- Barry Adams
- 30 Nov, 2022
- New York City
Market indexes jumped following morning doldrums after comments from the Fed Chairman indicated rate hikes may be moderated at the next policy meeting in December.
"Monetary policy affects the economy and inflation with uncertain lags, and the full effects of our rapid tightening so far are yet to be felt.
Thus, it makes sense to moderate the pace of our rate increases as we approach the level of restraint that will be sufficient to bring inflation down.
The time for moderating the pace of rate increases may come as soon as the December meeting," said Chairman Jay Powell in a speech Wednesday.
However, Powell cautioned that rates may have to go higher for a longer period than previously anticipated and stay higher to keep the rates sufficiently restrictive and bring down inflation to the target rate of 2%.
Q3 GDP Growth Revised Higher
U.S. economic growth in the third quarter was revised higher to 2.9% from the previous estimate of 2.6%, the U.S. Bureau of Economic Analysis reported Wednesday.
The international trade contribution was revised higher to 2.93 percentage points from 2.77 percentage points in the advance estimate after exports rose and imports shrank more than estimated.
Consumer spending growth was revised higher to 1.7% from the previous estimate of 1.4%.
Job Openings Fall In October
The number of job openings fell by 353,000 to 10.3 million in October, JOLT report from the U.S. Bureau of Labor Statistics showed Wednesday.
The number of hires were nearly unchanged at 6.0 million and separations were stable at 5.7 million.
Of the total separations in October, 4.0 million employees quit and layoffs and discharges were 1.7 million.
Mortgage Applications Ease
Mortgage application volume declined 0.8% in the week ending on November 25 from the previous, the Mortgage Bankers Association reported Wednesday.
The seasonally adjusted data included the observance of Thanksgiving holiday and application volume plunged 33% on an unadjusted basis.
The Refinance Index decreased 13% from the previous week and was 86% lower than the same week a year ago.
Mortgage rates declined to 6.49% from 6.67% in the previous week for 30-year fixed loans with 20% down payment.
Markets Lack Direction Amid Mixed Signals
Stocks lacked direction after economic growth was revised higher, job openings fell and mortgage applications declined.
The S&P 500 index increased 1.7% to 4,025.34 and the Nasdaq Composite index increased 2.8% to 11,297.19.
Crude oil prices rose $2.0 to $81.19 a barrel and natural gas prices eased 34 cents to $6.88 a thermal unit.
The yield on 2-year U.S. Treasury notes rose to 4.49%, 10-year Treasury notes increased to 3.69% and 30-year U.S. Treasury bonds advanced to 3.81%.
Stock Movers
Petco Health & Wellness Company Inc soared 13.9% to $10.81 after the retailer of pet food and products reported better-than-expected quarterly results.
Same store sales in its latest quarter increased 4.1% and net revenue in the fiscal third quarter ending in October rose 4.0% to $1.5 billion.
Net income declined 62% to $19.9 million from $52.7 million and diluted earnings per share fell to 7 cents from 20 cents a year ago.
DoorDash Inc increased 7.7% to $57.43 after the company CEO Tony XU said it plans to layoff 1,250 corporate staff amid economic slowdown and the need to cut costs.
The company employed about 8,600 at the end of 2021 and about 50% of its staff has been with the company less than two years, according to the filings with the SEC.
Crowdstrike Holdings Inc plunged 16.6% to $115.16 after the cybersecurity company reported higher-than-expected sales and earnings in its latest quarter.
However, the company guided weaker-than-expected revenue growth.
- Arjun Pandit
- 30 Nov, 2022
- Mumbai
Asian markets closed mostly higher despite weak manufacturing data from China and rising Covid-infections.
Official manufacturing purchasing managers index decreased to 48.0 in November from 49.2 in October, while the non-manufacturing or service PMI eased to 48.0 from 49.2, separate reports from the National Bureau of Statistics showed Wednesday.
The Nikkei 225 average declined 0.2% 27,968.99 and extended losses for the fourth session in a row after industrial production data showed ongoing supply chain problems.
Industrial production declined 2.6% in October from the previous month but rose 3.7% from a year ago, the Ministry of Economy, Trade and Industry said Wednesday.
Hong Kong's Hang Seng index advanced 2.16% to 18,597.23, following a 5.2% increase in the previous session and Shanghai Composite Index increased 1.59 points to 3,151.34.
The Japanese yen traded down to 139.43 and the Chinese renminbi closed down at 7.08 against the U.S. dollar.
The rupee edged slightly higher to ?81.41 against the U.S. dollar and the yield on the Indian government bonds declined to 7.28%
The widely followed two indexes in India closed at new record highs on the hopes that the surge in government spending will sustain the economic expansion in the current and next fiscal year.
The Sensex closed up 417.81 points or 0.67% to 63,303.01 and the Nifty index gained 140.30 points or 0.75% to 18,758.35.
GDP in the September quarter slowed to 6.3% from 13.5% in the June quarter and 8.4% from a year ago, the National Statistical Office data showed Wednesday.
- Barry Adams
- 29 Nov, 2022
- New York City
Stocks on Wall Street lacked direction and closed down as investors shifted focus from corporate earnings to upcoming economic data releases.
Investors are awaiting JOLT report on and look for clues how the labor market is holding up after several aggressive rate hikes and November payrolls on Friday.
Inflation data are scheduled to be released on Thursday and the PCE price index is expected to increase at least 6.0% for October month from a year ago.
Investors are also looking ahead to reviewing Federal Reserve Chairman Jay Powell's two scheduled speeches on Wednesday.
The S&P 500 index decreased 0.2% to 3,957.63 and the Nasdaq Composite index fell 0.6% to 10,983.78.
Hibbett Inc declined 11.5% to $59.80 after the sporting goods retailer posted weaker-than-expected earnings on higher costs.
Crude Oil Advances On China Buzz and OPEC Cut Hopes
China said it plans to accelerate vaccination of senior citizens and relax stringent lock down measures, health authorities reported today.
Over the weekend a string of protests in many cities and on university campuses against zero-Covid policies spread across China, demanding Chinese authorities to find ways to coexist with the highly infectious coronavirus.
Crude oil prices rose on speculation that China's relaxation of zero-Covid policy may revive the import of crude oil and on hopes that oil producing nations may announce a production cut at its next meeting on December 4.
Crude oil increased $1.74 to $78.94 and natural gas increased 8 cents to $7.28 a thermal unit.
U.S. Treasury Yields Inch Higher
The yield on 2-year U.S. Treasury notes increased to 4.48%, 10-year U.S. Treasury notes edged higher to 3.74% and 30-year Treasury bonds traded at 3.80%.
U.S. Home Price Growth Slows
Home prices declined for the third month in a row in September, S&P CoreLogic Case Shiller National index showed today.
Higher mortgage rates played a key role in lowering price appreciation and home prices eased in September 0.8% from the previous month.
From a year ago, single-family home prices rose 10.6%, slower than 12.9% in August across the nation.
The 20-city composite index showed price increase slowed to 10.4% from 12.6% in August.
Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in September.
Miami led the way with a 24.6% year-over-year price increase, followed by Tampa in second with a 23.8% increase, and Charlotte in third with a 17.8% increase.
All 20 cities reported lower price increases in the year ending September 2022 versus the year ending August 2022.
European Markets Struggle to Advance
European markets opened on an optimistic note but struggled to advance.
Stocks rebounded in early trading across Europe after China reported a slight decline in daily infection rates.
Chinese health authorities also laid out a plan to increase vaccination for senior citizens and review measures to ease stricter lock downs.
China also offered more financial incentives for the struggling property sector, lifting benchmark indexes in Hong Kong by 5% and Shanghai by 2.4%.
Inflation data from Germany and Spain showed a slight decline from the previous month, but remained near 4-decade high levels.
Germany's Inflation Hovers Near Record High
The consumer price index in Germany eased to 10.0% in November from the record 10.4% in October, significantly higher than 2.0% target rate set by the ECB.
Spain's Inflation Eases
The consumer price index in Spain increased at a 6.8% annual pace in November, slower than the 7.3% rise in October, the data from the statistical office INE showed Tuesday.
The CPI slowed for the fourth month in a row after reaching a high of 10.8% in July.
Unlike Germany and the UK, Spain avoided the energy crisis with the help of significant regasification capacity and larger footprint of renewable energy.
Swiss GDP Growth Slows
The Swiss economy expanded at a slower pace in the third quarter ending in September, the State Secretariat for Economic Affairs in Bern said Tuesday.
GDP expanded at an annual pace of 0.5% in the third quarter after rising at 2.2% annual pace in the second quarter.
Third quarter expansion was driven by the 0.7% increase in household consumption despite the elevated inflation but slower than the 1.1% increase in the previous quarter.
Turkish Trade Deficit Widens
The Turkish trade deficit rose in October to $7.4 billion from $4.3 billion a year ago but declined from $9.6 billion a year ago, the Turkish Statistical Institute said Tuesday.
Market Indexes
The DAX index decreased 0.2% to 14,355.45, the CAC-40 index increased 3.37 points to 6,668.97 and the FTSE 100 index added 0.5% to 7,512.00.
Brent crude oil was unchanged at $83.10 a barrel and Dutch TTF natural gas price increased 7.3% to 132.29 euros a MWh.
The euro edged down to $1.032 and the British Pound inched lower to $1.194.
Europe Stock Movers
HSBC Holdings soared 3.6% to 507.56 pence after the British bank said it agreed to sell its Canada business for $10 billion to Royal Bank of Canada.
HSBC has been looking to trim down its expenses in the U.S. and also sell its non-core assets.
The bank plans to distribute proceeds of the Canada business sales through a special dividend to shareholders.
Vodafone Group was nearly unchanged at 92.84 pence after the British telecom group launched a buyback offer up to $2.3 billion of its 4.375% notes due in May 2028.
Brenntag SE declined 2.4% to
- Bridgette Randall
- 29 Nov, 2022
- Frankfurt
European markets opened on an optimistic note but struggled to advance.
Stocks rebounded in early trading across Europe after China reported a slight decline in daily infection rates.
Chinese health authorities also laid out a plan to increase vaccination for senior citizens and review measures to ease stricter lock downs.
China also offered more financial incentives for the struggling property sector, lifting benchmark indexes in Hong Kong by 5% and Shanghai by 2.4%.
Inflation data from Germany and Spain showed a slight decline from the previous month, but remained near 4-decade high levels.
Germany's Inflation Hovers Near Record High
The consumer price index in Germany eased to 10.0% in November from the record 10.4% in October, significantly higher than 2.0% target rate set by the ECB.
Spain's Inflation Eases
The consumer price index in Spain increased at a 6.8% annual pace in November, slower than the 7.3% rise in October, the data from the statistical office INE showed Tuesday.
The CPI slowed for the fourth month in a row after reaching a high of 10.8% in July.
Unlike Germany and the UK, Spain avoided the energy crisis with the help of significant regasification capacity and larger footprint of renewable energy.
Swiss GDP Growth Slows
The Swiss economy expanded at a slower pace in the third quarter ending in September, the State Secretariat for Economic Affairs in Bern said Tuesday.
GDP expanded at an annual pace of 0.5% in the third quarter after rising at 2.2% annual pace in the second quarter.
Third quarter expansion was driven by the 0.7% increase in household consumption despite the elevated inflation but slower than the 1.1% increase in the previous quarter.
Turkish Trade Deficit Widens
The Turkish trade deficit rose in October to $7.4 billion from $4.3 billion a year ago but declined from $9.6 billion a year ago, the Turkish Statistical Institute said Tuesday.
Market Indexes
The DAX index decreased 0.2% to 14,355.45, the CAC-40 index increased 3.37 points to 6,668.97 and the FTSE 100 index added 0.5% to 7,512.00.
Brent crude oil was unchanged at $83.10 a barrel and Dutch TTF natural gas price increased 7.3% to 132.29 euros a MWh.
The euro edged down to $1.032 and the British Pound inched lower to $1.194.
Stock Movers
HSBC Holdings soared 3.6% to 507.56 pence after the British bank said it agreed to sell its Canada business for $10 billion to Royal Bank of Canada.
HSBC has been looking to trim down its expenses in the U.S. and also sell its non-core assets.
The bank plans to distribute proceeds of the Canada business sales through a special dividend to shareholders.
Vodafone Group was nearly unchanged at 92.84 pence after the British telecom group launched a buyback offer up to $2.3 billion of its 4.375% notes due in May 2028.
Brenntag SE declined 2.4% to
- Brian Turner
- 29 Nov, 2022
- New York City
Home prices declined for the third month in a row in September, S&P CoreLogic Case Shiller National index showed today.
Higher mortgage rates played a key role in lowering price appreciation and home prices eased in September 0.8% from the previous month.
From a year ago, single-family home prices rose 10.6%, slower than 12.9% in August across the nation.
The 20-city composite index showed price increase slowed to 10.4% from 12.6% in August.
Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in September.
Miami led the way with a 24.6% year-over-year price increase, followed by Tampa in second with a 23.8% increase, and Charlotte in third with a 17.8% increase.
All 20 cities reported lower price increases in the year ending September 2022 versus the year ending August 2022.
- Barry Adams
- 29 Nov, 2022
- New York City
Stocks on Wall Street traded lower for the second day this week after investors shifted focus to interest rate path and inflation data.
Inflation data are scheduled to be released on Thursday and the PCE price index is expected to increase at least 6.0% for October month from a year ago.
The S&P 500 index decreased 0.2% to 3,955.43 and the Nasdaq Composite index fell 0.4% to 11,007.61.
China said it plans to accelerate vaccination of senior citizens and relax stringent lock down measures, health authorities reported today.
Over the weekend a string of protests spread to in many cities and on university campuses against zero-Covid policies, Chinese authorities plan to find ways to coexist with the highly infectious coronavirus.
Crude oil prices rose on speculation that China's relaxation of zero-Covid policy may revive the import of crude oil and on hopes that oil producing nations may announce a production cut at its next meeting on December 4.
Crude oil increased 84 cents to $78.02 and natural gas was unchanged at $7.20 a thermal unit.
The yield on 2-year U.S. Treasury notes increased to 4.47%, 10-year U.S. Treasury notes edged higher to 3.73% and 30-year Treasury bonds traded at 3.78%.
Home Price Growth Slows
Home prices declined for the third month in a row in September, S&P CoreLogic Case Shiller National index showed today.
Higher mortgage rates played a key role in lowering price appreciation and home prices eased in September 0.8% from the previous month.
From a year ago, single-family home prices rose 10.6%, slower than 12.9% in August across the nation.
The 20-city composite index showed price increase slowed to 10.4% from 12.6% in August.
Miami, Tampa, and Charlotte reported the highest year-over-year gains among the 20 cities in September.
Miami led the way with a 24.6% year-over-year price increase, followed by Tampa in second with a 23.8% increase, and Charlotte in third with a 17.8% increase.
All 20 cities reported lower price increases in the year ending September 2022 versus the year ending August 2022.
- Barry Adams
- 28 Nov, 2022
- New York City
Global markets sold off after protests spread to more cities in China sparking fear of a government crackdown and destabilizing the second largest economy in the world.
Local authorities in China are struggling with the zero-Covid policy implementation and anger is mounting across the nation after months of lockdowns in smaller cities.
About 400 million people in China are in various stages of lock down and sometimes a single infection in an apartment complex could force strict mobility restrictions on all residents.
Global companies are increasingly shifting manufacturing away from China as zero-Covid linked supply chains are likely to persist.
After three years of coronavirus pandemic, China, the only nation among large economies, is still struggling with rising infections.
Coronavirus infections rose to a daily high of 44,000 over the weekend, but reported deaths in China are still less than a handful.
Benchmark indexes opened lower and began to lose ground as the session advanced. Market indexes in the final hour accelerated the declines and closed near the lows of the session.
The S&P 500 index declined 1.5% to 3,963.94 and the Nasdaq Composite index dropped 1.6% to 11,049.50.
Crude oil rose 40 cents to $76.68 s barrel and natural gas declined $1.31 to $5.70 a thermal unit.
The yield on 2-year Treasury notes fell to 4.45%, 10-year Treasury notes eased to 3.68% and 30-year Treasury bonds inched lower to 3.73%.
Stock Movers
Apple Inc declined 2.2% to $144.94 on the worries that the growing unrest in China and at its main contractor Foxconn may create a shortage of iPhone Pro models.
iPhone shipments fell 17% to 8.4 million in October from Henan province, China's customs data showed on Thursday.
Foxconn's mega-complex is based in its capital city Zhengzhou, Henan province where thousands of employees are forced to stay in the factory compounds for more than two months.
Energy producers declined after WTI crude oil prices fell to a 11-month low on China-demand worries.
Exxon Mobil, Chevron, Marathon Oil, Valero, Occidental Petroleum, Hess and Baker Hughes declined between 1% and 3%.
Casino operators increased after China granted provisional licenses to keep operations running in gambling center Macau.
Las Vegas Sands, Wynn Resort, Melco and MGM gained between 0.5% and 6.5%.
Taboola.com Limited soared 47% to $2.70 after Yahoo agreed to acquire a minority stake of 26% in the advertising company.
Yahoo also signed a 30-year contract with Taboola to power its native advertising on all sites operated by the publishing company.
European Markets Decline, Lagarde Guides Higher Rates
European markets traded down led by weak resource sector stocks and growing anger against zero-Covid policy in China sparked a fresh wave of unrest.
Automakers led the decline amid rising fears that a Chinese government crackdown may impact operations and disrupt economic activities.
ECB President Christine Lagarde said inflation is high and has not peaked yet and the central bank is not through raising interest rates.
Lagarde was addressing lawmakers at the European Parliament's Committee on Economic Affairs.
Consumer price Inflation in the 19-member eurozone rose to 10.6% in October and Lagarde said there are too many uncertainties to determine when the inflationary forces are likely to recede.
The European Central Bank is expected to lift rates by at least 50 basis points following its next rate setting committee's meeting on December 15.
This year, the central bank ended net bond purchases and lifted rates three times in a row since July but interest rates at 2.0% are still considerably lagging inflation hovering above 10%.
The surge in core inflation was initially mainly supply driven factors, but the importance of demand factors increased over time as the economic activities picked up and the labor market remained tight.
Policymakers are also struggling with record spread in inflation rates in the currency union with France reporting the lowest rate 0f 7.1% and the rate of 22.5% in Estonia in October.
The DAX index fell 1.1% to 14,383.36, the CAC-40 index declined 0.7% to 6,665.20 and the FTSE 100 index dropped 0.2% to 7,474.02.
The benchmark Swiss Market Index closed down 5.87 points to 11,162.16.
Brent crude oil declined 30 cents to $83.30 a barrel and Dutch TTF natural gas eased 0.9% to 123.28 euros a MWh.
The euro edged down to $1.035 and the British pound extended recent gains to $1.197.
The yield in 10-year German Bunds increased to 1.99%, French bonds t0 2.66%, the U.K. Gilts to 3.12% and Italian bonds to 3.91%.
UK Automobile Production Rebounds
UK automakers production increased 7.4% in October reversing a 6.0% decline in September, the Society of Motor Manufacturers and Traders reported Friday.
Automobile production rose to 69,524 units but 48.4% below the pre-pandemic level of 134,669 units in October 2019.
Luxury automobile exports dominated the production rebound, with exports increasing 6.3% to 56,469 units and domestic sales rising 12.5% to 13,055.
For the year-to-date to October, automobile production declined 10.8% to 643,755 from 721,509 a year ago.
Europe Stock Movers
Brenntag fell 9.7% to
- Barry Adams
- 28 Nov, 2022
- New York City
Apple Inc declined 2.2% to $144.94 on the worries that the growing unrest in China and at its main contractor Foxconn may create a shortage of iPhone Pro models.
iPhone shipments fell 17% to 8.4 million in October from Henan province, China's customs data showed on Thursday.
Foxconn's mega-complex is based in its capital city Zhengzhou, Henan province where thousands of employees are forced to stay in the factory compounds for more than two months.
Energy producers declined after WTI crude oil prices fell to a 11-month low on China-demand worries.
Exxon Mobil, Chevron, Marathon Oil, Valero, Occidental Petroleum, Hess and Baker Hughes declined between 1% and 3%.
Casino operators increased after China granted provisional licenses to keep operation running in gambling center Macau.
Las Vegas Sands, Wynn Resort, Melco and MGM gained between 0.5% and 6.5%.
Taboola.com Limited soared 47% to $2.70 after Yahoo agreed to acquire a minority stake of 26% in the advertising company.
Yahoo also signed a 30-year contract with Taboola to power its native advertising on all sites operated by the publishing company.