Stock Movers Costco Slips, Eli Lilly Rises, RH Tumble on Trump Tariffs
Sep 26, 2025
Costco faces a stock slip after reporting mixed quarterly results, revealing declining membership renewal rates. Eli Lilly sees a rise fueled by Trump's proposed 100% tariff on branded drug imports, enhancing its market position. Meanwhile, RH's shares tumble as new tariffs on imported kitchen and bathroom products loom, impacting the furniture retail sector. The interplay of trade policies and earnings reports creates a dynamic atmosphere in the market.
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Costco Faces Mixed Results And Valuation Pressure
- Costco reported adjusted profit above expectations but the market viewed the quarter as mixed, driving shares lower by ~4%.
- Analysts cited valuation and slowing comps and membership renewal dips as reasons investors hesitate to buy more stock.
Costco Food Court As A Loss Leader
- Nora mentions Costco food court staples like $2.50 hot dogs and pizza as examples of loss leaders.
- She says these low-priced items drive customer traffic while most other items carry higher margins.
Tariff Talk Boosts U.S. Drugmakers
- Eli Lilly stock rose after President Trump announced a plan for 100% tariffs on branded drug imports with U.S. manufacturing exemptions.
- The tariff news created a short-term tailwind for U.S. drugmakers, boosting Lilly by about 2% in trading.