- Scott Peters
- 13 Oct, 2022
- New York City
Domino's Pizza Inc sizzled 9.8% to $331.42 after the company said revenue in its latest quarter increased 7.1% to $1.07 billion.
Net income declined to $100.5 million from $120.4 million a year ago.
Revenue increase was largely driven by 4.1% price hike at the company owned stores and similar increases charged to stores owned by franchisees.
Same store sales at U.S. locations increased 2.0%, driven by 2.2% increase in franchised stores offset by 1.9% decline at company owned stores.
Same store sales at international locations declined 1.8%, excluding foreign currency impact.
Total global retail sales fell 1.6%, driven by 4.1% increase at the U.S. locations offset by 6.8% decline at international locations.
Diluted earnings per share fell to $2.79 from $3.24 a year ago.
Outlook and Guidance
The company lifted its estimate of the negative impact of changes in foreign currency exchange rates on royalty revenues in the range between $29 million and $31 million from $22 million and $26 million.
The company plans to cut its capital expenditure to $100 million from the previous estimate of $120 million.
General and administrative expenses the current year are estimated to fall between $415 million and $420 million from the previous estimate between $420 million and $428 million.
The company reiterated its price increase outlook for the current year across all products between 13% and 15%.
Free Cash Flow
Net cash provided by operating activities was $330.2 million during the three fiscal quarters of 2022 and the company invested $50.5 million in capital expenditures in the period.
Free cash flow was approximately $279.6 million during the three fiscal quarters of 2022.
Liquidity and Long Term Debt
Long term debt at the end of the quarter was $5.2 billion.
At the end of the quarter as of September 11, 2022, the company had $114.8 million of unrestricted cash and cash equivalents.
The borrowing capacity available at the end of the quarter was $35.8 million under its 2021 Variable Funding Notes, net of $120.0 million of outstanding borrowings and letters of credit issued of $44.2 million.
Subsequent to the end of the third quarter, the company repaid $60.0 million of its outstanding borrowings under its 2021 Variable Funding Notes and entered into the 2022 Variable Funding Notes facility which provides for an additional $120.0 million of borrowing capacity.
Stock Repurchase and Dividend
During the third quarter of 2022, the company repurchased and retired 490,789 shares of common stock for a total of $196.1 million.
As of September 11, 2022, the Company had a total remaining authorized amount for share repurchases of $410.4 million.
On October 11, 2022, the Board of Directors declared a $1.10 per share quarterly dividend to shareholders of record as of December 15, 2022 to be paid on December 30, 2022.
Store Network
During the quarter, the company owned stores increase by one to 402 and franchisee added 23 increasing the count to 6,241, totaling U.S. stores to 6,643.
In the third quarter, International stores increased 201 to 12,876.
In the quarter, the net store increased 225 to 19,519.
- Scott Peters
- 13 Oct, 2022
- New York City
Taiwan Semiconductor Manufacturing Co Ltd closed up 4.8% to $67.21 after the company said third quarter revenues increased 35.9% from a year ago and 11.4% from the previous quarter to $20.23 billion.
Consolidated revenue increased 47.9% to NT$613.14 billion, net income jumped 79.7%to NT$280.87 billion and diluted earnings per share surged 79.8% to NT$10.83 or $1.79 per ADR unit.
Gross margin in the quarter was 60.4%, operating margin was 50.6% and net profit margin was 45.8%.
In the third quarter, shipments of 5-nanometer accounted for 28% of total wafer revenue; 7- nanometer accounted for 26%.
Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 54% of total wafer revenue, the statement from the company noted.
The company said it plans to cut its capital expenditure to $36 billion from the previous estimate of $40 billion reflecting weak demand for smartphones and personal computers.
The company also confirmed its plan to expand its Nanjing, China facility after it secured one-year U.S. extension to ship equipment
U.S. tightened its technology export controls to China, thwarting the second largest economy's tech ambitions.
TSMC's China sales declined to about 10% in 2021 from 17% in 2020, and the latest restrictions are likely to push sales below 7% of 2023 sales.
Despite the waiver, TSMC will not be able to support its Chinese customers and provide chips to clients like Nvidia and Advanced Micro Devices selling high end chips in China.
- Barry Adams
- 13 Oct, 2022
- New York City
Stocks staged a stunning reversal after benchmark indexes rebounded from the morning's 3% decline to close up more than 2%.
Major averages dropped as much as 3% to new 2022 lows in the first thirty minutes of trading but managed to recover losses and trade in positive territory.
Benchmark indexes rebounded after banks and energy complex stocks advanced and tech stocks reversed earlier losses.
Goldman Sachs jumped 4%, JPMorgan soared 5.5%, Apple, Visa and Microsoft increased between 3% and 3.5%.
The S&P 500 increased 2.6% to 3,669.91 and the Nasdaq Composite index added 2.2% to 10,649.15.
Crude oil rose $1.80 to $89.06 a barrel and natural gas increased 26 cents to $6.70 a thermal unit.
Inflation Stays Elevated In September
Consumer prices rose at a faster pace in September, reflecting deeply entrenched inflation expectations in the services driven economy.
The Consumer Price Index increased 0.4% in September on a seasonally adjusted basis, after rising 0.1% in August, the Bureau of Labor Statistics reported today.
Prices rose 8.2% from a year ago on a seasonally unadjusted basis, the slowest increase in seven months, compared to 8.3% in August.
Core index, excluding food and energy, rose 0.6% in September, matching the monthly rise in the previous month.
On an annual basis, core rate increased 6.6% from a year ago, a new four-decade high highlighting elevated inflation pressures.
The elevated inflation provides another signal for the Fed to continue its campaign of big rate hikes.
The Federal Reserve is widely expected to lift interest rates by 75 basis points at its next policy meeting ending on November 2.
There is no progress on inflation despite the Federal Reserve lifting rates five times in the last seven months.
The yield on 2-year Treasury notes inched higher to 4.47%, 10-year Treasury notes increased to 3.95% and 30-year Treasury bonds edged up to 3.94%.
US Stock Movers
Albertsons Companies Inc soared 11.9% to $28.73 after CNBC and Bloomberg suggested that the retailer is likely to strike a merger deal with Kroger as early as this week.
Both companies did not return calls to confirm the news.
Victoria's Secret & Company sparkled 6.2% to $34.46 after the apparel retailer guided its latest quarterly earnings is likely to be near the high end of the range.
Third quarter operating earnings are expected to be near the high end of the range between $10 million and $40 million and diluted earnings per share between breakeven and 25 cents a share.
The revised operating income and earnings guidance is based on the estimated net sales decline in the high single digit range, as previously stated.
Walgreens Boots Alliance Inc burped up 5.9% to $33.82 after the pharmaceutical retailer said revenue in the fiscal fourth quarter ending in August declined to $32.4 billion from $34.3 billion a year ago.
The retailer swung to a net loss of $415 million from $627 million and diluted earnings per share to a loss of 48 cents from 72 cents a year ago.
Walgreens guided fiscal 2023 adjusted earnings per share between $4.45 and $4.65.
Sharp Reversal In European Indexes
European indexes closed up after a wild day that saw indexes plunging as much as 1.5%, after the release of the U.S. consumer inflation data.
Geopolitical tensions stayed high after Russia intensified its bombing campaign in Ukraine.
The market decline was sharp and brief after energy and resource stocks led the rebound in the region following the rise in New York.
The UK bond market turmoil continued after reports suggested that the government is likely to reverse most of the tax proposals.
The expectations of tax reversal supported a rally in the UK gilt market and also lifted the British pound for the second day in a row.
German Inflation Jumped to 10%
Consumer price inflation accelerated to 10.0% in September from 7.9% in August, according to final data reported by Destatis on Thursday.
Excluding food and energy prices, inflation increased to 4.6%.
Energy prices surged 43.9% and food prices rose 18.7% from a year ago and the ending of 9-euro tickets and a fuel discount fueled the price surge in September.
Goods prices jumped 17.2% and services prices gained 3.6% in the month.
Volatile Markets Closed Higher
The DAX index increased 1.5% to 12,355.58, the CAC-40 index added 1.04% to 5,879.19 and the FTSE 100 index advanced 0.4% to 6,850.27.
The Swiss benchmark SMI added 0.3% or 28.58 to 10,227.92 after volatile trading.
The euro edged up 0.8% to 97.78 U.S. cents and the pound jumped 2.2% to $1.135.
Europe Stock Movers
Oxford Instruments Plc gained 7.7% to 1,854.0 pence after the high-tech company sounded optimistic about first-half results.
Banks in Switzerland closed up following the surge in the sector across Europe ahead of earnings.
Credit Suisse jumped 6.5% and UBS Group increased 3.5%.
Suedzucker AG closed down 2.7% to
- Scott Peters
- 13 Oct, 2022
- New York City
Benchmark indexes soared nearly 3% and rebounded from the 3% decline at the opening after investors surmised consumer price inflation has peaked.
The Consumer Price Index accelerated on a monthly basis to 0.4% in September but eased to 8.2% from an annual basis, the Department of Labor reported Thursday.
Applied Materials, Inc increased 4.1% to $79.10 and the chip equipment maker lowered its revenue fiscal fourth quarter ending in October after the U.S. placed additional restrictions on sales to China.
The revenue is estimated at $6.4 billion with a $250 million band compared to the previous estimate of $6.65 billion with a $400 million band.
The company also lowered its adjusted earnings per share estimate in the range between $1.54 and $1.78 from the previous estimate of $1.82 and $2.18.
Albertsons Companies Inc soared 11.9% to $28.73 after CNBC and Bloomberg suggested that the retailer is likely to strike a merger deal with Kroger as early as this week.
Both companies did not return calls to confirm the news.
Delta Air Lines, Inc scaled higher 4.4% to $30.50 after the company reported record third quarter revenues on the sustained recovery in both leisure and business travel.
Revenue in the third quarter increased to $13.98 billion, 11% higher than $12.56 billion in the similar quarter in 2019.
Net income in the quarter was $696 million or $1.08 diluted earnings per share compared to $1.5 billion and $2.31 in the quarter in 2019.
The airline guided December quarter revenue to rise between 5% and 9% compared to a similar period in 2019 and earnings per share between $1.0 and $1.25.
Domino's Pizza Inc sizzled 9.8% to $331.42 after the company said revenue in its latest quarter increased 7.1% to $1.07 billion and net income declined to $100.5 million from $120.4 million a year ago.
Revenue increase was largely driven by 4.1% price hike at the company owned stores and similar increases charged to stores owned by franchisees.
Diluted earnings per share fell to $2.79 from $3.24 a year ago.
The company lifted its estimate of the negative impact of changes in foreign currency exchange rates on royalty revenues in the range between $29 million and $31 million from $22 million and $26 million.
Progressive Corp fell 0.3% to $121.02 and the insurance company said net premium written in the quarter ending in September increased 5% to $13.02 billion.
Net income in the quarter increased 5% to $124.5 million from $118.1 million and earnings per share rose to 20 cents from 19 cents a year ago.
Taiwan Semiconductor Manufacturing Co Ltd tripped up 4.8% to $67.21 after the company said third quarter revenues increased 35.9% from a year ago and 11.4% from the previous quarter to $20.23 billion.
Consolidated revenue increased 47.9% to NT$613.14 billion, net income jumped 79.7%to NT$280.87 billion and diluted earnings per share surged 79.8% to NT$10.83 or $1.79 per ADR unit.
Gross margin in the quarter was 60.4%, operating margin was 50.6% and net profit margin was 45.8%.
In the third quarter, shipments of 5-nanometer accounted for 28% of total wafer revenue; 7- nanometer accounted for 26%.
Advanced technologies, defined as 7-nanometer and more advanced technologies, accounted for 54% of total wafer revenue, the statement from the company noted.
Victoria's Secret & Company sparkled 6.2% to $34.46 after the apparel retailer guided its latest quarterly earnings is likely to be near the high end of the range.
Third quarter operating earnings are expected to be near the high end of the range between $10 million and $40 million and diluted earnings per share between breakeven and 25 cents a share.
The revised operating income and earnings guidance is based on the estimated net sales decline in the high single digit range, as previously stated.
Walgreens Boots Alliance Inc burped up 5.9% to $33.82 after the pharmaceutical retailer said revenue in the fiscal fourth quarter ending in August declined to $32.4 billion from $34.3 billion a year ago.
The retailer swung to a net loss of $415 million from $627 million and diluted earnings per share to a loss of 48 cents from 72 cents a year ago.
Walgreens guided fiscal 2023 adjusted earnings per share between $4.45 and $4.65.
- Bridgette Randall
- 13 Oct, 2022
- Frankfurt
European indexes closed up after a wild day that saw indexes plunging as much as 1.5%, after the release of the U.S. consumer inflation data.
Geopolitical tensions stayed high after Russia intensified its bombing campaign in Ukraine.
The market decline was sharp and brief after energy and resource stocks led the rebound in the region following the rise in New York.
The UK bond market turmoil continued after reports suggested that the government is likely to reverse most of the tax proposals.
The expectations of tax reversal supported a rally in the UK gilt market and also lifted the British pound for the second day in a row.
German Inflation Jumped to 10%
Consumer price inflation accelerated to 10.0% in September from 7.9% in August, according to final data reported by Destatis on Thursday.
Excluding food and energy prices, inflation increased to 4.6%.
Energy prices surged 43.9% and food prices rose 18.7% from a year ago and the ending of 9-euro tickets and a fuel discount fueled the price surge in September.
Goods prices jumped 17.2% and services prices gained 3.6% in the month.
Volatile Markets Closed Higher
The DAX index increased 1.5% to 12,355.58, the CAC-40 index added 1.04% to 5,879.19 and the FTSE 100 index advanced 0.4% to 6,850.27.
The Swiss benchmark SMI added 0.3% or 28.58 to 10,227.92 after volatile trading.
The euro edged up 0.8% to 97.78 U.S. cents and the pound jumped 2.2% to $1.135.
Stock Movers
Oxford Instruments Plc gained 7.7% to 1,854.0 pence after the high-tech company sounded optimistic about first-half results.
Banks in Switzerland closed up following the surge in the sector across Europe ahead of earnings.
Credit Suisse jumped 6.5% and UBS Group increased 3.5%.
Suedzucker AG closed down 2.7% to
- Barry Adams
- 13 Oct, 2022
- New York City
Stocks opened sharply lower and bond yields soared after the release of September's consumer inflation data.
Major averaged dropped as much as 3% in the first thirty minutes of trading but managed to recover losses and trade in positive territory.
Benchmark indexes rebounded after energy complex stocks advanced and tech stocks reversed earlier losses.
Consumer prices rose at a faster pace in September, reflecting quickly entrenching inflation expectations deep in the services driven economy.
The Consumer Price Index increased 0.4% in September on a seasonally adjusted basis, after rising 0.1% in August, the Bureau of Labor Statistics reported today.
Prices rose 8.2% from a year ago on a seasonally unadjusted basis, the lowest increase in seven months, compared to 8.3% in August.
Core index, excluding food and energy, rose 0.6% in September, matching the monthly rise in the previous month.
On an annual basis, core rate increased 6.6% from a year ago, a new four-decade high highlighting elevated inflation pressures.
The elevated inflation provides another signal for the Fed to continue its campaign of large-sized rate increase.
The Federal Reserve is expected to lift interest rates by 75 basis points at its next policy meeting ending on November 2.
There is no progress on inflation despite the Federal Reserve lifting rates five times in the last seven months.
The yield on 2-year Treasury notes inched higher to 4.44%, 10-year Treasury notes increased to 3.97% and 30-year Treasury bonds edged up to 3.93%.
The S&P 500 increased 1.4% to 3,631.96 and the Nasdaq Composite index added 1.1% to 10,559.84.
Crude oil rose 97 cents to $88.96 a barrel and natural gas increased 16 cents to $6.60 a thermal unit.
UK Gilt and Pound Turmoil Continues
European markets traded higher in the early trading and briefly plunged more than 1.5% after the release of the U.S. consumer inflation data.
Geopolitical tensions stayed high after Russia enlarged its bombing campaign in Ukraine.
The market decline was sharp and brief after energy and resource stocks led the rebound in the region following the rise in New York.
The UK bond market turmoil continued after reports suggested that the government is likely to reverse most of the tax proposals.
The tax reversal supported a rally in the UK gilt market and also lifted the British pound for the second day in a row.
The DAX index increased 1.4% to 12,339.21, the CAC-40 index added 0.6% to 5,850.72 and the FTSE 100 index advanced 0.4% to 6,850.27.
The Swiss benchmark SMI fell 8.51 to 10,199.32 after trading in tight range.
The euro edged up 0.8% to 97.78 U.S. cents and the pound jumped 2.2% to $1.135.
Oxford Instruments Plc gained 7.7% to 1,854.0 pence after the high-tech company sounded optimistic about first-half results.
Asian Markets Retreat
Asian markets retreated ahead of the release of the U.S. consumer price inflation data that may impact rate-path in several countries in the region.
The Nikkei 225 average declined 0.6% or 159.41 to 26,237.42, the Hang Seng index dropped 1.87% or 311.92 to 16,389.11 and the Sensex index fell 0.7% or 390.58 to 57,235.33.
The Japanese yen traded near a 24-year low of 146.99 and Japanese wholesale prices rose the most in five months in September, the Bank of Japan reported today.
The producer price index increased 0.7% from August and jumped 9.7% from a year ago, the preliminary data showed.
- Brian Turner
- 13 Oct, 2022
- New York City
Consumer prices rose at a faster pace in September, reflecting quickly entrenching inflation expectations deep in the services driven economy.
The Consumer Price Index increased 0.4% in September on a seasonally adjusted basis, after rising 0.1% in August, the Bureau of Labor Statistics reported today.
Prices rose 8.2% from a year ago on a seasonally unadjusted basis.
Large increases in housing, food and medical care indexes were partially offset by a 4.9% decline in gasoline index.
Core index, excluding food and energy, rose 0.6% in September, matching the monthly rise in the previous month.
The elevated inflation provides another signal for the Fed to continue its campaign of large-sized rate increase.
The Federal Reserve is expected to lift interest rates by 75 basis points at its next policy meeting ending on November 2.
There is no progress on inflation despite the Federal Reserve lifting rates five times in the last seven months.
- Barry Adams
- 12 Oct, 2022
- New York City
Volatile stocks flirted with flat-line and fell in the final thirty minutes of trading ahead of the widely anticipated consumer price inflation report on Thursday.
In choppy trading, major averages wavered after wholesale inflation in September increased 0.4% on a monthly basis, the first increase in three months.
The S&P 500 and the Nasdaq Composite indexes fell to new 2022 lows and investors digested the Federal Reserve's September minutes of meeting.
The policy makers generally sounded hawkish but one comment offered a glimmer of hope that the Fed may slow or pause rate hikes if additional tightening leads to " significant adverse effects on the economic outlook."
The S&P 500 index fell 0.3% or 11.81 to 3,577.03 and the Nasdaq Composite decreased 0.08% or 9.09 to 10,417.10.
Crude oil declined $2.34 to $87.01 a barrel and natural gas fell 14 cents to $6.44 a thermal unit.
The yield on 2-year Treasury notes edged down to 4.29%, 10-year Treasury notes decreased to 3.89% and 30-year bonds eased to 3.88%.
Wholesale Inflation Stays Elevated
The producer price index increased 0.4% in September from the previous month and rose 8.5% from a year ago, the Bureau of Labor Statistics reported Wednesday.
The wholesale inflation on an annual basis fell to 8.5% from 8.7% in August.
Much of the inflation in the month was driven by 0.4% rise in service costs and travel and accommodation services jumped 6.4%.
Cost of goods rose 0.4% driven by a 15.7% jump in the index for fresh and dry vegetables.
The wholesale inflation, excluding food, energy and trade services increased 0.4% from August and jumped 5.6% from a year ago.
The elevated producer price is likely to provide another reason for the Fed to continue its large-sized rate hike at its next meeting scheduled in three weeks.
Closely watched consumer price index is scheduled to be released on Thursday.
The Federal Reserve has raised rates five times in the last six months yet there is no progress on inflation.
The Fed is widely expected to lift rates by 75 basis points at the next policy meeting ending on November 2.
Stock Movers
PepsiCo, Inc gained 3.8% to $169.0 after the snack and beverage maker reported revenue in the third quarter increased 8% to $21.97 billion and net income rose 22% to $2.7 billion.
The better-than-expected increase in sales was driven mostly by price increase in snacks business of as much as 20% and 2% decline in volume and flat volumes in its beverage unit and about 4% rise in prices.
El Pollo Loco, Inc increased 14.2% to $10.38 after the company announced a special dividend of $1.50 a share and stock repurchase program of $20 million.
The special dividend is payable on November 9, 2022 to shareholders of record at the close of business on October 24, 2022.
Diamondback Energy Inc increased 1.4% to $141.35 after the company agreed to acquire FireBird Energy for $1.6 billion in cash and stock.
The company said it has agreed to purchase all leasehold interest in 75,000 contiguous acres and related assets of FireBird in exchange for 5.86 million shares of its common stock and $775 million cash.
Knowbe4 Inc increased 12.6% to $24.32 on the report that the company is close to finalizing a deal with Vista Equity to go private for $4.5 billion.
The news was first reported by the Wall Street Journal.
European Markets Extend Losses to 6th Day
European markets traded lower as investors reacted to mixed economic data in the region and corporate news.
Industrial output across the euro zone increased 1.5% in August from July, Eurostat reported Wednesday.
Output of factories, mines and utilities jumped 2.5% from a year ago.
A separate report showed the UK's GDP unexpectedly declined in August on weak services and industrial output.
GDP shrank 0.3% in August on a monthly basis after rising revised 0.1% in July. On a yearly basis, GDP growth slowed to 2.0% after a revised 3.5% increase in July, the Office for National Statistics reported Wednesday.
The DAX index fell 0.4% to 12,172.26, the CAC-40 index dropped 0.3% to 5,818.47 and the FTSE 100 index fell 0.9% to 6,826.15.
The euro declined to 97.07 U.S. cents and the British pound edged down to $1.109.
The Swiss franc traded down to 99.71 U.S. cents.
Koninklijke Philips NV dropped 12.3% to
- Scott Peters
- 12 Oct, 2022
- New York City
Diamondback Energy Inc increased 1.4% to $141.35 after the company agreed to acquire FireBird Energy for $1.6 billion in cash and stock.
The company said it has agreed to purchase all leasehold interest in 75,000 contiguous acres and related assets of FireBird in exchange for 5.86 million shares of its common stock and $775 million cash.
The Midland, Texas based company is focused on exploring and developing energy fields in the Permian Basin in West Texas.
The purchase adds oil fields that are adjacent to the current fields owned by the company and the purchase is expected to add inventory of oil and gas at the current rate of production.
The independent oil and natural gas company estimated the transaction to be immediately accretive in 2023 and 2024 financial metrics including cash flow per share, free cash flow per share and net asset value per share.
The company expects the acquisition to close in the fourth quarter 2022.
The crude oil production, at the time of closing, of 17 million barrels of oil per day is expected to increase to average 19 million in 2023.
- Bridgette Randall
- 12 Oct, 2022
- Frankfurt
Koninklijke Philips NV dropped 12.3% to
- Bridgette Randall
- 12 Oct, 2022
- Frankfurt
European markets traded lower as investors reacted to mixed economic data in the region and corporate news.
Industrial output across the euro zone increased 1.5% in August from July, Eurostat reported Wednesday.
Output of factories, mines and utilities jumped 2.5% from a year ago.
A separate report showed the UK's GDP unexpectedly declined in August on weak services and industrial output.
GDP shrank 0.3% in August on a monthly basis after rising revised 0.1% in July. On a yearly basis, GDP growth slowed to 2.0% after a revised 3.5% increase in July, the Office for National Statistics reported Wednesday.
The DAX index fell 0.4% to 12,172.26, the CAC-40 index dropped 0.3% to 5,818.47 and the FTSE 100 index fell 0.9% to 6,826.15.
The euro declined to 97.07 U.S. cents and the British pound edged down to $1.109.
The Swiss franc traded down to 99.71 U.S. cents.
Koninklijke Philips NV dropped 12.3% to
- Barry Adams
- 12 Oct, 2022
- New York City
Stocks on Wall Street traded higher after the release of the wholesale inflation index and ahead of the consumer inflation data on Thursday.
The S&P 500 index gained 0.3% to 3,597.16 and the Nasdaq Composite index increased 0.2% to 10,448.43.
Diamondback Energy Inc increased 1.4% to $141.35 after the company agreed to acquire FireBird Energy for $1.6 billion in cash and stock.
The company said it has agreed to purchase all leasehold interest in 75,000 contiguous acres and related assets of FireBird in exchange for 5.86 million shares of its common stock and $775 million cash.
El Pollo Loco, Inc increased 14.2% to $10.38 after the company announced a special dividend of $1.50 a share and stock repurchase program of $20 million.
The special dividend is payable on November 9, 2022 to shareholders of record at the close of business on October 24, 2022.
Knowbe4 Inc increased 12.6% to $24.32 on the report that the company is close to finalizing a deal with Vista Equity to go private for $4.5 billion.
The news was first reported by the Wall Street Journal.
PepsiCo, Inc gained 3.8% to $169.0 after the snack and beverage maker reported revenue in the third quarter increased 8% to $21.97 billion and net income rose 22% to $2.7 billion.
The better-than-expected increase in sales was driven mostly by price increase in snacks business of as much as 20% and 2% decline in volume and flat volumes in its beverage unit and about 4% rise in prices.
Koninklijke Philips NV dropped 11.7% to $13.19 after the Dutch tech company said third quarter earnings are likely to drop as much as 60% and the company plans to take a one-time charge of $1.3 billion in its respiratory care unit.
United Airlines Holdings Inc scaled higher 0.5% to $34.12 after the company said it plans to expand its transatlantic travel network to more cities in summer 2023.
"In total, United will fly to 37 cities in Europe, Africa, India and the Middle East next summer, more destinations than all other U.S. airlines combined," the airline noted in a statement today.
- Brian Turner
- 12 Oct, 2022
- New York City
The producer price index increased 0.4% in September from the previous month and rose 8.5% from a year ago, the Bureau of Labor Statistics reported Wednesday.
Much of the inflation in the month was driven by 0.4% rise in service costs and travel and accommodation services jumped 6.4%.
Cost of goods rose 0.4% driven by a 15.7% jump in the index for fresh and dry vegetables.
The wholesale inflation, excluding food, energy and trade services increased 0.4% from August and jumped 5.6% from a year ago.
The elevated producer price is likely to provide another reason for the Fed to continue its large-sized rate hike at its next meeting scheduled in three weeks.
Closely watched consumer price index is scheduled to be released on Thursday.
The Federal Reserve has raised rates five times in the last six months yet there is no progress on inflation.
The Fed is widely expected to lift rates by 75 basis points at the next policy meeting ending on November 2.
- Barry Adams
- 12 Oct, 2022
- New York City
Stocks traded higher despite the elevated wholesale inflation and ahead of the consumer price inflation report on Thursday.
The producer price index increased 0.4% in September from the previous month and rose 8.5% from a year ago, the Bureau of Labor Statistics reported Wednesday.
Much of the inflation in the month was driven by 0.4% rise in service costs and travel and accommodation services jumped 6.4%.
Cost of goods rose 0.4% driven by a 15.7% jump in the index for fresh and dry vegetables.
The wholesale inflation, excluding food, energy and trade services increased 0.4% from August and jumped 5.6% from a year ago.
The elevated producer price is likely to provide another reason for the Fed to continue its large-sized rate hike at its next meeting scheduled in three weeks.
Closely watched consumer price index is scheduled to be released on Thursday.
The Federal Reserve has raised rates five times in the last six months yet there is no progress on inflation.
The Fed is widely expected to lift rates by 75 basis points at the next policy meeting ending on November 2.
The S&P 500 index added 0.3% to 3,598.41 and the Nasdaq Composite increased 0.4% to 10,468.19.
Crude oil declined $1. 52 to $87.79 a barrel and natural gas rose 4 cents to $6.63 a thermal unit.
The yield on 2-year Treasury notes advanced to 4.31%, 10-year Treasury notes advanced to 3.96% and 30-year bonds eased to 3.95%.
Stock Movers
PepsiCo, Inc gained 3.8% to $169.0 after the snack and beverage maker reported revenue in the third quarter increased 8% to $21.97 billion and net income rose 22% to $2.7 billion.
The better-than-expected increase in sales was driven mostly by price increase in snacks business of as much as 20% and 2% decline in volume and flat volumes in its beverage unit and about 4% rise in prices.
El Pollo Loco, Inc increased 14.2% to $10.38 after the company announced a special dividend of $1.50 a share and stock repurchase program of $20 million.
The special dividend is payable on November 9, 2022 to shareholders of record at the close of business on October 24, 2022.
European Markets Extend Losses
European markets traded lower as investors reacted to mixed economic data in the region and corporate news.
The DAX index fell 0.5% to 12,161.22, the CAC-40 index dropped 0.6% to 5,799.64 and the FTSE 100 index fell 1.1% to 6,811.91.
The euro declined to 97.01 U.S. cents and the British pound edged down to $1.101.
The Swiss franc traded down to 99.61 U.S. cents.
Koninklijke Philips NV dropped 12.3% to
- Barry Adams
- 11 Oct, 2022
- New York City
Benchmark indexes reversed morning gains and closed down ahead of the consumer price inflation report on Wednesday.
The S&P 500 index traded near the 2022 low and the Nasdaq Composite index dropped to a new low in the year and traded near the level last seen in July 2020.
Both indexes declined for the fifth day in a row and bond yields rose after the Bank of England Governor Andrew Bailey said that the emergency program in support of the bond market will stop on Friday as previously announced.
The S&P 500 index decreased 0.7% to 3,588.84 and the Nasdaq Composite index declined 1.1% to 10,426.19.
Crude oil futures for the immediate month declined $2.54 to $88.56 a barrel but natural gas rose 15 cents to $6.59 a thermal unit.
Lumber price jumped nearly 5% to close at $475 per thousand board feet, a three-week high but still remained down about 38% in the year so far.
Bond market was on the edge ahead of the inflation report, and the yields on short term maturities continued to outpace longer dated Treasury debts.
The yield on 2-year Treasury notes edged up to 4.31%, 10-year Treasury notes fell to 3.94% and 30-year Treasury bonds dropped to 3.92%.
Stock Movers
Tech stocks led the decliners on the worries that elevated inflation may support the Federal Reserve's case in lifting rates, depressing the value of future earnings.
Energy complex stocks also declined after crude oil fell 3.5% and traded near $87 a barrel.
Casino stocks were under pressure after China reimposed stringent mobility restrictions in mega cities after a week of national holiday following the flare of coronavirus in several provinces.
Las Vegas Sands Corp dropped 7.7% to $36.28 and Wynn Resorts Ltd plunged 8.3% to $58.80.
Leggett & Platt, Inc dropped 7.7% to $32.01 after the diversified manufacturing company lowered its full-year earnings and sales outlook citing macroeconomic headwinds.
Uber Technologies declined 11.1% to $24.45 and Lyft Inc dropped 12.8% to $11.17 after the Labor Department proposed a new rule that could lead to gig-workers reclassification as regular employees.
European Markets Extend Losses
European markets extended losses for the fifth day in a row on the rising tensions in Ukraine.
Investors are worried that the aggressive rate tightening is likely to depress corporate earnings and dip the economy into a recession and inflation may remain elevated longer than expected.
The DAX index declined 0.4% to 12,220.25, the CAC-40 index decreased 0.1% to 5,833.20 and the FTSE 100 index dropped 1.1% to 6,885.23.
The euro traded near 97.77 U.S. cents and the British pound closed at $1.117.
The yield on 10-year German government bonds rose to a 11-year high and the Bank of England expanded its bond market intervention to include inflation-linked bonds.
German bund yields rose after reports suggested that German Chancellor Olaf Scholz is prepared to back European Union-wide joint debt issuance to tackle the surging costs of energy imports.
G7 leaders conducted a virtual meeting and discuss additional steps after Russia stepped up its bombing across Ukraine following an attach on a bridge linking Ukraine and Crimea.
The yield on 10-year German bonds was nearly unchanged at 2.29%, French bonds closed down 2.885%, British Gilt at 4.41% and Italian bonds to 4.663%.
Brent crude oil declined 1.8% to $94.49 a barrel and TTF natural gas price edged up a fraction to 154.50 euros a megawatt hour.
British Pound Falls, Gilt Yields Rise
The British pound is expected to face more selling and the U.K. bond yields are likely to surge in Wednesday's trading after the BoE Governor Bailey said emergency bond purchase plan will end in three days as planned at a meeting in Washington.
The announcement gives pension fund managers three days to unwind positions held in the Liability Driven Funds management.
The Bank of England has been supporting long-dated UK government bonds through an emergency bond purchase program and keeping the yields lower and stable, however at a cost of about 65 billion pounds.
The program was put in place on Sept 28 and expanded on October 10th to a daily bond purchase limit of