Adani Acquires Holcim Cement Stake in India for $10.5 Billion

Adani Group plans to acquire stakes in two cement companies held by Switzerland-based Holcim Limited for as much as $10.5 billion. 

The deal has been in the works for two months and attracted offers from the largest cement maker UltraTech and Jindal Group of companies. 

Gautam Adani, India's richest man, controlled Adani Enterprises and related companies plan to offer $6.4 billion in cash for the 63.1% stake in Ambuja Cements Ltd and 54.5% stake in ACC Limited. 

The remaining stakes will be purchased through the open offers meeting the regulatory requirements of local stock exchanges. 

Ambuja Cements jumped 2.3% to 367 rupees, below the offer price of 385 rupees and ACC gained 3.8% to 2,192.50 rupees below the offer price of  2,300 rupees. 

With the acquisition. Adani Group will vault to the second largest cement producer in India. 

Ambuja and ACC with the combined cement production capacity of 70 million tons will lag only the largest maker UltraTech with 120 million ton annual capacity. 

Holcim first acquired its stake in Ambuja Cement in January 2006 and later increased its stake in a complex transaction involving ACC Limited in 2013. 

At the time of acquisition, Gujarat Ambuja was the largest cement maker with 33 million tons of annual capacity ahead of the Aditya Birla Group controlled UltraTech Cement. 

U.S. Stocks Extend Losses On Global Slowdown Worries

U.S. market indexes fell as investors faced the prospect of global slowdown and stubbornly high inflation.  

The S&P 500 index fell 0.1% to 4,014.50 and the Nasdaq Composite index declined 0.2% to 12,349.30. 

The Fed's lagging response to surging inflation and the growing possibilities of an economic slowdown have dampened the market sentiment around the world. 

With the elevated U.S. inflation and stubbornly high international energy prices after the U.S. and Europe placed sanctions on Russia, interest rates are significantly lagging the consumer prices. 

With no end in sight for war in Europe, crude oil prices are trading above $110 a barrel and wheat prices soared 6% to $12.48 a bushel and extended year-to-date gain to 61%. 

The latest surge came after India restricted wheat exports on the worries that the elevated energy prices are stoking domestic food prices. 

On the earnings front, Home Depot, Target, and Walmart Stores are scheduled to release earnings this week. 

Spirit Airlines jumped 18% after JetBlue launched a hostile takeover offer for $30 a share. Spirit shareholder meeting is scheduled on June 10 to vote on its merger plan with Frontier. 

Twitter Inc declined more than 2% on growing speculation that the billionaire investor Elon Musk may not follow through with his offer to takeover the company. 

Warby Parker declined nearly 4% after the company reported unexpected quarterly loss and revenues fell short of analysts' expectations. 

Carvana Inc jumped more than 10% after the user-car retailer stated in a regulatory filing that the company plans to cut costs and expects to be profitable in 2023 on core earnings basis. 

European markets traded lower after the European Commission lowered euro zone economic growth estimate in the current year to 2.7% from the previous forecast of 4.0% in March and revised lower to 2.3% from 2.7% in 2023. 

Separately, the German statistics agency showed that wholesale inflation perked up to 23.8% in April from 22.6% in March, record increase since 1962 when record keeping began. 

In European trading, the DAX index declined 0.5% to 13,937.77, the CAC-40 index fell 0.2% to 6,348.92, and the FTSE 100 index gained 0.25% to 7,436.98. 

Deepening Economic Gloom In China Drag Asian Markets

Asian markets traded with a downward bias after the latest economic data from China and Japan underwhelmed investors. 

The Nikkei index increased 0.5% to 26,547.05, the Hang Seng Index added 0.3% to 19,950.21, and the SSE Index in Shanghai declined 0.3% to 3,073.75. 

The Kospi index in Korea fell 0.3% to 2,596.58. 

April retail sales and industrial production data were significantly weaker than expected in China. 

Retail sales declined 11.1%, twice the level expected, from a year ago and industrial output declined 2.9% contrary to the expectation of an expansion, the National Bureau of Statistics said today.  

Central bank also left its key rate unchanged but lowered mortgage rates for the first time home buyer. 

In Japan, the producer price index jumped 10.0% in April after rising at the upwardly revised 9.7% in March, the Bank of Japan said today.  

Stocks in Mumbai gained for the first time in seven days in cautious trading after Asian and European markets were muted. 

The Sensex index gained 180.22 or 0.2% to 52,973.84 and the Nifty index advanced 60.85 or 0.4% to 15,842.30.

Cement stocks were in focus after Adani Group won the auction to acquire Switzerland-based Holcim Limited's stake in Ambuja and ACC for $10 billion. 

The deal was in works for more than two months and attracted bids from several large conglomerates in India. 

Holcim has been divesting its cement holdings and shifting the business mix to higher value added products including concrete aggregates. 

Ambuja Cement added 2.3% to 367.40 rupees and ACC advanced 3.8% to 2,192 rupees. 

India Bans Wheat Exports Reacting to Heat Wave and Domestic Food Price Surge

Late Friday evening the government banned the export of wheat citing falling inventories and production and rising domestic prices. 

Food Secretary Sudhanshu Pandey and Commerce Secretary B V R Subrahmanyam jointly addressed a press conference and said that the unregulated export often leads to hoarding. 

The minsters were quick to add that no ban is "in perpetuity" and the government will review the ban if domestic conditions improve. 

India exported about 1.4 million tons of wheat in April but the rising food prices and falling crop production changed the government's mind this week. 

Wheat production is likely to fall at least 5% below the 111 million tons target level and spot prices have surged as much as 20% above the 20,150 rupees or $270 a ton fixed-price set by the government.

"Wheat production is expected to decline in the current year to 105 million tons but there is no dramatic fall in production," Food Secretary Pandey noted.    

The Indian government had set the wheat export target of 10 million tons this year after exporting 7.5 million tons in the financial year ending in March 2022. 

About half of India's exports were sent to the neighboring-country Bangladesh. 

The recent heat wave across the nation has dramatically changed agriculture conditions in the Northern region where most of the wheat is produced. 

Temperatures have reached above 45 degrees centigrade, 5 degrees above the normal in the last five weeks. 

International wheat price has surged to $480 a ton, significantly higher than the domestic price below $300 a ton set by the government. 

India is the second largest wheat producer in the world with a production of 110 million ton. 

China, the largest wheat producer, exported about 10 million tons of wheat of the 134 million tons of production in 2021. 

Russia, the third largest wheat producer, exported about 37 million tons of the 85 million tons according to the data available from the World Trade Organization.   

Ukraine exported 20 million tons of the 25 million tons of wheat production in 2021, according to the government statistics.  

Australia and the United States each exports about 2.7 million tons of wheat. 

Russia's invasion of Ukraine and the Western nations' sanctions on Russia removed a significant amount wheat available for importers. 

At least six nations have put restrictions or ban on wheat exports including Philippines, Argentina, Kazakhstan, Turkey, Bulgaria, and Hungary. 

India's Inflation Reaches 8-Year High In April After Western Sanctions Sustain Higher Oil Prices

The Consumer Price Index jumped in April to 7.79%, an 8-year high on the back of elevated food and energy prices. 

The latest inflation rate was only exceeded by the 8.33% rate in May 2014. 

The inflation rate in April 2021 was 4.23%. 

The data released by the National Statistical Office showed higher prices of vegetables, oil, fuel, and food items drove the price surge in the month. 

The inflation surged above the Reserve Bank of India's target rate of 4% for the fourth month in a row. 

The rural and urban food price inflation rose to 8.38% in April from 7.68% in March, a 17-month high. 

Inflation rate in the rural areas was at an 8-year high rate of 8.38% in April and urban areas was at an 18-month high 7.09%.  

Core rate of inflation in April which excludes food and energy prices rose to a 95-month high of 6.97% and stayed above 5% for the 24th month in a row. 

Health service inflation increased 7.2% rate, a 16-month high and prices for education services rose at 23-month high of 4.12%. 

The sustained rate of high inflation forced the Reserve Bank of India to announce an unscheduled repo rate increase of 40 basis points or 0.4% and CRR by 0.5% on May 11th. 

If the current trend persists then the inflation rate is likely to stay above 7% for the fiscal 2023. 

RBI may be forced to increase rates at the next two meetings in a row and kill the additional demand and slow down the economic recovery. 

The Industrial Production Index increased 1.9% in March, a separate report from the statistics bureau noted. 

Nasdaq Led Rebound Trimmed Weekly Losses in New York and Europe

U.S. stocks rebounded from a week of losses and leading indexes advanced as investors returned in search of tech bargains. 

The S&P 500 index increased 1.3% to 3,980.25 and the Nasdaq Composite advanced 1.8% to 11,569.50. 

Crude oil jumped 4% to $110.43 a barrel and the yield on 10-year bond to 2.93%. 

The indexes opened higher and quickly advanced in the session reaching intra-day high around 12:15 p.m. ET but began to track lower after crude oil price advanced and the rally failed to spread beyond the tech and energy sector. 

After an additional hour of trading regained momentum but trimmed the gains near the final fifteen minutes of trading. 

For the week, the S&P 500 declined 1.3% and the Nasdaq Composite fell 1.2%. 

Apple gained 2.5% to $146.10, Microsoft added 1.6% to $259.54, Meta Platforms advanced 3.4% to $197.74, and Amazon jumped 5.2% to 2,250.20. 

Twitter Inc soared 11% after Elon Musk demanded the company to confirm the number of fake accounts operated by spam or robots. 

Twitter in a regulatory filing had said about 5% of its active accounts are likely to be operated by robots or appear to be fake. 

Exxon Mobil added 2.9% to $88.82, Chevron gained 2% to $167.93, Schlumberger NV increased 4.2% to $40.73. 

European markets advanced after bargain hunters searched for stocks in energy and tech sectors. 

The DAX index increased 1.5% to 13,938.2, the CAC-40 index gained 1.6% to 6,303.02, and the FTSE 100 index added 1.6% to 7,348.66. The benchmark SMI index in Switzerland gained 1.3% to 11,650.42.

For the week, the DAX gained 2.8%, the CAC-40 advanced 2.2%, and the FTSE 100 index added 0.4%. 

Industrial output in the euro zone declined 1.8% in March from February and fell 0.8% from a year ago, the statistics agency of the region Eurostat said today. 

The weakening supply chains and rising prices in the region impacted the output in the region. 

The agency also revised lower February output to 0.5% increase from 0.7% and to 1.7% gain from 2.0% on a monthly and annual basis respectively. 

Separately, the French statistics agency said inflation rose at an annual pace of 5.4% in April from a year ago. 

Energy stocks were in demand after crude oil prices continued the ascent on the worries that resumption of economic activities across Europe and China may lead to acute shortages. 

Brent crude traded up 1.6% to $109.2 a barrel.  

Royal Dutch Shell and BP Plc gained more than 1%. 

Renault gained more than 2% after the company said it is looking to separate its research and development arm focused on building electric vehicles. 

Finland-based Fortum Oyj  jumped 4% after the utility company said it is planning to exit from its Russian operations. 

In Zurich, Credit Suisse, UBS, and Holcim Group gained between 2% and 3%. Holcim is looking to sell its India operations that may fetch between $7 billion and $9 billion. 

Bridgepoint Group PLC jumped 7.7% after the annual meeting of shareholders and the company finalized its dividend. 

Drax Group and Vodafone Group fell on broker downgrades.   

Asian markets advanced after bargain hunters looked for companies in the tech, energy, and utility sectors. 

The Nikkei index increased 2.6% to 26,427.14, the Hang Seng Index gained 2.7% to 19,89.02, and the Shanghai Composite index advanced 1% to 3,084.03. 

Chinese authorities denied that Beijing is likely to be placed in a Shanghai-style lockdown. 

Separately Shanghai local authorities confirmed that the city is expected to reach to zero-Covid at several communities levels next week. 

Stocks in Mumbai edged lower for the sixth day in a row on the worries that the elevated energy prices will slow down the economy and lift rates higher. 

Movers: Affirm, Duolingo, Mister Car Wash, Poshmark, Robinhood, Twitter, Toast

Affirm Holdings Inc jumped 20% to $21.56 after the company reported smaller-than-expected loss and lifted full-year revenue outlook. 

The payment network company also extended its partnership with the e-commerce platform Shopify. 

March quarter revenues rose 54% to $354.8 million and net loss shrank 81% to $54.7 million. 

The company lifted full-year revenue outlook to between $1.33 billion and $1.34 billion and fourth quarter revenues between $345 million and $355 million. 

Duolingo Inc soared 33.3% to $89.29 after the language software company reported total revenues increased 47% to $81.2 million and net loss shrank to $12.2 million from $13.6 million a year ago. 

The quarterly loss was mostly driven by stock-based compensation expenses. 

Paid subscribers increased 60% to 2.9 million from a year ago and the company guided full-year adjusted earnings between breakeven and $3 million. 

The Honest Company gained 14% to $3.34 after the apparel company reported March quarter revenues declined 15% to $68.7 million and net loss surged four-fold to $14.6 million from a year ago. 

The company also reaffirmed its full-year revenue outlook to be flat compared to 2021. 

Mister Car Wash Inc declined 5.2% to $11.44 after the company reported March quarter revenues rose 25% to $219.4 million and net income jumped nearly 40% to $35.5 million or 11 cents a share. 

The operator of 399 car wash locations estimated full-year 2022 revenues between $875 million and $895 million and net income between $139 million and $149 million. 

The company plans to open 30 new locations in the year. 

Poshmark Inc jumped 25% to $12.18 after the online apparel marketplace operator reported first quarter revenues increased 13% to $91 million and a net loss shrank about 82% to $14 million or 18 cents a share. 

The company also offered a weaker-than-expected revenues outlook for the current quarter between $86 million and $88 million. 

Robinhood Markets, Inc jumped 25.2% to $10.74 after Sam Bankman-Fried, the CEO of crypto-exchange FTX, noted in a regulatory statement acquiring 7.6% stake in the company for about $648 million.   

Twitter Inc plunged 7% to $41.88 after Tesla CEO Elon Musk said the takeover deal is "temporarily" on hold and requested more data on the number of fake and spam accounts. 

Tesla Inc surged 5.6% to $768.47 after the Twitter deal news. 

Toast Inc jumped 11.5% to $15.90 after the technology platform for restaurants reported March quarter revenues jumped 90% $535 million and net loss shrank to $23 million from $99 million a year ago. 

The company also lifted its full-year revenue outlook to a range between $2.5 billion and $2.55 billion from the previous estimate between $2.349 to $2.409 billion. 

Euro Zone Industrial Production Weaken in March

Industrial output in the euro zone after adjusting for seasonal factors declined 1.8% in March from February and fell 0.8% from a year ago, the statistics agency of the region Eurostat said today. 

The weakening supply chains and rising prices in the region impacted the output in the region. 

The agency also revised lower February output increased to 0.5% from 0.7% and to 1.7% gain from 2.0% on a monthly and annual basis respectively. 

The production index in the European Union fell 1.2% in the European Union in March. February production index increased 0.6% in the EU. 

Separately, the French statistics agency said inflation rose at an annual pace of 5.4% in April from a year ago. 

Bargain Hunters Lift Indexes in U.S. and Europe

Investors returned searching for bargains in tech stocks and also bulked up energy stocks following another sustained rise in crude oil prices. 

The S&P 500 index increased 1.3% to 3,980.25 and the Nasdaq Composite advanced 1.8% to 11,569.50. 

Twitter Inc soared 11% after Elon Musk demanded the company to confirm the number of fake accounts operated by spam or robots. 

Twitter in a regulatory filing earlier had said about 5% of its active accounts are likely to be operated by robots or appear to be fake. 

European markets advanced after bargain hunters searched for stocks in energy and tech sectors. 

The DAX index increased 1.5% to 13,938.2, the CAC-40 index gained 1.6% to 6,303.02, and the FTSE 100 index added 1.6% to 7,348.66. 

Industrial output in the euro zone declined 1.8% in March from February and fell 0.8% from a year ago, the statistics agency of the region Eurostat said today. 

The weakening supply chains and rising prices in the region impacted the output in the region. 

The agency also revised lower February output to 0.5% increase from 0.7% and to 1.7% gain from 2.0% on a monthly and annual basis respectively. 

Separately, the French statistics agency said inflation rose at an annual pace of 5.4% in April from a year ago. 

Energy stocks were in demand after crude oil prices continued the ascent on the worries that resumption of economic activities across Europe and China may lead to acute shortages. 

Brent crude traded up 1.6% to $109.2 a barrel.  

Royal Dutch Shell and BP Plc gained more than 1%. 

Renault gained more than 2% after the company said it is looking to separate its research and development arm focused on building electric vehicles. 

Finland-based Fortum Oyj  jumped 4% after the utility company said it is planning to exit from its Russian operations. 

Asian markets advanced after bargain hunters looked for companies in the tech, energy, and utility sectors. 

The Nikkei index increased 2.6% to 26,427.14, the Hang Seng Index gained 2.7% to 19,89.02, and the Shanghai Composite index advanced 1% to 3,084.03. 

Chinese authorities denied that Beijing is likely to be placed in a Shanghai-style lockdown. 

Separately Shanghai local authorities confirmed that the city is expected to reach to zero-Covid at several communities levels next week. 

Stocks in Mumbai edged lower for the sixth day in a row on the worries that the elevated energy prices will slow down the economy and lift rates higher. 

After Wild Trading Indexes Nearly Erase Losses

Stocks were on the defensive after the market rebound effort failed in the morning but managed to erase losses of the day. 

The familiar story of the last five weeks played out again today when the leading indexes attempt to open or stay above the flat line but gradually sink to lower levels in the day. 

The S&P 500 index fell 0.13% to 3,930.08 and the Nasdaq Composite index closed nearly unchanged at 11,370.96. 

For the year, the S&P 500 has fallen 18%, the Nasdaq Composite index has declined 28.2%, and the Russell 2000 index has lost 23.4%. 

The U.S. Senate in a 80-19 vote confirmed the reappointment of Federal Reserve Chairman Jerome Powell for the second term.  

The nomination was in the works for months and the approval was widely anticipated as the Fed steps its plan to lift rates higher and faster. 

The tech selloff continued on Wall Street and leading companies led the losers again but major averages managed to erase day's losses. 

Apple declined 3.2%, Microsoft dropped 2.6%, Tesla fell 1%, Alphabet declined 1.3%, and Nvidia Corp fell 4%.  

Twitter Inc fell 2.7% to $44.76, about 10% below the takeover price offered by Elon Musk led group of investors on the worries that the deal may not go through. 

Separately, Twitter also focused on trimming expenses and froze hiring in the event the deal falls apart and said the two leading executives departed the company. 

Earlier in the session, stocks opened lower after the producer price index in April eased  but stayed near the elevated level in March. 

The producer price index in April rose 0.5% from March and jumped a whopping 11% from a year ago but cooled from 11.5% annual rate increase in March. 

Core rate of wholesale price which excludes food, energy and trade services rose 0.6% in April and jumped 6.9% from a year ago but fell from 0.9% and annual rate of 7.1% in March.  

The wholesale price index showed that the inflation is broad-based and that fed into the worries that the Federal Reserve's response in taming inflation is lagging and may be ineffective. 

The U.S. fed fund rates are still near 1%, significantly lower than the inflation rate between 8% and 9%, resulting in negative real rates of at least 7%. 

The Fed has a long way to go and seems to be in no hurry. 

The market sentiment in Europe was also gloomy on the worries that the central bank in the region is falling behind in rising and negative real rates are expanding. 

 The DAX index fell 2.3% to 13,503.21, the CAC-40 declined 2.5% to 6,111.47, and the FTSE 100 index decreased 2.1% to 7,191.35. 

Siemens declined 7% after the company said it will leave Russia. 

U.K. GDP growth declined to 0.8% after expanding at 1.3% in the previous quarter on a sequential basis, the Office of National Statistics said. 

The economic activities shrank 0.1% in March but overall the economy is larger by 1.2% from its pre-COVID February 2020 level. 

In Asian trading indexes generally closed lower after the release of the U.S. inflation data. 

The Nikkei index declined 1.8% to 25,748.22 and the Hang Seng Index dropped 2.2% to 19,380.34. 

Tech stocks led the losers in Tokyo and Hong Kong following the losses in the U.S.

SoftBank Group declined 8% and KDDI, Tokyo Electron, and Advantest fell between 2% and 4%.   

After the close of trading in Japan, Soft Bank said its tech-focused Vision Funds lost 3.5 trillion yen about $27.5 billion in the fiscal year ending in March. 

CEO Masayoshi Son said the company will take a more conservative approach in investing in future and will take a more cautionary view of investing in China. 

Stocks in Mumbai traded sharply lower following weak markets in Asia and the resurgent inflation. 

The Sensex index closed down 2.1% to 52,930.21 and the Nifty index fell 2.2% or 359.10 to 15,808.00. 

India's consumer inflation index is at a 8-year high but below 8.33% in May 2014 and the Industrial Production Index increased 1.9% in March, the report also noted. 

The Kospi index in Seoul dropped 1.6% and extended losses for the eighth day in a row. The index is now trading near an 18-month low on the weakness in tech stocks. 

Samsung Electronics, SK Hynix and Hyundai declined more than 1%. 

The Australian market index dropped to a five-month low on the weakness in tech and bank stocks. 

The ASX 200 fell 1.8% to close at 6,941. 

Movers: Beyond Meat, Dutch Bros, Six Flags, Sonos, Walt Disney, WeWork

Beyond Meat Inc increased 3.1% to $26.98 after the plant-based food maker reported revenues increased 1.2% to $110 million and a net loss of $100.5 million or $1.58 a share from $27.3 million or 43 cents a share. 

The quarterly loss increase was driven by the investment in the launch of Beyond Meat Jerky dragging the gross margin down 904 basis points. The manufacturing costs are expected to soften significantly in the second-half of the year, added the company.  

The company reiterated its full-year revenues estimate between $560 million and $620 million, an increase between 21% and 33%. 

The volume of products sold increased 12.4% to 21.3 million pounds. 

Dutch Brothers Inc declined 30.3% to $23.92 after the beverage chain operator reported first quarter revenues soared 54% to $152.2 million and opened 34 new stores. 

The beverage chain also reported higher loss in the quarter $16.8 million compared to $4.8 million a year ago and guided flat to negative comparable sales growth in the second quarter.  

Six Flags Entertainment Corp declined 3.4% to $28.79 after the theme park operator reported first quarter revenues increased 68% to $138 million and net loss shrank to $66 million from $96 million a year ago. 

The company attracted more visitors despite a calendar shift and fewer days in the quarter compared to a year ago. Total attendance at locations increased 25% to 1.7 million, but fell short of some analysts' estimates.  

Spending per person increased $19.30 drive by higher admission fee of $10.33.   

Sonos Inc rose 15.1% to $21.95 after the company reported second quarter revenues increased 20% to $399.8 million but net income plunged about 50% to $8.5 million on weakening gross margin. 

The company reinforced its fiscal year 2022 revenue outlook between $1.95 billion and $2 billion on strong demand but lowered its gross margin range to between 45.5% and 46% from the previous range between 46% and 475. 

The Walt Disney Company declined 1.3% to $103.92 after the theme park and entertainment company reported lower than expected revenues and profit but a strong increase in its streaming service subscribers. 

Revenues increased 23% to $19.2 billion and net income shrank 48% to $470 million or 26 cents from 50 cents a year ago. 

Disney+ paid subscriber base increased 33% to 137.7 million and ESPN+ base rose to 62% to $22.3 million. 

The U.S. subscriber base for the Disney+ increased 19% to 44.4 million. 

WeWork Inc soared 10% to $5.61 after the flexible office space provider reported first quarter revenues increased 7% to $765 million and ahead of its estimated range between $740 million and $760 million. 

Physical occupancy rate jumped to 67% from 50% in the quarter a year ago. 

Net loss in the quarter shrank 75% to $504 million or 57 cents from $2 billion or $14.34 a year ago. 

Producer Prices Ease but Remain Elevated at 11%

The producer price index tracking wholesale inflation increased at a slower pace in April but remained elevated. 

The 4-decade high wholesale inflation feeds into record consumer prices as manufacturers pass higher prices to retailers.  

The producer price index in April rose 0.5% from March and jumped a whopping 11% from a year ago but cooled from 11.5% increase in March. 

Core rate of wholesale price which excludes food, energy and trade services rose 0.6% in April and jumped 6.9% from a year ago but fell from 0.9% and annual rate of 7.1% in March.  

The wholesale price index showed that the inflation is broad-based. 

The index for final demand for services in April was unchanged from the previous month after increasing at 1.2% in March. 

The report follows the consumer price index report on Wednesday showing easing of inflation to 8.3% in April from 8.5% in March but stayed elevated near a 4-decade high. 

Weekly Jobless Claims Inch Up to 203,000

Initial weekly jobless claims rose 1,000 to 203,000 in the week ending May 7.  

 The Labor Department noted in a press release the seasonally adjusted insured unemployment rate was 1.0% in the week matching the rate in the previous week. 

The continuing claims adjusted for seasonal factors at the end of April 30 declined 44,000 from the previous week to 1.343 million, the lowest level since Jan 30, 1970 when it was 1.332 million. 

The advance number of actual initial claims under state programs, unadjusted, declined 6,554 from the previous week to 191,803 in the week ending May 7.

U.S. Indexes Under Pressure Again As Tech Selloff Goes Global

U.S. stocks extended losses and the benchmark index S&P 500 inched closer to bear market territory. 

The S&P 500 index declined 1.2% to 3,886.34 and the Nasdaq Composite index fell 1.7% to 11,183.07. 

For the year so far, the S&P 500 index has fallen 18.9% and the Nasdaq Composite index has dropped 29.4%. 

Global markets are also on the downside as indexes in Europe ease more than 2% and in Asia declined between 1.8% and 2.2%. 

Tech stocks around the world are falling following losses in the tech heavy weights in the U.S. 

In today, trading Apple dropped 3.6% to $141.29, Google parent Alphabet declined 0.9% to 2,258.60, Microsoft fell 1.7% to $256.04. 

Amazon traded near flat-line at 2,099.34 and has now lost all the gains during the Pandemic boom since March 2020. 

The latest data on the wholesale price index failed to calm market jitters. 

The producer price index rose 0.5% in April from March or 11% from a year ago, the Bureau of Labor Statistics reported today. 

The index had gained at annual rate of 11.5% in March.  

Core rate of wholesale inflation excluding food, energy and services rose 0.6% in April and jumped 6.9% from a year ago but slower than 7.1% annual rate in March. 

A separate economic report from the agency noted jobless claims increased 1,000 to 203,000 in the week ending on May 7. 

However, the continuing claims declined 44,000 to 1.343 million, the lowest level since Jan 3, 1970. 

In Europe, indexes fell more than 2% on the rising inflation worries. 

The DAX index fell 2.3% to 13,503.21, the CAC-40 declined 2.5% to 6,111.47, and the FTSE 100 index decreased 2.1% to 7,191.35. 

Siemens declined 7% after the company said it will leave Russia. 

U.K. GDP growth declined to 0.8% after expanding at 1.3% in the previous quarter on a sequential basis, the Office of National Statistics said. 

The economic activities shrank 0.1% in March but overall the economy is larger by 1.2% from its pre-COVID February 2020 level. 

In Asian trading indexes generally closed lower after the release of the U.S. inflation data. 

The Nikkei index declined 1.8% to 25,748.22 and the Hang Seng Index dropped 2.2% to 19,380.34. 

Tech stocks led the losers in Tokyo and Hong Kong following the losses in the U.S.

SoftBank Group declined 4% and KDDI, Tokyo Electron, and Advantest fell between 2% and 4%.   

Stocks in Mumbai traded sharply lower following weak markets in Asia and the resurgent inflation. 

The Sensex index closed down 2.1% to 52,930.21 and the Nifty index fell 2.2% or 359.10 to 15,808.00. 

India's consumer inflation index is at a 8-year high but below 8.33% in May 2014 and the Industrial Production Index increased 1.9% in March, the report also noted. 

The Kospi index in Seoul dropped 1.6% and extended losses for the eighth day in a row. The index is now trading near an 18-month low on the weakness in tech stocks. 

Samsung Electronics, SK Hynix and Hyundai declined more than 1%. 

The Australian market index dropped to a five-month low on the weakness in tech and bank stocks. 

The ASX 200 fell 1.8% to close at 6,941. 

Duke Realty Says $24 Billion Insufficient to Prologis

Duke Realty rejected the latest revised offer from Prologis for $24 billion. 

Prologis offered to exchange one Duke Realty share for 0.466 of its share. The latest all-cash offer is higher than 0.465 offered on November 9, 2021. 

Duke responded to the public offer and said that the current offer "is insufficient."

Prologis is a leader in managing warehouses and logistics properties and Duke is known for its industrial and medical properties. 

Duke Realty stock jumped 7.8% to $53.46 and Prologis stock fell 1.3% to $123.74. 

In the last 52-weeks of trading, Prologis has gained 10% and Duke Realty has advanced 20%.