- Bridgette Randall
- 04 Oct, 2022
- Frankfurt
European markets accelerated gains following the surge in New York and Australia lifted its rate by a smaller amount.
Investors increased exposure to stocks after bond yield eased across the euro zone and mood improved after the U.S. job openings fell in August, easing the pressure on the Fed to lift rates faster.
In addition, the natural gas prices eased in Europe trading and dropped to a ten-week low.
Brent crude oil price in London rose 3.2% to $91.62 a barrel and TTF natural gas prices declined 6.4% to 159 euros a megawatt hour.
The DAX index increased 3.5% to 12,630.29, the CAC-40 index soared 3.9% to 6,022.79 and the FTSE 100 index gained 2.5% to 7,080.90.
The euro rebounded and moved further away from a 20-year low to 99 U.S. cents and the British pound jumped to $1.148.
The yield on 10-year German government bonds eased to 1.875% and British Gilts dropped to 3.868%.
The Italian 10-year bond yields also improved to 4.2% from the 10-year high of 4.5% in the end of September.
The Reserve Bank of Australia lifts its key lending rate by 25 basis points, smaller-than-expected 50 basis points.
The RBA revised its key lending rate to 2.60% from 2.35% and added that additional rates are required to bring down inflation back to its target range between 2% and 3%.
In stock trading, stocks surged across all industrial sectors and travel and travel sector led the gainers.
Holcim AG increased 3.9% to 42.84 Swiss francs after the cement building materials maker said it has completed the purchase of Polymers Sealants of North America, a division of Illinois Tool works Inc.
PSNA is expected to have 2022 revenues of $100 million.
Last week, Holcim completed the acquisition of Belgium-based Cantillana, a specialty building solutions provider with an estimated 2022 revenue of 80 million euros.
Sika AG gained 6.1% to 21.420 Swiss francs after the chemical maker said 2022 sales and operating earnings (EBIT) in local currencies are expected to rise 15%.
The company also confirmed it is on track to complete its acquisition of MBCC Group and has received unconditional approvals in South Africa, China, Brazil, Japan, Thailand, Turkey and Saudi Arabia.
Metropole Television SA plunged 10.8% to 11.10 euros after RTL Group controlled by Bertelsmann dropped its plan to sell a controlling stake in the company.
Legal & General Group Plc added 5.3% to 233.68 pence after the financial services provider reassured investors about the financial health of the company.
Made.com Group Plc soared 39.8% to 4.74 pence after the troubled online furniture retailer " has now entered in to non-disclosure agreements and begun discussions with a number of interested parties regarding the sale of the Group."
The company also said in a regulatory filing that the management plan implementation is estimated to require "
- Barry Adams
- 04 Oct, 2022
- New York City
Stocks extended rally for the second day in a row as fears recede on Wall Street.
Market mood improved on the hopes that the Federal Reserve may slow future rate hikes and may even pause as the U.S. rate hikes are stoking worldwide commodities inflation and currency market chaos.
The British pound, the Japanese yen and the euro have dropped at least 20% in the last six months, since the Federal Reserve began its aggressive rate hike in March.
Tensions also receded after Credit Suisse executives reassured investors over the weekend that the investment bank has sufficient liquidity.
Market sentiment also improved after the number of job openings declined to 10.1 million in August from a downwardly revised 11.2 million in July, the U.S. Census Bureau reported Tuesday.
The job openings are still near the record 11.9 million in March, but the slight easing of the data also contributed to positive sentiment.
The S&P 500 index jumped 2.8% to 3,781.24 and the Nasdaq Composite index surged 3.3% to 11,600.59.
The VIX index, a measure of market volatility, declined 5% after investors focused on searching bargains among the recently beaten down stocks.
Crude oil increased $2.94 to $86.41 a barrel and natural gas increased 23 cents to $6.71 a thermal unit.
The yield on 2-year notes decreased to 4.05%, 10-year notes fell to 3.58% and 30-year bonds eased to 3.67%.
European Markets Extend 2-day Rally
In Europe, market indexes accelerated gains following the sharp gains in New York.
In addition, the natural gas prices eased in Europe trading and dropped to a ten-week low.
Brent crude oil price in London rose 3.2% to $91.62 a barrel and TTF natural gas prices declined 6.4% to 159 euros a megawatt hour.
The DAX index increased 3.5% to 12,630.29, the CAC-40 index soared 3.9% to 6,022.79 and the FTSE 100 index gained 2.5% to 7,080.90.
the euro rebounded and moved further away from a 20-year low to 99 U.S. cents and the British pound jumped to $1.14.
The Italian 10-year bonds yields also improved to 4.2% from the 10-year high of 4.5% in the end of September.
Asian Markets Surge, N Korea Fires Missile
Stocks in Asia gained on the improved global market sentiment and a decline in the U.S. dollar.
Stocks jumped in Tokyo despite North Korea firing a missile over Northern Japan before landing in the Pacific ocean.
North Korea fired the missile before warning Japan's military as the communist nation stepped up its weapons testing program.
Smaller-than-expected rate increase of 25 basis points by the Reserve Bank of Australia also contributed to market sentiment.
The Nikkei 225 index jumped 2.96% to 22,962.21, the Hang Seng index fell 0.8% to 17,079.51 and the Sensex index increased 2.2% to 58,065.47.
Defense sector stocks in Tokyo rose after North Korea fired a missile for the first time in five years.
The Reserve Bank of Australia hiked its key lending rate by 25 basis points and 10-year government bond yield dropped to a two-week low of 3.7%.
The RBA revised its key lending rate to 2.60% from 2.35% and added that additional rates are required to bring down inflation back to its target range between 2% and 3%.
- Barry Adams
- 03 Oct, 2022
- New York City
Stocks on Wall Street rebounded after a difficult week, month and quarter as bond yields eased.
Market indexes turned higher after the Institute for Supply Management's manufacturing index declined to 50.9 in September.
The weakening manufacturing activities lifted hopes that the Fed may slow down the rate hike pace and help the economy to regain its growth.
Stocks rebounded from oversold positions as traders searched for bargains in tech and energy sectors.
The S&P 500 index and the Nasdaq Composite index declined for the third quarter in a row and investors bid up stocks on the first trading of the fourth quarter.
Investors are also bracing for earnings revisions ahead of the earnings season kickoff next week.
The S&P 500 index increased 2.6% to 3,677.71 and the Nasdaq Composite index rose 2.2% to 10,812.85.
Energy complex stocks led the gainers on Wall Street. Exxon Mobil, Chevron, Hess and Schlumberger jumped between 4% and 5%.
Tesla Inc declined 8.5% to $243.49 after the company announced record deliveries of 343,000 electric vehicles in the third quarter, missing the estimate of at least 350,000 set by some investors.
Norwegian Cruise Line Holdings jumped 0.4% to $11.40 after the company removed all Covid-19 testing, masking, and vaccination requirements from October 4.
Treasury Yields Edge Lower
The yield on 2-year Treasury notes decreased to 4.12% after rising as much as 4.3% in the last week of September, 10-year notes dropped to 3.66% and 30-year bonds fell to 3.68%.
Oil Jumps 5%
Crude oil prices jumped more than 5% in early trading ahead of the meeting of OPEC+ nations Wednesday.
The energy producing nations are expected to cut as much as one million barrels a day as member nations seek higher prices for crude oil.
Crude oil jumped $3.93 to $83.42 to a barrel and natural gas declined 25 cents to $6.50.
Brent crude oil jumped 3.9% to $88.57 and the TTF natural gas price declined 10.0% to 169.91 euros a megawatt hour.
Silver Up 9%, Coal Plunges 9%
Silver jumped 9% as traders sought bargains in precious metals and gold gained 2.4%.
Coal plunged below $400 a ton from as high as $434 after China pledged to increase its production capacity by as much as 300 million ton, covering its entire annual imports.
Swiss Inflation Drops in September
Inflation rate in Switzerland unexpectedly declined to 3.3% in September from 3.5% in August, the Swiss Federal Statistics Office said Monday.
Pound Rebounds After UK Abandons Tax Cut for Top Bracket
European markets advanced after a week of losses and the British government reversed its recent tax proposal in the mini-budget after market turmoil and party rebellion.
Finance minister was forced to reverse some of the proposals after bond and currency markets went into a tailspin and several members of his party rebelled.
Finance minister Kwasi Kwarteng said that the government will not cut tax rate to 40% from 45% for income higher than 150,000 pounds.
"It is clear that the abolition of the 45 percent tax rate has become a distraction from our overriding mission to tackle the challenges facing our country," said Chancellor of the Exchequer Kwasi Kwarteng in a statement released Monday.
The euro edged lower to 97.65 U.S. cents and the British pound edged higher to $1.12.
European Markets Close Higher
European markets traded higher on the first day of the fourth quarter after global growth worries resurfaced.
Market indexes reversed earlier losses of as much as 1.5% on worries lingered. and closed higher following rising markets in New York.
Purchasing Managers' Index for manufacturing declined to a 27-month low of 48.4 in September from 49.6 in August, S&P Global said in a report Monday.
The euro zone manufacturing sector growth contracted at the fastest pace since mid-2020 after production and orders declined in the month. The index was lowered from 48.5 in the preliminary reading.
Any reading below 50 indicates contraction and above shows growth.
Rising prices and falling demand volumes further weakened the manufacturing sector. France and Germany both registered the worst declines and dropped to the lowest levels last seen in the first-half of 2020.
The DAX index roe 0.8% to 12,209.48, the CAC 40 index gained 0.59% to 5,794.105 and the FTSE 100 index increased 0.2% to 6,908.76.
Europe Stock Movers
Credit Suisse AG dropped 5.9% to 3.61 Swiss francs and the troubled investment bank assured investors over the weekend about the health of the company.
Natuzzi SpA jumped 15.3% to $6.79 after the Italy-based leather furniture maker reported sixth consecutive quarterly revenue growth in a row.
Revenue in the fiscal second quarter increased 7.8% to
- Scott Peters
- 03 Oct, 2022
- New York City
Natuzzi SpA fell 4.5% to $5.92 after the Italy-based leather furniture maker reported sixth consecutive quarterly revenue growth in a row.
However, long lead time of up to four months and inflation pressure are providing significant operation and logistic headwinds.
Revenue in the fiscal second quarter increased 7.8% to
- Bridgette Randall
- 03 Oct, 2022
- Frankfurt
European markets traded lower on the first day of the fourth quarter after global growth worries resurfaced.
Market indexes reversed earlier losses following the gains in New York.
The DAX index roe 0.8% to 12,209.48, the CAC 40 index gained 0.59% to 5,794.105 and the FTSE 100 index increased 0.2% to 6,908.76.
Credit Suisse AG dropped 5.9% to 3.61 Swiss francs and the troubled investment bank assured investors over the weekend about the health of the company.
Natuzzi SpA jumped 15.3% to $6.79 after the Italy-based leather furniture maker reported sixth consecutive quarterly revenue growth in a row.
Revenue in the fiscal second quarter increased 7.8% to
- Bridgette Randall
- 03 Oct, 2022
- Frankfurt
European markets rebounded from the lows of the day to close higher on the first day of the fourth quarter after global growth worries resurfaced.
Purchasing Managers' Index for manufacturing declined to a 27-month low of 48.4 in September from 49.6 in August, S&P Global said in a report Monday.
The euro zone manufacturing sector growth contracted at the fastest pace since mid-2020 after production and orders declined in the month. The index was lowered from 48.5 in the preliminary reading.
Any reading below 50 indicates contraction and above shows growth.
Rising prices and falling demand volumes further weakened the manufacturing sector. France and Germany both registered worst declines and dropping to the lowest levels last seen in the first-half of 2020.
Market indexes reversed earlier losses following the gains in New York.
The DAX index roe 0.8% to 12,209.48, the CAC 40 index gained 0.59% to 5,794.105 and the FTSE 100 index increased 0.2% to 6,908.76.
Oil Jumps 5%
Crude oil prices jumped more than 5% ahead of the meeting of OPEC+ nations this Wednesday.
The energy producing nations are expected to cut as much as one million barrels a day to lift the price of oil.
Crude oil jumped $4.83 to $84.34 to a barrel and natural gas declined 31 cents to $6.46.
Brent crude oil jumped 5.2% to $89.56 and the TTF natural gas price declined 6.1% to 177.26 euros a megawatt hour.
Pound Rebounds After UK Govt U Turn
European markets advanced after a week of losses and the British government reversed its recent tax proposal in the mini-budget after market turmoil and party rebellion.
Finance minister was forced to reverse some of the proposals after bond and currency markets went into a tailspin and several members of his party rebelled.
Finance minister Kwasi Kwarteng said that the government will not cut tax rate to 40% from 45% for income higher than 150,000 pounds.
"It is clear that the abolition of the 45 percent tax rate has become a distraction from our overriding mission to tackle the challenges facing our country," said Chancellor of the Exchequer Kwasi Kwarteng in a statement released Monday.
The euro edged lower to 97.65 U.S. cents and the British pound edged higher to $1.12.
Swiss Inflation Drops in September
Inflation rate in Switzerland unexpectedly declined to 3.3% in September from 3.5% in August, the Swiss Federal Statistics Office said Monday.
Stock Movers
Credit Suisse AG dropped 5.9% to 3.61 Swiss francs and the troubled investment bank assured investors over the weekend about the health of the company.
Natuzzi SpA jumped 15.3% to $6.79 after the Italy-based leather furniture maker reported sixth consecutive quarterly revenue growth in a row.
Revenue in the fiscal second quarter increased 7.8% to
- Barry Adams
- 03 Oct, 2022
- New York City
Stocks on Wall Street rebounded after a difficult month and quarter as bond yield edged slightly lower.
The S&P 500 index and the Nasdaq Composite index declined for the third quarter in a row and investors bid up stocks on the first trading of the fourth quarter.
Investors are also bracing for earnings revisions ahead of the earnings season kickoff next week.
The S&P 500 index increased 1.1% to 3,624.84 and the Nasdaq Composite index rose 80.40 or 0.7% to 11,062.56.
Energy complex stocks led the gainers on Wall Street. Exxon Mobil, Chevron, Hess and Schlumberger jumped between 4% and 5%.
Tesla Inc declined 6.9% to $246.49 after the company announced record deliveries of 343,000 electric vehicles in the third quarter.
The stock edged lower after the company missed earlier delivery projections, despite the record deliveries.
Treasury Yields Edge Lower
The yield on 2-year Treasury notes decreased to 4.12%, 10-year notes dropped to 3.68% and 30-year bonds fell to 3.66%.
Oil Jumps 5%
Crude oil prices jumped more than 5% ahead of the meeting of OPEC+ nations this Wednesday.
The energy producing nations are expected to cut as much as one million barrels a day to lift the price of oil.
Crude oil jumped $4.83 to $84.34 to a barrel and natural gas declined 31 cents to $6.46.
Brent crude oil jumped 5.2% to $89.56 and the TTF natural gas price declined 6.1% to 177.26 euros a megawatt hour.
Pound Rebounds After UK Govt U Turn
European markets advanced after a week of losses and the British government reversed its recent tax proposal in the mini-budget.
The mini-budget included several tax provisions but the finance minister was forced to reverse some of the proposals after bond and currency markets perceived the measure more inflationary than growth driver.
Finance minister Kwasi Kwarteng said that the government will not cut tax rate to 40% from 45% for income higher than 150,000 pounds.
The euro edged lower to 97.65 U.S. cents and the British pound edged higher to $1.12.
Swiss Inflation Drops in September
Inflation rate in Switzerland unexpectedly declined to 3.3% in September from 3.5% in August, the Swiss Federal Statistics Office said Monday.
European Stock Movers
The DAX index roe 0.4% to 12,169.9, the CAC 40 index gained 0.07% to 5,766.90 and the FTSE 100 index decreased 0.2% to 6,880.61.
Credit Suisse AG dropped 5.9% to 3.61 Swiss francs and the troubled investment bank assured investors over the weekend about the health of the company.
Natuzzi SpA jumped 15.3% to $6.79 after the Italy-based leather furniture maker reported sixth consecutive quarterly revenue growth in a row.
Revenue in the fiscal second quarter increased 7.8% to
- Barry Adams
- 30 Sep, 2022
- New York City
Morning doldrums on Wall Street turned sharp and accelerating losses on the final day of the week, the month and the quarter.
Investors dumped stocks and risk appetite was low after the latest inflation report gave one more reason to continue its campaign of large-sized rate increase.
The core rate of The personal consumption expenditure price index accelerated in August, denting the market sentiment.
The yield on 2-year Treasury notes held stable at 4.26%, 10-year Treasury notes edged down to 3.82% and 30-year bonds traded near 3.78%.
Immediate month delivery futures of crude oil declined $1.63 to $79.63 a barrel and natural gas fell 6 cents to $6.81 a thermal unit.
Major Averages Extend Quarterly Loss Streak
The S&P 500 index fell 1.5% to 3,585.22 and the Nasdaq Composite index dropped 1.5% to 10,575.62.
The S&P 500 declined for the third quarter in a row, the streak last seen in 2009 and the Nasdaq Composite for the for the first time since the collapse of dotcom stocks in 2000.
In the third quarter, the S&P 500 index dropped 5.2% and the Nasdaq Composite declined 4.1%.
In September, the S&P 500 index declined 9.2% and the Nasdaq Composite plunged 10.4%.
For the week, the S&P 500 index fell 2.9% and the Nasdaq Composite index decreased 2.7%.
U.S. Stock Movers
Carnival Corp plunged 20.9% to $7.25 after the cruise line operator reported larger-than-expected loss and slower than expected business recovery after the pandemic.
Revenues in the third quarter ending in August increased 80% from the second quarter and jumped nearly eight-fold from a year ago to $4.3 billion.
Net loss in the quarter shrank to $770 million compared to $2.8 billion a year ago and diluted loss per share fell to 65 cents from $2.50 a year ago.
The company said fourth quarter bookings are lagging pre-pandemic 2019 levels, and at lower daily rates but 2023 advance bookings are "slightly above the historical average and at considerably higher prices, as compared to 2019."
The cruise operator is also battling with $28 billion of long term debt, with about $9 billion due before the end of 2025.
Micron Technology, Inc rose 1.8% to $50.91 after the semiconductor chipmaker reported mixed quarterly results and offered an outlook that fell short of expectations.
Revenues in the fourth quarter declined to $6.6 billion from $8.3 billion a year ago.
Net income in the quarter fell to $1.5 billion from $2.7 billion and diluted earnings declined to $1.35 from $2.39 a year ago.
For the fiscal year 2022, revenue jumped to $30.7 billion from $27.7 billion and net income soared to $8.7 billion from $5.8 billion and diluted earnings per share rose to $7.75 from $8.35 a year ago.
The company guided fiscal first quarter revenue of $4.25 billion with a band of $250 million and gross margin between 23% and 27%.
The company guided diluted earnings per share between a loss of 9 cents and a profit of 10 cents.
Natuzzi SpA declined 1.7% to $6.21 ahead of the furniture maker releasing its quarterly earnings release after the market closes on Friday.
In the previous quarter ending in March, the company said revenues increased 16.8% to 118.5 million euros.
In the quarter, earnings plunged to 1.3 million euros from 5.9 million euros or diluted earnings per share to 2 euro cents from 11 euro cents a year ago.
Nike Inc declined 11.1% to $84.80 after the premium athletic shoemaker reported a sharp fall in earnings.
In the latest quarter ending in August, Nike said sales increased 4% to $12.7 billion from $12.2 billion a year ago. Despite the weakness in its third largest market in China and supply chain challenges, sales rose.
Net income in the fiscal year first quarter plunged 22% to $1.5 billion from $1.87 billion a year ago. Diluted earnings per share declined to 93 cents from $1.16 a year ago.
Rent-A-Center Inc plunged 21.0% to $17.64 after the rent to own furniture and electronics company lowered its current quarter earnings outlook.
The company tightened its third quarter revenues in the range between $1.00 billion and $1.02 billion from the previous estimate in the range between $1.00 billion and $1.05 billion.
The company also lowered its non-GAAP diluted earnings per share in the range between 85 cents and 95 cents from the previous guidance between $1.05 and $1.25.
U.S. Core PCE Inflation Accelerated
The personal consumption expenditure price index rose 0.3% in August after falling 0.1% in July, Bureau of Economic Analysis said Friday.
On a monthly basis, prices for goods declined 0.3% and for services rose 0.6% in August. Energy prices declined 5.5% but food prices rose 0.8%.
The PCE price index, excluding food and energy, rose 0.6% on a monthly basis.
The PCE price index on an annual basis increased 6.2%, slower than 6.4% in July but still elevated and significantly ahead of Fed's target rate of 2%.
Core rate of inflation, excluding food and energy, rose 4.9% in August from a year ago and jumped 0.6% on a monthly basis.
Eurozone Inflation Accelerates
Consumer prices rose at the fastest annual pace 10.0% in September after rising at 9.3% in August, the Eurostat said Friday.
The inflation rate in September increased to 1.2% from the previous month
Inflation accelerated for the fifth month in a row and showed no signs of easing, raising pressure on the central bank to lift rates.
Food, tobacco and beverages prices accelerated to 11.8% from 10.6% in August, energy prices rose 40.8% from 38.6% and services increased 4.3% from 3.8%.
Among the larger member countries in the eurozone, Germany recorded the largest inflation rate of 10.9% in September from 8.8% in September, followed by Italy with 9.5% compared to 9.1% but the rate slowed in France to 6.2% from 6.1% and in Spain to 9.3% from 10.5%.
Prices in Estonia, Latvia and Lithuania surged between 22% and 24.5% in the month on an annual basis.
Euro Area Unemployment Rate 6.6%
Seasonally adjusted unemployment rate was 6.6% in August, the Eurostat reported Friday.
The jobless rate was stable from July and fell from 7.5% from a year ago
The unemployment rate was stable at 6.0% in August in the European Union from the previous month and declined from 6.8% a year ago.
About 12,92 million people were unemployed in the European Union and 10.966 million were in the euro area.
UK Revises Q2 GDP Rate Higher
UK GDP growth was revised higher to 4.4% from a year ago from the previous estimate of 2.9%, the Office for National Statistics reported Friday.
Despite the upward revision, the British GDP growth rate is still the smallest in five quarters.
The statistical office also revised the data for 2020 and 2021.
UK GDP is now estimated to have contracted 11.0% in 2020, revised from the previous estimate of a fall of 9.3%.
In 2021, UK GDP is estimated to have expanded by an upwardly revised 7.5% from the previous estimate of 7.4%.
Euro Area Indexes Down Third Quarter In a Row
European markets are set close down for the third quarter in a row for the first time since early 2011.
The DAX index closed up 1.2% to 12,114.36, the CAC-40 index added 1.5% to 5,762.34 and the FTSE 100 index rose 0.2% to 6,893.11.
For the quarter, the DAX fell more than 5%, the CAC-40 dropped 2.5% and the FTSE 100 index eased 4%.
The Swiss Market Index spent the entire session in the negative territory and closed down 93.77 points or 0.92% to 10,126.99.
For the quarter, the SMI is down about 5%.
Europe Stock Movers
Dignity PLC dropped 7.6% to 365.29 pence after the funeral-related services provider reported first-half loss on rising costs and falling revenue.
Clariant AG increased 7.7% to 15.90 Swiss francs after Credit Suisse upgraded stock to "outperform" and lifted its price target.
Webuild SpA jumped 5.6% to 1.26 euros after the company said its 2022 results are expected to be "significantly" ahead of the guidance.
The company also won a contract worth
- Barry Adams
- 30 Sep, 2022
- New York City
Stocks on Wall Street turned lower after the release of the latest inflation report.
The hotter-than-expected inflation, the preferred measure by the Federal Reserve, was the second signal in as many days indicating that elevated inflation is here to stay despite the five rate hikes in six months.
The PCE price index on an annual basis increased 6.2%, slower than 6.4% in July but still elevated and significantly ahead of Fed's target rate of 2%.
The yield on 2-year Treasury notes held stable at 4.19%, 10-year Treasury notes edged down to 3.73% and 30-year bonds traded near 3.76%.
Immediate month delivery futures of crude oil declined $1.03 to $88.06 a barrel and natural gas fell 7 cents to $6.80 a thermal unit.
The S&P 500 index dropped 0.4% to 3,622.20 and the Nasdaq Composite index declined 0.3% to 10,704.11.
Blue Apron Holdings was in focus and gained 3.8% to $5.77 after the meal-kit company said chief financial officer Randy Greben will step down from the role on October 17 to take a position with another company.
Greben was appointed in the role in January 2021.
Blue Apron appointed Mitchell Cohen to serve as interim Chief Financial Officer.
Carnival Corp plunged 20.9% to $7.25 after the cruise line operator reported larger-than-expected loss and slower than expected business recovery after the pandemic.
Revenues in the third quarter ending in August increased 80% from the second quarter and jumped nearly eight-fold from a year ago to $4.3 billion.
Net loss in the quarter shrank to $770 million compared to $2.8 billion a year ago and diluted loss per share fell to 65 cents from $2.50 a year ago.
The company said fourth quarter bookings are lagging pre-pandemic 2019 levels, and at lower daily rates but 2023 advance bookings are "slightly above the historical average and at considerably higher prices, as compared to 2019."
The cruise operator is also battling with $28 billion of long term debt, with about $9 billion due before the end of 2025.
Micron Technology, Inc rose 1.8% to $50.91 after the semiconductor chipmaker reported mixed quarterly results and offered an outlook that fell short of expectations.
Revenues in the fourth quarter declined to $6.6 billion from $8.3 billion a year ago.
Net income in the quarter fell to $1.5 billion from $2.7 billion and diluted earnings declined to $1.35 from $2.39 a year ago.
For the fiscal year 2022, revenue jumped to $30.7 billion from $27.7 billion and net income soared to $8.7 billion from $5.8 billion and diluted earnings per share rose to $7.75 from $8.35 a year ago.
The company guided fiscal first quarter revenue of $4.25 billion with a band of $250 million and gross margin between 23% and 27%.
The company guided diluted earnings per share between a loss of 9 cents and a profit of 10 cents.
Natuzzi SpA gained 3.4% to $6.41 ahead of the furniture maker releasing its quarterly earnings release after the market closes on Friday.
In the previous quarter ending in March, the company said revenues increased 16.8% to 118.5 million euros.
In the quarter, earnings plunged to 1.3 million euros from 5.9 million euros or diluted earnings per share to 2 euro cents from 11 euro cents a year ago.
Nike Inc declined 11.1% to $84.80 after the premium athletic shoemaker reported a sharp fall in earnings.
In the latest quarter ending in August, Nike said sales increased 4% to $12.7 billion from $12.2 billion a year ago. Despite the weakness in its third largest market in China and supply chain challenges, sales rose.
Net income in the fiscal year first quarter plunged 22% to $1.5 billion from $1.87 billion a year ago. Diluted earnings per share declined to 93 cents from $1.16 a year ago.
Rent-A-Center Inc plunged 21.0% to $17.64 after the rent to own furniture and electronics company lowered its current quarter earnings outlook.
The company tightened its third quarter revenues in the range between $1.00 billion and $1.02 billion from the previous estimate in the range between $1.00 billion and $1.05 billion.
The company also lowered its non-GAAP diluted earnings per share in the range between 85 cents and 95 cents from the previous guidance between $1.05 and $1.25.
- Bridgette Randall
- 30 Sep, 2022
- Frankfurt
European markets traded lower after the release of eurozone inflation, unemployment data.
Market indexes struggled after inflation shot up to a record high in August in the euro area and showed no signs of easing, stoking worries that the large-sized rate hikes may continue.
Eurozone Inflation Accelerates
Consumer prices rose at the fastest annual pace 10.0% in September after rising at 9.3% in August, the Eurostat said Friday.
The inflation rate in September increased to 1.2% from the previous month
Inflation accelerated for the fifth month in a row and showed no signs of easing, raising pressure on the central bank to lift rates.
Food, tobacco and beverages prices accelerated to 11.8% from 10.6% in August, energy prices rose 40.8% from 38.6% and services increased 4.3% from 3.8%.
Among the larger member countries in the eurozone, Germany recorded the largest inflation rate of 10.9% in September from 8.8% in September, followed by Italy with 9.5% compared to 9.1% but the rate slowed in France to 6.2% from 6.1% and in Spain to 9.3% from 10.5%.
Prices in Estonia, Latvia and Lithuania surged between 22% and 24.5% in the month on an annual basis.
Euro Area Unemployment Rate 6.6%
Seasonally adjusted unemployment rate was 6.6% in August, the Eurostat reported Friday.
The jobless rate was stable from July and fell from 7.5% from a year ago
The unemployment rate was stable at 6.0% in August in the European Union from the previous month and declined from 6.8% a year ago.
About 12,92 million people were unemployed in the European Union and 10.966 million were in the euro area.
UK Revises Q2 GDP Rate Higher
UK GDP growth was revised higher to 4.4% from a year ago from the previous estimate of 2.9%, the Office for National Statistics reported Friday.
Despite the upward revision, the British GDP growth rate is still the smallest in five quarters.
The statistical office also revised the data for 2020 and 2021.
UK GDP is now estimated to have contracted 11.0% in 2020, revised from the previous estimate of a fall of 9.3%.
In 2021, UK GDP is estimated to have expanded by an upwardly revised 7.5% from the previous estimate of 7.4%.
Euro Area Indexes Down Third Quarter In a Row
European markets are set close down for the third quarter in a row for the first time since early 2011.
The DAX index closed up 1.2% to 12,114.36, the CAC-40 index added 1.5% to 5,762.34 and the FTSE 100 index rose 0.2% to 6,893.11.
For the quarter, the DAX fell more than 5%, the CAC-40 dropped 2.5% and the FTSE 100 index eased 4%.
The Swiss Market Index spent the entire session in the negative territory and closed down 93.77 points or 0.92% to 10,126.99.
For the quarter, the SMI is down about 5%.
Europe Stock Movers
Dignity PLC dropped 7.6% to 365.29 pence after the funeral-related services provider reported first-half loss on rising costs and falling revenue.
Clariant AG increased 7.7% to 15.90 Swiss francs after Credit Suisse upgraded stock to "outperform" and lifted its price target.
Webuild SpA jumped 5.6% to 1.26 euros after the company said its 2022 results are expected to be "significantly" ahead of the guidance.
The company also won a contract worth
- Brian Turner
- 30 Sep, 2022
- New York City
European markets traded lower after the release of eurozone inflation data.
Consumer prices rose at the fastest annual pace 10.0% in September after rising at 9.3% in August, the Eurostat said Friday.
The inflation rate in September increased to 1.2% from the previous month
Inflation accelerated for the fifth month in a row and show no signs of easing, raising pressure on the central bank to lift rates.
Food, tobacco and beverages prices accelerated to 11.8% from 10.6% in August, energy prices rose 40.8% from 38.6% and services increased 4.3% from 3.8%.
Among the larger member countries in the eurozone, Germany recorded the largest inflation rate of 10.9% in September from 8.8% in September, followed by Italy with 9.5% compared to 9.1% but the rate slowed in France to 6.2% from 6.1% and in Spain to 9.3% from 10.5%.
Prices in Estonia, Latvia and Lithuania surged between 22% and 24.5% in the month on an annual basis.
- Brian Turner
- 30 Sep, 2022
- New York City
The hotter-than-expected inflation, the preferred measure by the Federal Reserve, was the second signal in as many days indicating that elevated inflation is here to stay despite the five rate hikes in six months.
The personal consumption expenditure price index rose 0.3% in August after falling 0.1% in July, Bureau of Economic Analysis said Friday.
On a monthly basis, prices for goods declined 0.3% and for services rose 0.6% in August. Energy prices declined 5.5% but food prices rose 0.8%.
The PCE price index, excluding food and energy, rose 0.6% on a monthly basis.
The PCE price index on an annual basis increased 6.2%, slower than 6.4% in July but still elevated and significantly ahead of Fed's target rate of 2%.
Core rate of inflation, excluding food and energy, rose 4.9% in August from a year ago and jumped 0.6% on a monthly basis.
The yield on 2-year Treasury notes held stable at 4.19%, 10-year Treasury notes edged down to 3.73% and 30-year bonds traded near 3.76%.
- Barry Adams
- 30 Sep, 2022
- New York City
Stocks on Wall Street turned lower after the release of the latest inflation report.
The hotter-than-expected inflation, the preferred measure by the Federal Reserve, was the second signal in as many days indicating that elevated inflation is here to stay despite the five rate hikes in six months.
The personal consumption expenditure price index rose 0.3% in August after falling 0.1% in July, Bureau of Economic Analysis said Friday.
On a monthly basis, prices for goods declined 0.3% and for services rose 0.6% in August. Energy prices declined 5.5% but food prices rose 0.8%.
The PCE price index, excluding food and energy, rose 0.6% on a monthly basis.
The PCE price index on an annual basis increased 6.2%, slower than 6.4% in July but still elevated and significantly ahead of Fed's target rate of 2%.
Core rate of inflation, excluding food and energy, rose 4.9% in August from a year ago and jumped 0.6% on a monthly basis.
The yield on 2-year Treasury notes held stable at 4.19%, 10-year Treasury notes edged down to 3.73% and 30-year bonds traded near 3.76%.
Immediate month delivery futures of crude oil declined $1.03 to $88.06 a barrel and natural gas fell 7 cents to $6.80 a thermal unit.
The S&P 500 index fell 0.24% to 3,632.11 and the Nasdaq Composite index was nearly unchanged at 10,737.58.
Eurozone Record Double Digit Inflation In September
European markets traded lower after the release of eurozone inflation data.
Consumer prices rose at the fastest annual pace 10.0% in September after rising at 9.3% in August, the Eurostat said Friday.
The inflation rate in September increased to 1.2% from the previous month
Inflation accelerated for the fifth month in a row and show no signs of easing, raising pressure on the central bank to lift rates.
Food, tobacco and beverages prices accelerated to 11.8% from 10.6% in August, energy prices rose 40.8% from 38.6% and services increased 4.3% from 3.8%.
Among the larger member countries in the eurozone, Germany recorded the largest inflation rate of 10.9% in September from 8.8% in September, followed by Italy with 9.5% compared to 9.1% but the rate slowed in France to 6.2% from 6.1% and in Spain to 9.3% from 10.5%.
Prices in Estonia, Latvia and Lithuania surged between 22% and 24.5% in the month on an annual basis.
Euro Area Stocks Third Quarterly Loss In a Row
European markets are set close down for the third quarter in a row for the first time since early 2011.
The DAX index trimmed earlier gains to 0.5% to 12,041.53, the CAC-40 index added 0.6% to 5,712.21 and the FTSE 100 index fell 0.3% to 6,858.61.
For the quarter, the DAX is set to close down 6%, the CAC-40 down 3% and the FTSE 100 index down 4%.
- Scott Peters
- 29 Sep, 2022
- New York City
Nike Inc dropped more than 10% in the after-market trading after the maker of premium athletic shoemaker reported a sharp fall in earnings.
In the latest quarter ending in August, Nike said sales increased 4% to $12.7 billion from $12.2 billion a year ago.
Despite the weakness in its third largest market in China and supply chain challenges, sales rose.
Net income in the fiscal year first quarter plunged 22% to $1.5 billion from $1.87 billion a year ago.
Diluted earnings per share declined to 93 cents from $1.16 a year ago.
Gross Margin Declined
The decline in gross margin was primarily driven by the weakness in the North America segment.
Gross margin decreased 220 basis points to 44.3%, primarily driven by higher freight and logistics costs, lower margins in NIKE Direct business driven by higher markdowns, and higher dollar.
Inventories Jump 44%
Inventories surged 44% $9.7 billion, primarily driven by larger in-transit shipments to deal with supply chain issues and volatility.
Segment Breakdown
Sales in North America, its largest market, increased 13% to $5.5 billion from $4.9 billion a year ago.
Sales in Europe, Middle East and Africa increased 1% to $3.33 billion from $3.30 billion a year ago.
Greater China sales declined 16% to $1.7 billion, largely on the business interruptions linked to zero-Covid policy lockdowns.
Stock Buyback and Dividend
The company repurchased and retired 9 million shares for $1.0 billion in the quarter.
Nike used $0.7 billion to repurchase 6.5 million shares retired under the company
- Scott Peters
- 29 Sep, 2022
- New York City
Cintas Corporation declined 1.7% to $387.86 after the company reported revenue in the fiscal first quarter 2023 ending in August 14.2% to $2.17 billion from $1.90 billion a year ago.
Gross margin as a percentage of revenue was 47.5% for the first quarter compared to 47.6% a year ago.
Energy expenses, including gasoline, natural gas and electricity, increased 30 basis from a year ago.
Net income in the quarter increased to $351.7 million from $331.2 million and diluted earnings per share rose to $3.39 from $3.11 a year ago.
Excluding the fiscal 2022 first quarter gain and the related income tax impact, fiscal 2023 first quarter diluted earnings per share increased 12.3% to $3.39 from $3.02 a year ago.
Fiscal Year Outlook
The company also lifted its annual revenue expectations from a range of $8.47 billion to $8.58 billion to a range of $8.58 billion to $8.67 billion and diluted earnings per share from a range of $11.90 to $12.30 to a range of $12.30 to $12.65.
The revised earnings estimate suggest growth between 9.0% and 12.1%.