Market Update
U.S. Market Indexes Lacked Direction and Investors Awaited Inflation Reports
Barry Adams
08 May, 2023
New York City
Stocks seesawed and investors debated rate path, looming economic slowdown and regional banking crisis.
Benchmark indexes traded in a tight trading range and investors awaited the consumer inflation report on Wednesday and producer price inflation report on Thursday.
Moreover, above 1,100 companies are scheduled to release earnings this week and investors are hoping that most companies will meet or exceed lowered expectations.
Investors are divided over the future rate path and despite the current wave of rate hikes the jobs market remains resilient and economic growth has waned slightly.
Some investors are hoping that the job market's resilience may help the Federal Reserve in navigating the economy to soft landing while tackling high inflation.
But higher rates are also causing significant losses in Treasury securities held by banks of all sizes and making some banks more vulnerable to deposit outflows.
Moreover, higher rates are also expected to negatively impact commercial real estate and slowdown lending to small and medium-sized businesses which could further slowdown economic growth.
U.S. Indexes & Yields
The S&P 500 index increased 3.73 points to 4,140.16 and the Nasdaq Composite increased 0.2% to 12,260.19.
The yield on 2-year Treasury notes hovered at 3.98%, 10-year Treasury notes edged up to 3.49% and 30-year Treasury bonds held at 3.81%.
Crude oil rose $1.87 to $73.21 a barrel and natural gas prices rose 10 cents to $2.21 a thermal unit.
U.S. Stock Movers
Berkshire Hathaway Inc class A share increased 0.5% to $491,840 and Class B share increased 1.3% to $323.88 after the insurance to utilities conglomerate reported its latest quarterly results.
The rebound in the insurance business lifted its operating earnings by 12%.
Regional banks extended gains for the third day in a row.
PacWest soared about 33.8% to $7.71 following a 81% increase Friday's trading after the regional bank trimmed its dividend to 1 cent a share to shareholders on record on May 15 payable on May 31.
The company also declared a quarterly cash dividend of 48.45 cents per depositary share on its 7.75% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A.
The dividend will be payable June 1, 2023 to stockholders of record as of May 15, 2023.
Zions Bancorp increased 8.3% to $25.69 and Western Alliance jumped 14.1% to $30.99.
AMC Entertainment Holdings Inc declined 3.2% to $5.70 after the company said it reached a settlement in a shareholder class action lawsuit against its plan to convert Preferred Equity Units to common stocks.
The plan was previously approved by shareholders in March.
Viatris Inc increased 3.4% to $9.60 after the pharmaceutical company reiterated its full-year outlook.
Total net sales in the first quarter declined 11% to $3.7 billion from $4.2 billion and net income plunged 44% to $224.7 million from $399.2 million and diluted earnings per share decreased to 19 cents from 33 cents a year ago.
European market indexes traded sideways after a week of volatile trading and rate hikes.
Market indexes lacked direction and digested latest rate hikes of 25 basis points by the European Central Bank and the U.S. Federal Reserve.
The Bank of England is set to announce its interest rate decision on Thursday.
The larger-than-expected increase in U.S. jobs in April showed the labor market's resilience but investors worried how the economy and the labor market will adjust to elevated rates and slowing aggregate demand.
Moreover, investors across the Atlantic worried how the commercial real estate sector and regional banks will deal with interest rate shocks.
Decade-long negative nominal interest rates in the Euro Area and in the U.S. has fueled a surge in debt and investors chasing yields in riskier assets.
With ten rate hikes in a row the U.S. and seven in the European Central Bank, has narrowed the negative rates but rates are still not positive and restrictive enough.
To put the scope of the problem in perspective, assets of the central banks of G7 nations exploded to $23.5 trillion in 2020 from $5.7 trillion in 2008, reflecting the central banks' abusing their reserve currency status and unprecedented money printing.
German Industrial Production Declined
German industrial production adjusted for seasonal and calendar factors declined 3.4% in March from the previous month and rose 1.8% from a year ago, the Federal Statistics Office or DeStatis reported Monday.
Industrial production in February was upwardly revised 2.1% from the previous month and rose 0.7% from a year ago in February.
In the first quarter, production increased 2.5% from the fourth quarter of 2022.
Manufacturing of motor vehicles and parts decreased 6.5% in March after rising 6.9% in February, machinery and equipment fell 3.4% and construction equipment dropped 6.4%.
Europe Indexes & Yields
The DAX index increased 8.19 points to 15,952.83 and the CAC-40 index added 7.98 points to 7,440.91. Markets in the U.K. were closed for a holiday.
The yield on 10-year German Bunds inched up to 2.31%, French bonds traded slightly higher to 2.90%, the UK gilts inched higher to 3.78% and Italian bonds advanced to 4.22%.
The euro edged higher to $1.104, the British pound to $1.265 and the Swiss franc to 88.86 cents.
Brent crude rose $1.49 to $76.79 a barrel and the Dutch TTF natural gas increased €0.30 to €36.37 per MWh.
Europe Stock Movers
Novo Nordisk AS increased 5.4% to DKK 1,152.40 and extended Friday's gains after the company said it may have to restrict adding new patients in order to support the supply for its existing patients for its weight loss drug Wegovy.
PostNL LV jumped 7.5% to €1.63 after the Dutch government controlled postal company issued an upbeat quarterly report.
Revenue in the first quarter declined 3% to €783 million from €806 million a year ago after total parcel volume fell 6.5%.
Total comprehensive income in the first quarter declined to €4 million from €32 million a year ago.
The company said normalized EBIT plunged 78% to 7 million from 33 million and forecasted 2023 normalized EBIT between €70 million and €100 million and free cash flow between €10 million and €40 million.
Movers: AMC Entertainment, Berkshire Hathaway, Occidental Petroleum, PacWest, Viatris
Scott Peters
08 May, 2023
New York City
AMC Entertainment Holdings Inc declined 3.2% to $5.70 after the company said it reached a settlement in a shareholder class action lawsuit against its plan to convert Preferred Equity Units to common stocks.
The plan was previously approved by shareholders in March.
Berkshire Hathaway Inc class A share increased 0.5% to $491,840 and Class B share increased 1.3% to $323.88 after the insurance to utilities conglomerate reported its latest quarterly results.
The rebound in the insurance business lifted its operating earnings by 12%.
Occidental Petroleum Corporation decreased 1.7% to $59.67 after Warren Buffett said that Berkshire Hathaway is not interested in acquiring the full control of the company.
Berkshire Hathaway has acquired 23.5% of Occidental Petroleum and has an approval to increase its stake to 50%.
Regional banks extended gains for the third day in a row.
PacWest soared about 33.8% to $7.71 following a 81% increase Friday's trading after the regional bank trimmed its dividend to 1 cent a share to shareholders on record on May 15 payable on May 31.
The company also declared a quarterly cash dividend of 48.45 cents per depositary share on its 7.75% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A.
The dividend will be payable June 1, 2023 to stockholders of record as of May 15, 2023.
Zions Bancorp increased 8.3% to $25.69 and Western Alliance jumped 14.1% to $30.99.
Viatris Inc increased 3.4% to $9.60 after the pharmaceutical company reiterated its full-year outlook.
Total net sales in the first quarter declined 11% to $3.7 billion from $4.2 billion and net income plunged 44% to $224.7 million from $399.2 million and diluted earnings per share decreased to 19 cents from 33 cents a year ago.
EverQuote Inc decreased 2.5% to $6.42 ahead of the company's earnings release after the bell.
EverQuote has been under pressure and the stock has plunged more than 55% in the year so far on the worries that the online marketplace for auto insurance may suffer from the lack of consistent profitability at its client companies.
Major Averages Traded Down On Wall Street, Berkshire Hathaway Earnings In Focus
Barry Adams
08 May, 2023
New York City
Stocks looked down in early trading and investors mulled over the latest rate hikes and jobs report released last week.
Benchmark indexes are expected to trade in a tight trading range and investors await the consumer inflation report on Wednesday. Moreover, above 1,100 companies are scheduled to release earnings this week.
Investors are divided over the future rate path despite the current wave of rate hikes the jobs market remains resilient and economic growth has waned slightly.
Some investors are hoping that the job market's resilience may help the Federal Reserve in navigating the economy to soft landing while tackling high inflation.
But higher rates are also causing significant losses in Treasury securities held by banks of all sizes and making some banks more vulnerable to deposit outflows.
Moreover, higher rates are also expected to negatively impact commercial real estate and slowdown lending to small and medium-sized businesses.
U.S. Indexes & Yields
The S&P 500 index declined 0.1% to 4,131.50 and the Nasdaq Composite declined 0.4% to 12,191.99.
The yield on 2-year Treasury notes hovered at 3.98%, 10-year Treasury notes edged up to 3.49% and 30-year Treasury bonds held at 3.81%.
Crude oil rose $1.89 to $73.18 a barrel and natural gas prices rose 5 cents to $2.19 a thermal unit.
U.S. Stock Movers
Berkshire Hathaway Inc class A share increased 0.5% to $491,840 and Class B share increased 1.3% to $323.88 after the insurance to utilities conglomerate reported its latest quarterly results.
The rebound in the insurance business lifted its operating earnings by 12%.
Regional banks extended gains for the third day in a row.
PacWest soared about 33.8% to $7.71 following a 81% increase Friday's trading after the regional bank trimmed its dividend to 1 cent a share to shareholders on record on May 15 payable on May 31.
The company also declared a quarterly cash dividend of 48.45 cents per depositary share on its 7.75% Fixed Rate Reset Non-Cumulative Perpetual Preferred Stock, Series A.
The dividend will be payable June 1, 2023 to stockholders of record as of May 15, 2023.
Zions Bancorp increased 8.3% to $25.69 and Western Alliance jumped 14.1% to $30.99.
AMC Entertainment Holdings Inc declined 3.2% to $5.70 after the company said it reached a settlement in a shareholder class action lawsuit against its plan to convert Preferred Equity Units to common stocks.
The plan was previously approved by shareholders in March.
Viatris Inc increased 3.4% to $9.60 after the pharmaceutical company reiterated its full-year outlook.
Total net sales in the first quarter declined 11% to $3.7 billion from $4.2 billion and net income plunged 44% to $224.7 million from $399.2 million and diluted earnings per share decreased to 19 cents from 33 cents a year ago.
European Markets Retained Slight Upward Bias Amid Lingering Growth and Inflation Worries
Bridgette Randall
08 May, 2023
Frankfurt
European market indexes traded sideways after a week of volatile trading and rate hikes.
Market indexes lacked direction and digested latest rate hikes of 25 basis points by the European Central Bank and the U.S. Federal Reserve.
The Bank of England is set to announce its interest rate decision on Thursday.
The larger-than-expected increase in U.S. jobs in April showed the labor market's resilience but investors worried how the economy and the labor market will adjust to elevated rates and slowing aggregate demand.
Moreover, investors across the Atlantic worried how the commercial real estate sector and regional banks will deal with interest rate shocks.
Decade-long negative nominal interest rates in the Euro Area and in the U.S. has fueled a surge in debt and investors chasing yields in riskier assets.
With ten rate hikes in a row the U.S. and seven in the European Central Bank, has narrowed the negative rates but rates are still not positive and restrictive enough.
To put the scope of the problem in perspective, assets of the central banks of G7 nations exploded to $23.5 trillion in 2020 from $5.7 trillion in 2008, reflecting the central banks' abusing their reserve currency status and unprecedented money printing.
German Industrial Production Declined
German industrial production adjusted for seasonal and calendar factors declined 3.4% in March from the previous month and rose 1.8% from a year ago, the Federal Statistics Office or DeStatis reported Monday.
Industrial production in February was upwardly revised 2.1% from the previous month and rose 0.7% from a year ago in February.
In the first quarter, production increased 2.5% from the fourth quarter of 2022.
Manufacturing of motor vehicles and parts decreased 6.5% in March after rising 6.9% in February, machinery and equipment fell 3.4% and construction equipment dropped 6.4%.
Europe Indexes & Yields
The DAX index increased 12.46 points to 15,973.48 and the CAC-40 index added 11.46 points to 7,444.59. Markets in the U.K. were closed for a holiday.
The yield on 10-year German Bunds inched up to 2.31%, French bonds traded slightly higher to 2.90%, the UK gilts inched higher to 3.78% and Italian bonds advanced to 4.22%.
The euro edged higher to $1.104, the British pound to $1.265 and the Swiss franc to 88.86 cents.
Brent crude rose $1.50 to $76.80 a barrel and the Dutch TTF natural gas increased €0.68 to €35.89 per MWh.
Europe Stock Movers
Novo Nordisk AS increased 5.4% to DKK 1,152.40 and extended Friday's gains after the company said it may have to restrict adding new patients in order to support the supply for its existing patients for its weight loss drug Wegovy.
PostNL LV jumped 7.5% to €1.63 after the Dutch government controlled postal company issued an upbeat quarterly report.
Revenue in the first quarter declined 3% to €783 million from €806 million a year ago after total parcel volume fell 6.5%.
Total comprehensive income in the first quarter declined to €4 million from €32 million a year ago.
The company said normalized EBIT plunged 78% to 7 million from 33 million and forecasted 2023 normalized EBIT between €70 million and €100 million and free cash flow between €10 million and €40 million.
Asian Markets Advanced, Nikkei Traded Down Despite Record Service Sector Growth
Arjun Pandit
08 May, 2023
New York City
The Nikkei index in Tokyo declined 0.7% despite a private survey showed the service sector expanded at a record pace in April.
The PMI Service Index expanded for the fifth month in a row to 55.4 from 54.9 in March, The au Jibun Bank reported Monday.
Composite index, which combines the manufacturing and service sectors, was unchanged at 52.9%.
Energy and tech stocks led market gainers in Hong Kong and the Hang Seng index increased 0.8% to 20,211.16 after technology, health care and energy stocks led gainers.
The weak rebound in economic activities in China is reflected in weaker corporate earnings improvement in the first quarter.
In Monday's trading Alibaba gained 0.4%, BYD increased 2.2% and Geely Auto jumped 1.6%.
PetroChina, CNOOC and Sinopec increased between 3% and 4%, following a 1.2% rebound in oil prices.
Investors are also awaiting international trade and money supply data on Tuesday and inflation update on Thursday.
Stocks in Mumbai jumped 1% after a string of positive earnings contributed to positive market sentiment.
Coal India, Union Bank, Bank of India, Adani Power and Alembic Pharma reported higher-than-expected earnings.
The Sensex index increased 0.9% to 61,633.09 and the Nifty index advanced 0.9% to 18,227.20.
On the Mumbai stock exchange, 143 traded at their new 52-week highs and 17 traded at their new 52-week lows.
The yield on the 10-year Indian government bonds edged up 7.03% and the Indian rupee held firm at ₹81.71 against the U.S. dollar.
ASX 200 increased 0.7% to 20,211.16 after higher energy and commodities lifted resource stocks.
S&P 500 and Nasdaq Soared 2%, Apple and Regional Banks Zoom Higher
Barry Adams
05 May, 2023
New York City
Stocks rebounded and accelerated gains after regional banks soared and non-farm payrolls expanded in April.
Benchmark indexes soared as much as 2% and regional banks reversed weeklong losses on the optimism that the Fed is ready to pause at the next meeting.
Despite the market rebounded today, mark-to-market losses for Treasury securities are likely to resurface as the interest rates remain elevated.
Regional banks suffered heavy losses this week on the worries that more banks may suffer the fate of failed Signature Bank. First Republic Bank and Silicon Valley Bank.
Western Alliance Bancorp zoomed 50% to $27.31, Zions Bancorp increased 18.2% to $23.61 and PacWest Bancorp catapulted 79% to $5.70.
Investors welcomed the hotter-than-expected non-farm payrolls additions in April and interpreted that the resilient labor market may help the Fed in navigating the economy to soft landing as policymakers tackle elevated inflation.
Non-farm payrolls expanded in April and jobless rate dropped to five-decade low after professional and business services, health care and leisure and hospitality led the additions.
Payrolls Additions Expanded in April
The U.S. economy accelerated net new jobs in April, the U.S. Bureau of Labor Statistics reported Friday.
Non-farm payrolls increased 253,000 in April after the economy added downwardly revised 165,000 in March.
Job additions in March were sharply lowered from the initial estimate of 236,000.
Both the unemployment rate, at 3.4%, and the number of unemployed persons, at 5.7 million, changed little in April.
The unemployment rate has ranged from 3.4% to 3.7% since March 2022 and dropped to a five-decade low in April and matched the level in February.
Both the labor force participation rate, at 62.6%, and the employment-population ratio, at 60.4%, were unchanged in April and remained below their pre-pandemic February 2020 levels of 63.3% and 61.1%, respectively.
In April, employment in professional and business services increased 43,000, in health care increased 40,000 and leisure and hospitality by 31,000.
In April, average hourly earnings for all employees on private nonfarm payrolls rose by 16 cents, or 0.5%, to $33.36 and extended annual wage gains to 4.4%.
U.S. Indexes & Yields
The S&P 500 index jumped 1.5% to 4,140.39 and the Nasdaq Composite 2.3% to 12,245.86.
The yield on 2-year Treasury notes hovered at 3.86%, 10-year Treasury notes edged down to 3.44% and 30-year Treasury bonds held at 3.79%.
Crude oil rose $3.12 to $71.78 a barrel and natural gas prices fell 1 cent to $2.08 a thermal unit.
U.S. Stock Movers
Apple Inc increased 4.8% to $173.75 after the maker of popular electronics gadgets reported higher-than-expected sales and earnings.
Expedia Group Inc soared 4.1% to $92.82 after the online travel booking platform reported record first quarter revenue and gross bookings soared 20%.
Carvana Company soared 26% to $9.10 after the online used car dealer reported a smaller-than-expected quarterly loss.
DoorDash Inc decreased 0.7% to $62.35 after the online delivery platform lifted its annual outlook and the company said demand for its services remained strong.
Lyft Inc plunged 22.8% to $8.34 after the ride-hailing company reported a larger-than-expected loss despite healthy demand for its services.
Bumble Inc jumped 1.7% to $17.95 after the online dating app operator reported strong activities on its platform.
DraftKings Inc jumped 15.9% to $24.71 after the sports betting company lifted its annual outlook on the back of a strong increase in its quarterly revenue.
European Markets Rebounded
European stock markets rebounded on the final day of the week and major indexes are set to close down after a week of volatile trading.
Investors shifted focus to corporate earnings after a busy week of economic data and central banks actions.
In the region's economic news, retail sales dropped in March after higher food prices and elevated energy costs sapped consumer spending.
German factory orders dropped to a three-year low after volatile transportation and defense orders fell sharply in March after surging in February.
Eurozone Retail Sales Dropped
The Euro Area retail sales decreased 1.2% in March from the previous month and eased 1.1% in the European Union, Eurostat reported Friday.
Seasonally adjusted retail sales dropped at a faster pace than 0.2% in February after higher food prices and interest rates weighed on the overall spending.
Across the Eurozone, retail sales dropped 2.4% in Germany, 1.4% in France, 0.3% in Italy but rose 0.7% in Spain.
On an annual basis, the calendar adjusted retail sales index decreased 3.8% in the euro area and 4.1% in the European Union.
Germany Factory Orders Drop to 3-year Low On Volatile Large Orders
German new factory orders, adjusted for prices and season factors, plunged 10.7% from the previous month in March, the Federal Statistics Office or destatis reported Friday.
February orders were downwardly revised to an increase of 4.5%.
The March orders declined the most since the peak of the coronavirus pandemic in April 2020, driven by a sharp decline of 47.4% in miscellaneous vehicle construction which includes orders for ships, rail locomotives, spacecrafts and army vehicles.
Large-scale orders had risen 55% in February from the previous month.
Excluding large-scale transportation and defense orders, new orders declined 7.7% in March from the previous month.
While new orders in the capital goods sector decreased 14.1% and in the intermediate goods area 7.5% in March 2023 compared to the previous month, new orders in the consumer goods sector increased 1.2%.
Preliminary real turnover in the manufacturing sector declined 2.9% in February after rising 1.5% in February, but rose 3.7% from a year ago.
Europe Indexes & Yields
The DAX index increased 1.4% to 15,961.02, the CAC-40 index added 1.3% to 7,432.93 and the FTSE 100 index advanced 1.0% to 7,778.38.
The yield on 10-year German Bunds inched up to 2.26%, French bonds traded slightly higher to 2.87%, the UK gilts inched higher to 3.76% and Italian bonds advanced to 4.19%.
The euro edged higher to $1.102, the British pound to $1.267 and the Swiss franc to 89.13 cents.
Brent crude rose $2.32 to $75.34 a barrel and the Dutch TTF natural gas increased €0.92 to €36.57 per MWh.
Europe Stock Movers
Adidas AG increased 7.3% to €167.86 after the German sportswear maker reported quarterly results ahead of expectations.
IAG or International Consolidated Airlines Group increased 1.7% to 149.55 pence after the parent of British Air and Iberian Air narrowed its first quarter pre-tax loss.
The airline group also lifted its full-year 2023 adjusted operating earnings outlook.
Air France KLM SA decreased 1.7% to €1.43 after the airline group reported a first quarter loss of €306 million.
SGL Carbon SE declined 0.6% to €8.75 after the company forecasted flat sales in 2023 compared to the previous year.
Intercontinental Hotels Group decreased 1.5% to 5,432.0 pence after the company said group chief executive Keith Barr plans to step down from the office and resign from the company board.
In addition, the company said its annual 2023 revenues are likely to exceed its previous estimate.
Halma plc declined 0.1% to 2,385.0 pence and the company agreed to acquire Poland-based Sewertronics for as much as €59 million or £52 million.
Movers: Apple, Bumble, Carvana, DraftKings, DoorDash, Expedia Group, Lyft
Scott Peters
05 May, 2023
New York City
Apple Inc increased 2.7% to $170.26 after the maker of popular electronics gadgets reported higher-than-expected sales and earnings.
Revenue in the fiscal second quarter ending on April 1 declined 3% to $94.8 billion and net income decreased to $24.2 billion from $25.0 billion and diluted earnings per share was unchanged at $1.52.
Revenue in the Americas declined to $37.8 billion from $40.8 billion, in Europe edged up to $23.9 billion from $23.2 billion, in Greater China eased to $17.8 billion from $18.3 billion and in Japan eased to #7.2 billion from $7.7 billion.
In the quarter, iPhone sales increased to $51.3 billion from $50.6 billion, Mac sales dropped to $7.2 billion from $10.4 billion, iPad sales to $6.6 billion from $7.6 billion and wearable and home and accessories were flat at $8.8 billion.
Services revenue jumped to $20.9 billion from $19.8 billion a year ago.
Bumble Inc jumped 8.1% to $19.06 after the online dating app operator reported strong activities on its platform.
Total revenue in the first quarter increased 15.7% to $242.9 million from $210.0 million and the company swung to a net loss of $2.3 million from a profit of $23.7 million and diluted earnings per share fell to ($0.01) from 12 cents a year ago.
Bumble App revenue rose 25.9% from a year ago to $194.3 million and Badoo App and other revenue declined 12.6% to $48.7 million.
The company forecasted second quarter total revenue in the range of $254 million to $258 million and Bumble App revenue of $205 million to $208 million.
For the full-year 2023, the company estimated total revenue to grow between 16% to 19% and Bumble App revenue growth in the range of 22% to 25%.
Carvana Company soared 45% to $10.50 after the online used car dealer reported a smaller-than-expected quarterly loss.
Total revenue in the first quarter declined 25% to $2.6 billion from 43.5 billion and net loss shrank to $286 million from $506 million and net loss per share dropped to $1.51 from $2.89 a year ago.
Quarterly vehicle sales declined for the third quarter in a row to 79,240 units, a decrease of 25% from a year ago and total gross profit per unit improved by $1,470 to $4,303.
DraftKings Inc jumped 14.6% to $24.43 after the sports betting company lifted its annual outlook on the back of a strong increase in its quarterly revenue.
DoorDash Inc increased 4.1% to $65.40 after the online delivery platform lifted its annual outlook and the company said demand for its services remained strong.
Revenue in the first quarter increased 40% to $2.04 billion from $1.45 billion and net loss shrank to $161 million from $167 million and diluted loss per share declined to 41 cents from 48 cents a year ago.
Total orders increased 27% from a year ago to 512 million and Marketplace gross order volume increased 29% to $15.9 billion.
The delivery service provider forecasted second quarter marketplace gross order volume to be between $15.9 billion and $16.2 billion for the full-year 2023 between $63.0 billion and $64.5 billion.
Expedia Group Inc soared 7.5% to $95.87 after the online travel booking platform reported record first quarter revenue and gross bookings soared 20%.
Revenue in the first quarter increased 18% to a record $2.7 billion from $2.3 billion and net loss increased 18% to $145 million from $122 million and diluted loss per share expanded to 95 cents from 78 cents a year ago.
Total gross bookings increased 20% to $29.4 billion and lodging bookings at $21.1 billion were at record levels. Booked room nights jumped 23% to 94.5 million from 77.0 million a year ago.
Lyft Inc plunged 13.9% to $9.20 after the ride-hailing company reported a larger-than-expected loss despite healthy demand for its services.
Revenue in the first quarter increased 14% to $1.0 billion and net loss in the quarter shrank to $187.6 million from $196.9 million and diluted loss per share fell to 50 cents from 57 cents a year ago.
Active riders in the first quarter increased 9.8% to 19.55 million from 17.8 million and revenue per active rider increased 4% to $51.17.
U.S. Payrolls Additions Expanded in April, Jobless Rate Dropped to 5-Decade Low
Brian Turner
05 May, 2023
New York City
The U.S. economy accelerated net new jobs in April, the U.S. Bureau of Labor Statistics reported Friday.
Non-farm payrolls increased 253,000 in April after the economy added downwardly revised 165,000 in March.
Job additions in March were sharply lowered from the initial estimate of 236,000.
Both the unemployment rate, at 3.4%, and the number of unemployed persons, at 5.7 million, changed little in April.
The unemployment rate has ranged from 3.4% to 3.7% since March 2022 and dropped to a five-decade low in April and matched the level in February.
Both the labor force participation rate, at 62.6%, and the employment-population ratio, at 60.4%, were unchanged in April and remained below their pre-pandemic February 2020 levels of 63.3% and 61.1%, respectively.
In April, employment in professional and business services increased 43,000, in health care increased 40,000 and leisure and hospitality by 31,000.
In April, average hourly earnings for all employees on private nonfarm payrolls rose by 16 cents, or 0.5%, to $33.36 and extended annual wage gains to 4.4%.
February and March Payroll Downward Revisions
The increase in total nonfarm payroll employment for February was revised down 78,000, from 326,000 to 248,000, and for March was revised down 71,000, from 236,000 to 165,000.
With these revisions, employment in February and March combined is 149,000 lower than previously reported.
Wall Street Stocks Rebounded, Payrolls Expanded In April
Barry Adams
05 May, 2023
New York City
Stocks on Wall Street opened higher after payrolls expanded in April reflecting labor market strength.
Non-farm payrolls expanded in April and jobless rate dropped to five-decade low after professional and business services, health care and leisure and hospitality led the additions.
Payrolls Additions Expanded in April
The U.S. economy accelerated net new jobs in April, the U.S. Bureau of Labor Statistics reported Friday.
Non-farm payrolls increased 253,000 in April after the economy added downwardly revised 165,000 in March.
Job additions in March were sharply lowered from the initial estimate of 236,000.
Both the unemployment rate, at 3.4%, and the number of unemployed persons, at 5.7 million, changed little in April.
The unemployment rate has ranged from 3.4% to 3.7% since March 2022 and dropped to a five-decade low in April and matched the level in February.
Both the labor force participation rate, at 62.6%, and the employment-population ratio, at 60.4%, were unchanged in April and remained below their pre-pandemic February 2020 levels of 63.3% and 61.1%, respectively.
In April, employment in professional and business services increased 43,000, in health care increased 40,000 and leisure and hospitality by 31,000.
In April, average hourly earnings for all employees on private nonfarm payrolls rose by 16 cents, or 0.5%, to $33.36 and extended annual wage gains to 4.4%.
U.S. Indexes & Yields
The S&P 500 index jumped 0.9% to 4,098.82 and the Nasdaq Composite 0.4% to 12,069.62.
The yield on 2-year Treasury notes hovered at 3.86%, 10-year Treasury notes edged down to 3.44% and 30-year Treasury bonds held at 3.79%.
Crude oil rose $1.72 to $70.28 a barrel and natural gas prices fell 1 cent to $2.08 a thermal unit.
U.S. Stock Movers
Apple Inc increased 2.7% to $170.26 after the maker of popular electronics gadgets reported higher-than-expected sales and earnings.
Expedia Group Inc soared 7.5% to $95.87 after the online travel booking platform reported record first quarter revenue and gross bookings soared 20%.
Carvana Company soared 45% to $10.50 after the online used car dealer reported a smaller-than-expected quarterly loss.
DoorDash Inc increased 4.1% to $65.40 after the online delivery platform lifted its annual outlook and the company said demand for its services remained strong.
Lyft Inc plunged 13.9% to $9.20 after the ride-hailing company reported a larger-than-expected loss despite healthy demand for its services.
Bumble Inc jumped 8.1% to $19.06 after the online dating app operator reported strong activities on its platform.
DraftKings Inc jumped 14.6% to $24.43 after the sports betting company lifted its annual outlook on the back of a strong increase in its quarterly revenue.