Market Update
Caught Between Recession and Inflation Worries, Investors Stay Undecided
Barry Adams
08 Mar, 2023
New York City
Major averages closed mixed after strong additions in private payrolls reinforced the concern of larger rate hikes.
Benchmark indexes bounced around the flatline as investors weighed the latest hawkish comments from the Fed chairman Powell and reacted to corporate earnings news.
Despite multiple rate hikes the U.S. economy is standing strong and only higher-for-longer rates may cool inflation but also increase risks of wider economic slowdown.
U.S. Treasury yields hovered near 16-year highs as investors mulled faster rate hikes and higher peak rates in the month ahead.
Private payrolls expanded at a faster pace in February, suggesting tight labor market conditions to persist despite multiple rate hikes over the last twelve months.
What is good news on the Main Street is bad news on Wall Street as investors fear that rates may have to go further in the restrictive territory before inflation cools, pushing the economy towards a faster slowdown.
The closely watched JOLT survey from the Labor Department showed there are still two job openings for every worker and investors look ahead to Friday's non-farm payrolls data.
Employment report tracking payrolls across all sectors of the economy are scheduled to be released on Friday by the U.S. Labor Department and investors are anticipating net job gains of closer to 300,000 and jobless rate of 3.4%.
February Private Payrolls Growth Accelerated
Private sector net job addition accelerated in February, according to the latest monthly report released by the payrolls processing company ADP.
U.S. private payrolls increased by 242,000 in February, higher than the revised 119,000 increase in January.
The February's gains were driven by 190,000 additions in the service sector and 52,000 increase in the manufacturing sector.
Overall wage gains decelerated to 7.2%.
U.S. Trade Deficit Edged Higher In January
The U.S. trade deficit in goods and services increased slightly in January after exports rose faster than imports, the Bureau of Economic Analysis reported Wednesday.
Exports increased 3.4% and soared 13.3% to $257.5 billion.
Imports rose 3.0% from the previous month and jumped 3.5% to $325.7 billion.
Overall trade deficit for goods and services increased 1.6% from the previous month but fell 21.9% from the previous year to $68.3 billion.
Indexes & Yields
The S&P 500 index increased 0.14% to 3,992.01 and the Nasdaq Composite index inched higher to 0.4% to 11,576.01.
The yield on 2-year Treasury notes hovered near 5.07%, 10-year Treasury notes inched lower to 3.98% and 30-year Treasury bonds traded around 3.89%.
Crude oil prices declined $1.21 to $76.35 a barrel and natural gas prices eased 8 cents to $2.59 a thermal unit.
U.S. Stock Movers
Occidental Petroleum Corporation increased 1.4% to $61.70 after a regulatory filing showed that the Warren Buffett controlled Berkshire Hathaway increased its stake in the company by purchasing 5.8 million additional shares last week.
Crowdstrike Holdings Inc added 1.3% to $126.57 after the cybersecurity company reported better-than-expected quarterly results. Revenue in the fourth quarter increased to $637 million and earnings per share rose to 47 cents.
Stitch Fix Inc dropped 13.5% to $4.31 after the online fashion platform reported wider-than-expected loss.
Stitch Fix Inc said revenue in the fiscal second quarter ended on January 28 declined 20% to $412.1 million and net loss expanded to $65.6 million from $30.9 million and diluted loss per share rose to 58 cents from 28 cents a year ago.
BlackBerry Ltd increased 4.2% to $3.65 after the cybersecurity company reported preliminary quarterly results.
BlackBerry Limited said preliminary revenue in the fourth quarter is expected to be $151 million, including $107 million in cybersecurity billings.
European Markets Look Beyond Central Bankers' Comments
European markets lacked direction after investors weighed the latest comments from central bankers and economic data.
Market indexes opened lower following the comments from the Federal Reserve Chairman Jerome Powell suggested larger rate hikes may be necessary to cool inflation.
Closer to home, the European Central Bank next week is set to raise rates for the sixth time in a row to cool sky-high inflation driven by high energy prices.
Investors are anticipating a rate hike of 50 basis points.
On Monday, Governor of Austria's central bank Robert Holzmann said that the rates should be revised higher by the same amount at the next four meetings in a row.
Despite the previous five rate hikes, rates are still not restrictive enough in cooling inflation.
The ECB's main deposit rate is 2.5% and consumer price in the Euro Area is hovering around 8.5%.
Germany's Industrial production Expanded In January
Germany's industrial production unexpectedly rose 3.5% in January and reversed the 2.4% decline in December, the Federal Statistics Office or Destatis reported Wednesday.
Industrial production rose after intermediate goods demand surged 6.9% driven by a rise in demand for chemical and electronic equipment, the report showed.
On other hand, production of consumer goods fell 1.8% and capital goods output decreased 0.6%.
On an annual basis, the industrial production declined 1.6% after falling 3.3% in December.
Germany's Retail Sales Declined
Retail sales in January fell 0.3% after adjusting for inflation from the previous month, the latest data from Destatis showed.
January's retail turnover declined 6.9% from the previous year after higher prices and elimination of energy subsidies forced consumers to retrench.
Euro Area Economy Stagnated In Q4
Economy in the Euro Area stagnated after the latest downward revision in the fourth quarter, Eurostat said in a report today.
GDP expanded 0.4% in the fourth quarter, matching the rate in the third quarter.
Positive contributions from government spending and international trade were offset by the decline in consumer spending and investments.
On an annual basis, the fourth quarter's GDP expansion was downwardly revised to 1.8% from the previous estimate of 1.9% and slower than 2.4% in the third quarter.
The Euro Area's economy expanded 3.5% in 2022 after rising 5.3% in 2021.
Indexes & Yields
The DAX index increased 0.5% to 15,631.87, the CAC-40 index fell 0.2% to 7,324.76 and the FTSE 100 index closed up 0.1% to 7,929.92.
The yield on 10-year German Bunds decreased to 2.65%, French bonds inched lower to 3.14%, UK gilts to 3.78% and Italian bonds to 4.43%.
The euro edged lower to $1.05, the British pound eased to $1.183 and the Swiss franc closed at 94.12 cents.
Brent crude oil fell 50 cents to $82.76 a barrel and the Dutch TTF natural gas eased 15 cents to $2.53 a thermal unit.
Europe Stock Movers
Adidas AG fell as much as 3% but recovered to close higher 2.2% to €147.50 after the athletic footwear maker reported disappointing 2022 sales.
Net sales in 2022 increased 6% to $23.8 billion but operating profit fell 66% to $705.4 million. Sales in the fourth quarter struggled after the company severed its relationship with the rapper Kanye West.
The ending of relationship with Ye cost the company $633 million in fourth-quarter sales.
Continental AG increased 7.6% to €78.26 after the automotive tires maker estimated earnings and margins to improve in 2023.
Symrise AG increased €96.14 after the flavor and fragrance maker forecasted core 2023 profit below expectations of some investors.
Thales SA declined 3.6% to €127.85 despite the French defense group reporting higher sales and earnings for 2022.
Restaurant Group PLC plunged 15.3% to 38.36 pence after the company reported a wider loss in the financial year 2022.
Admiral Group plc fell 4.1% to 2,003.0 pence after the UK-based financial services company proposed a lower dividend following the sharp decline in profit.
Legal & General Group plc fell 1.6% to 261.61 pence despite the UK-financial services company reporting a solid increase in earnings in 2022.
Hill & Smith PLC decreased 6.1% to 1,327.67 pence despite the infrastructure and transportation solutions provider reporting nearly two-third increase in pre-tax earnings in 2022.
Europe Movers: Adidas, Admiral Group, Continental, Hill & Smith, Legal & General, Restaurant Group, Symrise, Thales
Bridgette Randall
08 Mar, 2023
Frankfurt
Adidas AG fell as much as 3% but recovered to close higher 2.2% to €147.50 after the athletic footwear maker reported disappointing 2022 sales.
Net sales in 2022 increased 6% to $23.8 billion but operating profit fell 66% to $705.4 million. Sales in the fourth quarter struggled after the company severed its relationship with the rapper Kanye West.
The ending of relationship with Ye cost the company $633 million in fourth-quarter sales.
Admiral Group plc fell 4.1% to 2,003.0 pence after the UK-based financial services company proposed a lower dividend following the sharp decline in profit.
Continental AG increased 7.6% to €78.26 after the automotive tires maker estimated earnings and margins to improve in 2023.
Hill & Smith PLC decreased 6.1% to 1,327.67 pence despite the infrastructure and transportation solutions provider reporting nearly two-third increase in pre-tax earnings in 2022.
Legal & General Group plc fell 1.6% to 261.61 pence despite the UK-financial services company reporting a solid increase in earnings in 2022.
Restaurant Group PLC plunged 15.3% to 38.36 pence after the company reported a wider loss in the financial year 2022.
Symrise AG increased €96.14 after the flavor and fragrance maker forecasted core 2023 profit below expectations of some investors.
Thales SA declined 3.6% to €127.85 despite the French defense group reporting higher sales and earnings for 2022.
Euro Area Economy Stagnated, Germany's Retail Sales Declined
Bridgette Randall
08 Mar, 2023
Frankfurt
European markets lacked direction after investors weighed the latest comments from central bankers and economic data.
Market indexes opened lower following the comments from the Federal Reserve Chairman Jerome Powell suggested larger rate hikes may be necessary to cool inflation.
Closer to home, the European Central Bank next week is set to raise rates for the sixth time in a row to cool sky-high inflation driven by high energy prices.
Investors are anticipating a rate hike of 50 basis points.
On Monday, Governor of Austria's central bank Robert Holzmann said that the rates should be revised higher by the same amount at the next four meetings in a row.
Despite the previous five rate hikes, rates are still not restrictive enough in cooling inflation.
The ECB's main deposit rate is 2.5% and consumer price in the Euro Area is hovering around 8.5%.
Germany's Industrial production Expanded In January
Germany's industrial production unexpectedly rose 3.5% in January and reversed the 2.4% decline in December, the Federal Statistics Office or Destatis reported Wednesday.
Industrial production rose after intermediate goods demand surged 6.9% driven by a rise in demand for chemical and electronic equipment, the report showed.
On other hand, production of consumer goods fell 1.8% and capital goods output decreased 0.6%.
On an annual basis, the industrial production declined 1.6% after falling 3.3% in December.
Germany's Retail Sales Declined
Retail sales in January fell 0.3% after adjusting for inflation from the previous month, the latest data from Destatis showed.
January's retail turnover declined 6.9% from the previous year after higher prices and elimination of energy subsidies forced consumers to retrench.
Euro Area Economy Stagnated In Q4
Economy in the Euro Area stagnated after the latest downward revision in the fourth quarter, Eurostat said in a report today.
GDP expanded 0.4% in the fourth quarter, matching the rate in the third quarter.
Positive contributions from government spending and international trade were offset by the decline in consumer spending and investments.
On an annual basis, the fourth quarter's GDP expansion was downwardly revised to 1.8% from the previous estimate of 1.9% and slower than 2.4% in the third quarter.
The Euro Area's economy expanded 3.5% in 2022 after rising 5.3% in 2021.
Indexes & Yields
The DAX index increased 0.5% to 15,631.87, the CAC-40 index fell 0.2% to 7,324.76 and the FTSE 100 index closed up 0.1% to 7,929.92.
The yield on 10-year German Bunds decreased to 2.65%, French bonds inched lower to 3.14%, UK gilts to 3.78% and Italian bonds to 4.43%.
The euro edged lower to $1.05, the British pound eased to $1.183 and the Swiss franc closed at 94.12 cents.
Brent crude oil fell 50 cents to $82.76 a barrel and the Dutch TTF natural gas eased 15 cents to $2.53 a thermal unit.
Europe Stock Movers
Adidas AG fell as much as 3% but recovered to close higher 2.2% to €147.50 after the athletic footwear maker reported disappointing 2022 sales.
Net sales in 2022 increased 6% to $23.8 billion but operating profit fell 66% to $705.4 million. Sales in the fourth quarter struggled after the company severed its relationship with the rapper Kanye West.
The ending of relationship with Ye cost the company $633 million in fourth-quarter sales.
Continental AG increased 7.6% to €78.26 after the automotive tires maker estimated earnings and margins to improve in 2023.
Symrise AG increased €96.14 after the flavor and fragrance maker forecasted core 2023 profit below expectations of some investors.
Thales SA declined 3.6% to €127.85 despite the French defense group reporting higher sales and earnings for 2022.
Restaurant Group PLC plunged 15.3% to 38.36 pence after the company reported a wider loss in the financial year 2022.
Admiral Group plc fell 4.1% to 2,003.0 pence after the UK-based financial services company proposed a lower dividend following the sharp decline in profit.
Legal & General Group plc fell 1.6% to 261.61 pence despite the UK-financial services company reporting a solid increase in earnings in 2022.
Hill & Smith PLC decreased 6.1% to 1,327.67 pence despite the infrastructure and transportation solutions provider reporting nearly two-third increase in pre-tax earnings in 2022.
January Job Openings Eased but Still Hovered Near 11 Million, Record Quits In 2022
Brian Turner
08 Mar, 2023
New York City
The number of job openings declined slightly in January by 41,000 to 10.824 million from an upwardly revised 11.234 million in December, the JOLT survey from the U.S. Labor Department showed Wednesday.
Job openings in construction declined by 240,000, leisure and food services by 204,000 and insurance and financial services by 100,000 but rose in transportation, warehousing and utilities by 94,000 and nondurable goods manufacturing by 50,000.
Total hires in the month increased to 6.37 million, the largest total since August and separations were stable at 5.9 million. Quits within separations fell to 3.88 million and layoffs and discharges rose 16% or 241,000 to 1.7 million.
The JOLT data showed that 1.9 jobs were available per worker, slightly lower than in the previous months.
Record High Quits In 2022
In 2022, the annual average job openings level was 11.2 million, an increase of 1.2 million from 2021.
The annual average job openings rate was 6.8% in 2022, compared to 6.4% in 2021.
In 2022, there were 77.2 million hires, an increase of 1.2 million from 2021 and total separations increased 3.2 million in 2022 to 72.3 million.
Accounting for 70% of total separations, quits numbered 50.6 million in 2022, the highest annual level in the survey’s history dating back to 2001.
Layoffs and discharges increased by 461,000 in 2022 to 17.6 million and accounted for 24.3% of total separations.
Other separations decreased by 138,000 in 2022 to 4.1 million and accounted for 5.7% of total separations.
U.S. Trade Statistics Highlighted Shifting Supply Chain Locations
Brian Turner
08 Mar, 2023
New York City
The U.S. trade deficit in goods and services increased slightly in January after exports rose faster than imports, the Bureau of Economic Analysis reported Wednesday.
Exports increased 3.4% and soared 13.3% to $257.5 billion.
Imports rose 3.0% from the previous month and jumped 3.5% to $325.7 billion.
Overall trade deficit for goods and services increased 1.6% from the previous month but fell 21.9% from the previous year to $68.3 billion.
The changing nature of international supply chain was visible in the latest trade statistics as manufacturing shifted away from China to Indo Pacific and Mexico.
The U.S. recorded largest trade deficit with China but the amount has been declining as more manufacturing is shifted to Vietnam and other countries.
The international goods trade deficit with China was $21.9 billion, with the EU $18.5 billion, Mexico $12.2 billion, Vietnam $8 billion, Japan $5.6 billion and Canada $5.4 billion.
The U.S. recorded goods trade surpluses with South and Central America of $4.8 billion, the UK $2.7 billion, Australia $1.5 billion and Hong Kong $1.5 billion.
Movers: BlackBerry, CarParts.com, Cricut, Crowdstrike, Harte Hanks, Occidental Petroleum, Stitch Fix
Scott Peters
08 Mar, 2023
New York City
BlackBerry Ltd increased 4.2% to $3.65 after the cybersecurity company reported preliminary quarterly results.
BlackBerry Limited said preliminary revenue in the fourth quarter is expected to be $151 million, including $107 million in cybersecurity billings.
BlackBerry’s results are expected to include a material non-cash, one-time goodwill impairment charge of as much as $440 million for the Spark reporting unit.
Total revenue in the full-year 2022 is expected to be $656 million, including cybersecurity revenue of $401 million.
Fourth quarter and full-year fiscal year 2023 revenue for BlackBerry’s Cybersecurity business unit is expected to be lower than the outlook provided during the third quarter's earnings call, primarily due to certain large government deals taking longer-than-expected.
CarParts.com, Inc decreased 2.7% to $5.95 after the online automobile parts seller reported a slightly larger quarterly loss compared to a year ago.
CarParts.com, Inc said revenue in the fourth quarter increased 12% from a year ago to $154.5 million and jumped 27% on a two-year stack.
Net loss expanded to $6.2 million from $5.0 million and diluted loss per share rose to 11 cents from 10 cents a year ago.
In the full-year, revenue increased 14% from a year ago to a record $661.6 million and increased 45% on a two-year stack.
Net loss shrank to $1.0 million from $10.0 million and diluted loss per share declined to 2 cents from 20 cents a year ago.
Cricut Inc fell 2.2% to $8.80 after the maker of connected cutting machines reported a decline in revenue and earnings in the fourth quarter.
Revenue in the quarter declined to $280.8 million from $387.8 million and net income dropped to $10.9 million from $11.9 million and diluted earnings per share was flat at 5 cents.
Full-year 2022 revenue declined to $886.3 million from to $1.3 billion and net income declined to $60.7 million from $140.5 million and diluted earnings per share fell to 28 cents from 64 cents a year ago.
Crowdstrike Holdings Inc added 1.3% to $126.57 after the cybersecurity company reported better-than-expected quarterly results. Revenue in the fourth quarter increased to $637 million and earnings per share rose to 47 cents.
Occidental Petroleum Corporation increased 1.4% to $61.70 after a regulatory filing showed that the Warren Buffett controlled Berkshire Hathaway increased its stake in the company by purchasing 5.8 million additional shares last week.
Harte Hanks, Inc increased 0.3% to $10.23 after the direct mail services company reported an increase in revenue in its latest quarter.
Harte Hanks, Inc said revenue in the fourth quarter increased 5.4% to $54.8 million from $52.0 million a year ago.
Net income increased to $21.8 million, inclusive of a one-time $19.8 million tax benefit and $1.4 million in other expenses mainly related to pension expense and foreign currency loss, compared to net income of $1.8 million a year ago.
Diluted earnings per share was $2.70 compared to 20 cents a year ago. In the full-year 2022, revenues increased 6% to $206.3 million from $194.6 million and net income rose to $36.8 million from $15 million and diluted earnings per share was $4.75 compared to $1.76 a year ago.
Stitch Fix Inc dropped 13.5% to $4.31 after the online fashion platform reported wider-than-expected loss.
Stitch Fix Inc said revenue in the fiscal second quarter ended on January 28 declined 20% to $412.1 million and net loss expanded to $65.6 million from $30.9 million and diluted loss per share rose to 58 cents from 28 cents a year ago.
Active clients in the quarter declined 11% to 3.6 million and net revenue per active client fell 6% to $516 million.
The company forecasted revenue in the fiscal third quarter ending on April 29 in the range between $385 million and $395 million, a decline between 20% and 22% from the previous year.
Private Payrolls Gain Signaled Faster Rate Hikes Ahead
Barry Adams
08 Mar, 2023
New York City
Major averages edged higher as investors digested recent comments from the Federal Reserve chairman and awaited Friday's jobs data.
U.S. Treasury yields hovered near 16-year highs as investors mulled faster rate hikes and higher peak rates in the month ahead.
Private payrolls expanded at a faster pace in February, suggesting tight labor market conditions to persist despite multiple rate hikes over the last twelve months.
What is good news on the Main Street is bad news on Wall Street as investors fear that rates may have to go further in the restrictive territory before the inflation cools and may push the economy towards a recession.
Employment report tracking payrolls across all sectors of the economy are scheduled to be released on Friday by the U.S. Labor Department and investors are anticipating net job gains of closer to 300,000.
February Private Payrolls Growth Accelerated
Private sector net job addition accelerated in February, according to the latest monthly report released by the payrolls processing company ADP.
U.S. private payrolls increased by 242,000 in February, higher than the revised 119,000 increase in January.
The February's gains were driven by 190,000 additions in the service sector and 52,000 increase in the manufacturing sector.
Overall wage gains decelerated to 7.2%.
U.S. Trade Deficit Edged Higher In January
The U.S. trade deficit in goods and services increased slightly in January after exports rose faster than imports, the Bureau of Economic Analysis reported Wednesday.
Exports increased 3.4% and soared 13.3% to $257.5 billion.
Imports rose 3.0% from the previous month and jumped 3.5% to $325.7 billion.
Overall trade deficit for goods and services increased 1.6% from the previous month but fell 21.9% from the previous year to $68.3 billion.
Indexes & Yields
The S&P 500 index increased 0.1% to 3,992.05 and the Nasdaq Composite index inched higher to 0.4% to 11,576.86.
The yield on 2-year Treasury notes hovered near 5.0%, 10-year Treasury notes inched lower to 3.96% and 30-year Treasury bonds traded around 3.84%.
Crude oil prices declined 96 cents to $76.58 a barrel and natural gas prices eased 14 cents to $2.54 a thermal unit.
U.S. Stock Movers
Occidental Petroleum Corporation increased 1.4% to $61.70 after a regulatory filing showed that the Warren Buffett controlled Berkshire Hathaway increased its stake in the company by purchasing 5.8 million additional shares last week.
Crowdstrike Holdings Inc added 1.3% to $126.57 after the cybersecurity company reported better-than-expected quarterly results. Revenue in the fourth quarter increased to $637 million and earnings per share rose to 47 cents.
Stitch Fix Inc dropped 13.5% to $4.31 after the online fashion platform reported wider-than-expected loss.
Stitch Fix Inc said revenue in the fiscal second quarter ended on January 28 declined 20% to $412.1 million and net loss expanded to $65.6 million from $30.9 million and diluted loss per share rose to 58 cents from 28 cents a year ago.
BlackBerry Ltd increased 4.2% to $3.65 after the cybersecurity company reported preliminary quarterly results.
BlackBerry Limited said preliminary revenue in the fourth quarter is expected to be $151 million, including $107 million in cybersecurity billings.
Markets Confront Reality of Higher and Faster Rate Hikes After Powell Comments
Barry Adams
07 Mar, 2023
New York City
Major indexes accelerated decline in the afternoon after worries of larger interest rate hike at the next policy meeting resurfaced.
The uptick in Treasury yields came together with a weakness in high-growth and tech stocks after the Federal Reserve chairman delivered a hawkish sentiment in his prepared remarks for lawmakers.
The yields on the U.S. Treasury notes maturing between three months and two years traded above 5% for the first time since 2007.
Federal Reserve chairman Jerome Powell said the central bank is ready to increase rates faster if incoming data supported the case in his testimony to the U.S. Senate Banking, Housing and Urban Affairs Committee Tuesday morning.
Moreover, Powell added that the terminal rates are likely to be higher than previously estimated.
Chairman Powell noted that latest economic data have been stronger-than-anticipated and to bring down inflation to 2% and restore price stability will require raising rates to restrictive levels.
At the Fed's policy meeting in February, the committee raised the target range for federal funds by 25 basis points to between 4.5% and 4.75%, the highest level since 2007.
Chairman Powell's comments suggested that the central bank may increase rates by a larger amount than last month's 25 basis points at its next two-day policy meeting ending on March 22.
The talk of faster rate hikes and higher terminal rates spooked investors and tech stocks accelerated the decline in the afternoon.
U.S. Indexes & Yields
The S&P 500 index decreased 1.5% to 3,986.41 and the Nasdaq Composite index fell 1.3% to 11,530.33.
The yield on 2-year Treasury notes inched higher to 5.02%, 10-year Treasury notes inched higher to 3.96% and 30-year Treasury bonds edged higher to 3.87%.
Crude oil fell $3.19 to $77.27 a barrel and natural gas prices fell 9 cents to $2.66 a thermal unit.
U.S. Stock Movers
Dick's Sporting Goods Inc increased 9.2% to $144.28 after the specialty retailer reported higher-than-expected sales in the holiday period.
Profit in the fourth quarter declined 32% despite sales rising 7.3% in the period, hurt by lower gross margin.
Net sales in the quarter rose 7.3% to $3.60 billion from $3.35 billion in the previous year and comparable store sales rose 5.3%.
Net income fell to $235.6 million or $2.60 per share from $346.1 million or $3.16 per share in the prior-year quarter.
Excluding items, adjusted income decreased to $2.93 per share from $3.64 a year ago.
JetBlue Airways Corporation declined 0.2% to $8.39 and the Justice Department sued the company to block its proposed takeover of the discount airline Spirit Airlines.
Rivian Automotive Inc plunged 12% to $15.02 after the electric vehicle maker said it plans to offer $1.3 billion convertible debt amid growing demand slump.
The electric vehicle maker lost $6.8 billion in 2022 and after supply chain issues negatively impacted production.
Meta Platforms Inc increased 1% to $186.33 after a Bloomberg report said that the parent of Facebook is planning to layoff thousands of employees as early as this week.
European Markets Trade Near One-year Highs
Stocks in Europe lacked direction and investors reacted to local earnings and awaited commentary from the U.S. Federal Reserve chairman Jerome Powell.
France's benchmark index advanced to a new record high and Germany's index traded at a new one-year high after energy prices eased for the third week in a row.
German factory orders unexpectedly rose and the UK's home prices rose at the fastest pace in eight months.
German Factory Orders Unexpectedly Rose In January
German factory orders rose unexpectedly in January driven by demand from international customers.
German factory orders increased 1.0% in January from the revised 3.4% in December, the Federal Statistical Office or Destatis said Tuesday.
Manufacturing new orders on an annual basis declined at a faster rate of 10.9% in January after dropping 9.9% in December.
UK Home Prices Increased at 8-month High Rate
Home prices in the UK rose at a faster pace in February underpinned by the improving confidence and resilient labor markets.
Despite the cost of living crisis, home prices rose 1.1% in February after rising 0.2% in January, S&P Global and Halifax said in a report released Tuesday.
Home prices rose for the second month in a row and jumped at the fastest pace since June 2022.
The average home price increased to £285,476 in February compared to £282,360 in January.
Europe Indexes & Yields
The DAX index increased 0.2% to 15,678.50, the CAC-40 index added 0.2% to 7,387.18 and the FTSE 100 index advanced 0.3% to 7,949.76.
The yield on 10-year German Bunds edged down to 2.66%, French bonds to 3.15%, the UK gilts to 3.78% and Italian bonds to 4.45%.
The euro hovered near $1.065, the British pound inched lower to $1.19 and the Swiss franc to 93.36 cents.
Brent crude oil eased 56 cents to $85.56 a barrel and the Dutch TTF natural gas edged up to Є42.05 per MWh.
Europe Stock Movers
Schaeffler AG fell 7.3% to €6.84 after the Germany-based bearings maker reported a decline in financial year 2022 profit and issued a cautious outlook for 2023.
The company also trimmed its dividend.
Henkel AG declined 2.2% to €67.70 after the German chemical and consumer goods company reported a 13.7% decline in its adjusted operating earnings in 2022.
HelloFresh SE decreased 6.9% to €21.16 after the meal-kit maker estimated lower-than-expected core profit in 2023.
Ashtead Group plc increased 3.3% to 5,936.0 pence after the UK-based equipment rental company said annual results are likely to surpass its own estimate.
Zalando SE increased 3.4% to €40.15 after the online marketplace operator said it plans to focus on improving its operating margins and eliminate unnecessary costs.
John Wood Group Plc increased 14.3% to 221.80 pence after the UK-based engineering company said it is likely to reject the latest buyout proposal from the private equity group Apollo Global Management.
Greggs Plc declined 0.7% to 2,732.0 pence after the bakery and fast food chain said that the company is facing inflationary cost pressures.