TheStreet’s J.D. Durkin brings the latest business headlines from the floor of the New York Stock Exchange as markets open for trading Wednesday, March 13.
Full Video Transcript Below:
J.D. DURKIN: I’m J.D. Durkin - reporting from the New York Stock Exchange. Here’s what we’re watching on TheStreet today.
Stocks are coming off a solid session on Wall Street fueled by continued optimism that the Fed will cut interest rates within a couple of months. This comes after an inflation report in line with analyst expectations. Currently, markets are pricing in a 58 percent chance that the Fed will slash rates in June. Investors are looking ahead to the Producer Price Index out Thursday for a better picture of the state of inflation in the U.S.
In other news, struggling discount retailer Family Dollar has announced it will be closing about 1,000 stores. The company said it will close 600 locations in the first half of 2024, with another 370 shutting their doors over the next few years as leases expire. Dollar Tree, which bought Family Dollar for $8.5 billion in 2015, said it will also be closing 30 stores.
The combined company hoped it would be able to take on bigger retailers like Walmart. But instead, it has struggled, especially in recent years with retail in general feeling the pain of persistent inflation and a shrinking middle class.
In its recent earnings report, Dollar Tree had a net loss of $1.7 billion, largely due to how much consumers are spending. Despite a 3 percent increase in same-store sales, the average amount customers spent dropped by 1.5 percent.
Dollar Tree operates roughly 16 thousand stores in the U.S. and Canada, and employs more than 200 thousand people.
That’ll do it for your daily briefing. From the New York Stock Exchange, I’m J.D. Durkin with TheStreet.
