Market Update
Crude oil jumped 5% on the expectations that China may relax coronavirus restrictions in the weeks ahead.
05 Nov, 2022
Rate Path and Recession Worries Dominate Volatile Global Markets
Barry Adams
04 Nov, 2022
New York City
Benchmark indexes advanced on the final day of a gloomy week when investors confronted labor market data, interest rate hikes and a batch of corporate earnings.
At least for today, stocks rebounded after nonfarm payrolls expanded in October and wages rose in October, highlighting the resilience of the U.S. economy.
Stocks jumped in early trading after employers expanded payrolls in October and bond yields traded near 15-year highs.
Nonfarm payrolls increased 261,000 in October from the revised 315,000 in September, according to the monthly jobs report from the U.S. Bureau of Labor Statistics Friday.
Healthcare, professional and technical services and manufacturing expanded led the payroll expansion in the month.
A separate survey by the department showed unemployment rate increased to 3.7% in October from a 29-month low of 3.5% in September,
The stronger-than-expected labor market data also supported the Fed's case of the need to cool down the economy and lift key lending rates.
The yield on 2-year Treasury notes increased to 4.66%, 10-year Treasury note jumped to 4.17% and 30-year Treasury bonds edged up to 4.26%.
Resources stocks led the gainers after oil jumped more than 4% and gold advanced from the recent lows.
The S&P 500 index closed up 1.4% to 3,770.55 and the Nasdaq Composite index advanced 1.3% to 10,475.26.
For the week, the S&P 500 index declined 3.3% and the Nasdaq Composite index dropped 6.0%.
Crude oil jumped $4.50 t0 $92.45 a barrel and natural gas increased 51 cents to $6.48 a thermal unit.
Gold jumped 3.1% or $51.66 to 1,680.59 an ounce and silver soared 6.2% or $1.37 to $20.86 an ounce.
U.S. Stock Movers
Carvana Company plunged 37.2% to $9.01 after the online used car retailer said total sales fell 3% and vehicle sales dropped 8% and net loss margin increased to 15%.
DraftKings Inc plunged 26.7% to $11.49 after the online sports betting company reported a quarterly loss that was smaller-than-expected by some analysts.
DraftKings plunged after the company said that the company's business is vulnerable to an economic downturn and may be negatively impacted if consumer spending weakens.
DoorDash Inc rose 6.30% to $50.66 after the local delivery services provider said September quarter orders rose 27% to 439 million, gross order volume jumped 30% to $13.5 billion.
Third quarter revenue increased 33% to $1.7 billion from $1.28 billion a year ago.
Net loss jumped to $295 million from $101 million and diluted loss per share rose to 77 cents from 30 cents a year ago.
Funko Inc plunged 57.3% to $8.32 after the maker of licensed collectibles reported weaker-than-estimated third quarter results and guided a loss in the fourth quarter.
Net sales in the third quarter increased 36.6% to $365.6 million and net income dropped 39.3% to $11.1 million from a year ago.
Diluted earnings per share declined to 19 cents from 28 cents a year ago.
The company guided full-year 2022 revenue between $1.29 billion and $1.33 billion and guided fourth quarter gross margin to decline because of seasonality and inventory management.
Starbucks Corporation soared 8.2% to $91.66 after the coffee chain said fiscal fourth quarter results were negatively impacted by travel restrictions in China but North America comparable sales jumped 11%.
September quarter revenue increased 3% to $8.4 billion from $8.1 billion a year ago.
Net income dropped to $878.3 million from $1.764.6 million and diluted earnings per share declined to 76 cents from $1.49 a year ago.
In the quarter, the company opened 763 net new stores around the world totaling 35,711 stores.
North America sales rose 6%, or 15% adjusted for an extra week in the previous year, to $6.1 billion on 11% increase in comparable store sales.
Twilio Inc plunged 34.6% to $42.74 after the third quarter revenue growth slowed to 33% and the company guided fourth quarter revenue growth between 18% and 19%.
Cloud computing stocks took a beating on the worries that the industry maybe slowing faster-than-estimated.
ZoomInfo Technologies declined 6.3%, Cloudflare plunged 18%, Bill.com fell 8.4% and ServiceNow declined 6.5%.
European Markets Extend Weekly Gains
European markets soared after investors focused on domestic earnings and shrugged off worries of rising rates, supply chain difficulties and looming recession.
The DAX index soared 3.1% to 13,528.64, the CAC-40 index advanced 3.5% to 6,459.83 and the FTSE 100 index increased 2.5% to 7,363.28.
The euro held steady at 99.29 U.S. cents and the British pound traded near $1.13.
Brent crude gained $3.40 to $98.14 and TTF natural gas rose 4.8% to 119.40 euros a MWh.
Energy and metals stocks led the gainers after crude oil prices jumped 4% and natural gas prices soared 6%.
Anglo America, Antofagasta, BHP Group and Rio Tinto led gainers and soared between 5% and 10%.
Societe Generale SA jumped as much as 5% after the French bank reported weaker third quarter profit on rising revenues despite the challenging economic environment.
Telefonica SA increased 3% to
Movers: Carvana, Cinemark, Coinbase, DraftKings, DoorDash, Expedia, Funk, Starbucks, Twilio
Scott Peters
04 Nov, 2022
New York City
Carvana Company plunged 37.2% to $9.01 after the online used car retailer said total sales fell 3% and vehicle sales dropped 8% and net loss margin increased to 15%.
Cinemark Holdings, Inc rose 9,8% to $11.65 after the operator of movie theater chains reported earnings ahead of expectations.
Third quarter revenue increased 50% to $650.4 million from $434.8 million from a year ago.
Net loss in the quarter shrank to $24.5 million from $77.8 million and diluted loss per share declined to 20 cents from 65 cents a year ago.
The company operates a network of 5,835 movie screens, and the company has commitments to open two new theatres and 19 screens during the rest of 2022 and seven new theatres and 55 screens in the coming years.
Coinbase Global Inc rose 4.4% to $58.32 and the cryptocurrency exchange swung to a quarterly loss of $545 million after revenue plunged more than 50% to $590 million after transactions declined.
DraftKings Inc plunged 26.7% to $11.49 after the online sports betting company reported a quarterly loss that was smaller-than-expected by some analysts.
DraftKings plunged after the company said that the company's business is vulnerable to an economic downturn and may be negatively impacted if consumer spending weakens.
DoorDash Inc rose 6.30% to $50.66 after the local delivery services provider said September quarter orders rose 27% to 439 million, gross order volume jumped 30% to $13.5 billion.
Third quarter revenue increased 33% to $1.7 billion from $1.28 billion a year ago.
Net loss jumped to $295 million from $101 million and diluted loss per share rose to 77 cents from 30 cents a year ago.
Expedia Group gained 5.9% to $92.81 and the online travel services provider said third quarter revenues increased 22% to $3.6 billion and net income advanced 333% to $482 million or $2.98 a diluted share.
In the quarter, room-nights booked increased 22% to 81.6 million and gross bookings jumped 28% to $24 billion.
The company said it resumed stock repurchase and has completed the buyback through October of 2 million shares for $200 million.
Funko Inc plunged 57.3% to $8.32 after the maker of licensed collectibles reported weaker-than-estimated third quarter results and guided a loss in the fourth quarter.
Net sales in the third quarter increased 36.6% to $365.6 million and net income dropped 39.3% to $11.1 million from a year ago.
Diluted earnings per share declined to 19 cents from 28 cents a year ago.
The company guided full-year 2022 revenue between $1.29 billion and $1.33 billion and guided fourth quarter gross margin to decline because of seasonality and inventory management.
Starbucks Corporation soared 8.2% to $91.66 after the coffee chain said fiscal fourth quarter results were negatively impacted by travel restrictions in China but North America comparable sales jumped 11%.
September quarter revenue increased 3% to $8.4 billion from $8.1 billion a year ago.
Net income dropped to $878.3 million from $1.764.6 million and diluted earnings per share declined to 76 cents from $1.49 a year ago.
In the quarter, the company opened 763 net new stores around the world totaling 35,711 stores.
North America sales rose 6%, or 15% adjusted for an extra week in the previous year, to $6.1 billion on 11% increase in comparable store sales.
Twilio Inc plunged 34.6% to $42.74 after the third quarter revenue growth slowed to 33% and the company guided fourth quarter revenue growth between 18% and 19%.
Cloud computing stocks took a beating on the worries that the industry maybe slowing faster-than-estimated.
ZoomInfo Technologies declined 6.3%, Cloudflare plunged 18%, Bill.com fell 8.4% and ServiceNow declined 6.5%.
U.S. Labor Market Expanded In October by 261,000
Brian Turner
04 Nov, 2022
New York City
Nonfarm payrolls increased 261,000 in October from the revised 315,000 in September, according to the monthly jobs report from the U.S. Bureau of Labor Statistics on Friday.
Healthcare, professional and technical services and manufacturing expanded led the payroll expansion in the month.
In October, employment in health care rose by 53,000, professional and technical services added 43,000 and manufacturing by 32,000.
Employment in leisure and hospitality continued to expand in October with 35,000 net job additions.
In October, average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, or 0.4%, to $32.58.
On an annual basis, average hourly earnings increased 4.7%.
The August total nonfarm payroll employment was revised down by 23,000, from the net gain of 315,000 to 292,000, and the change for September was revised up by 52,000, from 263,000 to 315,000.
With these revisions, employment gains in August and September combined were 29,000 higher than previously reported.
A separate survey by the department showed unemployment rate increased to 3.7% in October from a 29-month low of 3.5% in September,
Broader Averages Retained Upward Bias After Jobs Report
Barry Adams
04 Nov, 2022
New York City
Stocks jumped in early trading after employers expanded payrolls in October but bond yields traded near recent highs.
Non-farm payrolls increased 261,000 in October from the revised 315,000 in September, according to the monthly jobs report from the U.S. Bureau of Labor Statistics Friday.
Healthcare, professional and technical services and manufacturing expanded led the payroll expansion in the month.
A separate survey by the department showed unemployment rate increased to 3.7% in October from a 29-month low of 3.5% in September,
Resources stocks led the gainers after oil jumped more than 4% and gold advanced from the recent lows.
The S&P 500 index traded down 0.2% to 3,711.96 and the Nasdaq Composite index fell 0.4% to 10,297.27.
Crude oil increased $3.50 t0 $91.65 a barrel and natural gas eased 2 cents to $5.98 a thermal unit.
Gold jumped 2.6% or $43.31 to !,672.24 an ounce and silver soared 6.2% or $1.20 to $20.66 an ounce.
The yield on 2-year Treasury notes increased to 4.67%, 10-year Treasury note jumped to 4.13% and 30-year Treasury bonds edged up to 4.20%.
European Markets Soar On Earnings
European markets soared after investors focused on domestic earnings and shrugged off worries of rising rates, supply chain difficulties and looming recession.
The DAX index soared 3.1% to 13,528.64, the CAC-40 index advanced 3.5% to 6,459.83 and the FTSE 100 index increased 2.5% to 7,363.28.
The euro held steady at 99.29 U.S. cents and the British pound traded near $1.13.
Brent crude gained $3.40 to $98.14 and TTF natural gas rose 4.8% to 119.40 euros a MWh.
Energy and metals stocks led the gainers after crude oil prices jumped 4% and natural gas prices soared 6%.
Anglo America, Antofagasta, BHP Group and Rio Tinto led gainers and soared between 5% and 10%.
Societe Generale SA jumped as much as 5% after the French bank reported weaker third quarter profit on rising revenues despite the challenging economic environment.
Telefonica SA increased 3% to
European Markets Extend Weekly Gains
Bridgette Randall
04 Nov, 2022
Frankfurt
European markets soared after investors focused on domestic earnings and shrugged off worries of rising rates, supply chain difficulties and looming recession.
The DAX index soared 3.1% to 13,528.64, the CAC-40 index advanced 3.5% to 6,459.83 and the FTSE 100 index increased 2.5% to 7,363.28.
For the week, the DAX index closed up 1.9%, the CAC-40 added 2.5% and the FTSE 100 index soared 4.3%.
The euro held steady at 99.29 U.S. cents and the British pound traded near $1.13.
Brent crude gained $3.40 to $98.14 and TTF natural gas rose 4.8% to 119.40 euros a MWh.
Energy and metals stocks led the gainers after crude oil prices jumped 4% and natural gas prices soared 6%.
Anglo America, Antofagasta, BHP Group and Rio Tinto led gainers and soared between 5% and 10%.
Societe Generale SA jumped as much as 5% after the French bank reported weaker third quarter profit on rising revenues despite the challenging economic environment.
Telefonica SA increased 3% to
Brazil: Boom, Bust, Bolsonaro and Beyond
Anand Sheth
03 Nov, 2022
New York City
Even by the standards of Brazil, the last two decades of boom to bust to boom have been anything but unusual.
The third largest democracy in the world, the fifth largest nation by size, and the tenth largest economy is simply too large to be ignored.
Brazil, the seventh most populous nation, has everything that a nation needs to be a successful and wealthy and even a superpower.
The tropical nation is endowed with natural resources, mild weather, young population and away from a world of conflicts, yet the vast nation has struggled to rise above internal divisions and make a mark on the world or even in the region.
With 215 million people, Brazil has one of the most unequal societies in the world, one of the largest exporters of food has 33 million suffering from hunger and many lack access to higher education and clean and healthy living.
With less than 3% of the world
Expedia said third quarter revenues increased 22% to $3.6 billion and net income advanced 333% to $482 million or $2.98 a diluted share.
Scott Peters
03 Nov, 2022
New York City
Doordash said Sept quarter orders rose 27% to 439 million, gross order volume jumped 30% to $13.5 billion and revenues gained 33% to $1.7 billion.
Scott Peters
03 Nov, 2022
New York City
Carvana plunged 8% after the online used car retailer said total sales fell 3% and vehicle sales dropped 8% and net loss margin increased to 15%.
Brian Turner
03 Nov, 2022
New York City
Twilio plunged 11% after third quarter revenue growth slowed to 33% and the company guided fourth quarter revenue growth between 18% and 19%.
Scott Peters
03 Nov, 2022
New York City