Market Update
Tech Stocks Lead 3% Sell-off After Jobs Report
Barry Adams
29 Sep, 2022
New York City
Stocks fell sharply and major averages reversed yesterday's gains after recession and rate-hike worries resurfaced.
The stronger-than-anticipated jobless report reinforced the strength in the labor market and provided one more signal to the Fed in continuing its campaign to lift rates.
Seasonally adjusted weekly initial jobless claims declined 16,000 to 193,000 in the week ending September 24, the Department of Labor said Thursday.
Unadjusted initial claims fell 12,642 to 156,060 led by significant declines in Michigan (5,674), New Jersey (1,521) and New York (1,266).
The 4-week moving average declined 8,750 to 207,000.
The S&P 500 index fell 1.9% to 3,647.40 and the Nasdaq Composite index dropped 2.9% to 10,721.95.
Crude oil rose 23 cents to $82.28 and natural gas decreased 19 cents to $6.77 a thermal unit.
The yield on 2-year Treasury notes increased to 4.21%, on 10-year Treasury notes inched up to 3.80% and 30-year bonds advanced to 3.75%.
European Markets Resume Slide On Recession Worries
In Europe, benchmark indexes resumed their declines after recession worries gripped the market sentiment.
The DAX index declined 1.6% to 11,995.17, the CAC-40 index dropped 1.44% to 5,681.94 and the FTSE 100 index fell 1.2% to 6,919.76.
Brent crude rose 80 cents to $90.111 a barrel and TTF natural gas futures plunged 9.9% to 186.50 megawatt per hour.
The euro inched higher to 97.16 U.S. cents and the British pound rebounded slightly to $1.093.
Hong Kong Extend Losses Ahead of Week of Holiday
In Asia, stocks in China benchmark indexes ended flat ahead of 7-day Golden Week holidays between October 1 and 7.
The Shanghai Composite Index eased 0.1% lower to 3,041.20, erasing most of the early gains in the day.
The Hang Seng Index ended down 0.5% to 17,165.87, after dropping to the low last seen in October 2011.
The Hang Seng index has lost about 40% in the last five years.
In Tokyo, the Nikkei 225 index gained 1.0% to 26,422.05 and the broader Topix increased 0.7% to 1,868.80.
Pharmaceuticals and resource sector stocks led the gainers.
The Japanese yen held steady at 144.52 to a dollar.
Benchmark indexes in Mumbai turned lower ahead of the rate decision from the Reserve Bank of India on Friday.
The RBI is expected to lift the key lending rate by at least 40 basis points and stem the slide in the rupee.
The Indian rupee dropped to a new low of 81.80 to a dollar.
Major Averages Rebound After Week of Losses, Lithium Climbs Higher
Barry Adams
28 Sep, 2022
New York City
Tech stocks led the rebound on Wall Street and major averages snapped 6-day losing streak.
The U.S. dollar continued its advance against all major currencies and the euro dropped to a new record 2-decade low and the British pound fell to a new 4-decade low.
Energy and tech stocks led the gainers after crude oil rebounded from 9-month low and bond yields edged lower.
The S&P 500 index increased 1.97% to 3,719.04 and the Nasdaq Composite index jumped 2.05% to 11,051.65.
Bond market retreated from its recent highs after rising sharply in the last six sessions in a row.
Investors also noticed the strength of the U.S. dollar, lifting the hopes that the Federal Reserve may be forced to pause before resuming its advertised rate hikes.
Bond Yields Turn Lower
U.S. Treasury 10-year bond yield turned lower after rising as high as 4%, the level not seen since 2008.
The yield on 2-year Treasury notes declined to 4.12%, 10-year Treasury notes fell to 3.73% and 30-year bonds edged down to 3.68%.
Commodities Rebound
Crude oil increased $3.30 or 4.3% to $81.83 a barrel and natural gas rose 21 cents to $6.85 a thermal unit.
Gold jumped 1.9% to $1,659.12 an ounce and silver increased 2.9% to $18.19 an ounce and copper gained 1.9% to $3.38 a pound.
For the year so far, gold is down 3.8%, silver has fallen 12.1% and copper has lost 19.3%.
Lithium gained 3.1% to 510,500 yuan a ton in Shanghai trading, up 190% in the year so far.
Lithium prices continue to advance on the expectations of a rise in demand for electric vehicles in China and the U.S. after governments in both countries extended tax-breaks for purchases.
Stock Movers
Amazon, Tesla, Microsoft, Meta and Alibaba.com jumped between 1% and 4%.
Apple Inc declined 1.5% to $149.56 after Bloomberg News reported that the company canceled plans to increase production of iPhone after demand fell short of expectations.
BlackBerry Ltd fell 2.2% to $4.99 after the company reported revenue in the fiscal second quarter 2023 ending in August declined to $168 million from $175 million a year ago.
Net loss in the quarter declined to $54 million from $1181 million a year ago and diluted loss per share was 9 cents from 25 cents a year ago.
Cal-Maine Foods, Inc declined 0.3% to $60.52 after the company reported revenue in the first quarter fiscal year 2023 ending in August surged 103% to $658.3 million.
The company swung to net income of $125.1 million from a loss of $18.02 million and diluted earnings per share were $2.57 compared to a loss of 37 cents a year ago.
Conventional egg net average selling price per dozen increased to $2.368 from $0.99 a year ago, and both conventional and specialty egg revenue reached record levels for the first quarter of fiscal 2023.
The company sold 275.3 million compared to 254.6 million dozen eggs a year ago.
DocuSign Inc increased 3.9% to $54.63 after the company announced a restructuring plan and said it plans to cut as many as 9% of its staff.
The restructuring plan is estimated to cost between $30 million and $40 million, consisting primarily of employee transition cash expenses and are expected to be accounted for the fiscal year 2023 third and fourth quarters.
Paychex, Inc increased 3.1% to $116.79 after the payroll service provider reported revenue in the fiscal first quarter 2023 ending in August rose 11% to $1.2 billion from $1.08 billion a year ago.
Net income in the quarter rose 14% to $379.2 million from $333.6 million and diluted earnings per share rose to $1.05 from 92 cents a year ago.
The company reiterated its total revenue growth guidance between 7% and 8% and revised higher its adjusted diluted earnings per share growth in the range between 11% and 12% from the previous estimate between 9% and 10%.
Thor Industries, Inc rose 3.9% to $74.60 after the recreational vehicle maker reported revenue in the fiscal fourth quarter rose 6.4% to $3.8 billion from $3.59 billion a year ago.
The increase in sales was mostly driven by higher prices offsetting a decrease in unit sales.
Net income in the quarter increased to $280.9 million from $230.0 million and diluted earnings per share rose to $5.15 from $4.12 a year ago.
Consolidated sales in the year increased 32.4% to $16.3 billion and net income rose to $1.14 billion from $660.8 million and diluted earnings per share increased to $20.59 from $11.85.
Dollar Strength Whipsaws Euro and Pound
European markets rebounded from early losses and turned higher following the U.S. averages.
The Bank of England was forced to intervene and conduct a temporary bond purchase program to shore up the weakening pound.
The BoE said that the "temporary and targeted" purchase is carried out to solve a specific problem in the long-dated government bond and the step is fully indemnified by the treasury department.
The central bank's intervention arrested the decline in the pound and stabilized the bond yield for now but traders are anticipating the currency to resume its slide.
The U.K. government also faced criticism from the International Monetary Fund after the multilateral agency urged the government to reconsider unfunded tax-cuts and fiscal incentives.
The euro inched lower to 95.56 U.S. cents and the British pound fell to $1.07.
The yields on 10-year U.K. bonds held at 4.04%, the German bunds at 2.16%, French bonds at 2.72% and the Italian bonds 4.68%.
The spread between the Italian and German bonds continued to widen after the latest election results on Monday.
German market indexes were also under pressure after the consumer confidence index plunged to -42.5 in October from the revised -36.8 level in September, according to the survey released by the research group GfK Wednesday.
The French consumer confidence index declined to 79.0 in September from 82.0 in August, the statistical office Insee said Wednesday.
The DAX index inched up 0.4% to 12,183.28, the CAC-40 index gained 0.2% to 5,765.01 and the FTSE 100 index advanced 0.3% 7,005.39.
Porsche IPO
Volkswagen Group priced initial public offering of Porsche Automobil Holding SE at the top end of the pricing range at 82.50 euros a share, valuing the sports car maker above 75 billion euros.
Movers: Apple, BlackBerry, Cal-Maine, DocuSign, Paychex, Thor
Barry Adams
28 Sep, 2022
New York City
Stocks rebounded in early trading and Treasury yields inched lower on the expectations that the Federal Reserve may pause.
The U.S. dollar continued its advance against all major currencies and the euro dropped to a new record 2-decade low and the British pound fell to a new 4-decade low.
Energy and tech stocks led the gainers after crude oil rebounded from 9-month low and bond yields edged lower.
The S&P 500 index increased 2.1% to 3,721.24 and the Nasdaq Composite index rose 2.1% to 11,054.15.
Amazon, Tesla, Microsoft and Alibaba.com jumped between 1% and 1.2%.
Apple Inc declined 2.5% to $147.86 after Bloomberg News reported that the company canceled plans to increase production of iPhone after demand fell short of expectations.
BlackBerry Ltd fell 2.2% to $4.99 after the company reported revenue in the fiscal second quarter 2023 ending in August declined to $168 million from $175 million a year ago.
Net loss in the quarter declined to $54 million from $1181 million a year ago and diluted loss per share was 9 cents from 25 cents a year ago.
Cal-Maine Foods, Inc declined 0.3% to $60.52 after the company reported revenue in the first quarter fiscal year 2023 ending in August surged 103% to $658.3 million.
The company swung to net income of $125.1 million from a loss of $18.02 million and diluted earnings per share were $2.57 compared to a loss of 37 cents a year ago.
Conventional egg net average selling price per dozen increased to $2.368 from $0.99 a year ago, and both conventional and specialty egg revenue reached record levels for the first quarter of fiscal 2023.
The company sold 275.3 million compared to 254.6 million dozen eggs a year ago.
DocuSign Inc increased 3.9% to $54.63 after the company announced a restructuring plan and said it plans to cut as many as 9% of its staff.
The restructuring plan is estimated to cost between $30 million and $40 million, consisting primarily of employee transition cash expenses and are expected to be accounted for the fiscal year 2023 third and fourth quarters.
Paychex, Inc increased 3.1% to $116.79 after the payroll service provider reported revenue in the fiscal first quarter 2023 ending in August rose 11% to $1.2 billion from $1.08 billion a year ago.
Net income in the quarter rose 14% to $379.2 million from $333.6 million and diluted earnings per share rose to $1.05 from 92 cents a year ago.
The company reiterated its total revenue growth guidance between 7% and 8% and revised higher its adjusted diluted earnings per share growth in the range between 11% and 12% from the previous estimate between 9% and 10%.
Thor Industries, Inc rose 3.9% to $74.60 after the recreational vehicle maker reported revenue in the fiscal fourth quarter rose 6.4% to $3.8 billion from $3.59 billion a year ago.
The increase in sales was mostly driven by higher prices offsetting a decrease in unit sales.
Net income in the quarter increased to $280.9 million from $230.0 million and diluted earnings per share rose to $5.15 from $4.12 a year ago.
Consolidated sales in the year increased 32.4% to $16.3 billion and net income rose to $1.14 billion from $660.8 million and diluted earnings per share increased to $20.59 from $11.85.
British Pound and Euro Test New Lows, Forcing BoE to Intervene
Bridgette Randall
28 Sep, 2022
Frankfurt
European markets rebounded from early losses and turned higher following the U.S. averages.
The Bank of England was forced to intervene and conduct a temporary bond purchase program to shore up the weakening pound.
The BoE said that the "temporary and targeted" purchase is carried out to solve a specific problem in the long-dated government bond and the step is fully indemnified by the treasury department.
The central bank's intervention arrested the decline in the pound and stabilized the bond yield for now but traders are anticipating the currency to resume its slide.
The U.K. government also faced criticism from the International Monetary Fund after the multilateral agency urged the government to reconsider unfunded tax-cuts and fiscal incentives.
The euro inched lower to 95.56 U.S. cents and the British pound fell to $1.07.
The yields on 10-year U.K. bonds held at 4.04%, the German bunds at 2.16%, French bonds at 2.72% and the Italian bonds 4.68%.
The spread between the Italian and German bonds continued to widen after the latest election results on Monday.
German market indexes were also under pressure after the consumer confidence index plunged to -42.5 in October from the revised -36.8 level in September, according to the survey released by the research group GfK Wednesday.
The French consumer confidence index declined to 79.0 in September from 82.0 in August, the statistical office Insee said Wednesday.
The DAX index inched up 0.4% to 12,183.28, the CAC-40 index gained 0.2% to 5,765.01 and the FTSE 100 index advanced 0.3% 7,005.39.
In commodities trading, crude oil and natural gas prices rebounded from the lows seen last week.
Brent crude oil jumped 3% to $88.88 a barrel and TTF natural gas futures soared 11.3% to 217.19 euros a megawatt hour.
Gold jumped 2.0% to $1,660.32 an ounce and silver increased 2.9% to $18.19 an ounce and copper gained 1.9% to $3.38 a pound.
Stocks Rebound as Jittery Investors Adjust to Rising Rates and Stronger Dollar
Barry Adams
28 Sep, 2022
New York City
Stocks rebounded in early trading and Treasury yields inched lower on the expectations that the Federal Reserve may pause.
The U.S. dollar continued its advance against all major currencies and the euro dropped to a new record 2-decade low and the British pound fell to a new 4-decade low.
Energy and tech stocks led the gainers after crude oil rebounded from 9-month low and bond yields edged lower.
The S&P 500 index increased 0.95% to 3,682.90 and the Nasdaq Composite index rose 0.8% to 10,941.35.
Amazon, Tesla, Microsoft and Alibaba.com jumped between 1% and 1.2%.
Apple Inc declined 3.3% after Bloomberg News reported that the company canceled plans to increase production of iPhone after demand fell short of expectations.
Crude oil increased $2.20 or 2.8% to $80.73 a barrel and natural gas fell 7 cents to $6.56 a thermal unit.
The yield on 2-year Treasury notes declined to 4.15%, 10-year Treasury notes fell to 3.78% and 30-year bonds edged down to 3.69%.
European markets rebounded from early losses and turned higher following the U.S. averages.
The Bank of England was forced to intervene and conduct a temporary bond purchase program and shore up the weakening pound.
The central bank's intervention arrested the decline in the pound and stabilized the bond yield for now but traders are anticipating the currency to resume its slide.
The DAX index inched up 0.3% to 12,177.24, the CAC-40 index gained 0.2% to 5,763.22 and the FTSE 100 index advanced 0.3% 7,005.39.
The euro inched lower to 95.56 U.S. cents and the British pound fell to $1.07.
The yields on 10-year U.K. bonds held at 4.04%, the German bunds at 2.16%, French bonds at 2.72% and the Italian bonds 4.68%.
The spread between the Italian and German bonds continued to widen after the latest election results on Monday.
Cracker Barrel Quarterly Net Drops 8%
Brian Turner
27 Sep, 2022
New York City
Cracker Barrel Old Country Store, Inc rose 0.7% to $98.44 after the restaurant chain operator reported revenue in the fourth quarter ending on July 29th rose 5.9% to $830.4 million.
Comparable restaurant sales increased 6.1% and retail sales rose 3.0%.
The restaurant company also increased menu prices by 7.0% from a year ago.
Net income in the period decreased 8.0% to $33.4 million from $36.4 million and diluted earnings per share declined to $1.47 from $1.53 a year ago.
For the fiscal year, revenue rose $3.3 billion from $2.8 billion a year ago and net income plunged 48% to $131.8 million from $254.5 million a year ago.
Dividend and Stock Buy Back
The company announced that its Board of Directors declared a regular quarterly dividend of $1.30 a share.
Cracker Barrel paid $29.9 million in dividends and repurchased $58.1 million in shares for a total of $88.1 million in the fourth quarter and returned to shareholders a total $246.4 million during the full fiscal year.
The quarterly dividend is payable on November 8, 2022 to shareholders of record as of October 21, 2022.
Fiscal 2023 Outlook
The company guided total revenues to increase between 7% and 8% from the previous year, including 3 to 4 new namesake restaurants and between 15 to 20 Maple Street Biscuit Company units.
The restaurant company anticipates food and commodities prices to rise 8% and moderate sequentially every quarter.
Operating income is expected to rise between 8% and 10% and sequentially improve on a quarterly basis as the year progresses.
Capital expenditure is expected around $125 million, including $30 million for new store development.
S&P 500 Drifts to New 2022 Low, Treasury Yields Advance
Barry Adams
27 Sep, 2022
New York City
Early morning momentum dissipated after two hours of trading and major averages struggled to climb back into positive territory.
The U.S. Treasury 10-year yield rose to a high not seen at least in a decade as investors adjust to more rate hikes at the next two remaining meetings of the Fed's policymakers.
Tech stocks led the gainers on the hopes that the recent sell-off was overdone.
The S&P 500 index decreased 0.3% to 3,697.26 and extended losses to the sixth day in a row and the Nasdaq Composite index added 0.2% to 10,820.59.
The S&P 500 index is down 24% and the Nasdaq Composite index is below 31.6% in the year so far.
Tesla, Amazon, Apple, Microsoft and Visa gained between 0.5% and 2%.
Energy complex stocks also gained after crude oil rebounded 2%.
Exxon Mobil, Chevron, Hess Corp and Schlumberger added between 1% and 2%.
Crude oil gained $1.87 or 1.8% to $78.57 and natural gas decreased 18 cents to $6.71 a thermal unit.
The yield on 2-year Treasury notes edged down to 4.30%, 10-year Treasury notes inched higher to 3.973% and 30-year bonds increased to 3.85%.
Home builders dropped at least 1% following the rise in bond yields on the worries that mortgage rates may reach as high as 7% in the first-half of 2023.
U.S. Stock Movers
Energy stocks traded higher after crude oil rebounded 2% from its nine-month low to $78.69 a barrel.
Exxon Mobil, Hess Corp, Schlumberger and BP plc gained between 1% and 2%.
Cracker Barrel Old Country Store, Inc rose 0.7% to $98.44 after the restaurant chain operator reported revenue in the fourth quarter ending on July 29th rose 5.9% to $830.4 million.
Comparable restaurant sales increased 6.1% and retail sales rose 3.0%.
Net income in the period decreased 8.0% to $33.4 million from $36.4 million a year ago.
For the fiscal year, revenue rose $3.3 billion from $2.8 billion a year ago and net income plunged 48% to $131.8 million from $254.5 million a year ago.
Hertz Global Holdings Inc increased 2.4% to $16.20 after the rental car company announced a partnership with BP Plc's electric vehicle charging unit to place thousands of charging stations to power the company's fleet.
Jabil Inc increased 1.2% to 56.86 after the electronics manufacturing services provider said revenue in the quarter ending in August increased to $9 billion from $7.4 billion a year ago.
Net income increased to $315 million from $175 million and diluted earnings per share rose to $2.25 from $1.75 a year ago.
The company guided fiscal first quarter 2023 revenue to increase 9% from a year ago in the range between $9 billion and $9.6 billion and diluted earnings per share between $1.65 and $2.05.
The company also announced a buyback plan of up to $1 billion of its own stock over the next two years.
United Natural Foods Inc dropped 1.8% to $37.77 after the food wholesaler said revenue in the fourth quarter ending in July rose 8.0% to $7.3 billion.
Net income decreased 9.3% to $39 million from $43 million and diluted earnings per share fell to 63 cents from 69 cents a year ago.
For the fiscal year 2022, net sales increased 7.3% to $28.9 billion and net income increased 66.4% to $248 million from $149 million or $4.07 from $2.48 a year ago.
New Home Sales Soar In August
Single-family new home sales in August rose unexpectedly, according to the latest report from the U.S. Commerce Department Tuesday.
Home sales soared 28.8% to an annual rate 685,000 from the revised rate of 5.6% decline to 532,000 in July.
Home sales rate has been steadily declining since hitting the high of 839,000 in December 2021 and dropped to a low of 532,000 in July, matching the March 2016 data.
Median home price in August was $436,800, a decline of 6.3% from $466.300 but 8.0% higher from $404,300 a year ago.
Last week, the National Association of Realtors said existing home sales declined for the seventh month in a row in August but the pace of decline eased to 0.4% to 4.8 million from the previous month's fall of 5.7% to 4.82 million in July.
U.S. Durable Orders Fall in August
Seasonally adjusted durable goods orders fell on a monthly basis 0.2% in August following the revised 0.1% decline in July, the U.S. Census Bureau reported Tuesday.
The new orders not adjusted for seasonal factors surged 10.9% from a year ago.
On a monthly basis, excluding transportation, new orders increased 0.2% and excluding defense, new orders decreased 0.9%.
Europe Battles Rising Inflation, Rates and Dollar
In Europe, benchmark indexes advanced after investors searched for beaten down stocks in financials and energy sectors.
The DAX index increased 0.6% to 12,299.50, the CAC-40 index added 0.7% to 5,810.25 and the FTSE 100 index inched higher 0.1% to 7,028.24.
European markets lacked direction as investors worried that rapid rise in interest rates may dip the economy into a recession without killing the high inflation.
Natural gas prices rebounded in Amsterdam trading and the TTF gas price futures for the immediate month delivery increased as much as 12% before cooling to 8.5% gain to 188.34 euros a megawatt hour.
Brent crude oil also rebounded 2.9% from a nine-month low to $86.56 a barrel.
The U.S. dollar paused its year-long advance and the euro traded at 96.25 cents and the British pound edged up to $1.77.
The British pound is expected to test its parity with the U.S. dollar and the euro in the coming weeks as the island nation struggles with rising cost of energy imports, falling government revenues and rising sovereign borrowing.
Currency traders are anticipating the pound to drop as low as 93 U.S. cents if the Bank of England fails to intervene and lift interest rates in an emergency meeting.
Asian Markets Rebound from Extended Losses
Asian markets closed higher in a cautious trading as indexes in Japan and China rebounded but in India and Australia edged lower.
The Nikkei 225 index increased 0.5% to 26,571.87, while the broader Topix closed 0.5% higher at 1,873.01.
The Bank of Japan carried out an unscheduled operation to curb currency speculation and control the rapid decline in yen and Finance Minister Sunichi Suzuki cautioned currency traders to avoid speculative bets.
The People's Bank of China injected more liquidity to financial system and dampen the rising stress in dollar-renminbi trades.
The central bank added $24.7 billion in the repo market ahead of the end of the quarter.
The Sensex index in India edged down for the fifth day in a row and fell 37.70 points or 0.07% to 57,107.52 and the Nifty index 8.90 points or 0.05% to 17,007.40.
The Indian economy is one of the few bright spots in the world, most developed economies are heading to a recession and emerging markets are battling sharp currency devaluations.
A mix of global economic slowdown and elevated inflation has kept investors on edge in India, despite the encouraging domestic economic scenario.
Moreover, India is expected to benefit as more companies look to relocate from China and diversify their manufacturing base.
The Shanghai Composite Index jumped 1.4% to 3,093.86, while Hong Kong's Hang Seng Index gained fractionally to close at 17,860.31.
Movers: BlackBerry, Cal-Maine Foods, Cracker Barrel, Hertz, Jabil, United Natural
Barry Adams
27 Sep, 2022
New York City
U.S. stocks lost early momentum and turned lower and the S&P 500 index dropped to a new 2022-low.
The S&P 500 index fell 0.6% to 3,631.13 and the Nasdaq Composite index dropped 0.4% to 10.767.54.
Energy stocks traded higher after crude oil rebounded 2.5% from its nine-month low to $78.69 a barrel.
Exxon Mobil, Hess Corp, Schlumberger and BP plc gained between 1% and 2%.
BlackBerry Limited increased 0.7% to $5.01 and the maker of telecom devices and software developer is scheduled to release earnings at 5:30 p.m. ET Tuesday.
Cal-Maine Foods Inc 1.3% to $60.48 ahead of the company's earnings release after the close of regular trading session today.
Cracker Barrel Old Country Store, Inc rose 0.7% to $98.44 after the restaurant chain operator reported revenue in the fourth quarter ending on July 29th rose 5.9% to $830.4 million.
Comparable restaurant sales increased 6.1% and retail sales rose 3.0%.
Net income in the period decreased 8.0% to $33.4 million from $36.4 million a year ago.
For the fiscal year, revenue rose $3.3 billion from $2.8 billion a year ago and net income plunged 48% to $131.8 million from $254.5 million a year ago.
Hertz Global Holdings Inc increased 2.4% to $16.20 after the rental car company announced a partnership with BP Plc's electric vehicle charging unit to place thousands of charging stations to power the company's fleet.
Jabil Inc increased 1.2% to 56.86 after the electronics manufacturing services provider said revenue in the quarter ending in August increased to $9 billion from $7.4 billion a year ago.
Net income increased to $315 million from $175 million and diluted earnings per share rose to $2.25 from $1.75 a year ago.
The company guided fiscal first quarter 2023 revenue to increase 9% from a year ago in the range between $9 billion and $9.6 billion and diluted earnings per share between $1.65 and $2.05.
The company also announced a buyback plan of up to $1 billion of its own stock over the next two years.
United Natural Foods Inc dropped 1.8% to $37.77 after the food wholesaler said revenue in the fourth quarter ending in July rose 8.0% to $7.3 billion.
Net income decreased 9.3% to $39 million from $43 million and diluted earnings per share fell to 63 cents from 69 cents a year ago.
For the fiscal year 2022, net sales increased 7.3% to $28.9 billion and net income increased 66.4% to $248 million from $149 million or $4.07 from $2.48 a year ago.
New Home Sales Soar 29% Unexpectedly In August
Brian Turner
27 Sep, 2022
New York City
Single-family new home sales in August rose unexpectedly, according to the latest report from the Commerce Department Tuesday.
Home sales soared 28.8% to 685,000 annual rate from the revised rate of 5.6% decline to 532,000 in July.
Home sales annual rate has been steadily declining since hitting the high of 839,000 in December 2021 and dropped to a low of 532,000 in July, matching the March 2016 data.
Median home price in August was $436,800, a decline of 6.3% from $466.300 but 8.0% higher from a year ago price of $404,300.
Last week, the National Association of Realtors said existing home sales declined for the seventh month in a row in August but the pace of decline eased to 0.4% to 4.8 million from the previous month fall of 5.7% to 4.82 million in July.
European Stocks Waver, Euro Rebounds, Pound Faces More Headwinds
Bridgette Randall
27 Sep, 2022
Frankfurt
Benchmark indexes in Europe advanced after investors searched for beaten down stocks in financials and energy sectors.
The DAX index increased 0.6% to 12,299.50, the CAC-40 index added 0.7% to 5,810.25 and the FTSE 100 index inched higher 0.1% to 7,028.24.
European markets lacked direction as investors worried that rapid rise in interest rates may dip the economy into a recession without killing the high inflation.
Natural gas prices rebounded in Amsterdam trading and the TTF gas price futures for the immediate month delivery increased as much as 12% before cooling to 8.5% gain to 188.34 euros a megawatt hour.
Brent crude oil also rebounded 2.9% from a nine-month low to $86.56 a barrel.
The U.S. dollar paused its year-long advance and the euro traded at 96.25 cents and the British pound edged up to $1.77.
The British pound is expected to test its parity with the U.S. dollar and the euro in the coming weeks as the island nation struggles with rising cost of energy imports, falling government revenues and rising sovereign borrowing.
Currency traders are anticipating the pound to drop as low as 93 U.S. cents if the Bank of England fails to intervene and lift interest rates in an emergency meeting.
Asian Markets Rebound, Japan and China Move to Curb Currency Speculation
Arjun Pandit
27 Sep, 2022
Mumbai
Asian markets closed higher in a cautious trading as indexes in Japan and China rebounded but in India and Australia edged lower.
The Nikkei 225 index increased 0.5% to 26,571.87, while the broader Topix closed 0.5% higher at 1,873.01.
The Bank of Japan carried out an unscheduled operation to curb currency speculation and control the rapid decline in yen and Finance Minister Sunichi Suzuki cautioned currency traders to avoid speculative bets.
The People's Bank of China injected more liquidity to financial system and dampen the rising stress in dollar-renminbi trades.
The central bank added $24.7 billion in the repo market ahead of the end of the quarter.
The Sensex index in India edged down for the fifth day in a row and fell 37.70 points or 0.07% to 57,107.52 and the Nifty index 8.90 points or 0.05% to 17,007.40.
The Indian economy is one of the few bright spots in the world, most developed economies are heading to a recession and emerging markets are battling sharp currency devaluations.
A mix of global economic slowdown and elevated inflation has kept investors on edge in India, despite the encouraging domestic economic scenario.
Moreover, India is expected to benefit as more companies look to relocate from China and diversify their manufacturing base.
The Shanghai Composite Index jumped 1.4% to 3,093.86, while Hong Kong's Hang Seng Index gained fractionally to close at 17,860.31.
Stock Averages and Crude Oil Attempt Rebound, Yields Inch Higher
Barry Adams
27 Sep, 2022
New York City
Bargain hunters were out looking for stocks in early morning trading after major averages closed at their 2022 lows yesterday.
Tech stocks led the gainers on the hopes that the recent sell-off was overdone.
The S&P 500 index increased 1.2% to 3,697.26 and the Nasdaq Composite index added 1.6% to 10,959.26.
Tesla, Amazon, Apple, Microsoft and Visa gained between 1% and 3%.
Energy complex stocks also gained after crude oil rebounded 2%.
Exxon Mobil, Chevron, Hess Corp and Schlumberger added between 1% and 2%.
Crude oil gained $1.70 or 2.2% to $78.43 and natural gas decreased 15 cents to $6.75 a thermal unit.
The yield on 2-year Treasury notes edged down to 4.28%, 10-year Treasury notes declined to 3.91% and 30-year bonds fell to 3.77%.
Europe Battles Rising Inflation, Rates and Dollar
In Europe, benchmark indexes advanced after investors searched for beaten down stocks in financials and energy sectors.
The DAX index increased 0.6% to 12,299.50, the CAC-40 index added 0.7% to 5,810.25 and the FTSE 100 index inched higher 0.1% to 7,028.24.
European markets lacked direction as investors worried that rapid rise in interest rates may dip the economy into a recession without killing the high inflation.
Natural gas prices rebounded in Amsterdam trading and the TTF gas price futures for the immediate month delivery increased as much as 12% before cooling to 8.5% gain to 188.34 euros a megawatt hour.
Brent crude oil also rebounded 2.9% from a nine-month low to $86.56 a barrel.
The U.S. dollar paused its year-long advance and the euro traded at 96.25 cents and the British pound edged up to $1.77.
The British pound is expected to test its parity with the U.S. dollar and the euro in the coming weeks as the island nation struggles with rising cost of energy imports, falling government revenues and rising sovereign borrowing.
Currency traders are anticipating the pound to drop as low as 93 U.S. cents if the Bank of England fails to intervene and lift interest rates in an emergency meeting.
Asian Markets Rebound from Extended Losses
Asian markets closed higher in a cautious trading as indexes in Japan and China rebounded but in India and Australia edged lower.
The Nikkei 225 index increased 0.5% to 26,571.87, while the broader Topix closed 0.5% higher at 1,873.01.
The Bank of Japan carried out an unscheduled operation to curb currency speculation and control the rapid decline in yen and Finance Minister Sunichi Suzuki cautioned currency traders to avoid speculative bets.
The People's Bank of China injected more liquidity to financial system and dampen the rising stress in dollar-renminbi trades.
The central bank added $24.7 billion in the repo market ahead of the end of the quarter.
The Sensex index in India edged down for the fifth day in a row and fell 37.70 points or 0.07% to 57,107.52 and the Nifty index 8.90 points or 0.05% to 17,007.40.
The Indian economy is one of the few bright spots in the world, most developed economies are heading to a recession and emerging markets are battling sharp currency devaluations.
A mix of global economic slowdown and elevated inflation has kept investors on edge in India, despite the encouraging domestic economic scenario.
Moreover, India is expected to benefit as more companies look to relocate from China and diversify their manufacturing base.
The Shanghai Composite Index jumped 1.4% to 3,093.86, while Hong Kong's Hang Seng Index gained fractionally to close at 17,860.31.
S&P 500 Closes Down 1% After Volatile Session, Oil Wipes Off 2022 Gains
Barry Adams
26 Sep, 2022
New York City
Stocks on Wall Street lacked direction in early trading and accelerated decline after two hours of trading.
Benchmark indexes dropped near the low of the session by 2:00 p.m. ET and after two failed rebound attempts sank in the final five minutes of trading.
The S&P 500 index declined 1.03% to 3,655.04 and the Nasdaq Composite index dropped 0.6% to 10,802.90.
On the first day of trading this week, after a week of more than 4% losses, investors shifted focus to the rising U.S. dollar, adding to the list of worries.
Crude oil accelerated in the fifth week, after dropping in the four previous weeks in a row, erased gains of 2022.
Crude oil fell $2.01 to $77.72 a barrel and natural gas rose 8 cents to $6.91 a thermal unit.
Coal edged down $435.20 a ton, up 140.4% in the year so far.
Crude oil dropped 20.5% in the month so far and up only 1.46% in 2022 after erasing this year's gains.
The yield on 2-year notes edged up to a new 14-year high of 4.32%, 10-year notes inched higher to 3.90% and 30-year bonds advanced to 3.72%.
Stock Movers
AMC Entertainment plunged 10.4% to $7.16 on the news that the movie theater chain operator is likely to sell 425 million units of its preferred shares.
Macy's Inc declined 3.3% to $15.19 and the retailer said the company plans to add 41,000 staff for the upcoming holiday season. The current hiring plan is consistent with the previous years, said the apparel retailer.
Last week, Target announced its plan to add as many as 100,000 seasonal staff in stores and supply chain facilities.
Retailer also said it plans to start its holiday sales as early as October 6 and continue till Dec 24, the longest holiday sale period.
Target Corporation declined 2.7% to $148.46.
Casino companies operating in China traded higher after Macau government said Mainland tour operators from China can resume casino visits from November 1.
Wynn Resorts, Limited jumped 12.7% to $67.24 and Las Vegas Sands Corp jumped 12.4% to $39.90.
China-based electric vehicle makers jumped after the government extended tax breaks for purchases.
Li Auto Inc jumped 6.4% to $26.59, Nio Inc added 1.0% to $17.82 and Xpeng Inc increased 5.6% to $14.48.
European Markets Lack Direction
Benchmark indexes in Europe lacked direction in early trading but traded marginally higher.
The DAX Index edged down 0.5% to 12,227.92, the CAC-40 index decreased 0.3% to 5769.39 and the FTSE 100 index was inched up 0.03% at 7.020.95.
The euro inched lower to 96.176 cents on the ongoing worries of high inflation and rate path and the British pound dropped to a new 4-decade low of $1.069 on the worries that the recently announced tax cuts may increase government deficit.
The yield on European bonds rose and Italian bod yields rose the most after the far-right party led coalition was ahead in the election.
Giorgia Meloni led Brothers of Italy and coalition partners are set to win a majority of seats in the Senate and form a government.
Italian bond yields rose to 4.52%, the highest since 2013 and spread with the German government bond yield widened to 235 basis points, approaching the record high of 250 basis points in 2020.
Meloni campaigned on a promise to renegotiate the terms of payments received from the European Union that could jeopardize or delay as much as 200 billion euros from Brussels.
The yield on the U.K. bonds rose to 4.25% from 3.15% last week and the German bund inched up to 2.09% and French bonds to 2.69%.
China Adjusts Rates, Allows Gradual Depreciation
The People's Bank of China set the renminbi rate below 7.00 for the first time since July 2020 and let the currency slide below the psychologically important range between 6.0 and 7.0.
The currency declined more after the central bank set the rate at 7.0298 but the tightly controlled currency dropped to 7.16, the level not seen since May 2008.
Most Chinese exporters are keeping the export revenues in foreign bank accounts and taking advantage of the rising rates in the U.S. and Europe and not converting to renminbi as rates are falling in China.
Asian Markets Drop
In Asia, popular averages declined following the Friday's losses in the U.S. and Europe.
The Nikkei index dropped 2.6% to 26,475.33, the Shanghai Composite index declined 1.2% to 3,051.41, the Sensex index plunged 1.6% to 57,145.32.
The dollar continued its advanced against all major currencies in Asia.
The yen dropped to a new 25-year low 144.23, the yuan eased to 7.14 and the Indian rupee eased to a new low of 81.43.
Movers: AMC Entertainment, Estee Lauder, LAVA Therapeutics, Li Auto, Macy's, Xpeng
Barry Adams
26 Sep, 2022
New York City
Stocks on Wall Street lacked direction in early trading and accelerated decline after two hours of trading.
On the first of trading this week, after a week of losses totaling more than 4%, investors shifted focus to the rising U.S. dollar, adding to the list of worries.
The euro dropped to a new record low and the British pound dropped to a 4-decade low on the worries that the recently announced tax incentives will lead to a surge in government deficit and not lead to increase in productive capacity.
The S&P 500 index dropped 0.9% to 3,660.53 and the Nasdaq Composite index fell 0.4% to 10,381.90.
AMC Entertainment plunged 10.4% to $7.16 on the news that the movie theater chain operator is likely to sell 425 million units of its preferred shares.
Macy's Inc declined 3.3% to $15.19 and the retailer said the company plans to add 41,000 staff for the upcoming holiday season. The current hiring plan is consistent with the previous years, said the apparel retailer.
Last week, Target announced its plan to add as many as 100,000 seasonal staff in stores and supply chain facilities.
Retailer also said it plans to start its holiday sales as early as October 6 and continue till Dec 24, the longest holiday sale period.
Target Corporation declined 2.7% to $148.46.
Casino companies operating in China traded higher after Macau government said Mainland tour operators from China can resume casino visits from November 1.
Wynn Resorts, Limited jumped 12.7% to $67.24 and Las Vegas Sands Corp jumped 12.4% to $39.90.
China-based electric vehicle makers jumped after the government extended tax breaks for purchases.
Li Auto Inc jumped 6.4% to $26.59, Nio Inc added 1.0% to $17.82 and Xpeng Inc increased 5.6% to $14.48.
Estee Lauder Companies Inc jumped 1.6% to $232.62 and the company announced a licensing partnership with Balmain to launch Balmain Beauty in fall 2024.
LAVA Therapeutics NV soared 103% to $4.87 after the company said Seagen Inc has agreed to produce LAVA's solid tumor-targeting therapy.
As a part of the worldwide licensing agreement, LAVA will receive $50 million upfront payment and $650 million potential milestone-based and royalty payments.
British Pound Plunges, Italian Bond Yields Rise After Election Results
Bridgette Randall
26 Sep, 2022
Frankfurt
Benchmark indexes in Europe lacked direction in early trading but traded marginally higher.
The DAX Index edged up 0.2% to 12,308.12, the CAC-40 index increased 0.3% to 5799.37 and the FTSE 100 index was nearly unchanged at 7.018.27.
The euro inched lower to 96.66 cents on the ongoing worries of high inflation and rate path and the British pound dropped to a new 4-decade low of $1.083 on the worries that the recently announced tax cuts may increase government deficit.
The yield on European bonds rose and Italian bod yields rose the most after the far-right party led coalition was ahead in the election.
Giorgia Meloni led Brothers of Italy and coalition partners are set to win a majority of seats in the Senate and form a government.
Italian bond yields rose to 4.5%, the highest since 2013 and spread with the German government bond yield widened to 235 basis points, approaching the record high of 250 basis points in 2020.
Meloni campaigned on a promise to renegotiate the terms of payments received from the European Union that could jeopardize or delay as much as 200 billion euros from Brussels.
Asian Markets Drop
In Asia, popular averages declined following Friday's losses in the U.S. and Europe.
The Nikkei index dropped 2.6% to 26,475.33, the Shanghai Composite index declined 1.2% to 3,051.41, the Sensex index plunged 1.6% to 57,145.32.
The dollar continued its advance against all major currencies in Asia.
The yen dropped to a new 25-year low 144.23, the yuan eased to 7.14 and the Indian rupee eased to a new low of 81.43
China Adjusts Rates, Allows Gradual Depreciation
The People's Bank of China set the renminbi rate below 7.00 for the first time since July 2020 and let the currency slide below the psychologically important range between 6.0 and 7.0.
The currency declined more after the central bank set the rate at 7.0298 but the tightly controlled currency dropped to 7.16, the level not seen since May 2008.
Most Chinese exporters are keeping the export revenues in foreign bank accounts and taking advantage of the rising rates in the U.S. and Europe and not converting to renminbi as rates are falling in China.