U.S. equities are sliding as investors sift through the November labor report that showed stronger-than-expected job growth. The report may be tempering market expectations for a less aggressive Fed in the near-term, as hopes for such ratcheted higher earlier in the week after Fed Chair Powell suggested the Central Bank could slow the pace of its tightening campaign as early as this month. Treasury yields turned to the upside following the data, and the U.S. dollar is gaining ground, while crude oil prices are slightly higher in choppy trading, and gold is pulling back from yesterday's solid rise. Earnings reports continue to trickle in, with Marvell Technology falling short of expectations on both the top and bottom lines and slashing its guidance, while Ulta Beauty trounced the Street's forecasts amid soaring same-store sales growth. Asia finished with broad losses, and Europe is mixed, with the global markets searching for clarity on China's latest moves with regards to its COVID restrictions.
At 10:50 a.m. ET, the Dow Jones Industrial Average is down 0.5%, the S&P 500 Index is decreasing 0.8%, and the Nasdaq Composite is falling 1.0%. WTI crude oil is rising $0.55 to $81.77 per barrel, and Brent crude oil is increasing $0.04 at $86.92 per barrel. The gold spot price is trading $19.60 lower to $1,795.60 per ounce, and the Dollar Index is advancing 0.6% to 105.31.
Marvell Technology Inc. (MRVL $43) reported adjusted Q3 earnings-per-share (EPS) of $0.57, below the $0.59 FactSet estimate, as revenues rose 26.9% year-over-year (y/y) to $1.54 billion, just short of the Street's forecast of $1.55 billion. The maker of semiconductors and related technology said reduction in inventories, particularly at its storage customers, impacted its near-term results, and will affect its outlook. As such, MRVL adjusted Q4 EPS lower to a range of $0.41 to $0.51, and revenues to be $1.40 billion, plus or minus 5%, with the Street forecasting $0.62 and $1.61 billion, respectively. However, President and CEO Matt Murphy said, "Our design win pipeline remains strong, our new cloud-optimized products are starting to ramp, and we are well positioned to navigate the current environment successfully and remain confident in our long-term growth drivers." Shares of MRVL are falling.
Ulta Beauty Inc. (ULTA $469) posted adjusted Q3 earnings of $5.34 per share, well above the expected $4.15, as revenues rose 17.2% y/y to $2.34 billion, beating expectations for $2.22 billion. Same-store sales rose 14.6% y/y, propelled by a 10.7% rise in transactions and a 3.5% increase in average ticket. ULTA said even as consumers weigh their purchasing decisions amid the current inflationary environment, they are still choosing to spend on beauty, with spending increasing across all income levels. ULTA said it now sees full-year earnings within a range of $22.60 and $22.90 per share and revenue for the period of between $9.95 billion and $10 billion, compared to analysts' forecasts of $21.40 per share and $9.77 billion. ULTA is trading lower.