- Brian Turner
- 28 Oct, 2022
- New York City
Pending home sales fell for the fourth month in a row after rising mortgage rates and elevated prices kept buyers away.
Pending home sales in September declined 10.5% from August and plunged 31% from a year ago, the National Association of Realtors said in a statement today.
"Persistent inflation has proven quite harmful to the housing market," said NAR Chief Economist Lawrence Yun.
"The Federal Reserve has had to drastically raise interest rates to quell inflation, which has resulted in far fewer buyers and even fewer sellers," added Yun.
The pending home sales index is at a low last seen in June 2010, excluding the onset of the coronavirus pandemic in April 2020.
Home prices across the nation are still 40% higher than pre-pandemic 2019 levels.
- Barry Adams
- 28 Oct, 2022
- New York City
Benchmark indexes on Wall Street powered ahead and investors digested weak tech earnings and strong performance from oil giants.
Chevron and Exxon Mobil reported a multi-fold jump in earnings after energy prices soared in the latest quarter.
Amazon.com dropped as much as 10% after the online retailer said fourth quarter revenue growth is likely to be weak.
The S&P 500 index increased 1.2% to 3,854.89 and the Nasdaq Composite rose 1.2% to 10,925.61.
Crude oil edged down $1.04 to $88.05 a barrel and natural gas decreased 18 cents to $5.68 a thermal unit.
PCE Price Index Held Steady
Personal Consumption Expenditure price index, a measure of inflation, rose 0.3% in September from the previous month.
The PCE index jumped 6.2% from a year ago and matched the rise in the previous month, according to the data released by the Bureau of Economic Analysis.
The PCE index, excluding food and energy, rose 0.5% on a monthly basis and jumped 5.1% from a year ago.
Pending Home Sales Fall In September
Pending home sales fell for the fourth month in a row after rising mortgage rates and elevated prices kept buyers away.
Pending home sales in September declined 10.5% from August and plunged 31% from a year ago, the National Association of Realtors said in a statement today.
"Persistent inflation has proven quite harmful to the housing market," said NAR Chief Economist Lawrence Yun.
"The Federal Reserve has had to drastically raise interest rates to quell inflation, which has resulted in far fewer buyers and even fewer sellers," added Yun.
The pending home sales index is at a low last seen in June 2010, excluding the onset of the coronavirus pandemic in April 2020.
Home prices across the nation are still 40% higher than pre-pandemic 2019 levels.
European Markets Lack Direction On Rate Worries
European markets traded sideways on the last day of the week and investors digested the latest batch of earnings a day after the ECB lifted the rate by 0.75%.
The DAX index rose 0.3% to 13,245.24, the CAC-40 index increased 0.5% to 6,274.76 and the FTSE 100 index declined 0.5$ to 7,040.98.
For the week, the DAX and the CAC-40 jumped 4% and the Swiss SMI index gained 3.3% and the FTSE 100 advanced 1%.
The yield on 10-year German Bunds increased to 2.09%, French bonds rose to 2.62%, the UK Gilt increased to 3.45% and Italian bonds to 4.19%.
The euro traded at 99.59 U.S. cents and the British pound inched up to $1.15.
Brent crude decreased to $1.01 to $95.92 a barrel and TTF natural gas futures rose 2.5% to 110.45 euros a MWh.
- Scott Peters
- 28 Oct, 2022
- New York City
Amazon.com, Inc plunged 20.4% to $88.20 after the online retailer guided weak fourth quarter outlook.
Third quarter revenue increased 15% to $127.1 billion from $110.8 billion and North America segment sales increased 20% to $78.8 billion.
Net income in the quarter decreased to $2.9 billion or 28 cents from $3.2 billion or 31 cents a diluted share.
Amazon guided fourth quarter sales between $140.0 billion and $148.0 billion, an increase between 2% and 8% from a year ago.
This guidance anticipates an unfavorable impact of approximately 460 basis points from foreign exchange rates.
Apple Inc declined 1.1% to $143.81 after the computing and telecom devices maker reported fiscal fourth quarter results ending on September 24.
Revenue in the quarter rose 8% to $90.1 billion from $84.4 billion a year ago.
Net income in the quarter rose to $20.7 billion from $20.5 billion and diluted earnings per share increased to $1.28 to $1.24 a year ago.
Sales in the Americas rose to $39.8 billion from $36.8 billion and Greater China rose to $15.5 billion from $14.6 billion a year ago.
iPhone sales jumped to $42.6 billion from $38.9 billion a year ago.
Apple declared a cash dividend of 23 cents a share payable on November 10, 2022 to shareholders of record as of the close of business on November 7, 2022.
Chevron Corp gained 2.1% to $181.65 after the energy explorer and refiner said quarterly earnings nearly doubled.
Revenue in the quarter jumped to $66.6 billion from $44.7 billion a year ago.
Net income in the third quarter nearly doubled to $11.2 billion from $6.1 billion and diluted earnings per share jumped to $5.78 from $3.19 a year ago.
Deckers Outdoor Corp dropped 6.1% to $359.03 after the footwear maker reported earnings ahead of expectations and reaffirmed its full-year outlook.
Revenue in the fiscal second quarter ending in September increased 21.3% to $875.6 million compared to $721.9 million.
Net sales on a constant currency basis jumped 24.8%.
Domestic net sales increased 20.0% to $617.7 million from $514.6 million and International net sales advanced 24.4% to $257.9 million from $207.3 million a year ago.
Net income in the period declined to $101.5 million from $102.0 million and diluted earnings per share fell to $3.80 from $3.66 a year ago.
The company forecasted revenue in full-year fiscal 2023 ending in March between $3.45 billion and $3.50 billion and diluted earnings per share between $17.50 and $18.35.
DexCom, Inc jumped 8.7% to $110.06 after the continuous glucose monitoring system reported better-than-expected quarterly results.
Third quarter total revenue increased 18% from a year ago to $769.6 million and revenue in the U.S. rose 17% and international jumped 22%.
Net income increased to $101.2 million or 24 cents from $87.3 million or $0.21 per diluted share a year ago.
The company guided 2022 revenue between $2.88 billion and $2.91 billion, an increase between 18% and 19% from a year ago.
Exxon Mobil Corp jumped 2.2% to $109.90 after the energy company reported a surge in revenue and profit.
Total revenue in the third quarter jumped to $112.1 billion from $73.8 billion a year ago.
Net income in the period advanced to $20.2 billion from $6.94 billion and diluted earnings per share shot up four-fold to $4.68 from $1.57 a year ago.
The company declared a fourth quarter dividend of 91 cents a share payable to shareholders on record on December 9th.
Intel Corp jumped 7.3% to $28.12 after the semiconductor chipmaker posted better-than-expected quarterly results but the company lowered its full-year sales outlook.
Revenue in the third quarter declined 20% to $15.3 billion from $19.2 billion a year ago.
Net income in the quarter plunged 85% to $1.0 billion from $6.8 billion and diluted earnings per share dropped to 25 cents from $1.67 a year ago.
The company lowered its full-year 2022 revenue outlook between $63 billion and $64 billion from the previous range between $65 billion and $68 billion.
The company also took a $664 million restructuring charge in the quarter and said it plans to aggressively cut operating costs.
Mastercard Inc declined 0.3% to $318.16 after the payment processing company reported third quarter results.
Third quarter revenue increased 15.0% to $5.8 billion from $5.0 billion a year ago.
Net income increased 4% to $2.5 billion from $2.4 billion and diluted earnings per share rose to $2.58 from $2.44 a year ago.
Gross dollar volume increased 11% on a local currency basis to $2.1 trillion and cross-border volume growth jumped 44%.
Mastercard repurchased 4.7 million shares at a cost of $1.6 billion and paid $474 million in dividends, in the third quarter.
Quarter-to-date through October 24, the company repurchased 1.7 million shares at a cost of $505 million and $5.1 billion is available under the approved stock repurchase programs.
- Scott Peters
- 27 Oct, 2022
- New York City
Apple Inc declined 1.1% to $143.81 after the computing and telecom devices maker reported fiscal fourth quarter results ending on September 24.
Revenue in the quarter rose 8% to $90.1 billion from $84.4 billion a year ago.
Currency headwinds lowered the company sales by 600 basis points, chief executive Tim Cook said in an interview with CNBC.
Net income in the quarter rose to $20.7 billion from $20.5 billion and diluted earnings per share increased to $1.28 to $1.24 a year ago.
Sales in Americas rose to $39.8 billion from $36.8 billion and Greater China rose to $15.5 billion from $14.6 billion a year ago.
Sales in Europe jumped to $22.8 billion from $20.8 billion and in Japan fell to $5.7 billion from $6.0 billion a year ago.
iPhone sales jumped to $42.6 billion from $38.9 billion a year ago.
Apple declared a cash dividend of 23 cents a share payable on November 10, 2022 to shareholders of record as of the close of business on November 7, 2022.
Apple does not provide forward looking guidance.
- Scott Peters
- 27 Oct, 2022
- New York City
Amazon.com, Inc plunged 20.4% to $88.20 after the online retailer guided weak fourth quarter outlook.
Third quarter revenue increased 15% to $127.1 billion from $110.8 billion and North America segment sales increased 20% to $78.8 billion.
Net income in the quarter decreased to $2.9 billion or 28 cents from $3.2 billion or 31 cents a diluted share.
Amazon guided fourth quarter sales between $140.0 billion and $148.0 billion, an increase between 2% and 8% from a year ago.
This guidance anticipates an unfavorable impact of approximately 460 basis points from foreign exchange rates.
- Scott Peters
- 27 Oct, 2022
- New York City
Amazon.com, Inc plunged 20.4% to $88.20 after the online retailer guided weak fourth quarter outlook.
Third quarter revenue increased 15% to $127.1 billion from $110.8 billion and North America segment sales increased 20% to $78.8 billion.
Net income in the quarter decreased to $2.9 billion or 28 cents from $3.2 billion or 31 cents a diluted share.
Amazon guided fourth quarter sales between $140.0 billion and $148.0 billion, an increase between 2% and 8% from a year ago.
This guidance anticipates an unfavorable impact of approximately 460 basis points from foreign exchange rates.
Apple Inc declined 1.1% to $143.81 after the computing and telecom devices maker reported fiscal fourth quarter results ending on September 24.
Revenue in the quarter rose 8% to $90.1 billion from $84.4 billion a year ago.
Net income in the quarter rose to $20.7 billion from $20.5 billion and diluted earnings per share increased to $1.28 to $1.24 a year ago.
Sales in Americas rose to $39.8 billion from $36.8 billion and Greater China rose to $15.5 billion from $14.6 billion a year ago.
iPhone sales jumped to $42.6 billion from $38.9 billion a year ago.
Apple declared a cash dividend of 23 cents a share payable on November 10, 2022 to shareholders of record as of the close of business on November 7, 2022.
DexCom, Inc jumped 8.7% to $110.06 after the continuous glucose monitoring system reported better-than-expected quarterly results.
Third quarter total revenue increased 18% from a year ago to $769.6 million and revenue in the U.S. rose 17% and international jumped 22%.
Net income increased to $101.2 million or 24 cents from $87.3 million or $0.21 per diluted share a year ago.
The company guided 2022 revenue between $2.88 billion and $2.91 billion, an increase between 18% and 19% from a year ago.
Mastercard Inc declined 0.3% to $318.16 after the payment processing company reported third quarter results.
Third quarter revenue increased 15.0% to $5.8 billion from $5.0 billion a year ago.
Net income increased 4% to $2.5 billion from $2.4 billion and diluted earnings per share rose to $2.58 from $2.44 a year ago.
Gross dollar volume increased 11% on a local currency basis to $2.1 trillion and cross-border volume growth jumped 44%.
Mastercard repurchased 4.7 million shares at a cost of $1.6 billion and paid $474 million in dividends, in the third quarter.
Quarter-to-date through October 24, the company repurchased 1.7 million shares at a cost of $505 million and $5.1 billion is available under the approved stock repurchase programs.
- Barry Adams
- 27 Oct, 2022
- New York City
Benchmark indexes turned lower after rising in the morning after third quarter GDP rebounded.
U.S. GDP in the third quarter accelerated to 2.6% annual rate but the resilient consumer spending growth slowed and residential construction weakened.
Investors weighed the prospect of recession but also noticed a sign of optimism after price index of purchases rose at a slower pace in the GDP report.
In addition, tech stocks fell further on the ongoing digital advertising slowdown and Meta, parent of Facebook, dropped 24% to the level last seen in 2016.
Microsoft, Apple, Alphabet and Amazon dropped between 2% and 4%.
The S&P 500 index eased 0.6% to 3,808.01 and the Nasdaq Composite index dropped 1.6% to 10,792.68.
Crude oil increased $1.27 to $89.18 and natural gas fell 29 cents to $5.37 a thermal unit.
The yield on 2-year Treasury notes edged lower to 4.33%, 10-year Treasury notes declined to 3.94% and 30-year bonds to 4.10%.
US GDP Rebounds, Durable Goods Orders Rise
U.S. GDP in the third quarter rose at an annual rate of 2.6% after falling for two quarters in a row, according to the report released by the Bureau of Economic Analysis Thursday.
The GDP rebounded from the 0.6% decline in the second quarter after improvement in net international trade helped the economy to rebound, supported by resilient consumer spending and a rise in business investment.
Bond yields fell sharply after the BEA report showed a marked decrease in growth in the price index, a measure of inflation.
The PCE price index increased 4.2% from 7.3% and excluding food and energy prices, the index increased 4.5% from 4.7% in the second quarter.
The seasonally adjusted durable goods orders increased 0.4% in September from the previous month to $274.4 billion, reported U.S. Census Bureau Thursday.
The September increase follows the revised 0.2% rise in August.
On a yearly basis, orders rose 10.9%.
Shipments rose 0.3% on a monthly basis and jumped 11.3% from a year ago.
U.S. Weekly Jobless Claims Stable
In other economic news, weekly jobless claims increased to 217,000 in the week ending on October 22, an increase of 3,000 from the unrevised claims of 214,000 from the previous week.
U.S. Stock Movers
Ford Motor Company dropped 0.1% to $12.83 after the automaker reported a third quarter loss of $827 million.
Ford said larger-than-expected loss was driven by $1 billion in higher supply chain issues related costs and parts shortages affecting at least 40,000 vehicles sales.
Meta Platforms plunged 24.5% to $97.50 after the social media platform operator reported second quarterly fall in revenue in a row.
Third quarter revenue declined 4% to $27.7 billion and net income plunged 52% to $4.4 billion from $5.2 billion a year ago.
Diluted earnings per share fell to $1.64 from $3.22 a year ago.
The company also forecasted revenue in the fourth quarter to fall between $30 billion and $32.5 billion, lower than $33.6 billion in the fourth quarter 2021.
McDonald's increased 3.4% to $265.45 after the fast food chain operator reported better-than-expected quarterly results and added that the U.S. store traffic rose despite the increase in menu prices.
The fast food chain operator said global comparable sales increased 9.5% and the U.S. comparable sales increased 6.1%, ninth quarterly increase in a row.
Third quarter revenues declined 5% to $5.8 billion from $6.2 billion a year ago.
Net income dropped 8% to $1.98 billion from $2.1 billion and diluted earnings per share fell 6% to $2.68 from $2.86 a year ago.
McDonald's increased quarterly cash dividend by 10% to $1.52 a share.
ECB Hikes Rates and Forecasts More Increases to Follow
The European Central Bank lifted its key lending rate by 75 basis points, the second large-size rate hike in a row and third increase this year.
The central bank also said it plans to revise terms of targeted longer term refinancing operations or TLTROs, the plan designed to encourage banks to lend to customers.
The interest rate charged for such facilities will be changed on November 23 and the banks will be given an opportunity for early repayment.
The facility was created to incentivize banks to increase lending in the real economy at the height of the pandemic but since the economic conditions have changed and inflation has soared from less than 2% to above 10%.
After the latest rate hike, the main lending rate was revised higher to 1.5%, the level not seen since 2009.
Despite the latest rate increase, rates are still in negative territory and the central bank is not done with rate increases.
- Scott Peters
- 27 Oct, 2022
- New York City
Credit Suisse Group AG plunged 19.6% to 3.85 after the Swiss bank reported larger-than-expected loss.
Third quarter revenue plunged 30% to 3.8 billion Swiss francs and swung to a loss of 342 million Swiss francs from a profit of 1.0 billion Swiss francs a year ago.
Ford Motor Company rose 2.9% to $13.20 after the automaker reported a third quarter loss of $827 million.
Ford said larger-than-expected loss was driven by $1 billion in higher supply chain issues related costs and parts shortages affecting at least 40,000 vehicles sales.
Meta Platforms plunged 22.2% to $100.61 after the social media platform operator reported a second quarterly fall in revenue in a row.
Third quarter revenue declined 4% to $27.7 billion and net income plunged 52% to $4.4 billion from $5.2 billion a year ago.
Diluted earnings per share fell to $1.64 from $3.22 a year ago.
The company also forecasted revenue in the fourth quarter to fall between $30 billion and $32.5 billion, lower than $33.6 billion in the fourth quarter 2021.
McDonald's Corp increased 3.5% to $265.45 after the fast food chain operator reported better-than-expected quarterly results and added that the U.S. store traffic rose despite the increase in menu prices.
The fast food chain operator said global comparable sales increased 9.5% and the U.S. comparable sales increased 6.1%, ninth quarterly increase in a row.
Third quarter revenues declined 5% to $5.8 billion from $6.2 billion a year ago.
Net income dropped 8% to $1.98 billion from $2.1 billion and diluted earnings per share fell 6% to $2.68 from $2.86 a year ago.
McDonald's increased quarterly cash dividend by 10% to $1.52 a share.
Morningstar, Inc increased 3.6% to $228.20 after the financial information company posted third quarter revenue increased 9.2% to $468.2 million.
Net loss in the third quarter was $9.0 million, or 21 cents a diluted share, compared to net income $49.0 million, or $1.13 a diluted share.
The company also reduced its operations in China and took a one-time charge of $30.1 million.
O'Reilly Automotive Inc gained 3.9% to $808.30 after the auto parts retailer reported the third quarter sales increased 9% to $3.80 billion from $3.48 billion.
Net income increased to 5% to $585 million or 15.4% of sales from $559 million or 16.1% of sales.
Diluted earnings per common share increased 14% to $9.17 on 64 million shares from $8.07 on 69 million shares a year ago.
Raymond James Financial, Inc increased 6.6% to $114.02 after the financial services company reported fiscal fourth quarter revenue increased 5% to $2.83 billion.
Net income in the quarter increased to $437 million or $1.98 a diluted share from $429 million or $2.02 a share from a year ago.
Raymond James repurchased 600,000 shares of common stock for approximately $62 million at an average price of approximately $104 per share in the fiscal fourth quarter.
Including additional share repurchases totaling $38 million in October, approximately $800 million remained available under the current approved share repurchase authorization as of October 26, 2022.
The company revised full-year 2022 revenues in the range of $14.1 billion and $14.3 billion and comparable same store sales to rise between 4.5% and 5.5%.
Shopify Inc surged 18.2% to $34.34 after the e-commerce company reported a smaller-than-expected loss in its latest quarter.
Shopify reported third quarter sales increased 22% to $1.36 billion from $1.13 billion a year ago.
In the quarter, the company swung to a net loss of $187.3 million from a profit of $1.14 billion and diluted loss per share of 12 cents from a profit of 90 cents a year ago.
Gross merchandise volume rose 11% to $46.2 billion and Gross payment volume rose 22% to $25 billion from $20.5 billion a year ago.
Teladoc Health Inc rose 7.2% to $28.65 after the online healthcare service provider reported smaller-than-expected loss in its latest quarter.
Revenue in the third quarter increased 17% to $611.4 million from $521.7 million a year ago.
Net loss in the period fell 13% to $73.5 million from $84.3 million and diluted loss per shrank to 45 cents from 53 cents a year ago.
The company guided fourth quarter revenue between $625 million and $640 million and net loss per share between 10 cents and 40 cents and total online visits between 4.7 million and 4.9 million.
- Brian Turner
- 27 Oct, 2022
- New York City
U.S. GDP in the third quarter rose at an annual rate of 2.6% after falling for two quarters in a row, according to the report released by the Bureau of Economic Analysis Thursday.
The GDP rebounded from the 0.6% decline in the second quarter after improvement in net international trade helped the economy to rebound, supported by resilient consumer spending and a rise in business investment.
Bond yields fell sharply after the BEA report showed a marked decrease in growth in the price index, a measure of inflation.
The PCE price index increased 4.2% from 7.3% and excluding food and energy prices, the index increased 4.5% from 4.7% in the second quarter.
- Brian Turner
- 27 Oct, 2022
- New York City
The seasonally adjusted durable goods orders increased 0.4% in September from the previous month to $274.4 billion, reported U.S. Census Bureau Thursday.
The September increase follows the revised 0.2% rise in August.
On a yearly basis, orders rose 10.9%.
Shipments rose 0.3% on a monthly basis and jumped 11.3% from a year ago.
- Brian Turner
- 27 Oct, 2022
- New York City
Weekly jobless claims increased to 217,000 in the week ending on October 22, an increase of 3,000 from the unrevised claims of 214,000 from the previous week.
The Department of Labor report also noted 4-week moving average increased 6,750 to 219,000, from the previous week's unrevised average of 212,250.
- Barry Adams
- 27 Oct, 2022
- New York City
Stocks rebounded following the release of GDP, durable goods and weekly jobless claims reports.
U.S. GDP in the third quarter rose at an annual rate of 2.6% after falling for two quarters in a row, according to the report released by the Bureau of Economic Analysis Thursday.
The GDP rebounded from the 0.6% decline in the second quarter after improvement in net international trade helped the economy to rebound, supported by resilient consumer spending and a rise in business investment.
Bond yields fell sharply after the BEA report showed a marked decrease in growth in the price index, a measure of inflation.
The PCE price index increased 4.2% from 7.3% and excluding food and energy prices, the index increased 4.5% from 4.7% in the second quarter.
In other economic news, weekly jobless claims increased to 217,000 in the week ending on October 22, an increase of 3,000 from the unrevised claims of 214,000 from the previous week.
The seasonally adjusted durable goods orders increased 0.4% in September from the previous month to $274.4 billion, reported U.S. Census Bureau Thursday.
The September increase follows the revised 0.2% rise in August.
On a yearly basis, orders rose 10.9%.
Shipments rose 0.3% on a monthly basis and jumped 11.3% from a year ago.
The S&P 500 index eased 0.2% to 3,822.35 and the Nasdaq Composite index dropped 1.1% to 10,847.92 .
Crude oil increased $1.10 to $89.92 and natural gas fell 5 cents to $5.54 a thermal unit.
The yield on 2-year Treasury notes edged lower to 4.38%, 10-year Treasury notes declined to 3.98% and 30-year bonds to 4.11%.
U.S. Stock Movers
Ford Motor Company dropped 0.1% to $12.83 after the automaker reported a third quarter loss of $827 million.
Ford said larger-than-expected loss was driven by $1 billion in higher supply chain issues related costs and parts shortages affecting at least 40,000 vehicles sales.
Meta Platforms plunged 22.5% to $100.65 after the social media platform operator reported second quarterly fall in revenue in a row.
Third quarter revenue declined 4% to $27.7 billion and net income plunged 52% to $4.4 billion from $5.2 billion a year ago.
Diluted earnings per share fell to $1.64 from $3.22 a year ago.
The company also forecasted revenue in the fourth quarter to fall between $30 billion and $32.5 billion, lower than $33.6 billion in the fourth quarter 2021.
McDonald's increased 3.4% to $265.45 after the fast food chain operator reported better-than-expected quarterly results and added that the U.S. store traffic rose despite the increase in menu prices.
The fast food chain operator said global comparable sales increased 9.5% and the U.S. comparable sales increased 6.1%, ninth quarterly increase in a row.
Third quarter revenues declined 5% to $5.8 billion from $6.2 billion a year ago.
Net income dropped 8% to $1.98 billion from $2.1 billion and diluted earnings per share fell 6% to $2.68 from $2.86 a year ago.
McDonald's increased quarterly cash dividend by 10% to $1.52 a share.
ECB Hikes Rates and Forecasts More Increases to Follow
The European Central Bank lifted its key lending rate by 75 basis points, the second large-size rate hike in a row and third increase this year.
The central bank also said it plans to revise terms of targeted longer term refinancing operations or TLTROs, the plan designed to encourage banks to lend to customers.
The interest rate charged for such facilities will be changed on November 23 and the banks will be given an opportunity for early repayment.
The facility was created to incentivize banks to increase lending in the real economy at the height of the pandemic but since the economic conditions have changed and inflation has soared from less than 2% to above 10%.
After the latest rate hike, the main lending rate was revised higher to 1.5%, the level not seen since 2009.
Despite the latest rate increase, rates are still in negative territory and the central bank is not done with rate increases.
- Barry Adams
- 27 Oct, 2022
- New York City
European markets turned lower and energy prices rose after the European Central Bank lifted its main lending rate as expected.
The European Central Bank lifted its key lending rate by 75 basis points, the second large-size rate hike in a row and third increase this year.
The central bank also said it plans to revise terms of targeted longer term refinancing operations or TLTROs, the plan designed to encourage banks to lend to customers.
The interest rate charged for such facilities will be changed on November 23 and the banks will be given an opportunity for early repayment.
The facility was created to incentivize banks to increase lending in the real economy at the height of the pandemic but since the economic conditions have changed and inflation has soared from less than 2% to above 10%.
After the latest rate hike, the main lending rate was revised higher to 1.5%, the level not seen since 2009.
Despite the latest rate increase, rates are still in negative territory and the central bank is not done with rate increases.
- Bridgette Randall
- 27 Oct, 2022
- Frankfurt
The European Central Bank lifted its key lending rate by 75 basis points, the second large-size rate hike in a row and third this year.
The central bank also said it plans to revise terms of targeted longer term refinancing operations or TLTROs, the plan designed to encourage banks to lend to customers.
The interest rate charged for such facilities will be changed on November 23 and the banks will be given an opportunity for early repayment.
The facility was created to incentivize banks to increase lending in the real economy at the height of the pandemic but since the economic conditions have changed and inflation has soared from less than 2% to above 10%.
After the latest rate hike, the main lending rate was revised higher to 1.5%, the level not seen since 2009.
Despite the latest rate increase, rates are still in negative territory and the central bank is not done with rate increases.
- Scott Peters
- 26 Oct, 2022
- New York City
Ford Motor Company dropped 1.7% to $12.70 after the automaker reported a third quarter loss of $827 million.
Ford said larger-than-expected loss was driven by $1 billion in higher supply chain issues related costs and parts shortages affecting at least 40,000 vehicles sales.
Meta Platforms plunged 12.2% to $114.0 after the social media platform operator reported a second quarterly fall in revenue in a row.
Third quarter revenue declined 4% to $27.7 billion and net income plunged 52% to $4.4 billion from $5.2 billion a year ago.
Diluted earnings per share fell to $1.64 from $3.22 a year ago.
The company also forecasted revenue in the fourth quarter to fall between $30 billion and $32.5 billion, lower than $33.6 billion in the fourth quarter 2021.
Morningstar, Inc edged lower 1.5% in after-hours trading after the financial information company posted third quarter revenue increased 9.2% to $468.2 million.
Net loss in the third quarter was $9.0 million, or 21 cents a diluted share, compared to net income $49.0 million, or $1.13 a diluted share.
The company also reduced its operations in China and took a one-time charge of $30.1 million.
O'Reilly Automotive Inc gained 3.5% to $805.0 after the auto parts retailer reported the third quarter sales increased 9% to $3.80 billion from $3.48 billion.
Net income increased to 5% to $585 million or 15.4% of sales from $559 million or 16.1% of sales.
Diluted earnings per common share increased 14% to $9.17 on 64 million shares from $8.07 on 69 million shares a year ago.
Raymond James Financial, Inc closed at $106.92 and was unchanged in after-hours trading after the financial services company reported fiscal fourth quarter revenue increased 5% to $2.83 billion.
Net income in the quarter increased to $437 million or $1.98 a diluted share from $429 million or $2.02 a share from a year ago.
Raymond James repurchased 600,000 shares of common stock for approximately $62 million at an average price of approximately $104 per share in the fiscal fourth quarter.
Including additional share repurchases totaling $38 million in October, approximately $800 million remained available under the current approved share repurchase authorization as of October 26, 2022.
The company revised full-year 2022 revenues in the range of $14.1 billion and $14.3 billion and comparable same store sales to rise between 4.5% and 5.5%.