Market Update
Weakening Crude Oil and Gasoline Prices May Seek Lower Bottom
Brian Turner
04 Aug, 2022
New York City
Benchmark stock indexes wavered in choppy trading ahead of the jobs report and crude oil continued to slide and dropped to a six-month low.
The S&P 500 index was nearly unchanged at 4,151.94 and the Nasdaq Composite index increased 0.4% to 12,720.58.
Futures of crude oil declined $2.31 to $88.35 a barrel and natural gas fell 9 cents to $8.16 a thermal unit.
Crude oil futures extended losses this week to 10% and fell to the lows last seen February 3.
On a weekly basis, West Texas Intermediate crude oil in New York and Brent crude in London, U.K. are down the most since April on the global recession worries and falling energy demand from China and rising inventories in the U.S.
Falling demand and rising supply have changed the direction of gasoline prices at retail gas stations.
Demand dropped to 8.54 million barrels a day from 9.25 million barrels a day in the previous week, according to the U.S. Energy Information Administration. Gasoline supplies also increased by 200,000 barrels to 225.3 millions of barrels
The current demand for gasoline is in-line with the demand levels seen in July 2020, when Covid-19 restrictions kept most drivers away from roads.
If the current demand remains low and gas supplies continue to rise, crude oil prices on exchanges and gasoline prices at retail stations are likely to fall further.
Gasoline prices at pumps across the nation dropped for the 50th day in a row, AAA reported today.
Average gasoline prices at retail gas stations fell to $4.14 a gallon, 67 cents lower than a month ago and 90 cents below the peak in June.
Gasoline prices are still $1.05 higher than a year ago.
Average regular gasoline prices on Thursday ranged between $3.65 and $5.54 a gallon.
The West Texas Intermediate crude oil price was $101.31 a barrel on July 29, 2022, $3.60 above the previous week
Caution On Wall Street Ahead of Jobs Report, Oil May Fall Further
Barry Adams
04 Aug, 2022
New York City
Benchmark stock indexes wavered in choppy trading ahead of the jobs report and crude oil continued to slide and dropped to a six-month low.
The S&P 500 index was nearly unchanged at 4,151.94 and the Nasdaq Composite index increased 0.4% to 12,720.58.
Futures of crude oil declined $2.31 to $88.35 a barrel and natural gas fell 9 cents to $8.16 a thermal unit.
Crude oil futures extended losses this week to 10% and fell to the lows last seen February 3.
On a weekly basis, West Texas Intermediate crude oil in New York and Brent crude in London, U.K. are down the most since April on the global recession worries and falling energy demand from China and rising inventories in the U.S.
Falling demand and rising supply have changed the direction of gasoline prices at retail gas stations.
Demand dropped to 8.54 million barrels a day from 9.25 million barrels a day in the previous week, according to the U.S. Energy Information Administration. Gasoline supplies also increased by 200,000 barrels to 225.3 millions of barrels
The current demand for gasoline is in-line with the demand levels seen in July 2020, when Covid-19 restrictions kept most drivers away from roads.
If the current demand remains low and gas supplies continue to rise, crude oil prices on exchanges and gasoline prices at retail stations are likely to fall further.
Gasoline prices at pumps across the nation dropped for the 50th day in a row, AAA reported today.
Average gasoline prices at retail gas stations fell to $4.14 a gallon, 67 cents lower than a month ago and 90 cents below the peak in June.
Gasoline prices are still $1.05 higher than a year ago.
Average regular gasoline prices on Thursday ranged between $3.65 and $5.54 a gallon.
The yield on 10-year Treasury notes edged lower to 2.66% ahead of the monthly payroll survey data tomorrow. U.S. Treasury bond yields have been volatile for the last week and the yields on 10-year notes have fallen as low as 2.52% this week.
Initial claims of unemployment at the end of last week rose 6,000 to 260,000, according to the latest report from the Labor Department.
The Employment Situation Report, household survey measuring labor force status, for July is scheduled to be released Friday.
The survey is expected to show an increase between 255,000 and 263,000 in payrolls after expanding by 372,000 in June.
Earnings season continued and investors are awaiting another batch of earnings after the market closes.
Internet retailers were in focus after the South America focused Mercado Libre posted results exceeding investors expectations.
Alibaba Group said fiscal first quarter revenues increased to 205.6 billion renminbi and net income plunged 50% to 22.73 billion renminbi or 8.51 renminbi per American Depositary Share.
Domestic China commerce business in the quarter declined in mid-single-digit from a year ago on the resurgent coronavirus and widespread lockdowns.
However, the China commerce business began to improve in late May and June.
China-focused retailers JD.com and Pinduoduo gained 4% after the release of Alibaba.com quarterly results.
Ceridian HCM Holding Inc soared 9.8% to $64.89 after the payroll processing company posted second quarter earnings ahead of investor's expectations and issued a third quarter outlook ahead of expectations.
Revenues increased 20.3% to $301.2 million and net loss shrank to $19.8 million from $25.8 million a year ago.
The company guided third quarter total revenue between $304 million and $307 million, an increase of 18% to 19% on a GAAP basis and 20% to 21% on a constant currency basis.
Shake Shack Inc plunged 7.5% to $50.42 after the fast food chain operator reported weaker-than-anticipated quarterly earnings.
Shake Shack said second quarter revenues increased 23.1% to $230.8 million and same store sales rose 10.1% from a year ago.
The fast food chain operator swung to a quarterly loss of $1.2 million from $1.9 million a year ago.
Largest Rate Hike In UK In 27 Years, German Factory Orders Fell
European markets traded higher after Germany's factory orders fell less than expected and investors looked beyond the rising tensions between the U.S. and China.
German factory orders fell 9% on an annual basis in June after dropping 3.2% in May, according to data released by Destatis.
On a monthly basis, orders fell 0.4% in June from May.
The Bank of England lifted its key lending rate by 50 basis points to 1.75%, the largest increase in twenty seven years.
The central bank forecasted inflation to peak at 13% and the central bank forecasted economic recession may start as early as this year and last as long as five quarters.
The DAX index rose 0.6% to 13,661.26, the CAC-40 index increased 0.6% to 6,508.21, and the FTSE 100 index inched up a fraction to 7,446.52.
Investors reacted to the latest batch of corporate results.
Credit Agricole SA soared 5% after the French lender reported better than expected earnings but the Dutch lender ING Group fell 2.8% after its quarterly earnings disappointed investors.
Glencore PLC gained 2.7% after the commodities trader reported first-half profit more than doubled to record high.
Asian Markets Follow Higher Closing In New York
Stocks in Asia generally closed higher and the indexes in China surged despite the ongoing military exercises near the island nation Taiwan.
The benchmark index in Japan closed higher following the overnight surge in New York trading.
Toyota Motors fell 3.0% to 2,091.50 yen after the largest automaker reported a sharp fall in quarterly profit of 42%.
Revenues rose 7% to 8.5 trillion yen and comprehensive income plunged 42% to 1.7 billion yen.
Casio Computer surged 6.3% to 1,386.0 after the electronics company reported second quarter revenues rose 3% 61.3 billion yen and net income declined 6.5% to 5.7 billion yen.
Subaru Corp jumped 8.3% to 2,386.0 yen after the automaker reported second quarter revenues surged 33% to 834 billion yen and net income soared 47% to 27 billion yen.
Earnings per share jumped to 35.5 yen from 24.2 yen a year ago.
The Nikkei 2005 index increased 0.7% to 27,932.20, the Hang Seng index rose 2.2% to 20.174.04. and the Sensex index closed down 0.1% to 58,298.80.
Indexes in India closed down after rallying for six days in a row ahead of interest rate decision Friday.
The Reserve Bank of India is expected to lift its key lending rate between 35 and 50 basis points.
Movers: Alibaba, Ceridian, Restaurant Brands, Shake Shack
Barry Adams
04 Aug, 2022
New York City
Stocks rested on Wall Street after rallying for two days in a row and investors noted the rising bearishness in the energy markets.
The S&P 500 index was nearly unchanged at 4,155.07 and the Nasdaq Composite index increased 0.3% to 12,708.50.
Futures of crude oil declined $2.60 to $88.07 a barrel and natural gas fell 14 cents to $8.14 a thermal unit.
Crude oil futures extended losses this week to 10% and fell to the lows last seen February 3.
On a weekly basis, West Texas Intermediate crude oil and Brent crude in London are down the most since April on the global recession worries and falling demand from China and rising inventories in the U.S.
Exxon Mobil Corp declined 2.5%, Chevron Corp fell 1.4%, Marathon Petroleum decreased 1.3%, and Schlumberger NV dropped 2.5%.
Earnings season continued and investors are awaiting another batch of earnings after the market closes.
Internet retailers were in focus after the South America focused Mercado Libre posted results exceeding investors expectations.
Alibaba Group said fiscal first quarter revenues increased to 205.6 billion renminbi and net income plunged 50% to 22.73 billion renminbi or 8.51 per American Depositary Share.
Domestic China commerce business in the quarter declined in mid-single-digit from a year ago on the resurgent coronavirus and widespread lockdowns.
However, the China commerce business began to improve in late May and June.
China-focused retailers JD.com and Pinduoduo gained 4% after the release of Alibaba.com quarterly results.
Ceridian HCM Holding Inc soared 9.8% to $64.89 after the payroll processing company posted second quarter earnings ahead of investor's expectations and issued a third quarter outlook ahead of expectations.
Revenues increased 20.3% to $301.2 million and net loss shrank to $19.8 million from $25.8 million a year ago.
The company guided third quarter total revenue between $304 million and $307 million, an increase of 18% to 19% on a GAAP basis and 20% to 21% on a constant currency basis.
Restaurant Brands International 7.2% to $58.93 after the parent of Burger King, Tim Hortons and Popeyes said global same-store sales rose 9% driven by the strength in Burger King and Tim Hortons.
Second quarter revenues rose 14.2% to $1.6 billion and net income fell to $346 million from $391 million a year ago.
Diluted earnings per share declined to 76 cents from 84 cents a year ago.
Burger King's system-wide sales rose 14.6% and at Tim Hortons' gained 16.3% from a year ago.
Shake Shack Inc plunged 7.5% to $50.42 after the fast food chain operator reported weaker-than-anticipated quarterly earnings.
Shake Shack said second quarter revenues increased 23.1% to $230.8 million and same store sales rose 10.1% from a year ago.
The fast food chain operator swung to a quarterly loss of $1.2 million from $1.9 million a year ago.
U.S. Stocks Lack Direction, Oil Drops to 6-month Low
Barry Adams
04 Aug, 2022
New York City
Stocks rested on Wall Street after rallying for two days in a row and investors noted the rising bearishness in the energy markets.
The S&P 500 index was nearly unchanged at 4,155.07 and the Nasdaq Composite index increased 0.3% to 12,708.50.
Futures of crude oil declined $2.60 to $88.07 a barrel and natural gas fell 14 cents to $8.14 a thermal unit.
Crude oil futures extended losses this week to 10% and fell to the lows last seen February 3.
On a weekly basis, West Texas Intermediate crude oil and Brent crude in London are down the most since April on the global recession worries and falling demand from China and rising inventories in the U.S.
The yield on 10-year Treasury notes edged lower to 2.694% ahead of the monthly payroll survey data tomorrow.
Initial claims of unemployment at the end of last week rose 6,000 to 260,000, according to the latest report from the Labor Department.
Earnings season continued and investors are awaiting another batch of earnings after the market closes.
Internet retailers were in focus after the South America focused Mercado Libre posted results exceeding investors expectations.
Alibaba Group said fiscal first quarter revenues increased to 205.6 billion renminbi and net income plunged 50% to 22.73 billion renminbi or 8.51 per American Depositary Share.
Domestic China commerce business in the quarter declined in mid-single-digit from a year ago on the resurgent coronavirus and widespread lockdowns.
However, the China commerce business began to improve in late May and June.
China-focused retailers JD.com and Pinduoduo gained 4% after the release of Alibaba.com quarterly results.
Ceridian HCM Holding Inc soared 9.8% to $64.89 after the payroll processing company posted second quarter earnings ahead of investor's expectations and issued a third quarter outlook ahead of expectations.
Revenues increased 20.3% to $301.2 million and net loss shrank to $19.8 million from $25.8 million a year ago.
The company guided third quarter total revenue between $304 million and $307 million, an increase of 18% to 19% on a GAAP basis and 20% to 21% on a constant currency basis.
Shake Shack Inc plunged 7.5% to $50.42 after the fast food chain operator reported weaker-than-anticipated quarterly earnings.
Shake Shack said second quarter revenues increased 23.1% to $230.8 million and same store sales rose 10.1% from a year ago.
The fast food chain operator swung to a quarterly loss of $1.2 million from $1.9 million a year ago.
Largest Rate Hike In UK In 27 Years, German Factory Orders Fell
European markets traded higher after Germany's factory orders fell less than expected and investors looked beyond the rising tensions between the U.S. and China.
German factory orders fell 9% on an annual basis in June after dropping 3.2% in May, according to data released by Destatis.
On a monthly basis, orders fell 0.4% in June from May.
The Bank of England lifted its key lending rate by 50 basis points to 1.75%, the largest increase in twenty seven years.
The central bank forecasted inflation to peak at 13% and the central bank forecasted economic recession may start as early as this year and last as long as five quarters.
The DAX index rose 0.6% to 13,661.26, the CAC-40 index increased 0.6% to 6,508.21, and the FTSE 100 index inched up a fraction to 7,446.52.
Investors reacted to the latest batch of corporate results.
Credit Agricole SA soared 5% after the French lender reported better than expected earnings but the Dutch lender ING Group fell 2.8% after its quarterly earnings disappointed investors.
Glencore PLC gained 2.7% after the commodities trader reported first-half profit more than doubled to record high.
Asian Markets Follow Higher Closing In New York
Stocks in Asia generally closed higher and the indexes in China surged despite the ongoing military exercises near the island nation Taiwan.
The benchmark index in Japan closed higher following the overnight surge in New York trading.
Toyota Motors fell 3.0% to 2,091.50 yen after the largest automaker reported a sharp fall in quarterly profit of 42%.
Revenues rose 7% to 8.5 trillion yen and comprehensive income plunged 42% to 1.7 billion yen.
Casio Computer surged 6.3% to 1,386.0 after the electronics company reported second quarter revenues rose 3% 61.3 billion yen and net income declined 6.5% to 5.7 billion yen.
Subaru Corp jumped 8.3% to 2,386.0 yen after the automaker reported second quarter revenues surged 33% to 834 billion yen and net income soared 47% to 27 billion yen.
Earnings per share jumped to 35.5 yen from 24.2 yen a year ago.
The Nikkei 2005 index increased 0.7% to 27,932.20, the Hang Seng index rose 2.2% to 20.174.04. and the Sensex index closed down 0.1% to 58,298.80.
Largest Rate Hike In UK In 27 Years, German Factory Orders Fell
Bridgette Randall
04 Aug, 2022
Frankfurt
European markets traded higher after Germany's factory orders fell less than expected and investors looked beyond the rising tensions between the U.S. and China.
German factory orders fell 9% on an annual basis in June after dropping 3.2% in May, according to data released by Destatis.
On a monthly basis, orders fell 0.4% in June from May.
The Bank of England lifted its key lending rate by 50 basis points to 1.75%, the largest increase in twenty seven years.
The central bank forecasted inflation to peak at 13% and the central bank forecasted economic recession may start as early as this year and last as long as five quarters.
The DAX index rose 0.6% to 13,661.26, the CAC-40 index increased 0.6% to 6,508.21, and the FTSE 100 index inched up a fraction to 7,446.52.
Investors reacted to the latest batch of corporate results.
Credit Agricole SA soared 5% after the French lender reported better than expected earnings but the Dutch lender ING Group fell 2.8% after its quarterly earnings disappointed investors.
Glencore PLC gained 2.7% after the commodities trader reported first-half profit more than doubled to record high.
Asian Markets Advance On Earnings and Positive Cues from Wall Street
Arjun Pandit
04 Aug, 2022
New York City
Stocks in Asia generally closed higher and the indexes in China surged despite the ongoing military exercises near the island nation Taiwan.
The benchmark index in Japan closed higher following the overnight surge in New York trading.
Toyota Motors fell 3.0% to 2,091.50 yen after the largest automaker reported a sharp fall in quarterly profit of 42%.
Revenues rose 7% to 8.5 trillion yen and comprehensive income plunged 42% to 1.7 billion yen.
Casio Computer surged 6.3% to 1,386.0 after the electronics company reported second quarter revenues rose 3% 61.3 billion yen and net income declined 6.5% to 5.7 billion yen.
Subaru Corp jumped 8.3% to 2,386.0 yen after the automaker reported second quarter revenues surged 33% to 834 billion yen and net income soared 47% to 27 billion yen.
Earnings per share jumped to 35.5 yen from 24.2 yen a year ago.
The Nikkei 2005 index increased 0.7% to 27,932.20, the Hang Seng index rose 2.2% to 20.174.04. and the Sensex index closed down 0.1% to 58,298.80.
Nasdaq Surges 2.6% On Positive Economic Data
Barry Adams
03 Aug, 2022
New York City
Stocks on Wall Street gained for the second day in a row and investors looked beyond the recent tensions between the U.S. and China.
Better-than-expected data on manufacturing activities in June and a surprise rebound in service activities in July supported the market advance today.
Investors increased exposure to the beaten down tech stocks after positive economic data.
Orders for manufactured goods rose in June and marked the thirteenth increase in the last fourteen months.
June goods orders rose 2.0% to $555.2 billion, the U.S. Census Bureau reported today. Orders in June rose following the revised 1.8% increase in May.
The service sector unexpectedly at a faster pace in July, the data from the Institute of Supply Management showed Wednesday.
The Services Purchasing Managers' Index increased to 56.7 after the index dropped to a 25-month low of 55.3 in June.
"Growth continues
European Markets Advance, Retail Sales Fall, Wholesale Inflation Rises
Bridgette Randall
03 Aug, 2022
New York City
European markets advanced and investors looked beyond the rising tensions between the U.S. and China after House Speaker Nancy Pelosi concluded her visit to Taiwan.
Eurozone retail sales unexpectedly declined in June as higher prices and surging inflation weighed on consumer spending.
Eurozone retail sales volume declined 3.7% from a year ago and fell 1.2% from the previous month in June, according to the report released by the eurostat Wednesday.
A separate report from the statistics office showed producer prices remained elevated in June.
Producer prices surged 35.8% from a year ago and slowed from 36.2% in May. On a monthly basis, the prices rose 1.1% from May.
The wholesale prices surged after energy prices surged 92.8%and excluding energy, producer price inflation eased to 15.6% from 16.0% a month ago.
The DAX index gained 1.03% to 13,587.58, the CAC-40 index increased 0.97% to 6,472.06, and the FTSE 100 index added 0.49% to 7,445.68.
June Manufactured Goods Orders Rose 2%
Brian Turner
03 Aug, 2022
New York City
Orders for manufactured goods rose in June and marked the thirteenth increase in the last fourteen months.
June goods orders rose 2.0% to $555.2 billion, the U.S. Census Bureau reported today.
Orders in June rose following the revised 1.8% increase in May.
Shipments increased $6.3 billion or 1.1% to $551.9 billion following 2.1% in May.
Shipments rose in twenty five of the last twenty six months.
Unfilled orders increased $8.3 billion or 0.7% to $1,118.0 billion following a 0.3% increase in May.
Unfilled orders rose for the twenty two consecutive months in a row.
Inventories increased $3.3 billion or 0.4% to $801.5 billion following a 1.3% increase in May.
Last week, the bureau reported durable goods orders rose 1.9% in June to $272.6 billion, up eight of the last nine months.
Robinhood's Assets Under Custody, Active Users, and Revenues Fell
Scott Peters
03 Aug, 2022
New York City
Robinhood Markets Inc increased 13% to $10.42 after the online brokerage for stocks, derivatives, and crypto-currencies said it plans to layoff 23% of its staff, after cutting its staff by 9% in April.
Second quarter revenues declined 44% to $318 million from $565 million and net loss shrank 44% to $295 million from $502 million a year ago.
Diluted loss per share fell to 34 cents from $2.16 a year ago.
On a sequential basis, monthly active users declined 1.9 million to 14.0 million and assets under custody plunged 31% to $64.2 billion but average revenues per user increased to $56 from $53.
PayPal Swings to Quarterly Loss
Scott Peters
03 Aug, 2022
New York City
PayPal Holdings increased 9.6% to $98.30 after the payment processing company posted better-than-expected earnings and revised its outlook.
PayPal said second quarter revenues increased 9% to $6.8 billion and said total payment volume on its platform increased 9% to $339.8 billion from a year ago.
PayPal swung to a quarterly loss of $341 million or 29 cents a diluted share from $1.2 billion or $1.00 a diluted share a year ago.
Free cash flow increased 22% to $1.3 billion from $1.1 billion a year ago.
The company guided full-year 2022 revenues to increase 10% to $27.8 billion and total payment volume to jump 12% on spot basis to $1.4 trillion.
PayPal estimates 2022 earnings per share to fall between $1.52 and $1.62.
PayPal added 400,000 net new accounts in the quarter increasing its total active accounts 6% to 429 million and transaction processed increased 16% to 5.5 billion.
Payments processed per active account increased 12% to 48.7 in the last twelve months.
Expeditors International Sees No End of Supply Disruptions Soon
Scott Peters
03 Aug, 2022
New York City
Expeditors International rose 0.8% to $103.05 after the company said second quarter revenues increased 28% to $4.6 billion.
Net income rose 19% to $378 million from $316.3 million and diluted earnings per share increased 23% to $2.27 from $1.84 a year ago.
The company guided current supply chain disruptions and logistics at ports, ocean freight shipping duration, and available air cargo capacity to improve despite the slowing down in the global economy.
"We do not see signs that these conditions are likely to improve significantly any time soon.
The unpredictability of COVID restrictions and lockdowns in China, as well as route restrictions and sanctions from the Ukraine conflict, continue to make global shipping a highly challenging business right now," said Bradley S. Powell, Senior Vice President and Chief Financial Officer.
AMD Net Income Plunges 37% Despite Record Quarterly Revenues
Scott Peters
03 Aug, 2022
New York City
Advanced Micro Devices, Inc fell 3.2% to $96.17 after the semiconductor chipmaker said revenues in the second quarter increased 70% to $6.55 billion and gross margin declined to 46% from 48% a year ago.
Net income in the second quarter decreased 37% to $447 million from $710 million a year ago and diluted earnings per share fell 53% to 27 cents from 58 cents in the period.
AMD reported eighth record quarterly revenues in a row.
For the third quarter, AMD expects revenues to rise 55% from a year ago to $6.7 billion with a band of $200 million.
For the full-year revenues are expected to rise 60% to $26.3 billion with a band of $300 million.
Movers: AMD, Airbnb, Expeditors International, Match Group, PayPal, Robinhood Markets, Starbucks
Barry Adams
03 Aug, 2022
New York City
Stocks on Wall Street gained for the second day in a row and investors looked beyond the recent tensions between the U.S. and China.
Stocks reacted to corporate earnings amid the worries of economic slowdown and steady drumbeat of Fed officials reiterating the central bank's commitment in lowering inflation to its target rate of 2%.
The S&P 500 index added 0.7% to 4,121.72 and the Nasdaq Composite index advanced 1.5% to 12,528.20.
Futures of crude oil increased 19 cents to $94.61 and natural gas rose a fraction to $7.70 a thermal unit.
AMD fell 3.2% to $96.17 after the semiconductor chipmaker said revenues in the second quarter increased 70% to $6.55 billion and gross margin declined to 46% from 48% a year ago.
Net income in the second quarter decreased 37% to $447 million from $710 million a year ago and diluted earnings per share fell 53% to 27 cents from 58 cents in the period.
AMD reported eighth record quarterly revenues in a row.
For the third quarter, AMD expects revenues to rise 55% from a year ago to $6.7 billion with a band of $200 million and for the full-year revenues to rise 60% to $26.3 billion with a band of $300 million.
Airbnb Inc declined 5.5% to $109.88 after the vacation home rental booking platform said second quarter revenues jumped 58% to $2.1 billion.
Airbnb swung to a profit of $379 million from a loss of $68 million in the year-ago quarter.
The weaker-than-expected revenues disappointed investors despite Airbnb booking 103 million nights and experiences in the quarter.
Expeditors International rose 0.8% to $103.05 after the company said second quarter revenues increased 28% to $4.6 billion.
Net income rose 19% to $378 million from $316.3 million and diluted earnings per share increased 23% to $2.27 from $1.84 a year ago.
The company guided current supply chain disruptions and logistics at ports, ocean freight shipping duration, and available air cargo capacity to improve despite the slowing down in the global economy.
"We do not see signs that these conditions are likely to improve significantly any time soon.
The unpredictability of COVID restrictions and lockdowns in China, as well as route restrictions and sanctions from the Ukraine conflict, continue to make global shipping a highly challenging business right now," said Bradley S. Powell, Senior Vice President and Chief Financial Officer.
Match Group Inc plunged 20.9% to $60.67 after the online dating site operator reported weaker-than-expected revenues of $795 million in its latest quarter.
The dating app operator also guided weaker revenues between $790 million and $800 million and adjusted earnings in the current quarter.
The number of paid users increased 10% to 16.4 million with the average subscriber paying 3% more to $15.86.
PayPal Holdings increased 9.6% to $98.30 after the payment processing company posted better-than-expected earnings and revised its outlook.
PayPal said second quarter revenues increased 9% to $6.8 billion and said total payment volume on its platform increased 9% to $339.8 billion from a year ago.
PayPal swung to a quarterly loss of $341 million or 29 cents a diluted share from $1.2 billion or $1.00 a diluted share a year ago.
Free cash flow increased 22% to $1.3 billion from $1.1 billion a year ago.
The company guided full-year 2022 revenues to increase 10% to $27.8 billion and total payment volume to jump 12% on spot basis to $1.4 trillion.
PayPal estimates 2022 earnings per share to fall between $1.52 and $1.62.
PayPal added 400,000 net new accounts in the quarter increasing its total active accounts 6% to 429 million and transaction processed increased 16% to 5.5 billion.
Payments processed per active account increased 12% to 48.7 in the last twelve months.
Robinhood Markets Inc increased 13% to $10.42 after the online brokerage for stocks, derivatives, and crypto-currencies said it plans to layoff 23% of its staff, after cutting its staff by 9% in April.
Second quarter revenues declined 44% to $318 million from $565 million and net loss shrank 44% to $295 million from $502 million a year ago.
Diluted loss per share fell to 34 cents from $2.16 a year ago.
On a sequential basis, monthly active users declined 1.9 million to 14.0 million and assets under custody plunged 31% to $64.2 billion but average revenues per user increased to $56 from $53.
Starbucks Corporation increased 1.5% to $85.0 and the coffee chain operator said fiscal third-quarter revenues increased 9% to $8.15 billion.
Net income fell to $912.9 million or 79 cents a share from $1.5 billion or 97 cents a share on higher wages and rising costs of raw materials.
U.S. same store sales increased 9% driven by larger order size and 1% increase in traffic. The coffee chain also said customers are not trading down or reducing their spending.
Stocks Advance with Earnings In Focus
Barry Adams
03 Aug, 2022
New York City
Stocks on Wall Street gained for the second day in a row and investors looked beyond the recent tensions between the U.S. and China.
Stocks reacted to corporate earnings amid the worries of economic slowdown and steady drumbeat of Fed officials reiterating the central bank's commitment in lowering inflation to its target rate of 2%.
The S&P 500 index added 0.7% to 4,121.72 and the Nasdaq Composite index advanced 1.5% to 12,528.20.
Futures of crude oil increased 19 cents to $94.61 and natural gas rose a fraction to $7.70 a thermal unit.
Starbucks Corporation increased 1.5% to $85.0 and the coffee chain operator said fiscal third-quarter revenues increased 9% to $8.15 billion.
Net income fell to $912.9 million or 79 cents a share from $1.5 billion or 97 cents a share on higher wages and rising costs of raw materials.
U.S. same store sales increased 9% driven by larger order size and 1% increase in traffic. The coffee chain also said customers are not trading down or reducing their spending.
Match Group Inc plunged 20.9% to $60.67 after the online dating site operator reported weaker-than-expected revenues of $795 million in its latest quarter.
The dating app operator also guided weaker revenues between $790 million and $800 million and adjusted earnings in the current quarter.
The number of paid users increased 10% to 16.4 million with the average subscriber paying 3% more to $15.86.
Airbnb Inc declined 5.5% to $109.88 after the vacation home rental booking platform said second quarter revenues jumped 58% to $2.1 billion.
Airbnb swung to a profit of $379 million from a loss of $68 million in the year-ago quarter.
The weaker-than-expected revenues disappointed investors despite Airbnb booking 103 million nights and experiences in the quarter.
Eurozone Retail Sales Fall, PPI Soar
European markets advanced and investors looked beyond the rising tensions between the U.S. and China after House Speaker Nancy Pelosi concluded her visit to Taiwan.
Eurozone retail sales unexpectedly declined in June as higher prices and surging inflation weighed on consumer spending.
Eurozone retail sales volume declined 3.7% from a year ago and fell 1.2% from the previous month in June, according to the report released by the eurostat Wednesday.
A separate report from the statistics office showed producer prices remained elevated in June.
Producer prices surged 35.8% from a year ago and slowed from 36.2% in May. On a monthly basis, the prices rose 1.1% from May.
The wholesale prices surged after energy prices surged 92.8%and excluding energy, producer price inflation eased to 15.6% from 16.0% a month ago.
The DAX index gained 0.4% to 13,507.98, the CAC-40 index increased 0.7% to 6,455.96, and the FTSE 100 index added 0.4% to 7,435.21.