Caroline Woods brings the latest business headlines from the New York Stock Exchange as markets open for trading on Thursday, April 11.
Full video transcript below:
CAROLINE WOODS: I'm Caroline Woods reporting from the New York Stock Exchange. This is what we are seeing today on TheStreet.
stocks are looking to rebound after all major indices ended in the red on Wednesday. Wall Street is reacting to another inflation report. The Producer Price Index, which measures the evolution of wholesale prices, was lower than expected. Producer prices rose just 0.2 percent in March, less than Wall Street's estimate of 0.3 percent.
In other news, large retailers are about to face a challenge that could affect their bottom line. In early March, the Biden administration passed legislation that will cap credit card late payment fees at $8. That rule also applies to department stores that have their own store-branded credit card.
The new rule, which reduces the average late payment fee by about 75 percent, will go into effect on May 14. And while it will certainly benefit customers, it can take a big chunk out of the company's revenue. For its fiscal 2023 year, Macy's reported $619 million in revenue from credit card purchases. Nordstrom raised $475 million. Neither company disclosed how much it earned from late fees, but the new limit is sure to have an impact.
As retailers prepare for this change, they are also preparing for an overall decline in credit card spending. Macy's $619 million in credit card revenue was a 28 percent drop from 2022, and it expects that number to fall further during the current fiscal year.
Of those hundreds of millions of dollars spent on credit cards, most of them were not purchased with high-street cards. Both Macy's and Nordstrom reported that only about 3 percent of their net sales came from their own cards.
That will be enough for your daily report. From the New York Stock Exchange, I'm Caroline Woods of TheStreet.
