Market Update
Volatile European Markets Lacked Direction On Mixed Corporate Earnings
Bridgette Randall
11 Aug, 2022
Frankfurt
European markets traded higher and investors digested a mixed bag of corporate earnings and German bond yields rose.
In regional economic news investors reviewed the jobless rate in Sweden, Turkey's current account balance, and the home price direction in the U.K.
Sweden's unemployment rate in July edged up to 6.7% from 6.6% in June, according to the data released by the Swedish government agency Public Employment Service.
The jobless rate was the highest since the 6.81% rate in April.
Turkey's current account deficit in June narrowed to $3.45 billion from $6.57 billion, largely on the account of improvement in service surplus.
Merchandise goods deficit decreased to $6.426 billion in June from $8.878 billion in May and in travel services registered a net inflow of $2.728 billion in June.
Home prices in the U.K. continued to advance in July, the Residential Market Survey from the Royal Institution of Chartered Surveyors showed Thursday.
A net 63 percent of respondents said home prices are rising in July, lower than 78 percent in April but still significantly above the long term average of 13 percent.
Lack of new home supply is driving the U.K.'s home price surge.
The DAX index increased 0.1% to 13,716.14, the CAC-40 index increased 0.2% to 6,536.79, and the FTSE 100 index fell 0.6% to 7,462.56.
Deutsche Telekom AG increased 0.2% to 18.89 euros after the company reported a weaker profit in the second quarter but lifted the 2022 earnings outlook.
Siemens AG dropped as much as 1.5% before recovering to 0.7% rise to 110.06 euros after the industrial company reported second quarter loss, first loss in 12 years.
Siemens swung to a quarterly loss on the account of expenses of business closure in Russia and investment in Siemens Energy.
Aegon NV soared 9.2% to 4.86 euros after the Dutch financial services company reported second quarter net revenues declined 4% to 538 million euros from 562 million euros a year ago.
Aegon swung to a quarterly loss of 365 million from a profit of 842 million a year ago on one-time non-operating expenses.
The quarterly result was impacted by a one-time charge related to reinsurance rate increases in the US, contributing to the net loss of 348 million euros.
Aegon raised its 2022 guidance for operating income from 1.2 billion euros to 1.4 billion euros and expects to achieve cumulative free cash flow over the period 2021 to 2023 of at least 2.2 billion euros, ahead of the 1.4 to 1.6 billion euros target set at the 2020 Capital Markets Day
Asian Markets Close Higher After Inflation Worries Ease
Arjun Pandit
11 Aug, 2022
New York City
Stocks in Asia advanced on the rising hopes that the future U.S. rate hikes will be moderate after the U.S. inflation cooled in July.
Inflation around the world is easing after crude oil prices continued to fall and extended the six-month loss to 29% from the peak of $121.30 a barrel on March 8.
Benchmark indexes opened sharply higher after the U.S. consumer price index eased in July to 8.5% from a year ago but still stayed near the four-decade high.
On a monthly basis, prices were flat.
U.S. petrol prices at retail locations have declined for 57 days in a row from the peak of $5.23 to $4.14 a gallon.
Moreover, German consumer price growth eased in July to 7.5% from 7.6% in June and matched the preliminary estimates, according to the Federal Statistical Office data on Wednesday. Consumer prices increased 7.9% in May.
Markets in Japan were closed today to celebrate the Mountain Day.
The popular indexes in India traded in a tight range in the session as buyers added positions in tech, consumer products, and financial stocks.
The Sensex index closed up 515.31 points, or 0.88% to 59,332.60 and the Nifty index closed up 124.25 or 0.7% to 17,659.
The rupee advanced to 79.21 against the U.S. dollar following the easing of worries of larger U.S. interest rate hikes at the next policy meeting in about five weeks.
The Shanghai Composite Index rallied 1.6 percent to 3,281.67, while Hong Kong's Hang Seng Index spiked 2.4 percent to 20,082.43.
Longfor Group Holdings jumped 5.7% to HK$22.10 after the real estate company denied rumors that it missed its latest payment for commercial paper.
Real estate companies have been under a close scrutiny after mortgage boycotts have spread to several smaller cities on mainland China.
The Kospi index in Seoul, Korea jumped 1.7% to close at 2,523.78 following the advances in Asian markets.
LG Chem, LG Energy Solution, and Samsung Electronics advanced between 1% and 3%.
The ASX 200 Index advanced 1.1% to 7,071 and the broader All Ordinaries Index ended 1.2% higher at 7,325.40.
Resource stocks led the gainers with BHP Billiton, Santos, Fortescue, and Rio Tinto increased between 1% and 3%.
Global Markets Advance as Inflation Eases In U.S., Germany, China
Barry Adams
10 Aug, 2022
New York City
Investors cheered the latest inflation report and benchmark indexes rallied led by a surge in tech stocks.
Tech stocks led the gainers after the inflation index eased in July but stayed elevated near a four-decade high after the 7.7% fall in gasoline index was outpaced by higher food and housing indexes.
Consumer prices for goods and services were flat in July on a monthly basis but remained elevated despite the decline in energy prices.
The Consumer Price Index in July was flat from the previous month and rose 8.5% from a year ago, the Bureau of Labor Statistics said Wednesday.
Core index, which excludes volatile food and energy prices, rose 0.3% from the previous month and jumped 5.9% from a year ago in July.
The S&P 500 surged 2.1% to 4,206.71 and the Nasdaq Composite index soared 2.6% to 12,811.94.
The S&P 500 and the Nasdaq Composite indexes closed at 3-month highs.
Amazon, Apple, and Alphabet rose more than 2% and Meta Platforms soared 6%.
Futures of crude oil prices declined $1.20 to $91.20 a barrel and natural gas edged up 42 cents to $8.24 a thermal unit.
After the release of the latest inflation report, the yield on 10-year U.S. Treasury notes edged down to 2.79% and 30-year U.S. Treasury bond fell to 2.96%.
The yield on 2-year U.S. Treasury notes edged down to 3.15%.
Coinbase Global Inc rose 7.2% to $93.98 after the cryptocurrencies exchange operator said second quarter net revenues fell to $803 million from $2.03 billion a year ago.
Coinbase swung to a net loss of $1.1 billion from a profit of $1.6 billion a year ago.
The exchange operator said monthly transacting users edged up to 9.0 million from 8.8 million a year ago and transacting volume plunged to $217 billion from $462 million a year ago.
Bitcoin, the most heavily traded cryptocurrency on the exchange, has plunged 74% from the peak in November 2021 to the low in June 2022.
GoodRx Holdings declined 5.5% to $7.39, after surging nearly 40% in the previous session, after the online pharmacy price comparison services reported better-than-expected quarter results two days ago.
Nikola Corp gained 0.4% to $6.99 after the company said its chief executive officer Mark Russell will retire at the end of 2022.
Tesla Inc gained 3.9% to $883.07 and chief executive Elon Musk sold 7.92 million shares between Aug 5 and Aug 9 for $6.88 billion, according to a series of regulatory filings with the SEC.
Walt Disney Co increased 4.1% to $112.50 ahead of the earnings release later today.
European Markets Advance, German Inflation Eases
European markets accelerated gains after the U.S. and German inflation eased but stayed elevated.
German consumer price growth eased in July to 7.5% from 7.6% in June and matched the preliminary estimates, according to the Federal Statistical Office data on Wednesday. Consumer prices increased 7.9% in May.
On a monthly basis, prices rose 0.9% in July despite the fall in energy prices and two subsidies provided by the government.
The U.S. consumer prices rose at a slower pace 8.5% in July on an annual basis, according to the report released by the U.S. Bureau of Labor Statistics.
The inflation eased but stayed near the 4-decade high after the energy prices fell. The inflation index on a monthly basis was unchanged.
The DAX index increased 0.8% to 13,646.60, the CAC-40 index increased 0.4% to 6,517.47, and the FTSE 100 index added 0.3% to 7,510.40.
Vestas Wind Systems rose 10.4% to 26.91 euros after the company agreed to sell its converters and control panels business to KK Wind Solutions.
Aviva PLC jumped 11.2% to 4604.0 pence after the insurance company reported higher-than-expected earnings in the first-half and released a plan to return more cash to stockholders with the release of full-year results.
The insurance company increased first-half dividend 40% from a year ago to 10.3 pence a share.
Ahold Delhaize NV jumped 6.3% to 28.29 euros after the Dutch supermarket chain reported net sales in constant currencies rose 6.4% and at nominal exchange rate rose 15% to 21.4 billion euros.
The food retailer lifted its interim dividend to 46 euro cents from 43 cents a year ago and lifted its cumulative free cash flow estimate to 7.5 billion euros from above 6 billion euros between 2022 and 2025.
Net income increased 11.7% to 603 million euros or 59 cents a diluted share from 540 million euros or 53 diluted share a year ago.
TUI AG declined 0.1% to 143.20 pence after the tour operator said load factor in the June quarter increased to 92%, exceeding 90% in the same quarter in 2019.
The tour operator handled 5.1 million customers in the quarter compared to 4.1 million a year ago.
Revenues in the quarter rose to 4.4 billion euros compared to 649 million a year ago. Net loss in the quarter shrank to 27 million euros from 670 million euros a year ago.
At the end of June, the company repaid
Movers: Coinbase, GoodRx, Nikola, Sweetgreen, Trade Desk, Tesla, Wendy's
Barry Adams
10 Aug, 2022
New York City
Stocks on Wall Street soared after the latest inflation report showed a slight easing.
Tech stocks led the gainers after the inflation index eased in July but stayed elevated near a four-decade high after the 7.7% fall in gasoline index was outpaced by higher food and housing indexes.
Consumer prices for goods and services were flat in July on a monthly basis but remained elevated despite the decline in energy prices.
The S&P 500 surged 2.1% to 4,206.71 and the Nasdaq Composite index soared 2.6% to 12,811.94.
After the release of the latest inflation report, the yield on 10-year U.S. Treasury notes edged down to 2.76% and 30-year U.S. Treasury bond fell 6 points to 2.96%.
The yield on 2-year U.S. Treasury notes edged down to 3.15%.
Coinbase Global Inc rose 6.6% to $93.32 after the cryptocurrencies exchange operator said second quarter net revenues fell to $803 million from $2.03 billion a year ago.
Coinbase swung to a net loss of $1.1 billion from a profit of $1.6 billion a year ago.
The exchange operator said monthly transacting users edged up to 9.0 million from 8.8 million a year ago and transacting volume plunged to $217 billion from $462 million a year ago.
Bitcoin, the most heavily traded cryptocurrency on the exchange, has plunged 74% from the peak in November 2021 to the low in June 2022.
GoodRx Holdings declined 7% to $7.19, after surging nearly 40% in the previous session, after the online pharmacy price comparison services reported better-than-expected quarter results two days ago.
Nikola Corp gained 0.7% to $7.01 after the company said its chief executive officer Mark Russell will retire at the end of 2022.
Sweetgreen Inc increased 6.4% $17.8 after the salad restaurant chain said it will layoff 5% of its support center staff and plans to downsize to a smaller office to cut operating expenses.
The restaurant chain also lowered its 2022 revenues between $480 million and $500 million from the previous estimate between $515 million and $535 million.
Trade Desk Inc soared 33.8% to $72.97 after the company reported higher-than-expected quarterly results and offered positive outlook.
The digital advertising platform operator said second quarter revenues increased 35% to $377 million and swung to a net loss of $19 million from a profit of $48 million a year ago.
Diluted loss per share was 4 cents compared to 10 cents a year ago.
Trade Desk guided third quarter revenues of $385 million and adjusted operating income of $140 million.
Tesla Inc gained 2.5% to $871.54 and chief executive Elon Musk sold 7.92 million shares between Aug 5 and Aug 9 for $6.88 billion, according to a series of regulatory filings with the SEC.
The Wendy's Company declined 2.2% to $20.67 after the fast food chain operator said second quarter revenues rose 9.0% to $537.8 million from a year ago.
Net income in the quarter 26.7% to $48.2 million from $65.7 million a year ago.
Diluted earnings per share fell to 22 cents from 29 cents a year ago.
Systemwide U.S. sales growth in the U.S. fell to 3.5% from 20.6% a year ago and U.S. same store sales growth declined to 2.3% from 16.1% a year ago.
S&P 500 and Nasdaq Soar 2% as Inflation Cools
Barry Adams
10 Aug, 2022
New York City
Stocks on Wall Street soared after the latest inflation report showed a slight easing.
Tech stocks led the gainers after the inflation index eased in July but stayed elevated near a four-decade high after the 7.7% fall in gasoline index was outpaced by higher food and housing indexes.
Consumer prices for goods and services were flat in July on a monthly basis but remained elevated despite the decline in energy prices.
The Consumer Price Index in July was flat from the previous month and rose 8.5% from a year ago, the Bureau of Labor Statistics said Wednesday.
Core index, which excludes volatile food and energy prices, rose 0.3% from the previous month and jumped 5.9% from a year ago in July.
The S&P 500 surged 2.1% to 4,206.71 and the Nasdaq Composite index soared 2.6% to 12,811.94.
Futures of crude oil prices declined $1.38 to $89.12 a barrel and natural gas edged up 15 cents to $7.99 a thermal unit.
After the release of the latest inflation report, the yield on 10-year U.S. Treasury notes edged down to 2.76% and 30-year U.S. Treasury bond fell 6 points to 2.96%.
The yield on 2-year U.S. Treasury notes edged down to 3.15%.
Coinbase Global Inc rose 6.6% to $93.32 after the cryptocurrencies exchange operator said second quarter net revenues fell to $803 million from $2.03 billion a year ago.
Coinbase swung to a net loss of $1.1 billion from a profit of $1.6 billion a year ago.
The exchange operator said monthly transacting users edged up to 9.0 million from 8.8 million a year ago and transacting volume plunged to $217 billion from $462 million a year ago.
Bitcoin, the most heavily traded cryptocurrency on the exchange, has plunged 74% from the peak in November 2021 to the low in June 2022.
GoodRx Holdings declined 7% to $7.19, after surging nearly 40% in the previous session, after the online pharmacy price comparison services reported better-than-expected quarter results two days ago.
Nikola Corp gained 0.7% to $7.01 after the company said its chief executive officer Mark Russell will retire at the end of 2022.
Tesla Inc gained 2.5% to $871.54 and chief executive Elon Musk sold 7.92 million shares between Aug 5 and Aug 9 for $6.88 billion, according to a series of regulatory filings with the SEC.
European Markets Accelerate Gains, German Inflation Eases
Bridgette Randall
10 Aug, 2022
Frankfurt
European markets accelerated gains after the U.S. and German inflation eased but stayed elevated.
German consumer price growth eased in July to 7.5% from 7.6% in June and matched the preliminary estimates, according to the Federal Statistical Office data on Wednesday. Consumer prices increased 7.9% in May.
On a monthly basis, prices rose 0.9% in July despite the fall in energy prices and two subsidies provided by the German government.
The U.S. consumer prices rose at a slower pace 8.5% in July on an annual basis, according to the report released by the U.S. Bureau of Labor Statistics.
The inflation eased but stayed near the 4-decade high after the energy prices fell. The inflation index on a monthly basis was unchanged.
The DAX index increased 0.8% to 13,646.60, the CAC-40 index increased 0.4% to 6,517.47, and the FTSE 100 index added 0.3% to 7,510.40.
Vestas Wind Systems rose 10.4% to 26.91 euros after the company agreed to sell its converters and control panels business to KK Wind Solutions.
Aviva PLC jumped 11.2% to 4604.0 pence after the insurance company reported higher-than-expected earnings in the first-half and released a plan to return more cash to stockholders with the release of full-year results.
The insurance company increased first-half dividend 40% from a year ago to 10.3 pence a share.
Ahold Delhaize NV jumped 6.3% to 28.29 euros after the Dutch supermarket chain reported net sales in constant currencies rose 6.4% and at nominal exchange rate rose 15% to 21.4 billion euros.
The food retailer lifted its interim dividend to 46 euro cents from 43 cents a year ago and lifted its cumulative free cash flow estimate to 7.5 billion euros from above 6 billion euros between 2022 and 2025.
Net income increased 11.7% to 603 million euros or 59 cents a diluted share from 540 million euros or 53 diluted share a year ago.
TUI AG declined 0.1% to 143.20 pence after the tour operator said load factor in the June quarter increased to 92%, exceeding 90% in the same quarter in 2019.
The tour operator handled 5.1 million customers in the quarter compared to 4.1 million a year ago.
Revenues in the quarter rose to 4.4 billion euros compared to 649 million a year ago. Net loss in the quarter shrank to 27 million euros from 670 million euros a year ago.
At the end of June, the company repaid
Weak Tech Stocks Lead Cautious Asian Markets Lower
Arjun Pandit
10 Aug, 2022
Mumbai
Benchmark indexes in Asia traded down with tech stocks leading the decliners in Hong Kong and Tokyo.
Semiconductor stocks fell in Tokyo on the worries that the demand for memory and graphic processors is slowing down.
Tech stocks in Hong Kong eased on the simmering tensions between China and the U.S. after the recent visit of the U.S. House Speaker Nancy Pelosi.
The Nikkei 225 index fell 0.7% to 27,819.33, the Hang Seng index dropped 1.95% to 19,610.34, and the Sensex index eased 0.06% to 58,817.29.
Producer prices in Japan eased to a 0.4% rise in July from the previous month and rose 8.6% from a year ago, the Bank of Japan reported on Wednesday.
Prices in June rose 0.9% and advanced 9.4% from a year ago in June.
China's consumer prices accelerated to a two-year high in July to an annual rate of 2.7% after rising at 2.5% in June.
Producer prices eased to an annual rate of 4.2% after surging at a rate of 6.1% in June, the data released by the National Bureau of Statistics of China.
Inflation Hovered Near 4-decade High Despite Fall In Energy Prices
Brian Turner
10 Aug, 2022
New York City
Consumer prices for good and services were flat in July on a monthly basis but remained elevated despite the decline in energy prices.
Consumer Price Index in July was flat from the previous month and rose 8.5% from a year ago, the Bureau of Labor Statistics said Wednesday.
Core index, which excludes volatile food and energy prices, rose 0.3% from the previous month and jumped 5.9% from a year ago in July.
Norwegian Cruise Line Guides Slower Recovery In Bookings
Scott Peters
09 Aug, 2022
New York City
Norwegian Cruise Line Holdings fell 11.4% to $11.99 after the company reported second quarter revenues soared to $1.2 billion from $4.4 million a year ago when the Covid-19 restrictions were still in place.
The company reported a net loss of $509.3 million or $1.22 a diluted share compared to a loss of $717.8 million or $1.94 a diluted share in the prior year.
Net fuel price per metric ton increased to $836 from $673 in 2021 and the company reported fuel expense of $181.2 million in the quarter.
NCL said second quarter occupancy was about 65% and the occupancy "remains below the comparable 2019 period but at higher prices" in the second-half.
Bookings are not expected to recover to the 2019 level at least till the next year, indicating losses to continue.
NCL expects total revenue per Passenger Cruise Day to increase in "high-single digits" compared to 2019 levels.
U.S. and Europe Market Indexes Fall, Micron Tech Warning Weighs On Tech Stocks
Barry Adams
09 Aug, 2022
New York City
Stocks on Wall Street fell and the Nasdaq index declined for the third day in a row.
Investors are increasingly factoring a larger rate hike of at least 75 basis points at the Fed Reserve's next policy meeting in September.
The Consumer Price Index data for July are scheduled to be released on August 10.
The inflation index increased 9.1% in June on an annual basis and 1.3% from the previous month on the sustained increase in food and energy prices.
However, investors are hoping for the inflation to cool down following the 28% decline in crude prices from the peak in March.
The S&P 500 index declined 0.4% to 4,122.71 and the Nasdaq Composite index dropped 1.2% to 12,493.93.
Futures of crude oil declined 24 cents to $91.50 and natural gas rose 25 cents to $7.81 a thermal unit.
The yield on 10-year U.S. Treasury notes rose 2 ticks to 2.78% and on 2-year notes increased to 3.27% ahead of the inflation report Wednesday.
Chip sector stocks led the decliners after Nvidia missed its revenue outlook on Monday and Sony also guided weakening sale of its game console.
Today, Micron Technology, Inc warned that the revenues may fall below its previous estimates
Marvell Technology fell 8.5%, Lam Research dropped 10%, Intel Corporation decreased 2.5%, and AMD fell 5.5%.
Micron said it plans to invest $40 billion in memory chi production facilities in several phases through the end of the decade,
The announcement, made ahead of Micron executives joining President Joe Biden at the White House for the signing of the CHIPS and Science Act.
Separately, the chipmaker said revenues may fall short of its previous estimates, either near the low end or below the previous estimate-range, blaming the macroeconomic factors and supply chain issues.
Micron Tech declined 5.5% to $58.23 after Raymond James lowered its price target to $65 from $72.
Signet Jewelers Ltd dropped 11.7% to $59.75 after the jewelry chain lowered its full-year revenues outlook to between $6.7 billion and $7.6 billion and $7.7 billion from the previous range between $8.03 billion and $8.25 billion.
The company cited "heightened pressure on consumers' discretionary spending and increased macroeconomic headwinds."
Signet also announced the acquisition of Blue Nile for $360 million in cash.
The online retailer of engagement rings and fine jewelry delivered revenues of more than $500 million 2021.
Nielsen Holdings surged 21.2% to $27.52 after the company postponed its meeting with the U.K.-based hedge fund WindAcre, the largest shareholder with a 27% stake.
Nielsen today postponed the court meeting and the special meeting of its shareholders to finalize a preliminary agreement with the hedge fund to join a consortium of private equity investors and receive $28 a share a share, the same price to be paid to all other shareholders for its remaining shares.
Sweetgreen Inc fell 23% in $13.0 in after-hours trading after the salad restaurant chain said it will layoff 5% of its support center staff and plans to downsize to a smaller office to cut operating expenses.
The restaurant chain also lowered its 2022 revenues between $480 million and $500 million from the previous estimate between $515 million and $535 million.
European Markets Ease On Rising Tensions with Russia
European markets eased amid rising geopolitical tensions and investors await the U.S. inflation report Wednesday.
The radioactive catastrophe worries in Europe rose after the Russia-controlled nuclear power plant in Ukraine was shelled on Friday and Saturday.
Russia and Ukraine have traded accusations over who attacked the largest nuclear power plant in Europe located at Zaporizhzhia, Ukraine.
The DAX index decreased 1.1% to 13,534.91, the CAC-40 index fell 0.5% t0 6,490.0, and the FTSE 100 index rose 0.08% to 7,488.16.
Taiwan's foreign minister accused China of intensifying cyberattacks on the island nations and added that the mainland is using the recent military exercises in the preparation of the invasion.
Retail sales in the U.K. rose unexpectedly after the latest heatwave lifted the demand for summer clothing and electric fans.
Comparable retail sales in July rose 1.6% after falling 1.3% in June, the report prepared by the British Retail Consortium and advisory firm KPMG showed Tuesday.
Resource stocks led the gainers in the region after crude oil prices inch higher.
Brent crude edged up $1.40 to $98.21 a barrel and futures of natural gas as high as 192.0 euros a MWh.
Dufry AG rose 4.5% to 40.35 Swiss francs after the duty-free shops operator reported strong first-half 2022 sales rose 146% to 2.9 billion Swiss francs.
Net income in the period swung to 12.1 million Swiss francs or 76.3 million on core basis from a loss of 253.9 million Swiss francs in the year ago period.
The company also won an extension of contract for three more years to 2029 for its largest shop at Heathrow airport.
Duftry also won new concessions for airport locations in Helsinki, Finland, Sofa, Bulgaria, Recife Brazil, Bali, Indonesia and Santa Lucia, Mexico.
Continental AG declined 6.4% to $64.98 euros after the automotive tire maker swung to a loss in the latest results.
Revenues in the second quarter increased 13.0% to 9.4 billion euros but swung to a loss of 25.1 million euros from a profit of 545 million euros.
The company reiterated its full-year outlook despite the challenging first half and persistent supply chain disruptions.
Wacker Neuson SE declined 4.2% to 18.61 euros after the construction equipment maker reported first-half revenues increased 15.5% to 1.07 billion euros.
Net income in the period declined 5.6% to 66.1 million euros compared to 70.1 million euros a year ago.
The company reiterated its full-year revenues between 1.9 billion and 2.1 billion euros and narrowed its operating earnings margin between 9.0% and 10.0%.
Asian Markets Diverge, Korea and Australia Extend Rallies
In Asia, markets in Japan closed lower on earnings weakness but indexes in China, South Korea and Australia advanced.
The Nikkei 225 index fell 0.9% to 27,999.96 after rallying for four days in a row and tech stocks led the decliners.
SoftBank Group dropped 7% or 400 yen to 5,295.0 yen after the company's venture arm reported a huge loss of $23.4 billion and the company said it plans to cut jobs.
The Shanghai Composite index rose 0.32% to 3,247.43. Hong Kong's Hang Seng index finished down 0.21% to 20,003.44.
Japan Steel Works Ltd fell 9% to 2,861.0 yen and Tokyo Electron fell 8.5% to 45,600 yen after the release of quarterly results.
Sony Group fell 2.5% to 11,435 yen after the tech conglomerate warned that the weakness in its gaming unit will negatively impact its quarterly results.
Benchmark indexes in Korea advanced for the fifth day in a row and reached a two-month high despite the inflation and rate hike worries.
The Kospi average increased 0.42% to 2,503.46, nearly a two-month high since June 13.
Australian markets advanced for the third day in a row and two separate reports showed diverging trends in business and consumer sentiments.
The Westpac-Melbourne Institute Index of Consumer Sentiment declined 3.0 percent to 81.2 in August from 83.8 in July, the ninth monthly decline totaling 22.9% in a row after reaching a high in November 2021.
The business confidence index rose to +7 in July from +2 in June after the capacity utilization rose to 86.7% from 84.9% in the period, according to the survey data released by NAB
The ASX 200 increased 0.13% to 7,029.80 and the All Ordinaries index closed 0.26% higher to 7,278.60.
Markets in India were closed.
Movers: Allbirds, Nielsen, Norwegian Cruise, Ralph Lauren, Signet Jewelers
Barry Adams
09 Aug, 2022
New York City
Stocks traded lower on Wall Street and bond yields traded higher ahead of the inflation report Wednesday.
Investors are increasingly factoring a larger rate hike of at least 75 basis points at the Fed Reserve's next policy meeting in September.
The Consumer Price Index data for July are scheduled to be released on August 10.
The inflation index increased 9.1% in June on an annual basis and 1.3% from the previous month on the sustained increase in food and energy prices.
However, investors are hoping for the inflation to cool down following the 28% decline in crude prices from the peak in March.
The S&P 500 index declined 0.6% to 4,115.72 and the Nasdaq Composite index dropped 1.6% to 12,444.97.
Allbirds Inc declined 19.2% to $4.54 after the shoemaker said second quarter total revenues increased 15% to $78.2 million and net revenues in the U.S. rose 21% to $59.3 million.
Net loss in the quarter surged to $29.3 million from $7.6 million a year ago.
The retailer lowered its full-year adjusted net revenues outlook to fall between $305 million and $315 million from the previous range between $335 million and $345 million issued at the time of the first quarter results.
Chip sector stocks are leading the decliners after Nvidia missed its revenue outlook yesterday and Sony also guided weakening sale of its game console.
Marvell Technology fell 8.5%, Lam Research dropped 10%, Intel Corporation decreased 2.5%, and AMD fell 5.5%.
Micron Tech said it plans to invest $40 billion in memory chi production facilities in several phases through the end of the decade.
The announcement, made ahead of Micron executives joining President Joe Biden at the White House for the signing of the CHIPS and Science Act.
Micron Tech declined 5.5% to $58.23 after Raymond James lowered its price target to $65 from $72.
Nielsen Holdings surged 21.2% to $27.54 after the company postponed its meeting with a hedge fund WindAcre, the largest shareholder in the company with a 27% stake.
Nielsen today postponed the court meeting and the special meeting of its shareholders to finalize a preliminary agreement with WindAcre to join a consortium of private equity and receive $28 a share a share, the same price to be paid to all other shareholders for its remaining shares.
Norwegian Cruise Line Holdings fell 11.4% to $11.99 after the company reported second quarter revenues soared to $1.2 billion from $4.4 million a year ago when the Covid-19 restrictions were still in place.
The company reported a net loss of $509.3 million or $1.22 a diluted share compared to a loss of $717.8 million or $1.94 a diluted share in the prior year.
Net fuel price per metric ton increased to $836 from $673 in 2021 and the company reported fuel expense of $181.2 million in the quarter.
Norwegian said second quarter occupancy was about 65% and the occupancy "remains below the comparable 2019 period but at higher prices" in the second-half.
Bookings are not expected to recover to the 2019 level at least till the next year, indicating losses to continue.
NCL expects total revenue per Passenger Cruise Day to increase in "high-single digits" compared to 2019 levels.
Ralph Lauren Corp fell 4.9% to $96.37 after the fashion retailer said revenues in the fiscal first quarter ending on July 2 rose 8% to $1.49 billion.
Net income declined to $123.4 million or 75 cents a diluted share from $164.7 million or 89 cents a diluted share a year ago.
Signet Jewelers Ltd dropped 13.5% to $58.50 after the jewelry chain lowered its full-year revenues outlook to between $6.7 billion and $7.6 billion and $7.7 billion from the previous range between $8.03 billion and $8.25 billion.
The company cited "heightened pressure on consumers' discretionary spending and increased macroeconomic headwinds."
Signet also announced the acquisition of Blue Nile for $360 million in cash.
The online retailer of engagement rings and fine jewelry delivered revenues of more than $500 million 2021.
Nasdaq Extends 3-day Losses After Chip Stocks Fall
Barry Adams
09 Aug, 2022
New York City
Stocks traded lower on Wall Street and bond yields traded higher ahead of the inflation report Wednesday.
Investors are increasingly factoring a larger rate hike of at least 75 basis points at the Fed Reserve's next policy meeting in September.
The Consumer Price Index data for July are scheduled to be released on August 10.
The inflation index increased 9.1% in June on an annual basis and 1.3% from the previous month on the sustained increase in food and energy prices.
However, investors are hoping for the inflation to cool down following the 28% decline in crude prices from the peak in March.
The S&P 500 index declined 0.6% to 4,115.72 and the Nasdaq Composite index dropped 1.6% to 12,444.97.
Futures of crude oil declined $1.24 to $89.52 and natural gas rose 21 cents to $7.79 a thermal unit.
The yield on 10-year U.S. Treasury notes rose 2 ticks to 2.78% and on 2-year notes increased to 3.27% ahead of the inflation report Wednesday.
Chip sector stocks are leading the decliners after Nvidia missed its revenue outlook yesterday and Sony also guided weakening sale of its game console.
Marvell Technology fell 8.5%, Lam Research dropped 10%, Intel Corporation decreased 2.5%, and AMD fell 5.5%.
Micron said it plans to invest $40 billion in memory chi production facilities in several phases through the end of the decade.
The announcement, made ahead of Micron executives joining President Joe Biden at the White House for the signing of the CHIPS and Science Act.
Micron Tech declined 5.5% to $58.23 after Raymond James lowered its price target to $65 from $72.
Signet Jewelers Ltd dropped 13.5% to $58.50 after the jewelry chain lowered its full-year revenues outlook to between $6.7 billion and $7.6 billion and $7.7 billion from the previous range between $8.03 billion and $8.25 billion.
The company cited "heightened pressure on consumers' discretionary spending and increased macroeconomic headwinds."
Signet also announced the acquisition of Blue Nile for $360 million in cash.
The online retailer of engagement rings and fine jewelry delivered revenues of more than $500 million 2021.
Nielsen Holdings surged 21.2% to $27.54 after the company postponed its meeting with a hedge fund WindAcre, the largest shareholder in the company with a 27% stake.
Nielsen today postponed the court meeting and the special meeting of its shareholders to finalize a preliminary agreement with WindAcre to join a consortium of private equity and receive $28 a share a share, the same price to be paid to all other shareholders for its remaining shares.
European Markets Ease On Rising Tensions with Russia
Bridgette Randall
09 Aug, 2022
Frankfurt
European markets eased amid rising geopolitical tensions and investors await the U.S. inflation report Wednesday.
The radioactive catastrophe worries in Europe rose after the Russia-controlled nuclear power plant in Ukraine was shelled on Friday and Saturday.
Russia and Ukraine have traded accusations over who attacked the largest nuclear power plant in Europe located at Zaporizhzhia, Ukraine.
The DAX index decreased 0.8% to 13,577.81, the CAC-40 index fell 0.3%, and the FTSE 100 index rose 0.1% to 7,491.96.
Taiwan foreign minister accused China for stepping up cyberattacks on the island nations and added that the mainland is using the recent military exercises in the preparation of the island invasion.
Retail sales in the U.K. rose unexpectedly after the latest heatwave lifted the demand for summer clothing and electric fans.
Comparable retail sales in July rose 1.6% after falling 1.3% in June, the report prepared by the British Retail Consortium and advisory firm KPMG showed Tuesday.
Resource stocks led the gainers in the region after crude oil prices inch higher.
Brent crude edged up $1.40 to $98.21 a barrel and futures of natural gas as high as 192.0 euros a MWh.
Dufry AG rose 4.5% to 40.35 Swiss francs after the duty-free shops operator reported strong first-half 2022 sales rose 146% to 2.9 billion Swiss francs.
Net income in the period swung to 12.1 million Swiss francs or 76.3 million on core basis from a loss of 253.9 million Swiss francs in the year ago period.
The company also won an extension of contract for three more years to 2029 for its largest shop at Heathrow airport.
Duftry also won new concessions for airport locations in Helsinki, Finland, Sofa, Bulgaria, Recife Brazil, Bali, Indonesia and Santa Lucia, Mexico.
Continental AG declined 6.4% to $64.98 euros after the automotive tire maker swung to a loss in the latest results.
Revenues in the second quarter increased 13.0% to 9.4 billion euros but swung to a loss of 25.1 million euros from a profit of 545 million euros.
The company reiterated its full-year outlook despite the challenging first half and persistent supply chain disruptions.
Wacker Neuson SE declined 4.2% to 18.61 euros after the construction equipment maker reported first-half revenues increased 15.5% to 1.07 billion euros.
Net income in the period declined 5.6% to 66.1 million euros compared to 70.1 million euros a year ago.
The company reiterated its full-year revenues between 1.9 billion and 2.1 billion euros and narrowed its operating earnings margin between 9.0% and 10.0%.
Asian Markets Diverge, Nikkei Down on Tech Weakness
Arjun Pandit
09 Aug, 2022
Mumbai
In Asia, markets in Japan closed lower on earnings weakness but indexes in China, South Korea and Australia advanced.
The Nikkei 225 index fell 0.9% to 27,999.96 after rallying for four days in a row and tech stocks led the decliners.
SoftBank Group dropped 7% or 400 yen to 5,295.0 yen after the company's venture arm reported a huge loss of $23.4 billion and the company said it plans to cut jobs.
The Shanghai Composite index rose 0.32% to 3,247.43. Hong Kong's Hang Seng index finished down 0.21% to 20,003.44.
Japan Steel Works Ltd fell 9% to 2,861.0 yen and Tokyo Electron fell 8.5% to 45,600 yen after the release of quarterly results.
Sony Group fell 2.5% to 11,435 yen after the tech conglomerate warned that the weakness in its gaming unit will negatively impact its quarterly results.
Benchmark indexes in Korea advanced for the fifth day in a row and reached a two-month high despite the inflation and rate hike worries.
The Kospi Average increased 0.42% to 2,503.46, nearly a two-month high since June 13.
Australian markets advanced for the third day in a row and two separate reports showed diverging trends in business and consumer sentiments.
The Westpac-Melbourne Institute Index of Consumer Sentiment declined 3.0 percent to 81.2 in August from 83.8 in July, the ninth monthly decline totaling 22.9% in a row after reaching a high in November 2021.
The business confidence index rose to +7 in July from +2 in June after the capacity utilization rose to 86.7% from 84.9% in the period, according to the survey data released by NAB
The ASX 200 increased 0.13% to 7,029.80 and the All Ordinaries index closed 0.26% higher to 7,278.60.
Markets in India were closed.
Cox Enterprises to Buy Axios Media
Scott Peters
08 Aug, 2022
New York City
Axios Media Inc agreed to be acquired by Cox Enterprises in a deal that values the news publisher at $525 million.
The deal was announced by two companies in a press release on Monday and the price of the transaction was confirmed by two people familiar with the deal.
Axios co-founders Jim VandeHei, Mike Allen and Roy Schwartz will continue to hold substantial stakes in the company and will lead editorial and day-to-day business decisions, the press release noted.
Cox Enterprise said its other media assets, Atlanta Journal-Constitution, Dayton Daily News and other Ohio newspapers, are not expected to be impacted by the Axios transaction.
Axios HQ, the Axios communication software business, will be spun off as a separate company and will be owned by three founders with a minority investment from Cox Enterprise.
Axios has recently expanded beyond its political and business news to cover local news in 19 cities including Boston and San Francisco.
Three founders left Politico in 2016 to start Axios in the following year with a sharper focus on brief stories.
In late October 2021, Politico agreed to be acquired by German publishing firm Axle Springer for more than one billion dollars which Axios' CEO Jim VandeHei also helped to found in 2007.
Axios' first round of $10 million investment in 2017 included NBC News, Emerson Collective controlled by Lauren Powell Jobs, Greycroft Partners, and Atlantic Media owned by David and Katherine Bradley.
Cox Enterprises was already the largest investor in Axios Media prior to the announcement of the deal.