Eurozone M3 Money Supply Shrinks, Bank Lending Growth Weakens

Eurozone broad money supply posted its first decline in more than a decade, and bank lending grew at a slower pace in July as higher borrowing costs dampen the growth outlook, official data revealed on Monday.

The monetary aggregate M3 dropped 0.4 percent from a year ago after rising 0.6 percent in June, the European Central Bank reported. This was the first fall since May 2010, when M3 was down 0.1 percent. M3 was forecast to remain flat.

At the same time, the narrow measure M1 that comprises currency in circulation and overnight deposits plunged 9.2 percent in July, following June’s 8.0 percent decline.

Regarding the dynamics of credit, data showed that credit to euro area residents slid 0.1 percent and that to general government declined 2.9 percent.

Within borrowing sectors, loans to households registered a slower growth of 1.3 percent after a 1.7 percent gain. The rate was forecast to ease to 1.4 percent.

Likewise, growth in loans to companies slowed to 2.2 percent from 3.0 percent. Economists had forecast an annual growth of 2.5 percent.

ING economist Bert Colijn said today’s data adds to expectations of a weak eurozone economy in the quarters ahead, but as the effects remain gradual this should not be a game-changer for the European Central Bank ahead of its September meeting.

The ECB has raised its rates by a cumulative 375 basis points with hikes in every policy session of the current tightening cycle that began in July last year.

Shoe Carnival Q2 Profit Falls, Misses Estimates; Cuts FY23 View

Shoe Carnival, Inc. (SCVL), on Tuesday, reported lower earnings in the second quarter on lower revenues. The earnings result missed the analyst’s estimates. The company also cut its full-year profit and revenue guidance.

Quarterly net earnings decreased to $19.4 million or $0.71 per share from $28.9 million or $1.04 per share last year.

On average, three analysts polled by Thomson Reuters expected the company to report earnings of $0.84 per share for the quarter. Analysts’ estimates typically exclude one-time items.

Revenues fell 5.7 percent to $294.6 million from $312.26 million previous year, on soft traffic results along with lower-income households and urban markets. The comparable store sales declined 6.5 percent.

Looking forward to the full year, the company is now expecting earnings ranging from $3.10 per share to $3.25 per share compared to the previous range of $3.60 per share to $3.85 per share. The company also expects earnings to be between $85 million to $89 million.

The Street estimate for earnings is $3.12 per share.

Revenue is now expected to be $1.19 billion to $1.21 billion, down from $1.23 billion to $1.25 billion.

On Monday, shares of Shoe Carnival closed at $21.81, up 0.93% on Nasdaq.

Best Buy Co Inc. Q2 Profit Decreases, but beats estimates

Best Buy Co Inc. (BBY) released a profit for second quarter that decreased from the same period last year but beat the Street estimates.

The company’s bottom line totaled $274 million, or $1.25 per share. This compares with $306 million, or $1.35 per share, in last year’s second quarter.

Excluding items, Best Buy Co Inc. reported adjusted earnings of $1.22 per share for the period.

Analysts on average had expected the company to earn $1.06 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter fell 7.3% to $9.58 billion from $10.33 billion last year.

Best Buy Co Inc. earnings at a glance (GAAP) :

-Earnings (Q2): $274 Mln. vs. $306 Mln. last year.
-EPS (Q2): $1.25 vs. $1.35 last year.
-Analyst Estimates: $1.06
-Revenue (Q2): $9.58 Bln vs. $10.33 Bln last year.

-Guidance:
Full year EPS guidance: $6.00 – $6.40
Full year revenue guidance: $43.8 – $44.5 Bln

Oil Prices Gain On Supply Concerns

Oil prices traded higher on Tuesday, as a weaker dollar and China stimulus optimism outweighed growing concerns over fuel demand.

Prices were also supported by concerns that a tropical storm off the U.S. Gulf Coast may impact supply.

Benchmark Brent crude futures rose 0.6 percent to $84.35 a barrel, while WTI crude futures were up 0.6 percent at $80.58.

The dollar traded weak and bond yields slipped ahead of a busy week on the economic calendar.

The July report on U.S. job openings is due later in the day and the all-important jobs report for August on Friday.

Inflation data due later in the week may offer further clues on the Federal Reserve’s rate trajectory.

Focus is also on purchasing managers’ index (PMI) data from China, due on Thursday and Friday.

Meanwhile, Idalia has strengthened into a hurricane with maximum sustained winds of 75 mph and stronger gusts.

The system is expected to “rapidly intensify” and make landfall in Florida on Wednesday, likely causing some production shutdowns in the oil-producing Gulf of Mexico region.

NAPCO Security Technologies Inc. Q4 Income Advances, Beats estimates

NAPCO Security Technologies Inc. (NSSC) released a profit for its fourth quarter that increased from last year and beat the Street estimates.

The company’s bottom line came in at $10.57 million, or $0.28 per share. This compares with $7.54 million, or $0.20 per share, in last year’s fourth quarter.

Analysts on average had expected the company to earn $0.27 per share, according to figures compiled by Thomson Reuters. Analysts’ estimates typically exclude special items.

The company’s revenue for the quarter rose 3.3% to $44.66 million from $43.23 million last year.

NAPCO Security Technologies Inc. earnings at a glance (GAAP) :

-Earnings (Q4): $10.57 Mln. vs. $7.54 Mln. last year.
-EPS (Q4): $0.28 vs. $0.20 last year.
-Analyst Estimate: $0.27
-Revenue (Q4): $44.66 Mln vs. $43.23 Mln last year.