- Barry Adams
- 12 Oct, 2022
- New York City
Stocks on Wall Street traded higher after the release of the wholesale inflation index and ahead of the consumer inflation data on Thursday.
The S&P 500 index gained 0.3% to 3,597.16 and the Nasdaq Composite index increased 0.2% to 10,448.43.
Diamondback Energy Inc increased 1.4% to $141.35 after the company agreed to acquire FireBird Energy for $1.6 billion in cash and stock.
The company said it has agreed to purchase all leasehold interest in 75,000 contiguous acres and related assets of FireBird in exchange for 5.86 million shares of its common stock and $775 million cash.
El Pollo Loco, Inc increased 14.2% to $10.38 after the company announced a special dividend of $1.50 a share and stock repurchase program of $20 million.
The special dividend is payable on November 9, 2022 to shareholders of record at the close of business on October 24, 2022.
Knowbe4 Inc increased 12.6% to $24.32 on the report that the company is close to finalizing a deal with Vista Equity to go private for $4.5 billion.
The news was first reported by the Wall Street Journal.
PepsiCo, Inc gained 3.8% to $169.0 after the snack and beverage maker reported revenue in the third quarter increased 8% to $21.97 billion and net income rose 22% to $2.7 billion.
The better-than-expected increase in sales was driven mostly by price increase in snacks business of as much as 20% and 2% decline in volume and flat volumes in its beverage unit and about 4% rise in prices.
Koninklijke Philips NV dropped 11.7% to $13.19 after the Dutch tech company said third quarter earnings are likely to drop as much as 60% and the company plans to take a one-time charge of $1.3 billion in its respiratory care unit.
United Airlines Holdings Inc scaled higher 0.5% to $34.12 after the company said it plans to expand its transatlantic travel network to more cities in summer 2023.
"In total, United will fly to 37 cities in Europe, Africa, India and the Middle East next summer, more destinations than all other U.S. airlines combined," the airline noted in a statement today.
- Brian Turner
- 12 Oct, 2022
- New York City
The producer price index increased 0.4% in September from the previous month and rose 8.5% from a year ago, the Bureau of Labor Statistics reported Wednesday.
Much of the inflation in the month was driven by 0.4% rise in service costs and travel and accommodation services jumped 6.4%.
Cost of goods rose 0.4% driven by a 15.7% jump in the index for fresh and dry vegetables.
The wholesale inflation, excluding food, energy and trade services increased 0.4% from August and jumped 5.6% from a year ago.
The elevated producer price is likely to provide another reason for the Fed to continue its large-sized rate hike at its next meeting scheduled in three weeks.
Closely watched consumer price index is scheduled to be released on Thursday.
The Federal Reserve has raised rates five times in the last six months yet there is no progress on inflation.
The Fed is widely expected to lift rates by 75 basis points at the next policy meeting ending on November 2.
- Barry Adams
- 12 Oct, 2022
- New York City
Stocks traded higher despite the elevated wholesale inflation and ahead of the consumer price inflation report on Thursday.
The producer price index increased 0.4% in September from the previous month and rose 8.5% from a year ago, the Bureau of Labor Statistics reported Wednesday.
Much of the inflation in the month was driven by 0.4% rise in service costs and travel and accommodation services jumped 6.4%.
Cost of goods rose 0.4% driven by a 15.7% jump in the index for fresh and dry vegetables.
The wholesale inflation, excluding food, energy and trade services increased 0.4% from August and jumped 5.6% from a year ago.
The elevated producer price is likely to provide another reason for the Fed to continue its large-sized rate hike at its next meeting scheduled in three weeks.
Closely watched consumer price index is scheduled to be released on Thursday.
The Federal Reserve has raised rates five times in the last six months yet there is no progress on inflation.
The Fed is widely expected to lift rates by 75 basis points at the next policy meeting ending on November 2.
The S&P 500 index added 0.3% to 3,598.41 and the Nasdaq Composite increased 0.4% to 10,468.19.
Crude oil declined $1. 52 to $87.79 a barrel and natural gas rose 4 cents to $6.63 a thermal unit.
The yield on 2-year Treasury notes advanced to 4.31%, 10-year Treasury notes advanced to 3.96% and 30-year bonds eased to 3.95%.
Stock Movers
PepsiCo, Inc gained 3.8% to $169.0 after the snack and beverage maker reported revenue in the third quarter increased 8% to $21.97 billion and net income rose 22% to $2.7 billion.
The better-than-expected increase in sales was driven mostly by price increase in snacks business of as much as 20% and 2% decline in volume and flat volumes in its beverage unit and about 4% rise in prices.
El Pollo Loco, Inc increased 14.2% to $10.38 after the company announced a special dividend of $1.50 a share and stock repurchase program of $20 million.
The special dividend is payable on November 9, 2022 to shareholders of record at the close of business on October 24, 2022.
European Markets Extend Losses
European markets traded lower as investors reacted to mixed economic data in the region and corporate news.
The DAX index fell 0.5% to 12,161.22, the CAC-40 index dropped 0.6% to 5,799.64 and the FTSE 100 index fell 1.1% to 6,811.91.
The euro declined to 97.01 U.S. cents and the British pound edged down to $1.101.
The Swiss franc traded down to 99.61 U.S. cents.
Koninklijke Philips NV dropped 12.3% to
- Barry Adams
- 11 Oct, 2022
- New York City
Benchmark indexes reversed morning gains and closed down ahead of the consumer price inflation report on Wednesday.
The S&P 500 index traded near the 2022 low and the Nasdaq Composite index dropped to a new low in the year and traded near the level last seen in July 2020.
Both indexes declined for the fifth day in a row and bond yields rose after the Bank of England Governor Andrew Bailey said that the emergency program in support of the bond market will stop on Friday as previously announced.
The S&P 500 index decreased 0.7% to 3,588.84 and the Nasdaq Composite index declined 1.1% to 10,426.19.
Crude oil futures for the immediate month declined $2.54 to $88.56 a barrel but natural gas rose 15 cents to $6.59 a thermal unit.
Lumber price jumped nearly 5% to close at $475 per thousand board feet, a three-week high but still remained down about 38% in the year so far.
Bond market was on the edge ahead of the inflation report, and the yields on short term maturities continued to outpace longer dated Treasury debts.
The yield on 2-year Treasury notes edged up to 4.31%, 10-year Treasury notes fell to 3.94% and 30-year Treasury bonds dropped to 3.92%.
Stock Movers
Tech stocks led the decliners on the worries that elevated inflation may support the Federal Reserve's case in lifting rates, depressing the value of future earnings.
Energy complex stocks also declined after crude oil fell 3.5% and traded near $87 a barrel.
Casino stocks were under pressure after China reimposed stringent mobility restrictions in mega cities after a week of national holiday following the flare of coronavirus in several provinces.
Las Vegas Sands Corp dropped 7.7% to $36.28 and Wynn Resorts Ltd plunged 8.3% to $58.80.
Leggett & Platt, Inc dropped 7.7% to $32.01 after the diversified manufacturing company lowered its full-year earnings and sales outlook citing macroeconomic headwinds.
Uber Technologies declined 11.1% to $24.45 and Lyft Inc dropped 12.8% to $11.17 after the Labor Department proposed a new rule that could lead to gig-workers reclassification as regular employees.
European Markets Extend Losses
European markets extended losses for the fifth day in a row on the rising tensions in Ukraine.
Investors are worried that the aggressive rate tightening is likely to depress corporate earnings and dip the economy into a recession and inflation may remain elevated longer than expected.
The DAX index declined 0.4% to 12,220.25, the CAC-40 index decreased 0.1% to 5,833.20 and the FTSE 100 index dropped 1.1% to 6,885.23.
The euro traded near 97.77 U.S. cents and the British pound closed at $1.117.
The yield on 10-year German government bonds rose to a 11-year high and the Bank of England expanded its bond market intervention to include inflation-linked bonds.
German bund yields rose after reports suggested that German Chancellor Olaf Scholz is prepared to back European Union-wide joint debt issuance to tackle the surging costs of energy imports.
G7 leaders conducted a virtual meeting and discuss additional steps after Russia stepped up its bombing across Ukraine following an attach on a bridge linking Ukraine and Crimea.
The yield on 10-year German bonds was nearly unchanged at 2.29%, French bonds closed down 2.885%, British Gilt at 4.41% and Italian bonds to 4.663%.
Brent crude oil declined 1.8% to $94.49 a barrel and TTF natural gas price edged up a fraction to 154.50 euros a megawatt hour.
British Pound Falls, Gilt Yields Rise
The British pound is expected to face more selling and the U.K. bond yields are likely to surge in Wednesday's trading after the BoE Governor Bailey said emergency bond purchase plan will end in three days as planned at a meeting in Washington.
The announcement gives pension fund managers three days to unwind positions held in the Liability Driven Funds management.
The Bank of England has been supporting long-dated UK government bonds through an emergency bond purchase program and keeping the yields lower and stable, however at a cost of about 65 billion pounds.
The program was put in place on Sept 28 and expanded on October 10th to a daily bond purchase limit of
- Barry Adams
- 11 Oct, 2022
- New York City
On Wall Street stocks traded sideways but accelerated losses in the final hour of trading ahead of the inflation report on Wednesday.
The S&P 500 index declined 0.8% to 3,580.06 and the Nasdaq Composite index dropped 1.5% to 10,377.83.
Tech stocks led the decliners on the worries that elevated inflation may support the Federal Reserve's case in lifting rates, thereby depressing the value of future earnings.
Energy complex stocks also declined after crude oil fell 3.5% and traded near $87 a barrel.
Casino stocks were under pressure after China reimposed stringent mobility restrictions in mega cities after a week of national holiday following the flare of coronavirus in several provinces.
Las Vegas Sands Corp dropped 7.7% to $36.28 and Wynn Resorts Ltd plunged 8.3% to $58.80.
Leggett & Platt, Inc dropped 7.7% to $32.01 after the diversified manufacturing company lowered its full-year earnings and sales outlook citing macroeconomic headwinds.
The company lowered its full-year revenue range between $5.1 billion and $5.2 billion from the previous estimate between $5.2 billion and $5.4 billion.
Earnings per share range estimate was revised lower to between $2.30 and $2.45 from the previous range between $2.65 and $2.80.
The company cited weaknesses in its specialty foam, automotive and international bedding businesses.
Walgreens Boots Alliance rose 2.3% to $32.58 after the pharmaceutical retailer agreed to acquire CareCentrix.
Walgreens acquired the remaining 45% stake in the post-acute and home care services provider for approximately $392 million, the price multiple agreed at the time of majority stake purchase on Aug 31, 2022.
The full acquisition is expected to close by March 2023.
Walgreens is also scheduled to release its latest quarterly earnings on Thursday.
Uber Technologies declined 11.1% to $24.45 and Lyft Inc dropped 12.8% to $11.17 after the Labor Department proposed a new rule that could lead to gig-workers classification as regular employees.
- Bridgette Randall
- 11 Oct, 2022
- Frankfurt
European markets extended losses for the fifth day in a row on the rising tensions in Ukraine.
Investors are worried that the aggressive rate tightening is likely to depress corporate earnings and dip the economy into a recession and inflation may remain elevated longer than expected.
The DAX index declined 0.4% to 12,220.25, the CAC-40 index decreased 0.1% to 5,833.20 and the FTSE 100 index dropped 1.1% to 6,885.23.
The euro traded near 97.77 U.S. cents and the British pound closed at $1.117.
The yield on 10-year German government bonds rose to a 11-year high and the Bank of England expanded its bond market intervention to include inflation-linked bonds.
German bund yields rose after reports suggested that German Chancellor Olaf Scholz is prepared to back European Union-wide joint debt issuance to tackle the surging costs of energy imports.
G7 leaders conducted a virtual meeting and discuss additional steps after Russia stepped up its bombing across Ukraine following an attach on a bridge linking Ukraine and Crimea.
The yield on 10-year German bonds was nearly unchanged at 2.29%, French bonds closed down 2.885%, British Gilt at 4.41% and Italian bonds to 4.663%.
Brent crude oil declined 1.8% to $94.49 a barrel and TTF natural gas price edged up a fraction to 154.50 euros a megawatt hour.
The UK jobless rate fell to the lowest level since 1974 after more people dropped out of the labor force and employers struggled to fill vacancies.
The UK jobless rate declined to 3.5% in the three months to August from 3.6% in the period to July, the data from the Office for National Statistics reported Tuesday.
- Arjun Pandit
- 11 Oct, 2022
- Mumbai
Asian markets traded lower reflecting a growing list of global worries, reflecting earnings anxieties and another Covid-19 virus flare in China.
Chinese authorities stepped up zero Covid-19 policy crack down as infections begin to rebound ahead of the gathering of Communist party leaders.
Chinese authorities imposed fresh lockdowns and restricted travel after Covid-19 cases rebounded at the end of Golden Week holiday.
Outbreaks have been reported in Inner Mongolia, Xinjiang and Shanxi provinces.
Communist Party leaders are scheduled to meet for its annual congress on October 16.
The Nikkei 225 average decreased 2.64% to 26,401.25 and the Topix index fell 1.86% to 1,871.24, after a 3-day weekend.
Tech stocks in China led the decliners after the U.S. tightened semiconductor technology and equipment sale restrictions.
The Shanghai index closed higher 0.2% to 2,979.79 after COSCO Shipping Holdings Co Ltd offered a positive outlook.
The benchmark indexes in India fell on the worries that the rising U.S. dollar will stoke worldwide inflation and slow down economic growth rate.
The Sensex closed down 843.79 points or 1.46 percent, to 57,147.32 and the Nifty index fell 257.45 points or 1.49% to 16,983.55.
The tech heavy Kospi average fell 1.83% to 2,192.07 following a 3-day holiday and investors turned cautious ahead of the U.S. consumer inflation data on Wednesday.
- Barry Adams
- 11 Oct, 2022
- New York City
Stocks on Wall Street in early trading struggled to trade above flat-line ahead of consumer inflation data on Wednesday.
The S&P 500 index increased 0.4% to 3,625.77 and the Nasdaq Composite index added 0.1% to 10,554.66.
Crude oil futures for the immediate month declined $1.59 to $89.50 a barrel but natural gas rose 10 cents to $6.54 a thermal unit.
The yield on 2-year Treasury notes decreased to 4.29%, 10-year Treasury notes fell to 3.89% and 30-year Treasury bonds dropped to 3.89%.
European Markets Extend Losses to 5th Day
European markets extended losses for the fourth day in a row on the rising tensions in Ukraine.
Investors are worried that the aggressive rate tightening is likely to depress corporate earnings and dip the economy into a recession and inflation may remain elevated longer than expected.
The DAX index declined 0.4% to 12,220.25, the CAC-40 index decreased 0.1% to 5,833.20 and the FTSE 100 index dropped 1.1% to 6,885.23.
The euro traded near 97.77 U.S. cents and the British pound closed at $1.117.
The yield on 10-year German government bonds rose to a 11-year high and the Bank of England expanded its bond market intervention to include inflation-linked bonds.
German bund yields rose after reports suggested that German Chancellor Olaf Scholz is prepared to back European Union-wide joint debt issuance to tackle the surging costs of energy imports.
G7 leaders conducted a virtual meeting and discuss additional steps after Russia stepped up its bombing across Ukraine following an attach on a bridge linking Ukraine and Crimea.
The yield on 10-year German bonds was nearly unchanged at 2.29%, French bonds closed down 2.885%, British Gilt at 4.41% and Italian bonds to 4.663%.
Brent crude oil declined 1.8% to $94.49 a barrel and TTF natural gas price edged up a fraction to 154.50 euros a megawatt hour.
The UK jobless rate fell to the lowest level since 1974 after more people dropped out of the labor force and employers struggled to fill vacancies.
The UK jobless rate declined to 3.5% in the three months to August from 3.6% in the period to July, the data from the Office for National Statistics reported Tuesday.
Asian Markets Look Down
Asian markets traded lower reflecting a growing list of global worries, reflecting earnings anxieties and another Covid-19 virus flare in China.
The Nikkei 225 average decreased 2.64% to 26,401.25 and the Topix index fell 1.86% to 1,871.24, after a 3-day weekend.
Tech stocks in China led the decliners after the U.S. tightened semiconductor technology and equipment sale restrictions.
The Shanghai index closed higher 0.2% to 2,979.79 after COSCO Shipping Holdings Co Ltd offered a positive outlook.
The benchmark indexes in India fell on the worries that the rising U.S. dollar will stoke worldwide inflation and slow down economic growth rate.
The Sensex closed down 843.79 points or 1.46 percent, to 57,147.32 and the Nifty index fell 257.45 points or 1.49% to 16,983.55.
The tech heavy Kospi average fell 1.83% to 2,192.07 following a 3-day holiday and investors turned cautious ahead of the U.S. consumer inflation data on Wednesday.
- Barry Adams
- 10 Oct, 2022
- New York City
U.S. stocks traded lower ahead of the busy week of economic data and the kickoff of the earnings season.
The dollar advanced for the fourth day in a row dragging major currencies around the world to multi-decade lows, reflecting a growing consensus that the Fed is set to lift rates at its next meeting in three weeks.
The Fed's policy committee is scheduled to announce its rate decision on November 2, and investors are anticipating a fourth rate hike in a row of 75 basis points.
Investors are also hoping that the September consumer price index data, scheduled to be released Thursday October 13, may show easing of inflation pressures.
Tech stocks led the decliners in trading on Wall Street on the worries that the Fed will continue its aggressive rate hike plan, even if the economy dips to a recession and the labor market loses steam.
The S&P 500 index fell 0.8% to 3,612.39 and the Nasdaq Composite declined 1.04% to 10,542.13.
The Nasdaq is trading near a two-year low as chipmakers dive after President Biden's administration imposed more controls on the export of technology and equipment to China.
Banks and financial services are in focus ahead of the start of the earnings season with Morgan Stanley, Goldman Sachs, JP Morgan Chase and Citigroup are scheduled to report this week.
Crude oil declined $1.90 to $90.73 and natural gas dropped 21 cents to $6.53 a thermal unit.
In Friday's trading, the yield on 2-year Treasury notes rose to 4.31%, 10-year Treasury notes jumped to 3.89% and 30-year bonds inched up to 3.84%.
U.S. bond market was closed for trading for Columbus Day holiday.
European Markets Erase Morning Losses
European markets lacked direction in early trading and turned weaker after the indexes in New York opened lower.
Market indexes closed down ahead of the start of the earnings season and investors also awaited the U.S. consumer price inflation data this week.
The DAX index inched up 0.3% to 12,311.18, the CAC-40 index fell 0.1% to 5,860.04 and the FTSE 100 index fell 0.3% to 6,969.27.
The euro declined 0.4% to 96.98 U.S. cents and the British pound eased 0.43% to $1.104.
Brent crude oil edged down 2.3% to $95.59 a barrel and TTF natural gas dropped to a 3-month low of 154.12 euros a megawatt hour.
The bond yields continued to rise across Europe on the worries that central banks are not likely to slowdown aggressive rate hike campaigns.
The yield on 10-year German bonds rose to 2.32%, British Gilt advanced to 4.458% and Italian bonds increased to 4.61%.
The rising economic uncertainties and government spending are also pushing the yields on the U.K. bonds closer to Italian bonds.
Euro Zone Confidence Index Drops to 2020 Low
The euro zone confidence index declined in September on the rising worries of inflation and growing uncertainties linked to the Russia-Ukraine war.
The Sentix investor sentiment declined to -38.3 in October from -31.8 in September, the behavior research institute Sentix reported Monday.
The index was at the lowest level since May 2020 and the current situation index dropped sharply to -35.5 from -26.5 in September.
Swiss Jobless Rate Stable
The Swiss franc held at 99.98 U.S. cents and the Canadian dollar inched up 0.1% to $1.373.
The jobless rate declined marginally in September, according to the latest data released by the State Secretariat for the Economic Affairs.
The unadjusted Swiss unemployment rate fell to 1.9% in September from 2.0% in August and dropped from 2.6% a year ago.
The seasonally adjusted jobless rate was unchanged at 2.1% in September from the previous month.
Asian Markets Down on Rate Path Worries
Benchmark indexes in Asia closed down on the worries that the higher rates will fuel further rise in the U.S. dollar and stoke worldwide inflation.
The Nikkei 225 index declined 0.7% to 27,116.11, the Hang Seng Index plunged 2.9% to 17,216.66 and the the Sensex index decreased 0.3% to 57,991.11.
The Indian rupee edged down to a new record low of 82.31 and the Japanese yen to a new 24-year low of 145.75.
Then Korean won and Australian dollar also declined as the U.S. dollar continued its rise against major worldwide currencies.
South Korea's current account turned to a deficit of $3.05 billion in August from the downwardly revised $0.79 billion, the Bank of Korea said Monday.
The goods account turned to a deficit of $4.45 billion from $6.03 billion a year ago.
- Bridgette Randall
- 10 Oct, 2022
- Frankfurt
European markets lacked direction in early trading and turned weaker after the indexes in New York opened lower.
Market indexes closed down ahead of the start of the earnings season and investors also awaited the U.S. consumer price inflation data this week.
The DAX index inched up 0.3% to 12,311.18, the CAC-40 index fell 0.1% to 5,860.04 and the FTSE 100 index fell 0.3% to 6,969.27.
The euro declined 0.4% to 96.98 U.S. cents and the British pound eased 0.43% to $1.104.
Brent crude oil edged down 2.3% to $95.59 a barrel and TTF natural gas dropped to a 3-month low of 154.12 euros a megawatt hour.
Euro Zone Confidence Index Drops to 2020 Low
The euro zone confidence index declined in September on the rising worries of inflation and growing uncertainties linked to the Russia-Ukraine war.
The Sentix investor sentiment declined to -38.3 in October from -31.8 in September, the behavior research institute Sentix reported Monday.
The index was at the lowest level since May 2020 and the current situation index dropped sharply to -35.5 from -26.5 in September.
Swiss Jobless Rate Stable
The Swiss franc held at 99.98 U.S. cents and the Canadian dollar inched up 0.1% to $1.373.
The jobless rate declined marginally in September, according to the latest data released by the State Secretariat for the Economic Affairs.
The unadjusted Swiss unemployment rate fell to 1.9% in September from 2.0% in August and dropped from 2.6% a year ago.
The seasonally adjusted jobless rate was unchanged at 2.1% in September from the previous month.
Asian Markets Down on Rate Path Worries
Benchmark indexes in Asia closed down on the worries that the higher rates will fuel further rise in the U.S. dollar and stoke worldwide inflation.
The Nikkei 225 index declined 0.7% to 27,116.11, the Hang Seng Index plunged 2.9% to 17,216.66 and the the Sensex index decreased 0.3% to 57,991.11.
The Indian rupee edged down to a new record low of 82.31 and the Japanese yen to a new 24-year low of 145.75.
Then Korean won and Australian dollar also declined as the U.S. dollar continued its rise against major worldwide currencies.
South Korea's current account turned to a deficit of $3.05 billion in August from the downwardly revised $0.79 billion, the Bank of Korea said Monday.
The goods account turned to a deficit of $4.45 billion from $6.03 billion a year ago.
- Barry Adams
- 10 Oct, 2022
- New York City
Stocks struggled ahead of the busy week of economic data and the kickoff of the earnings season.
The dollar advanced for the fourth day in a row dragging major currencies around the world to multi-decade lows.
Tech stocks led the decliners in trading on Wall Street on the worries that the Fed will continue its aggressive rate hike plan, even if the economy dips to a recession and the labor market loses steam.
The S&P 500 index fell 0.8% to 3,610.89 and the Nasdaq Composite declined 1.3% to 10,510.83.
The Nasdaq is trading near a two-year low as chipmakers dive after President Biden's administration imposed more controls on the export of technology and equipment to China.
Banks and financial services are in focus ahead of the start of the earnings season with Morgan Stanley, Goldman Sachs, JP Morgan Chase and Citigroup are scheduled to report this week.
Crude oil edged down 25 cents to $92.38 and natural gas dropped 7 cents to $6.66 a thermal unit.
In Friday's trading, the yield on 2-year Treasury notes rose to 4.31%, 10-year Treasury notes jumped to 3.89% and 30-year bonds inched up to 3.84%.
The U.S. bond market was closed on Monday for Columbus Day holiday.
European markets lacked direction in early trading and turned weaker after the indexes in New York opened lower.
The DAX index inched up 0.3% to 12,311.18, the CAC-40 index fell 0.1% to 5,860.04 and the FTSE 100 index fell 0.3% to 6,969.27.
The euro declined 0.4% to 96.98 U.S. cents and the British pound eased 0.43% to $1.104.
The Swiss franc held at 99.98 U.S. cents and the Canadian dollar inched up 0.1% to $1.373.
The bond yields continued to rise across Europe on the worries that central banks are not likely to slow down aggressive rate hike campaigns.
The yield on 10-year German bonds rose to 2.32%, British Gilt advanced to 4.458% and Italian bonds increased to 4.61%.
Benchmark indexes in Asia closed down on the worries that the higher rates will fuel further rise in the U.S. dollar and stoke worldwide inflation.
The Nikkei 225 index declined 0.7% to 27,116.11, the Hang Seng Index plunged 2.9% to 17,216.66 and the the Sensex index decreased 0.3% to 57,991.11.
The Indian rupee edged down to a new record low of 82.31 and the Japanese yen to a new 24-year low of 145.75.
Then Korean won and Australian dollar also declined as the U.S. dollar continued its rise against major worldwide currencies.
South Korea's current account turned to a deficit of $3.05 billion in August from the downwardly revised $0.79 billion, the Bank of Korea said Monday.
The goods account turned to a deficit of $4.45 billion from $6.03 billion a year ago.
- Barry Adams
- 07 Oct, 2022
- New York City
Benchmark indexes struggled on Wall Street and trimmed week's gain after September's jobs report raised fears of a large-sized rate hike at the next Fed meeting.
The good news on the economy meant bad news for Wall Street as investors focused on the Fed action.
Traders on Wall Street focused on the decline in unemployment rate and worried that tight labor market conditions may force the Fed's policymakers to continue aggressive interest rate hikes.
Popular indexes opened lower and drifted steadily downward until the final thirty minutes of trading and recouped some of the losses.
Bond yields jumped in the early hours of trading and stayed elevated with 2-year Treasury notes crossing 4.3%, a 14-year peak.
The yield on 2-year notes increased to 4.316%, 10-year notes advanced to 3.881% and 30-year bonds rose to 3.84%.
The S&P 500 index declined 2.8% to 3,639.66 and the Nasdaq Composite index dropped 3.8% to 10,652.40.
For the week, the S&P 500 added 1.5% and the Nasdaq Composite inched up 0.8%.
For the year 2022, the S&P 500 index is down 24.1% and the Nasdaq Composite is lower a whopping 32.7%.
Crude oil increased $4.55 to $93.05 a barrel and natural gas fell 31 cents to $6.67 a thermal unit.
September Payrolls Rise 263,000
The U.S. economy added 250,000 jobs in September, lower than unrevised 315,000 in August, the U.S. Bureau of Labor Statistics reported Friday.
The shrinking pool of available workers also dragged down the unemployment rate to 3.5% from 3.7% in August, the Labor Department said.
Average monthly jobs added in 2022 edged down to 420,000, lower than 562,000 in 2021.
Before the release of the September month data, net new job additions averaged 439,000 in the first eight months of 2022, reflecting labor market strength and tight job market conditions.
With the September month job addition, the U.S. labor market is now about 500,000 larger than the pre-pandemic level.
Average hourly earnings increased 0.3% from the previous month and 5% from a year ago.
U.S. Movers: Ambac, AMD, Credit Suisse, Levi's, Tilray
Tech stocks led the decliners and the energy complex led the gainers.
Apple Inc, Amazon.com, Inc, Meta Platforms Inc, Alphabet Inc and Netflix Inc plunged between 4% and 6%.
Exxon Mobil, Chevron, Hess Corp and Schlumberger trade higher but reversed earlier gains to losses in the afternoon trading.
Crude oil increased $3.45 to $92.35 a barrel and natural gas fell 10 cents to $6.87 a thermal unit.
Advanced Micro Devices, Inc declined 11.3% to $60.27 after the chipmaker lowered its sales forecast on a weaker-than-expected personal computer market.
Ambac Financial Group soared 15.5% to $14.75 after the municipal bond insurer agreed to a settlement with Bank of America for $1.8 billion linked to the insurance issued to the bank's subsidiary Countrywide Financial prior to its acquisition in 2008.
Credit Suisse soared 13.8% to $4.88 after the financial service company said it plans to buy back $3 billion of its senior debt.
Levi Strauss dropped 9.8% to $14.37 after the apparel maker lowered its full-year sales and earnings outlook.
Tilray Inc plunged 18.8% to $3.17 after the cannabis company reported larger-than-expected loss and revenue missed analysts' estimate.
Cannabis-related stocks surged in Thursday's trading after President Joe Biden announced grand pardon for those convicted of federal charges linked to marijuana possession.
President Biden also ordered reviewing how marijuana is classified under federal drug laws.
Aurora Cannabis, Canopy Growth Corp and Cronos Group plunged between 15% and 25%.
European Markets Trim Weekly Gains
European markets struggled in the morning trading and turned sharply lower after the U.S. economy added higher-than-expected jobs in September lifting rate hike worries.
Benchmark indexes in Europe opened lower after weak economic reports from Germany and the U.K. and the sentiment weakened after the euro, the Swiss franc and the British pound eased.
The DAX index fell 1.6% to 12,732.0, the CAC-40 index dropped 1.1% to 5,866.94 and the FTSE 100 index was nearly flat at 6,991.0.
For the week, the DAX, the CAC-40 and the FTSE 100 indexes gained 1.3%, 1.5% and 1.2% respectively.
The euro edged down to 97.62 U.S. cents and the British pounds declined to $1.109.
The dollar also advanced against the Swiss franc to 99.31 U.S. cents.
Brent crude oil jumped 3.2% to $97.25 a barrel and closed up 14.6% in the week, the best weekly gain since March.
German Output and Retail Sales Drop
German industrial output declined 0.8% in August after staying flat in July, Destatis reported Friday.
Retail sales also fell 1.3% in August from the previous month and fell 4.3% from a year ago.
In nominal terms, not adjusted for inflation, retail sales in August rose 0.1% from the previous month and increased 5.4% from a year ago.
The difference between real and nominal sales data reflects the scale of price increase.
The impact of inflation was also visible in imports and exports prices released by the Federal Statistics Office.
German Import and Export Prices Surge
Import prices surged 32.7% in August from a year ago and increased 4.3% from a year ago.
Export prices jumped 18.6% in August from a year ago and gained 2.1% from the previous month.
A private report also underscored the raging inflation in U.K. home prices.
Home prices surged at a slower pace of 9.9% in August after 11.1% in July, the Lloyds Bank subsidiary Halifax reported Friday.
Mortgage rates for two-year and five-year fixed-rates inched up above 6%, 14-year highs on the worries that the U.S. rate hikes are likely to push U.K. rates higher.
Europe Movers: Adidas, J.D. Wetherspoon, Superdry
Adidas AG dropped 5.2% to
- Scott Peters
- 07 Oct, 2022
- New York City
Stocks on Wall Street dropped sharply after the latest jobs report provided another signal for the Fed to continue its rate hike campaign.
The good news on the economy meant bad news for Wall Street as investors focused on the Fed action.
The S&P 500 index declined 2.4% to 3,56.23 and the Nasdaq Composite index dropped 3.3% to 10,706.89.
Tech stocks led the decliners and the energy complex led the gainers.
Apple Inc, Amazon.com, Inc, Meta Platforms Inc, Alphabet Inc and Netflix Inc plunged between 4% and 6%.
Exxon Mobil, Chevron, Hess Corp and Schlumberger trade higher but reversed earlier gains to losses in the afternoon trading.
Crude oil increased $3.45 to $92.35 a barrel and natural gas fell 10 cents to $6.87 a thermal unit.
Advanced Micro Devices, Inc declined 11.3% to $60.27 after the chipmaker lowered its sales forecast on a weaker-than-expected personal computer market.
Ambac Financial Group soared 15.5% to $14.75 after the municipal bond insurer agreed to a settlement with Bank of America for $1.8 billion linked to the insurance issued to the bank's subsidiary Countrywide Financial prior to its acquisition in 2008.
Credit Suisse soared 13.8% to $4.88 after the financial service company said it plans to buy back $3 billion of its senior debt.
Levi Strauss dropped 9.8% to $14.37 after the apparel maker lowered its full-year sales and earnings outlook.
Tilray Inc plunged 18.8% to $3.17 after the cannabis company reported larger-than-expected loss and revenue missed analysts' estimate.
Cannabis-related stocks surged in Thursday's trading after President Joe Biden announced grand pardon for those convicted of federal charges linked to marijuana possession.
President Biden also ordered reviewing how marijuana is classified under federal drug laws.
Aurora Cannabis, Canopy Growth Corp and Cronos Group plunged between 15% and 25%.
- Bridgette Randall
- 07 Oct, 2022
- Frankfurt
Adidas AG dropped 5.2% to
- Bridgette Randall
- 07 Oct, 2022
- New York City
European markets struggled in the morning trading and turned sharply lower after the U.S. economy added higher-than-expected jobs in September lifting rate hike worries.
Benchmark indexes in Europe opened lower after weak economic reports from Germany and the U.K. and the sentiment weakened after the euro, the Swiss franc and the British pound eased.
The U.S. economy added 263,000 net new jobs in September, the U.S. Bureau of Labor Statistics reported Friday.
The monthly new job additions declined from 315,000 in August but still highlighted tight labor market conditions and also underscored the tough job ahead for the Fed in cooling the U.S. economy.
The U.S. labor market is now 500,000 larger than pre-pandemic 2020, recovering nearly 22 million jobs lost at the onset of pandemic in 2020.
The S&P 500 and the Nasdaq Composite plunged more than 3% and dragged indexes worldwide on the worries that the Fed will continue its large-sized rate hike, supporting the advance in the dollar.
The DAX index fell 1.6% to 12,732.0, the CAC-40 index dropped 1.1% to 5,866.94 and the FTSE 100 index was nearly flat at 6,991.0.
For the week, the DAX, the CAC-40 and the FTSE 100 indexes gained 1.3%, 1.5% and 1.2% respectively.
The euro edged down to 97.62 U.S. cents and the British pounds declined to $1.109.
The dollar also advanced against the Swiss franc to 99.31 U.S. cents.
Brent crude oil jumped 3.2% to $97.25 a barrel and closed up 14.6% in the week, the best weekly gain since March.
German Output and Retail Sales Drop
German industrial output declined 0.8% in August after staying flat in July, Destatis reported Friday.
Retail sales also fell 1.3% in August from the previous month and fell 4.3% from a year ago.
In nominal terms, not adjusted for inflation, retail sales in August rose 0.1% from the previous month and increased 5.4% from a year ago.
The difference between real and nominal sales data reflects the scale of price increase.
The impact of inflation was also visible in imports and exports prices released by the Federal Statistics Office.
German Import and Export Prices Surge
Import prices surged 32.7% in August from a year ago and increased 4.3% from a year ago.
Export prices jumped 18.6% in August from a year ago and gained 2.1% from the previous month.
A private report also underscored the raging inflation in U.K. home prices.
Home prices surged at a slower pace of 9.9% in August after 11.1% in July, the Lloyds Bank subsidiary Halifax reported Friday.
Mortgage rates for two-year and five-year fixed-rates inched up above 6%, 14-year highs on the worries that the U.S. rate hikes are likely to push U.K. rates higher.
Adidas AG dropped 5.2% to