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  • Bridgette Randall
  • 21 Jul, 2022
  • New York City

European markets traded mixed after the central bank lifted rates for the first time in eleven years and Italian political turmoil deepened. 

The DAX index eased 0.23% to 13,246.60, the CAC-40 index rose 0.3% to 6,201.21, and the FTSE 100 index increased 0.09% to 7,270.51.  

The European Central Bank lifted its key lending rate by 50 basis points to cool rapidly advancing inflation in the currency zone of 19 nations. 

The governing council lifted the rates more than the 25 basis points of increase  expected by traders and economists. 

With the latest increase, the key lending rate was lifted to zero and the central bank had previously signaled rate hikes at the next meetings in July and September. 

The deposit rate is now set at zero, the main refinancing rate at 0.50%, and  the marginal lending facility is set at 0.75%. 

The euro strengthened after the rate decision to $1.0245. 

The central bank reiterated its commitment to bring down the inflation rate to its target rate of 2% as supply constraints and rising energy prices lifted June inflation to 8.6%. 

"We expect inflation to remain undesirably high for some time, owing to continued pressures from energy and food prices and pipeline pressures in the pricing chain," the accompanying statement noted. 

The ECB also said that the "inflation continues to be undesirably high and is expected to remain above our target for some time. The latest data indicate a slowdown in growth, clouding the outlook for the second half of 2022 and beyond."

With the diverging interest rates in the eurozone and heightened political turmoil in Italy, the central bank released a new tool to offer additional lending facilities with stringent conditions in the event of severe bond market conditions. 

The anticipatory move is expected to keep the smooth functioning of the eurozone bond markets.

The yield on the 10-year Italian government bonds shot up to 3.6014% after Prime Minister Mario Draghi offered his resignation. 

 

European Stock Movers 

Electrolux declined 3.9% to skr 140.90 after the Swedish home appliance maker reported sharply lower than expected second quarter results. 

Revenues in the second quarter ending in June increased 11% to skr 33.75 billion. In constant currencies, sales rose 0.3% from a year ago. 

Net income in the period plunged 81% to skr 257 million from a year ago and diluted earnings per share declined to skr 0.93 from skr 4.81 a year ago.  

Nokia Oyj increased 9.2% to 5.02 euros after the Finnish telecom operator reported better than expected earnings. 

Net sales in the second quarter increased 11% to 5.7 billion euros or rose 3% in constant currencies. 

Net income in the period increased 31% to 460 million euros and diluted earnings per share rose to 8 euro cents from 6 euro cents a year ago.

IG Group jumped 8.9% to 772.34 pence after the British trading platform announced a plan to buy back its stock. 

Ocado Group traded volatile but closed up 0.8% to 781.29 pence after the online grocery delivery company reported first-half loss widened. 

Group revenues in the first-half ending May declined 4.4% to

  • Bridgette Randall
  • 21 Jul, 2022
  • New York City

Italian Prime Minister Mario Draghi resigned for the second time in as many weeks after winning the confidence vote boycotted by three coalition partners. 

Draghi decided to resign after three coalition partners - the center right parties The League and Forza Italia and the populist 5-Star Movement - withdrew its support to the 17-month old national unity government..  

Draghi will continue as a "caretaker" prime minister until the president Sergio Mattarella decides next steps. 

Italy is most likely to head to a general election as early as September delaying the annual budgetary process and the release of the European Union's $20 billion pandemic aid. 

For a week, Prime Minister Draghi worked with different factions in his National Unity government but failed to resolve differences on how to allocate government expenses and help struggling families and businesses. 

Two weeks ago, taxi unions across the nations held protests against the Draghi's plan to open up the industry to more competition. 

Despite the unprecedented outpouring of public support for Draghi's leadership, a series of pro-Draghi rallies by some 1,000 mayors across the nation and a unified support offered by the leading newspapers, three coalition partners pulled their support. 

  • Barry Adams
  • 21 Jul, 2022
  • New York City

Benchmark indexes on Wall Street lacked direction after trading near 6-week highs as investors digested the latest earnings from home builders and transportation companies. 

The S&P 500 index fell 0.7% to 3,931.47 and the Nasdaq Composite index fell 0.7% to 11,821.90 

Futures of crude oil declined $3.27 to $96.41 a barrel and natural gas rose 32 cents to $7.68 a unit.  

Heatwaves in the U.S. and Europe lifted prices of natural gas and Russia resumed its natural gas supply to Europe through Nord Stream 1 pipe network. 

The yield on 10-year Treasury notes edged lower to 2.98% and the yield on German government 10-year Bund hovered near 1.246% after the European Central Bank lifted rates for the first time in eleven years. 

The yield on Japanese government bonds were nearly unchanged after the Bank of Japan left its key lending rate unrevised at 0.25%.  

D.R. Horton fell 3.3% to $70.74 after the home builder said June quarter sales increased 21% to $8.8 billion and net income surged 48% to $1.6 billion or $4.67 a share from a year ago. 

The home builder also lowered its full-year outlook on moderating demand to a range between $33.8 billion to $34.6 billion and complete between 83,000 and 85,000 homes. 

The company had previously guided annual revenues to fall between $35.3 billion to $36.1 billion and complete between 88,000 and 90,000 homes. 

American Airlines Group declined 7.8% to $14.02 after the company reported its first quarterly profit since the start of the pandemic. 

The airline reported record second quarter revenue of $13.4 billion, a 12.2% increase over the same period in 2019 on 8.5% less capacity.

Second quarter net income was $476 million or $0.68 per diluted share.

Carnival Corp dropped 12.3% to $9.70 after the cruise line operator planned a $1 billion common stock offering to finance general corporate expenses. 

Tesla Inc gained 6.2% to $788.23 after the electric vehicle maker reported quarterly sales jumped 42% and net income doubled from a year ago. 

United Airlines dropped 9.0% to $27.93 after the company said second quarter revenues increased to $12.1 billion from $5.5 billion a year ago and jumped 6% from $11.4 billion in 2019.

The airline swung to a quarterly profit of $329 million from a loss of $434 million a year ago and declined from $1.05 billion in the corresponding period in 2019. 

Diluted earnings per share in the second quarter were $1.00 compared to a loss of $1.34 a year ago and $4.02 in the similar period in 2019.  

CSX Corp rose 4.01% to $30.92 after the railroad operator said second quarter revenues increased 28% to $3.82 billion and net income was nearly unchanged at $1.78 billion or 54 cents a diluted share. 

 AT&T fell 8.98% to $18.63 after the telecom operator reported a jump in wireless customers by 800,000 in the second quarter and lifted its guidance for wireless revenue growth. 

Revenues in the second quarter increased 2.2% to $29.6 billion after adjusting for a business unit separation and net income 

Income from continuing operations was $4.8 billion compared to $6.0 billion in the year-ago quarter. 

Diluted earnings per common share from continuing operations was $0.59 compared to $0.76 a year ago. 

Postpaid phone-only average revenue per user increased 1.1% to $54.81 from a year ago on the improved international roaming and a mix shift to higher-priced unlimited plans.

1Life Healthcare surged 68.9% to $17.18 after the operator of primary care network of One Medical clinics agreed to be acquired for $18 a share or $3.9 billion by Amazon.com Inc

Amazon.com, Inc declined 0.4% to $122.22 and the online retailer and tech services provider has been making a push in the healthcare sector with the purchase of online pharmacy PillPack in 2019 for $3 billion. 

 

 

  • Barry Adams
  • 21 Jul, 2022
  • New York City

Benchmark indexes on Wall Street lacked direction after trading near 6-week highs as investors digested the latest earnings from home builders and transportation companies. 

The S&P 500 index fell 0.7% to 3,931.47 and the Nasdaq Composite index fell 0.7% to 11,821.90 

Futures of crude oil declined $3.27 to $96.41 a barrel and natural gas rose 32 cents to $7.68 a unit.  

Heatwave in the U.S. and Europe lifted prices of natural gas and Russia resumed its natural gas supply to Europe through Nord Stream 1 pipe network. 

The yield on 10-year Treasury notes edged lower to 2.98% and the yield on German government 10-year Bund hovered near 1.246% after the European Central Bank lifted rates for the first time in eleven years. 

The yield on Japanese government bonds were nearly unchanged after the Bank of Japan left its key lending rate unrevised at 0.25%.  

D.R. Horton fell 3.3% to $70.74 after the home builder said June quarter sales increased 21% to $8.8 billion and net income surged 48% to $1.6 billion or $4.67 a share from a year ago. 

The home builder also lowered its full-year outlook on moderating demand to a range between $33.8 billion to $34.6 billion and complete between 83,000 and 85,000 homes. 

The company had previously guided annual revenues to fall between $35.3 billion to $36.1 billion and complete between 88,000 and 90,000 homes. 

American Airlines Group declined 7.8% to $14.02 after the company reported its first quarterly profit since the start of the pandemic. 

The airline reported record second quarter revenue of $13.4 billion, a 12.2% increase over the same period in 2019 on 8.5% less capacity.

Second quarter net income was $476 million or $0.68 per diluted share.

Carnival Corp dropped 12.3% to $9.70 after the cruise line operator planned a $1 billion common stock offering to finance general corporate expenses. 

Tesla Inc gained 6.2% to $788.23 after the electric vehicle maker reported quarterly sales jumped 42% and net income doubled from a year ago. 

 

First Rate Hike in Eurozone After 11 Years, Draghi Resigns

European markets traded mixed after the central bank lifted rates for the first time in eleven years and Italian political turmoil deepened. 

The DAX index eased 0.17% to 13,257.90, the CAC-40 index rose 0.6% to 6,220.59, and the FTSE 100 index decreased 0.4% to 7,234.52.  

The European Central Bank lifted its key lending rate by 50 basis points to cool rapidly advancing inflation in the currency zone of 19 nations. 

The governing council lifted the rates more than the 25 basis points of increase  expected by traders and economists. 

With the latest increase, the key lending rate is zero and the central bank had previously signaled rate hikes at the next meetings in July and September. 

The deposit rate is now set at zero, the main refinancing rate at 0.50%, and  the marginal lending facility is 0.75%. 

The euro strengthened after the rate decision to $1.0245. 

  • Brian Turner
  • 21 Jul, 2022
  • New York City

European markets traded mixed after the central bank lifted rates for the first time in eleven years and Italian political turmoil deepened. 

The DAX index eased 0.17% to 13,257.90, the CAC-40 index rose 0.6% to 6,220.59, and the FTSE 100 index decreased 0.4% to 7,234.52.  

The European Central Bank lifted its key lending rate by 50 basis points to cool rapidly advancing inflation in the currency zone of 19 nations. 

The governing council lifted the rates more than the 25 basis points of increase  expected by traders and economists. 

With the latest increase, the key lending rate is zero and the central bank had previously signaled rate hikes at the next meetings in July and September. 

The deposit rate is now set at zero, the main refinancing rate at 0.50%, and  the marginal lending facility is 0.75%. 

The euro strengthened after the rate decision to $1.0245. 

The central bank reiterated its commitment to bring down the inflation rate to its target rate of 2% as supply constraints and rising energy prices lifted June inflation to 8.6%. 

"We expect inflation to remain undesirably high for some time, owing to continued pressures from energy and food prices and pipeline pressures in the pricing chain," the accompanying statement noted. 

The ECB also said that the "inflation continues to be undesirably high and is expected to remain above our target for some time. The latest data indicate a slowdown in growth, clouding the outlook for the second half of 2022 and beyond."

With the diverging interest rates in the eurozone and heightened political turmoil in Italy, the central bank released a new tool to offer additional lending facilities with stringent conditions in the event of severe bond market conditions. 

The anticipatory move is expected to keep the smooth functioning of the eurozone bond markets and the details of the terms and conditions are scheduled to be released later today at 3:45 p.m. Frankfurt time.  

The yield on the 10-year Italian government bonds shot up to 3.6014% after Prime Minister Mario Draghi offered his resignation. 

Draghi will continue as a "caretaker" prime minister until the president Sergio Mattrarella decides next steps. 

Draghi decided to resign after three coalition partners - the center right parties The League and Forza Italia and the populist 5-Star Movement - withdrew its support to the 17-month old national unity government..  

  • Scott Peters
  • 20 Jul, 2022
  • New York City

Tesla said production and deliveries of vehicles gained despite the extended shutdowns at its facility in China and sales and profit soared in the three months to June. 

Tesla June quarter sales increased 42% to $16.9 billion from $11.96 billion a year ago.

Net income rose  rose 98% to $2.26 billion from $1.14 billion a year ago and diluted earnings per share jumped to $1.95 from $1.02 a year ago. 

Automotive gross margin declined, but still healthy, to 27.9% from 28.4% a year ago. 

Free cash flow in the quarter was nearly unchanged at $621 million from a year ago. 

On a sequential basis, second quarter profit declined to $2.3 billion from the record $3.3 billion in the first quarter on the rising raw materials costs and parts shortages.  

In the second quarter, Tesla production increased 25% to  258,580 vehicles and deliveries rose 27% to 254,695 vehicles, despite ongoing supply chain challenges and factory shutdowns beyond the company's control.

Store and service locations increased 19% to 709 from 598 a year ago. 

June 2022 was the highest vehicle production month in Tesla

  • Barry Adams
  • 20 Jul, 2022
  • New York City

U.S. stocks advanced and investors digest the latest batch of earnings and housing market indicators flashed red signals ahead. 

The S&P 500 index increased 0.6% to 3,959.90 and the Nasdaq Composite index advanced 1.6% to 11,897.65. 

The popular averages rose to five-week highs as the earnings season picks up momentum. 

Futures of crude oil decreased $1.61 to $102.65 a barrel and natural gas increased 63 cents to $7.89 a unit. 

The yield on 10-year Treasury notes increased to 3.034%.  

Mortgage Demand Drops to 22-year Low 

Mortgage demand plunged to the lowest levels in 22 years, according to data released by the Mortgage Bankers Association.

The Market Composite index, tracking the mortgage loan application volume, dropped 6.3% on a seasonally adjusted basis for the week ending July 15. 

On an unadjusted basis, the index declined 17% on a weekly basis. 

The refinance indexes declined 4% from a week ago and plunged 80$ from a year ago. 

Rising home prices and a surge in mortgage rates have drained considerable purchasing power from home buyers. 

The average contract interest rate for 30-year fixed-rate mortgages with 20% down payment and loan balances less than $647,200 increased to 5.82% from 5.74%, with points increasing to 0.65 from 0.59 including the origination fee. 

 

Existing Home Sales Drops Below 2019 Level 

Existing home sales declined 5.4% in June from May, the National Association of Realtors said in its monthly report today. 

June existing home sales declined to a seasonally adjusted rate of 5.12 million units, a fall of 14.2% from a year ago, the industry group said in its report. 

Home sales were the slowest since January 2019 outside of the sales decline during the onset of the coronavirus pandemic during the same month in 2020 and below the total 2019 sales before the pandemic. 

Stocks advanced on Wall Street on the earnings optimism and investors looked ahead to results from at least 100 more companies this week. 

 

Movers: Bakers Hughes, Bath & Bodyworks, Netflix, Tesla

Netflix increased 7.3% to $216.40 after the steaming services provider reported fewer than expected subscriber losses. 

In the second quarter, Netflix lost 970,000 subscribers, less than the previous estimate of 2 million. Moreover, earnings were ahead of expectations. 

Baker Hughes dropped 8.2% to $25.89 after the oil field services company reported sharply lower than expected earnings. 

Tesla gained 0.6% to $747.0 after the vehicle maker reported June quarter sales increased 42% to $16.9 billion from $11.96 billion a year ago.

Net income rose  rose 98% to $2.26 billion from $1.14 billion a year ago and diluted earnings per share jumped to $1.95 from $1.02 a year ago. 

Automotive gross margin declined, but still healthy, to 27.9% from 28.4% a year ago. 

Free cash flow in the quarter was nearly unchanged at $621 million from a year ago. 

In the second quarter, Tesla produced over 258,000 vehicles and delivered over 254,000 vehicles, despite ongoing supply chain challenges and factory shutdowns beyond the company's control.

June 2022 was the highest vehicle production month in Tesla

  • Barry Adams
  • 20 Jul, 2022
  • New York City

U.S. stocks advanced and investors digest the latest batch of earnings and housing market indicators flashed red signals ahead. 

The S&P 500 index increased 0.6% to 3,959.90 and the Nasdaq Composite index advanced 1.6% to 11,897.65. 

Futures of crude oil decreased $1.61 to $102.65 a barrel and natural gas increased 63 cents to $7.89 a unit. 

The yield on 10-year Treasury notes increased to 3.034%.  

Netflix increased 7.3% to $216.40 after the steaming services provider reported fewer than expected subscriber losses. 

In the second quarter, Netflix lost 970,000 subscribers, less than the previous estimate of 2 million. Moreover, earnings were ahead of expectations. 

Baker Hughes dropped 8.2% to $25.89 after the oil field services company reported sharply lower than expected earnings. 

Tesla gained 0.6% to $747.0 after the vehicle maker reported June quarter sales increased 42% to $16.9 billion from $11.96 billion a year ago.

Net income rose  rose 98% to $2.26 billion from $1.14 billion a year ago and diluted earnings per share jumped to $1.95 from $1.02 a year ago. 

Automotive gross margin declined, but still healthy, to 27.9% from 28.4% a year ago. 

Free cash flow in the quarter was nearly unchanged at $621 million from a year ago. 

Bath & Body Works, Inc increased 3.0% to $21.25 after the personal care retailer lowered its outlook for the second quarter and full-year.   

The company currently expects second quarter sales to be down six to seven percent from the last year compared to its previous guidance for a low single digit percent increase from 2021. 

The company lowered its second quarter earnings from continuing operations per diluted share to between $0.40 and $0.42 from its previous estimate of $0.60 to $0.65.

The company lowered its full year sales to be down mid-to-high-single digits from a year ago compared to its previous guidance of a low-single digit percent increase from 2021. 

Nasdaq Inc rose 6.1% to $169.04 after the exchange operator said second quarter revenues increased 6% to $893 million. 

Net income in the June quarter declined 10% to $307 million or $1.85 a share from $341 million or $2.05 a share a year ago. 

  • Bridgette Randall
  • 20 Jul, 2022
  • New York City

European markets traded higher after Italian Prime Minister Mario Draghi told lawmakers in the upper house of the parliament that he will continue to lead the nation if he wins the confidence vote. 

Later in the afternoon, Draghi won the confidence vote but three parties boycotted the vote. 

Despite Draghi's calls for unity earlier in the day, 5-Start Movement, Forza Italia, and League boycotted the election prompting stark rebuke from several leaders. 

"On this day of madness, Parliament decided to go against Italy," tweeted former Prime Minister Enrico Letta. 

Draghi is set to address lawmakers in the lower house of parliament tomorrow. 

Draghi's commitment to stay in the office comes at a crucial time for Italy as the nation needs to finalize its annual budget and pass reforms in the next few weeks ahead of receiving the next tranche of post-pandemic funding of 20 billion euros from the European Union. 

Last week, Draghi offered his resignation to Italian president after bickering coalition partner Five Star Movement pulled its support ahead of confidence vote, 

Draghi's resignation prompted a huge outpouring of public support urging him to stay in the office and lead the nation. Draghi was appointed in the office 17 months ago. 

The DAX index fell 0.2% to 13,281.98, the CAC-40 eased 0.3% to 6,184.66, and the FTSE 100 index dropped 0.44% to 7,264.31. 

Royal Mail Plc declined 1.8% to 279.87 pence after the U.K.-based mail service provider said fiscal first year revenues declined 11.5% from a year ago to 11.5 billion pounds. 

Group revenues, including GLS N.V., dropped 5.1% to 2.998 billion pounds. 

Parcels shipped in the June quarter declined 15% to 314 million from 371 million a year ago. 

ASML Holding NV gained 3.4% to 501.20 euros after the semiconductor equipment maker trimmed its fiscal full-year 2022 outlook.

Uniper SE increased 12.8% to 11.72 euros after the German utility is nearing an agreement to sell a stake to the German government in exchange for a bailout package.

The news was first reported by Bloomberg News and independently verified by Ticker.com   

Asian markets broadly closed higher on the receding worries that China's campaign against tech companies may be nearing end. 

The Nikkei index soared 2.7% to 27,680.27, the Hang Seng index added 1.1% to 20,890.22, and the Sensex index jumped 1.2% to 55,397.53. 

The People's Bank of China held its key lending rate for five-year loans at 4.45% as mortgage boycotts are spreading across the nation. 

The central bank lowered its rate by 15 basis points in May and by 5 basis points in January. 

  • Barry Adams
  • 20 Jul, 2022
  • New York City

U.S. stocks advanced and investors digest the latest batch of earnings. 

The S&P 500 index increased 0.8% to 3,869.45 and the Nasdaq Composite index advanced 1.8% to 11,925.83. 

Futures of crude oil decreased 72 cents to $103.45 a barrel and natural gas increased 15 cents to $7.42 a unit. 

The yield on 10-year Treasury notes increased to 3.038%.  

Mortgage demand plunged to the lowest in 22 years, according to the data released by the Mortgage Bankers Association.

Stocks advanced on Wall Street on the earnings optimism and investors looked ahead to results from at least 100 more companies this week. 

Netflix increased 7.3% to $216.20 after the steaming services provider reported fewer than expected subscriber losses. 

In the second quarter, Netflix lost 970,000 subscribers, less than the previous estimate of 2 million. Moreover, earnings were ahead of expectations. 

Baker Hughes dropped 8.01% to $25.98 after the oil field services company reported sharply lower than expected earnings. 

 

European markets traded higher after Italian Prime Minister Mario Draghi told lawmakers in the upper house of the parliament that he will continue to lead the nation if he wins the confidence vote. 

Draghi is set to address lawmakers in the lower house of parliament tomorrow. 

Draghi's commitment to stay in the office comes at a crucial time for Italy as the nation needs to finalize its annual budget and pass reforms in the next few weeks ahead of receiving the next tranche of post-pandemic funding of 20 billion euros from the European Union. 

Last week, Draghi offered his resignation to Italian president after bickering coalition partner Five Star Movement pulled its support ahead of confidence vote, 

Draghi's resignation prompted a huge outpouring of public support urging him to stay in the office and lead the nation. Draghi was appointed in the office 17 months ago. 

The DAX index fell 0.2% to 13,287.91, the CAC-40 eased 0.1% to 6,194.13, and the FTSE 100 index dropped 0.4% to 7,264.33. 

Asian markets broadly closed higher on the receding worries that China's campaign against tech companies may be nearing end. 

The Nikkei index soared 2.7% to 27,680.27, the Hang Seng index added 1.1% to 20,890.22, and the Sensex index jumped 1.2% to 55,397.53. 

The People's Bank of China held its key lending rate for five-year loans at 4.45% as mortgage boycotts are spreading across the nation. 

The central bank lowered its rate by 15 basis points in May and by 5 basis points in January. 

 

  • Barry Adams
  • 19 Jul, 2022
  • New York City

Rally on Wall Street gathered momentum as investors warmed up to the latest batch of earnings. 

Corporate earnings generally matched expectations set by analysts and companies are facing strong headwinds from the rising U.S. dollar. 

The S&P 500 index increased 2.5% to 3,927.48 and the Nasdaq Composite index advanced 2.9% to 11,688.64. 

Twitter gained 3.8% to $39.86 after the social media platform operator won a motion to expedite trial to force investor Elon Musk to complete purchase and satisfy the acquisition terms. 

  • Bridgette Randall
  • 19 Jul, 2022
  • New York City

European markets advanced amid mixed economic reports in the region and rising hopes that the natural gas flow will resume this week from Russia. 

Eurozone inflation accelerated in June according to the final data released by the Eurostat on Tuesday. The final data matched the flash estimate. 

The harmonized Index of consumer prices in June increased 8.6% on a yearly basis, faster than the 8.1% rise in May, final data from Eurostat showed on Tuesday.

The eurozone construction output increased 0.4% in May from April when the output was revised to a decline of 1.0% from the previous estimate of 1.1% decline, the Eurostat reported on Tuesday. 

On a yearly basis construction output increased to 2.9% in May from 2.8% in April. 

The UK unemployment remained unchanged in the three months to May, according to the Office of National Statistics on Tuesday. 

The jobless rate was 3.8% at the end of the three-month period to May matching the rate for the period ending in April. 

The DAX index surged 2.7% to 13,308.41, the CAC-40 index soared 1.8% to 6,201.22, and the FTSE 100 index gained 1.01% to 7,296.28. 

The euro rebounded to a two-week high of $1.0236. 

Novartis AG increased 3.7% to 83.32 swiss francs after the drug maker said it no longer expects its Sandoz division. 

Telenor ASA declined 0.8% to 12.40 euros after the Norwegian telecom operator reported a second quarter loss of 1.1 billion kroner compared to 2.19 billion kroner a year ago. 

Electricite de France soared 14.7% to 11.73 euros after the French government offered 12 euros a share to acquire the remaining stake in the nuclear power utility company and nationalize the Europe's largest nuclear power utility. 

The buyout offer of 9.7 billion euros is expected to be completed before the year's end. 

Alstom SA declined 2.6% to 24.14 euros and said  sales in the fiscal year first quarter ending in June increased 8% to 4.0 billion euros and booked 5.6 billion euros of new orders, increasing the order book to 83.4 billion euros. 

The company cited supply chain issues and rising input costs may impact profitability and guided dividend payout ratio between 25% and 35%.  

Kier Group increased 2.5% to 77.20 pence after the construction services company reiterated its full-year outlook.  

 

  • Arjun Pandit
  • 19 Jul, 2022
  • New York City

Asian stocks edged lower as investors worried about the growing cash crisis with Chinese banks. 

The People's Bank of China injected more liquidity in the banking system after a growing number of regional and provincial banks restricted cash withdrawals for retail customers and the U.S. dollar withdrawal for corporations. 

Agricultural Bank of China, Shanghai Pudong Bank, and ICBC are restricting customer withdrawals. 

Mortgage boycotts are widening in China as more buyers demand the delivery of promised homes on time. 

Home owners are increasingly organizing street protests in several second-tier and third-tier cities across China as authorities crackdown on social media dissent. 

Hong Kong's Hang Seng Index declined 0.9% to 20,661.06 as the central bank took steps to shore up confidence in the housing market and prevent the cash crisis to engulfing a wider list of banks. 

The Nikkei 225 Index gained 0.7% to 26,961.68 after a 3-day weekend ahead of the Bank of Japan meeting later in the week. 

Heavy equipment makers rose in trading after the Nikkei reported that the Japanese government is likely to remove a cap on defense spending from the next fiscal year.. 

Mitsubishi Heavy Industries gained 2.5% and Kawasaki Heavy Industries jumped 5.2%. 

The Kospi edged down 0.2% to close at 2,370.97 on the worries that the central bank will lift rates higher and faster and the rate path may drive the economy into a recession. 

The Sensex in Mumbai closed higher 0.5% to 54,767.52 in a late rally on the earnings optimism and the rising demand for vehicles after the strong start of the monsoon season. 

  • Scott Peters
  • 18 Jul, 2022
  • New York City

IBM revenues in the quarter rose and earnings surged despite the headwinds from a strong dollar. 

However, the tech company tightened its free cash flow outlook for the year. 

IBM said second quarter revenues increased 9% to $15.5 billion.

 Net income rose to $1.39 billion or $1.61 a diluted share from $1.33 billion or $1.47 a share. 

Net income from continuing operations surged 81% to $1.5 billion or $1.61 a diluted share from $810 million or $0.90 a share. 

Software revenues increased 6% to $6.17 billion, consulting revenues rose 10% to $4.81 billion, and infrastructure revenues rose 19% to $4.24 billion. 

Hybrid cloud revenues surged 16% to $21.7 billion in the past 12 months. 

Gross margin in the quarter declined to 53.4% from 55.2% in the quarter a year ago and said consulting unit margin faced headwind on the rising costs of talent.  

IBM

  • Barry Adams
  • 18 Jul, 2022
  • New York City

Stocks turned lower in the afternoon and Bank of America and Goldman Sachs reported better than expected quarterly results. 

The S&P 500 index decreased 0.8% to 3,830.85 and the Nasdaq Composite index fell 0.8% to 11,360.06. 

Futures of crude oil prices increased $4.53 to $102.09 and natural gas advanced 43 cents to $7.44 a unit. 

The yield on 10-year U.S. Treasury notes increased to 2.98%.  

Market sentiment turned negative after Goldman said it is looking to reinstate job cuts at the end of the year and a report suggested Apple plans to slow hiring, joining other tech companies in looking to curtail hiring. 

Goldman Sachs gained 2.6% to $301.26 after the financial services company said a surge in bond trading revenues helped to offset the weakness in investment banking revenues in the latest quarter ending in June. 

Revenues in the quarter declined 26% to $11.86 billion and net income fell 47% to $2.9 billion or $7.73 a diluted share from $5.4 billion or $15.02 a share a year ago.  

Goldman lifted its quarterly dividend to $2.50 a share in the third quarter. 

Bank of America increased 0.1% to $32.34 after the lender benefited from the rising rate environment. 

Revenues, net of interest expenses, increased 6% to $22.7 billion and net income declined to $5.9 billion or 73 cents a diluted share from $8.9 billion or $1.03 a diluted share. 

The bank also took a charge of $523 million for the provision of credit losses. 

Investors are also awaiting earnings this week from 135 companies including Tesla, Netflix, United Airlines, Union Pacific, Johnson & Johnson, and Verizon.   

Boeing Co increased 4.5% to $154.60 after Delta Airlines placed an order for 100 737 MAX 10 jets. 

"The aircraft will be 20%-30% more fuel efficient than the retiring Delta planes," Delta added in a press statement released at the signing ceremony at the 2022 Farnborough International Airshow. 

Nearly one-third of the aircraft