- Barry Adams
- 10 Nov, 2022
- New York City
Benchmark indexes soared, gold advanced, Treasury yields fell and the U.S. dollar inched lower after inflation fell in October.
The slight cooling of inflation lifted hopes that the Federal Reserve may not have to lift rate at a rapid pace.
Benchmark indexes surged the most since April 2020 after the beaten down tech stocks led the gainers.
Consumer Price Inflation Slows to 0.4%
Consumer price index in October rose at a slower pace than expected but remained elevated.
The CPI index increased 0.4% from September and advanced at a slower pace of 7.7% from a year ago, the U.S. Bureau of Labor Statistics reported Thursday.
The inflation rose at the slowest pace in January and the annual pace of increase slowed from 8.2% in September.
The increase in goods prices have slowed in recent months but services prices continue to rise at a rapid pace and inflation remains stubbornly high.
The index for shelter (or equivalent to rent or home ownership) contributed to half of the monthly gain and the index for gasoline and food continued to rise.
The consumer price inflation, excluding food and energy, slowed to 0.3% in the month from 0.5% rate in September and eased to 6.3% from 6.5% rate in the previous month.
The yield on 2-year Treasury notes eased to 4.33%, 10-year Treasury notes fell to 3.81% and 30-year Treasury bonds inched lower to 4.05%.
Gold Advances, Dollar Eases
precious metals rose after the dollar fell against major currencies.
Gold surged 2.9% or $50.60 to $1,756.91 an ounce and silver added 3.4% to $21.73 an ounce.
The euro traded up to $1.02 and the UK pound inched up to $1.17.
Crude oil rose 57 cents to $86.40 a barrel and natural gas futures rose 27 cents to $6.14 a thermal unit.
U.S. Movers
Stocks surged and benchmark indexes jumped the most in two years after consumer price inflation eased and raise the prospect of peaking inflation.
The S&P 500 index soared 5.5% to 3,956.37 and the Nasdaq Composite index surged 7.4% to 11,114.15.
Among widely held stocks, Apple, Amazon, Facebook parent Meta, Microsoft and Tesla soared between 7% and 11%.
Semiconductor stocks also participated in the market rally and Lam Research and KLA Corp, Intel and AMD soared between 12% and 6%.
Resource sector stocks also advanced after gold and silver rebounded and the U.S. dollar edged lower.
Barrick Gold and Newmont Corporation surged more than 7%.
ZipRecruiter jumped 15.8% to $16.88 after the online jobs site operator reported better-than-expected quarterly results and expanded its stock repurchase program.
Revenue in the third quarter increased 7% to $227.0 million from $212.6 million a year ago.
Net income in the quarter declined to $20.6 million from $22.0 million and diluted earnings per share was unchanged at 17 cents.
The company announced a stock repurchase program of $200 million in addition to the previously announced $250 million.
As of September 30, 2022, the remaining amount available to repurchase under the previously authorized share repurchase program was $49.9 million, the company noted in its earnings release.
Rivian Automotive Inc soared 16.9% to $32.82 after the company reported smaller-than-expected loss and reiterated its annual production target despite ongoing supply chain challenges.
Third quarter net loss declined to $288 million from $1.23 billion and diluted loss per share fell to $1.88 from $12.21 a year ago.
FTX Meltdown
The cryptocurrency exchange FTX is facing a liquidity crisis that may lead to the demise of the company that was valued at $32 billion at the beginning of 2022.
Rival cryptocurrency exchange Binance decided to not bid for the company after conducting initial due diligence of the company's finances and ownership structure.
Silicon Valley based Sequoia also said in a tweet that it has marked down its $215 million investment in FTX to zero.
- Scott Peters
- 10 Nov, 2022
- New York City
Bumble Inc increased 4.4% to $21.87 after the dating site operator reported weaker-than-anticipated third quarter results and said customers are renewing subscriptions at a slower pace.
Third quarter revenue increased 16.8% to $232.6 million from $199.1 million a year ago, including $14.0 million foreign exchange translation adjustments.
The company swung to a profit of $26.4 million from a loss of $10.4 million and diluted earnings per share was 14 cents compared to a loss of 6 cents a year ago.
Total paid subscribers increased to 3.3 million from 2.9 million a year ago and average revenue per user increased to $22.96 from $22.81.
The company guided fourth quarter revenue in the range of $232 million to $237 million, including upwardly revised foreign exchange loss by $6 million to $16 million.
Dutch Bros Inc soared 13.5% to $33.10 after the company said third quarter revenue soared 53.% to $198.6 million from $129.8 million a year ago.
The company swung to a net income of $1.6 million from a net loss of $116.8 million and diluted earnings per share was 3 cents from a loss of 24 cents a year ago.
The company revised higher its full-year sales to be at least $725 million and reiterated flat same store sales growth.
The company plans to open 130 new locations in 2022 and estimated 150 in 2023.
Rivian Automotive Inc soared 16.9% to $32.82 after the company reported smaller-than-expected loss and reiterated its annual production target despite ongoing supply chain challenges.
Third quarter net loss declined to $288 million from $1.23 billion and diluted loss per share fell to $1.88 from $12.21 a year ago.
Six Flags Entertainment Corp gained 13.3% to $21.68 and the stocks dropped in early trading after the company reported weak quarterly results.
Stock rebounded after the company amended a cooperation agreement with H Partners to permit the investment company to increase its beneficial interest to 19.9% from 14.9% in the original agreement.
Third quarter revenue declined 21% to $505 million from $638 million a year ago.
Net income dropped to $116 from $157 million and diluted earnings per share declined to $1.39 from $1.82 a year ago.
In the quarter, park attendance plunged 33% to 8.0 million from 12.0 million a year ago and total guest spending, including admission and in-park, increased 17% to $60.96 from $52.02.
Tapestry Inc advanced 2.5% to $32.02 after the fashion brands Kate Spade and Coach owner reported better-than-expected quarterly results.
Revenue in the fiscal first quarter ending on October 2, 2020 was nearly flat at $1.5 billion from $1.48 billion a year ago.
Net income in the period dropped to $195.3 million from $226.9 million and diluted earnings per share fell to 79 cents from 80 cents a year ago.
The company trimmed its annual outlook citing Covid-19 restrictions in China and rising dollar.
WeWork fell 1.9% to $2.38 after the shared workspace operator reported wider-than-expected loss.
Revenue in the third quarter increased 24% to $817 million from $667 million a year ago.
Net loss in the quarter shrank to $568 million from $802 million and diluted loss per share fell to 75 cents from $5.50 a year ago.
Occupancy rate in the quarter was 71% and the company added 7,000 workstations and 8,000 physical memberships.
ZipRecruiter jumped 15.8% to $16.88 after the online jobs site operator reported better-than-expected quarterly results and expanded its stock repurchase program.
Revenue in the third quarter increased 7% to $227.0 million from $212.6 million a year ago.
Net income in the quarter declined to $20.6 million from $22.0 million and diluted earnings per share was unchanged at 17 cents.
The company announced a stock repurchase program of $200 million in addition to the previously announced $250 million.
As of September 30, 2022, the remaining amount available to repurchase under the previously authorized share repurchase program was $49.9 million, the company noted in its earnings release.
- Brian Turner
- 10 Nov, 2022
- New York City
Consumer price index in October rose at a slower pace than expected but remained elevated.
The CPI index increased 0.4% from September and advanced at a slower pace of 7.7% from a year ago, the U.S. Bureau of Labor Statistics reported Thursday.
The inflation rose at the slowest pace in January and the annual pace of increase slowed from 8.2% in September.
The increase in goods prices have slowed in recent months but services prices continue to rise at a rapid pace and inflation remains stubbornly high.
The index for shelter (or equivalent to rent or home ownership) contributed to half of the monthly gain and the index for gasoline and food continued to rise.
The consumer price inflation, excluding food and energy, slowed to 0.3% in the month from 0.5% rate in September and eased to 6.3% from 6.5% rate in the previous month.
- Brian Turner
- 10 Nov, 2022
- New York City
U.S. initial jobless claims rose 7,000 to 225,000 for the week ending November 5, the Department of Labor reported Thursday.
In the week, on a seasonally adjusted basis claims gained 19,054 to 205,027.
The 4-week moving average decreased 250 to 218,750 from the previous week's upwardly revised average by 250 to 219,000.
Despite the benign initial jobless claims numbers, data from several states are likely to understate the unemployed.
Florida, Georgia and New Jersey states have struggled for months in providing access to reliable and fully functional unemployment claims filing systems.
Many unemployed workers have not been able to file online claims, especially in Florida, with login glitches and password errors rooted in third party verification systems that have yet to work since the onset of the coronavirus pandemic nearly two years ago.
- 10 Nov, 2022
- Barry Adams
- 10 Nov, 2022
- New York City
Stocks point to higher opening after the latest consumer inflation data showed a decline in monthly and annual pace.
Consumer price index in October rose at a slower pace than expected but remained elevated.
The CPI index increased 0.4% from September and advanced at a slower pace of 7.7% from a year ago, the U.S. Bureau of Labor Statistics reported Thursday.
The inflation rose at the slowest pace in January and the annual pace of increase slowed from 8.2% in September.
The increase in goods prices have slowed in recent months but services prices continue to rise at a rapid pace and inflation remains stubbornly high.
The index for shelter (or equivalent to rent or home ownership) contributed to half of the monthly gain and the index for gasoline and food continued to rise.
The consumer price inflation, excluding food and energy, slowed to 0.3% in the month from 0.5% rate in September and eased to 6.3% from 6.5% rate in the previous month.
Crude oil declined 48 cents to $85.34 a barrel and natural gas futures rose 9 cents to $5.96 a thermal unit.
The yield on 2-year Treasury notes eased to 4.06%, 10-year Treasury notes fell to 4.60% and 30-year Treasury bonds inched lower to 4.28%.
The cryptocurrency exchange FTX is facing a liquidity crisis that may lead to the demise of the company that was valued at $32 billion at the beginning of 2022.
Rival cryptocurrency exchange Binance decided to not bid for the company after conducting initial due diligence of the company's finances and ownership structure.
Silicon Valley based Sequoia also said in a tweet that it has marked down its $215 million investment in FTX to zero.
- Barry Adams
- 09 Nov, 2022
- New York City
Stocks on Wall Street fell after midterm elections did not result in the "Red Wave" as expected by Republicans.
The expected Republican wave failed to materialize and dashed the hopes of a strong Republican majority in the House and significant gains in the Senate.
With several key races still not final, Republicans are expected to have less than a five-member majority in the House and may not win a majority control of the Senate.
The future of the Senate may not be decided for a month as the Georgia Senate race moves to a runoff.
Historically, the party in charge of the House and the Senate suffers losses in midterm elections.
However, Democratic Party voters appear to be more engaged and showed higher-than-usual election participation, hobbling the efforts of the Republican to gain control of both chambers of legislation.
Several extreme right candidates promoted by the former president Donald J Trump failed to win, jeopardizing Trump's platform and possible run for the 2024 presidential race.
The S&P 500 index declined 2.1% to 3,748.57 and the Nasdaq Composite index dropped 2.5% to 10,353.18.
Crude oil fell $3.10 to $85.81 a barrel and natural gas fell 20 cents to $5.93 a thermal unit.
Bond market took election results in stride and yields rebounded in the final hour and the market shifted its focus to the upcoming inflation data on Thursday.
The yield on 2-year Treasury notes declined to 4.58%, 10-year notes eased to 4.10% and 30-year bonds declined to 4.27%.
U.S. Movers
D R Horton Inc increased 2.6% to $75.19 after the homebuilder reported mixed quarterly results but backlog and unit home prices remained elevated.
In the fiscal fourth quarter ending in September, consolidated revenues increased 19% to $9.6 billion from $8.1 billion a year ago.
Net income in the quarter rose 22% to $1.6 billion from $1.3 billion and diluted earnings per share increased to $4.67 from $3.70 a year ago.
In the quarter, the company repurchased 3.6 million shares of common stock for $251.7 million.
The company's cancellation rate for fiscal 2022 was 21% compared to 17% a year ago and sales order backlog of homes under contract at the end of the quarter dropped 25% to 19,614 homes and 16% in value to $8.0 billion from 26,221 homes and $9.5 billion a year ago.
Hanesbrands Inc declined 8.6% to $6.48 after the company reported lower-than-expected results.
Net sales in the quarter declined 6.6% to $1.67 billion from $1.79 billion a year ago.
Net income plunged to $80.1 million from $151.8 million and diluted earnings per share dropped to 23 cents from 43 cents a year ago.
The company did not repurchase any shares in the third quarter and has approximately $575 million remaining under its current repurchase authorization.
The company's board declared a quarterly dividend of 15 cents a share to shareholders on record on November 22 and paid on December 13, 2022.
The company estimated fourth quarter revenue between $1.40 billion and $1.45 billion, including $68 million of foreign exchange losses, representing a 19%revenue decline from a year ago.
Meta Platforms jumped 6.8% to $102.94 after the company said it plans to layoff more than 11,000 workers.
Meta employs about 87.000 around the world and CEO Mark Zuckerberg said in a letter to employees his growth expectations were too high and the company needs to recalibrate its costs.
"I
- Scott Peters
- 09 Nov, 2022
- New York City
D R Horton Inc increased 2.6% to $75.19 after the homebuilder reported mixed quarterly results but backlog and unit home prices remained elevated.
In the fiscal fourth quarter ending in September, consolidated revenues increased 19% to $9.6 billion from $8.1 billion a year ago.
Net income in the quarter rose 22% to $1.6 billion from $1.3 billion and diluted earnings per share increased to $4.67 from $3.70 a year ago.
In the quarter, the company repurchased 3.6 million shares of common stock for $251.7 million.
The company's cancellation rate for fiscal 2022 was 21% compared to 17% a year ago and sales order backlog of homes under contract at the end of the quarter dropped 25% to 19,614 homes and 16% in value to $8.0 billion from 26,221 homes and $9.5 billion a year ago.
Hanesbrands Inc declined 8.6% to $6.48 after the company reported lower-than-expected results.
Net sales in the quarter declined 6.6% to $1.67 billion from $1.79 billion a year ago.
Net income plunged to $80.1 million from $151.8 million and diluted earnings per share dropped to 23 cents from 43 cents a year ago.
The company did not repurchase any shares in the third quarter and has approximately $575 million remaining under its current repurchase authorization.
The company's board declared a quarterly dividend of 15 cents a share to shareholders on record on November 22 and paid on December 13, 2022.
The company estimated fourth quarter revenue between $1.40 billion and $1.45 billion, including $68 million of foreign exchange losses, representing a 19%revenue decline from a year ago.
Meta Platforms jumped 6.8% to $102.94 after the company said it plans to layoff more than 11,000 workers.
Meta employs about 87.000 around the world and CEO Mark Zuckerberg said in a letter to employees his growth expectations were too high and the company needs to recalibrate its costs.
"I
- Bridgette Randall
- 09 Nov, 2022
- Frankfurt
European markets lacked direction and bond yields in the region stayed elevated.
On the economic front, Romania and Slovakia trade deficits widened after imports rose at a faster pace than exports on higher energy costs.
Romania's trade deficit in September rose to
- Barry Adams
- 09 Nov, 2022
- New York City
Stocks on Wall Street fell after midterm elections results showed tight races for the U.S. Senate and the U.S. House.
The expected Republican wave failed to materialize and dashed the hopes of a strong Republican majority in the House and significant gains in the Senate.
With several key races still not declared, Republicans are expected to have less than a five-member majority in the House and may not win a majority control of the Senate.
Historically, the party in charge of the House and the Senate suffers losses in midterm elections. However, Democratic Party voters appear to be more engaged and showed higher-than-usual election participation.
Several extreme right candidates promoted by the former president Donald J Trump failed to win, jeopardizing Trump's platform and possible run for the 2024 presidential race.
The S&P 500 index declined 0.9% to 3,794.09 and the Nasdaq Composite index dropped 1.1% to 10,498.02.
Crude oil fell $1.55 to $87.30 a barrel and natural gas fell 33 cents to $5.77 a thermal unit.
Bond market took election results in stride and traded sideways and shifted focus to the upcoming inflation data on Thursday.
The yield on 2-year Treasury notes declined to 4.66%, 10-year notes eased to 4.48% and 30-year bonds declined to 4.26%.
Meta Platforms jumped 6.8% to $102.94 after the company said it plans to layoff more than 11,000 workers.
Meta employs about 87.000 around the world and CEO Mark Zuckerberg said in a letter to employees his growth expectations were too high and the company needs to recalibrate its costs.
Walt Disney Company dropped 11.2% to $88.70 after the company missed its earnings expectations for its fiscal fourth quarter.
Roblox Corp dropped 13.04% to $34.01 after the video game developer reported a larger-than-expected third quarter loss of 50 cents a share and net bookings of $702 million were ahead of expectations.
- Barry Adams
- 08 Nov, 2022
- New York City
Major averages closed higher and bond yields stable but the U.S. dollar eased.
Investors bid up stocks in choppy trading on the hopes that the midterm elections may swing power balance to Republicans and the divided government may slow federal government spending.
The S&P 500 index inched up 0.6% to 3,828.11 and the Nasdaq Composite index increased 0.5% to 10,616.20.
Crude oil prices dropped more than 3% and natural gas futures plunged 10% on the worries that additional lockdowns in China may dampen demand.
Crude oil edged down $2.28 to $88.81 a barrel and natural gas declined 75 cents to $6.119 a thermal unit.
U.S. Treasury bonds edged lower ahead of the inflation data scheduled to be released on Thursday.
Investors are anticipating the consumer price inflation index to rise at least 0.7% on a monthly basis in October and jump 8.1% from a year ago.
The inflation is rapidly spreading in the services sector of the economy and prices are still rising at a rapid pace.
The yield on 2-year Treasury notes inched lower to 4.65%, 10-year Treasury notes edged down to 4.12% and 30-year Treasury bonds fell to 4.27%.
U.S. Stock Movers
Kohl's Corporation jumped 7.6% to $28.89 after the struggling retailer said third quarter sales declined 2% on 6.9% fall in comparable store sales.
The retailer said CEO Michelle Gass is leaving the company from Dec 2 and the board member Tom Kingsbury will serve as interim CEO.
Lyft Inc plunged 20% after the ride-sharing company reported weaker-than-expected revenue.
Third quarter revenue increased 22% to $1.05 billion but net loss widened to $422.2 million from $99.7 million a year ago and active rider growth fell to the slowest pace in seven quarters to 7.2% to 20.3 million.
Norwegian Cruise Line Holdings rose 3.6% to $17.28 after the company reported smaller-than-expected loss in its latest quarter.
The cruise company said third quarter revenue increased to $1.6 billion from $1.5 billion from a year ago.
In the quarter, net loss shrank to $295.4 million from $856.8 million and diluted loss per share fell to 70 cents from $2.29 a year ago.
The company said 2023 revenues are likely to match 2019 levels but at "significantly higher pricing."
Take Two Interactive declined 13.6% to $93.57 after the company lowered its annual outlook for online bookings and estimated a loss.
The online interactive game developer said revenue in the September quarter rose 62% to $1.39 billion from $858 million a year ago.
The company swung to a net loss of $257 million from $10.2 million and diluted earnings per share were a loss of $1.54 from 9 cents a year ago.
The company said net bookings in the December quarter are estimated between $1.41 billion and $1.46 billion, lower than $1.5 billion in the September quarter.
The interactive video game company lowered its net bookings for the year in the range of $5.4 billion and $5.5 billion citing foreign exchange headwinds and macroeconomic uncertainties.
The company also estimated net loss for the year ending in March 2023 in the range between $674 million and $631 million reflecting diluted loss per share $4.22 or $3.95.
Tesla Inc fell 3.0% to $191.28 after the company said it is voluntarily recalling Model S and X produced between 2017 and 2021 to fix the sudden loss of assisted power steering.
Tesla disclosed the filings with the National Highway Traffic Safety Administration released Tuesday.
The recall is estimated to cover 40,168 vehicles.
Tripadvisor Inc plunged 17.3% to $19.31 after the company reported weaker-than-anticipated quarterly results.
Third quarter revenue increased 51% to $459 million from $303 million from a year ago. The quarterly revenue reached 107% of 2019 levels.
Net income rose to $25 million from $1 million and diluted earnings per share increased to 17 cents from 1 cent a year ago.
The company cited a strong demand trend to continue in the fourth quarter and estimated revenue to increase in the low-single digit from 2019 levels.
European Markets Close Up In Cautious Trading
Stocks lacked direction in European trading after energy prices inched lower and currencies were under pressure.
Eurozone retail sales rose 0.4% on a monthly basis in September, according to the latest data from Eurostat.
The DAX index increased 0.6% to 13,612.68, the CAC-40 index traded higher 0.01% to 6,417.46 and the FTSE 100 index edged down 0.04% to 7,297.68.
The euro traded up to $1.001 but the British pound declined 0.3% to $1.147.
The yield on 10-year German Bunds declined to 2.29%, French bonds edged down to 2.80%, British bonds dropped to 3.58% and Italian bonds fell to 4.39%.
Brent crude oil declined 37 cents to $97.31 a barrel and TTF natural gas rose 5% to 116.32 euros a MWh.
Europe Movers
Associated British Foods rose 2.8% to 1,468.74 pence after the Primark owner said annual profit increased 45% to