- Scott Peters
- 06 Nov, 2023
- New York City
Bluegreen Vacation Holding Corp. soared 108.8% to $73.09 after the company agreed to be acquired by Hilton Grand Vacations Inc. for $75.0 per share in an all-cash transaction.
The transaction values the company at $1.5 billion, including net debt.
Hilton Grand Vacations Inc. declined 9.4% to $33.75.
Citigroup added 0.1% to $42.31, and the bank is looking to trim as many as 10,000 jobs from its total payroll of 240,000.
The news was first reported by CNBC without naming sources.
Berkshire Hathaway Class B increased 0.6% to $353.99 after the reinsurance-anchored diversified conglomerate reported a surge in quarterly profits.
Operating earnings in the third quarter increased 40% to $10.76 billion from $7.6 billion, driven by a sharp increase in its insurance business.
Insurance underwriting swung to a profit of $2.4 billion from a loss of $1.07 billion, and insurance investment income soared to $2.5 billion from $1.4 billion a year ago.
Investment income jumped after interest rates jumped in the twelve-month period to the end of the third quarter, after the Federal Reserve carried out its aggressive rate hike campaign between March 2022 and June 2023.
Total revenues increased to $93.2 billion from $76.9 billion, net loss attributable to shareholders increased to $12.7 billion from $2.7 billion, and diluted loss per Class A share increased to $8,824 from $1,907 a year ago.
Based on GAAP accounting, net income also reflected the quarterly unrealized investment losses of $29.8 billion compared to $13.5 billion in the corresponding quarter a year ago.
Cash and equivalent securities held by the company at the end of September jumped to $157.2 billion from $128.5 billion a year ago.
Dish Network Corp. dropped 20% to $4.39 after the communication company reported third-quarter financial results.
Revenue in the third quarter declined 9.5% to $3.7 billion from $4.1 billion, and the company swung to a net loss of $116.8 million from a profit of $429.6 million, and diluted earnings per share were a loss of 26 cents compared to 65 cents a year ago.
In the quarter, Pay TV subscribers fell by 64,000, and the loss of wireless subscribers accelerated, ending the quarter with 7.5 million retail wireless subscribers.
Retail wireless net subscribers decreased by approximately 225,000 in the third quarter, compared to a net increase of 1,000 in the year-ago quarter.
In addition, the company agreed to sell its wireless spectrum assets and about 120,000 wireless subscribers in the U.S. Virgin Islands and Puerto Rico to Liberty Latin America.
The sale of the assets and subscriber base was valued at $256 million, paid in cash and international roaming credits, and the transaction is expected to close in the first half of 2024.
The company announced the resignation of CEO Erik Carlson effective November 12, and Hamid Akhavan, the current CEO of EchoStar Corp., is expected to lead the company.
- Barry Adams
- 06 Nov, 2023
- New York City
Stocks on Wall Street edged higher, and bond yields drifted lower after interest rate uncertainties eased.
Benchmark indexes advanced in Monday's trading following stronger-than-expected earnings, and investors searched for bargains in recently beaten-down tech and financial sectors.
The S&P 500 index and the Nasdaq Composite advanced 5% in the previous week, the best weekly gains since November 2022.
Investors returned to add stock exposure in the hopes that the Federal Reserve is done raising interest rates for now and may hold rates for the third time at the next and final rate-setting meeting on December 13.
Market sentiment was bolstered after the 10-year Treasury note yield trended lower from the 16-year high of 5% after expectations rose that the Federal Reserve would hold rates steady till the first two-day meeting of 2024 ending on January 31.
Last week, a softer increase in nonfarm payroll in October supported the Fed's case for a rate hike pause. further emboldening investors to increase stock exposure.
Benchmark indexes advanced for the fifth day in a row on stable rates, improving earnings, and stronger-than-expected economic growth driven by resilient consumer spending and not-too-tight labor conditions, which are also supporting the rise in stock market indexes.
U.S. indexes and Yields
The S&P 500 index increased 0.2% to 4,295.13, and the Nasdaq Composite advanced 0.2% to 13,232.06.
The yield on 2-year Treasury notes increased to 4.88%, 10-year Treasury notes inched higher to 4.60%, and 30-year Treasury bonds edged down to 4.78%.
Crude oil increased $0.93 to $81.55 a barrel, and natural gas prices fell 16 cents to $3.43 a thermal unit.
Gold decreased $7.84 to $1,985.03 an ounce after bond yields edged lower and the dollar weakened.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.95.
U.S. Stock Movers
Citigroup added 0.1% to $42.31, and the bank is looking to trim as many as 10,000 jobs from its total payroll of 240,000.
The news was first reported by CNBC without naming sources.
Berkshire Hathaway Class B increased 0.6% to $353.99 after the reinsurance insurance-anchored diversified conglomerate reported a surge in quarterly profits.
Operating earnings in the third quarter increased 40% to $10.76 billion from $7.6 billion, driven by a sharp increase in its insurance business.
Insurance underwriting swung to a profit of $2.4 billion from a loss of $1.07 billion, and insurance investment income soared to $2.5 billion from $1.4 billion a year ago.
Investment income jumped after interest rates jumped in the twelve-month period to the end of the third quarter, after the Federal Reserve carried out its aggressive rate hike campaign between March 2022 and June 2023.
Total revenues increased to $93.2 billion from $76.9 billion, net loss attributable to shareholders increased to $12.7 billion from $2.7 billion, and diluted loss per Class A share increased to $8,824 from $1,907 a year ago.
Based on GAAP accounting, net income also reflected the quarterly unrealized investment losses of $29.8 billion compared to $13.5 billion in the corresponding quarter a year ago.
Cash and equivalent securities held by the company at the end of September jumped to $157.2 billion from $128.5 billion a year ago.
- Inga Muller
- 06 Nov, 2023
- Frankfurt
European stock markets halted a 5-day rally, bond yields drifted lower for the second week in a row, and the euro and the pound edged higher.
The DAX index decreased 0.3% to 15,149.54, the CAC-40 index fell 0.3% to 7,025.69, and the FTSE 100 index was flat at 7,417.97.
Telecom Italia SpA declined 0.3% to €0.25 after the company agreed to sell its landline business to the U.S.-based private equity group KKR LP for €19 billion.
PostNL NV dropped 11% to €1.59 after the Dutch parcel delivery company reported a quarterly loss and forecasted annual profit to fall near the low end of its previous estimate.
Ryanair Holdings plc increased 6.6% to €16.21 after the discount airline forecasted a record annual profit and indicated its plan to pay a regular dividend.
The discount carrier said its fares increased by 24% during the summer, and fares are likely to remain high for years because of limited capacity.
Europe’s largest airline by passenger numbers estimated a full-year after-tax profit to fall between €1.85 billion and €2.05 billion for its financial year ending in March, ahead of the previous record in 2018.
Scottish Mortgage Investment Trust PLC declined 0.5% to 684.48 pence after the company reported a decline in net asset value in the first half of the fiscal year.
Prudential plc decreased 0.8% to 892.60 pence after the insurance company reported a slower pace of growth in the third quarter from the previous quarter.
Melrose Industries PLC rose 3.5% to 507.0 pence after the company's unit, GKN Aerospace, signed a new agreement with GE Aerospace.
- Bridgette Randall
- 06 Nov, 2023
- Frankfurt
European markets lacked direction in Monday's trading following a 5-day rally.
In cautious market sentiment, stocks drifted lower and bond yields continued to slide for the second week in a row after interest rate uncertainties eased following the rate hike pause in the U.S. and U.K.
Investors are struggling to recalibrate expectations in the face of a looming economic slowdown, tight labor market conditions, and rising interest rates driven by elevated inflation.
Inflation has been falling in the Euro Area, and consumer price inflation has steadily declined from a peak of 10.1% in November 2022 to 2.9% in October.
The European Central Bank has raised interest rates several times, but consumer inflation is still higher than the target rate of 2%. The recent decrease in inflation is due to lower energy prices and a higher base for the previous year.
Market indexes in Frankfurt, London, and Paris edged slightly lower, and investors reviewed updates on the UK's construction industry, German factory orders, and eurozone business activity.
German Factory Orders Advanced In September
German factory orders adjusted for seasonal factors, and the calendar unexpectedly rose 0.2% from the previous month in September, the Destatis reported Monday.
Factory orders fell 4.3% from a year ago.
August orders were downwardly revised to a 1.9% increase from the previous estimate of 3.9% following the revision of incorrect data in the manufacturing of electronic, optical, and computer products.
Domestic orders fell 5.9% and foreign orders were up 4.2%, after orders in the eurozone increased 6.2% and orders from the rest of the world rose 2.9%.
In other economic news, the HCOB Eurozone PMI compiled by S&P Global declined to 46.5 in October from 47.2 in September, the weakest reading since November 2020.
The purchasing managers' index highlighted different conditions in Spain and Italy.
The PMI for Spain in October was little changed at 50.0 from 50.1 in September, indicating stable conditions in the country.
The service PMI for Italy in October decreased to 47.7 from 49.9 in September, and the index contracted at the fastest pace in a year because of a decline in service output and activity.
The U.K. construction PMI rose to 45.6 in October from 45.0 in September, reflecting ongoing weakness in residential construction.
Home building declined for the eleventh month in a row, and civil construction activities declined at the sharpest pace since July 2020.
Europe Indexes and Yields
The DAX index decreased 0.3% to 15,149.54, the CAC-40 index fell 0.3% to 7,025.69, and the FTSE 100 index was flat at 7,417.97.
The yield on 10-year German bonds decreased to 2.70%, French bonds traded lower to 3.29%, the UK gilts edged down to 4.33%, and Italian bonds inched higher to 4.52%.
The euro rebounded to $1.075, the British pound at $1.242, and the U.S. dollar at 89.61 Swiss cents.
Brent crude increased $1.43 to $86.43 a barrel, and the Dutch TTF natural gas edged lower by €1.63 to €46.43 per MWh.
Europe Stock Movers
Telecom Italia SpA declined 0.3% to €0.25 after the company agreed to sell its landline business to the U.S.-based private equity group KKR LP for €19 billion.
PostNL NV dropped 11% to €1.59 after the Dutch parcel delivery company reported a quarterly loss and forecasted annual profit to fall near the low end of its previous estimate.
Ryanair Holdings plc increased 6.6% to €16.21 after the discount airline forecasted a record annual profit and indicated its plan to pay a regular dividend.
Scottish Mortgage Investment Trust PLC declined 0.5% to 684.48 pence after the company reported a decline in net asset value in the first half of the fiscal year.
Prudential plc decreased 0.8% to 892.60 pence after the insurance company reported a slower pace of growth in the third quarter from the previous quarter.
Melrose Industries PLC rose 3.5% to 507.0 pence after the company's unit, GKN Aerospace, signed a new agreement with GE Aerospace.
- Scott Peters
- 03 Nov, 2023
- New York City
Apple Inc. declined 1.7% to $174.51 after the maker of popular communication devices reported a decline in revenue for the fourth quarter in a row and forecasted weaker sales in the current quarter.
Revenue in the fiscal fourth quarter declined 1% to $89.5 billion from $90.1 billion, net income advanced to $22.9 billion from $20 billion, and diluted earnings per share rose to $1.46 from $1.29 a year ago.
Sales of iPhones increased to $43.8 billion from $43.6 billion, Macs plunged 34% to $7.6 billion from $11.5 billion, iPads eased to $6.4 billion from $7.2 billion, wearables fell to $9.3 billion from $9.7 billion, and services revenue jumped 16% to a record high of $22.3 billion from $19.2 billion a year ago.
Sales in the Americas edged up to $40.1 billion from $39.8 billion and edged slightly lower in Europe to $22.5 billion, in Greater China to $15 billion, in Japan to $5.5 billion, and in the rest of Asia to $6.3 billion.
For the full year, sales declined 3% to $383.3 billion from $394.3 billion.
The company's board of directors declared a cash dividend of 24 cents per share payable on November 13 to shareholders on record on November 10.
The company's installed base of devices reached a new record high across all products and all geographic segments, said chief financial officer Luca Maestri.
The company guided current quartet sales "to be similar to" the previous year, but the current year has one fewer week.
BMW AG jumped 3.1% to €93.91 after the company said production volume increased 4.2% to 638,524 vehicles in the third quarter.
Group revenue increased 3.4% to €38.5 billion from €37.2 billion, net income declined 7.7% to €2.9 billion from €3.2 billion, and earnings per share fell to €4.20 from €4.25 a year ago.
All electric vehicle sales in the quarter surged 79.6% to 93,931 units, accounting for 15.1% of total deliveries.
Starbucks Corp. extended 2-day gains to 13% after the coffee chain reported better-than-expected quarterly sales.
Revenue in the fiscal fourth quarter ending on October 1 increased 11.4% to $9.4 billion from $8.4 billion, net income advanced 38.3% to $1.2 billion from $878.3 million, and diluted earnings per share rose to $1.06 from 76 cents a year ago.
Global comparable store sales increased by 8%, driven by a 4% increase in average ticket sales and a 3% increase in comparable transactions.
North America and U.S. comparable store sales increased 8%, driven by a 6% increase in average ticket sales and a 2% increase in comparable transactions.
International comparable store sales increased 5%, driven by a 6% increase in comparable transactions and a 1% decline in average ticket sales.
In the second-largest market, China, comparable store sales increased 5%, driven by an 8% increase in comparable transactions and a 3% decline in average ticket sales.
The company continued its expansion and opened 816 net new stores in the quarter, ending the period with 38,038 stores, of which 52% are company-operated and 48% are licensed.
- Brian Turner
- 03 Nov, 2023
- New York City
Nonfarm payrolls in October increased 150,000, compared to 297,000 in the previous month, the U.S. Bureau of Labor Statistics reported Friday.
The jobless rate at 3.9% and the number of unemployed persons at 6.5 million changed little in October.
In October, the number of long-term unemployed, those jobless for 27 weeks or more, was little changed at 1.3 million and accounted for 19.8% of all unemployed persons.
Employers added jobs in healthcare (58,000), social assistance (19,000), and government (51,000), and several strikes, including by the members of the UAW, pulled down employment in manufacturing by 35,000.
October payrolls increased below the average monthly gain of 258,000 over the last 12 months, but higher than the 75,000 jobs needed to meet the needs of the expanding population.
- Barry Adams
- 03 Nov, 2023
- New York City
Market indexes rallied more than 1% for the third day in a row in the hopes that interest rates have peaked for now.
The yield on 10-year Treasury notes edged lower for the third day in a row as investors hoped that the Federal Reserve may pause rate hikes at the next meeting in December.
Investors warmed up to stocks on the expectation of stable interest rates for the next three months, resilient consumer spending, and a softening but still tight labor market.
The S&P 500 index and the Nasdaq Composite index advanced 1% in active trading after the latest jobs report, which also supported the peak-rate theory.
Nonfarm Payroll Growth Slowed in October
Nonfarm payrolls in October increased 150,000, compared to 297,000 in the previous month, the U.S. Bureau of Labor Statistics reported Friday.
The jobless rate at 3.9% and the number of unemployed persons at 6.5 million changed little in October.
In October, the number of long-term unemployed, those jobless for 27 weeks or more, was little changed at 1.3 million and accounted for 19.8% of all unemployed persons.
Employers added jobs in healthcare (58,000), social assistance (19,000), and government (51,000), and several strikes, including by the members of the UAW, pulled down employment in manufacturing by 35,000.
October payrolls increased below the average monthly gain of 258,000 over the last 12 months, but higher than the 75,000 jobs needed to meet the needs of the expanding population.
U.S. indexes and Yields
The S&P 500 index and the Nasdaq Composite are set to gain about 5% in the week after bond yields edged lower and rate uncertainties eased.
The S&P 500 index increased 1.0% to 4,287.45, and the Nasdaq Composite advanced 1.2% to 13,218.45.
The yield on 2-year Treasury notes decreased to 4.86%, 10-year Treasury notes inched lower to 4.50%, and 30-year Treasury bonds edged down to 4.69%.
Crude oil decreased $1.06 to $81.39 a barrel, and natural gas prices rose 3 cents to $3.50 a thermal unit.
Gold increased $6.61 to $1,992.53 an ounce after bond yields edged lower and the dollar weakened.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.25.
U.S. Stock Movers
Apple Inc. declined 1.7% to $174.51 after the maker of popular communication devices reported a decline in revenue for the fourth quarter in a row and forecasted weaker sales in the current quarter.
Revenue in the fiscal fourth quarter declined 1% to $89.5 billion from $90.1 billion, net income advanced to $22.9 billion from $20 billion, and diluted earnings per share rose to $1.46 from $1.29 a year ago.
Sales of iPhones increased to $43.8 billion from $43.6 billion, Macs plunged 34% to $7.6 billion from $11.5 billion, iPads eased to $6.4 billion from $7.2 billion, wearables fell to $9.3 billion from $9.7 billion, and services revenue jumped 16% to a record high of $22.3 billion from $19.2 billion a year ago.
Sales in the Americas edged up to $40.1 billion from $39.8 billion and edged slightly lower in Europe to $22.5 billion, in Greater China to $15 billion, in Japan to $5.5 billion, and in the rest of Asia to $6.3 billion.
For the full year, sales declined 3% to $383.3 billion from $394.3 billion.
The company's board of directors declared a cash dividend of 24 cents per share payable on November 13 to shareholders on record on November 10.
The company's installed base of devices reached a new record high across all products and all geographic segments, said chief financial officer Luca Maestri.
The company guided current quartet sales "to be similar to" the previous year, but the current year has one fewer week.