Abercrombie & Fitch gross margin declined 810 basis points on higher raw materials and freight costs and the apparel guided lower operating margins in the second quarter and for the full-year.

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European Indexes Drop After ECB Comments

May 24, 2022
Barry Adams
Indexes in Germany and France fell after the ECB President raised the need to lift rates in tackling 4-deccade inflation. The British pound fell against the euro after the UK private sector expanded at the slowest pace in fifteen months.

Futures of U.S. stocks extend losses a day after a comeback rally led by financial stocks. Tech stocks led the market decline today after Snap released revenues warning. Best Buy and Abercrombie & Fitch diverge after results.

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Zoom Video Communication 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.

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In a broad rally, popular indexes surged after JPMorgan said that the bank is likely to reach its key investment returns target earlier than expected. Banks soared 6%. Retailers were in focus ahead of another batch of earnings later in the week.

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European markets advanced after takeover and merger activities perked up. A private survey showed business confidence unexpectedly rose in Germany.

Asian markets were on the defensive after Beijing city imposed additional restrictions in 22 districts. Stocks in Japan gained after the Tokio Marine fiscal year net income more than doubled. Indexes in India were on the defensive.



Stocks opened higher and merger news dominated morning trading in New York and in Europe. Electronic Arts is looking for a merger partner and VMWare is in advanced talks to be acquired by Broadcom.

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Popular indexes after another day of wild swings stayed near the flat but extended weekly losses not seen in decades. The S&P 500 briefly touched the bear territory and the Dow logged its eighth weekly loss, the longest streak since 1932.

The latest rate cut is among a series of steps taken by Chinese authorities to revive housing demand and spur construction and manufacturing activities as the nation prepares to emerge from stringent Covid-19 restrictions.

The S&P 500 and Nasdaq indexes opened higher but turned negative after one hour of trading. The advancing oil price extended the yearlong rise approaching 80% and is likely to keep consumer inflation elevated for the next several months.

China Rate Cut Spurs Asian Rally

May 20, 2022
Arjun Pandit
Asian market advanced after China lowered its mortgage rate to revive the flagging housing market. However, the rate is likely to fall short in lifting the mood among builders. Consumer prices in Japan rose above the central bank's target rate.

Bath & Body Works said quarterly sales edged lower after the pandemic stimulus fueled sales increase waned and guided lower earnings in the current quarter and for the full-year.

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Volatile indexes searched for direction and lacked support during the three attempts to close higher. Indexes swung several times up and down after crude oil prices remained elevated and bond yields traded in tight trading range.



Children's Place reported a sharp decline in sales after record low temperatures and thin wallets kept consumers away. The retailer lowered annual sales outlook and plans to close 50 stores in the year.

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