday after the beauty retailer reported second quarter sales jumped more than 60%. The company posted earnings per share of $4.56 on revenue of $1.97 billion, compared to expectations for earnings per share of $2.59 on revenue of $1.76 billion. “The Ulta Beauty team delivered strong results for the second quarter. This performance reflects the recovery of the beauty category, investments and choices we’ve made over the last year to adapt to the market disruption and strengthen our leadership position, and the ongoing efforts of our associates to deliver great experiences for our guests,” CEO Dave Kimbell said in the earnings release. “Our value proposition is strong, and we are evolving and innovating to lead in the new beauty landscape, capture additional market share, and drive profitable growth.”
Salesforce shares are up more than 4% this morning following its earnings beat. The enterprise software maker reported adjusted earnings per share of $1.48 on revenue of $6.34 billion, versus estimates for earnings per share of $0.92 on revenue of $6.24 billion. “With companies and governments around the world continuing to accelerate their digital transformations, we delivered our fifth phenomenal quarter in a row,” Marc Benioff, Salesforce Chair & CEO, said in a statement. “Salesforce has never seen better execution or greater momentum. Our Customer 360 platform is now fueled by a herd of unicorns perfectly designed for this all-digital world. Sales, Service, Marketing & Commerce, Platform, Tableau, MuleSoft and now Slack are all billion dollar-plus products delivering customer success like no other company.”
Forbes announced it is going public via a SPAC merger. The publication is merging with Magnum Opus Acquisition in a deal that implies an enterprise value of $630 million. Following the completion of the merger, Forbes will trade on the NYSE under the ticker FRBS. “Leveraging our iconic global brand, Forbes has been executing a data-led platform strategy and is fast becoming the gateway for businesses, entrepreneurs and consumers to join the conversations and participate in the trends that are shaping the world today,” Forbes CEO Mike Federle said in a statement. “With this transition into a publicly traded company, Forbes will have the capital to accelerate growth by executing its differentiated content and platform strategy and fully realize the potential of our iconic brand.”
And weekly jobless claims held around pandemic-era lows as the jobs market continues to show signs of improvement. The Labor Department reported initial claims of 353,000 for last week, marking a slight increase from the previous week’s reading of 349,000. Continuing claims dropped just 3,000 from the previous week to 2.86 million. Kansas City Fed President Esther George said after the release of the jobs report and Fed tapering is “appropriate given the progress we’ve seen.” “When you look at the job gains we saw last month, the month before, you look at the level of inflation right now, I think it would suggest that the level of accommodation we’re providing right now is probably not needed in this scenario,” George said. “So I would be ready to talk about taper sooner rather than later.”
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Charles & Colvard (NASDAQ: CTHR): Charles & Colvard shares are up more than 3% this morning after the jewelry company reported net sales growth of 34% year-over-year to $39.2 million in its fiscal fourth quarter. “Over the past fiscal year, we transitioned the direction of the business in all functional areas, which enabled us to deliver these key financial highlights,” Don O’Connell, President and CEO of Charles & Colvard, said in the earnings release. “The estimated increase in net sales for fiscal year 2021 is primarily attributed to the continued rise in finished jewelry net sales, which were the highest in Company history. We are excited to be able to share these highlights ahead of the upcoming JCK show, the jewelry industry’s leading annual trade event hosted in Las Vegas, August 27-30. We look forward to sharing our complete fourth quarter and fiscal 2021 financial results in our earnings call next week.”