- Arjun Pandit
- 14 May, 2022
- New York City
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.
- Arjun Pandit
- 14 May, 2022
- New York City
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.
- Barry Adams
- 13 May, 2022
- New York City
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.
- Barry Adams
- 13 May, 2022
- New York City
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.
- Brian Turner
- 13 May, 2022
- New York City
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.
- Barry Adams
- 13 May, 2022
- New York City
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.
- Barry Adams
- 12 May, 2022
- New York City
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.
- Barry Adams
- 12 May, 2022
- New York City
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.
- Brian Turner
- 12 May, 2022
- New York City
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.
- Brian Turner
- 12 May, 2022
- New York City
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.
- Barry Adams
- 12 May, 2022
- New York City
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.
- Bridgette Randall
- 11 May, 2022
- New York City
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%.
- Brian Turner
- 11 May, 2022
- New York City
Swedish Match AB agreed to be acquired by Philips Morris International for $16 billion.
Philip Morris Holland offered SEK 161.2 billion of US$16 billion representing a 39% premium to the last closing price on May 9.
The offer is 39.7% higher than the last 30-day volume weighted trading price of SEK 75.86 and 46.6% higher than the last 90-day volume weighted trading price of SEK 72.33.
The acceptance period for the public offer is expected to commence on or around June 23, 2022 and expire on or around September 30, 2022.
The offer is conditional that at least 90% of Swedish Match AB shareholders accept the offer.
Philip Morris has targeted to be a smoke-free company and generate more than half of its net revenues from such products.
- Barry Adams
- 11 May, 2022
- New York City
U.S. stocks struggled after April inflation edged lower but stayed near the 40-year peak in March.
The S&P 500 index fell 1.6% to 3,935.25 and the Nasdaq Composite index declined 3.2% to 11,364.24.
Crude oil jumped 5% to $105.32 a barrel and the yield on 10-year U.S. Treasury note declined to 2.91% after briefly trading above 3%.
The consumer price index in April increased at a slower annual pace of 8.3% after rising at 8.5% in March, the Labor Department noted in a release today.
Core rate of inflation which excludes food and energy increased 6.2% in the 12-month period after rising at 6.5% in the period in March.
On a month-to-month basis, headline inflation in April increased 0.3% and core rate rose 0.6%.
The energy index rose 30.3% in the 12-month to April driven by 43.6% in the gasoline index and 80.5% in fuel oil index.
The index for electricity rose 11.0%, and the index for natural gas increased 22.7% over the last 12 months.
The elevated inflation for the second month stoked the debate that the U.S. inflation is broad-based, durable, and may take time and pain to tame.
Investors also worried that the elevated inflation may force the Fed to raise rates higher and faster.
Federal government's April receipts exceeded outlays and generated a surplus of $308 billion compared to the $192 billion in deficit in March.
In the fiscal year 2022 between October and April, the federal government's deficit was $360 billion, according to the Monthly Treasury Statement released by the U.S. Treasury.
In trading, investors shied away from tech stocks and Tesla declined 7%, Apple fell 5%, and Microsoft and Meta Platforms dropped 4%.
In merger news, Duke Realty rejected an unsolicited $24 billion takeover offer from Prologis and cited that the offer undervalues the company. Prologis has been pursuing the merger for several months.
Philip Morris International agreed to takeover Swedish Match AB for $16 billion.
European markets surged after the release of latest inflation data and China reported a decline in virus cases.
The DAX index jumped 2.2% to 13,828.11, the CAC-40 index gained 2.1% to 6,269.73 and the FTSE 100 index added 1.4% to 7,347.66.
German inflation in April rose to 7.4% after rising at 7.3% in March from a year ago, Destatis reported earlier in the day.
April Inflation was record high since German reunification in 1990.
Thyssenkrupp surged 11% after the steelmaker lifted sales and operating income outlook for the full-year.
Bayer AG dropped 6% after the U.S. President Biden's administration asked the Supreme Court to not hear the company's appeal to claims that its Roundup weedkiller causes cancer.
TUI AG jumped 4% after the company estimated return to profitability in the current year and Alstom SA declined 6% despite reporting better-than-expected annual profit.
In Asian markets, the Seoul index declined for the seventh day in a row on the worries that the rising supply chain costs and global inflation will severely cut profit margins of industrial corporations.
The Nikkei index in Japan declined 0.2% and Toyota Motor declined 4% after the automaker said rising logistics and raw material costs may trim full-year profit by 20%.
Hong Kong index gained 1% and Shanghai index edged up 0.8% after the release of mixed inflation data and hopes that Beijing will offer more stimulus and virus cases also declined.
Investors also reviewed the inflation data from China.
Consumer prices rose 2.1% in April after rising 1.5% in March from a year ago, the National Bureau of Statistics reported.
Factory prices or producer price index rose at a slower pace of 8% after rising at 8.3%. The producer prices are expected to slow down in the coming months reflecting weak demand.
Stocks in India lacked direction for the third week in a row and two leading indexes closed down. Initial public offerings picked up on the back of steady demand from retail investors.
The Sensex index closed down 0.5% to 54,088.39 and the Nifty index declined 0.45% to 16,167.10.
- Scott Peters
- 11 May, 2022
- New York City
Callaway Golf Company reported first quarter 2022 revenues increased 59.6% to $1.04 billion and net income declined 71% to $88 million.
Diluted earnings per share in the quarter declined to 44 cents from $2.19.
Net revenues increased $388.6 million, driven by a $229.4 million increase in the Topgolf business which was included for three months in 2022 compared to one month in 2021 due to the timing of the merger.
Golf Equipment sales increased $91.1 million and apparel and gear sales increased $68.1 million.
Changes in foreign currency rates had a $21.2 million negative impact on the quarterly revenues.
GAAP-based net income decreased due the $252.5 million in gains resulting from the Topgolf acquisition in March 2021 partially offset by favorable $65.4 million tax allowance on a comparable basis.
Adjusting for the acquisition related gains and tax valuation allowance and other items, the quarterly earnings declined to $70.9 million from $76.6 million a year ago.
The first quarter 2021 results do not include $27.8 million of pre-tax loss from Topgolf for January and February, which occurred prior to the closing of the merger.
Guidance and Outlook
The company lifted annual revenue outlook to between $3.935 billion and $3.970 billion and adjusted operating earnings between $535 million and $555 million.
Company and Stock
Callaway Golf Company is headquartered in Carlsbad, California and employs about 4,200 people.
Callaway stock jumped 13% to $20.30 after the release of earnings and for the year the stock is down 27%.