- Barry Adams
- 10 Aug, 2022
- New York City
Stocks on Wall Street soared after the latest inflation report showed a slight easing.
Tech stocks led the gainers after the inflation index eased in July but stayed elevated near a four-decade high after the 7.7% fall in gasoline index was outpaced by higher food and housing indexes.
Consumer prices for goods and services were flat in July on a monthly basis but remained elevated despite the decline in energy prices.
The Consumer Price Index in July was flat from the previous month and rose 8.5% from a year ago, the Bureau of Labor Statistics said Wednesday.
Core index, which excludes volatile food and energy prices, rose 0.3% from the previous month and jumped 5.9% from a year ago in July.
The S&P 500 surged 2.1% to 4,206.71 and the Nasdaq Composite index soared 2.6% to 12,811.94.
Futures of crude oil prices declined $1.38 to $89.12 a barrel and natural gas edged up 15 cents to $7.99 a thermal unit.
After the release of the latest inflation report, the yield on 10-year U.S. Treasury notes edged down to 2.76% and 30-year U.S. Treasury bond fell 6 points to 2.96%.
The yield on 2-year U.S. Treasury notes edged down to 3.15%.
Coinbase Global Inc rose 6.6% to $93.32 after the cryptocurrencies exchange operator said second quarter net revenues fell to $803 million from $2.03 billion a year ago.
Coinbase swung to a net loss of $1.1 billion from a profit of $1.6 billion a year ago.
The exchange operator said monthly transacting users edged up to 9.0 million from 8.8 million a year ago and transacting volume plunged to $217 billion from $462 million a year ago.
Bitcoin, the most heavily traded cryptocurrency on the exchange, has plunged 74% from the peak in November 2021 to the low in June 2022.
GoodRx Holdings declined 7% to $7.19, after surging nearly 40% in the previous session, after the online pharmacy price comparison services reported better-than-expected quarter results two days ago.
Nikola Corp gained 0.7% to $7.01 after the company said its chief executive officer Mark Russell will retire at the end of 2022.
Tesla Inc gained 2.5% to $871.54 and chief executive Elon Musk sold 7.92 million shares between Aug 5 and Aug 9 for $6.88 billion, according to a series of regulatory filings with the SEC.
- Bridgette Randall
- 10 Aug, 2022
- Frankfurt
European markets accelerated gains after the U.S. and German inflation eased but stayed elevated.
German consumer price growth eased in July to 7.5% from 7.6% in June and matched the preliminary estimates, according to the Federal Statistical Office data on Wednesday. Consumer prices increased 7.9% in May.
On a monthly basis, prices rose 0.9% in July despite the fall in energy prices and two subsidies provided by the German government.
The U.S. consumer prices rose at a slower pace 8.5% in July on an annual basis, according to the report released by the U.S. Bureau of Labor Statistics.
The inflation eased but stayed near the 4-decade high after the energy prices fell. The inflation index on a monthly basis was unchanged.
The DAX index increased 0.8% to 13,646.60, the CAC-40 index increased 0.4% to 6,517.47, and the FTSE 100 index added 0.3% to 7,510.40.
Vestas Wind Systems rose 10.4% to 26.91 euros after the company agreed to sell its converters and control panels business to KK Wind Solutions.
Aviva PLC jumped 11.2% to 4604.0 pence after the insurance company reported higher-than-expected earnings in the first-half and released a plan to return more cash to stockholders with the release of full-year results.
The insurance company increased first-half dividend 40% from a year ago to 10.3 pence a share.
Ahold Delhaize NV jumped 6.3% to 28.29 euros after the Dutch supermarket chain reported net sales in constant currencies rose 6.4% and at nominal exchange rate rose 15% to 21.4 billion euros.
The food retailer lifted its interim dividend to 46 euro cents from 43 cents a year ago and lifted its cumulative free cash flow estimate to 7.5 billion euros from above 6 billion euros between 2022 and 2025.
Net income increased 11.7% to 603 million euros or 59 cents a diluted share from 540 million euros or 53 diluted share a year ago.
TUI AG declined 0.1% to 143.20 pence after the tour operator said load factor in the June quarter increased to 92%, exceeding 90% in the same quarter in 2019.
The tour operator handled 5.1 million customers in the quarter compared to 4.1 million a year ago.
Revenues in the quarter rose to 4.4 billion euros compared to 649 million a year ago. Net loss in the quarter shrank to 27 million euros from 670 million euros a year ago.
At the end of June, the company repaid
- Arjun Pandit
- 10 Aug, 2022
- Mumbai
Benchmark indexes in Asia traded down with tech stocks leading the decliners in Hong Kong and Tokyo.
Semiconductor stocks fell in Tokyo on the worries that the demand for memory and graphic processors is slowing down.
Tech stocks in Hong Kong eased on the simmering tensions between China and the U.S. after the recent visit of the U.S. House Speaker Nancy Pelosi.
The Nikkei 225 index fell 0.7% to 27,819.33, the Hang Seng index dropped 1.95% to 19,610.34, and the Sensex index eased 0.06% to 58,817.29.
Producer prices in Japan eased to a 0.4% rise in July from the previous month and rose 8.6% from a year ago, the Bank of Japan reported on Wednesday.
Prices in June rose 0.9% and advanced 9.4% from a year ago in June.
China's consumer prices accelerated to a two-year high in July to an annual rate of 2.7% after rising at 2.5% in June.
Producer prices eased to an annual rate of 4.2% after surging at a rate of 6.1% in June, the data released by the National Bureau of Statistics of China.
- Brian Turner
- 10 Aug, 2022
- New York City
Consumer prices for good and services were flat in July on a monthly basis but remained elevated despite the decline in energy prices.
Consumer Price Index in July was flat from the previous month and rose 8.5% from a year ago, the Bureau of Labor Statistics said Wednesday.
Core index, which excludes volatile food and energy prices, rose 0.3% from the previous month and jumped 5.9% from a year ago in July.
- Scott Peters
- 09 Aug, 2022
- New York City
Norwegian Cruise Line Holdings fell 11.4% to $11.99 after the company reported second quarter revenues soared to $1.2 billion from $4.4 million a year ago when the Covid-19 restrictions were still in place.
The company reported a net loss of $509.3 million or $1.22 a diluted share compared to a loss of $717.8 million or $1.94 a diluted share in the prior year.
Net fuel price per metric ton increased to $836 from $673 in 2021 and the company reported fuel expense of $181.2 million in the quarter.
NCL said second quarter occupancy was about 65% and the occupancy "remains below the comparable 2019 period but at higher prices" in the second-half.
Bookings are not expected to recover to the 2019 level at least till the next year, indicating losses to continue.
NCL expects total revenue per Passenger Cruise Day to increase in "high-single digits" compared to 2019 levels.
- Barry Adams
- 09 Aug, 2022
- New York City
Stocks on Wall Street fell and the Nasdaq index declined for the third day in a row.
Investors are increasingly factoring a larger rate hike of at least 75 basis points at the Fed Reserve's next policy meeting in September.
The Consumer Price Index data for July are scheduled to be released on August 10.
The inflation index increased 9.1% in June on an annual basis and 1.3% from the previous month on the sustained increase in food and energy prices.
However, investors are hoping for the inflation to cool down following the 28% decline in crude prices from the peak in March.
The S&P 500 index declined 0.4% to 4,122.71 and the Nasdaq Composite index dropped 1.2% to 12,493.93.
Futures of crude oil declined 24 cents to $91.50 and natural gas rose 25 cents to $7.81 a thermal unit.
The yield on 10-year U.S. Treasury notes rose 2 ticks to 2.78% and on 2-year notes increased to 3.27% ahead of the inflation report Wednesday.
Chip sector stocks led the decliners after Nvidia missed its revenue outlook on Monday and Sony also guided weakening sale of its game console.
Today, Micron Technology, Inc warned that the revenues may fall below its previous estimates
Marvell Technology fell 8.5%, Lam Research dropped 10%, Intel Corporation decreased 2.5%, and AMD fell 5.5%.
Micron said it plans to invest $40 billion in memory chi production facilities in several phases through the end of the decade,
The announcement, made ahead of Micron executives joining President Joe Biden at the White House for the signing of the CHIPS and Science Act.
Separately, the chipmaker said revenues may fall short of its previous estimates, either near the low end or below the previous estimate-range, blaming the macroeconomic factors and supply chain issues.
Micron Tech declined 5.5% to $58.23 after Raymond James lowered its price target to $65 from $72.
Signet Jewelers Ltd dropped 11.7% to $59.75 after the jewelry chain lowered its full-year revenues outlook to between $6.7 billion and $7.6 billion and $7.7 billion from the previous range between $8.03 billion and $8.25 billion.
The company cited "heightened pressure on consumers' discretionary spending and increased macroeconomic headwinds."
Signet also announced the acquisition of Blue Nile for $360 million in cash.
The online retailer of engagement rings and fine jewelry delivered revenues of more than $500 million 2021.
Nielsen Holdings surged 21.2% to $27.52 after the company postponed its meeting with the U.K.-based hedge fund WindAcre, the largest shareholder with a 27% stake.
Nielsen today postponed the court meeting and the special meeting of its shareholders to finalize a preliminary agreement with the hedge fund to join a consortium of private equity investors and receive $28 a share a share, the same price to be paid to all other shareholders for its remaining shares.
Sweetgreen Inc fell 23% in $13.0 in after-hours trading after the salad restaurant chain said it will layoff 5% of its support center staff and plans to downsize to a smaller office to cut operating expenses.
The restaurant chain also lowered its 2022 revenues between $480 million and $500 million from the previous estimate between $515 million and $535 million.
European Markets Ease On Rising Tensions with Russia
European markets eased amid rising geopolitical tensions and investors await the U.S. inflation report Wednesday.
The radioactive catastrophe worries in Europe rose after the Russia-controlled nuclear power plant in Ukraine was shelled on Friday and Saturday.
Russia and Ukraine have traded accusations over who attacked the largest nuclear power plant in Europe located at Zaporizhzhia, Ukraine.
The DAX index decreased 1.1% to 13,534.91, the CAC-40 index fell 0.5% t0 6,490.0, and the FTSE 100 index rose 0.08% to 7,488.16.
Taiwan's foreign minister accused China of intensifying cyberattacks on the island nations and added that the mainland is using the recent military exercises in the preparation of the invasion.
Retail sales in the U.K. rose unexpectedly after the latest heatwave lifted the demand for summer clothing and electric fans.
Comparable retail sales in July rose 1.6% after falling 1.3% in June, the report prepared by the British Retail Consortium and advisory firm KPMG showed Tuesday.
Resource stocks led the gainers in the region after crude oil prices inch higher.
Brent crude edged up $1.40 to $98.21 a barrel and futures of natural gas as high as 192.0 euros a MWh.
Dufry AG rose 4.5% to 40.35 Swiss francs after the duty-free shops operator reported strong first-half 2022 sales rose 146% to 2.9 billion Swiss francs.
Net income in the period swung to 12.1 million Swiss francs or 76.3 million on core basis from a loss of 253.9 million Swiss francs in the year ago period.
The company also won an extension of contract for three more years to 2029 for its largest shop at Heathrow airport.
Duftry also won new concessions for airport locations in Helsinki, Finland, Sofa, Bulgaria, Recife Brazil, Bali, Indonesia and Santa Lucia, Mexico.
Continental AG declined 6.4% to $64.98 euros after the automotive tire maker swung to a loss in the latest results.
Revenues in the second quarter increased 13.0% to 9.4 billion euros but swung to a loss of 25.1 million euros from a profit of 545 million euros.
The company reiterated its full-year outlook despite the challenging first half and persistent supply chain disruptions.
Wacker Neuson SE declined 4.2% to 18.61 euros after the construction equipment maker reported first-half revenues increased 15.5% to 1.07 billion euros.
Net income in the period declined 5.6% to 66.1 million euros compared to 70.1 million euros a year ago.
The company reiterated its full-year revenues between 1.9 billion and 2.1 billion euros and narrowed its operating earnings margin between 9.0% and 10.0%.
Asian Markets Diverge, Korea and Australia Extend Rallies
In Asia, markets in Japan closed lower on earnings weakness but indexes in China, South Korea and Australia advanced.
The Nikkei 225 index fell 0.9% to 27,999.96 after rallying for four days in a row and tech stocks led the decliners.
SoftBank Group dropped 7% or 400 yen to 5,295.0 yen after the company's venture arm reported a huge loss of $23.4 billion and the company said it plans to cut jobs.
The Shanghai Composite index rose 0.32% to 3,247.43. Hong Kong's Hang Seng index finished down 0.21% to 20,003.44.
Japan Steel Works Ltd fell 9% to 2,861.0 yen and Tokyo Electron fell 8.5% to 45,600 yen after the release of quarterly results.
Sony Group fell 2.5% to 11,435 yen after the tech conglomerate warned that the weakness in its gaming unit will negatively impact its quarterly results.
Benchmark indexes in Korea advanced for the fifth day in a row and reached a two-month high despite the inflation and rate hike worries.
The Kospi average increased 0.42% to 2,503.46, nearly a two-month high since June 13.
Australian markets advanced for the third day in a row and two separate reports showed diverging trends in business and consumer sentiments.
The Westpac-Melbourne Institute Index of Consumer Sentiment declined 3.0 percent to 81.2 in August from 83.8 in July, the ninth monthly decline totaling 22.9% in a row after reaching a high in November 2021.
The business confidence index rose to +7 in July from +2 in June after the capacity utilization rose to 86.7% from 84.9% in the period, according to the survey data released by NAB
The ASX 200 increased 0.13% to 7,029.80 and the All Ordinaries index closed 0.26% higher to 7,278.60.
Markets in India were closed.
- Barry Adams
- 09 Aug, 2022
- New York City
Stocks traded lower on Wall Street and bond yields traded higher ahead of the inflation report Wednesday.
Investors are increasingly factoring a larger rate hike of at least 75 basis points at the Fed Reserve's next policy meeting in September.
The Consumer Price Index data for July are scheduled to be released on August 10.
The inflation index increased 9.1% in June on an annual basis and 1.3% from the previous month on the sustained increase in food and energy prices.
However, investors are hoping for the inflation to cool down following the 28% decline in crude prices from the peak in March.
The S&P 500 index declined 0.6% to 4,115.72 and the Nasdaq Composite index dropped 1.6% to 12,444.97.
Allbirds Inc declined 19.2% to $4.54 after the shoemaker said second quarter total revenues increased 15% to $78.2 million and net revenues in the U.S. rose 21% to $59.3 million.
Net loss in the quarter surged to $29.3 million from $7.6 million a year ago.
The retailer lowered its full-year adjusted net revenues outlook to fall between $305 million and $315 million from the previous range between $335 million and $345 million issued at the time of the first quarter results.
Chip sector stocks are leading the decliners after Nvidia missed its revenue outlook yesterday and Sony also guided weakening sale of its game console.
Marvell Technology fell 8.5%, Lam Research dropped 10%, Intel Corporation decreased 2.5%, and AMD fell 5.5%.
Micron Tech said it plans to invest $40 billion in memory chi production facilities in several phases through the end of the decade.
The announcement, made ahead of Micron executives joining President Joe Biden at the White House for the signing of the CHIPS and Science Act.
Micron Tech declined 5.5% to $58.23 after Raymond James lowered its price target to $65 from $72.
Nielsen Holdings surged 21.2% to $27.54 after the company postponed its meeting with a hedge fund WindAcre, the largest shareholder in the company with a 27% stake.
Nielsen today postponed the court meeting and the special meeting of its shareholders to finalize a preliminary agreement with WindAcre to join a consortium of private equity and receive $28 a share a share, the same price to be paid to all other shareholders for its remaining shares.
Norwegian Cruise Line Holdings fell 11.4% to $11.99 after the company reported second quarter revenues soared to $1.2 billion from $4.4 million a year ago when the Covid-19 restrictions were still in place.
The company reported a net loss of $509.3 million or $1.22 a diluted share compared to a loss of $717.8 million or $1.94 a diluted share in the prior year.
Net fuel price per metric ton increased to $836 from $673 in 2021 and the company reported fuel expense of $181.2 million in the quarter.
Norwegian said second quarter occupancy was about 65% and the occupancy "remains below the comparable 2019 period but at higher prices" in the second-half.
Bookings are not expected to recover to the 2019 level at least till the next year, indicating losses to continue.
NCL expects total revenue per Passenger Cruise Day to increase in "high-single digits" compared to 2019 levels.
Ralph Lauren Corp fell 4.9% to $96.37 after the fashion retailer said revenues in the fiscal first quarter ending on July 2 rose 8% to $1.49 billion.
Net income declined to $123.4 million or 75 cents a diluted share from $164.7 million or 89 cents a diluted share a year ago.
Signet Jewelers Ltd dropped 13.5% to $58.50 after the jewelry chain lowered its full-year revenues outlook to between $6.7 billion and $7.6 billion and $7.7 billion from the previous range between $8.03 billion and $8.25 billion.
The company cited "heightened pressure on consumers' discretionary spending and increased macroeconomic headwinds."
Signet also announced the acquisition of Blue Nile for $360 million in cash.
The online retailer of engagement rings and fine jewelry delivered revenues of more than $500 million 2021.
- Barry Adams
- 09 Aug, 2022
- New York City
Stocks traded lower on Wall Street and bond yields traded higher ahead of the inflation report Wednesday.
Investors are increasingly factoring a larger rate hike of at least 75 basis points at the Fed Reserve's next policy meeting in September.
The Consumer Price Index data for July are scheduled to be released on August 10.
The inflation index increased 9.1% in June on an annual basis and 1.3% from the previous month on the sustained increase in food and energy prices.
However, investors are hoping for the inflation to cool down following the 28% decline in crude prices from the peak in March.
The S&P 500 index declined 0.6% to 4,115.72 and the Nasdaq Composite index dropped 1.6% to 12,444.97.
Futures of crude oil declined $1.24 to $89.52 and natural gas rose 21 cents to $7.79 a thermal unit.
The yield on 10-year U.S. Treasury notes rose 2 ticks to 2.78% and on 2-year notes increased to 3.27% ahead of the inflation report Wednesday.
Chip sector stocks are leading the decliners after Nvidia missed its revenue outlook yesterday and Sony also guided weakening sale of its game console.
Marvell Technology fell 8.5%, Lam Research dropped 10%, Intel Corporation decreased 2.5%, and AMD fell 5.5%.
Micron said it plans to invest $40 billion in memory chi production facilities in several phases through the end of the decade.
The announcement, made ahead of Micron executives joining President Joe Biden at the White House for the signing of the CHIPS and Science Act.
Micron Tech declined 5.5% to $58.23 after Raymond James lowered its price target to $65 from $72.
Signet Jewelers Ltd dropped 13.5% to $58.50 after the jewelry chain lowered its full-year revenues outlook to between $6.7 billion and $7.6 billion and $7.7 billion from the previous range between $8.03 billion and $8.25 billion.
The company cited "heightened pressure on consumers' discretionary spending and increased macroeconomic headwinds."
Signet also announced the acquisition of Blue Nile for $360 million in cash.
The online retailer of engagement rings and fine jewelry delivered revenues of more than $500 million 2021.
Nielsen Holdings surged 21.2% to $27.54 after the company postponed its meeting with a hedge fund WindAcre, the largest shareholder in the company with a 27% stake.
Nielsen today postponed the court meeting and the special meeting of its shareholders to finalize a preliminary agreement with WindAcre to join a consortium of private equity and receive $28 a share a share, the same price to be paid to all other shareholders for its remaining shares.
- Bridgette Randall
- 09 Aug, 2022
- Frankfurt
European markets eased amid rising geopolitical tensions and investors await the U.S. inflation report Wednesday.
The radioactive catastrophe worries in Europe rose after the Russia-controlled nuclear power plant in Ukraine was shelled on Friday and Saturday.
Russia and Ukraine have traded accusations over who attacked the largest nuclear power plant in Europe located at Zaporizhzhia, Ukraine.
The DAX index decreased 0.8% to 13,577.81, the CAC-40 index fell 0.3%, and the FTSE 100 index rose 0.1% to 7,491.96.
Taiwan foreign minister accused China for stepping up cyberattacks on the island nations and added that the mainland is using the recent military exercises in the preparation of the island invasion.
Retail sales in the U.K. rose unexpectedly after the latest heatwave lifted the demand for summer clothing and electric fans.
Comparable retail sales in July rose 1.6% after falling 1.3% in June, the report prepared by the British Retail Consortium and advisory firm KPMG showed Tuesday.
Resource stocks led the gainers in the region after crude oil prices inch higher.
Brent crude edged up $1.40 to $98.21 a barrel and futures of natural gas as high as 192.0 euros a MWh.
Dufry AG rose 4.5% to 40.35 Swiss francs after the duty-free shops operator reported strong first-half 2022 sales rose 146% to 2.9 billion Swiss francs.
Net income in the period swung to 12.1 million Swiss francs or 76.3 million on core basis from a loss of 253.9 million Swiss francs in the year ago period.
The company also won an extension of contract for three more years to 2029 for its largest shop at Heathrow airport.
Duftry also won new concessions for airport locations in Helsinki, Finland, Sofa, Bulgaria, Recife Brazil, Bali, Indonesia and Santa Lucia, Mexico.
Continental AG declined 6.4% to $64.98 euros after the automotive tire maker swung to a loss in the latest results.
Revenues in the second quarter increased 13.0% to 9.4 billion euros but swung to a loss of 25.1 million euros from a profit of 545 million euros.
The company reiterated its full-year outlook despite the challenging first half and persistent supply chain disruptions.
Wacker Neuson SE declined 4.2% to 18.61 euros after the construction equipment maker reported first-half revenues increased 15.5% to 1.07 billion euros.
Net income in the period declined 5.6% to 66.1 million euros compared to 70.1 million euros a year ago.
The company reiterated its full-year revenues between 1.9 billion and 2.1 billion euros and narrowed its operating earnings margin between 9.0% and 10.0%.
- Arjun Pandit
- 09 Aug, 2022
- Mumbai
In Asia, markets in Japan closed lower on earnings weakness but indexes in China, South Korea and Australia advanced.
The Nikkei 225 index fell 0.9% to 27,999.96 after rallying for four days in a row and tech stocks led the decliners.
SoftBank Group dropped 7% or 400 yen to 5,295.0 yen after the company's venture arm reported a huge loss of $23.4 billion and the company said it plans to cut jobs.
The Shanghai Composite index rose 0.32% to 3,247.43. Hong Kong's Hang Seng index finished down 0.21% to 20,003.44.
Japan Steel Works Ltd fell 9% to 2,861.0 yen and Tokyo Electron fell 8.5% to 45,600 yen after the release of quarterly results.
Sony Group fell 2.5% to 11,435 yen after the tech conglomerate warned that the weakness in its gaming unit will negatively impact its quarterly results.
Benchmark indexes in Korea advanced for the fifth day in a row and reached a two-month high despite the inflation and rate hike worries.
The Kospi Average increased 0.42% to 2,503.46, nearly a two-month high since June 13.
Australian markets advanced for the third day in a row and two separate reports showed diverging trends in business and consumer sentiments.
The Westpac-Melbourne Institute Index of Consumer Sentiment declined 3.0 percent to 81.2 in August from 83.8 in July, the ninth monthly decline totaling 22.9% in a row after reaching a high in November 2021.
The business confidence index rose to +7 in July from +2 in June after the capacity utilization rose to 86.7% from 84.9% in the period, according to the survey data released by NAB
The ASX 200 increased 0.13% to 7,029.80 and the All Ordinaries index closed 0.26% higher to 7,278.60.
Markets in India were closed.
- Scott Peters
- 08 Aug, 2022
- New York City
Axios Media Inc agreed to be acquired by Cox Enterprises in a deal that values the news publisher at $525 million.
The deal was announced by two companies in a press release on Monday and the price of the transaction was confirmed by two people familiar with the deal.
Axios co-founders Jim VandeHei, Mike Allen and Roy Schwartz will continue to hold substantial stakes in the company and will lead editorial and day-to-day business decisions, the press release noted.
Cox Enterprise said its other media assets, Atlanta Journal-Constitution, Dayton Daily News and other Ohio newspapers, are not expected to be impacted by the Axios transaction.
Axios HQ, the Axios communication software business, will be spun off as a separate company and will be owned by three founders with a minority investment from Cox Enterprise.
Axios has recently expanded beyond its political and business news to cover local news in 19 cities including Boston and San Francisco.
Three founders left Politico in 2016 to start Axios in the following year with a sharper focus on brief stories.
In late October 2021, Politico agreed to be acquired by German publishing firm Axle Springer for more than one billion dollars which Axios' CEO Jim VandeHei also helped to found in 2007.
Axios' first round of $10 million investment in 2017 included NBC News, Emerson Collective controlled by Lauren Powell Jobs, Greycroft Partners, and Atlantic Media owned by David and Katherine Bradley.
Cox Enterprises was already the largest investor in Axios Media prior to the announcement of the deal.
- Barry Adams
- 08 Aug, 2022
- New York City
Stocks on Wall Street rested on Monday in light trading after popular indexes advanced for the third week in a row.
Investors looked ahead to the inflation report after the July payroll increased more-than-expected 528,000.
Investors are increasingly factoring a larger rate hike of at least 75 basis points at the Fed Reserve's next policy meeting in September.
The S&P 500 index was nearly unchanged at 4,142.75 and the Nasdaq Composite index gained 0.07% or 8.43 to 12,644.46.
Semiconductor stocks were under pressure on the demand worries after NVIDIA said revenues from the sale of chips for gaming devices dropped sharply.
Futures of crude oil increased $1.0 to $89.98 and natural gas 42 cents to $7.64 a thermal unit.
Crude oil futures rose after a fire at Cuba's central fuel storage engulfed a third large tank on Monday.
On Friday, a lightning strike set off a fire at the fuel storage terminal located at the port of the industrial city of Matanzas, about 50 miles east of Havana.
The yield on 10-year Treasury notes eased to 2.768% and on the 2-year notes declined to 3.24%.
Berkshire Hathaway Inc increased 0.3% to $293.16 after the insurance and industrial conglomerate swung to a second quarter loss of 43.8 billion from a profit of $28.1 billion a year ago.
The GAAP accounting includes the quarterly loss of $53.0 billion in investment security investments.
Operating earnings in the second quarter increased to $9.3 billion from $6.7 billion a year ago.
Berkshire spent $1.0 billion to acquire its shares and increased the total to $4.2 billion in the first-half of 2022.
Insurance float, the net liabilities assumed by the company under insurance contracts, was relatively unchanged from the end of 2021 to approximately $147 billion.
Barrick Gold gained 4.5% to $16.37 after the mining company reported better-than-expected earnings on higher copper production.
Nvidia fell 7.5% to $175.66 after the advanced chipmaker reported second quarter revenues of $6.70 billion, below the company estimate of $8.10 billion.
The revenue shortfall was driven by a decline in gaming products after the end of Covid-19 pandemic driven boom and the rising macro headwinds.
Bed Bath & Beyond soared 37.8% to $11.22 and AMC Entertainment surged 15.1% to $25.53 on no company news.
Both stocks were driven higher after investors expressed optimism on popular chat boards and social media posts.
Palantir Technologies Inc declined 12.1% to $10.08 after the technology contractor for the federal government reported a wider quarterly loss.
Revenues in the second quarter increased 26% to $473 million and a net loss of $179 million or 9 cents a diluted share from $138.5 million or 7 cents a diluted share.
For the third quarter, the company guided revenues between $474 million and $475 million and adjusted income from operations between $54 million and $55 million.
European Markets Close Higher, Swiss Jobless Rate Held Steady
European markets traded higher following the market advances in the U.S. and Asia.
Investors overlooked the simmering tensions between the U.S. and China and shifted focus to regional economic news and corporate earnings.
China extended its military exercises in waters around Taiwan and stepped up cyberattacks against the island.
The eurozone investor confidence improved marginally in August according to a closely watched survey released by the think tank Sentix on Monday.
The investor confidence index rose to -25.2 in August from -26.4 in July but was lower than estimated by some analysts at -24.8 and the elevated energy prices and soaring inflation are keeping the optimism in check.
The unadjusted employment rate in Switzerland held steady at 2.0% in July on a monthly basis but fell from 2.8% rate a year ago, according to the data released by the State Secretariat for Economic Affairs or SECO on Monday.
Seasonally adjusted jobless rate was unchanged at 2.2% in July from the previous month.
The DAX index increased 0.8% to 13,687.69, the CAC-40 advanced 0.80% to 6,524.45, and the FTSE 100 index gained 0.6% to 7,482.37.
BioNTech SE declined 10.5% to $163.95 after the German biotech company reported weaker-than-expected quarterly results.
The Covid-19 vaccine maker and a development partner with Pfizer said its latest vaccine to treat the latest virus variants is expected to benefit fourth quarter results.
Siemens Energy gained 1.03% to 16.37 euros after the power equipment maker reported a wider quarterly loss.
Joules Group Plc gained 33.5% to 44 pence after the company said it is in discussion with the rival fashion house Next Plc for the sale of a strategic sale.
Next Plc increased 0.5% to 6,478.85 pence.
Veolia Environnement SA after the French water utility confirmed the sale of Suez's U.K. waste operations to Australia-based Macquarie Group for around 2.4 billion euros.
Pagegroup Plc declined 6.1% 424.13 pence after the recruiting group highlighted the weakening market for job placement.
Asian Markets Advance, China's Exports and Trade Surplus Soar
Asian stocks closed mixed and the indexes in Hong Kong fell on the worries that the higher rates in the U.S. will further depress valuation of future earnings stream of tech companies.
Tokyo stocks advanced on a positive domestic corporate outlook.
Suzuki Motor soared 10% after the company reiterated its annual outlook.
Canon Inc surged 4.6% to 3,370 yen after the camera and office equipment maker announced its second stock repurchase program this year.
Bandai Namco Holdings increased 4.06% to 10,020 yen after the video game maker reported a 55% jump in video game sales in the quarter ending in June.
SoftBank Group increased 0.7% to 5,695.0 yen and the company reported a loss of more than $23 billion in the quarter ending in June reflecting the decline in tech stocks around the world following the increase in interest rates.
China's trade surplus soared in July above $100 billion for the first-time after exports surged 18% but imports rose only 2.3% from a year ago on the sluggish demand for energy and raw materials.
The Nikkei 225 index gained 0.3% to 28,24924, the Hang Seng index fell 0.8% to 20,045.77, and the Sensex index gained 0.8% to 58,853.07.
Stocks in India advanced as investors shifted to focus on domestic earnings and weakening crude oil prices.
The Indian rupee held firm and closed at 79.51 against the U.S. dollar.
- Scott Peters
- 08 Aug, 2022
- New York City
Berkshire Hathaway Inc increased 0.3% to $293.16 after the insurance and industrial conglomerate swung to a second quarter loss of 43.8 billion from a profit of $28.1 billion a year ago.
The GAAP accounting includes the quarterly loss of $53.0 billion in investment security investments.
Operating earnings in the second quarter increased to $9.3 billion from $6.7 billion a year ago.
Berkshire spent $1.0 billion to acquire its shares and increased the total to $4.2 billion in the first-half of 2022.
Insurance float, the net liabilities assumed by the company under insurance contracts, was relatively unchanged from the end of 2021 to approximately $147 billion.
- Barry Adams
- 08 Aug, 2022
- New York City
Investors looked ahead to the inflation report after the July payroll increased more-than-expected 528,000.
Investors are increasingly factoring a larger rate hike of at least 75 basis points at the Fed Reserve's next policy meeting in September.
The S&P 500 index was nearly unchanged at 4,144.73 and the Nasdaq Composite index gained 0.07% or 8.43 to 12,665.73.
Futures of crude oil increased $1.0 to $89.98 and natural gas 42 cents to $7.64 a thermal unit.
The yield on 10-year Treasury notes eased to 2.768% and on the 2-year notes declined to 3.24%.
Barrick Gold gained 4.5% to $16.37 after the mining company reported better-than-expected earnings on higher copper production.
Revenues in the second quarter declined 1% to $2.8 billion and net income rose 19% to $488 million from $411 million a year ago.
Diluted earnings per share rose to 27 cents from 23 cents a year ago.
Gold production in the quarter was nearly unchanged at 1.04 million ounces and copper production rose 25% to 120 million pounds from a year ago.
Bed Bath & Beyond soared 37.8% to $11.22 and AMC Entertainment surged 15.1% to $25.53 on no company news.
Both stocks were driven higher after investors expressed optimism on popular chat boards and social media posts.
Berkshire Hathaway Inc increased 0.3% to $293.16 after the insurance and industrial conglomerate swung to a second quarter loss of 43.8 billion from a profit of $28.1 billion a year ago.
The GAAP accounting includes the quarterly loss of $53.0 billion in investment security investments.
Operating earnings in the second quarter increased to $9.3 billion from $6.7 billion a year ago.
Berkshire spent $1.0 billion to acquire its shares and increased the total to $4.2 billion in the first-half of 2022.
Insurance float, the net liabilities assumed by the company under insurance contracts, was relatively unchanged from the end of 2021 to approximately $147 billion.
BioNTech SE declined 10.5% to $163.95 after the German biotech company reported weaker-than-expected quarterly results.
The Covid-19 vaccine maker and a development partner with Pfizer said its latest vaccine to treat the latest virus variants is expected to benefit fourth quarter results.
NVIDIA Corp fell 7.5% to $175.66 after the advanced chipmaker reported second quarter revenues of $6.70 billion, below the company estimate of $8.10 billion.
Total revenues rose 3% from a year ago and fell 19% from the previous quarter after gaming revenues plunged 33% from a yar ago and dropped 44% from the previous quarter to $2.04 billion.
Gross margin in the second quarter declined to 43.7% from 64.8% a year ago.
The revenue shortfall was driven by a decline in gaming products after the end of Covid-19 pandemic driven boom and the rising macro headwinds.
Palantir Technologies Inc declined 12.1% to $10.08 after the technology contractor for the federal government reported a wider quarterly loss.
Revenues in the second quarter increased 26% to $473 million and a net loss of $179 million or 9 cents a diluted share from $138.5 million or 7 cents a diluted share.
For the third quarter, the company guided revenues between $474 million and $475 million and adjusted income from operations between $54 million and $55 million.
- Barry Adams
- 08 Aug, 2022
- New York City
Investors looked ahead to the inflation report after the July payroll increased more-than-expected 528,000.
Investors are increasingly factoring a larger rate hike of at least 75 basis points at the Fed Reserve's next policy meeting in September.
The Consumer Price Index data for July are scheduled to be released on August 10.
The inflation index increased 9.1% in June on an annual basis and 1.3% from the previous month on the sustained increase in food and energy prices.
The S&P 500 index was nearly unchanged at 4,144.73 and the Nasdaq Composite index gained 0.07% or 8.43 to 12,665.73.
Futures of crude oil increased $1.0 to $89.98 and natural gas 42 cents to $7.64 a thermal unit.
The yield on 10-year Treasury notes eased to 2.768% and on the 2-year notes declined to 3.24%.
Barrick Gold gained 4.5% to $16.37 after the mining company reported better-than-expected earnings on higher copper production.
Nvidia fell 7.5% to $175.66 after the advanced chipmaker reported second quarter revenues of $6.70 billion, below the company estimate of $8.10 billion.
The revenue shortfall was driven by a decline in gaming products after the end of Covid-19 pandemic driven boom and the rising macro headwinds.
Bed Bath & Beyond soared 37.8% to $11.22 and AMC Entertainment surged 15.1% to $25.53 on no company news.
Both stocks were driven higher after investors expressed optimism on popular chat boards and social media posts.
Palantir Technologies Inc declined 12.1% to $10.08 after the technology contractor for the federal government reported a wider quarterly loss.
Revenues in the second quarter increased 26% to $473 million and a net loss of $179 million or 9 cents a diluted share from $138.5 million or 7 cents a diluted share.
For the third quarter, the company guided revenues between $474 million and $475 million and adjusted income from operations between $54 million and $55 million.
BioNTech SE declined 10.5% to $163.95 after the German biotech company reported weaker-than-expected quarterly results.
The Covid-19 vaccine maker and a development partner with Pfizer said its latest vaccine to treat the latest virus variants is expected to benefit fourth quarter results.