- Bridgette Randall
- 22 Jul, 2022
- Frankfurt
European markets inched higher and the latest private survey estimated economic growth is slowing in the eurozone.
Private sector contracted for the first time in 15 months on weaker output and new orders, the Purchasing Managers' Index released by S&P Global showed Friday.
The index for output declined to 49.4 in July from 52.0 in June, the index for service fell to 50.6 from 53.0, and manufacturing dropped to 49.6 from 52.1 in the corresponding months.
The flash estimate readings will be revised in the second estimate in the next few weeks.
The survey showed that the factory output decreased sharply and service output growth slowed.
The ECB also lifted its key lending rate for the first time in 11 years this week, and the rate increase of half-percentage point was larger than expected.
More worrisome, backlog of orders for both manufacturing and services also declined in the month, a first contraction in eighteen months.
The DAX index increased 0.05% to 13,253.68, the CAC-40 index gained 0.3% to 6,216.82, and the FTSE 100 index inched up 0.08% to 7,276.37.
The euro edged lower and closed at $1.0193 and the British pound fetched $1.197.
Schindler Holding AG declined 3.9% to 175.0 francs after the Swiss elevator and escalator maker cut its 2022 outlook citing China market contraction and Covid-19 related restrictions.
Second quarter revenues declined 5.6% to 2.7 billion francs and net income fell 37.2% to 152 million francs.
Diluted earnings per share fell to 1.30 francs from 2.12 francs.
Schindler guided annual revenues to rise between -2% and 2% from the previous estimate between 1% and 6% in local currencies and full-year net income between 620 million and 660 million francs.
MTU Aero Engines AG increased 2.2% to 193.15 euros after the German aerospace company won orders worth $600 million of orders at the Farnborough International Airshow.
"New orders for the geared turbofan (GTF) make up the lion
- Arjun Pandit
- 22 Jul, 2022
- Frankfurt
Asian markets generally closed higher and the Nikkei index in Tokyo advanced for the seventh session in a row.
Kawasaki Kisen soared 11% and Nippon Yusen increased 4.02% after the shipping companies lifted full-year earnings outlook.
Japan's core consumer inflation, excluding energy and food prices, remained above the Bank of Japan's target rate of 2% for the third month in a row in June.
A separate report showed Japan's manufacturing slowed to a 10-month low in July on the continued supply chain disruptions and slowing orders.
The Nikkei index increased 0.4% to 27,914.66, the Hang Seng index rose 0.2% to 20,609.14, and the Sensex index increased 0.7% to 56,072.23.
China imposed 8 billion yen or $1.2 billion on taxi ride hailing platform Didi Global for cyber securities and data violations.
The Sensex index in Mumbai advanced for the sixth day in a row on the earnings optimism from banks and rising demand for vehicles and consumer goods.
The Sensex and Nifty indexes ended at the session's high and advanced for the sixth day in a row.
For the week, the Sensex gained 3.6% and the Nifty advanced 3.4%.
The rupee traded near its record low and closed at 79.87 against one U.S. dollar.
HDFC, HDFC Bank, UPL, and Grasim advanced between 2% and 3%.
Tata Consumer Products, Infosys, Tech Mahindra, Power Grid Corp, and NTPC declined between 1% and 2%.
UltraTech Cement soared 4.9% to 6,431.20 rupees after the company reported better than expected earnings.
Revenues from operations increased 26.1% to 15,272 crore rupees.
Net income declined to 1,537.11 crore rupees or 54.91 a diluted share from 1,715.58 crore rupees or 59.00 rupees a share.
- Barry Adams
- 22 Jul, 2022
- New York City
Benchmark indexes on Wall Street traded lower led by a decline in tech and advertising stocks after weak results from Snap and Twitter.
The S&P 500 index fell 0.6% to 3,973.73 and the Nasdaq Composite index declined 1.5% to 11,881.88.
Better-than-expected earnings from Netflix and Tesla lifted tech stocks in the week but the market rally halted after Snap reported wider loss and Twitter said revenues fell last quarter.
The two popular indexes are still set to close higher for the week and are hovering near the five-week high.
Futures of crude oil increased 63 cents to $96.98 a barrel and natural gas advanced 37 cents to $8.29 a unit.
The yield on 10-year Treasury notes declined 11 ticks to 2.79% and the euro inched higher to $1.0218 and the dollar eased against the Japanese yen to 136.14.
American Express rose 2.3% to $153.49 after the financial services company said total purchase volume on its network jumped 25% to $394 billion and revenues net of interest surged 31% to $13.4 billion..
Net income in the quarter declined to 14% to $1.96 billion or $2.57 a diluted share from $2.28 billion or $2.80 a diluted share.
Snap Inc plunged 38.95% to $10.05 after the online chat platform reported slowest revenue growth since going public and sharply wider quarterly loss.
Snap was downgraded by a number of analysts after the weak quarterly results.
Twitter Inc declined 1.1% to $39.10 after the social media platform operator said second quarter revenues declined 1% to $1.18 billion.
Net loss in the quarter was $270 million or a loss of 35 cents a diluted share compared to net income of $66 million or 8 cents a diluted share.
Eurozone Growth Contracts
European markets inched higher and the latest private survey estimated economic growth is slowing in the eurozone.
Private sector contracted for the first time in 15 months on weaker output and new orders, the Purchasing Managers' Index released by S&P Global showed Friday.
The index for output declined to 49.4 in July from 52.0 in June, the index for service fell to 50.6 from 53.0, and manufacturing dropped to 49.6 from 52.1 in the corresponding months.
The flash estimate readings will be revised in the second estimate in the next few weeks.
The survey showed that the factory output decreased sharply and service output growth slowed.
The ECB also lifted its key lending rate for the first time in 11 years this week, and the rate increase of half-percentage point was larger than expected.
More worrisome, backlog of orders for both manufacturing and services also declined in the month, a first contraction in eighteen months.
The DAX index increased 0.3% to 13,284.77, the CAC-40 index gained 0.4% to 6,224.48.62, and the FTSE 100 index inched up 0.14% to 7,280.99.
Asian Markets Rally
Asian markets generally closed higher and the Nikkei index in Tokyo advanced for the seventh session in a row.
Kawasaki Kisen soared 11% and Nippon Yusen increased 4.02% after the shipping companies lifted full-year earnings outlook.
Japan's core consumer inflation, excluding energy and food prices, remained above the Bank of Japan's target rate of 2% for the third month in a row in June.
A separate report showed Japan's manufacturing slowed to a 10-month low in July on the continued supply chain disruptions and slowing orders.
The Nikkei index increased 0.4% to 27,914.66, the Hang Seng index rose 0.2% to 20,609.14, and the Sensex index increased 0.7% to 56,072.23.
China imposed 8 billion yen or $1.2 billion on taxi ride hailing platform Didi Global for cyber securities and data violations.
The Sensex index in Mumbai advanced for the sixth day in a row on the earnings optimism from banks and rising demand for vehicles and consumer goods.
- Scott Peters
- 21 Jul, 2022
- New York City
D.R. Horton, the home builder, said sales and earnings rose in the June quarter but estimates lower sales as housing demand began to cool in June and cancellation rates surged.
D.R. Horton said June quarter sales increased 21% to $8.8 billion and net income surged 48% to $1.6 billion or $4.67 a share from a year ago.
Net sales orders for the fiscal third quarter ended June decreased 7% to 16,693 homes and increased 8% in value to $6.9 billion compared to 17,952 homes and $6.4 billion in the same quarter of the prior year.
Horton's cancellation rate, cancelled sales orders divided by gross sales orders, for the fiscal third quarter rose to 24% compared to 17% in the prior year's quarter.
Homes closed in the quarter fell 1% to 21,308 homes compared to 21,588 a year ago.
Order backlog of homes under contract at the end of June fell 9% to 29,244 homes and increased 8% in value to $11.9 billion compared to 32,209 homes and $11.0 billion a year ago.
Home Inventory and Land Bank
At the end of the quarter, the company had 56,400 homes in inventory, of which 27,200 were unsold and 1,400 of the unsold homes were completed.
D R Horton's homebuilding land and lot portfolio totaled 598,200 lots at the end of the quarter, of which 22% were owned and 78% were controlled through land and lot purchase contracts.
At the end of the June quarter, total value of home inventories increased to $21.7 billion from $16.5 billion a year ago.
Stock Repurchase
The home builder repurchased 4.7 million shares of common stock for $310.0 million during the fiscal third quarter totaling 10.5 million shares repurchased for $854.2 million during the nine months ended in June.
About $690.0 million are still available for the stock repurchase at the end of June.
Guidance & Outlook
The home builder lowered its full-year outlook on moderating demand to a range between $33.8 billion to $34.6 billion and complete between 83,000 and 85,000 homes.
The company had previously guided annual revenues to fall between $35.3 billion to $36.1 billion and complete between 88,000 and 90,000 homes.
D.R. Horton declined 3.8% to $75.83 and the stock has lost 27.96% in the year so far.
Company
D.R. Horton, Inc. is the largest homebuilder by volume in the United States since 2002.
Founded in 1978 in Fort Worth, Texas, D.R. Horton has operations in 105 markets in 33 states across the United States and closed 81,469 homes in the twelve-month period ended June 30, 2022.
- Barry Adams
- 21 Jul, 2022
- New York City
Benchmark indexes on Wall Street lacked direction after trading near 6-week highs as investors digested the latest earnings from home builders and transportation companies.
Tech stocks advanced in the early afternoon trading lifting the two popular benchmark indexes.
The S&P 500 index fell 0.99% to 3,999.10 and the Nasdaq Composite index rose 1.4% to 12,059.20.
The Nasdaq advanced for the third day in a row after Tesla jumped nearly 10%.
Apple, Amazon, Alphabet, Meta, and Netflix jumped between 0.3% and 3%.
Futures of crude oil declined $3.49 to $96.39 a barrel and natural gas fell 8 cents to $7.92 a unit.
Jobless claims at the end of last week rose to the highest level since mid-November last week.
Initial claims of weekly jobless claims increased 7,000 to 251,000 for the week ended July 16 from the previous week, a high not seen since the week ending November 13, 2021.
Continuing claims, which runs a week behind, rose to 1.384 million, the highest total since April 23.
Heatwave in the U.S. and Europe lifted prices of natural gas in the volatile session but closed down and Russia resumed its natural gas supply to Europe through Nord Stream 1 pipe network.
The yield on 10-year Treasury notes edged lower to 2.906% and the yield on German government 10-year Bund hovered near 1.215% after the European Central Bank lifted rates for the first time in eleven years.
The yield on Japanese government bonds were nearly unchanged after the Bank of Japan left its key lending rate unrevised at 0.25%.
D.R. Horton fell 3.8% to $75.87 after the home builder said June quarter sales increased 21% to $8.8 billion and net income surged 48% to $1.6 billion or $4.67 a share from a year ago.
The home builder also lowered its full-year outlook on moderating demand to a range between $33.8 billion to $34.6 billion and complete between 83,000 and 85,000 homes.
The company had previously guided annual revenues to fall between $35.3 billion to $36.1 billion and complete between 88,000 and 90,000 homes.
American Airlines Group declined 7.4% to $14.08 after the company reported its first quarterly profit since the start of the pandemic.
The airline reported record second quarter revenue of $13.4 billion, a 12.2% increase over the same period in 2019 on 8.5% less capacity.
Second quarter net income was $476 million or $0.68 per diluted share.
Carnival Corp dropped 10.9% to $9.90 after the cruise line operator planned a $1 billion common stock offering to finance general corporate expenses.
Tesla Inc gained 9.7% to $814.93 after the electric vehicle maker reported quarterly sales jumped 42% and net income doubled from a year ago.
First Rate Hike in Eurozone After 11 Years
European markets traded mixed after the central bank lifted rates for the first time in eleven years and Italian political turmoil deepened.
The DAX index eased 0.17% to 13,257.90, the CAC-40 index rose 0.6% to 6,220.59, and the FTSE 100 index decreased 0.4% to 7,234.52.
The European Central Bank lifted its key lending rate by 50 basis points to cool rapidly advancing inflation in the currency zone of 19 nations.
The governing council lifted the rates more than the 25 basis points of increase expected by traders and economists.
With the latest increase, the key lending rate is zero and the central bank had previously signaled rate hikes at the next meetings in July and September.
The deposit rate is now set at zero, the main refinancing rate at 0.50%, and the marginal lending facility is 0.75%.
The euro strengthened after the rate decision to $1.0245.
Italy's Political Turmoil Deepens
Italian Prime Minister Mario Draghi resigned for the second time in as many weeks after winning the confidence vote boycotted by three coalition partners.
Draghi decided to resign after three coalition partners - the center right parties The League and Forza Italia and the populist 5-Star Movement - withdrew its support to the 17-month old national unity government..
Draghi will continue as a "caretaker" prime minister until the president Sergio Mattarella decides next steps.
Italy is most likely to head to a general election as early as September delaying the annual budgetary process and the release of the European Union's $20 billion pandemic aid.
For a week, Prime Minister Draghi worked with different factions in his National Unity government but failed to resolve differences on how to allocate government expenses and help struggling families and businesses.
Two weeks ago, taxi unions across the nations held protests against the Draghi's plan to open up the industry to more competition.
Despite the unprecedented outpouring of public support for Draghi's leadership, a series of pro-Draghi rallies by some 1,000 mayors across the nation and a unified support offered by the leading newspapers, three coalition partners pulled their support.
- Scott Peters
- 21 Jul, 2022
- New York City
American Airlines Group reported its first quarterly profit since the start of the pandemic.
The airline reported record second quarter revenue of $13.4 billion, a 12.2% increase over the same period in 2019 on 8.5% less capacity.
With the return of travel, American Airlines flew 53.07 million passengers in the second quarter, an increase of 20.6% from 44.02% a year ago.
Second quarter net income jumped to $476 million or $0.68 per diluted share compared to $19 million or 3 cents a year ago.
The average load factor in the quarter was 10 points higher from a year ago to 87% and domestic leisure travel surpassed the 2019's levels in the same period.
The airline is also witnessing improvement in business and government travel and a sustained pick up in international travel.
American Airlines Group declined 7.8% to $14.02 after the company reported its first quarterly results.
In the quarter, passenger load factor increased to 86.9% from 77.0% and passenger revenue per available seat mile increased to 18.47 cents from 12.0 cents a year ago.
Guidance & Outlook
American expects its third-quarter total revenue to be 10% to 12% higher compared to the similar period in 2019 on 8% to 10% lower capacity.
The company also estimated it to be profitable in the third quarter based on the current demand trends and fuel price forecast.
CEO Robert Isom said that the airline is likely to operate between 90% and 92% of its 2019 capacity in the third quarter.
- Barry Adams
- 21 Jul, 2022
- New York City
1Life Healthcare surged 68.9% to $17.18 after the operator of primary care network of One Medical clinics agreed to be acquired for $18 a share or $3.9 billion by Amazon.com Inc
Amazon.com, Inc declined 0.4% to $122.22 and the online retailer and tech services provider has been making a push in the healthcare sector with the purchase of online pharmacy PillPack in 2019 for $3 billion.
- Bridgette Randall
- 21 Jul, 2022
- Frankfurt
European markets traded mixed after the central bank lifted rates for the first time in eleven years and Italian political turmoil deepened.
The DAX index eased 0.23% to 13,246.60, the CAC-40 index rose 0.3% to 6,201.21, and the FTSE 100 index increased 0.09% to 7,270.51.
The European Central Bank lifted its key lending rate by 50 basis points to cool rapidly advancing inflation in the currency zone of 19 nations.
The governing council lifted the rates more than the 25 basis points of increase expected by traders and economists.
With the latest increase, the key lending rate was lifted to zero and the central bank had previously signaled rate hikes at the next meetings in July and September.
The deposit rate is now set at zero, the main refinancing rate at 0.50%, and the marginal lending facility is set at 0.75%.
The euro strengthened after the rate decision to $1.0245.
European Stock Movers
Electrolux declined 3.9% to skr 140.90 after the Swedish home appliance maker reported sharply lower than expected second quarter results.
Revenues in the second quarter ending in June increased 11% to skr 33.75 billion. In constant currencies, sales rose 0.3% from a year ago.
Net income in the period plunged 81% to skr 257 million from a year ago and diluted earnings per share declined to skr 0.93 from skr 4.81 a year ago.
Nokia Oyj increased 9.2% to 5.02 euros after the Finnish telecom operator reported better than expected earnings.
Net sales in the second quarter increased 11% to 5.7 billion euros or rose 3% in constant currencies.
Net income in the period increased 31% to 460 million euros and diluted earnings per share rose to 8 euro cents from 6 euro cents a year ago.
IG Group jumped 8.9% to 772.34 pence after the British trading platform announced a plan to buy back its stock.
Ocado Group traded volatile but closed up 0.8% to 781.29 pence after the online grocery delivery company reported first-half loss widened.
Group revenues in the first-half ending May declined 4.4% to
- Bridgette Randall
- 21 Jul, 2022
- New York City
European markets traded mixed after the central bank lifted rates for the first time in eleven years and Italian political turmoil deepened.
The DAX index eased 0.23% to 13,246.60, the CAC-40 index rose 0.3% to 6,201.21, and the FTSE 100 index increased 0.09% to 7,270.51.
The European Central Bank lifted its key lending rate by 50 basis points to cool rapidly advancing inflation in the currency zone of 19 nations.
The governing council lifted the rates more than the 25 basis points of increase expected by traders and economists.
With the latest increase, the key lending rate was lifted to zero and the central bank had previously signaled rate hikes at the next meetings in July and September.
The deposit rate is now set at zero, the main refinancing rate at 0.50%, and the marginal lending facility is set at 0.75%.
The euro strengthened after the rate decision to $1.0245.
The central bank reiterated its commitment to bring down the inflation rate to its target rate of 2% as supply constraints and rising energy prices lifted June inflation to 8.6%.
"We expect inflation to remain undesirably high for some time, owing to continued pressures from energy and food prices and pipeline pressures in the pricing chain," the accompanying statement noted.
The ECB also said that the "inflation continues to be undesirably high and is expected to remain above our target for some time. The latest data indicate a slowdown in growth, clouding the outlook for the second half of 2022 and beyond."
With the diverging interest rates in the eurozone and heightened political turmoil in Italy, the central bank released a new tool to offer additional lending facilities with stringent conditions in the event of severe bond market conditions.
The anticipatory move is expected to keep the smooth functioning of the eurozone bond markets.
The yield on the 10-year Italian government bonds shot up to 3.6014% after Prime Minister Mario Draghi offered his resignation.
European Stock Movers
Electrolux declined 3.9% to skr 140.90 after the Swedish home appliance maker reported sharply lower than expected second quarter results.
Revenues in the second quarter ending in June increased 11% to skr 33.75 billion. In constant currencies, sales rose 0.3% from a year ago.
Net income in the period plunged 81% to skr 257 million from a year ago and diluted earnings per share declined to skr 0.93 from skr 4.81 a year ago.
Nokia Oyj increased 9.2% to 5.02 euros after the Finnish telecom operator reported better than expected earnings.
Net sales in the second quarter increased 11% to 5.7 billion euros or rose 3% in constant currencies.
Net income in the period increased 31% to 460 million euros and diluted earnings per share rose to 8 euro cents from 6 euro cents a year ago.
IG Group jumped 8.9% to 772.34 pence after the British trading platform announced a plan to buy back its stock.
Ocado Group traded volatile but closed up 0.8% to 781.29 pence after the online grocery delivery company reported first-half loss widened.
Group revenues in the first-half ending May declined 4.4% to
- Bridgette Randall
- 21 Jul, 2022
- New York City
Italian Prime Minister Mario Draghi resigned for the second time in as many weeks after winning the confidence vote boycotted by three coalition partners.
Draghi decided to resign after three coalition partners - the center right parties The League and Forza Italia and the populist 5-Star Movement - withdrew its support to the 17-month old national unity government..
Draghi will continue as a "caretaker" prime minister until the president Sergio Mattarella decides next steps.
Italy is most likely to head to a general election as early as September delaying the annual budgetary process and the release of the European Union's $20 billion pandemic aid.
For a week, Prime Minister Draghi worked with different factions in his National Unity government but failed to resolve differences on how to allocate government expenses and help struggling families and businesses.
Two weeks ago, taxi unions across the nations held protests against the Draghi's plan to open up the industry to more competition.
Despite the unprecedented outpouring of public support for Draghi's leadership, a series of pro-Draghi rallies by some 1,000 mayors across the nation and a unified support offered by the leading newspapers, three coalition partners pulled their support.
- Barry Adams
- 21 Jul, 2022
- New York City
Benchmark indexes on Wall Street lacked direction after trading near 6-week highs as investors digested the latest earnings from home builders and transportation companies.
The S&P 500 index fell 0.7% to 3,931.47 and the Nasdaq Composite index fell 0.7% to 11,821.90
Futures of crude oil declined $3.27 to $96.41 a barrel and natural gas rose 32 cents to $7.68 a unit.
Heatwaves in the U.S. and Europe lifted prices of natural gas and Russia resumed its natural gas supply to Europe through Nord Stream 1 pipe network.
The yield on 10-year Treasury notes edged lower to 2.98% and the yield on German government 10-year Bund hovered near 1.246% after the European Central Bank lifted rates for the first time in eleven years.
The yield on Japanese government bonds were nearly unchanged after the Bank of Japan left its key lending rate unrevised at 0.25%.
D.R. Horton fell 3.3% to $70.74 after the home builder said June quarter sales increased 21% to $8.8 billion and net income surged 48% to $1.6 billion or $4.67 a share from a year ago.
The home builder also lowered its full-year outlook on moderating demand to a range between $33.8 billion to $34.6 billion and complete between 83,000 and 85,000 homes.
The company had previously guided annual revenues to fall between $35.3 billion to $36.1 billion and complete between 88,000 and 90,000 homes.
American Airlines Group declined 7.8% to $14.02 after the company reported its first quarterly profit since the start of the pandemic.
The airline reported record second quarter revenue of $13.4 billion, a 12.2% increase over the same period in 2019 on 8.5% less capacity.
Second quarter net income was $476 million or $0.68 per diluted share.
Carnival Corp dropped 12.3% to $9.70 after the cruise line operator planned a $1 billion common stock offering to finance general corporate expenses.
Tesla Inc gained 6.2% to $788.23 after the electric vehicle maker reported quarterly sales jumped 42% and net income doubled from a year ago.
United Airlines dropped 9.0% to $27.93 after the company said second quarter revenues increased to $12.1 billion from $5.5 billion a year ago and jumped 6% from $11.4 billion in 2019.
The airline swung to a quarterly profit of $329 million from a loss of $434 million a year ago and declined from $1.05 billion in the corresponding period in 2019.
Diluted earnings per share in the second quarter were $1.00 compared to a loss of $1.34 a year ago and $4.02 in the similar period in 2019.
CSX Corp rose 4.01% to $30.92 after the railroad operator said second quarter revenues increased 28% to $3.82 billion and net income was nearly unchanged at $1.78 billion or 54 cents a diluted share.
AT&T fell 8.98% to $18.63 after the telecom operator reported a jump in wireless customers by 800,000 in the second quarter and lifted its guidance for wireless revenue growth.
Revenues in the second quarter increased 2.2% to $29.6 billion after adjusting for a business unit separation and net income
Income from continuing operations was $4.8 billion compared to $6.0 billion in the year-ago quarter.
Diluted earnings per common share from continuing operations was $0.59 compared to $0.76 a year ago.
Postpaid phone-only average revenue per user increased 1.1% to $54.81 from a year ago on the improved international roaming and a mix shift to higher-priced unlimited plans.
1Life Healthcare surged 68.9% to $17.18 after the operator of primary care network of One Medical clinics agreed to be acquired for $18 a share or $3.9 billion by Amazon.com Inc
Amazon.com, Inc declined 0.4% to $122.22 and the online retailer and tech services provider has been making a push in the healthcare sector with the purchase of online pharmacy PillPack in 2019 for $3 billion.
- Barry Adams
- 21 Jul, 2022
- New York City
Benchmark indexes on Wall Street lacked direction after trading near 6-week highs as investors digested the latest earnings from home builders and transportation companies.
The S&P 500 index fell 0.7% to 3,931.47 and the Nasdaq Composite index fell 0.7% to 11,821.90
Futures of crude oil declined $3.27 to $96.41 a barrel and natural gas rose 32 cents to $7.68 a unit.
Heatwave in the U.S. and Europe lifted prices of natural gas and Russia resumed its natural gas supply to Europe through Nord Stream 1 pipe network.
The yield on 10-year Treasury notes edged lower to 2.98% and the yield on German government 10-year Bund hovered near 1.246% after the European Central Bank lifted rates for the first time in eleven years.
The yield on Japanese government bonds were nearly unchanged after the Bank of Japan left its key lending rate unrevised at 0.25%.
D.R. Horton fell 3.3% to $70.74 after the home builder said June quarter sales increased 21% to $8.8 billion and net income surged 48% to $1.6 billion or $4.67 a share from a year ago.
The home builder also lowered its full-year outlook on moderating demand to a range between $33.8 billion to $34.6 billion and complete between 83,000 and 85,000 homes.
The company had previously guided annual revenues to fall between $35.3 billion to $36.1 billion and complete between 88,000 and 90,000 homes.
American Airlines Group declined 7.8% to $14.02 after the company reported its first quarterly profit since the start of the pandemic.
The airline reported record second quarter revenue of $13.4 billion, a 12.2% increase over the same period in 2019 on 8.5% less capacity.
Second quarter net income was $476 million or $0.68 per diluted share.
Carnival Corp dropped 12.3% to $9.70 after the cruise line operator planned a $1 billion common stock offering to finance general corporate expenses.
Tesla Inc gained 6.2% to $788.23 after the electric vehicle maker reported quarterly sales jumped 42% and net income doubled from a year ago.
First Rate Hike in Eurozone After 11 Years, Draghi Resigns
European markets traded mixed after the central bank lifted rates for the first time in eleven years and Italian political turmoil deepened.
The DAX index eased 0.17% to 13,257.90, the CAC-40 index rose 0.6% to 6,220.59, and the FTSE 100 index decreased 0.4% to 7,234.52.
The European Central Bank lifted its key lending rate by 50 basis points to cool rapidly advancing inflation in the currency zone of 19 nations.
The governing council lifted the rates more than the 25 basis points of increase expected by traders and economists.
With the latest increase, the key lending rate is zero and the central bank had previously signaled rate hikes at the next meetings in July and September.
The deposit rate is now set at zero, the main refinancing rate at 0.50%, and the marginal lending facility is 0.75%.
The euro strengthened after the rate decision to $1.0245.
- Brian Turner
- 21 Jul, 2022
- New York City
European markets traded mixed after the central bank lifted rates for the first time in eleven years and Italian political turmoil deepened.
The DAX index eased 0.17% to 13,257.90, the CAC-40 index rose 0.6% to 6,220.59, and the FTSE 100 index decreased 0.4% to 7,234.52.
The European Central Bank lifted its key lending rate by 50 basis points to cool rapidly advancing inflation in the currency zone of 19 nations.
The governing council lifted the rates more than the 25 basis points of increase expected by traders and economists.
With the latest increase, the key lending rate is zero and the central bank had previously signaled rate hikes at the next meetings in July and September.
The deposit rate is now set at zero, the main refinancing rate at 0.50%, and the marginal lending facility is 0.75%.
The euro strengthened after the rate decision to $1.0245.
The central bank reiterated its commitment to bring down the inflation rate to its target rate of 2% as supply constraints and rising energy prices lifted June inflation to 8.6%.
"We expect inflation to remain undesirably high for some time, owing to continued pressures from energy and food prices and pipeline pressures in the pricing chain," the accompanying statement noted.
The ECB also said that the "inflation continues to be undesirably high and is expected to remain above our target for some time. The latest data indicate a slowdown in growth, clouding the outlook for the second half of 2022 and beyond."
With the diverging interest rates in the eurozone and heightened political turmoil in Italy, the central bank released a new tool to offer additional lending facilities with stringent conditions in the event of severe bond market conditions.
The anticipatory move is expected to keep the smooth functioning of the eurozone bond markets and the details of the terms and conditions are scheduled to be released later today at 3:45 p.m. Frankfurt time.
The yield on the 10-year Italian government bonds shot up to 3.6014% after Prime Minister Mario Draghi offered his resignation.
Draghi will continue as a "caretaker" prime minister until the president Sergio Mattrarella decides next steps.
Draghi decided to resign after three coalition partners - the center right parties The League and Forza Italia and the populist 5-Star Movement - withdrew its support to the 17-month old national unity government..
- Scott Peters
- 20 Jul, 2022
- New York City
Tesla said production and deliveries of vehicles gained despite the extended shutdowns at its facility in China and sales and profit soared in the three months to June.
Tesla June quarter sales increased 42% to $16.9 billion from $11.96 billion a year ago.
Net income rose rose 98% to $2.26 billion from $1.14 billion a year ago and diluted earnings per share jumped to $1.95 from $1.02 a year ago.
Automotive gross margin declined, but still healthy, to 27.9% from 28.4% a year ago.
Free cash flow in the quarter was nearly unchanged at $621 million from a year ago.
On a sequential basis, second quarter profit declined to $2.3 billion from the record $3.3 billion in the first quarter on the rising raw materials costs and parts shortages.
In the second quarter, Tesla production increased 25% to 258,580 vehicles and deliveries rose 27% to 254,695 vehicles, despite ongoing supply chain challenges and factory shutdowns beyond the company's control.
Store and service locations increased 19% to 709 from 598 a year ago.
June 2022 was the highest vehicle production month in Tesla
- Barry Adams
- 20 Jul, 2022
- New York City
U.S. stocks advanced and investors digest the latest batch of earnings and housing market indicators flashed red signals ahead.
The S&P 500 index increased 0.6% to 3,959.90 and the Nasdaq Composite index advanced 1.6% to 11,897.65.
The popular averages rose to five-week highs as the earnings season picks up momentum.
Futures of crude oil decreased $1.61 to $102.65 a barrel and natural gas increased 63 cents to $7.89 a unit.
The yield on 10-year Treasury notes increased to 3.034%.
Mortgage Demand Drops to 22-year Low
Mortgage demand plunged to the lowest levels in 22 years, according to data released by the Mortgage Bankers Association.
The Market Composite index, tracking the mortgage loan application volume, dropped 6.3% on a seasonally adjusted basis for the week ending July 15.
On an unadjusted basis, the index declined 17% on a weekly basis.
The refinance indexes declined 4% from a week ago and plunged 80$ from a year ago.
Rising home prices and a surge in mortgage rates have drained considerable purchasing power from home buyers.
The average contract interest rate for 30-year fixed-rate mortgages with 20% down payment and loan balances less than $647,200 increased to 5.82% from 5.74%, with points increasing to 0.65 from 0.59 including the origination fee.
Existing Home Sales Drops Below 2019 Level
Existing home sales declined 5.4% in June from May, the National Association of Realtors said in its monthly report today.
June existing home sales declined to a seasonally adjusted rate of 5.12 million units, a fall of 14.2% from a year ago, the industry group said in its report.
Home sales were the slowest since January 2019 outside of the sales decline during the onset of the coronavirus pandemic during the same month in 2020 and below the total 2019 sales before the pandemic.
Stocks advanced on Wall Street on the earnings optimism and investors looked ahead to results from at least 100 more companies this week.
Movers: Bakers Hughes, Bath & Bodyworks, Netflix, Tesla
Netflix increased 7.3% to $216.40 after the steaming services provider reported fewer than expected subscriber losses.
In the second quarter, Netflix lost 970,000 subscribers, less than the previous estimate of 2 million. Moreover, earnings were ahead of expectations.
Baker Hughes dropped 8.2% to $25.89 after the oil field services company reported sharply lower than expected earnings.
Tesla gained 0.6% to $747.0 after the vehicle maker reported June quarter sales increased 42% to $16.9 billion from $11.96 billion a year ago.
Net income rose rose 98% to $2.26 billion from $1.14 billion a year ago and diluted earnings per share jumped to $1.95 from $1.02 a year ago.
Automotive gross margin declined, but still healthy, to 27.9% from 28.4% a year ago.
Free cash flow in the quarter was nearly unchanged at $621 million from a year ago.
In the second quarter, Tesla produced over 258,000 vehicles and delivered over 254,000 vehicles, despite ongoing supply chain challenges and factory shutdowns beyond the company's control.
June 2022 was the highest vehicle production month in Tesla