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Oil prices jump as Trump threatens to hit Iran ‘extremely hard.’ (00:16) Sleep Number (SNBR) seeks rescue financing to avoid bankruptcy — report. (01:25) Sam’s Club (WMT) raises its annual membership fees – matches BJ’s (BJ), still lower than Costco (COST). (02:09)
This is an abridged transcript.
Oil prices are up again after President Trump said the country will strike Iran “extremely hard” over the next two to three weeks.
Oil prices had been down for the last two days as hopes of a potential de-escalation rose after Trump hinted at ending the conflict soon.
As of the time of this recording, crude futures (CL1:COM) are up 7% to $107 a barrel, and Brent crude futures (CO1:COM) are up 7.3% to $108 per barrel.
In a rare prime-time address on Wednesday, Trump portrayed the Iran war as nearing success, saying U.S. forces had largely achieved their objectives, including crippling Iran’s missile capabilities and degrading its air force, navy, and industrial base. He said the campaign would weaken Tehran’s proxies and block its path to nuclear weapons.
Trump signaled a potential escalation in military action, saying the U.S. could intensify strikes over the next two to three weeks and warning Iran would be pushed “back to the stone ages.”
At the same time, he left the door open to diplomacy, saying talks are ongoing.
Sleep Number (SNBR) is down 21% in premarket action.
The company is seeking rescue financing to prevent bankruptcy.
In its annual report filed with the Securities and Exchange Commission last month, the company warned that it had “substantial doubt” it could continue as a going concern due to “high debt, weak sales, and expected financial covenant breaches.”
In its most recent quarterly results, the mattress manufacturer reported an 8% decline in fourth-quarter sales and a $32M drop in gross profit due to a $9.6M inventory obsolescence charge.
Over just the past month, shares have lost more than 71% of their value.
Sam’s Club announced on Wednesday that it will raise its annual membership fee by $10 to $60 for basic membership and $120 for its higher-tier option. The price hike will be the first from the retailer since it raised annual fees in October 2022. The new price will go into effect on May 1.
In a statement, Sam’s Club noted that it adjusted membership pricing to support the things members love, pointing to the wide assortment, expanded hours, and better curbside pickup and delivery options.
The new fee structure is still less than Costco (COST) but matches BJ’s Wholesale Club (BJ).
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Dow, S&P and Nasdaq futures are in the red. Bitcoin is down 2.4% at $66,000. Gold is down 3.5% at $4,617.
The FTSE 100 is little changed and the DAX is down 1.5%.
The biggest movers for the day premarket: Stitch Fix (SFIX) +3% – Shares rose after the company resumed share repurchases under its existing $150M program.
Economic calendar:
Editor’s Note: This article covers one or more microcap stocks. Please be aware of the risks associated with these stocks.
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