August retail sales rebound 1.2% after July decline
U.S. rail intermodal traffic climbed to nearly 297,000 containers and trailers per week in August, a new monthly high, the Association of American Railroads reported.
J.B. Hunt Transport Services expects its profit to fall by 5% to 10% in the current quarter as higher costs and fuel prices weigh on its bottom line, the Wall Street Journal’s Connor Hart reported.
Speaking at Morgan Stanley’s Laguna Industrials Conference, the company’s chief financial officer, Brad Delco, said the increased costs stem from strong demand, particularly for intermodal services, which has prompted the company to ramp up hiring, implement sign-on bonuses and institute raises. Costs tied to recruitment, advertising, onboarding and training are expected to be roughly $25 million higher in the third quarter than they were in the second quarter, Delco said.
At the same time, surging fuel prices — with diesel hitting all-time highs — are also pressuring earnings, Delco said. “Driver costs are going up, fuel prices are high, and it’s really tough to find capacity,” Delco said. Looking further ahead, Delco said the near-term earnings hit will set J.B. Hunt up for longer-term growth.
U.S. retail sales rebounded in August from a July decrease, the Journal’s Jessica Coacci reported. Retailers’ sales rose 1.2% last month to $773.9 billion, compared with a 0.5% decrease in July, according to the Commerce Department. The retail sales figures are recorded in nominal terms and reflect the total number of dollars spent; Americans were still paying high prices for gasoline in August.
Outside gasoline stations, sales showed some consumer strength: the so-called control-group categories that feed into the gross-domestic-product formula rose about 1.4%, nonstore retailers’ sales rose 2.6%, and electronics and appliance stores rose 1.6%.