- Scott Peters
- 27 Apr, 2023
- New York City
Meta Platforms Inc increased 13.5% to $209.30 after the parent of Facebook reported better-than-expected revenue.
Revenue in the March quarter increased 3% to $28.6 billion and net income dropped 24% to $5.7 billion from $7.5 billion and diluted earnings per share fell to $2.20 from $2.72 a year ago.
Facebook daily active users increased 4% to 2.04 billion and across all sites including Instagram and WhatsApp rose 5% to 3.02 billion.
In the first quarter, ad impressions delivered across all apps increased 26% and the average price per ad decreased 17% from a year ago.
Meta Platforms repurchased $9.22 billion of Class A common stock in the first quarter and the company had $41.73 billion available and authorized for repurchases.
STMicroelectronics NV fell 8.9% to $42.14 after the Switzerland-based advanced electronics company announced quarterly results ahead of market expectations.
The company said revenue in the first quarter increased 19.8% to $4.2 billion and net income soared 39.8% to $1.04 billion from $747 million and diluted earnings per share increased to $1.10 from 79 cents a year ago.
The company forecasted second quarter revenue of $4.28 billion with a band of $350 million, a sequential increase of 0.8%, and gross margin of 49.0% with a band of 200 basis points.
American Airlines Group increased 1.5% to $12.93 after the international airline reported mixed quarterly results.
Revenue in the first quarter increased 37% to $12.2 billion and the company swung to a net income of $10 million from a loss of $1.6 billion and diluted earnings per share was 2 cents compared to ($2.52) a year ago.
Southwest Airlines Co declined 4.7% to $29.44 after the regional airlines reported wider loss in the first quarter following a negative revenue impact after the late December scheduling crisis that led to the cancellation of 16,000 flights.
Revenue in the first quarter increased 21.6% to $5.7 billion from $4.7 billion and net loss shrank to $159 million from $278 million and diluted loss per share shrank to 27 cents from 47 cents a year ago.
Teladoc Health Inc rose 5% to $27.02 after the telehealth platform operator lifted its revenue and adjusted earnings outlook for the year.
Revenue in the first quarter increased 11% to $629.2 million and net loss in the quarter dropped to $69 million from $6.7 billion and diluted loss per share fell to 42 cents to $41.58 a year ago.
In the first quarter of 2022, the company recorded a goodwill impairment charge of $6.6 billion.
The telemedicine company forecasted second quarter revenue between $635 million and $660 million and between $2.575 billion and $2.675 billion in the full-year 2023.
The company also estimated adjusted operating earnings between $60 million and $68 million in the second quarter and between $285 million and $325 million in the full-year 2023.
eBay Inc increased 3.6% to $44.93 after the online marketplace reported better-than-expected quarterly results.
Revenue in the first quarter increased 1% to $2.5 billion from $2.48 billion a year ago.
Net income from continuing operations swung to a profit of $569 million from a loss of $1.4 billion and diluted earnings per share was $1.05 from ($2.28) a year ago.
The company declared a cash dividend of $0.25 per share payable on June 16, 2023 to stockholders of record as of June 1, 2023.
- Barry Adams
- 27 Apr, 2023
- New York City
Stocks advanced in early trading after Facebook parent reported revenue growth for the first time in about a year.
Benchmark indexes jumped in cautious trading and tech stocks led the gainers after Metal Platforms reported increase in revenue and daily users across all sites.
Investors were encouraged after the online company reported its first increase in advertising revenue in about a year, indicating a stable environment for revenue in the coming months.
Market gains were muted after GDP growth slowed sharply in the first quarter, raising the prospect of a broader slowdown in the economy.
Sharp Deceleration In US GDP Growth
U.S. real gross domestic product increased at an annual rate of 1.1% in the first quarter, slower than the 2.6% rate in the final quarter of 2022, the Bureau of Economic Analysis reported Thursday.
Increases in consumer spending, exports, federal government spending, state and local government spending, and nonresidential fixed investment were partly offset by decreases in private inventory investment and residential fixed investment.
Higher imports also weighed negatively on the final growth calculation.
Indexes & Yields
The S&P 500 index increased 0.8% to 4,088.60 and the Nasdaq Composite index advanced 0.9% to 11,968.01.
The yield on 2-year Treasury notes inched lower to 4.01%, 10-year Treasury notes rose to 3.48% and 30-year Treasury bonds held at 3.74%.
Crude oil fell 46 cents to $74.73 a barrel and natural gas prices eased a fraction to $2.28 a thermal unit.
Stock Movers
Meta Platforms Inc increased 13.5% to $209.30 after the parent of Facebook reported better-than-expected revenue.
Revenue in the March quarter increased 3% to $28.6 billion and net income dropped 24% to $5.7 billion from $7.5 billion and diluted earnings per share fell to $2.20 from $2.72 a year ago.
Facebook daily active users increased 4% to 2.04 billion and across all sites including Instagram and WhatsApp rose 5% to 3.02 billion.
In the first quarter, ad impressions delivered across all apps increased 26% and the average price per ad decreased 17% from a year ago.
Meta Platforms repurchased $9.22 billion of Class A common stock in the first quarter and the company had $41.73 billion available and authorized for repurchases.
STMicroelectronics NV declined 4.2% to €40.45 after the Switzerland-based advanced electronics company announced quarterly results ahead of market expectations.
The company said revenue in the first quarter increased 19.8% to $4.2 billion and net income soared 39.8% to $1.04 billion from $747 million and diluted earnings per share increased to $1.10 from 79 cents a year ago.
The company forecasted second quarter revenue of $4.28 billion with a band of $350 million, a sequential increase of 0.8%, and gross margin of 49.0% with a band of 200 basis points.
American Airlines Group increased 1.5% to $12.93 after the international airline reported mixed quarterly results.
Revenue in the first quarter increased 37% to $12.2 billion and the company swung to a net income of $10 million from a loss of $1.6 billion and diluted earnings per share was 2 cents compared to ($2.52) a year ago.
Southwest Airlines Co declined 4.7% to $29.44 after the regional airlines reported wider loss in the first quarter following a negative revenue impact after the late December scheduling crisis that led to the cancellation of 16,000 flights.
Revenue in the first quarter increased 21.6% to $5.7 billion from $4.7 billion and net loss shrank to $159 million from $278 million and diluted loss per share shrank to 27 cents from 47 cents a year ago.
Teladoc Health Inc rose 5% to $27.02 after the telehealth platform operator lifted its revenue and adjusted earnings outlook for the year.
Revenue in the first quarter increased 11% to $629.2 million and net loss in the quarter dropped to $69 million from $6.7 billion and diluted loss per share fell to 42 cents to $41.58 a year ago.
In the first quarter of 2022, the company recorded a goodwill impairment charge of $6.6 billion.
The telemedicine company forecasted second quarter revenue between $635 million and $660 million and between $2.575 billion and $2.675 billion in the full-year 2023.
The company also estimated adjusted operating earnings between $60 million and $68 million in the second quarter and between $285 million and $325 million in the full-year 2023.
- Bridgette Randall
- 27 Apr, 2023
- Frankfurt
BASF SE declined 3.9% to €48.18 after the German chemical company reiterated its full-year 2023 outlook but highlighted growing macroeconomic uncertainty.
Barclays PLC advanced 3.8% to 159.72 pence after the U.K. based bank reported first quarter profit jumped 27% to £1.78 billion.
Total income in the first quarter increased 11% to £7.2 billion and profit attributable to shareholders increased to £1.8 billion from £1.4 billion and diluted earnings per share rose to 11.3 pence.
Net interest margin in the quarter increased to 3.18% from 2.62% a year ago.
Loan to deposit ratio from the previous quarter was stable at 73.0%.
Deutsche Bank AG increased 0.9% to €9.64 after Germany's largest bank reported its highest profit in a decade.
Deutsche Boerse AG declined 5.9% to €172.35 after the German stock exchange operator agreed to acquire Danish software and services provider SimCorp AS for 735 kroner per share or $4.3 billion in an all-cash offer.
Sim Corp AS soared 38.3% to DKK 731.50 in Copenhagen trading.
Deutz AG increased 3.2% to €5.97 after the German engine maker expressed more confidence about the full-year 2023 results.
Consolidated revenue in the first quarter increased 15.5% to €517 million from €447.9 million in the quarter a year ago.
The company estimated EBIT, before exceptional items, €32 million compared to €15.8 million a year ago, above the market expectation of €27.9 million.
New orders in the quarter increased 3% to €526 million from €509.6 million a year ago and the company estimated full-year revenue between €1.7 billion and €1.9 billion and engine deliveries between 175,000 and 195,000.
Hellofresh SE soared 6.5% to €26.88 after the meal-kit provider reported a smaller-than-expected decline in its core earnings.
The meal preparation kit provider said first quarter revenue increased 5.3% to €2.02 billion from €1.92 billion a year ago.
Active customers decreased 4.8% from a year ago but rose fractionally from the fourth quarter to 8.1 million and average order per customer held at 4.0.
The company reiterated its revenue growth in constant currency between 2% and 10% and adjusted operating earnings between €460 million and €540 million.
STMicroelectronics NV declined 4.2% to €40.45 after the Switzerland-based advanced electronics company announced quarterly results ahead of market expectations.
The company said revenue in the first quarter increased 19.8% to $4.2 billion and net income soared 39.8% to $1.04 billion from $747 million and diluted earnings per share increased to $1.10 from 79 cents a year ago.
The company forecasted second quarter revenue of $4.28 billion with a band of $350 million, a sequential increase of 0.8%, and gross margin of 49.0% with a band of 200 basis points.
Schneider Electric SE increased 2.4% to €155.60 after the French multinational company reported first quarter results and lifted its 2023 outlook.
Revenue in the first quarter increased 12.3% to €8.5 billion, driven by 34.2% increase in sales in North America to €2.4 billion and 13.2% increase to €1.6 billion in Western Europe.
Unilever PLC gained 1.9% to 4,455.0 pence after the consumer products maker reported higher-than-expected first quarter sales despite the worries of higher prices.
Weir Group Plc decreased 1.0% to 1,874.0 pence after the Scottish engineering company reiterated its 2023 outlook.
- Bridgette Randall
- 27 Apr, 2023
- Frankfurt
The European markets struggled to advance and investors reviewed a slew of corporate earnings amid renewed concerns for the banking sector.
The latest batch of corporate results showed better-than-expected earnings from STMicroelectronics, BBBVA, Deutsche Bank and Barclays and Unilever.
Despite the stronger-than-expected corporate performance, investors worried about the rate path and looming economic slowdown in the quarters ahead.
Moreover, U.S. regional bank worries resurfaced after First Republic Bank sought additional capital from new equity and bond investors.
Investors also looked ahead to the release of the U.S. GDP data today and the Price Consumption Expenditures Price Index, a wider measure of inflation, on Friday.
Economic Sentiment Index In Euro Area Improved In April
The economic sentiment indicator in the Euro Area improved to 99.3 in April from 99.2 in March, the European Commission reported Thursday.
The confidence indicator improved after service providers' confidence index increased to 10.5 from 9.6, consumer confidence index improved to -17.5 from -19.1 and traders to -1.0 from -1.5.
However, the confidence index among manufacturers declined to -2.6 from -0.5.
Inflation expectation index declined to 15.0, the lowest level of index since December 2020.
Spain's Jobless Rate Advanced
Spain's jobless rate rose to 13.26% in the first quarter ending in March from 12.87% in the last quarter ending in December, the National Statistics Institute reported Thursday.
The unemployment rate was 13.65% in the first quarter a year ago.
The number of unemployed people increased 103,800 to 3.128 million, while the number of employed declined 11,100 to 20.453 million.
The employment market expanded by 368,000 in the last twelve months, improving the participation rate.
The labor force participation rate was 58.55% in the first quarter compared to 58.52 in the fourth quarter of 2022.
Indexes & Yields
The DAX index increased 0.1% to 15,822.81, the CAC-40 index advanced 0.4% to 7,500.03 and the FTSE 100 index gained 0.06% to 7,858.00.
The yield on 10-year German Bunds eased to 2.41%, French bonds to 2.99%, the UK gilts to 3.73% and Italian bonds to 4.29%.
The euro hovered near a one-year high against the dollar as the U.S. economy faced banking turmoil.
The euro edged higher to $1.103, the British pound to $1.248 and the Swiss franc to 89.33 cents.
Brent crude rose 3 cents to $77.71 a barrel and the Dutch TTF natural gas increased 45 cents to €39.00 per MWh.
Stock Movers
Deutsche Bank increased 0.9% to €9.64 after Germany's largest bank reported its highest profit in a decade.
Barclays PLC advanced 3.8% to 159.72 pence after the U.K. based bank reported first quarter profit jumped 27% to £1.78 billion.
Unilever PLC gained 1.9% to 4,455.0 pence after the consumer products maker reported higher-than-expected first quarter sales despite the worries of higher prices.
STMicroelectronics NV declined 4.2% to €40.45 after the Netherlands-based advanced electronics company announced quarterly results ahead of market expectations.
Deutz AG increased 3.2% to €5.97 after the German engine maker expressed more confidence about the full-year 2023 results.
Schneider Electric SE increased 2.4% to €155.60 after the French multinational company reported first quarter results and lifted its 2023 outlook.
- Brian Turner
- 27 Apr, 2023
- New York City
In an effort to cool housing price inflation, Singapore hiked stamp duty for the buyers of second and third property and on those purchased by foreigners.
The stamp duty hike applies to all transactions completed on or after April 27, said the joint statement released by the Ministry of Finance, National Development Ministry and Monetary Authority of Singapore.
About 90% of property transactions in Singapore are by the first time home buyers, Singapore citizens and permanent residents,
Singapore citizens pay no stamp duty on the first property purchase and permanent residents are levied 5% charge but stamp duty on the purchases by foreign citizens was increased to 60% from 30%.
Stamp duty was increased to 20% from 17% for the second property purchased by Singapore citizens and to 30% from 25% for permanent residents.
Singapore authorities hoped that the third move to cool the housing market in the last 16 months will be more effective after prices accelerated in the recent months.
The government revised additional stamp duty in December 2021 and September 2022 but home prices continued to rise unabated amid shortage of residences and reliance on expats.
For the whole of 2022, prices of private residential properties increased 8.6%, compared with the 10.6% increase in 2021 and rentals of private residential properties increased 29.7% compared with 9.9% increase in 2021, according to the data released by the Singapore's Urban Redevelopment Authority.
- Barry Adams
- 26 Apr, 2023
- New York City
Benchmark indexes advanced on Wall Street after Microsoft-powered tech rally lifted broader averages.
Big tech earnings dominated market sentiment and investors will have first chance to react to positive earnings from several companies including Boeing, Chipotle Mexican Grill and CoStar Group.
Despite the gloom and doom reported in financial media, publicly listed large and medium-sized corporations are reporting healthier quarterly results.
Microsoft revenue rose on the back of intelligent cloud segment revenue surge but the sales of Windows and Office products struggled with the weakness in personal computer markets.
Google's parent Alphabet also reported better-than-expected revenues despite weakness in advertising but cloud and other segment revenues supported the quarterly results.
Boeing reported mixed quarterly results and reaffirmed its 2023 outlook and Chipotle Mexican Grill quarterly earnings doubled on the back of new stores and price hikes.
Enphase Energy Inc plunged 25% after the solar energy company reported weaker-than-expected earnings and also forecasted second quarter sales between $700 million and $750 million, lower than expected.
On the economic front, mortgage applications rebounded and durable goods order rebounded in March on the back of a 78% surge in civilian aircraft orders.
But non-defense orders for capital goods, generally considered as a proxy for business spending, declined 0.4%.
International trade deficit declined and wholesale and retail inventories rose from the previous month, according to the preliminary data from the U.S. Census Bureau released on Wednesday.
International trade deficit declined 8.1% or $7.4 billion to $84.6 billion in March after goods exports rose $4.9 billion to $172.7 billion and goods imports fell $2.5 billion to $257.3 billion.
investors are awaiting release of GDP data on Thursday and Personal Consumption Expenditure Price Index on Friday.
Mortgage Applications Rebounded
Mortgage applications increased 3.7% in the week ended April 21, rebounding from an 8.8% decline in the previous week, Mortgage Bankers Association reported Wednesday.
Mortgage application for the home purchase increased 4.6% and refinance advanced 1.7% in the period.
Mortgage rates increased for the second week in a row and touched to a one-month high on the expectations that the Federal Reserve will increase rate at its meeting next week.
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances of $726,200 or less increased 12 basis points to 6.55%, following a 13 bps rise in the previous week.
Indexes & Yields
The S&P 500 index futures decreased 0.3% to 4,057.75 and the Nasdaq Composite index futures advanced 0.5% to 11,869.91.
The yield on 2-year Treasury notes inched up to 3.92%, 10-year Treasury notes rose to 3.42% and 30-year Treasury bonds held at 3.67%.
Crude oil fell 34 cents to $76.71 a barrel and natural gas prices eased a fraction to $2.33 a thermal unit.
Stock Movers
Microsoft Corp jumped 7.9% to $297.50 after the company said revenue in the March quarter increased 7% to $52.9 billion, driven by the jump in cloud segment revenue.
Cloud segment revenue increased $22.1 billion, productivity and business processes increased 11% to $17.5 billion and personal computing segment decreased 9% to $13.3 billion. Microsoft search and news advertising revenue excluding traffic acquisition costs increased 10% but Windows OEM revenue plunged 28%.
Net income increased to $18.3 billion from $16.7 billion and diluted earnings per share advanced to $2.45 from $2.22 a year ago.
Microsoft returned $9.7 billion to shareholders in the form of share repurchases and dividends in the third quarter of fiscal year 2023.
Alphabet Inc declined 1% to $102.80 after the parent of Google said revenue in the first quarter ending in March rose 3% to $69.8 billion, sharply slower than the 23% increase in the quarter a year ago.
Net income in the quarter fell to $15.1 billion from $16.4 billion and diluted earnings per share eased $1.17 from $1.23 a year ago.
Google advertising, which includes Google search, network ad YouTube ads, edged slightly lower to $54.5 billion from $54.7 billion and cloud ads increased to $7.4 billion from $5.8 billion a year ago.
Chipotle Mexican Grill, Inc rose 7.6% to $1,915.0 after the fast food chain operator reported higher earnings driven by new stores and price increases.
Total revenue in the first quarter increased 17.2% to $2.4 billion and comparable restaurant sales advanced 10.9%.
Net income increased to $291.6 million from $158.3 million and diluted earnings per share rose to $10.50 from $5.59 a year ago.
CoStar Group Inc rose 0.4% to $68.75 after the real estate information services provider reported higher revenue and bookings in the first quarter.
Revenue in the first quarter increased 13% to $584 million and net income declined to $87 million from $89 million and diluted earnings per share fell to 21 cents from 23 cents a year ago.
European Markets Turn Lower On Economic Growth Worries
European markets traded down on economic worries despite improving corporate performance in the region.
Market indexes were on the defensive for the second week in a row on the worries that higher interest rates and slowing business activities may negatively impact corporate earnings.
The latest batch of earnings suggested positive performance from companies in France, Germany and the UK.
The forward looking German consumer sentiment index improved to -25.7 for May from the revised prior reading of 29.3 in April, GfK Institute's data showed Wednesday.
The consumer sentiment was the highest since April 2022, reflecting higher income expectations and sharply lower energy inflation.
Indexes & Yields
The DAX index decreased 0.5% to 15,795.73, the CAC-40 index dropped 0.8% to 7,466.66 and the FTSE 100 index declined 0.5% to 7,852.46.
The yield on 10-year German Bunds eased to 2.34%, French bonds to 2.92%, the UK gilts to 3.68% and Italian bonds to 4.23%.
The euro edged higher to $1.10, the British pound to $1.246 and the Swiss franc to 88.91 cents.
Brent crude fell $2.43 to $78.43 a barrel and the Dutch TTF natural gas fell €1.38 to €38.55 per MWh.
Stock Movers
Danone SA increased 1% to €61.04 after the French yogurt and food products maker lifted its 2023 sales outlook.
Dassault Systemes SE dropped 7.8% to €34.51 despite the French software company reporting quarterly results that matched market expectations.
Orange SA increased 1.9% to €11.66 after the French mobile telecom operator reported rising sales in the first quarter and the company reiterated its 2023 sales outlook.
Safran SA fell 2.2% to €138.90 despite the aerospace company reporting sales increase of 29.4% to €5.3 billion, mainly fueled by propulsion and aircraft Interiors activities.
As a part of its stock repurchase program for 9.4 million shares, the company has acquired 6.9 million shares and announced its plan to acquire €350 million of its shares between April 11 and June 9.
Standard Chartered Plc rose 1.4% to 629.0 pence after the UK-based bank reported pre-tax profit in the first quarter increased 23%.
Operating revenue in the first quarter rose 8% to $4.4 billion and pre-tax income rose to $1.7 billion from $1.4 billion and net interest margin increased 5 basis points to 1.63%.
- Brian Turner
- 26 Apr, 2023
- New York City
International trade deficit declined and wholesale and retail inventories rose from the previous month, according to the preliminary data from the U.S. Census Bureau released on Wednesday.
International trade deficit declined 8.1% or $7.4 billion to $84.6 billion in March after goods exports rose $4.9 billion to $172.7 billion and goods imports fell $2.5 billion to $257.3 billion.
Wholesale inventories for March, adjusted for seasonal variations and trading day differences, but not for price changes, increased 0.1% from the previous month and rose 9.3% from a year ago to $919.9 billion.
Retail inventories for March, adjusted for seasonal variations and trading day differences, but not for price changes, rose 0.7% from the previous month and advanced 8.4% to $773.4 billion.