- Barry Adams
- 25 May, 2022
- New York City
U.S. market indexes pointed lower after a day of volatile trading and traders await details of the latest Federal Reserve's policy meeting on May 4.
Futures on the S&P 500 index declined 0.3% to 3,977.45 and the Nasdaq Composite fell 0.3% to 11,736.28.
At the last Fed policy meeting chaired by Jerome Powell the central bank lifted its key rate by 50 basis points and highlighted the urgency of taming elevated inflation.
Markets have been volatile and accelerated the declines on the worries that the Fed may be out of policy tools in combating elevated energy prices and may lag in taming inflation for a long time to come.
Crude oil futures for the front month delivery jumped $1.50 to $111.37 a barrel.
The yield on 10-year Treasury notes declined to 2.73%.
Earnings news dominated pre-market trading after retailers and home builders release earnings.
Dick's Sporting Goods declined 13% to $62.21 after the retailer reported better-than-expected quarterly results and lower-than-expected fall in comparable sales.
The company also lowered its annual outlook citing macro conditions and higher inflation.
Urban Outfitters gained 1.4% to $18.99 after the apparel retailer said its revenues and earnings were hit by higher freight and raw materials costs.
Net income plunged to $31.5 million or 33 cents a share from $53.5 million or 54 cents a share a year ago.
Nordstrom, Inc gained 4% to $21.56 after the apparel retailer reported a surge in sales and also lifted its annual sales and profit outlook.
Toll Brothers jumped 3% to $45.98 after the luxury home builder said in the latest quarter it completed 2,407 homes, an increase of 6%.
Sales increased 19% to $2.2 billion and net income rose to $220.6 million or $1.85 a share from $127.9 million or $1.01 share a year ago.
Home sale gross margin in the quarter increased to 24.1% from 21.9% a year ago.
- Scott Peters
- 24 May, 2022
- New York City
Advance Auto Parts, Inc after the auto parts retailer reported sales in the first quarter ending on April 23 declined 1.3% to $3.4 billion and comparable same store sales increased 0.6%.
Net earnings in the quarter fell 26% to $139.7 million or $2.26 a share from $185.9 million or $2.81 a share.
Gross profit margin in the quarter was flat at 44.6% on the improved category mix and increased store brands partially offset by inflationary costs and unfavorable channel and product mix.
Net cash used in operating activities was $54.9 million and free cash outflow was $169.8 million compared to net cash flow of $329.9 million and free cash inflow of $259.0 million in a year ago period.
The decrease was primarily driven by lower net income and working capital.
On a GAAP basis, the company's operating income was $203.3 million, or 6.0% of net sales, compared with 7.6% in the first quarter of 2021.
The retailer also opened 35 new stores and returned $403 million to shareholders through stock repurchases and dividends.
During the quarter, the company repurchased 1.1 million shares at an aggregate cost of $248.2 million at an average price of $231.41 a share.
At the end of the fiscal first quarter the company had $1.3 billion remaining in its share repurchase program.
On May 18, 2022 the company declared a regular cash dividend of $1.50 per share to be paid on July 1, 2022 to all common stockholders of record as of June 17, 2022.
Guidance and Outlook
The retailer guided full-year 2022 revenues between $11.2 billion and $11.5 billion and comparable sales to increase between 1% and 3%.
Capital expenditures between $300 million and $350 million and stock repurchase between $500 million and $700 million.
Adjusted diluted earnings per share are expected to fall between $13.30 and $13.85 compared to $12.02 in 2021.
Free cash flow is expected to exceed $775 million compared to $823 million in 2021.
Company and Stock
Advance Auto Parts, Inc declined 3.7% to $176.50 after the auto parts retailer reported quarterly results.
Advance Auto Parts has fallen 23.9% to $180.23.
- Barry Adams
- 24 May, 2022
- New York City
Stocks on Wall Street plunged but indexes managed to trim losses in the final hour of trading.
The S&P 500 declined 0.81% to 3,941.48 and the Nasdaq Composite index fell 2.4% to 11,264.46.
Major indexes were on the defensive in the morning after social media app operator Snap Inc issued a revenue warning and said digital advertising sales are running below estimates in the current quarter.
Averages attempted to climb higher at least six times before trimming the losses in half in active trading.
Despite Snap's relative small footprint in the digital advertising market, nervous investors sold stocks of larger companies in the industry.
Snap Inc plunged 43% to $12.79.
Alphabet Inc declined 5% to $2,120, Meta Platforms fell 7.2% to $181.95, and Apple Inc declined 1.6% to $140.80.
High anxieties were also on display in the bond market and the yield on 10-year Treasury notes ran up to 3.21% before subsiding to 2.79%.
Crude oil futures also traded in a tight range but closed down 14 cents to $110.15 a barrel.
Home sales in April plunged 16% from a year ago largely after buyers walked away from record high prices and rising mortgage rates.
Seasonally adjusted single-family new home sales declined 16% to 591,000 annual rate, according to the estimate released by the U.S. Census Bureau and Department of Housing and Urban Development.
The sales were lower than the 750,000 annual rate that many economists had anticipated.
Home sales in April were the slowest since April 2020 when sales were at an annual pace of 623,000.
Auto parts retailer reported better than expected quarterly results.
AutoZone jumped 5.8% to $1910.22 after reporting an increase in same store sales despite cold weather and late arrival of spring and tough comparison with the previous year.
Advance Auto Parts edged down 1.7% to $180.23 after same store sales increased 0.6% and jumped 25.3% on a two-year basis.
Nordstrom, Inc after the close reported fiscal first quarter total revenues rose 20% to $3.57 billion and net income of $20 million or 13 cents a share compared to a loss of $166 million or $1.05 a share.
The retailer revised higher earnings per share for the year between $3.38 and $3.68 from the earlier estimate of $3.18 to $3.50.
- Brian Turner
- 24 May, 2022
- New York City
Seasonally adjusted single-family new home sales declined 16% to 591,000 annual rate, according to the estimate released by the U.S. Census Bureau and Department of Housing and Urban Development.
The sales were lower than the 750,000 annual rate that many economists had anticipated.
Home sales in April were the slowest since April 2020 when sales were at an annual pace of 623,000.
Rising cost of new homes and mortgage rates are limiting home buyer's purchases.
30-year fixed mortgage rates have been rising and rates increased from 4.88% to 5.41%, according to the data published by Mortgage News Daily.
Buyers are pulling back from home purchases with the median home price of a home across the U.S. increased 24% from $309,900 in April 2020 to $450,600 in April 2022.
Sales declined 16% from the revised rate of 709,000 in March and fell 26.9% from the estimate of 809,000.
The median home price in April was $450,600 and average sale price was $570,300.
The seasonally?adjusted estimate of new houses for sale at the end of April was 444,000 representing a supply of 9.0 months at the current sales rate.
Home builders are also witnessing a decline in traffic according to a recent report released by the industry association.
Builder confidence in the market for newly built single-family homes fell eight points to 69 in May, according to the National Association of Home Builders and Wells Fargo Housing Market Index released on May 17.
Builder sentiment declined for the fifth month in a row and the lowest reading since June 2020.
- Scott Peters
- 24 May, 2022
- New York City
AutoZone, Inc, the auto parts retailer, said net sales in the fiscal year third quarter ending on May 7 rose 5.9% to $3.9 billion and comparable domestic store sales increased 2.6%.
Despite the colder than normal weather and late arrival of spring and tough comparison to the previous quarter sales driven by stimulus, the retailer reported positive comparable sales.
Net income edged down to $592.5 million or $29.93 a share from $596.2 million or $27.15 a share.
For the nine-month period ending in the third-quarter, same store sales increased 9.5% compared to 19.0% in the period a year ago.
In the quarter, total sales across all stores in the U.S., Mexico, and Brazil rose to $556,000 from $541,000 a year ago and sales per square foot increased to $83 from $81.
At the end of the quarter, Inventories increased 13.9% from a year ago primarily driven by inflation and the remaining driven by higher store counts and distribution centers.
Net inventory, defined as merchandise inventories less accounts payable, on a per store basis, was negative $216,000 versus negative $167,000 last year and negative $198,000 last quarter.
AutoZone repurchased 449,000 shares of its common stock for $900 million during the fiscal third quarter, at an average price of $2,006 per share.
At the end of the fiscal third quarter, the company had $2.06 billion remaining under its current share repurchase authorization.
Weighted shares outstanding at the end of the quarter declined to 20.4 million from 22.5 million a year ago.
Stockholders' deficit increased to $3.4 billion at the end of the quarter from $1.8 billion a year ago.
Guidance and Outlook
During the earnings call, the company indicated comparable same stores sales are reaccelerating in the current quarter.
The company did not provide any quarterly or annual sales or earnings or business metrics guidance.
Company and Stock
AutoZone, Inc, the auto parts retailer, operates 6,115 stores in the U.S., 673 stores in Mexico, and 58 stores in Brazil with a total retail space of 44.7 million square foot.
The average store size edged up to 6,673 square foot.
The retailer added 24 new stores in the U.S., 4 in Mexico, and 3 in Brazil.
AutoZone stock rose 2.8% to 1,858.55 after the auto parts retailer reported earnings.
For the year so far, AutoZone stock has declined 9% to $1,861.68.
- Scott Peters
- 24 May, 2022
- New York City
Abercrombie & Fitch reported net sales in the first quarter ending on April 30 rose 4% to $812.7 million and gross margin fell to 55.3% from 63.4% a year ago when sales were $781.4 million.
The retailer reported an unexpected quarterly loss of $16.5 million or 32 cents from profit of $41.7 million or 67 cents a share.
Gross profit margin rate declined 810 basis points after freight cost increased $80 million partially offset by higher unit average cost on lower promotions.
Hollister branded goods declined 3% to $428.8 million and Abercrombie & Fitch branded goods rose 13% to $383.9 million.
Store sales in the U.S. rose 6%, Europe and the Middle East area rose 3% but in the Asia Pacific region plunged 35%.
Total international sales were flat in the quarter compared to a year ago at $227 million and the U.S. sales rose 6% to $585 million.
Inventories at the end of the quarter soared 45% to $563 million due to increased in-transit inventory, higher units on hand, and increased average unit costs driven by freight compared to a year ago.
In the quarter the company repurchased $100 million or 3.3 million of its shares and $258 million remaining in the repurchase program established in November 2021.
Guidance and Outlook
The retailer guided second quarter revenues to be down in low-single digits and for the full-year to be flat to up 2% from a year ago.
The retailer also guided operating margin for the year to fall between 5% and 6% from the previous estimate between 7% and 8% on the account of higher freight and raw materials cost and lower sales due to an assumed inflationary impact on consumers.
The operating margin in the second quarter is expected to fall between 3% and 4% on higher raw materials and freight costs and net sales to decline in low single-digits from a year ago.
Company and Stock
Abercrombie & Fitch is a specialty apparel retailer for men, women, and kids and operates 730 stores under five brands.
Abercrombie & Fitch fell 26.2% to $19.96 after the apparel retailer reported earnings.
In the year so far, Abercrombie & Fitch stock has declined 46.91% to $18.57.
- Barry Adams
- 24 May, 2022
- New York City
Market indexes in Europe traded lower after the European Central Bank president raised the prospects of a rate hike at the next policy meeting in June.
The DAX index declined 1.5% to 13,956.31, the CAC-40 index fell 1.5% to 6,263.08, and the FTSE 100 index decreased 0.4% to 7,485.09.
The eurozone economies are facing supply shocks driven by higher oil and natural gas prices and global supply chain disruptions.
The producer and consumer prices are rising at 4-decade high rates across the currency block.
Last week, Germany reported producer price increase of 33% in April, a record high in decades.
"The next step in rate normalisation will involve following through with our forward guidance on ending net asset purchases and on rate lift-off.
If we see inflation stabilising at 2% over the medium term, a progressive further normalisation of interest rates towards the neutral rate will be appropriate.
But the speed of policy adjustment, and its end point, will depend on how the shocks develop and how the medium-term inflation outlook evolves as we move forward," Lagarde highlighted in a post on the ECB website.
Tele2 AB dropped 8.2% to 115 Swedish krona after Kinnevik sold a 7.2% stake in the telecom operator.
Adevinta ASA gained 2% after the classified advertising company reported first quarter sales rose 5% to 387 million euros and swung to profit of 72 million euros or 6 cents a share compared to 38 million euros or 6 cents loss a year ago.
The company reaffirmed its long term revenues increase of 15% and EBITDA margin between 40% and 45%.
In the second quarter, the company estimated revenues to increase in low double-digits in core markets and operating income between 575 million and 600 million euros excluding discontinued operations.
Barclays PLC rose 3.6% to 163.46 pence after the bank launched a one billion pound stock buyback program.
Renewi PLC jumped 6% after the waste recycling company reported full-year revenues rose 10% and core earnings rose 83%.
The British pound declined against the euro and the U.S. dollar after the Purchasing Managers' index showed a severe slowdown in economic activities in May compared to robust activities in the eurozone.
The Chartered Institute of Procurement & Supply composite output index dropped sharply to 51.8 in May from 58.2 in April, lower than expected reading of 56.5.
The euro area private sector index declined to 54.9 in May from 55.8 in April, a smaller than expected decline.
The private sector expanded on a strength in service activities driven by household demand.
In Asian markets, China focused indexes failed after the latest stimulus measures failed short of expectations by a wide margin.
The Shanghai Composite index declined 2.4% to 3,070.93 and the Hang Seng Index fell 1.4% to 20,112.35.
In Tokyo, the Nikkei 225 index declined 0.9% to 26,748.11 and the latest private survey showed manufacturing activities growth declined slightly in May from April.
- Barry Adams
- 24 May, 2022
- New York City
Abercrombie & Fitch fell 26.2% to $19.96 after the apparel retailer reported net sales in the first quarter ending on April 30 rose 4% to $812.7 million and gross margin fell from 55.3% from 63.4% a year ago when sales were $781.4 million.
The retailer reported an unexpected quarterly loss of $16.5 million or 32 cents from profit of $41.7 million or 67 cents a share.
The retailer guided second quarter revenues to be down in low-single digits and for the full-year to be flat to up 2% from a year ago.
Advance Auto Parts, Inc declined 3.7% to $176.50 after the auto parts retailer reported sales in the first quarter ending on April 23 declined 1.3% to $3.4 billion and comparable same store sales increased 0.6%.
Net earnings in the quarter fell 26% to $139.7 million or $2.26 a share from $185.9 million or $2.81 a share.
AutoZone, Inc rose 2.8% to 1,858.55 after the auto parts retailer said net sales in the fiscal year third quarter ending on May 7 rose 5.9% to $3.9 billion and comparable domestic store sales increased 2.6%.
Net income edged down to $592.5 million or $29.93 a share from $596.2 million or $27.15 a share.
Best Buy Co Inc jumped 3.6% to $75.22 after the electronics retailer reported net sales in the fiscal 2023 first quarter ending on April 30 declined 8.6% to $10.6 billion and comparable same store sales fell 8.5% after rising 37.9% in the quarter a year ago.
Net earnings declined to $341 million or $1.49 a share from $595 million or $2.35 a share.
The company lowered fiscal 2023 sales outlook between $48.3 billion and $49.9 million from the previous estimate between $49.3 billion and $50.8 billion.
Comparable sales are now expected to decline between 3% and 6% from the previous estimate of declined between 1% and 4%.
Insulet Corporation jumped 6% to $214.87 after the company was said to be in merger talks with the glucose monitoring systems maker Dexcom.
Dexcom, Inc declined 10.2% to $290.82.
The merger talks were first reported by Bloomberg News.
Petco Health & Wellness Company 2.3% to $14.46 after the company said net sales in the first quarter ending in April rose 4.3% to $1.48 billion and comparable same store sales rose 5.1%.
Operating income in the quarter rose to $49.9 million from $47.7 a year ago.
The retailer reaffirmed its previous estimate of full-year sales between $6.15 billion and $6.25 billion and capital expenditure between $275 million and $325 million.
Snap Inc plunged 39% to $13.65 after the operator of an online chat platform warned that the current quarter sales are running lower than expected.
The company said in a regulatory filing that it is battling on several fronts including changes in Apple's privacy policy, inflation, wage pressures, falling advertising rates.
After the warning, Meta Platform dropped 9%, Twitter fell 2%, Google declined 6%, and Pinterest fell more than 21%.
Zoom Video Communications Inc rose 1.6% to $90.65 after the company reported quarterly revenues rose 12% but net income was cut in half.
Revenues in the Americas rose 15% and enterprise revenues jumped 31% to represent 52% of total revenues.
- Barry Adams
- 24 May, 2022
- New York City
U.S. stock futures point to lower opening after a day of market rebound led by financial stocks.
Futures on the S&P 500 index decreased 1.1% to 3,928.50 and the Nasdaq Composite fell 1.7% to 11,832.50.
Tech stocks drove market indexes lower again after the popular online chat platform operator Snap Inc warned that advertising revenues are running lower than expected in the current quarter.
The company is also planning to slow down new hires.
In pre-market trading, Snap Inc declined 28% and dragged down other tech companies relying on advertising revenues.
Google, Meta Platforms, and Netflix fell more than 3%.
Zoom Video jumped 3% but traded as high as 13% in yesterday's after-market trading after the company released earnings.
The online communication company said quarterly net plunged 50% but the company improved annual revenues outlook as enterprise clients adjust to hybrid work environments and employees return to office after a prolonged Covid-19 hiatus.
Abercrombie & Fitch plunged more than 30% after the retailer reported quarterly loss on higher cost of goods sold and inventory challenges.
In Europe, market indexes traded lower after the ECB President Christine Lagarde raised the possibility of a rate hike at the next policy meeting in June.
The DAX index declined 0.7% to 14,072.51, the CAC-40 index fell 0.8% to 6,306.68, and the FTSE 100 index decreased 0.03% to 7,511.79.
In Asian markets, China focused indexes failed after the latest stimulus measures failed short of expectations by a wide margin.
The Shanghai Composite index declined 2.4% to 3,070.93 and the Hang Seng Index fell 1.4% to 20,112.35.
In Tokyo, the Nikkei 225 index declined 0.9% to 26,748.11 and the latest private survey showed manufacturing activities growth declined slightly in May from April.
- Scott Peters
- 23 May, 2022
- New York City
Zoom Video Communications said sales in the first quarter 2023 ending in April rose 12% to $1.07 billion.
Net income in the quarter fell nearly half to $113.6 million or 37 cents per share from $227.4 million or 74 cents per share.
Net cash provided by operating activities in the first quarter fell to $526.2 million from $533.3 million a year ago.
Free cash flow in the quarter increased to $501 million from $454 million a year ago.
Deferred revenues in the quarter rose 2% to $1.3 billion and revenue performance obligation surged 44% to $3 billion.
As more customers sign for longer term contracts, the company said it plans to take 63% of RPO as revenues over the next 12 months compared to 71% in the first quarter of last year.
Revenue from Enterprise customers grew 31% from a year ago and represented 52% of total revenue, up from 45% in Q1 of FY22.
The number of Enterprise customers grew 24% year over year to approximately 198,900.
At the end of the first quarter, Zoom had 198,000 enterprise customers and 2,916 contributed more than $100,000 in the trailing 12-month revenues, an increase of 46% from a year ago.
Revenues in the Americas increased 15% and in the Asia Pacific region rose 20% in the quarter from a year ago.
The company has repurchased $132 million representing 1.2 million shares of the $1 billion share buyback program announced in the last quarter.
Guidance and Outlook
In the second quarter of fiscal 2023, the company is anticipating revenues between $1.15 billion and $1.2 billion and non-GAAP from operations between $360.0 million and $365.0 million.
Non-GAAP diluted EPS is expected to be between $0.90 and $0.92 based on 308 million non-GAAP weighted average shares outstanding.
For the full fiscal 2023 the company is anticipating between $4.530 billion and $4.550 billion and non-GAAP income from operations between $1.480 billion and $1.500 billion.
Full fiscal year non-GAAP diluted EPS is expected to be between $3.70 and $3.77 based on 309 million non-GAAP weighted average shares outstanding.
Company and Stock
Zoom stock closed down 0.5% to $89.33 in regular trading hours and in the after-market hours gained $11.82 or 13% to $101.30.
Zoom stock has declined 51.5% in the year so far.
- Barry Adams
- 23 May, 2022
- New York City
Stocks advanced in New York and bargain hunters searched among beaten down tech and retail sector stocks.
The S&P 500 index surged 1.9% to 3,973.75 and the Nasdaq Composite index rose 1.6% to 11,535.26.
Inflation worries, stock market valuation contraction, and the looming recession have dominated the trading sentiment for the last two months.
The S&P 500 index touched a 20% decline mark from the peak in Friday's trading and the Nasdaq Composite has fallen more than 27% in the last six months of trading.
Banks traded higher after JPMorgan Chase said that the bank is likely to reach its key return targets earlier than previously expected supported by higher lending rates.
JPMorgan Chase surged 6% to $124.64, Citigroup advanced 6% to $52.85, and Wells Fargo increased 5.04% to $43.77.
Retail stocks were in focus again ahead of earnings from Costco, Nordstrom, and Dollar General later in the week.
Costco jumped 3% to $429.00 and the warehouse club is expected to report stronger earnings after the close on Thursday May 26.
In the fiscal second quarter ending on Feb 13, the retailer reported comparable U.S. same store sales excluding gasoline increased 15.8% from a year ago and slowed to 12.7% in March, and dropped further to 8.1% in April.
Last week competitors BJ's Wholesale Club and Sam's Club owned by Walmart reported strong sales gains and a surge in membership.
In the week, Nordstrom, Ralph Lauren, Advance Auto Parts, AutoZone, Dick's Sporting Goods, American Eagle, Ollie's Bargain are expected to release earnings.
Zoom Video fell 1.2% to $88.59 and the video conferencing company is scheduled to release earnings after the close today.
In Europe, market indexes gained after investors bid up stocks and corporate activities perked up.
The business confidence index in Germany rose to 93.0 in May from 91.9 in April, Munich-based Ifo said today.
The confidence index was expected to decline to 91.4 on the account of rising inflation and slowing sales after improving modestly in April.
The DAX index advanced 1.4% to 14,175.13, the CAC-40 index rose 1.2% to 6,358.17, and the FTSE 100 index advanced 1.7% to 7,513.08.
Merger and acquisition news dominated the market sentiment.
Siemens AG gained after Siemens Energy made a cash tender offer to acquire all outstanding shares in Siemens Gamesa Renewable Energy.
In Asian markets stocks were subdued after China reported rising infection cases in Beijing over the weekend and the city imposed lockdown in 22 districts.
Shanghai Composite index lost early gains to close nearly unchanged at 3,146.86 and the Hang Seng index declined 1.2% to 20,470.86.
Stocks in Mumbai were also under pressure after the Reserve Bank of India is set to lift rates again at the next policy meeting scheduled on June 6.
The Sensex and the Nifty indexes lost early momentum and closed down after the hawkish comment from the RBI governor confirmed rate hike at the next meeting.
- Barry Adams
- 23 May, 2022
- New York City
In Europe market indexes gained after investors bid up stocks and corporate activities perked up.
The business confidence index in Germany rose to 93.0 in May from 91.9 in April, Munich-based Ifo said today.
The confidence index was expected to decline to 91.4 on the account of rising inflation and slowing sales after improving modestly in April.
The DAX index advanced 1.4% to 14,175.13, the CAC-40 index rose 1.2% to 6,358.17, and the FTSE 100 index advanced 1.7% to 7,513.08.
Merger and acquisition news dominated the market sentiment.
Siemens AG gained after Siemens Energy made a cash tender offer to acquire all outstanding shares in Siemens Gamesa Renewable Energy.
Deutsche EuroShop AG jumped 40% to 21.90 euros after the shopping center operator received an offer from a consortium of investors for 1.4 billion euros.
Holcim Group jumped 0.9% to 46.98 Swiss francs after the company agreed to acquire Louisiana-based Cajun Ready-Mix Concrete.
Cajun has been operating in the Baton Rouge area with 108 employees and eight ready-mix plants since 2014.
Holcim recently agreed to sell its stakes in two cement companies in India to Adani Group for more than $6 billion.
In Paris, ArcelorMittal, Credit Agricole, and Societe Generale gained more than 3.5% but BNP Paribas fell more than 4%.
In Asian markets stocks were subdued after China reported rising infection cases in Beijing over the weekend.
Shanghai Composite index lost early gains to close nearly unchanged at 3,146.86 and the Hang Seng index declined 1.2% to 20,470.86.
Stocks in Mumbai were also under pressure after the Reserve Bank of India is set to lift rates again at the next policy meeting scheduled on June 6.
The Sensex and the Nifty indexes lost early momentum after the comment from the RBI governor and the indexes closed down.
- Barry Adams
- 23 May, 2022
- New York City
Axon Enterprise Inc declined 5.7% to $93.75 after the maker of Taser guns was downgraded by Morgan Stanley joining other analysts in lowering its outlook and price target.
Didi Global Inc declined 0.3% to $1.50 after the Chinese ride-hailing company won shareholder approval to delist its share from the New York Stock Exchange.
Only a year ago the company had raised $4.4 billion in a public offering and listed its stock on the NYSE.
In an extraordinary shareholder meeting on Monday in Beijing shareholders, including SoftBank and Tencent, voted in an overwhelming majority to delist the company shares from the NYSE.
The stock is expected to be delisted in June and has declined 90% from its closing price on the first day of trading on June 30, 2021.
Just a few months later, the Chinese authorities targeted the company with cybersecurity reviews and the company became a poster child for the Chinese regulatory crackdown on tech companies.
Electronic Arts jumped 2% to $133.36 after media reports suggested that the video game publisher is looking to find a merger partner.
GameStop Corp rose 1& to $96.68 after the video game retailer released its digital wallet for cryptocurrencies and NFTs.
VMware, Inc soared 21% to $115.65 after the cloud infrastructure company is in advanced talks to be acquired by the chip maker Broadcom according to news reports from Bloomberg News and Reuters.
Broadcom declined 3% to $526.86.
Starbucks added 0.7% to $73.93 and the coffee chain operator confirmed its plan to exit Russia after 15 years of presence and close down all 130 licensed cafes.
Siemens Gamesa Energy Renewable, S.A. increased $1.71 to $18.75 after Siemens Energy, a unit of Siemens AG, made a cash tender offer to acquire all outstanding shares in Siemens Gamesa Renewable Energy, the Spanish wind-turbine maker.
The company will offer
- Arjun Pandit
- 23 May, 2022
- New York City
In Asian markets stocks were subdued after China reported rising infection cases in Beijing over the weekend.
The government extended work-from-home for many of its 22 million residents after the city officials reported 99 new infections in the city.
The districts of Haidian, Chaoyang, Fengtai, Shunyi, and Fangshan were under stringent lockdowns, China's Global Times reported citing a statement of Beijing's local government spokesperson, Xu in Hejian.
Shanghai Composite index lost early gains to close nearly unchanged at 3,146.86 and the Hang Seng index declined 1.2% to 20,470.86.
Stocks in Mumbai were also under pressure after the Reserve Bank of India is set to lift rates again at the next policy meeting scheduled on June 6.
The Sensex and the Nifty indexes lost early momentum after the comment from the RBI governor and the indexes closed down.
In Tokyo, the Nikkei index increased 27,001.52 and the broader Topix index gained 0.9% to 1,894.57.
Financial services stocks were in focus after Tokio Marine Holdings Inc soared 7.4% to 7,300 yen.
Tokio Marine said fiscal year net income more than doubled to 420.48 billion yen or $3.3 billion from 161.80 billion yen a year ago.
The insurance company guided 2.3% increase in profit in the current year and said it plans to buy back 100 billion yen of its shares in the current year.
Stocks in Korea advanced for the second day in a row and the Kospi average closed up 0.31% to 2,647.38.
SK Bioscience Co Ltd jumped 4.2% to 133,000 won after the company confirmed that it has delivered its first injectable Vaccine solution for chickenpox to Pan American Health Organization, an agency under the United Nations active in the Latin America.
- Barry Adams
- 23 May, 2022
- New York City
Stocks on Wall Street opened higher after another week of relentless decline and seven weeks of losses that brought down two key indexes in or near bear zone.
The S&P 500 index advanced 0.6% to 3,925,84 and the Nasdaq Composite rose 0.13% to 11,356.05.
Stocks have been in a free fall for the last two months and S&P 500 and the Nasdaq indexes have fallen for the seven week in a row.
The S&P 500 index has declined for the seven weeks in a row and is down about 18% and the Nasdaq Composite index has fallen 28% in the year so far.
The profit recession has finally hit the valuations and investors have been rerating future cash flows and lowering price-earnings ratios of tech, transportation, banking, and retail sector stocks.
Investors will scrutinize the earnings from Nordstrom, Costco, Zoom Video, and Dollar General during the week.
Electronic Arts traded higher 3% to $134.85 after media reports suggested the video game publisher is looking for a merger partner.
VMware, Inc soared 20% after the cloud infrastructure company is in advanced talks to be acquired by the chip maker Broadcom according to news reports from Bloomberg News and Reuters.
Broadcom declined 4%.
Starbucks also confirmed it will exit from Russia after 15 years of presence and close down all 130 licensed cafes.
In European trading, market indexes gained after cautious buyers stepped up buying.
The DAX index gained 0.73% to 14,083.83, the CAC-40 index rose 0.2% to 6,297.67, and the FTSE 100 index advanced 1.2% to 7,479.18.
Merger and acquisition news dominated the market sentiment.
Siemens AG gained after Siemens Energy made a cash tender offer to acquire all outstanding shares in Siemens Gamesa Renewable Energy.
Deutsche EuroShop AG jumped 40% to 21.90 euros after the shopping center operator received an offer from a consortium of investors for 1.4 billion euros.
Holcim Group jumped 0.9% to 46.98 Swiss francs after the company agreed to acquire Louisiana-based Cajun Ready-Mix Concrete.
The construction company has been selling off its cement business around the world including in India and shifting its business mix to more value added products.
In Asian markets stocks were subdued after China reported rising infection cases in Beijing over the weekend.
Shanghai Composite index lost early gains to close nearly unchanged at 3,146.86 and the Hang Seng index declined 1.2% to 20,470.86.
Stocks in Mumbai were also under pressure after the Reserve Bank of India is set to lift rates again at the next policy meeting scheduled on June 6.
The Sensex and the Nifty indexes lost early momentum after the comment from the RBI governor and the indexes closed down.