Gold Prices Mixed As Investors Look To US Jobs Data

Gold prices traded mixed on Thursday as the dollar and yields gained ground ahead of key U.S. jobs data due on Friday.

Spot gold was marginally lower at $1,715.79 per ounce, while U.S. gold futures were up 0.2 percent at $1,724.

The dollar index rose against its rivals and U.S. Treasury yields ticked higher as strong U.S. ISM services PMI data and ADP private sector jobs report released overnight coupled with hawkish comments from San Francisco Federal Reserve President Mary Daly cooled any hopes of a policy pivot.

It is likely that U.S. non-farm payrolls data due on Friday could offer more clues on the Fed’s rate hike trajectory in the future.

Euro zone bond yields rose today but stayed well below multi-year highs as disappointing German factory orders and Eurozone retail sales data added to worries about an economic slowdown.

The European Central Bank publishes the account of the monetary policy meeting of the Governing Council held on September 7-8 at 7:30 am ET.

U.S. weekly jobless claims for the week ended October 1 and Canada Ivey PMI for September are set for release in the New York session.

Conagra Brands Reaffirms FY23 Outlook – Update

While reporting financial results for the first quarter on Thursday, branded food company Conagra Brands, Inc. (CAG) reaffirmed its adjusted earnings and organic net sales growth guidance for the full-year 2023.

For fiscal 2023, the company continues to project adjusted earnings growth of 1 to 5 percent, implying it in a range of $2.38 to $2.40 per share based on adjusted earnings of $2.49 per share reported for 2022. Organic net sales growth is also still expected to be 4 to 5 percent.

On average, analysts polled by Thomson Reuters expect the company to report earnings of $2.42 per share on revenue growth of 4.6 percent to $12.06 billion for the year. Analysts’ estimates typically exclude special items.

For the second quarter of fiscal 2023, the Company has planned for continued supply chain inefficiency tied to the dynamic operating environment and some incremental volume weakness tied to the new inflation-driven pricing that went into effect early in the quarter.

Despite a strong early performance from its joint venture, Ardent Mills, the Company is not planning for elevated performance to continue throughout the remainder of the fiscal year due to the volatile nature of the business.

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Brown-Forman To Buy Diplomtico Rum Brand From Destillers United; Terms Not Disclosed

Beverage company Brown-Forman Corp. (BFA,BFB) announced Thursday that it has reached an agreement to purchase the Diplomtico Rum brand and related assets from Destillers United Group S.L. in Spain. The financial terms of the deal were not disclosed.

The transaction, which is subject to customary closing conditions, is expected to close within 90 days.

Upon completion of the deal, Brown-Forman will add the Diplomtico Rum family of brands, a super-premium rum from Venezuela, to its portfolio and acquire a production facility located in Panama.

Diplomtico Rum family of brands include super- and ultra-premium rum and super-premium+ rum. The company noted that super-premium+ rum has grown at an annual rate of 17% over the past five years, with rum accounting for around 8% of global spirits. Diplomtico Rum is sold in more than 100 countries.

Destillers United Group S.L. will continue to produce and age the unique, carefully-crafted, and complex Diplomtico Rum in their original distillery at the foot of the Andes mountains.

Diplomtico Rum consists of three ranges of complex rums, such as the Traditional Range, t he Prestige Range and the Distillery Collection.

Constellation Brands Inc Q2 Earnings Summary

Below are the earnings highlights for Constellation Brands Inc (STZ):

Earnings: -$1.15 billion in Q2 vs. $1.5 million in the same period last year.
EPS: -$6.30 in Q2 vs. $0.01 in the same period last year.
Excluding items, Constellation Brands Inc reported adjusted earnings of $588.7 million or $3.17 per share for the period.

Analysts projected $2.81 per share
Revenue: $2.86 billion in Q2 vs. $2.57 billion in the same period last year.

-Guidance:
Full year EPS guidance: $11.20 – $11.60

Constellation Brands To Sell Portion Of Mainstream, Premium Wine Portfolio

Constellation Brands, Inc. (STZ, STZ.B), a beverage alcohol firm, said on Thursday that it has inked a deal with The Wine Group to sell a portion of its mainstream and premium wine portfolio. This includes Cooper & Thief, Crafters Union, The Dreaming Tree, Monkey Bay, 7 Moons, and Charles Smith Wines.

The financial terms of the deal, expected to be closed on October 6, were not disclosed.

The company said the move is part of its “efforts to establish a bold and innovative, higher-end wine and spirits portfolio with distinctive brands and products, delivering exceptional consumer experiences.”

Robert Hanson, EVP, President, Wine and Spirits Division, said: “This transaction will enable us to focus and shift our portfolio towards the higher end, positioning ourselves to continue delivering industry-leading growth and shareholder value with the right portfolio for our ambitions. In turn, The Wine Group is acquiring great brands that complement its current strategy of continuing to build a premium wine portfolio.”

Conagra Brands Inc. Q1 Earnings Summary

Below are the earnings highlights for Conagra Brands Inc. (CAG):

Earnings: -$77.5 million in Q1 vs. $235.4 million in the same period last year.
EPS: -$0.16 in Q1 vs. $0.49 in the same period last year.
Excluding items, Conagra Brands Inc. reported adjusted earnings of $274.8 million or $0.57 per share for the period.

Analysts projected $0.52 per share
Revenue: $2.90 billion in Q1 vs. $2.65 billion in the same period last year.