- Scott Peters
- 29 Sep, 2023
- New York City
Nike Inc jumped 7.9% to $96.70 after the athletic footwear retailer reported mixed quarterly results and guided sales to rise in mid-single digit in the current fiscal year.
Revenue in the fiscal first quarter ending in August increased 2% to $12.9 billion from $12.7 billion and net income edged down 1% to $1.45 billion from $1.47 billion from a year ago.
Diluted earnings per share edged up 1% to 94 cents from 93 cents a year ago.
The company declared a dividend of 34 cents per share compared to 30.5 cents a year ago.
In the fiscal first quarter, Nike returned shareholders $1.7 billion, including $524 million in dividends and stock repurchase of 10.5 million or $1.1 billion as a part of the company's $18 billion buyback plan.
At the end of August, the company has repurchased a total of $5.9 billion of its own stock.
Blue Apron Holdings Inc soared 133% to $12.82 after the meal kit company agreed to be acquired by Wonder Group for $13 a share.
At the end of regular trading hours, Blue Apron stock closed at $5.49 valuing the company at $50 million.
Vail Resorts, Inc decreased 3.9% to $233.31 after the ski resorts operator said revenue in the fiscal fourth quarter ending in July increased to $269.8 million from $267.1 million a year ago.
Net loss in the quarter expanded to $128.5 million from $108.7 million and diluted loss per share deepened to $3.35 from $2.70 a year ago.
The company forecasted net fiscal year 2024 net income between $316 million and $394 million and the company declared a quarterly cash dividend of $2.06 per share payable on October 26 to shareholders on record October 10.
- Barry Adams
- 29 Sep, 2023
- New York City
Market indexes advanced on the final trading day of the week, month and quarter after the latest report on inflation showed slight improvement.
Benchmark indexes rebounded in Friday's trading after core personal consumption expenditures price index, an alternative and diluted measure of inflation, increased 0.1% in August from the previous month and rose 3.9% from a year ago.
The data released by the Bureau of Economic Analysis showed monthly core PCE prices, which excludes food and energy prices, rose at the slowest pace since November 2020 and annual core prices eased to the level last seen in May 2021.
Overall PCE price index increased 0.4% from the previous month and jumped 3.5% from a year ago
Despite the market rebound in Friday's trading, market indexes are set to close down for the week, month and the quarter.
The S&P 500 index is set to close down 0.4% in the week, fall 4% in September, and ease 2.2% in the third quarter and trim annual gain to 12.0%.
The Nasdaq index set to advance 0.5% in the week, fall 4.4% in the month, decline 2.6% in the third quarter and trim annual gain to 26.5%.
Investors remained cautious as the U.S. House controlled by Republicans struggled to unite and pass a short term spending plan for the upcoming fiscal year starting October 1.
U.S. Indexes & Yields
The S&P 500 index is set to close down the month by 4% and the Nasdaq index by 5% and both indexes are down 3% in the third quarter.
The S&P 500 index increased 0.6% to 4,326.15 and the Nasdaq Composite rose 1.1% to 13,353.24.
The yield on 2-year Treasury notes increased to 5.03%, 10-year Treasury notes inched lower to 4.52% and 30-year Treasury bonds edged down to 4.67%.
Crude oil increased $0.33 to $92.04 a barrel and natural gas prices decreased 5 cents to $2.89 a thermal unit.
The dollar index edged higher to 105.88, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
Nike Inc jumped 7.9% to $96.70 after the athletic shoes and sportswear maker reported mixed quarterly results and guided sales to rise in mid-single digit in the current fiscal year.
Blue Apron Holdings Inc soared 133% to $12.82 after the meal kit company agreed to be acquired by Wonder Group for $13 a share.
At the end of regular trading hours, Blue Apron stock closed at $5.49 valuing the company at $50 million.
Vail Resorts, Inc decreased 3.9% to $233.31 after the ski resorts operator said revenue in the fiscal fourth quarter ending in July increased to $269.8 million from $267.1 million a year ago.
Net loss in the quarter expanded to $128.5 million from $108.7 million and diluted loss per share deepened to $3.35 from $2.70 a year ago.
The company forecasted net fiscal year 2024 net income between $316 million and $394 million and the company declared a quarterly cash dividend of $2.06 per share payable on October 26 to shareholders on record October 10.
- Bridgette Randall
- 29 Sep, 2023
- Frankfurt
European markets rebounded after several inflation reports in the currency union showed easing inflation pressures.
Benchmark indexes have been under pressure for several weeks on the worries of elevated inflation and higher interest rates.
But the latest report on inflation in the currency union showed that the cooling inflation trend is still in place after inflation peaked above 10% in October 2022.
Consumer price inflation has been falling every month since October except April 2023 largely because of higher prices in the previous month and weakening energy prices.
However, the inflation backdrop is changing and crude oil and natural gas prices have started to rebound from September which could pause the current declining trend.
On Thursday, Spain's statistical agency said inflation accelerated for the third month in a row to 3.5% in September and Germany's statistical agency said inflation eased to 4.5% from 6.1% in the previous month.
Euro Area Inflation Slowed In September
The Euro Area consumer price inflation eased to 4.3% in September from a year ago, Eurostat reported Friday.
Consumer price inflation dropped to the slowest pace since October 2021, according to the preliminary estimate released by the statistical agency.
The Service sector inflation slowed to 4.7% from 5.5% in August and food, alcohol and tobacco prices rose at a slower pace of 8.8% from 9.7% in the previous month.
The fall in energy prices accelerated to 4.4% from 3.3% in the previous month.
Core rate of inflation, which excludes food and energy prices, slowed to 4.5% from 5.3% in the previous month.
UK Economic Growth Revised Higher
U.K.'s economy grew at a faster than previously estimated rate in the first quarter of 2023, the Office for National Statistics reported Friday.
First quarter GDP growth was revised higher to 0.3% from 0.1% and second quarter growth was left unrevised at 0.2%.
For 2022, GDP growth rate was revised higher to 4.3% from the previous estimate of 4.1%.
The higher economic growth estimate suggested that the British economy is 1.8% larger at the end of June 2023 compared to the last quarter of 2019, the last full quarter before the onset of Covid-19 pandemic.
Europe Indexes & Yields
The DAX index increased 1.03% to 15,480.90, the CAC-40 index advanced 1.1% to 7,193.09 and the FTSE 100 index added 0.9% to 7,666.67.
The yield on 10-year German bonds increased to 2.85%, French bonds traded higher to 3.14%, the UK gilts edged up to 4.45% and Italian bonds rose to 4.77%.
The euro edged lower to a three-month low to $1.06, the British pound to $1.22 and the U.S. dollar fetched 91.13 Swiss cents.
Brent crude increased $0.82 to $93.92 a barrel and the Dutch TTF natural gas edged higher by €2.61 to €42.35 per MWh.
Europe Stock Movers
Commerzbank AG soared 11.5% after the German bank said it plans to revise its shareholder payout policy in the near future.
Aston Martin Lagonda Global Holdings PLC jumped 13.4% to 296.0 pence after the Yew Tree consortium announced to purchase an additional stake of 3.27% or 26 million shares in the luxury automobile company.
3i Infrastructure gained 0.6% to 306.70 pence after the company said it is on track to deliver its fiscal 2024 dividend target of 11.90 pence per share.
Future Plc jumped 20.9% to 863.50 pence after the print and online media company reiterated its annual earnings outlook.
Severn Trent jumped 6.8% to 2,419.0 pence after the waste water treatment company said it plans to invest 12.9 billion over the next five fiscal years.
Syncona advanced 8.9% to 115.67 pence after the company announced a stock repurchase plan.
- Barry Adams
- 28 Sep, 2023
- New York City
Surging bond yields and crude oil prices kept benchmark indexes down in early trading, but market sentiment reversed after bond yields edged lower and investors hunted for bargains.
Divided investors worry about the U.S. economy's health and the Federal Reserves' next policy moves after the latest weekly jobless claims were below expectations.
Initial jobless claims for the week ending September 23rd edged 2,000 higher to 204,000, but stayed near a 7-month low reached in the previous week, the U.S. Department of Labor reported Thursday.
The weaker-than-expected jobless claims followed durable goods orders and new homes sales data, suggesting that the U.S. economy is resilient and labor market conditions are still tight.
In other economic news, the U.S. Commerce Department said real gross domestic product increased at 2.1% in the second quarter from a year ago.
The government report left the growth estimate unrevised after third and final estimate but the agency also significantly revised the first quarter growth estimate between 2020 and 2022.
First quarter GDP growth in 2020 was revised to a decline of 5.3% from the previous estimate of 4.6%, in 2021 to 5.2% from 6.2% and in 2022 to a decline of 1.6% from 2.2% reported previously.
The yield on 10-year U.S. Treasury bonds jumped to a 16-year high after the release of jobless claims as investors feared that the Federal is more likely to keep its higher-for-longer stance well into 2024.
U.S. Indexes & Yields
The S&P 500 index is set to close down the month by 4% and the Nasdaq index by 5% and both indexes are down 3% in the third quarter.
The S&P 500 index increased 0.6% to 4,300.65 and the Nasdaq Composite fell 0.8% to 13,201.90.
The yield on 2-year Treasury notes increased to 5.11%, 10-year Treasury notes inched lower to 4.56% and 30-year Treasury bonds edged down to 4.80%.
Crude oil decreased $1.94 to $91.70 a barrel and natural gas prices rose 5 cents to $2.95 a thermal unit.
The dollar index edged higher to 106.21, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
Micron Technology Inc declined 4.5% to $65 after the advanced chipmaker reported smaller-than-expected loss in the fiscal fourth quarter.
However, investors were disappointed with the company's adjusted earnings per share outlook of $1.07 in the fiscal first quarter.
GameStop Corp edged up 0.1% to $17.17 after the company appointed activist investor Ryan Cohen as the company's chief executive effective immediately.
The company fired its chief executive Matthew Furlong three months after the retailer continued to struggle with sales and its restructuring plan.
Inflation In Germany Eased, Accelerated In Spain
European markets lacked direction amid twin fears of inflation and interest rate path kept investors on sidelines.
Benchmark indexes in Paris and Frankfurt hugged flatline and investors debated policymakers' next step amid persistent inflation.
Spain's consumer price inflation accelerated for the third month in a row 3.5% in September from 2.3% in August, the National Statistics Institute INE reported Thursday.
Consumer price inflation soared to a five-month high because of higher fuel and utility prices.
Core inflation on an annual basis eased to 5.8% in September from 6.1% in August.
On a monthly basis, consumer price inched higher 0.2%, slower pace than 0.5% in August, the report from the statistical agency showed.
Germany's consumer price inflation eased to 4.5% in September from 6.1% in August, the Federal Statistics Office reported Thursday.
Inflation dropped to the lowest level since the outbreak of the war in Ukraine in February 2022. as goods prices advanced at a slower pace of 4.0% compared to 7.1% and services prices rose at 4.0% compared to 5.1% in August.
Oil-driven inflation fears persisted after Brent oil prices hovered near a one-year high of $97 a barrel after the latest U.S. crude oil inventories report showed a sharp decline.
U.S. crude oil inventories declined 2.2 million barrels last week, significantly higher than the market estimate of a decline in 220,000 barrels.
Moreover, crude oil inventories at a key storage hub in Oklahoma also dropped to the lowest level since July 2022.
Europe Indexes & Yields
The DAX index increased 0.2% to 15,323.50, the CAC-40 index advanced 0.6% to 7,113.27 and the FTSE 100 index added 0.1% to 7,601.55.
The yield on 10-year German bonds increased to 2.93%, French bonds traded higher to 3.49%, the UK gilts edged up to 4.49% and Italian bonds rose to 4.90%.
The euro edged lower to a three-month low to $1.055, the British pound to $1.22 and the U.S. dollar fetched 91.84 Swiss cents.
Brent crude decreased $1.06 to $95.48 a barrel and the Dutch TTF natural gas edged higher €0.44 to €39.48 per MWh.
Europe Stock Movers
Pepco Group NV plunged 17% to 21.68 zloty after the Polish retailer cut its profit outlook for the second time in a month.
Ryanair Holdings Plc declined 0.5% to €15.47 after the discount airline cut its winter schedule citing delivery delays in Boeing aircraft.
Banco Santander SA increased 3.0% to €3.60 after the bank said it plans to repurchase 1.2 billion of its own stock.
Home builders in the UK declined on the worries of rising mortgage rates following the recent increase in bond yields.
Taylor Wimpey decreased 1.7% to 116.60 pence and Barratt Developments PLC fell 5.9% to 440.42 pence.
Phoenix Group Holdings Plc decreased 6.5% to 474.60 pence despite the insurance company reporting a narrower pre-tax loss in the first-half of 2023.
888 Holdings PLC dropped 15% to 93.35 pence after the online gambling platform trimmed its full-year earnings outlook.
- Scott Peters
- 28 Sep, 2023
- New York City
Stocks drifted lower after the yields on U.S. Treasury notes jumped to 16-year highs on the worries of the Fed's higher-for-longer stance to continue to drive rates higher.
The S&P 500 index decreased 0.03% to 4,274.06 and the Nasdaq Composite fell 0.1% to 13,082.52.
The yield on 2-year Treasury notes increased to 5.11%, 10-year Treasury notes inched lower to 4.56% and 30-year Treasury bonds edged down to 4.80%.
Crude oil increased $1.30 to $92.38 a barrel and natural gas prices rose 5 cents to $2.95 a thermal unit.
Micron Technology Inc declined 4.5% to $65 after the advanced chipmaker reported smaller-than-expected loss in the fiscal fourth quarter from the previous quarter.
Revenue in the quarter declined to $4.0 billion from $6.6 billion and the company swung to a net loss of $1.4 billion from a profit of $1.4 billion and diluted earnings per share was ($1.31) from $1.35 a year ago.
The company reported revenue in the third quarter of $3.75 billion and a net loss of $1.9 billion and diluted loss per share of $1.73.
However, investors were disappointed with the company's adjusted earnings per share outlook of $1.07 in the fiscal first quarter.
Micron guided fiscal first quarter revenue of $4.4 billion with a band of $200 million and diluted earnings per share to range between ($1.24) and $0.07.
GameStop Corp edged up 0.1% to $17.17 after the company appointed activist investor Ryan Cohen as the company's chief executive effective immediately.
The company fired its chief executive Matthew Furlong three months after the retailer continued to struggle with sales and its restructuring plan.
CarMax Inc dropped 9.9% to $71.80 on the weakening demand for used vehicles and the used-car dealer reported mixed quarterly results.
Net revenue in the fiscal second quarter ending in August fell 13.1% to $7.1 billion and the company purchased 292,000 vehicles from customers and dealers, a 14.9% decline from a year ago.
Retail and wholesale vehicle sales declined 9% to 342,662 units from a year ago and online retail sales accounted for 14% of retail sales compared to 11% in the quarter a year ago.
Total retail used vehicle sales declined 7.4% to 200,825 units and comparable unit sales declined 9% from a year ago.
Total wholesale unit sales decreased 11.2% from a year ago to 141,837 units.
Net income in the quarter declined to $118.6 million from $125.9 million and diluted earnings per share dropped to 75 cents from 79 cents a year ago.
Peloton Interactive Inc jumped 2.5% to $4.79 after the company signed a five-year strategic partnership with Lululemon.
Peloton agreed to provide its content on Lululemon's exercise app, and Lululemon will become primary apparel provider.
Concentrix Corp soared 10.1% to $81.41 despite the customer engagement services provider reported weaker-than-expected sales and earnings.
Revenue in the fiscal third quarter ending in August increased 3.4% to $1.62 billion from $1.57 billon and net income dropped to $77.6 million from $106.7 million and diluted earnings per share dropped to $1.49 from $2.04 a year ago.
The company paid a 27.5 cents per share quarterly dividend on August 8 and the Board of Directors declared a quarterly dividend of 30.25 per share payable on November 7 to shareholders of record at the close of business on October 27.
The company forecasted fiscal fourth quarter revenue between $2.19 billion and $2.215 billion and adjusted non-GAPP diluted earnings per share between $3.03 and $3.15.
- Barry Adams
- 28 Sep, 2023
- New York City
Surging bond yields and crude oil prices kept benchmark indexes down.
Divided investors worry about the U.S. economy's health and the Federal Reserves' next policy moves after the latest weekly jobless claims were below expectations.
Initial jobless claims for the week ending September 23rd edged 2,000 higher to 204,000, but stayed near a 7-month low reached in the previous week, the U.S. Department of Labor reported Thursday.
The weaker-than-expected jobless claims followed durable goods orders and new homes sales data, suggesting that the U.S. economy is resilient and labor market conditions are still tight.
In other economic news, the U.S. Commerce Department said real gross domestic product increased at 2.1% in the second quarter from a year ago.
The government report left the growth estimate unrevised after after third and final estimate but the agency also significantly revised first quarter growth estimate between 2020 and 2022.
First quarter GDP growth in 2020 was revised to a decline of 5.3% from the previous estimate of 4.6%, in 2021 to 5.2% from 6.2% and in 2022 to a decline of 1.6% from 2.2% reported previously.
The yield on 10-year U.S. Treasury bonds jumped to a 16-year high after the release jobless claims as investors feared that the Federal is more likely to keep its higher-for-longer stance well into 2024.
U.S. Indexes & Yields
The S&P 500 index decreased 0.03% to 4,274.06 and the Nasdaq Composite fell 0.1% to 13,082.52.
The yield on 2-year Treasury notes increased to 5.11%, 10-year Treasury notes inched lower to 4.56% and 30-year Treasury bonds edged down to 4.80%.
Crude oil increased $1.30 to $92.38 a barrel and natural gas prices rose 5 cents to $2.95 a thermal unit.
The dollar index edged higher to 106.28, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
Micron Technology Inc declined 4.5% to $65 after the advanced chipmaker reported smaller-than-expected loss in the fiscal fourth quarter.
However, investors were disappointed with the company's adjusted earnings per share outlook of $1.07 in the fiscal first quarter.
GameStop Corp edged up 0.1% to $17.17 after the company appointed activist investor Ryan Cohen as the company's chief executive effective immediately.
The company fired its chief executive Matthew Furlong three months after the retailer continued to struggle with sales and its restructuring plan.
- Inga Muller
- 28 Sep, 2023
- Frankfurt
Stocks in the Euro Area and London traded sideways on the twin worries of inflation and interest rates.
The DAX index increased 0.04% to 15,224.97, the CAC-40 index advanced 0.2% to 7,087.56 and the FTSE 100 index decreased 0.5% to 7,555.62.
The yield on 10-year German bonds increased to 2.94%, French bonds traded higher to 3.50%, the UK gilts edged up to 4.51% and Italian bonds rose to 4.91%.
Pepco Group NV plunged 17% to 21.68 zloty after the Polish retailer cut its profit outlook for the second time in a month.
Ryanair Holdings Plc declined 0.5% to €15.47 after the discount airline cut its winter schedule citing delivery delays in Boeing aircraft.
Banco Santander SA increased 3.0% to €3.60 after the bank said it plans to repurchase 1.2 billion of its own stock.
Home builders in the UK declined on the worries of rising mortgage rates following the recent increase in bond yields.
Taylor Wimpey decreased 1.7% to 116.60 pence and Barratt Developments PLC fell 5.9% to 440.42 pence.
Phoenix Group Holdings Plc decreased 6.5% to 474.60 pence despite the insurance company reporting a narrower pre-tax loss in the first-half of 2023.
888 Holdings PLC dropped 15% to 93.35 pence after the online gambling platform trimmed its full-year earnings outlook.
- Bridgette Randall
- 28 Sep, 2023
- Frankfurt
European markets lacked direction amid twin fears of inflation and interest rate path kept investors on sidelines.
Benchmark indexes in Paris and Frankfurt hugged flatline and investors debated policymakers' next step amid persistent inflation.
Spain's consumer price inflation accelerated for the third month in a row 3.5% in September from 2.3% in August, the National Statistics Institute INE reported Thursday.
Consumer price inflation soared to a five-month high because of higher fuel and utility prices.
Core inflation on an annual basis eased to 5.8% in September from 6.1% in August.
On a monthly basis, consumer price inched higher 0.2%, slower pace than 0.5% in August, the report from the statistical agency showed.
Oil-driven inflation fears persisted after Brent oil prices hovered near a one-year high of $97 a barrel after the latest U.S. crude oil inventories report showed a sharp decline.
U.S. crude oil inventories declined 2.2 million barrels last week, significantly higher than the market estimate of a decline in 220,000 barrels.
Moreover, crude oil inventories at a key storage hub in Oklahoma also dropped to the lowest level since July 2022.
Europe Indexes & Yields
The DAX index increased 0.04% to 15,224.97, the CAC-40 index advanced 0.2% to 7,087.56 and the FTSE 100 index decreased 0.5% to 7,555.62.
The yield on 10-year German bonds increased to 2.94%, French bonds traded higher to 3.50%, the UK gilts edged up to 4.51% and Italian bonds rose to 4.91%.
The euro edged lower to a three-month low to $1.055, the British pound to $1.22 and the U.S. dollar fetched 91.84 Swiss cents.
Brent crude decreased $1.04 to $96.05 a barrel and the Dutch TTF natural gas edged higher €2.06 to €41.36 per MWh.
Europe Stock Movers
Pepco Group NV plunged 17% to 21.68 zloty after the Polish retailer cut its profit outlook for the second time in a month.
Ryanair Holdings Plc declined 0.5% to €15.47 after the discount airline cut its winter schedule citing delivery delays in Boeing aircraft.
Banco Santander SA increased 3.0% to €3.60 after the bank said it plans to repurchase 1.2 billion of its own stock.
Home builders in the UK declined on the worries of rising mortgage rates following the recent increase in bond yields.
Taylor Wimpey decreased 1.7% to 116.60 pence and Barratt Developments PLC fell 5.9% to 440.42 pence.
Phoenix Group Holdings Plc decreased 6.5% to 474.60 pence despite the insurance company reporting a narrower pre-tax loss in the first-half of 2023.
888 Holdings PLC dropped 15% to 93.35 pence after the online gambling platform trimmed its full-year earnings outlook.
- Barry Adams
- 27 Sep, 2023
- New York City
Fears of inflation drove market indexes down after the yield on 10-year Treasury advanced 5 basis points.
Stocks attempted a rebound but quickly lost ground after the U.S. Treasury yields edged higher and the U.S. dollar continued to advance.
Market sentiment reversed after the durable goods orders rose in August, sending yet another signal to policymakers that the economic activities are still robust despite several rate hikes over the last sixteen months.
Benchmark indexes were in the negative territory after the yield on the 2-year and 10-year Treasury notes edged higher and hovered at 16-year highs.
The S&P 500 and the Nasdaq Composite indexes are facing headwinds and the benchmark indexes are set to close down between 3% and 4% for the second month in a row in September.
Higher rates have begun to impact housing market activities and new home sales fell at the fastest pace in eleven months in August, the Commerce Department report showed Wednesday.
Banks are also in focus on the worries that higher-for-longer rates will force several banks, regardless of the size, to raise more capital from investors.
Rising U.S. Treasury yields are contributing to unrealized losses in the portfolio of government securities held by banks, and interest rates are not near peak rates.
Moreover, the recent rally in oil prices over the last three months are raising the prospect of a rebound in oil-driven inflation, further putting pressure on policy makers to keep higher rates for longer.
Investors are also on edge and the looming federal government shutdown on October could spike rates even further and lead rating agencies to downgrade the U.S. debt ratings.
U.S. Durable Goods Orders Advanced In August
New orders for manufactured durable goods orders increased 0.2% in August from the previous month to $284.7 billion, the U.S. Census Bureau reported Wednesday.
New orders from a year ago advanced 4.2% and July orders were upwardly revised to a decline of 5.6%
Excluding transportation, new orders increased 0.4% and excluding defense, orders declined 0.7%.
Critically watched as a barometer for business spending, new orders for capital goods excluding defense and aircraft orders rose 0.9%, reversing a 0.4% decline in July.
Shipments for manufactured durable goods orders increased 0.5% in August to $284.6 billion, and shipments increased in three of the last four months.
U.S. Indexes & Yields
The S&P 500 index decreased 1.03% to 4,293.08 and the Nasdaq Composite fell 1.1% to 13,126.05.
The yield on 2-year Treasury notes declined to 5.06%, 10-year Treasury notes inched lower to 4.56% and 30-year Treasury bonds edged down to 4.64%.
Crude oil increased $1.33 to $91.74 a barrel and natural gas prices rose 2 cents to $2.87 a thermal unit.
The dollar index edged higher to 106.34, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
Target Corp edged slightly higher to $109.55 after the company said it plans to close nine stores in several states after repeated theft incidences, store violence and crime.
The retail chain said it will shutter stores in New York City, Seattle, Portland and San Francisco-Oakland area.
Costco Wholesale Corp decreased 1.7% to 543.49 after the membership warehouse retailer reported better-than-expected quarterly results.
Net sales in the fourth quarter ending in September increased 9.4% to $77.43 billion from $70.76 billion a year ago.
Comparable companywide sales, adjusted for gasoline prices and foreign exchange, increased 3.8% from a year ago and U.S. sales rose 3.1% from a year ago.
Net income in the quarter increased to $2.16 billion from $1.868 billion and diluted earnings per share rose to $4.86 from $4.20 a year earlier.
Tesla Inc, Lucid Group Inc and Rivian Automotive gained between 0.5% and 1.5% after the United Auto Workers deepened the worker's strike at several plants in the Midwest.
Weak German Consumer Sentiment Weighs On European Markets
European markets lacked direction for the second week in a row on the ongoing interest rate uncertainties and looming economic slowdown.
Benchmark indexes in Paris, London and Frankfurt diverged but traded in a tight range and the euro drifted to a new six-month low.
The yield in the euro bond markets hovered near 12-year highs and investors debated the central bank's next move and terminal rate levels.
In the last two weeks, investors have suddenly shifted their views on rate path and terminal rates after policymakers stressing for months that higher rates are here to stay.
The yields on Germany, French and Italian bonds jumped to the levels last seen 12 years ago, and investors are bracing for higher rates in the months ahead.
In economic news in the region, the latest survey of German consumers suggested high inflation is impacting consumer morale and consumer sentiment is not expected to improve in the rest of the year.
The forward-looking consumer climate index declined to -26.5 in October, from a revised -25.6 fall in the prior month.
The chances that consumer sentiment can sustainably recover before the end of this year are dwindling more and more," said Rolf Bürkl, GfK consumer expert.
"Private consumption will therefore not make a positive contribution to overall economic development this year,” Burki added.
Europe Indexes & Yields
The DAX index decreased 0.2% to 15,220.95, the CAC-40 index decreased 0.02% to 7,071.67 and the FTSE 100 index decreased 0.3% to 7,603.78.
The yield on 10-year German bonds increased to 2.78%, French bonds traded higher to 3.34%, the UK gilts edged up to 4.29% and Italian bonds rose to 4.69%.
The euro edged lower to a three-month low to $1.055, the British pound to $1.214 and the U.S. dollar fetched 91.71 Swiss cents.
Brent crude decreased $1.04 to $95.0 a barrel and the Dutch TTF natural gas edged lower €0.62 to €39.70 per MWh.
Europe Stock Movers
H&M Group AB jumped 3.2% to skr 159.82 after the Swedish retailer said it plans to buy back its class B shares for 3 billion kronor starting September 27.
NN Group declined 14.6% to €30.89 after the largest insurance group of the Netherlands said that the latest court ruling could have adverse material impact on its financial health.
A court in Hague ruled that the company had not provided enough information about the investment-linked insurance products, reversing the earlier ruling in 2017.
The ruling also dragged rival Dutch insurance companies ASR Nederland by 9.8% to €36.58 and Aegon NV by 0.8% to $4.86.
- Brian Turner
- 27 Sep, 2023
- New York City
New orders for manufactured durable goods orders increased 0.2% in August from the previous month to $284.7 billion, the U.S. Census Bureau reported Wednesday.
New orders from a year ago advanced 4.2% and July orders were upwardly revised to a decline of 5.6%
Excluding transportation, new orders increased 0.4% and excluding defense, orders declined 0.7%.
Critically watched as a barometer for business spending, new orders for capital goods excluding defense and aircraft orders rose 0.9%, reversing a 0.4% decline in July.
Shipments for manufactured durable goods orders increased 0.5% in August to $284.6 billion, and shipments increased in three of the last four months.
- Scott Peters
- 27 Sep, 2023
- New York City
The S&P 500 index decreased 1.03% to 4,293.08 and the Nasdaq Composite fell 1.1% to 13,126.05.
Target Corp edged slightly higher to $109.55 after the company said it plans to close nine stores in several states after repeated theft incidences, store violence and crime.
The retail chain said it will shutter stores in New York City, Seattle, Portland and San Francisco-Oakland area.
Costco Wholesale Corp decreased 1.7% to 543.49 after the membership warehouse retailer reported better-than-expected quarterly results.
Net sales in the fourth quarter ending in September increased 9.4% to $77.43 billion from $70.76 billion a year ago.
Comparable companywide sales, adjusted for gasoline prices and foreign exchange, increased 3.8% and the U.S. sales rose 3.1% from a year ago.
Net income in the quarter increased to $2.16 billion from $1.868 billion and diluted earnings per share rose to $4.86 from $4.20 a year earlier.
Tesla Inc, Lucid Group Inc and Rivian Automotive gained between 0.5% and 1.5% after the United Auto Workers deepened the worker's strike at several plants in the Midwest.
- Barry Adams
- 27 Sep, 2023
- New York City
Stocks attempted a rebound and the U.S. Treasury yields edged slightly lower but the U.S. dollar continued to advance amid rising market volatility.
Benchmark indexes lacked direction in early trading after the yield on the 2-year and 10-year Treasury notes edged lower but hovered at 16-year highs.
The S&P 500 and the Nasdaq Composite indexes are facing headwinds and the benchmark indexes are set to close down between 3% and 4% for the second month in a row in September.
Higher rates have begun to impact housing market activities and new home sales fell at the fastest pace in eleven months in August, the Commerce Department report showed Wednesday.
Banks are also in focus on the worries that higher-for-longer rates will force several banks, regardless of the size, to raise more capital from investors.
Rising U.S. Treasury yields are contributing to unrealized losses in the portfolio of government securities held by banks, and interest rates are not near peak rates.
Moreover, the recent rally in oil prices over the last three months are raising the prospect of a rebound in oil-driven inflation, further putting pressure on policy makers to keep higher rates for longer.
U.S. Indexes & Yields
The S&P 500 index decreased 1.03% to 4,293.08 and the Nasdaq Composite fell 1.1% to 13,126.05.
The yield on 2-year Treasury notes declined to 5.06%, 10-year Treasury notes inched lower to 4.56% and 30-year Treasury bonds edged down to 4.64%.
Crude oil increased $1.33 to $91.74 a barrel and natural gas prices rose 2 cents to $2.87 a thermal unit.
The dollar index edged higher to 106.34, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
Target Corp edged slightly higher to $109.55 after the company said it plans to close nine stores in several states after repeated theft incidences, store violence and crime.
The retail chain said it will shutter stores in New York City, Seattle, Portland and San Francisco-Oakland area.
Costco Wholesale Corp decreased 1.7% to 543.49 after the membership warehouse retailer reported better-than-expected quarterly results.
Net sales in the fourth quarter ending in September increased 9.4% to $77.43 billion from $70.76 billion a year ago.
Comparable companywide sales, adjusted for gasoline prices and foreign exchange, increased 3.8% from a year ago and U.S. sales rose 3.1% from a year ago.
Net income in the quarter increased to $2.16 billion from $1.868 billion and diluted earnings per share rose to $4.86 from $4.20 a year earlier.
Tesla Inc, Lucid Group Inc and Rivian Automotive gained between 0.5% and 1.5% after the United Auto Workers deepened the worker's strike at several plants in the Midwest.
- Inga Muller
- 27 Sep, 2023
- Frankfurt
European markets lacked direction and investors debated future direction and terminal levels for interest rates in the months ahead.
The DAX index decreased 0.2% to 15,220.95, the CAC-40 index decreased 0.02% to 7,071.67 and the FTSE 100 index decreased 0.3% to 7,603.78.
The yield on 10-year German bonds increased to 2.78%, French bonds traded higher to 3.34%, the UK gilts edged up to 4.29% and Italian bonds rose to 4.69%.
Higher rate worries dragged banks and insurance companies lower and Deutsche Bank, Commerzbank, Allianz, BNP Paribas and AXA SA declined between 0.5% and 1.5%.
H&M Group AB jumped 3.2% to skr 159.82 after the Swedish retailer said it plans to buy back its class B shares for 3 billion kronor starting September 27.
NN Group declined 14.6% to €30.89 after the largest insurance group of the Netherlands said that the latest court ruling could have adverse material impact on its financial health.
A court in Hague ruled that the company had not provided enough information about the investment-linked insurance products, reversing the earlier ruling in 2017.
The ruling also dragged rival Dutch insurance companies ASR Nederland by 9.8% to €36.58 and Aegon NV by 0.8% to $4.86.
- Bridgette Randall
- 27 Sep, 2023
- Frankfurt
European markets lacked direction for the second week in a row on the ongoing interest rate uncertainties and looming economic slowdown.
Benchmark indexes in Paris, London and Frankfurt diverged but traded in a tight range and the euro drifted to a new six-month low.
The yield in the euro bond markets hovered near 12-year highs and investors debated the central bank's next move and terminal rate levels.
In the last two weeks, investors have suddenly shifted their views on rate path and terminal rates after policymakers stressing for months that higher rates are here to stay.
The yields on Germany, French and Italian bonds jumped to the levels last seen 12 years ago, and investors are bracing for higher rates in the months ahead.
In economic news in the region, the latest survey of German consumers suggested high inflation is impacting consumer morale and consumer sentiment is not expected to improve in the rest of the year.
The forward-looking consumer climate index declined to -26.5 in October, from a revised -25.6 fall in the prior month.
The chances that consumer sentiment can sustainably recover before the end of this year are dwindling more and more," said Rolf Bürkl, GfK consumer expert.
"Private consumption will therefore not make a positive contribution to overall economic development this year,” Burki added.
Europe Indexes & Yields
The DAX index decreased 0.2% to 15,220.95, the CAC-40 index decreased 0.02% to 7,071.67 and the FTSE 100 index decreased 0.3% to 7,603.78.
The yield on 10-year German bonds increased to 2.78%, French bonds traded higher to 3.34%, the UK gilts edged up to 4.29% and Italian bonds rose to 4.69%.
The euro edged lower to a three-month low to $1.055, the British pound to $1.214 and the U.S. dollar fetched 91.71 Swiss cents.
Brent crude decreased $1.04 to $95.0 a barrel and the Dutch TTF natural gas edged lower €0.62 to €39.70 per MWh.
Europe Stock Movers
H&M Group AB jumped 3.2% to skr 159.82 after the Swedish retailer said it plans to buy back its class B shares for 3 billion kronor starting September 27.
NN Group declined 14.6% to €30.89 after the largest insurance group of the Netherlands said that the latest court ruling could have adverse material impact on its financial health.
A court in Hague ruled that the company had not provided enough information about the investment-linked insurance products, reversing the earlier ruling in 2017.
The ruling also dragged rival Dutch insurance companies ASR Nederland by 9.8% to €36.58 and Aegon NV by 0.8% to $4.86.