Market Update
Europe Movers: Informa, John Wood, Roche, Rheinmetall
Bridgette Randall
14 Nov, 2022
Frankfurt
European markets advanced following the surge in the previous week and indexes gained after China proposed a wide ranging measures to rescue moribund real estate sector.
The DAX index gained 0.6% to 14,313.30, the CAC-40 index added 0.2% to 6,609.17 and the FTSE 100 index jumped 0.9% to 7,385.17.
European markets closed higher and Germany's DAX index closed at a five-month high, France's CAC-40 index at a 7-month high and the U.K.'s FTSE 100 index closed at a two-month high.
The dollar edged lower and the yield on U.S. Treasuries turned higher after comments from the U.S. Fed officials.
The British pound was in focus ahead of the UK Chancellor's Autumn Statement on Thursday indicating spending and tax provisions.
The euro rebounded to $1.03 and the British pound edged up to $1.178.
Brent crude edged down 3.5% to $92.57 a barrel and Dutch TTF natural gas jumped 16% to 113.60 euros MWh.
Informa Plc jumped 5% after the global event organizer lifted its annual outlook and said its events are now tracking 85% levels of full-year revenue in 2018, excluding China.
The company said it has repurchased over
European Markets at 6-month High, Eurozone Output Advanced
Bridgette Randall
14 Nov, 2022
Frankfurt
European markets advanced following the surge in the previous week and indexes gained after China proposed a wide ranging measures to rescue moribund real estate sector.
Market sentiment was muted in the early trading after the U.S. Federal Reserve Governor Chris Waller said on Sunday that the pace of future rate hike may be slower but the central bank is not done with fighting sky-high inflation.
Investors took note of the latest comments from Federal Reserve Vice Chair Lael Brainard, indicating that rate hike may "soon" begin to slow after several -large hikes this year.
Stocks Lack Direction On Wall Street, Bond Yields In Focus On Rate Expectations
Barry Adams
14 Nov, 2022
New York City
Stocks on Wall Street lacked direction after 3 hours of trading and investors looked ahead to corporate earnings.
Over the weekend, Democratic Party won one more U.S. Senate seat, retaining control of the upper chamber of the Congress.
Democrats hold 50 seats and Republicans control 49 seats in the U.S. Senate, Georgia results will be decided after a runoff in December.
The Republican Party is expected to win the control of the U.S. House but results of 19 elections are still not decided six days after the election.
Former President is set to declare his intention to run for the presidential election in 2024 on Tuesday, despite several Trump-backed high-profile election deniers losing competitive races in the midterm elections.
The S&P 500 index fell 0.2% to 3,984.38 and the Nasdaq Composite index traded lower 0.6% to 11,254.94.
Crude oil declined $2.35 to $86.56 a barrel and natural gas rose 44 cents to $6.33 a thermal unit.
Investors took note of latest comments from Federal Reserve Vice Chair Lael Brainard, indicating that rate hike may "soon" begin to slow after several -large hikes this year.
Week: S&P 500 Advanced 6.1%, Nasdaq Soared 8.8%
Barry Adams
11 Nov, 2022
New York City
Stocks on Wall Street struggled a day after benchmark indexes soared the most in one-day in two years.
Benchmark indexes rebounded from morning doldrums and extended gains in choppy trading.
Tech stocks turned higher from the morning losses and widely held Tesla, Amazon, Microsoft, Apple, Meta and Alphabet jumped between 1% 4%.
The S&P 500 index rose 0.9% to 3,992.92 and the Nasdaq Composite index advanced 1.9% to 11,323.33.
For the week, the S&P 500 index soared 6.1% and the Nasdaq Composite index advanced 8.8%.
Mood on Wall Street was cautious after the largest cryptocurrency exchange FTX filed for bankruptcy protection and CEO Sam Bankman-Fried resigned.
The cryptocurrency exchange is also facing investigations from the U.S. Department of Justice and the Securities and Exchange Commission.
The sudden collapse of FTX has sent shock waves in the crypto investment community and cast a harsh spotlight on the investment practices of leading venture capital firms in Silicon Valley.
FTX was operating with little oversight from its investors, board of directors and local and international regulators, while billions of dollars of transactions were processed on its platform.
The company is also alleged to have dipped into the customer accounts and used the assets as collateral for related party transactions.
Bitcoin dropped 6% to $16,670 and other popular cryptocurrencies dropped between 4% and 6%. on the FTX bankruptcy news.
China Eases Restrictions But Warns of Rising Infections
Energy prices rose after China eased some of the coronavirus-linked stringent mobility restrictions.
China, a day after top officials reiterated the need for stringent lockdowns, suggested improvement to current rules.
The revised rules trimmed the quarantine requirements to five days from seven, cut PCR test to one from two prior to 48 hours of air travel and said it will crack down on arbitrary lockdowns and punish responsible officials.
The National Health Commission also warned that infections are likely to spread with the arrival of winter and virus mutation.
Chinese stocks rose and energy prices advanced after Guangdong province immediately implemented revised mobility restrictions.
Crude oil increased $2.47 to $88.95 a barrel and natural gas futures fell 31 cents to $5.92 a thermal unit.
Gold edged up 0.7% to $1,767.48 an ounce and silver fell 2 cents to $21.65 an ounce.
Stable Treasury Yields
The U.S. bond market was closed to observe Veterans Day but bonds changed a little in private trading.
The yield on 2-year Treasury notes declined to 4.33%, 10-year Treasury notes eased to 3.83% and 30-year Treasury bonds fell to 4.08%.
U.S. Movers
Beazer Homes added 1.7% to $12.53 after the homebuilder reported revenue and earnings ahead of expectations in its latest quarter.
Rising home prices and improving gross margin drove the better performance in the quarter.
Homebuilding gross margin increased 330 basis points to 22.6% and average home price increased 22% to $510,700.
Doximity Inc soared 20% to $31.60 after the online platform for healthcare professionals reported better-than-expected quarterly results.
For the December quarter, the company guided revenue between $110.7 million and $111.7 million.
The company also launched a $70 million stock repurchase plan to be executed over the next twelve months.
Duolingo Inc fell 3.3% to $83.30 and the online language platform operator reported a smaller loss and lifted its annual outlook.
Monthly active users increased 35% to 56.1 million, daily active users rose 51% to 14.9 million and paid subscribers jumped 68% to 3.7 million.
The company estimated fourth quarter revenue between $98 million and $101 million and full-year 2022 revenue between $364 million and $367 million.
LegalZoom.com, Inc soared 15% to $10.92 and the online legal documents and advice provider reported smaller-than-expected quarterly loss and lifted its full-year revenue estimate.
The company guided fourth quarter revenue between $145 million and $147 million and full-year 2022 revenue between $617 million and $619 million.
US Bancorp fell 0.3% to $44.75 and Warren Buffett-controlled Berkshire Hathaway lowered its stake in the bank to 53 million shares of 3.6%, according to a regulatory filing with the SEC.
Berkshire has sold 91 million shares in the year so far and slashed its holding in the financial services company.
Wynn Resorts added 3.2% to $74.58 and Las Vegas Sands added 4.3% to $43.85 after China loosened Covid-19 restrictions.
Both companies have a significant presence in Macau, China, a tourist and travel destination for Chinese citizens.
German Inflation Accelerated, UK GDP Shrank
European markets traded sideways after the UK GDP shrank less-than-expected and German inflation accelerated in October.
Consumer price index in Germany accelerated to 10.4% from 10.0% in September, Destatis reported today.
The estimate confirmed the flash estimate released a few days ago.
The UK GDP shrank in the third quarter, said the Office for National Statistics on Friday. However, the pace of decline was smaller-than-expected 0.5%.
The weakness in the service sector dragged the GDP down 0.2% in the September quarter from the previous quarter, but the economy expanded 2.4% from a year ago.
High interest rates and inflation are expected to drag the economy into the longest recession since the record keeping began.
The Bank of England has estimated the economy to shrink in the second half of 2022 and the weakness to persist in 2023 and 2024.
The DAX index increased 0.3% to 14,183.75, the CAC-40 index added 0.4% to 6,581.42 and the FTSE 100 index declined 0.5% to 7,336.80.
For the week, the DAX index increased 5.7%, the CAC-40 index added 3.4% and the FTSE index inched up 0.09%.
The yield on 10-year German Bunds increased to 2.14%, French bonds edged higher to 2.65%, UK Gilts advanced to 3.35% and Italian bonds inched up to 4.19%.
Europe Movers
Resource stocks gained after crude oil and natural prices edged up in international trading.
Antofagasta and Anglo American jumped between 4% and 5% following the advance in commodities prices after China eased some mobility restrictions.
Richemont SA jumped 17.8% after the company reported higher first-half results and struck an optimistic tone.
Revenue in the first-half ending in September rose 24% to
German Inflation Accelerates, UK GDP Shrank, Luxury Stocks Rise
Bridgette Randall
11 Nov, 2022
Frankfurt
European markets traded sideways after the UK GDP shrank less-than-expected and German inflation accelerated in October.
Consumer price index in Germany accelerated to 10.4% from 10.0% in September, Destatis reported today.
The estimate confirmed the flash estimate released a few days ago.
The UK GDP shrank in the third quarter, said the Office for National Statistics on Friday. However, the pace of decline was smaller-than-expected 0.5%.
The weakness in the service sector dragged the GDP down 0.2% in the September quarter from the previous quarter, but the economy expanded 2.4% from a year ago.
High interest rates and inflation are expected to drag the economy into the longest recession since the record keeping began.
The Bank of England has estimated the economy to shrink in the second half of 2022 and the weakness to persist in 2023 and 2024.
The DAX index increased 0.3% to 14,183.75, the CAC-40 index added 0.4% to 6,581.42 and the FTSE 100 index declined 0.5% to 7,336.80.
For the week, the DAX index increased 5.7%, the CAC-40 index added 3.4% and the FTSE index inched up 0.09%.
The yield on 10-year German Bunds increased to 2.14%, French bonds edged higher to 2.65%, UK Gilts advanced to 3.35% and Italian bonds inched up to 4.19%.
China Eases Restrictions But Warns of Rising Infections
Energy prices rose after China eased some of the coronavirus-linked stringent mobility restrictions.
China, a day after top officials reiterated the need for stringent lockdowns, suggested improvement to current rules.
The revised rules trimmed the quarantine requirements to five days from seven, cut PCR test to one from two prior to 48 hours of air travel and said it will crack down on arbitrary lockdowns and punish responsible officials.
The National Health Commission also warned that infections are likely to spread with the arrival of winter and virus mutation.
Chinese stocks rose and energy prices advanced after Guangdong province immediately implemented revised mobility restrictions.
Brent crude oil increased $1.78 to $95.38 a barrel but TTF natural gas futures plunged 13% to 98.72 euros MWh.
Gold edged up 0.4% to $1,764.34 an ounce and silver fell 17 cents to $21.50 an ounce. Copper jumped 3.8% to $3.95 a pound.
Europe Movers
Resource stocks gained after crude oil and natural prices edged up in international trading.
Antofagasta and Anglo American jumped between 4% and 5% following the advance in commodities prices after China eased some mobility restrictions.
Richemont SA jumped 17.8% after the company reported higher first-half results and struck an optimistic tone.
Revenue in the first-half ending in September rose 24% to
FTX, cryptocurrency exchange once valued at $32 billion, filed for bankruptcy and CEO San Bankman-Fried resigned.
11 Nov, 2022
Oil Jumps After China Eases Mobility Restrictions, FTX Files Bankruptcy
Barry Adams
11 Nov, 2022
New York City
Stocks on Wall Street struggled a day after benchmark indexes soared the most in one-day in two years.
Major averages are trending lower but still set to rise between 5% and 6%% for the week after October inflation cooled.
The S&P 500 index declined a fraction in early volatile trading and the Nasdaq Composite index rose 0.4% to 11,160.58.
Mood on Wall Street was also cautious after the largest cryptocurrency exchange FTX filed for bankruptcy protection and CEO Sam Bankman-Fried resigned.
The cryptocurrency exchange is also facing investigations from the U.S. Department of Justice and the Securities and Exchange Commission.
The company is also alleged to have dipped into the customer accounts and used the assets as collateral for related party transactions.
China Eases Restrictions But Warns of Rising Infections
Energy prices rose after China eased some of the coronavirus-linked stringent mobility restrictions.
China, a day after top officials reiterated the need for stringent lockdowns, suggested improvement to current rules.
The revised rules trimmed the quarantine requirements to five days from seven, cut PCR test to one from two prior to 48 hours of air travel and said it will crack down on arbitrary lockdowns and punish responsible officials.
The National Health Commission also warned that infections are likely to spread with the arrival of winter and virus mutation.
Chinese stocks rose and energy prices advanced after Guangdong province immediately implemented revised mobility restrictions.
Crude oil increased $3.50 to $89.48 a barrel and natural gas futures rose 8 cents to $6.32 a thermal unit.
Gold edged up 0.3% to $1,760.34 an ounce and silver fell 22 cents to $21.45 an ounce.
Stable Treasury Yields
The yield on 2-year Treasury notes declined to 4.33%, 10-year Treasury notes eased to 3.83% and 30-year Treasury bonds fell to 4.08%.
U.S. Movers
Beazer Homes added 1.7% to $12.53 after the homebuilder reported revenue and earnings ahead of expectations in its latest quarter.
Rising home prices and improving gross margin drove the better performance in the quarter.
Homebuilding gross margin increased 330 basis points to 22.6% and average home price increased 22% to $510,700.
Doximity Inc soared 20% to $31.60 after the online platform for healthcare professionals reported better-than-expected quarterly results.
For the December quarter, the company guided revenue between $110.7 million and $111.7 million.
The company also launched a $70 million stock repurchase plan to be executed over the next twelve months.
Duolingo Inc fell 3.3% to $83.30 and the online language platform operator reported a smaller loss and lifted its annual outlook.
Monthly active users increased 35% to 56.1 million, daily active users rose 51% to 14.9 million and paid subscribers jumped 68% to 3.7 million.
The company estimated fourth quarter revenue between $98 million and $101 million and full-year 2022 revenue between $364 million and $367 million.
LegalZoom.com, Inc soared 15% to $10.92 and the online legal documents and advice provider reported smaller-than-expected quarterly loss and lifted its full-year revenue estimate.
The company guided fourth quarter revenue between $145 million and $147 million and full-year 2022 revenue between $617 million and $619 million.
US Bancorp fell 0.3% to $44.75 and Warren Buffett-controlled Berkshire Hathaway lowered its stake in the bank to 53 million shares of 3.6%, according to a regulatory filing with the SEC.
Berkshire has sold 91 million shares in the year so far and slashed its holding in the financial services company.
Wynn Resorts added 3.2% to $74.58 and Las Vegas Sands added 4.3% to $43.85 after China loosened Covid-19 restrictions.
Both companies have a significant presence in Macau, China, a tourist and travel destination for Chinese citizens.
European Markets Advance, UK GDP Shrank
European markets traded sideways after the UK GDP shrank less-than-expected.
The weakness in the service sector dragged the GDP down 0.2% in the September quarter from the previous quarter, but the economy expanded 2.4% from a year ago.
High interest rates and inflation are expected to drag the economy into the longest recession since the record keeping began.
The Bank of England has estimated the economy to shrink in the second half of 2022 and the weakness to persist in 2023 and 2024.
The DAX index increased 0.3% to 14,183.75, the CAC-40 index added 0.4% to 6,581.42 and the FTSE 100 index declined 0.5% to 7,336.80.
The yield on 10-year German Bunds increased to 2.14%, French bonds edged higher to 2.65%, UK Gilts advanced to 3.35% and Italian bonds inched up to 4.19%.
Moves: Beazer Homes, Doximity, Duolingo, LegalZoom, US Bancorp, Wynn Resorts
Scott Peters
11 Nov, 2022
New York City
Beazer Homes added 1.7% to $12.53 after the homebuilder reported revenue and earnings ahead of expectations in its latest quarter.
Total revenue in the fiscal fourth quarter increased to $827.6 million from $590.9 million a year ago.
Net income in the period rose to $86.8 million from $43.8 million and diluted earnings per share increased to $2.82 from $1.57 a year ago.
Rising home prices and improving gross margin drove the better performance in the quarter.
Homebuilding gross margin increased 330 basis points to 22.6% and average home price increased 22% to $510,700.
Doximity Inc soared 20% to $31.60 after the online platform for healthcare professionals reported better-than-expected quarterly results.
Revenue in the fiscal second quarter ending in September increased 29% to $102.2 million from $79.4 million a year ago.
Net income in the quarter declined to $26.3 million from $36.1 million and diluted earnings per share dropped to 12 cents from 17 cents a year ago.
For the December quarter, the company guided revenue between $110.7 million and $111.7 million.
The company also launched a $70 million stock repurchase plan to be executed over the next twelve months.
Duolingo Inc fell 3.3% to $83.30 and the online language platform operator reported a smaller loss and lifted its annual outlook.
Revenue in the September quarter increased 51% to $96.1 million from $63.6 million a year ago.
Net loss in the third quarter shrank to $18.5 million from $28.9 million and diluted loss per share declined to 46 cents from 98 cents a a year ago.
Monthly active users increased 35% to 56.1 million, daily active users rose 51% to 14.9 million and paid subscribers jumped 68% to 3.7 million.
The company estimated fourth quarter revenue between $98 million and $101 million and full-year 2022 revenue between $364 million and $367 million.
LegalZoom.com, Inc soared 15% to $10.92 and the online legal documents and advice provider reported smaller-than-expected quarterly loss and lifted its full-year revenue estimate.
Revenue in the third quarter increased 4% to $154 million from $148 million a year ago.
Net loss in the third quarter shrank to $10.1 million from $39.7 million and diluted loss per share fell to 5 cents from 20 cents a year ago.
The company guided fourth quarter revenue between $145 million and $147 million and full-year 2022 revenue between $617 million and $619 million.
US Bancorp fell 0.3% to $44.75 and Warren Buffett-controlled Berkshire Hathaway lowered its stake in the bank to 53 million shares of 3.6%, according to a regulatory filing with the SEC.
Berkshire has sold 91 million shares in the year so far and slashed its holding in the financial services company.
Wynn Resorts added 3.2% to $74.58 and Las Vegas Sands added 4.3% to $43.85 after China loosened Covid-19 restrictions.
Both companies have a significant presence in Macau, China, a tourist and travel destination for Chinese citizens.