- Barry Adams
- 13 Dec, 2022
- New York City
Stocks advanced on Wall Street after November inflation cooled and raised the prospect of a lesser hawkish stance from the Federal Reserve Bank.
Consumer prices rose at a slower pace in November after energy prices dropped sharply but housing inflation remained elevated.
Core rate of inflation also slowed, raising the prospect of a moderate interest rate increase on Wednesday.
Markets are widely anticipating rate increase moderation at the conclusion of a two-day meeting of the Federal Reserve's policy committee on Wednesday.
Despite the cooling of inflation in November, inflation is still significantly above the Fed's preferred rate of 2.0%.
Moreover, the last four rate hikes have had no meaningful impact on inflation and the Fed's fight against rapid price increases may continue for a while.
The yield on 2-year Treasury notes declined sharply to a 3-month low of 4.21%, 10-year Treasury notes fell to 3.50% and 30-year U.S. bonds dropped to 3.54%.
Market Indexes Trim Earlier Gains
Tech stocks led the market advance on the hopes that future rate hikes may be moderate after inflation cooled in November.
The S&P 500 index soared 0.7% to 4,019.65 and the Nasdaq Composite index jumped 1.01% to 11,256.81.
Oil and Natural Gas Rebounds
Crude oil prices in New York and London rose amid optimism about China's easing of mobility restrictions and unwinding of stringent isolation requirements for coronavirus infected patients.
Crude oil increased $1.88 to $75.05 a barrel and natural gas futures added 37 cents to $6.97 a thermal unit.
Consumer Inflation Eased In November
The Consumer Price Index increased 7.1% in November from a year ago and rose 0.1% from October, the U.S. Bureau of Labor Statistics reported Tuesday.
The monthly increase data are adjusted for seasonal factors but annual pace of change is unadjusted for seasonal variations.
The annual pace of increase was the smallest 12-month increase since the period ending in December 2021.
The core inflation, excluding food and energy, slowed to 6.0% on an annual basis and eased to 0.2% on a monthly basis in November.
Despite the cooling of inflation, prices still rose at elevated levels after the decline in energy prices were offset by the increase in housing costs.
The energy index decreased 1.6% over the month as the gasoline index, the natural gas index, and the electricity index all declined.
The energy index increased 13.1% over the 12-month period.
The shelter increased at a slower pace of 0.6% over the month after rising 0.8% in October and slowed to 7.1% increase on an annual basis.
U.S. Stock Movers
Oracle Corporation rose 2.7% to $83.43 after the database developer said revenue in the fiscal 2023 second quarter rose 18% to $12.3 billion.
The company swung to a net income of $1.7 billion from a loss of $1.2 billion or 63 cents from 46 cents loss a share a year ago.
Boeing Company rose 1.2% to $188.52 after United Airlines placed an order to purchase 200 jet planes with an option to acquire more planes in future.
United Airlines said it plans to purchase 100 787 Boeing Dreamliners and 100 Boeing 737 Max jets as the company replaces its aging fleet.
The order is worth $43 billion at list prices.
Cryptocurrencies and Assets Under Pressure
Cryptocurrencies and publicly listed companies were in focus after the Bahamas police arrested the former chief executive of the fallen crypto exchange FTX at the request of federal prosecutors in New York.
Sam Bankman Fried faces criminal charges including defrauding investors and wire fraud charges and a separate set of charges from the U.S. Securities and Exchange Commission.
In addition, the U.S. regulators charged SBF with misappropriating client assets, making illegal political donations and in all eight criminal charges.
The 30-year old founder of the crypto exchange was denied bail in the Bahamas and he told a judge in the Bahamas that he was not waiving his right to fight extradition to the U.S.
Coinbase Global declined 1.1% to $42.15 and the Bitcoin and other cryptocurrencies rose between 2% and 4%.
Robinhood Markets increased 1.1% to $9.69.
Binance, the rival crypto exchange, has seen withdrawal requests of as much as $1.9 billion in the last 24 hours, blockchain data tracker Nansen said on Tuesday.
Rate Moderation Hopes Lift Europe Indexes
Market averages in Europe soared following the easing of inflation in the U.S. and resource stocks advanced amid optimism about China's unwinding of coronavirus restrictions.
Benchmark indexes shot up after the consumer prices in November rose at a slower pace of 7.1% in November following 7.7% in October, the U.S. Bureau of Labor Statistics reported Wednesday.
Monthly rate of inflation eased to 0.1% in November from 0.4% in October after energy prices declined, food inflation moderated but housing prices remained elevated.
The inflation cooled more than expected stoking optimism that the U.S. Federal Reserve may moderate its rate hike to 50 basis points after the end of the policy meeting tomorrow and the European Central Bank may also moderate its rate hike to 50 basis points on Thursday.
The bond yields traded down and the euro and the British pound rebounded to multi-month highs.
The 10-year German Bund yield declined to 1.918%, French bonds dropped to 2.39%, the UK gilts eased to 3.304% and Italian bonds inched lower to 3.804%.
The euro rebounded to the level last seen in mid-June and traded up to $1.645 and the British pound gained to close at $1.235.
Europe Market Indexes Soar
European market indexes advanced on the hopes of rate moderation by the Federal Reserve and the Bank of England tomorrow and the European Central Bank on Thursday.
The DAX index increased 1.3% to 14,497.89, the CAC-40 index added 1.4% to 6,744.98 and the FTSE 100 index advanced 0.7% to 7,502.89.
German Consumer Price Inflation Eases
Consumer price index in Germany eased to 10.0% in November from 10.4% in October, the Federal Statistics Office said Tuesday.
"Despite a slight easing in energy prices, the inflation rate remains at a high level of +0.0%," says Dr. Georg Thiel, President of the Federal Statistical Office.
- Bridgette Randall
- 13 Dec, 2022
- Frankfurt
Market averages in Europe soared following the easing of inflation in the U.S. and resource stocks advanced amid optimism about China's unwinding of coronavirus restrictions.
Benchmark indexes shot up after the consumer prices in November rose at a slower pace of 7.1% in November following 7.7% in October, the U.S. Bureau of Labor Statistics reported Wednesday.
Monthly rate of inflation eased to 0.1% in November from 0.4% in October after energy prices declined, food inflation moderated but housing prices remained elevated.
The inflation cooled more than expected stoking optimism that the U.S. Federal Reserve may moderate its rate hike to 50 basis points after the end of the policy meeting tomorrow and the European Central Bank may also moderate its rate hike to 50 basis points on Thursday.
The bond yields traded down and the euro and the British pound rebounded to multi-month highs.
The 10-year German Bund yield declined to 1.918%, French bonds dropped to 2.39%, the UK gilts eased to 3.304% and Italian bonds inched lower to 3.804%.
The euro rebounded to the level last seen in mid-June and traded up to $1.645 and the British pound gained to close at $1.235.
Europe Market Indexes Soar
European market indexes advanced on the hopes of rate moderation by the Federal Reserve and the Bank of England tomorrow and the European Central Bank on Thursday.
The DAX index increased 1.3% to 14,497.89, the CAC-40 index added 1.4% to 6,744.98 and the FTSE 100 index advanced 0.7% to 7,502.89.
German Consumer Price Inflation Eases
Consumer price index in Germany eased to 10.0% in November from 10.4% in October, the Federal Statistics Office said Tuesday.
"Despite a slight easing in energy prices, the inflation rate remains at a high level of +0.0%," says Dr. Georg Thiel, President of the Federal Statistical Office.
- Scott Peters
- 13 Dec, 2022
- New York City
Oracle Corporation rose 2.7% to $83.43 after the database developer said revenue in the fiscal 2023 second quarter rose 18% to $12.3 billion.
The company swung to a net income of $1.7 billion from a loss of $1.2 billion or 63 cents from 46 cents loss a share a year ago.
Boeing Company rose 1.2% to $188.52 after United Airlines placed an order to purchase 200 jet planes with an option to acquire more planes in future.
United Airlines said it plans to purchase 100 787 Boeing Dreamliners and 100 Boeing 737 Max jets as the company replaces its aging fleet.
The order is worth $43 billion at list prices.
Cryptocurrencies and publicly listed companies were in focus after The Bahamas police arrested the former chief executive of the fallen crypto exchange FTX.
Sam Bankman Fried faces criminal charges including defrauding investors and wire fraud charges and a separate set of charges from the U.S. Securities and Exchange Commission.
Coinbase Global declined 1.1% to $42.15 and the Bitcoin and other cryptocurrencies rose between 2% and 4%.
Robinhood Markets increased 1.1% to $9.69.
Energy stocks traded higher after crude oil prices and natural gas prices rebounded.
Crude oil price jumped $2.17 to $75.34 a barrel and Brent crude oil increased $2.60 to $80.59 a barrel amid optimism about China's reopening.
Natural gas prices increased 44 cents to $7.03 a thermal unit and the Dutch TTF natural gas futures rose to
- Barry Adams
- 13 Dec, 2022
- New York City
Stocks soared on Wall Street after November inflation was smaller than expected, lifting hopes of a smaller rate hike tomorrow.
Consumer prices rose at a slower pace in November after energy prices plunged sharply but cost of housing remained elevated.
Core rate of inflation also slowed, raising the prospect of a moderate interest rate increase on Wednesday.
The yield on 2-year Treasury notes declined sharply to a 3-month low of 4.20%, 10-year Treasury notes fell to 3.45% and 30-year U.S. bonds dropped to 3.49%.
Market Indexes Jump 2%
Tech stocks led the market advance on the hopes that future rate hikes may be moderate after inflation cooled in November.
The S&P 500 index soared 2.0% to 4,068.52 and the Nasdaq Composite index jumped 2.7% to 11,426.24.
Oil and Natural Gas Rebounds
Crude oil prices in New York and London rose amid optimism about China's easing of mobility restrictions and unwinding of stringent isolation requirements for coronavirus infected patients.
Crude oil increased $1.42 to $74.58 a barrel and natural gas futures added 46 cents to $7.04 a thermal unit.
Consumer Inflation Eases In November
The Consumer Price Index increased 7.1% in November from a year ago and rose 0.1% from October, the U.S. Bureau of Labor Statistics reported Tuesday.
The monthly increase data are adjusted for seasonal factors but annual pace of change is unadjusted for seasonal variations.
The annual pace of increase was the smallest 12-month increase since the period ending in December 2021.
The core inflation, excluding food and energy, slowed to 6.0% on an annual basis and eased to 0.2% on a monthly basis in November.
Despite the cooling of inflation, prices still rose at elevated levels after the decline in energy prices were offset by the increase in housing costs.
The energy index decreased 1.6% over the month as the gasoline index, the natural gas index, and the electricity index all declined.
The energy index increased 13.1% over the 12-month period.
The shelter increased at a slower pace of 0.6% over the month after rising 0.8% in October and slowed to 7.1% increase on an annual basis.
U.S. Stock Movers
Oracle Corporation rose 2.7% to $83.43 after the database developer said revenue in the fiscal 2023 second quarter rose 18% to $12.3 billion.
The company swung to a net income of $1.7 billion from a loss of $1.2 billion or 63 cents from 46 cents loss a share a year ago.
Boeing Company rose 1.2% to $188.52 after United Airlines placed an order to purchase 200 jet planes with an option to acquire more planes in future.
United Airlines said it plans to purchase 100 787 Boeing Dreamliners and 100 Boeing 737 Max jets as the company replaces its aging fleet.
The order is worth $43 billion at list prices.
Cryptocurrencies and publicly listed companies were in focus after The Bahamas police arrested the former chief executive of the fallen crypto exchange FTX.
Sam Bankman Fried faces criminal charges including defrauding investors and wire fraud charges and a separate set of charges from the U.S. Securities and Exchange Commission.
Coinbase Global declined 1.1% to $42.15 and the Bitcoin and other cryptocurrencies rose between 2% and 4%.
Robinhood Markets increased 1.1% to $9.69.
- Barry Adams
- 13 Dec, 2022
- New York City
The Consumer Price Index increased 7.1% in November from a year ago and rose 0.1% from October, the U.S. Bureau of Labor Statistics reported Tuesday.
The monthly increase data are adjusted for seasonal factors but annual pace of change is unadjusted for seasonal variations.
The annual pace of increase was the smallest 12-month increase since the period ending in December 2021.
The core inflation, excluding food and energy, slowed to 6.0% on an annual basis and eased to 0.2% on a monthly basis in November.
Despite the cooling of inflation, prices still rose at elevated levels after the decline in energy prices were offset by the increase in housing costs.
The energy index decreased 1.6% over the month as the gasoline index, the natural gas index, and the electricity index all declined.
The energy index increased 13.1% over the 12-month period.
The shelter increased at a slower pace of 0.6% over the month after rising 0.8% in October and slowed to 7.1% increase on an annual basis.
- Barry Adams
- 12 Dec, 2022
- New York City
Major averages closed higher and investors awaited the consumer price inflation data tomorrow and the Fed's rate decision on Wednesday.
Investors were cautiously optimistic and are estimating consumer prices to ease in November to between 7.3% and 7.5%, following the increase of 7.7% in October.
Weaker energy prices and a sharp drop in shipping costs are likely to help in moderating inflation but service sector and shelter expenses are expected to rise faster than in October.
The Federal Reserve is also set to moderate its rate hike on Wednesday and investors are looking for more clues on the health of the economy after the two-day meeting.
The European Central Bank is also expected to announce its rate decision on Thursday and investors are hoping that the next rate hike will be 50 basis points.
U.S. Budget Deficit Soared 30% In November
The U.S. government budget deficit widened by 30% to a record $249 billion from $191 billion in October, the U.S. Treasury said Monday.
Total receipts from a year ago declined 10% to $252 billion and total outlays increased 6% to $501 billion.
For the fiscal year 2023, total receipts are expected to be to $4.4732 trillion and total outlays are estimated at $6.032 trillion resulting in a budget deficit of $1.299 trillion.
Revenue from individual income taxes are expected to be about $2.444 trillion and corporate taxes about $509.27 billion.
The Department of Defense and military programs are estimated to cost $781.09 billion and interest on treasury debt securities is estimated at $767.248 billion.
The Social Security Administration is expected to pay out $1.407 trillion in benefits against the total retirement receipts of $1.5 trillion.
Consumer Inflation Expectations Ease
The latest survey from the New York Federal Reserve showed inflation expectation for the year ahead declined to 5.2% in November from 5.9% in October.
The survey also indicated 3-year ahead inflation expectation declined to 3% and 5-year expectation fell to 2.3%.
Market Indexes Advance
Market indexes traded in a tight trading range ahead of rate decisions from the U.S. Federal Reserve, the Bank of England and the European Central Bank later in the week.
Investors are also confronting global economic slowdown in the face of a rising rate environment.
The S&P 500 index increased 1.4% to 3,990.56 and the Nasdaq Composite index added 1.3% to 11,143.74.
Crude Oil Rebounded On China optimism
Crude oil prices in New York and London rebounded after mobility restrictions were eased further in several cities in China.
Crude oil market remained on the edge after the European Union placed a price cap of $60 a barrel transported using oil tankers registered in the region.
Crude oil edged up $2.51 to $73.51 a barrel and natural gas futures increased 50 cents to $6.50 a thermal unit.
The yield on 2-year Treasury notes inched up to 4.39%, 10-year Treasury notes edged up to 3.61% and 30-year U.S. bonds advanced to 3.58%.
U.S. Stock Movers
Horizon Therapeutics Plc increased 15.1% to $112.0 after the company agreed to be acquired by Amgen for $116.50 a share or $27.8 billion.
Coupa Software Inc increased 26.7% to $78.69 after the software developer agreed to a $81 a share or $8 billion offer from the private equity manager Thoma Bravo.
Weber Inc jumped 23.3% to $8.03 after the maker of grills and cooking ranges agreed to be acquired by BDT Capital Partners for $8.05 a share of $2.32 billion.
Rivian Automotive Inc declined 3.8% to $26.26 after the company halted its plan to make electric vans in partnership with Mercedes Benz in Europe and the company plans to save its capital resource ahead of market uncertainties.
Microsoft Corp increased 1.8% to $248.19 after the company struck a 10-year "partnership deal" with the London Stock Exchange Group and took nearly a 4% stake in the U.K.-based exchange.
The joint statement from the two companies said the LSE will spend about $2.8 billion over the 10-year period for cloud computing services and operate under Microsoft's Azure environment.
The exchange operator acquired Refinitiv in a $27 billion deal with a private equity group led by Blackstone.
Boeing Company jumped 3.8% to $186.27 after the company is expected to ink a deal with the recently privatized Air India for 150 737 Max jets and purchase 350 jets from Airbus and acquire in all 500 planes.
European Markets Down Ahead of Rate Decisions
European markets traded lower ahead of rate decisions from several central banks amid rising economic slowdown and rate path worries.
Benchmark indexes in the region traded lower and energy prices edged lower as markets awaited rate decisions from the U.S. Federal Reserve and the Bank of England on Wednesday and from the European Central Bank on Thursday.
All three central banks are expected to moderate rate hikes and markets are widely anticipating rate increases of 50 basis points.
In the final bout of deal making ahead the year's end merger news also dominated news flow.
The DAX index decreased 0.4% to 14,306.63, the CAC-40 index fell 0.4% to 6,650.55 and the FTSE 100 index declined 0.4% to 7,445.97.
Brent crude oil rose $1.98 to $77.98 a barrel and the Dutch TTF natural gas futures for immediate month delivery eased 1.8% to
- Brian Turner
- 12 Dec, 2022
- New York City
The U.S. government budget deficit widened by 30% to a record $249 billion from $191 billion in October, the U.S. Treasury said Monday.
Total receipts from a year ago declined 10% to $252 billion and total outlays increased 6% to $501 billion.
For the fiscal year 2023, total receipts are expected to be to $4.4732 trillion and total outlays are estimated at $6.032 trillion resulting in budget deficit of $1.299 trillion.
Revenue from individual income taxes are expected to be about $2.444 trillion and corporate taxes about $509.27 billion.
The Department of Defense and military programs are estimated to cost $781.09 billion and interest on treasury debt securities is estimated at $767.248 billion.
Social Security Administration is expected to pay out $1.407 trillion in benefits against the total retirement receipts of $1.5 trillion.
- Bridgette Randall
- 12 Dec, 2022
- Frankfurt
European markets traded lower ahead of rate decisions from several central banks amid rising economic slowdown and rate path worries.
Benchmark indexes in the region traded lower and energy prices edged lower as markets awaited rate decisions from the U.S. Federal Reserve and the Bank of England on Wednesday and from the European Central Bank on Thursday.
All three central banks are expected to moderate rate hikes and markets are widely anticipating rate increases of 50 basis points.
In the final bout of deal making ahead the year's end merger news also dominated news flow.
The DAX index decreased 0.4% to 14,306.63, the CAC-40 index fell 0.4% to 6,650.55 and the FTSE 100 index declined 0.4% to 7,445.97.
Brent crude oil rose $1.98 to $77.98 a barrel and the Dutch TTF natural gas futures for immediate month delivery eased 1.8% to
- Scott Peters
- 12 Dec, 2022
- New York City
Horizon Therapeutics Plc increased 15.1% to $112.0 after the company agreed to be acquired by Amgen for $116.50 a share or $27.8 billion.
Coupa Software Inc increased 26.7% to $78.69 after the software developer agreed to a $81 a share or $8 billion offer from the private equity manager Thoma Bravo.
Weber Inc jumped 23.3% to $8.03 after the maker of grills and cooking ranges agreed to be acquired by BDT Capital Partners for $8.05 a share of $2.32 billion.
Rivian Automotive Inc declined 3.8% to $26.26 after the company halted its plan to make electric vans in partnership with Mercedes Benz in Europe and the company plans to save its capital resource ahead of market uncertainties.
Microsoft Corp increased 1.8% to $248.19 after the company struck a 10-year "partnership deal" with the London Stock Exchange Group and took nearly a 4% stake in the U.K.-based exchange.
The joint statement from the two companies said the LSE will spend about $2.8 billion over the 10-year period for cloud computing services and operate under Microsoft's Azure environment.
The exchange operator acquired Refinitiv in a $27 billion deal with a private equity group led by Blackstone.
- 12 Dec, 2022