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S&P 500, Nasdaq Turn Negative on Sustained Core Inflation Worries

  • Barry Adams
  • 12 Apr, 2022
  • New York City

Stocks turned lower and gave up early gains after the tech sector lost momentum and traders reviewed latest inflation data showing home price increase of only 5% setting the stage for elevated core inflation data in the months to follow. Oil prices jumped 5% above $100 a barrel after China relaxed lockdown measures. 10-year bond yield eased to 2.72% as investors await bank earnings on Thursday.

Albertsons Beats Estimates, Guides Elevated Inflation for 6 Months

  • Scott Peters
  • 12 Apr, 2022
  • New York City

Albertsons's fourth quarter sales increased 10% to $17.4 billion and net income to $455 million compared to a loss of $144 million a year ago. Earnings per share increased to 79 cents from a loss of 37 cents a year ago. Gross margin edged down to 28.7%. For fiscal 2022 the retailer estimated adjusted earnings between $2.70 and $2.85 a share and capex between $2.0 and $2.1 billion.

CarMax Net Income Falls 24%, User Car Price Jumps 40%

  • Scott Peters
  • 12 Apr, 2022
  • New York City

CarMax's fourth quarter total revenues rose 48% to $7.7 billion but net income fell 24% to $159 million and earnings per share dropped 23% to 98 cents. Total retail used vehicle unit sales declined 5.2% to 194,318 and comparable store used unit sales declined 6.5% from a year ago quarter. Average used car prices rose 40% to $29,312 and gross profit rose 7.4% to $2,195.

Movers: CarMax, PG&E, Albertsons, Chegg, HP Entp, Starbucks

  • Barry Adams
  • 12 Apr, 2022
  • New York City

CarMax fell 9% and extended YTD loss to 26% after the used-car retailer missed sales estimates. Average car price jumped 40%. PG&E rose after it agreed to a $55 million settlement for two fires in Northern California. Albertsons sank 7% despite beating earnings estimates. Chipotle rose but Chegg, HP Enterprise, Starbucks, and Cisco fell on negative broker comments.

Ceramic Tile Consumption Up 10%, Imports at 15-Year High

  • Hossain Akhtar
  • 12 Apr, 2022
  • New York City

U.S. ceramic tile consumption in 2021 increased 9,9% in a year after falling for two years in a row. The 3.1 billion square feet of demand was driven by gains in the U.S. housing and construction markets and overall robust economic growth, according to the tile industry association. U.S. imports reached their highest level in fifteen years comprising 74% of total with 22% share held by Spain.

Sanctions Add Pain to Farmers Squeezed by Concentration in Input and Selling Industries

  • Brian Turner
  • 12 Apr, 2022
  • New York City

Farmers are bracing for another round of price hikes in fertilizers, diesel, and natural gas. Fertilizer prices rose 60% in 2021. Nitrogen fertilizers rose 95% and potash fertilizer prices surged 70%. Additionally, only two U.S. companies supply fertilizer potash and four supply 75% of fertilizer nitrogen. Moreover, the latest sanctions on Russia and Belarus have hampered potash imports.

Russia's Economic Contraction to Exceed 10%

  • Brian Turner
  • 12 Apr, 2022
  • New York City

Russia's economy is expected to contract at least 10% in 2022 according to domestic news agency RIA. The decline in economic activities will be the largest since the fall of the Soviet Union in 1991. The economy expanded at 4.7% in 2021 and was estimated to grow in 2022 at 3% rate prior to the invasion of Ukraine. Russia is facing soaring inflation, Western sanctions, and capital flight.

U.S. Stocks Rebound On Hopes of Inflation Peaking

  • Barry Adams
  • 12 Apr, 2022
  • New York City

U.S. indexes gained after inflation rate in March rose 8.5% from a year ago and increased 1.2% in the month. Traders focused on core inflation rate slowing to 0.3% in the month but rose 6.5% in 12 months. Tech stocks led gainers with Microsoft, Qualcomm, Broadcom, and Nvidia gained more than 1%. Energy companies advanced following an uptick in crude oil prices. 10-year bond fell to 2.72%.

Energy Price Surge Drives U.S. Inflation to 4-Decade High

  • Brian Turner
  • 12 Apr, 2022
  • New York City

Consumer price index in March rose 8.5% from a year ago driven by the high cost of energy, food, and shelter. Energy prices soared 32% and food prices increased 8.8%. Core inflation which excludes food and energy rose 6.5%. For the month, core inflation increase ebbed to 0.3% after rising at 0.5% in February. Shelter costs rose 5% from a year ago and gained 0.5% in the month.

Nasdaq Drops 2%, Yields Extend 5-Week Advance

  • Barry Adams
  • 11 Apr, 2022
  • New York City

Inflation worries gripped the market sentiment and tech stocks led the decliners extending losses in the final hour of trading. The Nasdaq Composite fell 2% and for the year sank 15.3%. Latest reading on inflation tomorrow is expected to show a 4-decade high above 8%. 10-year bond yield extended 5-week long rise to 2.79% surging from the low of 0.57% in August 2020.

China-L.A. Freight Rates Drop, Congestion Shifts to East Coast

  • Hossain Akhtar
  • 11 Apr, 2022
  • New York City

Container freight rates have dropped more than estimated in March after congestion at Long Beach and Los Angeles ports eased faster than expected. Ships waiting to unload have dropped to 14 from the record high of 109 on Jan 9 and rates from China dropped to $8,000 from the high of $9,500 in March. Shippers are planning more direct routes to the East Coast ahead of labor negotiations in July.

China Stocks Slide, Auto Sales Fall 10%, Inflation Rises

  • Barry Adams
  • 11 Apr, 2022
  • New York City

China stocks took another dive as Covid-19 lockdown begins to bite activities. Auto sales in March fell 10% from a year ago to 1.58 million as factories remain constrained and supply chains are disrupted. Producer price inflation increased higher than expected 8.3% in March. Guangzhou, the manufacturing hub, closed in-person schools. The EV maker Niio on Saturday suspended vehicle production.

SailPoint Jumps 29% on $6.9 Billion Buyout Offer

  • Bridgette Randall
  • 11 Apr, 2022
  • New York City

SailPoint Technologies soared 30% after the company agreed to be acquired by private equity firm Thoma Bravo for $6.9 billion or $65.25 a share. The cyber security and identity management firm has doubled its revenues in the last five years with mounting losses. SailPoint listed its stock for $12 a share in a public offering on Nov 17, 2017 and raised $240 million according to 123jump data.

Movers: Twitter, Shopify, Nvidia

  • Barry Adams
  • 11 Apr, 2022
  • New York City

Tech stocks led the declines for the fourth week in a row and Microsoft, Tesla, AMD, Nvidia fell 3%. 

Airlines stocks advanced ahead of Delta Air earnings. Twitter plunged after Tesla CEO Musk declined to join the Twitter board. 

Shopify proposed to split stock 10-to-1 and increase CEO Lutke's voting power 40% from 34% and create founder share. 

Nvidia said it plans to double its authorized shares.

Airlines Advance Ahead of Delta Air Earnings

  • Barry Adams
  • 11 Apr, 2022
  • New York City

Airlines stocks advanced ahead of Delta Air earnings scheduled on Wednesday. Despite the surge in fuel cost in the previous quarter, jet fuel price increases are still lagging while the demand for leisure and corporate travel is healthier than a year ago. Leading airlines have shown the pricing power and domestic ticket costs are at least up 30% from the previous quarter.