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 Advance On Earnings and Positive Cues from Wall Street

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. 

Nasdaq Surges 2.6% On Positive Economic Data

Stocks on Wall Street gained for the second day in a row and investors looked beyond the recent tensions between the U.S. and China. 

Better-than-expected data on manufacturing activities in June and a surprise rebound in service activities in July  supported the market advance today. 

Investors increased exposure to the beaten down tech stocks after positive economic data. 

Orders for manufactured goods rose in June and marked the thirteenth increase in the last fourteen months. 

June goods orders rose 2.0% to $555.2 billion, the U.S. Census Bureau reported today. Orders in June rose following the revised 1.8% increase in May. 

The service sector unexpectedly at a faster pace in July, the data from the Institute of Supply Management showed Wednesday. 

The Services Purchasing Managers' Index increased to 56.7 after the index dropped to a 25-month low of 55.3 in June. 

"Growth continues

European Markets Advance, Retail Sales Fall, Wholesale Inflation Rises

European markets advanced and investors looked beyond the rising tensions between the U.S. and China after House Speaker Nancy Pelosi concluded her visit to Taiwan. 

Eurozone retail sales unexpectedly declined in June as higher prices and surging inflation weighed on consumer spending. 

Eurozone retail sales volume declined 3.7% from a year ago and fell 1.2% from the previous month in June, according to the report released by the eurostat Wednesday. 

A separate report from the statistics office showed producer prices remained elevated in June. 

Producer prices surged 35.8% from a year ago and slowed from 36.2% in May. On a monthly basis, the prices rose 1.1% from May. 

The wholesale prices surged after energy prices surged 92.8%and excluding energy, producer price inflation eased to 15.6% from 16.0% a month ago.

The DAX index gained 1.03% to 13,587.58, the CAC-40 index increased 0.97% to 6,472.06, and the FTSE 100 index added 0.49% to 7,445.68. 

June Manufactured Goods Orders Rose 2%

Orders for manufactured goods rose in June and marked the thirteenth increase in the last fourteen months. 

June goods orders rose 2.0% to $555.2 billion, the U.S. Census Bureau reported today.

Orders in June rose following the revised 1.8% increase in May. 

Shipments increased $6.3 billion or 1.1% to $551.9 billion following 2.1% in May. 

Shipments rose in twenty five of the last twenty six months. 

Unfilled orders increased $8.3 billion or 0.7% to $1,118.0 billion following a 0.3% increase in May. 

Unfilled orders rose for the twenty two consecutive months in a row. 

Inventories increased $3.3 billion or 0.4% to $801.5 billion following a 1.3% increase in May.

Last week, the bureau reported durable goods orders rose 1.9% in June to $272.6 billion, up eight of the last nine months. 

Robinhood's Assets Under Custody, Active Users, and Revenues Fell

Robinhood Markets Inc increased 13% to $10.42 after the online brokerage for stocks, derivatives, and crypto-currencies said it plans to layoff 23% of its staff, after cutting its staff by 9% in April.  

Second quarter revenues declined 44% to $318 million from $565 million and net loss shrank 44% to $295 million from $502 million a year ago. 

Diluted loss per share fell to 34 cents from $2.16 a year ago. 

On a sequential basis, monthly active users declined 1.9 million to 14.0 million and assets under custody plunged 31% to $64.2 billion but average revenues per user increased to $56 from $53.

PayPal Swings to Quarterly Loss

PayPal Holdings increased 9.6% to $98.30 after the payment processing company posted better-than-expected earnings and revised its outlook. 

PayPal said second quarter revenues increased 9% to $6.8 billion and said total payment volume on its platform increased 9% to $339.8 billion from a year ago. 

PayPal swung to a quarterly loss of $341 million or 29 cents a diluted share from $1.2 billion or $1.00 a diluted share a year ago. 

Free cash flow increased 22% to $1.3 billion from $1.1 billion a year ago. 

The company guided full-year 2022 revenues to increase 10% to $27.8 billion and total payment volume to jump 12% on spot basis to $1.4 trillion. 

PayPal estimates 2022 earnings per share to fall between $1.52 and $1.62. 

PayPal added 400,000 net new accounts in the quarter increasing its total active accounts 6% to 429 million and transaction processed increased 16% to 5.5 billion. 

Payments processed per active account increased 12% to 48.7 in the last twelve months. 

Expeditors International Sees No End of Supply Disruptions Soon

Expeditors International rose 0.8% to $103.05 after the company said second quarter revenues increased 28% to $4.6 billion. 

Net income rose 19% to $378 million from $316.3 million and diluted earnings per share increased 23% to $2.27 from $1.84 a year ago. 

The company guided current supply chain disruptions and logistics at ports, ocean freight shipping duration, and available air cargo capacity to improve despite the slowing down in the global economy. 

"We do not see signs that these conditions are likely to improve significantly any time soon. 

The unpredictability of COVID restrictions and lockdowns in China, as well as route restrictions and sanctions from the Ukraine conflict, continue to make global shipping a highly challenging business right now," said Bradley S. Powell, Senior Vice President and Chief Financial Officer. 

AMD Net Income Plunges 37% Despite Record Quarterly Revenues

Advanced Micro Devices, Inc fell 3.2% to $96.17 after the semiconductor chipmaker said revenues in the second quarter increased 70% to $6.55 billion and gross margin declined to 46% from 48% a year ago. 

Net income in the second quarter decreased 37% to $447 million from $710 million a year ago and diluted earnings per share fell 53% to 27 cents from 58 cents in the period. 

AMD reported eighth record quarterly revenues in a row. 

For the third quarter, AMD expects revenues to rise 55% from a year ago to $6.7 billion with a band of $200 million.

For the full-year revenues are expected to rise 60% to $26.3 billion with a band of $300 million. 

Movers: AMD, Airbnb, Expeditors International, Match Group, PayPal, Robinhood Markets, Starbucks

Stocks on Wall Street gained for the second day in a row and investors looked beyond the recent tensions between the U.S. and China. 

Stocks reacted to corporate earnings amid the worries of economic slowdown and steady drumbeat of Fed officials reiterating the central bank's commitment in lowering inflation to its target rate of 2%. 

The S&P 500 index added 0.7% to 4,121.72 and the Nasdaq Composite index advanced 1.5% to 12,528.20. 

Futures of crude oil increased 19 cents to $94.61 and natural gas rose a fraction to $7.70 a thermal unit. 

AMD fell 3.2% to $96.17 after the semiconductor chipmaker said revenues in the second quarter increased 70% to $6.55 billion and gross margin declined to 46% from 48% a year ago. 

Net income in the second quarter decreased 37% to $447 million from $710 million a year ago and diluted earnings per share fell 53% to 27 cents from 58 cents in the period. 

AMD reported eighth record quarterly revenues in a row. 

For the third quarter, AMD expects revenues to rise 55% from a year ago to $6.7 billion with a band of $200 million and for the full-year revenues to rise 60% to $26.3 billion with a band of $300 million. 

Airbnb Inc declined 5.5% to $109.88 after the vacation home rental booking platform said second quarter revenues jumped 58% to $2.1 billion. 

Airbnb swung to a profit of $379 million from a loss of $68 million in the year-ago quarter. 

The weaker-than-expected revenues disappointed investors despite Airbnb booking 103 million nights and experiences in the quarter. 

Expeditors International rose 0.8% to $103.05 after the company said second quarter revenues increased 28% to $4.6 billion. 

Net income rose 19% to $378 million from $316.3 million and diluted earnings per share increased 23% to $2.27 from $1.84 a year ago. 

The company guided current supply chain disruptions and logistics at ports, ocean freight shipping duration, and available air cargo capacity to improve despite the slowing down in the global economy. 

"We do not see signs that these conditions are likely to improve significantly any time soon. 

The unpredictability of COVID restrictions and lockdowns in China, as well as route restrictions and sanctions from the Ukraine conflict, continue to make global shipping a highly challenging business right now," said Bradley S. Powell, Senior Vice President and Chief Financial Officer. 

Match Group Inc plunged 20.9% to $60.67 after the online dating site operator reported weaker-than-expected revenues of $795 million in its latest quarter. 

The dating app operator also guided weaker revenues between $790 million and $800 million and adjusted earnings in the current quarter. 

The number of paid users increased 10% to 16.4 million with the average subscriber paying 3% more to $15.86. 

PayPal Holdings increased 9.6% to $98.30 after the payment processing company posted better-than-expected earnings and revised its outlook. 

PayPal said second quarter revenues increased 9% to $6.8 billion and said total payment volume on its platform increased 9% to $339.8 billion from a year ago. 

PayPal swung to a quarterly loss of $341 million or 29 cents a diluted share from $1.2 billion or $1.00 a diluted share a year ago. 

Free cash flow increased 22% to $1.3 billion from $1.1 billion a year ago. 

The company guided full-year 2022 revenues to increase 10% to $27.8 billion and total payment volume to jump 12% on spot basis to $1.4 trillion. 

PayPal estimates 2022 earnings per share to fall between $1.52 and $1.62. 

PayPal added 400,000 net new accounts in the quarter increasing its total active accounts 6% to 429 million and transaction processed increased 16% to 5.5 billion. 

Payments processed per active account increased 12% to 48.7 in the last twelve months. 

Robinhood Markets Inc increased 13% to $10.42 after the online brokerage for stocks, derivatives, and crypto-currencies said it plans to layoff 23% of its staff, after cutting its staff by 9% in April.  

Second quarter revenues declined 44% to $318 million from $565 million and net loss shrank 44% to $295 million from $502 million a year ago. 

Diluted loss per share fell to 34 cents from $2.16 a year ago. 

On a sequential basis, monthly active users declined 1.9 million to 14.0 million and assets under custody plunged 31% to $64.2 billion but average revenues per user increased to $56 from $53.

Starbucks Corporation increased 1.5% to $85.0 and the coffee chain operator said fiscal third-quarter revenues increased 9% to $8.15 billion. 

Net income fell to $912.9 million or 79 cents a share from $1.5 billion or 97 cents a share on higher wages and rising costs of raw materials. 

U.S. same store sales increased 9% driven by larger order size and 1% increase in traffic. The coffee chain also said customers are not trading down or reducing their spending. 

Stocks Advance with Earnings In Focus

Stocks on Wall Street gained for the second day in a row and investors looked beyond the recent tensions between the U.S. and China. 

Stocks reacted to corporate earnings amid the worries of economic slowdown and steady drumbeat of Fed officials reiterating the central bank's commitment in lowering inflation to its target rate of 2%. 

The S&P 500 index added 0.7% to 4,121.72 and the Nasdaq Composite index advanced 1.5% to 12,528.20. 

Futures of crude oil increased 19 cents to $94.61 and natural gas rose a fraction to $7.70 a thermal unit. 

Starbucks Corporation increased 1.5% to $85.0 and the coffee chain operator said fiscal third-quarter revenues increased 9% to $8.15 billion. 

Net income fell to $912.9 million or 79 cents a share from $1.5 billion or 97 cents a share on higher wages and rising costs of raw materials. 

U.S. same store sales increased 9% driven by larger order size and 1% increase in traffic. The coffee chain also said customers are not trading down or reducing their spending. 

Match Group Inc plunged 20.9% to $60.67 after the online dating site operator reported weaker-than-expected revenues of $795 million in its latest quarter. 

The dating app operator also guided weaker revenues between $790 million and $800 million and adjusted earnings in the current quarter. 

The number of paid users increased 10% to 16.4 million with the average subscriber paying 3% more to $15.86. 

Airbnb Inc declined 5.5% to $109.88 after the vacation home rental booking platform said second quarter revenues jumped 58% to $2.1 billion. 

Airbnb swung to a profit of $379 million from a loss of $68 million in the year-ago quarter. 

The weaker-than-expected revenues disappointed investors despite Airbnb booking 103 million nights and experiences in the quarter. 

Eurozone Retail Sales Fall, PPI Soar 

European markets advanced and investors looked beyond the rising tensions between the U.S. and China after House Speaker Nancy Pelosi concluded her visit to Taiwan. 

Eurozone retail sales unexpectedly declined in June as higher prices and surging inflation weighed on consumer spending. 

Eurozone retail sales volume declined 3.7% from a year ago and fell 1.2% from the previous month in June, according to the report released by the eurostat Wednesday. 

A separate report from the statistics office showed producer prices remained elevated in June. 

Producer prices surged 35.8% from a year ago and slowed from 36.2% in May. On a monthly basis, the prices rose 1.1% from May. 

The wholesale prices surged after energy prices surged 92.8%and excluding energy, producer price inflation eased to 15.6% from 16.0% a month ago.

The DAX index gained 0.4% to 13,507.98, the CAC-40 index increased 0.7% to 6,455.96, and the FTSE 100 index added 0.4% to 7,435.21. 

Uber Mobility and Delivery Segments Revenues Surge

Uber Technologies Inc rose 17.1% to $28.81 after the ride hailing platform said it turned cash flow positive for the first time. 

Uber said gross bookings increased 33% from a year ago to $29.1 billion and revenues soared 105% to $8.1 billion. 

Mobility segment revenues rose 120% to $3.55 billion, delivery segment revenues surged 43% to $2.7 billion, and freight revenues including a recent acquisition jumped six-fold to $1.8 billion. 

Revenues in the U.S. and Canada jumped 149% to $4.9 billion and in Europe including the Middle East and Africa rose 99% to $1.9 billion. 

Revenues in Latin America soared 57% to $481 million and in Asia Pacific jumped 14% to $810 million. 

Uber swung to a quarterly loss of $2.6 billion or $1.33 a diluted share driven in part by investment losses of $1.7 billion.

Net loss includes a pre-tax mark-to-market write down of investments by $1.7 billion relating to Uber

ZoomInfo Lifts Annual Revenue Guidance

ZoomInfo Technologies Inc soared 10.9% to $41.88 after the business information provider lifted its full-year guidance. 

Second quarter revenues increased 54% to $267.1 million and net income declined to $15.9 million or 4 cents a diluted share from $24.5 million or 5 cents a diluted a year ago. 

ZoomInfo revised full-year 2022 revenues to between $1.08 billion and $1.09 billion from the previous estimate between $1.06 billion and $1.07 billion. 

For the full-year, adjusted operating income estimated is revised higher between $433 million and $437 million from the previous estimate between $418 million and $424 million.

Simon Property Reported Flat Revenue Growth and Hiked Dividend

Simon Property Group fell 1.1% to $107.11 after the largest mall operators reported second quarter revenues edged up to $1.27 billion from $1.25 billion a year ago. 

Net income in the quarter declined to $569 million or $1.51 a diluted share from $706 million or $1.88 a diluted share a year ago. 

The occupancy at the U.S. malls and premium outlets increased to 93.9% at the end of June quarter from 91.8% a year ago.

Base minimum rent per square foot was $54.58 at the end of June. 

The company increased its quarterly dividend by 25 cents from a year ago to $1.75 a share payable on September 30, 2022 to shareholders of record on September 9, 2022. 

Avis Budget Net Income Soars On Travel Rebound

Avis Budget Group, Inc fell 7.6% to $167.83 after the car rental company said second quarter revenues rose 37% to $3.2 billion and net income soared 94% to $774 million from a year ago. 

Diluted earnings per share rose to $15.94 from $5.90 a year ago. 

The U.S. segment revenues rose 30% to $2.6 billion and international revenues surged 71% to $677 million from a year ago. 

Average daily rental revenue increased 9% in constant currency to $78.19 and vehicle fleet expanded 32% to 500,653 units from a year ago.