Market Update

Movers: 3M Company, Best Buy, Big Lots, Cryptocurrencies Stocks, Heico, NIO

Scott Peters
29 Aug, 2023
New York City

Best Buy Co Inc fell 5.6% to $78.28 after the electronics retailer reported fiscal second quarter results ahead of market expectations. 

The company also tightened its upper end of its full-year revenue outlook. 

Big Lots Inc soared 31% to $8.22 after the deep discount retailer reported smaller-than-expected loss. 

Big Lots said quarterly revenue rose to $1.14 billion and adjusted loss of earnings per share of $3.24. 

Heico Corp declined 1.2% to $165.91 after the company said its operating margin declined from a year ago but quarterly results were ahead of market expectations. 

Nio Inc declined 4.5% to $10.48 after the China-based electric vehicle maker reported a wider quarterly loss. 

3M Company 1.9% to $106.10 after the company agreed to settle lawsuits related to defective military earplugs for $6.01 billion. 

Cryptocurrency linked stocks advanced after a court ruled against the Securities and Exchange Commission in a suit related to spot bitcoin ETFs. 

Marathon Digital jumped 27.5%, Coinbase Global soared 14.5% and Riot Platforms jumped 16.5%.   

Tech Stocks Rallied and Treasury Yields Eased after Job Openings Dropped to 28-month Low

Barry Adams
29 Aug, 2023
New York City

Stocks on Wall Street advanced and tech stocks led gainers for the third day in a row. 

Market averages jumped up after 10-year Treasury yields fell sharply following the release of the JOLT report by the U.S. Bureau of Labor Statistics. 

The number of job openings declined by 338,000 from the previous month to 8.827 million in July, the lowest level since March 2021. 

The job openings declined for the third month in a row, indicating the job market is gradually cooling after the Federal Reserve lifted rates twelve times over the last sixteen months.  

Job openings increased in the West by 57,000 and in Northeast by 29,000 but fell in the South by 57,000 and in the Midwest by 69,000. 

The job market cooling tempered the yield on 10-year Treasury notes to 4.11% after soaring as high as 4.33% a week ago. 

Tech stocks advanced following the lower bond yields as the present value of the estimated future cash flow increased. 

 

U.S. Indexes & Yields 

The S&P 500 index traded up 0.7% to 4,462.73 and the Nasdaq Composite gained 1.0% to 13,843.77. 

The yield on 2-year Treasury notes decreased to 4.91%, 10-year Treasury notes inched lower to 4.14% and 30-year Treasury bonds edged down to 4.24%. 

West Texas Intermediate crude oil and Brent crude oil prices hovered near the levels last seen In April.  

Crude oil decreased $0.06 to $80.02 a barrel and natural gas prices increased 1 cent to $2.67 a thermal unit. 

 

U.S. Stock Movers 

Best Buy Co Inc 5.6% to $78.28 after the electronics retailer reported fiscal second quarter results ahead of market expectations. 

The company also lowered its tightened its upper end of its full-year revenue outlook. 

Big Lots Inc soared 31% to $8.22 after the deep discount retailer reported smaller-than-expected loss. 

Big Lots said quarterly revenue rose to $1.14 billion and adjusted loss of earnings per share of $3.24. 

Heico Corp declined 1.2% to $165.91 after the company said its operating margin declined from a year ago but quarterly results were ahead of market expectations. 

Nio Inc declined 4.5% to $10.48 after the China-based electric vehicle maker reported a wider quarterly loss. 

3M Company 1.9% to $106.10 after the company agreed to settle lawsuits related to defective military earplugs for $6.01 billion. 

Cryptocurrency linked stocks advanced after a court ruled against the Securities and Exchange Commission in a suit related to spot bitcoin ETFs. 

Marathon Digital jumped 27.5%, Coinbase Global soared 14.5% and Riot Platforms jumped 16.5%.   

European Markets Extended Gains, Spanish Retail Sales Accelerated In July

Bridgette Randall
29 Aug, 2023
Frankfurt

Stocks in Europe extended gains for the second day this week and investors focused on regional economic issues. 

Market indexes in London rebounded after traders returned from a late summer bank holiday and bid up resource and energy stocks after investors reacted for the first time the China's capital market stimulus measures on Sunday. 

Popular averages in Paris and Frankfurt extended gains for the second day after banks and energy stocks led the gainers. 

Investors are divided about the future rate path in the Euro Area and interest rates are still not restrictive enough to bring down inflation to the 2% level preferred by the European Central Bank. 

While central bankers are talking tough but policymakers are showing no urgency in bringing down inflation, after food, energy and housing price inflation shows no signs of abating.  

The ECB President Christine Lagarde and others speak in hawkish tones but central bankers have avoided giving out a time table in lowering inflation below 2% level. 

 

Spain's Retail Sales Accelerated In July 

Spain's retail sales accelerated 7.3% in July from the upwardly revised 6.5% annual rate in June, the National Statistics Institute or INE reported Tuesday.  

Retail sales increase was driven by a rise in non-food stores sales after personal equipment sales increased to an annual rate of 15.3% from 13.8%, other goods sales rose to 14.1% from 12% and home equipment sales advanced 1.2% from flat in the previous month. 

On a monthly basis, retail sales inched up 0.2% after rising 0.3% in June. 

 

Europe Indexes & Yields

The DAX index increased 0.4% to 15,849.79, the CAC-40 index advanced 0.4% to 7,351.61 and the FTSE 100 index 1.4% 7,440.19.

The yield on 10-year German bonds decreased to 2.57%, French bonds traded lower to 3.08%, the UK gilts edged down to 4.46% and Italian bonds fell to 4.22%.

The euro edged to the lowest level since mid-June on the hopes that the central is more likely to pause its rate hike campaign and assess the impact of the multiple rate hikes on the economy. 

The euro edged lower to $1.081, the British pound to $1.258 and the U.S. dollar fetched 88.46 Swiss cents.

Brent crude decreased $0.76 to $85.18 a barrel and the Dutch TTF natural gas decreased €2.23 to €36.18 per MWh.

 

Europe Stock Movers

Technip Energies NV increased 0.8% €21.27 after the company was awarded a hydrogen production facility  at its Kwinana biorefinery in Western Australia.

Evotec SE jumped 1.5% to €21.03 after the German drug and discovery firm narrowed its second quarter loss. 

NN Group NV advanced 8.9% to €37.57 after the Dutch insurance group said its solvency improved in the first six months of 2023.

Standard Chartered PLC inched up 1.4% to 721.20 pence after the British lender agreed to sell its global aviation finance leasing unit. 

Bunzl  Plc added 2.7% to 2,798.0 after the business supplies distributor forecasted 2023 adjusted operating earnings in constant currencies to be moderately higher than in 2022.   

Antofagasta, Anglo American and Glencore increased between 1% and 2% after copper prices rose and the dollar edged lower. 

U.S. and Global Markets Advanced, Global Bond Yields Hovered Near Recent Highs

Barry Adams
28 Aug, 2023
New York City

Market indexes retailed upward bias in Monday's trading and tech stocks led gainers for the fifth session in a row. 

On Wall Street crude oil and commodities were in focus after China announced stimulus measures.  

Energy and base metal prices advanced on the hopes that China measures will revive the flagging confidence in stock markets and policymakers may announce additional measures to lift confidence in the property market. 

China's finance ministry cut stamp duty by half to 0.05% and lowered margin requirement to 80% from 100%, hoping to revive market confidence and support flagging markets. 

Market indexes in Hong Kong are down about 9% in the year so far, the worst performing market among 15 leading markets around the world and the Shanghai Composite index fell 1% in the period. 

The measures are likely to fall short in reviving market confidence as consumer confidence remains weak and corporations are looking to cut costs amid falling exports and weakening corporate profits.

Investors also reviewed the latest comments from the Federal Reserve Chair Jerome Powell last week. 

Investors are still divided about the future direction of interest rates but more market participants are looking for the Fed to lift rates at the next policy meeting in about three weeks. 

 

U.S. Indexes & Yields 

The S&P 500 index traded up 0.5% to 4,426.19 and the Nasdaq Composite gained 0.6% to 13,672.88.  

The yield on 2-year Treasury notes increased to 5.07%, 10-year Treasury notes inched higher to 4.22% and 30-year Treasury bonds edged up to 4.27%. 

West Texas Intermediate crude oil and Brent crude oil prices hovered near the levels last seen In April.  

Crude oil decreased $0.02 to $79.90 a barrel and natural gas prices decreased 2 cents to $2.55 a thermal unit. 

 

U.S. Stock Movers 

3M Company jumped 3.8% to $102.74 after a report from Wall Street Journal suggested that the company is close to settling for $5.5 billion for its liabilities related to military-grade earplugs. 

Boston Scientific Corporation jumped 4.8% to $53.20 after the company reported on Sunday encouraging results for its treatment of patients with abnormal heart rates. 

Xpeng Inc ADR increased 2.7% to $18.0 after the company agreed to acquire the smart electric car business from ridesharing company Didi for $744 million. 

Mister Car Wash Inc soared 8% to $7.45 after positive comments from analyst at the brokerage firm Piper Sandler. 

Mister Car Wash stock has fallen 21% in the year so-far. 

 

European Markets Closed Higher After China Stimulus Lifted Resource and Luxury Stocks 

European markets trade higher and bond yields edged up and investors search for bargains in industrial and financial sectors. 

Market averages in Paris and Frankfurt advanced on the first day of a new week after China announced new measures to support capital markets. 

The measures are likely to fall short in reviving market confidence as consumer confidence remains weak and corporations are looking to cut costs amid falling exports and weakening corporate profits.

But at least in today's trading, luxury stocks in Paris and resource stocks in London advanced on the hopes that China's measures will revive sales. 

 

Europe Indexes & Yields

The DAX index increased 1.0% to 15,792.61, the CAC-40 index advanced 1.3% to 7,324.71. 

Financial markets were closed today in London today. and the FTSE 100 index edged higher 0.07% to 7,338.58 in Friday's trading. 

In the previous week, the DAX index increased 0.4%, the CAC40 index advanced 0.7% and the FTSE 100 index gained 0.5%. 

The yield on 10-year German bonds decreased to 2.57%, French bonds traded lower to 3.10%, the UK gilts edged down to 4.44% and Italian bonds fell to 4.22%.

The euro edged to the lowest level since mid-June on the hopes that the central is more likely to pause its rate hike campaign and assess the impact of the multiple rate hikes on the economy. 

The euro edged lower to $1.081, the British pound to $1.252 and the U.S. dollar fetched 88.43 Swiss cents.

Natural gas prices traded volatile after local reports showed some progress between the workers' unions and Woodside Energy and Chevron in averting a long strike at LNG terminals. 

Brent crude decreased $0.03 to $84.51 a barrel and the Dutch TTF natural gas increased €0.99  to €35.78 per MWh.

 

Europe Stock Movers

Deutsche Bank, Commerzbank, BNP Paribas and Societe Generale jumped more than 1% after the ECB President Christine Lagarde stressed the need the for monetary policy to be restrictive enough. 

Renault SA advanced 1.5% to €36.97 after the French automaker with significant sales in China was in focus following the stimulus measures announced by China's finance ministry. 

French luxury products makers also advanced following China's stimulus news. 

Kering SA jumped 1.4% to €494.30, LVMH advanced 1.2% to €794.80, and Hermes International increased 1.2% to €1,905.0.  

U.S. Market Averages Scale Higher After China Stimulus Measures Lift Resource Stocks

Barry Adams
28 Aug, 2023
New York City

Market indexes on Wall Street advanced in Monday's trading and crude oil commodities were in focus after China measures. 

Energy and base metal prices advanced on the hopes that China measures will revive the flagging confidence in stock markets and policymakers may announce measures to lift confidence in the property market. 

China's finance ministry cut stamp duty by half to 0.05% and lowered margin requirement to 80% from 100%, hoping to revive market confidence and support flagging markets. 

Market indexes in Hong Kong are down about 9% in the year so far, the worst performing market among 15 leading markets around the world and the Shanghai Composite index fell 1% in the period. 

The measures are likely to fall short in reviving market confidence as consumer confidence remains weak and corporations are looking to cut costs amid falling exports and weakening corporate profits.

Investors also reviewed the latest comments from the Federal Reserve Chair Jerome Powell last week. 

Investors are still divided about the future direction of interest rates but more market participants are looking for the Fed to lift rates at the next policy meeting in about three weeks. 

 

U.S. Indexes & Yields 

The S&P 500 index traded up 0.6% to 4,431.21 and the Nasdaq Composite gained 0.5% to 13,676.28.  

The yield on 2-year Treasury notes increased to 5.07%, 10-year Treasury notes inched higher to 4.22% and 30-year Treasury bonds edged up to 4.27%. 

West Texas Intermediate crude oil and Brent crude oil prices hovered near the levels last seen In April.  

Crude oil decreased $0.85 to $80.68 a barrel and natural gas prices decreased 12 cents to $2.66 a thermal unit. 

 

U.S. Stock Movers 

3M Company jumped 3.8% to $102.74 after a report from Wall Street Journal suggested that the company is close to settling for $5.5 billion for its liabilities related to military-grade earplugs. 

Boston Scientific Corporation jumped 4.8% to $53.20 after the company reported on Sunday encouraging results for its treatment of patients with abnormal heart rates. 

Xpeng Inc ADR increased 2.7% to $18.0 after the company agreed to acquire the smart electric car business from ridesharing company Didi for $744 million. 

Mister Car Wash Inc soared 8% to $7.45 after positive comments from analyst at the brokerage firm Piper Sandler. 

Mister Car Wash stock has fallen 21% in the year so-far. 

European Stocks and Bond Yields Edged Higher

Bridgette Randall
28 Aug, 2023
New York City

European markets trade higher and bond yields edged up and investors search for bargains in industrial and financial sector stocks. 

Market averages in London, Paris and Frankfurt advanced on the first day of a new week after China announced new measures to support capital markets. 

China's finance ministry cut stamp duty by half to 0.05% and lowered margin requirement to 80% from 100%, hoping to revive market confidence and support flagging markets. 

Market indexes in Hong Kong are down about 9% in the year so far, the worst performing market among 15 leading markets around the world and the Shanghai Composite index fell 1% in the period. 

The measures are likely to fall short in reviving market confidence as consumer confidence remains weak and corporations are looking to cut costs amid falling exports and weakening corporate profits.

But at least in today's trading, luxury stocks in Paris and resource stocks in London advanced on the hopes that China's measures will revive sales. 

 

Europe Indexes & Yields

The DAX index increased 0.4% to 15,699.88, the CAC-40 index advanced 0.6% to 7,274.41 and financial markets were closed in London on Monday. 

In the previous week, the DAX index increased 0.4%, the CAC40 index advanced 0.7% and the FTSE 100 index gained 0.5%. 

The yield on 10-year German bonds decreased to 2.57%, French bonds traded lower to 3.10%, the UK gilts edged down to 4.44% and Italian bonds fell to 4.22%.

The euro edged to the lowest level since mid-June on the hopes that the central is more likely to pause its rate hike campaign and assess the impact of the multiple rate hikes on the economy. 

The euro edged lower to $1.081, the British pound to $1.252 and the U.S. dollar fetched 88.43 Swiss cents.

Natural gas prices traded volatile after local reports showed some progress between the workers' unions and Woodside Energy and Chevron in averting a long strike at LNG terminals. 

Brent crude decreased $0.32 to $84.17 a barrel and the Dutch TTF natural gas increased €0.98  to €35.17 per MWh.

 

Europe Stock Movers

Deutsche Bank, Commerzbank, BNP Paribas and Societe Generale jumped more than 1% after the ECB President Christine Lagarde stressed the need the for monetary policy to be restrictive enough. 

Renault SA advanced 1.5% to €36.97 after the French automaker with significant sales in China was in focus following the stimulus measures announced by China's finance ministry. 

French luxury products makers also advanced following China's stimulus news. 

Kering SA jumped 1.4% to €494.30, LVMH advanced 1.2% to €794.80, and Hermes International increased 1.2% to €1,905.0.