ticker

But the stock turned lower after investors reassessed the company's fiscal fourth quarter revenue outlook which fell short of some analysts' estimates.

Revenue increased 3% to $1.02 billion from $990.7 million and net loss shrank to $114.2 million from $377.2 million and diluted loss per share fell to 30 cents from $1.08 a year ago.

Active riders in the second quarter rose 8.2% to 21.5 million from 19.9 million and average revenue per active rider fell 4.8% to $47.51 from $49.89 a year ago.

Rivian Automotive Inc was nearly unchanged at $24.80 after the maker of electric vehicles narrowed its quarterly loss and revised higher its production target.

Rivian said second quarter revenue jumped to $1.1 billion from $364 million and net loss shrank to $1.2 billion from $1.7 billion and diluted pre share declined to $1.27 from $1.89 a year ago.

The company forecasted 2023 production target of 52,000 from the previous estimate of 50,000 and higher than 25,000 from a year ago.

The company delivered 12,640 vehicles in the second quarter, sharply higher than 4,467 vehicles a year ago.

WeWork Inc plunged 9.9% to 19 cents after the company said in an SEC filing that it may consider restructuring its debt including bankruptcy amid weak membership rates.

Consolidated revenue in the second quarter rose to $844 million from $815 million and net loss shrank to $349 million from $577 million and diluted loss per share was 21 cents from 76 cents a year ago.

Average revenue per physical member increased 4% to $502 in the second quarter and physical membership declined to 587,000 from 589,000 but occupancy rate rose to 72% from 70% a year ago.

Company management is struggling to improve liquidity and profitability over the next year by cutting operating and capital expenditures, renegotiating lease payments and control churn rate and seek new capital through debt and securities sales.

On May 5, 2023, the Company closed on its previously announced debt exchange and restructuring transactions.

As of June 30, the company had $680 million of liquidity, consisting of $205 million of cash and $475 million of capacity under its delayed draw, first lien notes, of which $175 million were drawn in July.

PENN Entertainment Inc jumped 19% to $29.64 after the company signed a 10-year deal with ESPN to create ESPN Bet, a sports betting site.

As a part of the deal, Penn agreed to pay ESPN $1.85 billion in cash.

Bumble Inc decreased 1.8% to $17.67 after the online dating platform reported better-than-expected revenue and earnings in the second quarter.

Total revenue in the second quarter increased to $259.7 million from $219.2 million and net income swung to $6.7 million from a loss of $3.4 million and diluted earnings per share was 5 cents compared to (3 cents) a year ago.

However, the company's current quarter adjusted earnings outlook fell short of some investors.

Bumble forecasted third quarter revenue between $274 million and $280 million and adjusted operating earnings between $71 million and $73 million.

The company forecasted total 2023 revenue between $1.05 billion and $1.07 billion and adjusted operating earnings margin growth of at least 100 basis points.

Marqeta Inc soared 15.9% to $5.75 after the payment processing company reported mixed quarterly results.

Total processing volume in the second quarter surged 33% to $53.6billion from $40.4 billion a year ago.

Revenue in the second quarter rose 24% to $231 million from $186.6 million and net loss expanded to $58.8 million from $44.4 million and net loss per share rose to 11 cents from 8 cents a year ago.

The payment platform extended its deal with Block's Cash App card payment processing services for four more years.

The company also struck a multi-faceted partnership deal with Brazil-based Fitbank to expand in the region and help other fintech companies to process payments.

Akamai Technologies Inc soared 6.8% to $101.42 after the cyber security and internet infrastructure company reported better-than-expected second quarter earnings.

Second quarter revenue increased 4% to $936 million from $903 million and net income rose 7% to $129 million from $137.8 million and diluted earnings per share fell to 84 cents from 85 cents a year ago.

The company repurchased 1.6 million shares for an average price of $83.97 per share and a total of $137 million.

The company also revised higher its full-year 2023 estimates and guided its third quarter revenue between $937 million and $952 million and full-year revenue between $3.765 billion and $3.795 billion.

S&P 500 and Nasdaq Attempt Another Rebound Ahead of Inflation Reports

Barry Adams
09 Aug, 2023
New York City

Market averages attempted a rebound a day after regional banks dropped more than 3% after Moody's downgraded several banks.

The S&P 500 index and the Nasdaq Composite traded higher ahead of inflation data tomorrow.

Investors are anticipating that the recent cooling trend will continue in July but core inflation may stay higher.

Consumer prices have cooled following a decline in energy prices but service costs are still rising at elevated pace and core inflation is above the 2% target set by the Federal Reserve.

Market participants are worried that the Federal Reserve may abandon its target rate of 2% after the stubborn core inflation stays near 3%.

In overseas news, China reported deflation in July after consumer prices fell 0.3% from flat in June, the National Bureau of Statistics reported Wednesday.

Commodities prices traded volatile after the China inflation report but traders held out for an announcement of stimulus measures.

Closer to home, regional banks are expected to remain in focus after Moody's downgraded 10 banks and placed 11 other banks on its negative watch list.

U.S. Indexes & Yields

The S&P 500 index traded down 0.02% to 4,498.07 and the Nasdaq Composite declined 0.2% to 13,848.19.

The yield on 2-year Treasury notes decreased to 4.71%, 10-year Treasury notes inched lower to 4.01% and 30-year Treasury bonds edged down to 4.19%.

Crude oil decreased $0.97 to $82.87 a barrel and natural gas prices increased 7 cents to $2.74 a thermal unit.

U.S. Stock Movers

Lyft Inc declined 6.9% to $10.76 after the ride-hailing company released its quarterly results.

Stock jumped after the company reported adjusted earnings per share of 16 cents and revenue of $1.02 billion, meeting estimates set by some analysts.

But the stock turned lower after investors reassessed the company's fiscal fourth quarter revenue outlook which fell short of some analysts' estimates.

Rivian Automotive Inc was nearly unchanged at $24.80 after the maker of electric vehicles narrowed its quarterly loss and revised higher its production target.

Rivian said second quarter revenue jumped to $1.1 billion from $364 million and net loss shrank to $1.2 billion from $1.7 billion and diluted pre share declined to $1.27 from $1.89 a year ago.

The company forecasted 2023 production target of 52,000 from the previous estimate of 50,000 and higher than 25,000 from a year ago.

The company delivered 12,640 vehicles in the second quarter, sharply higher than 4,467 vehicles a year ago.

WeWork Inc plunged 9.9% to 19 cents after the company said in an SEC filing that it may consider restructuring its debt including bankruptcy amid weak membership rates.

PENN Entertainment Inc jumped 19% to $29.64 after the company signed a 10-year deal with ESPN to create ESPN Bet, a sports betting site.

As a part of the deal, Penn agreed to pay ESPN $1.85billion in cash.

Movers: Coca Cola HBC, Continental AG, Delivery Hero, Hill & Smith, Vestas Systems

Inga Muller
09 Aug, 2023
Frankfurt

European markets rebounded and banks recovered losses in the previous session after Italy's finance minister clarified windfall tax level.

Italian banks jumped between 2% and 4% after finance minister clarified windfall tax level to not exceed 0.1% of bank assets.

The DAX index increased 1.2% to 15,963.70, the CAC-40 index rose 1.4% to 7,369.09 and the FTSE 100 index added 0.8% to 7,589.29.

The yield on 10-year German bonds increased to 2.46%, French bonds traded higher to 3.03%, the UK gilts edged up to 4.39% and Italian bonds decreased to 4.13%.

The euro edged lower to $1.092, the British pound to $1.270 and the U.S. dollar fetched 87.66 Swiss cents.

ABN Amro Bank NV decreased 2.8% to €14.31 after the Dutch lender postponed its plan to buy back shares to the fourth quarter.

Mining companies rebounded on the hopes that the latest China deflation data may spur policymakers in providing additional stimulus to the property sector.

Glencore, Antofagasta, and Angle American jumped between 1% and 2%.

Continental AG edged up 0.8% to €70.50 despite the tire maker lowering its annual outlook.

Delivery Hero SE soared 7.2% to €39.94 after the food delivery services platform revised higher its revenue outlook.

Vestas Wind Systems AS increased 1.8% to Kr 182.82 after the wind turbine company reported a narrower second quarter loss and maintained its full-year 2023 outlook.

Hill & Smith PLC jumped 6.2% to 1,670.0 pence after the infrastructure company reported record first-half results.

Coca Cola HBC jumped 2.1% to €26.45 after the soft drinks beverage maker revised higher its organic growth estimate for the fiscal year 2023 and reiterated its operating earnings forecast.

European Markets and Banks Rebound, Natural Gas Traded at 2-week High

Bridgette Randall
09 Aug, 2023
Frankfurt

European markets traded higher after banks rebounded and investors reviewed China inflation data.

Market averages jumped more than 1% and banks across the region advanced after Italy's finance minister clarified that the windfall tax will not exceed 0.1% of bank assets.

The government was forced to clarify its intent of levying 40% tax on excess profit linked to higher interest rates with a cap of 0.1% on assets with the intention of raising Є3 billion.

Intesa Sanpaolo, UniCredit, Banco BPM and Monte Dei Paschi di Siena jumped between 2% and 4%.

Banks in France, Germany and Spain also recovered losses in the previous session.

In Asia, China reported its first deflation over two years in July after consumer prices declined 0.3% from flat in June, the National Bureau of Statistics reported Wednesday.

Prices fell in July because of higher base previous year

China's consumer price inflation data followed weak international trade data a day ago that showed exports and imports fell in double digits in July, indicating weakening demand.

Investors are also awaiting U.S. inflation data Thursday and economists are estimating that the recent cooling of inflation will continue in July.

Europe Indexes & Yields

The DAX index increased 1.2% to 15,963.70, the CAC-40 index rose 1.4% to 7,369.09 and the FTSE 100 index added 0.8% to 7,589.29.

The yield on 10-year German bonds increased to 2.46%, French bonds traded higher to 3.03%, the UK gilts edged up to 4.39% and Italian bonds decreased to 4.13%.

The euro edged lower to $1.092, the British pound to $1.270 and the U.S. dollar fetched 87.66 Swiss cents.

Natural gas prices jumped to a two-week high after LNG flows to terminals in the U.S. eased and traders are forecasting supplies from the U.S. are likely to be diverted to Asia in the next three months because of higher prices.

Despite the recent surge in prices, natural gas storage across the European Union is near a record 87% level and regulators are aiming for 90% level before the end of November to meet demand in next winter.

Germany, Italy and Spain are at or near levels set by the EU authorities and France is expected to catch up in the next few weeks.

Brent crude decreased $0.67 to $86.78 a barrel and the Dutch TTF natural gas increased €3.88 to €34.99 per MWh.

Europe Stock Movers

ABN Amro Bank NV decreased 2.8% to €14.31 after the Dutch lender postponed its plan to buy back shares to the fourth quarter.

Mining companies rebounded on the hopes that the latest China deflation data may spur policymakers in providing additional stimulus to the property sector.

Glencore, Antofagasta, and Angle American jumped between 1% and 2%.

Continental AG edged up 0.8% to €70.50 despite the tire maker lowering its annual outlook.

Delivery Hero SE soared 7.2% to €39.94 after the food delivery services platform revised higher its revenue outlook.

Vestas Wind Systems AS increased 1.8% to Kr 182.82 after the wind turbine company reported a narrower second quarter loss and maintained its full-year 2023 outlook.

Hill & Smith PLC jumped 6.2% to 1,670.0 pence after the infrastructure company reported record first-half results.

Coca Cola HBC jumped 2.1% to €26.45 after the soft drinks beverage maker revised higher its organic growth estimate for the fiscal year 2023 and reiterated its operating earnings forecast.

Global Markets Closed Down After Bank Worries Resurfaced

Barry Adams
08 Aug, 2023
New York City

Market averages rebounded from the lows of the session and bank stocks closed down after Moody's lowered its outlook for regional banks.

Stocks were under pressure for the second day in a row on the worries that rising rates and looming economic slowdown could be a double whammy for regional and smaller banks.

Regional banks have a larger exposure to commercial real estate and with rising rates banks have higher cost of retaining bank deposits.

Commodities and resource sector stocks were also in focus after China reported a third monthly decline in exports and imports also fell in double digits in July.

Crude oil and base metal prices traded volatile with a downward bias.

Treasury yields edged down and bond yields declined worldwide following the weak international trade data from China.

Moody's Downgraded Several Banks on Capital Worries

Moody's Services lowered its ratings on 10 small and regional banks and placed large banks on its negative watch lists.

In wide ranging alert about the banking industry, the rating agency belatedly highlighted fast developing stress for small to large banks as rates continue to rise.

Banks are heading into perfect storms as depositors flee for higher rates to other forms of investments, undeclared losses mounted in the securities held by banks and impending recession in early 2024 is likely to create additional headwinds to credit quality.

Moreover, commercial real estate loans are facing investor discontent on growing worries linked to elevated office vacancy rates and default worries.

“U.S. banks continue to contend with interest rate and asset-liability management (ALM) risks with implications for liquidity and capital, as the wind-down of unconventional monetary policy drains systemwide deposits and higher interest rates depress the value of fixed-rate assets,” Jill Cetina and Ana Arsov said in the Moody's research report.

Moody's placed Bank of New York Mellon, Cullen/Frost Bankers, Northern Trust, Truist Financial, U.S. Bancorp and State Street under review for a possible downgrade.

Most banks reported flat or modest decline in deposits but deposit mix worsened and banks paid higher rates to retain deposits.

Moody's also lowered outlook for 11 banks including Capital One, Regions Financial Corp, Fifth Third Bancorp and Citizens Financial.

"In the current high-rate environment, banks with sizable unrealized losses that are not reflected in their regulatory capital ratios are vulnerable to a loss of confidence. Additionally, a higher share of fixed-rate assets on the balance constrains a bank's profitability and, thus, its ability to grow capital and continue lending.

Risks may be more pronounced if the US enters a recession – which we expect will happen in early 2024 – because asset quality will worsen and increase the potential for capital erosion," Moody's analysts noted in the research report.

China Exports Declined 3rd Month In a Row

China reported exports declined for the third month in a row and trade surplus also fell after imports also fell in July.

Exports declined 14.5% to $281.7 billion and imports fell 12.4% to $201.1 billion resulting in a trade surplus of $80.6 billion from $102.7 billion a year ago.

Politically sensitive exports to the U.S. fell 23.1%, ASEAN countries 21.4% and to the EU declined 20.6%.

Exports of rare earth materials, critical for electric batteries. in July soared 49% from a year earlier to 5,426 metric tons, supported by strong international demand for battery powered vehicles and wind power systems.

The sharp fall in imports was noticed by commodities market and copper and other base metal prices came under pressure and weak exports also highlighted the slowing global demand for Chinese products and reorienting of global supply chains away from China.

U.S. Indexes & Yields

The S&P 500 index traded down 0.5% to 4,495.73 and the Nasdaq Composite futures fell 0.9% to 13,865.60.

The yield on 2-year Treasury notes decreased to 4.74%, 10-year Treasury notes inched lower to 3.99% and 30-year Treasury bonds edged down to 4.17%.

Crude oil decreased $0.97 to $82.87 a barrel and natural gas prices increased 7 cents to $2.74 a thermal unit.

U.S. Stock Movers

Banks led decliners in trading after the Moody's placed several banks on negative watch list.

M&T Bancorp declined 3.2% to $137.19, Regions Financial fell 2.2% to $20.69, Citizens Financial Group decreased 3.2% to $30.39 and PNC Financial Services dropped 3.5% to $127.79.

United Parcel Services, Inc declined 0.8% to $180.59 after the parcel delivery company reported weaker-than-expected revenue in the second quarter.

The company also lowered its full-year outlook citing macroeconomic headwinds.

Chegg Inc increased 6.3% to $10.66 after the online education and text book provider reported better-than-expected revenue in the second quarter.

Datadog Inc plunged 18.3% to $86.65 after the cloud computing monitoring services provider forecasted weaker-than-expected sales in the third quarter and lowered its full-year outlook.

European Markets Dropped After Italy Imposed Windfall Tax On Banks

European markets turned lower following worries of global economic growth and windfall tax on banks in Italy.

Market indexes in Frankfurt, Paris, London and Milan declined after Italy imposed windfall tax on excess earnings this year and finance tax cuts and financial support for first time home buyers.

The decision surprised markets and banks in the region dropped as much as 3% in Germany, France and Spain.

Europe Indexes & Yields

The DAX index decreased 1.1% to 15,774.93, the CAC-40 index fell 0.7% to 7,269.47 and the FTSE 100 index dropped 0.4% to 7,527.42.

The yield on 10-year German bonds decreased to 2.43%, 8rench bonds traded lower to 3.00%, the UK gilts edged up to 4.35% and Italian bonds decreased to 4.14%.

The euro edged lower to $1.095, the British pound to $1.271 and the U.S. dollar fetched 87.67 Swiss cents.

Brent crude decreased $0.93 to $85.87 a barrel and the Dutch TTF natural gas increased €0.56 to €31.05 per MWh.

Europe Stock Movers

Italian banks dropped after Italy placed 40% windfall tax on banks to finance tax cuts and financial support to first time mortgage holders.

UniCredit SpA declined 6.9% to €21.06 and Intesa Sanpaolo SpA dropped 8.5% to €2.34.

Banks in the region declined following the windfall tax announcement.

Commerzbank, Dresdner Bank, Banco Santander and BNP Paribas dropped between 2% and 3%.

Bayer AG declined 1.9% to €51.40 after the German chemical company reported a net loss of €1.9 billion in the second quarter.

Mining companies traded down after Glencore reported profit nearly halved from a year ago and China's exports and imports declined in July.

Glencore dropped 4.2% to 437.80 pence after the company reported half-year profit plunged 50% from a year ago.

Anglo American and Antofagasta declined between 1.5% and 2.0%.

Abrdn Plc dropped 8.4% to 200.20 pence after the asset management company reported a decline in its assets under management.

Movers: Chegg, Datadog, DISH Network, Echostar, International Flavors, Regional Banks, UPS

Scott Peters
08 Aug, 2023
New York City

The S&P 500 index traded down 1.0% to 4,475.14 and the Nasdaq Composite futures fell 1.3% to 13,811.55.

The yield on 2-year Treasury notes decreased to 4.74%, 10-year Treasury notes inched lower to 3.99% and 30-year Treasury bonds edged down to 4.17%.

Banks led decliners in trading after the Moody's placed several banks on negative watch list.

M&T Bancorp declined 3.2% to $137.19, Regions Financial fell 2.2% to $20.69, Citizens Financial Group decreased 3.2% to $30.39 and PNC Financial Services dropped 3.5% to $127.79.

United Parcel Services, Inc declined 0.8% to $180.59 after the parcel delivery company reported weaker-than-expected revenue in the second quarter.

The company also lowered its full-year outlook citing macroeconomic headwinds.

Chegg Inc increased 6.3% to $10.66 after the online education and textbook provider reported better-than-expected revenue in the second quarter.

Datadog Inc plunged 18.3% to $86.65 after the cloud computing monitoring services provider forecasted weaker-than-expected sales in the third quarter and lowered its full-year outlook.

DISH Network Corp jumped 8.6% to $8.30 after Charlie Ergan said he would consolidate his telecom companies.

EchoStar Corp edged up 0.5% to $23.62.

Two companies were separated in 2008 and Ergan plans to combine two satellite communication and technology companies as market for providing data is expected to heat in the next three years.

International Flavors & Fragrances Inc plunged 19% to $65 after the company reported weaker-than-expected quarterly results.

Revenue in the second quarter declined 11% to $2.9 billion from $3.3 billion and net income plunged 75% to $27 million from $109 million and diluted earnings per share dropped to 11 cents from 43 cents a year ago.

The company revised lower its full-year revenue outlook to between $11.3 billion and $11.6 billion from the previous estimate of $12.3 billion.

the fragrance company also lowered its adjusted earnings outlook to between $1.85 billion and $2.0 billion from the previous estimate of $2.34 billion.

The company declared a regular dividend of 81 cents a share payable to shareholders on October 5 to shareholders on record September 22.

S&P 500 and Nasdaq Dropped 1% As Banks Downgrade Drag Indexes

Barry Adams
08 Aug, 2023
New York City

Banks led decliners after Moody's Services lowered its ratings on 10 small and regional banks and placed large banks on its negative watch lists.

In a wide ranging alert about the banking industry, the rating agency belatedly highlighted fast developing stress for small to large banks as rates continue to rise.