- Bridgette Randall
- 08 Aug, 2022
- Frankfurt
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.
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 0.9% to 13,691.37, the CAC-40 advanced 0.95% to 6,533.65, and the FTSE 100 index gained 0.6% to 7,487.37.
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.
- Brian Turner
- 08 Aug, 2022
- New York City
China's exports in July rose 18%, measured in the U.S. dollars, to $333 billion following a 17.9% increase in June, according to the data released by China Customs on Sunday.
China's yuan has depreciated about 6% against the U.S. dollar sofar in the year.
Trade surplus in the month surged to $101.3 billion, a surge of 75% from a year ago when exports reached $56.6 billion.
July trade surplus for the first time crossed $100 billion and surpassed the previous record set in June.
However, imports gained only 2.3% indicating weak rebound in the local demand for commodities and minerals.
China's export sector employs about 180 million people and account for about 0.9 percentage points of GDP growth in the first-half of 2022.
- Arjun Pandit
- 08 Aug, 2022
- New York City
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.
China continued its military exercises around Taiwan waters expressing its disapproval of the recent visit of the U.S. House Speaker Nancy Pelosi.
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.
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.
Adani Ports and Special Economic Zone Ltd declined 0.4% to 807.0 rupees after the company reported weak growth in revenues.
Total revenues in the June quarter rose marginally to 5,099.25 crore rupees from 5,073 crore rupees a year ago.
Profit-after-tax increased 16.9% to 1,091.56 crore rupees and the port operator handled record quarterly cargo of 91 million tons.
The company also reiterated its previous estimate of the annual cargo between 350 million and 360 million tons and operating earnings between 12,200 crore rupees and 12,600 crore rupees.
Bharti Airtel gained 0.2% to 704.95 rupees and the telecom operator said June quarter net income surged nearly five-fold.
- Barry Adams
- 05 Aug, 2022
- New York City
Stocks on Wall Street traded lower after a stronger-than-expected jobs report shifted the focus to the next rate hike size.
The U.S. labor market continued to expand for the nineteenth month in a row and has now regained the 22.0 million jobs lost during the first two months of pandemic in March and April 2020.
July payrolls increased 528,000 following the 372,000 additions in June, the nineteenth monthly increase in a row, the Bureau of Labor Statistics said Friday.
The unemployment rate declined to 3.5% from 3.6% in June and dropped to a five-decade low.
Both the non-farm employment and jobless rates have returned to their February 2020 pre-pandemic level.
The sharp accelerations in payroll additions surprised many economists who were looking for an increase of less than 265,000 according to an informal survey of six economists conducted by Ticker.com.
Investors worried that the larger-than-expected payrolls gains despite the slowing economic backdrop may support the Federal Reserve's case for raising rates at a faster pace at its next meeting.
The latest labor market data will certainly encourage the policymakers to lift rates by as much as 75 basis points at its next two-day meeting ending on September 21.
The yield on 10-year U.S. Treasury notes shot up to 2.82% and 2-year notes jumped to 3.23%.
The S&P 500 index fell 0.1% to 4,145.19 and the Nasdaq Composite declined 0.5% to 12,657.56.
For the week, the S&P 500 index gained 0.4% and the Nasdaq Composite added 2.1%.
Futures of crude oil fell 12 cents to $88.42 and natural gas declined 13 cents to $7.98 a thermal unit.
For the week, the West Texas Intermediate crude fell 9.7% and the Brent crude dropped 13.7%.
Carvana Co soared 40% to $46.98 after the online used-car retailer reported a rise in sales volume.
Online vehicle sales rose 9% to 117,564 from 105,185 and revenues increased 16% to $3.9 billion a year ago.
Carvana swung to a quarterly loss of $439 million from a profit of $45 million a year ago.
Total gross profit per vehicle declined to $3,368, a decrease of $1,752
Expedia Group closed up 0.3% to 102.52 and the online travel booking platform operator reported stronger-than-expected revenues and earnings in its latest quarterly report.
Gross bookings soared 26% to $26.1 billion as travel demand further improved on higher demand for lodging, air and other products.
Bookings for hotels soared 57% from a year ago and 8% higher than in the second quarter of 2019, the previous peak.
Second quarter revenues increased 51% to $3.2 billion and net loss shrank to $185 million from $301 million a year ago.
DoorDash decreased 0.8% to $80.29 after the delivery company reported revenues in the second quarter increased 30% to $1.6 billion and total orders rose 23% to 426 million.
Net loss surged to $263 million from $102 million a year ago
Lyft Inc soared 16.6% to $20.28 after the ride-hailing company reported second quarter revenues jumped 30% from a year agon and 19% from the previous month to $990.7 million.
Net loss in the quarter rose to $377.2 million from $251.9 million a year ago.
Active riders in the second quarter increased 15.9% to 19,8 million and revenue per active rider jumped 11.8% to $49.89.
Cautious European Markets Digest Positive Earnings
European markets traded sideways before and after the release of the keenly awaited July labor market survey in the U.S.
Investors were cautious on the simmering tensions between the U.S. and China.
China escalated its largest-ever military exercises near Taiwan and fired several missiles over the island nation.
At least five missiles landed as far as the southernmost islands of Okinawa, Japan.
China's foreign ministry placed sanctions on the U.S. House Speaker Nancy Pelosi and her immediate family members.
The U.S. added 528,000 payrolls in July after adding 372,000 in June, the U.S. Bureau of Labor Statistics reported Friday.
The sharply higher payroll additions were broad based and highlighted the strength in the labor market despite the economic slowdown but also raised the fears of larger interest rate hike at the next Fed's meeting.
Germany's industrial output increased in June on a sequential basis, according to the latest data from the Federal Statistical Office or destatis.
The seasonally and calendar adjusted production expanded at a faster pace of 0.4% in June after growing at 0.1% in May.
However, the factory production fell 0.5% from a year ago.
The DAX index fell 0.6% to 13,573.83, the CAC-40 index declined 0.6% 6,472.95, and the FTSE 100 index inched down 0.1% to 7,439.78.
London Stock Exchange Group gained 3.8% to 8,456 pence after the financial exchanges operator announced its plan to buy back its shares.
WPP Plc plunged 5.6% to 839.28 pence after the advertising group reported sales growth but the worries of global economic slowdown weighed.
Deutsche Post AG increased 4.5% to 41.75 euros after the parent of DHL posted better-than-expected quarterly results.
Pirelli & C. SpA increased 4.3% to 4.43 euros after the tiremaker reported first-half sales rose 24.6% to 3.2 billion euros and net income surged 76% to 233.0 million from 131.6 million euros a year ago.
The sales increase was driven by roughly 20% increase in prices and volume mix and the positive impact from the foreign exchange contributed 5% points.
Tire tire sales volume increased 1% in the first-half.
Credit Suisse Group AG fell 0.4% to 5.25 Swiss francs on the local news that the global financial services company is looking to eliminate "thousands" of positions.
Asian Markets Brave Higher, China Flies Missiles Over Taiwan
Asian markets traded higher despite the simmering tensions between the U.S. and China.
China stepped up its military exercises and in a grand display of its military might fired several missiles over Taiwan for the first time. China also launched missiles that landed near Japan.
Moreover, China's foreign ministry imposed sanctions on the U.S. House Speaker Nancy Pelosi and against her immediate family.
Stocks in Hong Kong gained followed by advances in tech sector on the hopes that the tensions escalations with the U.S. may deepen the semiconductor chip shortages.
Tokyo stocks gained despite the rising military tensions in the region as investors reacted to the latest batch of positive earnings from Nippon Steel and Kikkoman.
Fast Retailing, the parent of Uniqlo, announced its plans of aggressive expansion across North America.
The Nikkei 225 index increased 0.9% to 28,175.87, the Hang Seng index inched up 0.1% to 20,201.94, and the Sensex index gained 0.1% to 58,387.93.
The Reserve Bank of India lifted its key lending rate by 50 basis points, the third rate increase in a row.
The central bank lifted the repo rate by 50 basis points to the pre-pandemic level of 5.4% and retained real GDP growth estimate at 7.2% and inflation estimate at 6.7% for the current fiscal year.
The repo rate is the rate at which commercial banks in India borrow from the Reserve Bank against the collateral of Indian government bonds or other approved treasury securities.
Australian market indexes closed at two-month highs after the gains in mineral and mining sector outweighed the weakness in energy sector.
The ASX 200 Index gained 0.6% to 7,015.60 and the All Ordinaries Index increased 0.6% to 7,250.30.
- Scott Peters
- 05 Aug, 2022
- New York City
Lyft Inc soared 14.5% to $19.92 after the ride-hailing company reported second quarter revenues jumped 30% from a year agon and 19% from the previous month to $990.7 million.
Net loss in the quarter rose to $377.2 million from $251.9 million a year ago.
Active riders in the second quarter increased 15.9% to 19,8 million and revenue per active rider jumped 11.8% to $49.89.
- Scott Peters
- 05 Aug, 2022
- New York City
DoorDash increased 1.1% to $82.30 after the delivery company reported revenues in the second quarter increased 30% to $1.6 billion and total orders rose 23% to 426 million.
Net loss surged to $263 million from $102 million a year ago.
Excluding the recent acquisition Wolt, marketplace gross order volume grew 22% from a year ago to $12.8 billion, driven primarily by growth in average order frequency and new customers.
The price inflation lifted the average order size, but its contribution to the gross order volume was small.
Excluding Wolt, second quarter loss measured following the GAAP was $218 million.
Wolt GAAP Net Loss for the period from May 31 through the end of second quarter in June was $45 million.
The delivery company believes that its penetration remains below 5% of the restaurant delivery market and well below 1% of the convenience, groceries and non-food spending.
DoorDash is investing in its logistics capabilities to transform the demand-generating platform, where the selection is limited to restaurants or merchants with delivery staff, to logistics-enabled platform where the company can provide more reliable and consistent delivery experience.
- Scott Peters
- 05 Aug, 2022
- New York City
Expedia Group fell 1.1% to 101.02 and the online travel booking platform operator reported stronger-than-expected revenues and earnings in its latest quarterly report.
Gross bookings soared 26% to $26.1 billion as travel demand further improved on higher demand for lodging, air and other products.
Bookings for hotels soared 57% from a year ago and 8% higher than in the second quarter of 2019, the previous peak.
Second quarter revenues increased 51% to $3.2 billion and net loss shrank to $185 million from $301 million a year ago.
- Brian Turner
- 05 Aug, 2022
- New York City
The U.S. labor market continued to expand for the nineteenth month in a row and has now regained the 22.0 million jobs lost during the first two months of pandemic in March and April 2020.
July payrolls increased 528,000 following the 372,000 additions in June, the Bureau of Labor Statistics said Friday.
The unemployment rate declined to 3.5%.
Both the non-farm employment and jobless rates have returned to their February 2020 pre-pandemic level.
The sharp accelerations in payroll additions surprised many economists who were looking for an increase of less than 265,000 according to an informal survey of six economists conducted by Ticker.com.
Investors worried that the larger-than-expected payrolls gains despite the slowing economic backdrop may support the Federal Reserve's case for raising rates at a faster pace at its next meeting.
The latest labor market data will certainly encourage the policymakers to lift rates by as much as 75 basis points at its next two-day meeting ending on September 21.
The yield on 10-year U.S. Treasury notes shot up to 2.85% and 2-year notes jumped to 3.255%.
While the demand for workers remains strong the availability is not rebounding as strongly as it was in the beginning of 2022.
The labor force participation rate declined to 62.1% in July from 62.2% in June, its third monthly decline in a row.
The imbalance in the supply and demand of workers is showing up in wages.
The average hourly wages rose by 15 cents, or 0.5% from the previous month to $32.27 and the annual rate of wage growth was unchanged at 5.2%.
The smaller increases in wage growth are certainly lagging the broader inflation in the economy.
- Barry Adams
- 05 Aug, 2022
- New York City
Stocks on Wall Street traded lower after stronger-than-expected jobs report shifted the focus to the next rate hike amount.
July payrolls increased 528,000 following the 372,000 additions in June, the Bureau of Labor Statistics said Friday.
The unemployment rate declined to 3.5%.
Both the non-farm employment and jobless rates have returned to their February 2020 pre-pandemic level.
The sharp accelerations in payroll additions surprised many economists who were looking for the increase of less than 265,000 according to an informal survey of six economists conducted by Ticker.com.
Investors worried that the larger-than-expected payrolls gains despite the slowing economic backdrop may support the Federal Reserve's case for raising rates at a faster pace at its next meeting.
The latest labor market data will certainly encourage the policymakers to lift rate by as much as 75 basis points at its next two-day meeting ending on September 21.
The yield on 10-year U.S. Treasury notes shot up to 2.85% and 2-year notes jumped to 3.255%.
The S&P 500 index fell 0.7% to 4,123.42 and the Nasdaq Composite declined 1.1% to 12,588.30.
Expedia Group fell 1.1% to 101.02 and the online travel booking platform operator reported stronger-than-expected revenues and earnings in its latest quarterly report.
Gross bookings soared 26% to $26.1 billion as travel demand further improved on higher demand for lodging, air and other products.
Bookings for hotels soared 57% from a year ago and 8% higher than in the second quarter of 2019, the previous peak.
Second quarter revenues increased 51% to $3.2 billion and net loss shrank to $185 million from $301 million a year ago.
DoorDash increased 1.1% to $82.30 after the delivery company reported revenues in the second quarter increased 30% to $1.6 billion and total orders rose 23% to 426 million.
Net loss surged to $263 million from $102 million a year ago
Lyft Inc soared 14.5% to $19.92 after the ride-hailing company reported second quarter revenues jumped 30% from a year agon and 19% from the previous month to $990.7 million.
Net loss in the quarter rose to $377.2 million from $251.9 million a year ago.
Active riders in the second quarter increased 15.9% to 19,8 million and revenue per active rider jumped 11.8% to $49.89.
- Bridgette Randall
- 05 Aug, 2022
- Frankfurt
European markets traded sideways before and after the release of the keenly awaited July labor market survey in the U.S.
Investors were cautious on the simmering tensions between the U.S. and China.
China escalated its largest-ever military exercises near Taiwan and fired several missiles over the island nation.
At least five missiles landed as far as the southernmost islands of Okinawa, Japan.
China's foreign ministry placed sanctions on the U.S. House Speaker Nancy Pelosi and her immediate family members.
The U.S. added 528,000 payrolls in July after adding 372,000 in June, the U.S. Bureau of Labor Statistics reported Friday.
The sharply higher payroll additions were broad based and highlighted the strength in the labor market despite the economic slowdown but also raised the fears of larger interest rate hike at the next Fed's meeting.
Germany's industrial output increased in June on a sequential basis, according to the latest data from the Federal Statistical Office or destatis.
The seasonally and calendar adjusted production expanded at a faster pace of 0.4% in June after growing at 0.1% in May despite the persistent supply chain problems and a four-decade high inflation.
However, the factory production fell 0.5% from a year ago.
Market sentiment win the region was subdued after the Bank of England issued negative views on the economy and guided longer and deeper recession starting as early as this year.
The central bank also said inflation is likely to peak at 13% before turning lower.
The DAX index fell 0.2% to 13,635.10, the CAC-40 index declined 0.3% 6,492.45, and the FTSE 100 index inched up 0.2% to 7,465.88.
London Stock Exchange Group gained 1.6% to 8,264 pence after the financial exchanges operator announced its plan to buy back its shares.
WPP Plc plunged 9.5% to 813.20 pence after the advertising group reported sales growth but the worries of global economic slowdown weighed.
Deutsche Post AG increased 5.5% to 42.15 euros after the parent of DHL posted better-than-expected quarterly results.
Pirelli & C. SpA increased 4.4% to 4.44 euros after the tiremaker reported first-half sales rose 24.6% to 3.2 billion euros and net income surged 76% to 233.0 million from 131.6 million euros a year ago.
The sales increase was driven by roughly 20% increase in prices and volume mix and the positive impact from the foreign exchange contributed 5% points.
Tire tire sales volume increased 1% in the first-half.
Credit Suisse Group AG fell 0.4% to 5.24 Swiss francs on the local news that the global financial services company is looking to eliminate "thousands" of positions.
- Arjun Pandit
- 05 Aug, 2022
- New York City
Asian markets traded higher despite the simmering tensions between the U.S. and China.
China stepped up its military exercises and in a grand display of its military might fired several missiles over Taiwan for the first time. China also launched missiles that landed near Japan.
Moreover, China's foreign ministry imposed sanctions on the U.S. House Speaker Nancy Pelosi and against her immediate family.
Stocks in Hong Kong gained followed by advances in tech sector on the hopes that the tensions escalations with the U.S. may deepen the semiconductor chip shortages.
Tokyo stocks gained despite the rising military tensions in the region as investors reacted to the latest batch of positive earnings from Nippon Steel and Kikkoman.
Fast Retailing, the parent of Uniqlo, announced its plans of aggressive expansion across North America.
The Nikkei 225 index increased 0.9% to 28,175.87, the Hang Seng index inched up 0.1% to 20,201.94, and the Sensex index gained 0.1% to 58,387.93.
The Reserve Bank of India lifted its key lending rate by 50 basis points, the third rate increase in a row.
The central bank lifted the repo rate by 50 basis points to the pre-pandemic level of 5.4% and retained real GDP growth estimate at 7.2% and inflation estimate at 6.7% for the current fiscal year.
The repo rate is the rate at which commercial banks in India borrow from the Reserve Bank against the collateral of Indian government bonds or other approved treasury securities.
Australian market indexes closed at two-month highs after the gains in mineral and mining sector outweighed the weakness in energy sector.
The ASX 200 Index gained 0.6% to 7,015.60 and the All Ordinaries Index increased 0.6% to 7,250.30.
- Brian Turner
- 04 Aug, 2022
- New York City
Benchmark stock indexes wavered in choppy trading ahead of the jobs report and crude oil continued to slide and dropped to a six-month low.
The S&P 500 index was nearly unchanged at 4,151.94 and the Nasdaq Composite index increased 0.4% to 12,720.58.
Futures of crude oil declined $2.31 to $88.35 a barrel and natural gas fell 9 cents to $8.16 a thermal unit.
Crude oil futures extended losses this week to 10% and fell to the lows last seen February 3.
On a weekly basis, West Texas Intermediate crude oil in New York and Brent crude in London, U.K. are down the most since April on the global recession worries and falling energy demand from China and rising inventories in the U.S.
Falling demand and rising supply have changed the direction of gasoline prices at retail gas stations.
Demand dropped to 8.54 million barrels a day from 9.25 million barrels a day in the previous week, according to the U.S. Energy Information Administration. Gasoline supplies also increased by 200,000 barrels to 225.3 millions of barrels
The current demand for gasoline is in-line with the demand levels seen in July 2020, when Covid-19 restrictions kept most drivers away from roads.
If the current demand remains low and gas supplies continue to rise, crude oil prices on exchanges and gasoline prices at retail stations are likely to fall further.
Gasoline prices at pumps across the nation dropped for the 50th day in a row, AAA reported today.
Average gasoline prices at retail gas stations fell to $4.14 a gallon, 67 cents lower than a month ago and 90 cents below the peak in June.
Gasoline prices are still $1.05 higher than a year ago.
Average regular gasoline prices on Thursday ranged between $3.65 and $5.54 a gallon.
The West Texas Intermediate crude oil price was $101.31 a barrel on July 29, 2022, $3.60 above the previous week
- Barry Adams
- 04 Aug, 2022
- New York City
Benchmark stock indexes wavered in choppy trading ahead of the jobs report and crude oil continued to slide and dropped to a six-month low.
The S&P 500 index was nearly unchanged at 4,151.94 and the Nasdaq Composite index increased 0.4% to 12,720.58.
Futures of crude oil declined $2.31 to $88.35 a barrel and natural gas fell 9 cents to $8.16 a thermal unit.
Crude oil futures extended losses this week to 10% and fell to the lows last seen February 3.
On a weekly basis, West Texas Intermediate crude oil in New York and Brent crude in London, U.K. are down the most since April on the global recession worries and falling energy demand from China and rising inventories in the U.S.
Falling demand and rising supply have changed the direction of gasoline prices at retail gas stations.
Demand dropped to 8.54 million barrels a day from 9.25 million barrels a day in the previous week, according to the U.S. Energy Information Administration. Gasoline supplies also increased by 200,000 barrels to 225.3 millions of barrels
The current demand for gasoline is in-line with the demand levels seen in July 2020, when Covid-19 restrictions kept most drivers away from roads.
If the current demand remains low and gas supplies continue to rise, crude oil prices on exchanges and gasoline prices at retail stations are likely to fall further.
Gasoline prices at pumps across the nation dropped for the 50th day in a row, AAA reported today.
Average gasoline prices at retail gas stations fell to $4.14 a gallon, 67 cents lower than a month ago and 90 cents below the peak in June.
Gasoline prices are still $1.05 higher than a year ago.
Average regular gasoline prices on Thursday ranged between $3.65 and $5.54 a gallon.
The yield on 10-year Treasury notes edged lower to 2.66% ahead of the monthly payroll survey data tomorrow. U.S. Treasury bond yields have been volatile for the last week and the yields on 10-year notes have fallen as low as 2.52% this week.
Initial claims of unemployment at the end of last week rose 6,000 to 260,000, according to the latest report from the Labor Department.
The Employment Situation Report, household survey measuring labor force status, for July is scheduled to be released Friday.
The survey is expected to show an increase between 255,000 and 263,000 in payrolls after expanding by 372,000 in June.
Earnings season continued and investors are awaiting another batch of earnings after the market closes.
Internet retailers were in focus after the South America focused Mercado Libre posted results exceeding investors expectations.
Alibaba Group said fiscal first quarter revenues increased to 205.6 billion renminbi and net income plunged 50% to 22.73 billion renminbi or 8.51 renminbi per American Depositary Share.
Domestic China commerce business in the quarter declined in mid-single-digit from a year ago on the resurgent coronavirus and widespread lockdowns.
However, the China commerce business began to improve in late May and June.
China-focused retailers JD.com and Pinduoduo gained 4% after the release of Alibaba.com quarterly results.
Ceridian HCM Holding Inc soared 9.8% to $64.89 after the payroll processing company posted second quarter earnings ahead of investor's expectations and issued a third quarter outlook ahead of expectations.
Revenues increased 20.3% to $301.2 million and net loss shrank to $19.8 million from $25.8 million a year ago.
The company guided third quarter total revenue between $304 million and $307 million, an increase of 18% to 19% on a GAAP basis and 20% to 21% on a constant currency basis.
Shake Shack Inc plunged 7.5% to $50.42 after the fast food chain operator reported weaker-than-anticipated quarterly earnings.
Shake Shack said second quarter revenues increased 23.1% to $230.8 million and same store sales rose 10.1% from a year ago.
The fast food chain operator swung to a quarterly loss of $1.2 million from $1.9 million a year ago.
Largest Rate Hike In UK In 27 Years, German Factory Orders Fell
European markets traded higher after Germany's factory orders fell less than expected and investors looked beyond the rising tensions between the U.S. and China.
German factory orders fell 9% on an annual basis in June after dropping 3.2% in May, according to data released by Destatis.
On a monthly basis, orders fell 0.4% in June from May.
The Bank of England lifted its key lending rate by 50 basis points to 1.75%, the largest increase in twenty seven years.
The central bank forecasted inflation to peak at 13% and the central bank forecasted economic recession may start as early as this year and last as long as five quarters.
The DAX index rose 0.6% to 13,661.26, the CAC-40 index increased 0.6% to 6,508.21, and the FTSE 100 index inched up a fraction to 7,446.52.
Investors reacted to the latest batch of corporate results.
Credit Agricole SA soared 5% after the French lender reported better than expected earnings but the Dutch lender ING Group fell 2.8% after its quarterly earnings disappointed investors.
Glencore PLC gained 2.7% after the commodities trader reported first-half profit more than doubled to record high.
Asian Markets Follow Higher Closing In New York
Stocks in Asia generally closed higher and the indexes in China surged despite the ongoing military exercises near the island nation Taiwan.
The benchmark index in Japan closed higher following the overnight surge in New York trading.
Toyota Motors fell 3.0% to 2,091.50 yen after the largest automaker reported a sharp fall in quarterly profit of 42%.
Revenues rose 7% to 8.5 trillion yen and comprehensive income plunged 42% to 1.7 billion yen.
Casio Computer surged 6.3% to 1,386.0 after the electronics company reported second quarter revenues rose 3% 61.3 billion yen and net income declined 6.5% to 5.7 billion yen.
Subaru Corp jumped 8.3% to 2,386.0 yen after the automaker reported second quarter revenues surged 33% to 834 billion yen and net income soared 47% to 27 billion yen.
Earnings per share jumped to 35.5 yen from 24.2 yen a year ago.
The Nikkei 2005 index increased 0.7% to 27,932.20, the Hang Seng index rose 2.2% to 20.174.04. and the Sensex index closed down 0.1% to 58,298.80.
Indexes in India closed down after rallying for six days in a row ahead of interest rate decision Friday.
The Reserve Bank of India is expected to lift its key lending rate between 35 and 50 basis points.
- Barry Adams
- 04 Aug, 2022
- New York City
Stocks rested on Wall Street after rallying for two days in a row and investors noted the rising bearishness in the energy markets.
The S&P 500 index was nearly unchanged at 4,155.07 and the Nasdaq Composite index increased 0.3% to 12,708.50.
Futures of crude oil declined $2.60 to $88.07 a barrel and natural gas fell 14 cents to $8.14 a thermal unit.
Crude oil futures extended losses this week to 10% and fell to the lows last seen February 3.
On a weekly basis, West Texas Intermediate crude oil and Brent crude in London are down the most since April on the global recession worries and falling demand from China and rising inventories in the U.S.
Exxon Mobil Corp declined 2.5%, Chevron Corp fell 1.4%, Marathon Petroleum decreased 1.3%, and Schlumberger NV dropped 2.5%.
Earnings season continued and investors are awaiting another batch of earnings after the market closes.
Internet retailers were in focus after the South America focused Mercado Libre posted results exceeding investors expectations.
Alibaba Group said fiscal first quarter revenues increased to 205.6 billion renminbi and net income plunged 50% to 22.73 billion renminbi or 8.51 per American Depositary Share.
Domestic China commerce business in the quarter declined in mid-single-digit from a year ago on the resurgent coronavirus and widespread lockdowns.
However, the China commerce business began to improve in late May and June.
China-focused retailers JD.com and Pinduoduo gained 4% after the release of Alibaba.com quarterly results.
Ceridian HCM Holding Inc soared 9.8% to $64.89 after the payroll processing company posted second quarter earnings ahead of investor's expectations and issued a third quarter outlook ahead of expectations.
Revenues increased 20.3% to $301.2 million and net loss shrank to $19.8 million from $25.8 million a year ago.
The company guided third quarter total revenue between $304 million and $307 million, an increase of 18% to 19% on a GAAP basis and 20% to 21% on a constant currency basis.
Restaurant Brands International 7.2% to $58.93 after the parent of Burger King, Tim Hortons and Popeyes said global same-store sales rose 9% driven by the strength in Burger King and Tim Hortons.
Second quarter revenues rose 14.2% to $1.6 billion and net income fell to $346 million from $391 million a year ago.
Diluted earnings per share declined to 76 cents from 84 cents a year ago.
Burger King's system-wide sales rose 14.6% and at Tim Hortons' gained 16.3% from a year ago.
Shake Shack Inc plunged 7.5% to $50.42 after the fast food chain operator reported weaker-than-anticipated quarterly earnings.
Shake Shack said second quarter revenues increased 23.1% to $230.8 million and same store sales rose 10.1% from a year ago.
The fast food chain operator swung to a quarterly loss of $1.2 million from $1.9 million a year ago.
- Barry Adams
- 04 Aug, 2022
- New York City
Stocks rested on Wall Street after rallying for two days in a row and investors noted the rising bearishness in the energy markets.
The S&P 500 index was nearly unchanged at 4,155.07 and the Nasdaq Composite index increased 0.3% to 12,708.50.
Futures of crude oil declined $2.60 to $88.07 a barrel and natural gas fell 14 cents to $8.14 a thermal unit.
Crude oil futures extended losses this week to 10% and fell to the lows last seen February 3.
On a weekly basis, West Texas Intermediate crude oil and Brent crude in London are down the most since April on the global recession worries and falling demand from China and rising inventories in the U.S.
The yield on 10-year Treasury notes edged lower to 2.694% ahead of the monthly payroll survey data tomorrow.
Initial claims of unemployment at the end of last week rose 6,000 to 260,000, according to the latest report from the Labor Department.
Earnings season continued and investors are awaiting another batch of earnings after the market closes.
Internet retailers were in focus after the South America focused Mercado Libre posted results exceeding investors expectations.
Alibaba Group said fiscal first quarter revenues increased to 205.6 billion renminbi and net income plunged 50% to 22.73 billion renminbi or 8.51 per American Depositary Share.
Domestic China commerce business in the quarter declined in mid-single-digit from a year ago on the resurgent coronavirus and widespread lockdowns.
However, the China commerce business began to improve in late May and June.
China-focused retailers JD.com and Pinduoduo gained 4% after the release of Alibaba.com quarterly results.
Ceridian HCM Holding Inc soared 9.8% to $64.89 after the payroll processing company posted second quarter earnings ahead of investor's expectations and issued a third quarter outlook ahead of expectations.
Revenues increased 20.3% to $301.2 million and net loss shrank to $19.8 million from $25.8 million a year ago.
The company guided third quarter total revenue between $304 million and $307 million, an increase of 18% to 19% on a GAAP basis and 20% to 21% on a constant currency basis.
Shake Shack Inc plunged 7.5% to $50.42 after the fast food chain operator reported weaker-than-anticipated quarterly earnings.
Shake Shack said second quarter revenues increased 23.1% to $230.8 million and same store sales rose 10.1% from a year ago.
The fast food chain operator swung to a quarterly loss of $1.2 million from $1.9 million a year ago.
Largest Rate Hike In UK In 27 Years, German Factory Orders Fell
European markets traded higher after Germany's factory orders fell less than expected and investors looked beyond the rising tensions between the U.S. and China.
German factory orders fell 9% on an annual basis in June after dropping 3.2% in May, according to data released by Destatis.
On a monthly basis, orders fell 0.4% in June from May.
The Bank of England lifted its key lending rate by 50 basis points to 1.75%, the largest increase in twenty seven years.
The central bank forecasted inflation to peak at 13% and the central bank forecasted economic recession may start as early as this year and last as long as five quarters.
The DAX index rose 0.6% to 13,661.26, the CAC-40 index increased 0.6% to 6,508.21, and the FTSE 100 index inched up a fraction to 7,446.52.
Investors reacted to the latest batch of corporate results.
Credit Agricole SA soared 5% after the French lender reported better than expected earnings but the Dutch lender ING Group fell 2.8% after its quarterly earnings disappointed investors.
Glencore PLC gained 2.7% after the commodities trader reported first-half profit more than doubled to record high.
Asian Markets Follow Higher Closing In New York
Stocks in Asia generally closed higher and the indexes in China surged despite the ongoing military exercises near the island nation Taiwan.
The benchmark index in Japan closed higher following the overnight surge in New York trading.
Toyota Motors fell 3.0% to 2,091.50 yen after the largest automaker reported a sharp fall in quarterly profit of 42%.
Revenues rose 7% to 8.5 trillion yen and comprehensive income plunged 42% to 1.7 billion yen.
Casio Computer surged 6.3% to 1,386.0 after the electronics company reported second quarter revenues rose 3% 61.3 billion yen and net income declined 6.5% to 5.7 billion yen.
Subaru Corp jumped 8.3% to 2,386.0 yen after the automaker reported second quarter revenues surged 33% to 834 billion yen and net income soared 47% to 27 billion yen.
Earnings per share jumped to 35.5 yen from 24.2 yen a year ago.
The Nikkei 2005 index increased 0.7% to 27,932.20, the Hang Seng index rose 2.2% to 20.174.04. and the Sensex index closed down 0.1% to 58,298.80.