Market Update
Solid February Job Growth, Wage Growth Moderated
Brian Turner
10 Mar, 2023
New York City
Total nonfarm payroll employment increased 311,000 in February following the downwardly revised 504,000 in January, the U.S. Bureau of Labor Statistics reported Friday.
Both the unemployment rate, at 3.6%, and the number of unemployed persons, at 5.9 million, edged up in the month.
February payroll gain took the six-month average to 343,000 with notable job gains occurred in leisure and hospitality, retail trade, government, and health care.
In February, average hourly earnings for all employees on private nonfarm payrolls rose by 8 cents, or 0.2%, to $33.09 and increased 4.6%.
The increase in total nonfarm payroll employment for December was revised down by 21,000, from 260,000 to 239,000, and for January was revised down by 13,000, from 517,000 to 504,000.
With these revisions, employment gains in December and January combined were 34,000 lower than previously reported.
S&P 500 and Nasdaq Down 2% Ahead of Friday's Jobs Report
Barry Adams
09 Mar, 2023
New York City
Stocks lost early momentum and fell sharply as investors reviewed comments from the Fed chairman and jobless claims ahead of Friday's nonfarm payrolls data.
The changing narrative on the rate path and the level of peak rates have lingered on for months but optimism prevailed on Wall Street that the Fed is ready to pause as early as this summer.
Chairman Powell clarified that is simply not the case in his comments to lawmakers and investors, replacing the prospect of rate pause with retracing of aggressive rate hikes.
Higher-rates-for-longer theory is going to face its test on Friday after the release of nonfarm payrolls data before the opening of financial markets.
Economists polled by Ticker.com are estimating net job gains of as much as 275,000 in February, sharply lower than the 517,000 increase in January which is widely seen as an anomaly.
In other news, initial jobless claims in the last week rose to the most in 2023 and investors await a broader report on the state of the labor market and health of the economy.
ADP's private payroll data and the Labor Department's monthly JOLT survey showed tight labor market conditions and resilient economy, raising worries that the Fed may have to raise faster to cool the economy that may be deemed too hot.
Weekly Jobless Claims Advanced
Initial jobless claims for the week ended March 4 surged by 21,000 from the previous week to 211,000, the U.S. Labor Department reported Thursday.
The weekly claims were the highest in 2023 after tech layoffs accelerated. The four-week moving average which smoothes out the weekly volatility increased 4,000 to 197,000.
Continuing claims ending in the previous week increased 69,000 to 1.72 million, the highest since January 2022.
Indexes & Yields
The S&P 500 index decreased 1.9% to 3,918.32 and the Nasdaq Composite index fell 2.1% to 11,338.35.
The yield on 2-year Treasury notes decreased to 4.87%, 10-year Treasury notes edged down to 3.91% and 30-year Treasury bonds fell to 3.85%.
Crude oil fell 95 cents to $75.71 a barrel and natural gas fell 6 cents to $2.48 thermal unit.
U.S. Stock Movers
Silvergate Capital Corp fell 28.3% to $3.39 after the company said it plans to initiate the process of liquidating crypto-assets focused Silvergate Bank.
SVB Financial Group plunged 38.9% to $163.43 after the company announced its plan to raise through a $1.25 billion common stock offering and $500 million depository receipts.
MongoDB Inc declined to $211.45 after the database company offered weak revenue guidance.
The company said revenue in the fourth quarter increased 36% to $361.3 million and net loss declined to $64.4 million from $84.4 million and diluted loss per share fell to 93 cents from $1.26 a year ago.
The company guided full-year 2023 revenue in the range of $1.48 billion and $1..51 billion, indicating a slower revenue growth than in 2022.
Tesla Inc declined 0.6% to $180.83 on the news that federal safety regulators are looking to investigate what happened in a fatal collision involving a Tesla S model and a firetruck.
European Markets Weigh Latest Corporate Results Against Higher Rates
Market indexes in Europe lacked direction after central bankers carried out hawkish rate hike campaign in the previous three days.
Stocks struggled to shake off rate path worries as investors mulled the latest economic data.
France's payroll growth slowed in the fourth quarter and the UK's housing market showed another month of weakness as buyers struggled with affordability.
France's Payroll Growth Slows In Q4
France's payroll increase slowed in the fourth quarter of 2022 driven by gains in the private sector, said the statistical office INSEE on Thursday.
Payroll in the quarter increased 0.2% or 44,000 following the 0.3% rise or 84,100 in the third quarter.
Private sector payroll employment was revised higher to an increase of 0.2% from the preliminary estimate of flat growth reported on February 8.
On the other hand, public payroll was stable in the fourth quarter after a slight decrease of 0.1% in the third quarter.
Temporary employment rose 1.1% in the fourth quarter after a 1.5% increase in the third quarter.
UK Housing Markets Remains In Downward Trend
The UK housing market remained in the downward trend after rising rates piled on higher cost of homes, the Royal Institute of Chartered Surveyors said in a report Thursday.
The new home inquiry index improved to -29 in February from -45 in January, the best level since July 2022 and measure of new home sales recovered to -26 from -36 in January and time to sell a home approached 19 weeks.
The weakness in the housing market is likely to persist for the next several months after the Bank of England showed a downward trend in mortgage approval to 39,600 in January from 40,500 in December.
Higher home prices and higher rates are keeping many buyers away from the market. The Bank of England lifted its key lending rate by 390 basis points since the current tightening cycle began in December.
Indexes & Yields
The DAX index increased 1.34 points to 15,633.21, the CAC-40 index fell 8.88 points to 7,315.88 and the FTSE 100 index decreased 0.6% or 49.94 points to 7,879.98.
The yield on the 2-year German Bund closed at 2.606%, French bonds at 3.13%, the UK gilts at 3.81% and Italian bonds at 4.38%.
The euro inched up to close at $1.059, the British pound edged higher to $1.19 and the Swiss franc increased to 93.46 cents.
Brent crude oil decreased 80 cents to $81.85 and the Dutch TTF natural gas increased Є1.26 to Є43.60 per MWh.
Europe Movers
Credit Suisse AG declined 1.9% to Sfr 2.62 after the troubled financial services provider delayed the publication of its annual report.
Domino's Pizza Group PLC declined 8.9% to 260.0 pence after the company reported a decline in annual profit in 2022.
Enel SpA was nearly unchanged after falling as much as 1.5% to Є5.32 and Italy's utility group agreed to sell its operations in Romania to Public Power Corp of Greece.
Informa PLC rose as much as 2.5% before closing unchanged at 68.42 pence after the event management company agreed to acquire Tarsus Group from the private equity group Charterhouse Capital Partners for $940 million.
Aviva Plc increased 2.8% to 462.50 pence after the insurance group agreed to allocate more capital to shareholders.
The company declared a final dividend of 20.7 pence totaling annual dividend to 31.0 pence in 2022 and also announced a new stock repurchase program of £300 million.
Revenue in the period increased to £2.7 billion from £2.2 billion and the insurance company swung to a loss of £1.1 billion from £2.0 billion and basic earnings per share was (38.2 pence) from 50.1 pence a year ago.
Hugo Boss AG decreased 3.3% to €62.54 and the fashion apparel retailer said sales in 2022 increased 27% to record €3.7 billion.
The luxury fashion retailer forecasted sales to rise "in the mid-single-digit percentage rate" in 2023.
Informa Agreed to Buy Dubai Air Show Manager Tarsus for $940 Million
Scott Peters
09 Mar, 2023
New York City
Informa PLC rose as much as 2.5% before closing unchanged at 68.42 pence after the event management company agreed to acquire Tarsus Group from the private equity group Charterhouse Capital Partners for $940 million.
The event and book publishing company announced the acquisition along with its annual financial results for 2022.
Informa agreed to pay $210 million in cash and the remainder through its stock with a two-year lock up and additional earnout of $45 million if Informa stock price traded at 850 pence in the lock-up period.
Tarsus owns and operates a portfolio of 160 live and on-demand business to business events and ten largest events attract 515,000 attendees and 8,350 exhibitors.
The purchase price is 9.9 times Tarsus's operating earnings in the financial year 2023-24 and 9 times operating earnings in 2024-25.
Revenue in 2022 increased to £2.2 billion from £1.6 billion and net income from the continuing operations increased to £142.1 million from £44.3 million a year ago.
Tarsus is known for its Off Price Show in the U.S. and Dubai Air Show in the UAE and the business-to-business event management company generates about 49% of its revenue in the Americas and 25% in Asia including Turkey.
The acquisition of Tarsus Group is expected to expand Informa's portfolio of events in top 10 category to 85.
Informa estimated annual operating synergy of $20 million through better event contracts, procurements and real estate management.
“We have long admired the Tarsus business which, like Informa, has been built around major brands in attractive, specialist B2B markets in the growing regions of Asia, China, the Middle East and the Americas,” Informa Chief Executive Officer Stephen Carter said.
The acquisition is expected to be completed by the end June 2023.
Under Carter's leadership the company has been busy reshuffling its portfolio and last year acquired business news publisher Industry Dive and sold its interest in Pharma Intelligence, Maritime Intelligence and
Europe Movers: Aviva, Credit Suisse, Domino's Pizza, Enel, Hugo Boss, Informa
Bridgette Randall
09 Mar, 2023
Frankfurt
Aviva Plc increased 2.8% to 462.50 pence after the insurance group agreed to allocate more capital to shareholders.
The company declared a final dividend of 20.7 pence totaling annual dividend to 31.0 pence in 2022 and also announced a new stock repurchase program of £300 million.
Revenue in the period increased to £2.7 billion from £2.2 billion and the insurance company swung to a loss of £1.1 billion from £2.0 billion and basic earnings per share was (38.2 pence) from 50.1 pence a year ago.
Credit Suisse AG declined 1.9% to Sfr 2.62 after the troubled financial services provider delayed the publication of its annual report.
Domino's Pizza Group PLC declined 8.9% to 260.0 pence after the company reported a decline in annual profit in 2022.
Enel SpA was nearly unchanged after falling as much as 1.5% to Є5.32 and Italy's utility group agreed to sell its operations in Romania to Public Power Corp of Greece.
Hugo Boss AG decreased 3.3% to €62.54 and the fashion apparel retailer said sales in 2022 increased 27% to record €3.7 billion.
Sales in the Europe, Middle East and Africa region soared 32% to €2.3 billion, in the Americas rose 45% to €789 million and in Asia Pacific rose 10% to €467 million.
Net income increased 54% to €222 million from €144 million and earnings per share rose to €3.04 from €1.99 a year ago.
The luxury fashion retailer forecasted sales to rise "in the mid-single-digit percentage rate" in 2023.
Informa PLC rose as much as 2.5% before closing unchanged at 68.42 pence after the event management company agreed to acquire Tarsus Group from the private equity group Charterhouse Capital Partners for $940 million.
Informa agreed to pay $210 million in cash and the remainder through its stock with a two-year lock up and additional earnout of $45 million if Informa stock price traded at 850 pence in the lock-up period.
The purchase price is 9.9 times Tarsus's operating earnings in the financial year 2023-24 and 9 times operating earnings in 2024-25.
Revenue in 2022 increased to £2.2 billion from £1.6 billion and net income from the continuing operations increased to £142.1 million from £44.3 million a year ago.
European Markets Weighed Latest Corporate Results Against Future Rate Hikes
Bridgette Randall
09 Mar, 2023
Frankfurt
Market indexes in Europe lacked direction after central bankers carried out hawkish rate hike campaign in the previous three days.
Stocks struggled to shake off rate path worries as investors mulled the latest economic data.
France's payroll growth slowed in the fourth quarter and the UK's housing market showed another month of weakness as buyers struggled with affordability.
France's Payroll Growth Slows In Q4
France's payroll increase slowed in the fourth quarter of 2022 driven by gains in the private sector, said the statistical office INSEE on Thursday.
Payroll in the quarter increased 0.2% or 44,000 following the 0.3% rise or 84,100 in the third quarter.
Private sector payroll employment was revised higher to an increase of 0.2% from the preliminary estimate of flat growth reported on February 8.
On the other hand, public payroll was stable in the fourth quarter after a slight decrease of 0.1% in the third quarter.
Temporary employment rose 1.1% in the fourth quarter after a 1.5% increase in the third quarter.
UK Housing Markets Remains In Downward Trend
The UK housing market remained in the downward trend after rising rates piled on higher cost of homes, the Royal Institute of Chartered Surveyors said in a report Thursday.
The new home inquiry index improved to -29 in February from -45 in January, the best level since July 2022 and measure of new home sales recovered to -26 from -36 in January and time to sell a home approached 19 weeks.
The weakness in the housing market is likely to persist for the next several months after the Bank of England showed a downward trend in mortgage approval to 39,600 in January from 40,500 in December.
Higher home prices and higher rates are keeping many buyers away from the market. The Bank of England lifted its key lending rate by 390 basis points since the current tightening cycle began in December.
Indexes & Yields
The DAX index increased 1.34 points to 15,633.21, the CAC-40 index fell 8.88 points to 7,315.88 and the FTSE 100 index decreased 0.6% or 49.94 points to 7,879.98.
The yield on the 2-year German Bund closed at 2.606%, French bonds at 3.13%, the UK gilts at 3.81% and Italian bonds at 4.38%.
The euro inched up to close at $1.059, the British pound edged higher to $1.19 and the Swiss franc increased to 93.46 cents.
Brent crude oil decreased 80 cents to $81.85 and the Dutch TTF natural gas increased Є1.26 to Є43.60 per MWh.
Europe Movers
Credit Suisse AG declined 1.9% to Sfr 2.62 after the troubled financial services provider delayed the publication of its annual report.
Domino's Pizza Group PLC declined 8.9% to 260.0 pence after the company reported a decline in annual profit in 2022.
Enel SpA was nearly unchanged after falling as much as 1.5% to Є5.32 and Italy's utility group agreed to sell its operations in Romania to Public Power Corp of Greece.
Informa PLC rose as much as 2.5% before closing unchanged at 68.42 pence after the event management company agreed to acquire Tarsus Group from the private equity group Charterhouse Capital Partners for $940 million.
Aviva Plc increased 2.8% to 462.50 pence after the insurance group agreed to allocate more capital to shareholders.
The company declared a final dividend of 20.7 pence totaling annual dividend to 31.0 pence in 2022 and also announced a new stock repurchase program of £300 million.
Revenue in the period increased to £2.7 billion from £2.2 billion and the insurance company swung to a loss of £1.1 billion from £2.0 billion and basic earnings per share was (38.2 pence) from 50.1 pence a year ago.
Hugo Boss AG decreased 3.3% to €62.54 and the fashion apparel retailer said sales in 2022 increased 27% to record €3.7 billion.
The luxury fashion retailer forecasted sales to rise "in the mid-single-digit percentage rate" in 2023.
Movers: BJ's Wholesale Club, Credit Suisse, Life Time Group, MongoDB, Silvergate Capital, SVB Financial, Tesla
Scott Peters
09 Mar, 2023
New York City
BJ's Wholesale Club Holdings Inc increased 5.1% to $78.09 after the company posted better-than-expected results in its latest quarter.
Revenue in the fourth quarter ending on January 28 increased 13.1% to $4.9 billion from $4.3 billion a year ago.
Net income rose 20.7% to $129.8 million from $1107.6 million and diluted earnings per share rose to 95 cents from 78 cents a year ago.
Total comparable club sales increased 9.8% and comparable club sales, excluding gasoline sales advanced 8.7% from the previous year.
Membership fee income increased 8.0% from the previous year in the quarter to $101.8 million and the company achieved a record 90% tenured member renewal rate.
Credit Suisse AG decreased 2.4% to $2.83 after the company delayed releasing its annual report following a call from the U.S. Securities and Exchange Commission.
Life Time Group Holdings Inc increased 2.0% to $17.83 after the fitness center chain operator reported a rebound in revenue.
Revenue in the fourth quarter increased 31.1% to $472.7 million and the company swung to net income of $13.7 million from a loss of $304.8 million and diluted earnings per share was 7 cents compared to a loss of $1.64 in the previous year.
Comparable center sales rose at a slower pace of 26% from 52% in the year ago and membership increased 11.7% to 725,206.
Average monthly dues per center membership increased approximately 20% to $162.0.
MongoDB Inc declined to $211.45 after the database company offered weak revenue guidance.
The company said revenue in the fourth quarter increased 36% to $361.3 million and net loss declined to $64.4 million from $84.4 million and diluted loss per share fell to 93 cents from $1.26 a year ago.
The company guided full-year 2023 revenue in the range of $1.48 billion and $1..51 billion, indicating a slower revenue growth than in 2022.
Silvergate Capital Corp fell 28.3% to $3.39 after the company said it plans to initiate the process of liquidating crypto-assets focused Silvergate Bank.
SVB Financial Group plunged 38.9% to $163.43 after the company announced its plan to raise through a $1.25 billion common stock offering and $500 million depository receipts.
Tesla Inc declined 0.6% to $180.83 on the news that federal safety regulators are looking to investigate what happened in a fatal collision involving a Tesla S model and a firetruck.
Investors Struggle to Adjust to Fed's Delayed Stronger Action Message
Barry Adams
09 Mar, 2023
New York City
Stocks lost early momentum as investors reviewed comments from the Fed chairman and jobless claims ahead of Friday's nonfarm payrolls data.
Initial jobless claims in the last week rose to the most in 2023 and investors await a broader report on the state of the labor market and health of the economy.
ADP's private payroll data and the Labor Department's monthly JOLT survey showed tight labor market conditions and resilient economy, raising worries that the Fed may have to raise faster to cool the economy that may be deemed too hot.
Weekly Jobless Claims Advanced
Initial jobless claims for the week ended March 4 surged by 21,000 from the previous week to 211,000, the U.S. Labor Department reported Thursday.
The weekly claims were the highest in 2023 after tech layoffs accelerated. The four-week moving average which smoothes out the weekly volatility increased 4,000 to 197,000.
Continuing claims ending in the previous week increased 69,000 to 1.72 million, the highest since January 2022.
Indexes & Yields
The S&P 500 index decreased 0.2% to 3,985.68 and the Nasdaq Composite index eased 2.12 points to 11,570.95.
The yield on 2-year Treasury notes decreased to 4.98%, 10-year Treasury notes edged down to 3.98% and 30-year Treasury bonds fell to 3.88%.
Crude oil advanced $1.12 to $77.77 a barrel and natural gas rose 6 cents to $2.61 thermal unit.
U.S. Stock Movers
Silvergate Capital Corp fell 28.3% to $3.39 after the company said it plans to initiate the process of liquidating crypto-assets focused Silvergate Bank.
SVB Financial Group plunged 38.9% to $163.43 after the company announced its plan to raise through a $1.25 billion common stock offering and $500 million depository receipts.
MongoDB Inc declined to $211.45 after the database company offered weak revenue guidance.
The company said revenue in the fourth quarter increased 36% to $361.3 million and net loss declined to $64.4 million from $84.4 million and diluted loss per share fell to 93 cents from $1.26 a year ago.
The company guided full-year 2023 revenue in the range of $1.48 billion and $1..51 billion, indicating a slower revenue growth than in 2022.
Tesla Inc declined 0.6% to $180.83 on the news that federal safety regulators are looking to investigate what happened in a fatal collision involving a Tesla S model and a firetruck.
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.