Market Update
Uber Mobility and Delivery Segments Revenues Surge
Scott Peters
02 Aug, 2022
New York City
Uber Technologies Inc rose 17.1% to $28.81 after the ride hailing platform said it turned cash flow positive for the first time.
Uber said gross bookings increased 33% from a year ago to $29.1 billion and revenues soared 105% to $8.1 billion.
Mobility segment revenues rose 120% to $3.55 billion, delivery segment revenues surged 43% to $2.7 billion, and freight revenues including a recent acquisition jumped six-fold to $1.8 billion.
Revenues in the U.S. and Canada jumped 149% to $4.9 billion and in Europe including the Middle East and Africa rose 99% to $1.9 billion.
Revenues in Latin America soared 57% to $481 million and in Asia Pacific jumped 14% to $810 million.
Uber swung to a quarterly loss of $2.6 billion or $1.33 a diluted share driven in part by investment losses of $1.7 billion.
Net loss includes a pre-tax mark-to-market write down of investments by $1.7 billion relating to Uber
ZoomInfo Lifts Annual Revenue Guidance
Scott Peters
02 Aug, 2022
New York City
ZoomInfo Technologies Inc soared 10.9% to $41.88 after the business information provider lifted its full-year guidance.
Second quarter revenues increased 54% to $267.1 million and net income declined to $15.9 million or 4 cents a diluted share from $24.5 million or 5 cents a diluted a year ago.
ZoomInfo revised full-year 2022 revenues to between $1.08 billion and $1.09 billion from the previous estimate between $1.06 billion and $1.07 billion.
For the full-year, adjusted operating income estimated is revised higher between $433 million and $437 million from the previous estimate between $418 million and $424 million.
Simon Property Reported Flat Revenue Growth and Hiked Dividend
Scott Peters
02 Aug, 2022
New York City
Simon Property Group fell 1.1% to $107.11 after the largest mall operators reported second quarter revenues edged up to $1.27 billion from $1.25 billion a year ago.
Net income in the quarter declined to $569 million or $1.51 a diluted share from $706 million or $1.88 a diluted share a year ago.
The occupancy at the U.S. malls and premium outlets increased to 93.9% at the end of June quarter from 91.8% a year ago.
Base minimum rent per square foot was $54.58 at the end of June.
The company increased its quarterly dividend by 25 cents from a year ago to $1.75 a share payable on September 30, 2022 to shareholders of record on September 9, 2022.
Avis Budget Net Income Soars On Travel Rebound
Scott Peters
02 Aug, 2022
New York City
Avis Budget Group, Inc fell 7.6% to $167.83 after the car rental company said second quarter revenues rose 37% to $3.2 billion and net income soared 94% to $774 million from a year ago.
Diluted earnings per share rose to $15.94 from $5.90 a year ago.
The U.S. segment revenues rose 30% to $2.6 billion and international revenues surged 71% to $677 million from a year ago.
Average daily rental revenue increased 9% in constant currency to $78.19 and vehicle fleet expanded 32% to 500,653 units from a year ago.
Advertised Job Openings Dropped to a 9-month Low
Brian Turner
02 Aug, 2022
New York City
Job openings at the end of June declined 605,000 to 10.7 million or fell 6.6%, the Job Openings and Labor Turnover Survey released by the Bureau of Labor Statistics noted Tuesday.
Retail trade led the decline with 343,000 fewer postings followed by 82,000 in wholesale trade, and 62,000 in local and state government education.
Hires and total separations were little changed at 6.4 million and 5.9 million respectively.
Global Markets On Edge After U.S. China Tensions Rise
Barry Adams
02 Aug, 2022
New York City
Benchmark indexes struggled to find their footing and closed down at the end of a choppy session.
Job openings at the end of June declined 605,000 to 10.7 million or fell 6.6%, the Job Openings and Labor Turnover Survey reported Tuesday.
Retail trade led the decline with 343,000 fewer postings followed by 82,000 in wholesale trade, and 62,000 in local and state government education.
Hires and total separations were little changed at 6.4 million and 5.9 million respectively.
The S&P 500 index decreased 27.34 or 0.7% to 4,091.10 and the Nasdaq Composite index fell 0.2% or 20.22 to 12,348.76.
Futures of crude oil rose 25 cents to $94.18 a barrel and natural gas fell 62 cents to $7.65 a unit.
The yield on 10-year U.S. Treasury notes edged up a fraction to 2.75% after tensions between the U.S. and China rose ahead of House Speaker Nancy Pelosi's visit to Taiwan.
Caterpillar fell 5.8% to $183.51 after the heavy equipment maker reported slightly lower than expected quarterly revenues because of its exit from Russia.
Uber Technologies Inc rose 18.9% to $29.25 after the ride hailing platform said it turned cash flow positive for the first time.
Uber said gross bookings increased 33% from a year ago to $29.1 billion and revenues soared 105% to $8.1 billion and swung to a quarterly loss of $2.6 billion or $1.33 a diluted share driven in part by investment losses of $1.7 billion.
Pinterest Inc rose 12.2% to $22.31 after the photo sharing platform said second quarter revenues increased 9% to $665.9 million and swung to a net loss of $43 million from net income of $69 million a year ago.
Pinterest's global active monthly users declined 5% from a year ago to 433 million.
The stock jumped after the activist investor Elliott Management confirmed that it is the largest shareholder in the company.
Cowen Inc increased 8.4% to $38.46 after the company agreed to be acquired by Toronto Dominion Bank for $39 a share or $1.3 billion in cash.
European Markets Trend Lower, AP Moller, BP, Generali In Focus
European markets traded lower on the worries that the rising tensions between the U.S. and China may spillover in the new round of trade war.
The DAX index declined 0.2% to 13,449.20, the CAC-40 index fell 0.4% to 6,409.80, and the FTSE 100 index eased 0.05% to 7,409.11.
A.P. Moller-Maersk increased 2.9 to 13.96 euros after the Danish shipping company raised its full-year guidance for underlying operating profits to about $31 billon from the previous estimate of $24 billion.
Assicurazioni Generali SpA fell 1.9% to 14.60 euros despite the largest Italian insurance company said it has met all its target set in its strategic plan for the next two years.
BP Plc gained 3.6% to 406.40 pence after the the British oil exploration company increased its dividend and expanded its stock buyback after the company reported its best quarterly results in 14 years.
Man Group Plc plunged 9.9% to 241.24 pence after the U.K.-based asset management company reported its first decline in assets under management in more than two years.
Asian Markets Ease On China-U.S. Tensions
In Asia, benchmark indexes traded lower after the U.S.-China tensions rose ahead of the U.S. House Speaker Nancy Pelosi's visit later in the day.
The Nikkei 225 index declined 1.4% to 27,594.73, the Hang Seng index dropped 2.4% to 19,689,51, and the Sensex index edged up a fraction to 58,136.36.
European Markets Ease, Generali, Man Group, BP In Focus
Bridgette Randall
02 Aug, 2022
Frankfurt
European markets traded lower on the worries that the rising tensions between the U.S. and China may spillover in the new round of trade war.
The DAX index declined 0.2% to 13,449.20, the CAC-40 index fell 0.4% to 6,409.80, and the FTSE 100 index eased 0.05% to 7,409.11.
A.P. Moller-Maersk increased 2.9% to 13.96 euros after the Danish shipping company raised its full-year guidance for underlying operating profits to about $31 billon from the previous estimate of $24 billion.
Assicurazioni Generali SpA fell 1.9% to 14.60 euros despite the largest Italian insurance company said it has met all its target set in its strategic plan for the next two years.
BP Plc gained 3.6% to 406.40 pence after the the British oil exploration company increased its dividend and expanded its stock buyback after the company reported its best quarterly results in 14 years.
Man Group Plc plunged 9.9% to 241.24 pence after the U.K.-based asset management company reported its first decline in assets under management in more than two years.
Movers: Avis Budget, Caterpillar, Cowen, Pinterest, Royal Caribbean, Simon Property, Uber, ZoomInfo
Barry Adams
02 Aug, 2022
New York City
Stocks rebounded from morning losses after investors digested the latest batch of earnings.
The S&P 500 index increased 1.34 to 4,120.14 and the Nasdaq Composite index rose 0.3% or 36.97 to 12,407.29.
Futures of crude oil rose 96 cents to $94.85 a barrel and natural gas fell 42 cents to $7.86 a unit.
The yield on 10-year U.S. Treasury notes edged up a fraction to 2.706% after tensions between the U.S. and China rose ahead of House Speaker Nancy Pelosi's visit to Taiwan.
Avis Budget Group, Inc fell 7.6% to $167.83 after the car rental company said second quarter revenues rose 37% to $3.2 billion and net income soared 94% to $774 million from a year ago.
Diluted earnings per share rose to $15.94 from $5.90 a year ago.
The U.S. segment revenues rose 30% to $2.6 billion and international revenues surged 71% to $677 million from a year ago.
Average daily rental revenue increased 9% in constant currency to $78.19 and vehicle fleet expanded 32% to 500,653 units from a year ago.
Caterpillar Inc fell 3.4% to $188.25 after the heavy equipment maker reported slightly lower than expected quarterly revenues because of its exit from Russia.
Cowen Inc increased 7.9% to $38.31 after the company agreed to be acquired by Toronto Dominion Bank for $39 a share or $1.3 billion in cash.
Pinterest Inc rose 12.7% to $22.51 after the photo sharing platform said second quarter revenues increased 9% to $665.9 million and swung to a net loss of $43 million from net income of $69 million a year ago.
Pinterest's global active monthly users declined 5% from a year ago to 433 million.
The stock jumped after the activist investor Elliott Management confirmed that it is the largest shareholder in the company.
Royal Caribbean Cruises Ltd gained 4.3% to $37.33 after the company priced its upsized convertible debt offering of $1.0 billion to refinance existing convertible notes.
The company intends to use the proceeds from the sale to repurchase $350 million aggregate principal amount of its 2.875% convertible senior notes due November 15, 2023 and $800 million aggregate principal amount of its 4.25% convertible senior notes due June 15, 2023.
The convertible notes will mature on August 15, 2025 unless earlier converted and the conversion price per $1,000 of notes is 19.9577 shares of common stock, which is equivalent to approximately $50.11 a share, subject to adjustment in certain circumstances.
The initial conversion price represents a conversion premium of approximately 40% over the last reported sale price of common stock on August 1, 2022.
Simon Property Group fell 1.1% to $107.11 after the largest mall operators reported second quarter revenues edged up to $1.27 billion from $1.25 billion a year ago.
Net income in the quarter declined to $569 million or $1.51 a diluted share from $706 million or $1.88 a diluted share a year ago.
The occupancy at the U.S. malls and premium outlets increased to 93.9% at the end of June quarter from 91.8% a year ago.
Base minimum rent per square foot was $54.58 at the end of June.
The company increased its quarterly dividend by 25 cents from a year ago to $1.75 a share payable on September 30, 2022 to shareholders of record on September 9, 2022.
Uber Technologies Inc rose 17.1% to $28.81 after the ride hailing platform said it turned cash flow positive for the first time.
Uber said gross bookings increased 33% from a year ago to $29.1 billion and revenues soared 105% to $8.1 billion and swung to a quarterly loss of $2.6 billion or $1.33 a diluted share driven in part by investment losses of $1.7 billion.
ZoomInfo Technologies Inc soared 10.9% to $41.88 after the business information provider lifted its full-year guidance.
Second quarter revenues increased 54% to $267.1 million and net income declined to $15.9 million or 4 cents a diluted share from $24.5 million or 5 cents a diluted a year ago.
ZoomInfo revised full-year 2022 revenues to between $1.08 billion and $1.09 billion from the previous estimate between $1.06 billion and $1.07 billion.
For the full-year, adjusted operating income estimated is revised higher between $433 million and $437 million from the previous estimate between $418 million and $424 million.
U.S. Stocks Waver and Job Openings Dip to 9-month Low
Barry Adams
02 Aug, 2022
New York City
Stocks rebounded from morning losses after investors digested the latest batch of earnings.
Job openings at the end of June declined 605,000 to 10.7 million or fell 6.6%, the Job Openings and Labor Turnover Survey reported Tuesday.
Retail trade led the decline with 343,000 fewer postings followed by 82,000 in wholesale trade, and 62,000 in local and state government education.
Hires and total separations were little changed at 6.4 million and 5.9 million respectively.
The S&P 500 index increased 1.34 to 4,120.14 and the Nasdaq Composite index rose 0.3% or 36.97 to 12,407.29.
Futures of crude oil rose 96 cents to $94.85 a barrel and natural gas fell 42 cents to $7.86 a unit.
The yield on 10-year U.S. Treasury notes edged up a fraction to 2.706% after tensions between the U.S. and China rose ahead of House Speaker Nancy Pelosi's visit to Taiwan.
Caterpillar fell 3.4% to $188.25 after the heavy equipment maker reported slightly lower than expected quarterly revenues because of its exit from Russia.
Uber Technologies Inc rose 17.1% to $28.81 after the ride hailing platform said it turned cash flow positive for the first time.
Uber said gross bookings increased 33% from a year ago to $29.1 billion and revenues soared 105% to $8.1 billion and swung to a quarterly loss of $2.6 billion or $1.33 a diluted share driven in part by investment losses of $1.7 billion.
Pinterest Inc rose 12.7% to $22.51 after the photo sharing platform said second quarter revenues increased 9% to $665.9 million and swung to a net loss of $43 million from net income of $69 million a year ago.
Pinterest's global active monthly users declined 5% from a year ago to 433 million.
The stock jumped after the activist investor Elliott Management confirmed that it is the largest shareholder in the company.
Cowen Inc increased 7.9% to $38.31 after the company agreed to be acquired by Toronto Dominion Bank for $39 a share or $1.3 billion in cash.
European markets traded lower on the worries that the rising tensions between the U.S. and China may spillover in the new round of trade war.
The DAX index declined 0.2% to 13,442.40, the CAC-40 index fell 0.4% to 6,412.98, and the FTSE 100 index eased 0.07% to 7,408.91.
In Asia, benchmark indexes traded lower after the U.S.-China tensions rose ahead of the U.S. House Speaker Nancy Pelosi's visit later in the day.
The Nikkei 225 index declined 1.4% to 27,594.73, the Hang Seng index dropped 2.4% to 19,689,51, and the Sensex index edged up a fraction to 58,136.36.
PerkinElmer Divests Businesses, Focus On Life Science and Diagnostics
Scott Peters
01 Aug, 2022
New York City
PerkinElmer said it plans to focus on high-margin and high-growth businesses and divest its non-core and low-margin businesses.
The $8 billion revenue company plans to focus on the $35 billion market into infectious diseases and autoimmune markets.
Perkin Elmer agreed to sell its non-core business for $2.45 billion to New Mountain Capital and the deal is expected to close in the first quarter of 2023.
New Mountain agreed to pay $2.3 billion in cash at the time of deal closure and $150 million of which will be payable contingent on the exit valuation New Mountain Capital receives on a sale or other capital events related to the business.
PerkinElmer after the closure of the deal will retain its life science and diagnostics businesses with total revenue of about $3.3 billion in 2022.
PerkinElmer's diagnostics division generates $2.9 billion in revenues autoimmune, allergy, and latent tuberculosis lead the sales followed by reproductive health and applied genomics.
The company plans to focus on building its businesses generating recurring revenues and recurring revenues account for 80% of total revenues and are expected to grow 10% a year.
The analytical, food, and enterprise services businesses are expected to generate approximately $1.3 billion in revenue in 2022 with a low-to-mid teens adjusted EBITDA margin.
These businesses include approximately 6,000 of PerkinElmer
Stocks Turn Lower In Choppy Session
Barry Adams
01 Aug, 2022
New York City
Stocks lacked direction after rallying for three days and bond yields continued to fall on the economic worries.
Stocks on Wall Street fell at the opening after rallying for three days on the worries that the sentiment may be ahead of market fundamentals and struggled to stay in the positive territory.
Benchmark indexes surged the most in July and logged the best monthly gains in two years on the hopes that the Federal Reserve may slow down the future rate hikes and avoid a recession.
Manufacturing activities rose in July for the 26-month in a row but the pace of growth slowed.
The index for manufacturing activities edged slightly lower to 52.8 from 53.0, according to the data released by the Institute for Supply Management Monday.
Investors are also looking ahead to economic data and earnings reports from about 1,200 companies this week.
July non-farm payrolls are scheduled to be released on Friday and economists are estimating an increase of at 250,000 after the labor market expanded by 372,000 in June.
ZoomInfo Technologies, Aflac, DaVita, ON Semiconductor, Rambus, and Activision Blizzard are scheduled to release earnings after the end of regular market trading hours.
Airbnb, Caterpillar, Cummins, Marriott, Starbucks, S&P Global, Uber are among the 410 companies scheduled to release earnings Tuesday.
The S&P 500 index decreased 0.3% to 4,118,25 and the Nasdaq Composite index fell 0.2% to 12,368.98.
Futures of crude oil declined $5.01 to $93.61 a barrel and natural gas increased 3 cents to $8.26 a unit.
The yield on 10-year Treasury notes continued to drift lower and fell 2.58% on the worries that the economy may slow faster than anticipated and 2-year notes edged lower to 2.892%.
Movers: Oil Companies, Boeing, PerkinElmer, Nio
Oil companies led the decliners after crude oil prices dropped more than 5% in New York and in European trading.
Exxon Mobil Corp and Chevron Corp declined 2.5% and Marathon Oil dropped 4%, Bakers Hughes and Schlumberger declined more than 3%.
Boeing Co increased 6.6% to $169.93 after financial news TV channel CNBC reported the Federal Aviation Administration has approved the inspection framework revisions permitting the plane maker to resume the delivery of its 787 Dreamliner.
Boeing defense units are also scheduled to vote on the new labor contract on Wednesday, hoping to avoid the strike.
PerkinElmer, Inc rose 6.5% to $163.09 after the diagnostics and life science company reported better-than-expected quarterly results and the company sold its non-core assets for $2.45 billion.
Chinese electric vehicles makers reported rising sales in July from a year ago but sales eased from June after Covid-19 lockdowns affected productions and sales.
Nio Inc increased 2.5% to $20.20 after the China-based electric vehicles maker said July deliveries increased 26.7% to 10,052 but fell from nearly 13,000 in June.
Li Auto Inc increased 1.4% to $33.33 after the China-based electric vehicles maker said July sports utilities deliveries rose 21.3% to 10,422 units but fell from June.
Eurozone Manufacturing Shrank In July
In European trading, benchmark indexes advanced and the eurozone manufacturing shrank in July.
S&P Global Purchasing Managers' Index decline was revised to a 25-month low of 49.8 in July from 52.1 in June.
The preliminary estimate showed the July index as 49.6.
Any reading below 50 indicates a contraction, and the manufacturing activities contracted for the first time in over two years.
The DAX index in Frankfurt rose 4.42 to close at 13,479.63, the CAC-40 index in Paris fell 11.64 or 0.2% to 6,436.86, and the FTSE 100 index in London declined 0.1% to or 10.01 to 7,143.42.
India Leads Asian Markets' Advance
Markets in Asia gained and the Sensex index in Mumbai led the gainers in the region after manufacturing activities rose at the fastest pace in eight months in July.
Domestic vehicle sales also continued to rebound in July as the demand for 2-wheeler and passenger and commercial vehicles soared.
The Sensex extended gains for the fourth day and jumped about 0.95%, the Nikkei index gained 0.7%, and the Hang Seng Index jumped 0.04%.
Movers: Boeing, Check Point Software, Jacobs Engineering, PerkinElmer, Global Payments, Nio
Barry Adams
01 Aug, 2022
New York City
Boeing Co increased 6.6% to $169.93 after financial news TV channel CNBC reported the Federal Aviation Administration has approved the inspection framework revisions permitting the plane maker to resume the delivery of its 787 Dreamliner.
Boeing defense units are also scheduled to vote on the new labor contract on Wednesday, hoping to avoid the strike.
Check Point Software Technologies fell 4.4% to $118.95 and second quarter revenues increased 9.0% to $571.1 million.
Net income in the quarter fell to $173.6 million or $1.36 a share from $186.0 million or $1.38 a diluted share a year ago.
Security subscriptions revenues increased 14% to $210 million as more corporations face rising cyber and ransomware attacks.
Jacobs Engineering Group Inc declined 5.1% to $130.10 after the company said revenues in the fiscal third quarter ended July 1 increased 7.0% to $3.8 billion.
Net income in the quarter increased to $196 million or $1.52 a diluted share from $165.8 million or 83 cents a diluted share a year ago.
The company expects fiscal fourth quarter adjusted operating earnings between $340 million and $360 million and adjusted earnings per share between $1.75 and $1.85.
The company confirmed that the strong dollar negatively impacted its full-year revenues, operating earnings and earnings per share estimates.
PerkinElmer, Inc rose 6.5% to $163.09 after the diagnostics and life science company reported better-than-expected quarterly results.
Second quarter revenues were flat at $1.23 billion and net income declined to $1179 million from $246 million a year ago. Diluted earnings per share fell to $1.42 from $2.19 a year ago.
Perkin Elmer also agreed to sell its non-core business for $2.45 billion to New Mountain Capital and the deal is expected to close in the first quarter of 2023.
The company also guided its third quarter revenue of approximately $1.02 to 1.03 billion and adjusted earnings per share to be in a range between $1.40 and 1.45.
For the full-year 2022, the company now estimates revenue between $4.60 and 4.64 billion and adjusted earnings per share between $7.80 and 7.90.
Global Payments Inc increased 6.9% to $130.79 said second quarter revenues edged up 6.7% to $2.28 billion from $2.14 billion a year ago.
In the quarter, the company swung to a loss of $673 million or $2.42 a diluted share from a profit of $263.5 million or 89 cents a diluted share a year ago.
The company swung to a loss largely on the account of a pre-tax charge of $833.1 million related to goodwill impairment charges.
Global Payments estimated full-year revenues in constant currencies adjusted revenues before the asset sale to fall between $8.48 billion and $8.55 billion.
The company reinforced its adjusted earnings per share on a constant currency basis outlook to fall between $9.53 and $9.75, reflecting growth of 17% to 20% over 2021.
Nio Inc increased 2.5% to $20.20 after the China-based electric vehicles maker said July deliveries increased 26.7% to 10,052 but fell from nearly 13,000 in June.
Li Auto Inc increased 1.4% to $33.33 after the China-based electric vehicles maker said July sports utilities deliveries rose 21.3% to 10,422 units but fell from June
U.S. Stocks Lack Direction, Oil Drops 4%
Barry Adams
01 Aug, 2022
New York City
Stocks on Wall Street fell at the opening after rallying for three days on the worries that the sentiment may be ahead of market fundamentals.
Benchmark indexes surged the most in July and logged the best monthly gains in two years on the hopes that the Federal Reserve may slow down the future rate hikes and avoid a recession.
Manufacturing activities rose in July for the 26-month in a row but the pace of growth slowed.
The index for manufacturing activities edged slightly lower to 52.8 from 53.0, according to the data released by the Institute for Supply Management Monday.
Investors are also looking ahead to economic data and earnings reports from about 1,200 companies this week.
July non-farm payrolls are scheduled to be released on Friday and economists are estimating an increase of at 250,000 after the labor market expanded by 372,000 in June.
ZoomInfo Technologies, Checkpoint Software, and Activision Blizzard are scheduled to release earnings after the market closes today.
Airbnb, Caterpillar, Cummins, Marriott, Starbucks, S&P Global, Uber are among the 410 companies scheduled to release earnings on Tuesday.
The S&P 500 index decreased 0.2% to 4,124,15 and the Nasdaq Composite index rose 0.2% to 12,408.95.
Futures of crude oil declined $5.12 to $93.51 a barrel and natural gas eased 33 cents to $7.81 a unit.
The yield on 10-year Treasury notes fell to 2.603% and on 2-year notes edged lower to 2.89%.
Oil companies led the decliners after crude oil prices dropped more than 5% in New York and in European trading.
Exxon Mobil Corp and Chevron Corp declined 2.5% and Marathon Oil dropped 4%, Bakers Hughes and Schlumberger declined more than 3%.
In European trading, benchmark indexes advanced and the eurozone manufacturing shrank in July.
S&P Global Purchasing Managers' Index decline was revised to a 25-month low of 49.8 in July from 52.1 in June.
The preliminary estimate showed the July index as 49.6.
Any reading below 50 indicates a contraction, and the manufacturing activities contracted for the first time in over two years.
The DAX index in Frankfurt, the CAC-40 index in Paris, and the FTSE 100 index in London rose 0.4%.
Markets in Asia gained and the Sensex index in Mumbai led the gainers in the region after manufacturing activities rose at the fastest pace in eight months in July.
Domestic vehicle sales also continued to rebound in July as the demand for 2-wheeler and passenger and commercial vehicles soared.
The Sensex extended gains for the fourth day and jumped about 0.95%, the Nikkei index gained 0.7%, and the Hang Seng Index jumped 0.04%.
Eurozone Growth In Second Quarter and Inflation In July Accelerate
Brian Turner
30 Jul, 2022
New York City
Eurozone GDP expanded unexpectedly in the second quarter ending in June, according to the flash estimate released by the eurostat.
On a quarterly basis, the GDP rose 0.7% after rising 0.5% in the first quarter.
On an annual basis, the GDP growth slowed to 4.0% in the second quarter after rising at 5.4% in the first quarter.
The revised estimate of the data is set to be released on August 17.
Despite the rising energy prices and persistent supply chain disruptions, the French economy expanded on rising exports and investments and Spain and Ital's economy grew on rising household spending.
France's GDP rose 0.5% from the first quarter when the economy shrank 0.2%, Spain's GDP advanced 1.1% from the previous quarter when the economy grew 0.2%.
Italy's GDP rose 1.0% in the second quarter after barely growing at 0.1% rate in the previous quarter.
Germany's GDP was flat after rising at 0.8% in the previous quarter and the growth slowed to 1.5% from 3.6% on an annual basis.
Eurozone Inflation Accelerates
The statistical agency also reported July inflation accelerated to 8.9% from June's 8.6% in its flash estimate Friday.
Core inflation excluding food, energy, and alcohol and tobacco rose to 4.0% from 3.7% in the previous month.
Estonia, Latvia, and Lithuania reported more than 20% inflation rate topping the inflation rate among all other currency block members.
3-day Rally Lifts S&P 500, Nasdaq to Best Monthly Gains in Two Years
Barry Adams
29 Jul, 2022
New York City
Wall Street indexes extended gains for the third day in a row after tech companies reported better-than-expected earnings and investors looked beyond the latest rate hike and recession worries.
Investors overlooked the latest release of preferred inflation measure data and surmised that the weaker GDP data may encourage the Fed in slowing the future rate hikes.
For the week, the Nasdaq Composite and the S&P 500 indexes advanced 4.0%.
The S&P 500 index increased 1.4% to 4,130.29 and the Nasdaq Composite index rose 1.9% to 12,390.35.
In July, the S&P 500 index gained 8.8%, its best monthly return in the year so far and the Nasdaq Composite index has jumped 12%, its best monthly performance in 2022.
Futures of crude oil increased $1.80 to $98.21 a barrel and natural gas gained 17 cents to $8.31 a unit.
PCE Jumps to 40-year High
The yield on 10-year Treasury notes rose to 2.703% and 2-year notes rose to 2.93% after the Fed's preferred measure of inflation, which always understates the inflation experienced by most families, rose 6.8% in June.
The personal consumption expenditure price index rose 6.8% in June, the fastest pace since 6.9% in 1982, according to the report released by the Bureau of Economic Analysis Friday.
The PCE index increased 1% from May, the largest monthly increase since February 1981.
Core PCE, which excluded food and energy prices, rose 4.8% in June after rising at 5.3% in February.
On a monthly basis, the core PCE index increased 0.6%, its largest monthly increase since April 2021.
Movers: Amazon, Apple, Chevron, ExxonMobil, Intel
Amazon.com, Inc surged 10.4% to $134.99 after the online retailer reported a loss but guided higher-than-expected third quarter revenues.
Revenues in the second quarter rose 7% to $121.23 billion.
In the second quarter, Amazon reported a net loss of $2.0 billion or 20 cents a diluted share compared to $7.8 billion or 76 cents a diluted share a year ago.
Second quarter 2022 net loss includes a pre-tax valuation loss of $3.9 billion from its investment in Rivian Automotive, Inc.
The online retailer guided third quarter revenues between $125 billion and $130 billion, an increase between 13% and 17% from a year ago.
Apple Inc jumped 3.1% to $162.04 in trading after the regular trading hours after the company reported June quarter revenues increased 2% to $83 billion.
Net income in the fiscal 2022 third quarter declined to $19.4 billion or $1.20 a diluted share from $21.7 billion or $1.331 a diluted share a year ago.
Chevron Corp increased 8.5% to $163.14 after the oil explorer, refiner, and distributor reported June quarter revenues soared more than 80% to $68.7 billion from $37.6 billion a year ago.
Net income in the quarter soared four-fold to $11.7 billion from $3.1 billion a year ago.
Diluted earnings per share soared to $5.95 from $1.60 a year ago.
Exxon Mobil Corp increased 4.5% to $96.65 after the energy company said June quarter revenues soared to $115.7 billion from $67.7 billion a year ago.
Net income in the quarter jumped to $17.9 billion from $4.5 billion a year ago.
Diluted earnings per share rose to $4.21 from $1.10 a year ago.
Exxon Mobil also announced a quarterly dividend of $3.72 billion or 88 cents compared to 87 cents a share or $3.7 billion a year ago.
Free cash flow in the quarter totaled $16.9 billion and shareholder distributions were $7.6 billion for the quarter, including $3.7 billion of dividends.
Intel Corp declined 10.7% to $35.41 after the semiconductor chipmaker reported June quarter revenues declined 22% to $15.3 billion, its largest decline in more than a decade.
Intel's gross margin plunged to 36.5% from 57.1% a year ago and swung to net loss of $0.5 billion from net income of $5.1 billion a year ago.
Quarterly loss was 11 cents a diluted share compared to income of $1.24 a year ago.
Procter & Gamble Co declined 4.8% to $140.90 after the consumer products maker reported net sales in the fiscal year 2022 fourth quarter ending in June increased 3% to $19.5 billion.
Net income rose 5% to $3.06 billion from $2.90 billion and diluted earnings per share rose to $1.21 from $1.13 a year ago.
Eurozone Growth Accelerates
Eurozone GDP expanded unexpectedly in the second quarter ending in June, according to the flash estimate released by the eurostat.
GDP rose 0.7% on a quarterly basis after rising at 0.5% in the first quarter.
On an annual basis, the GDP growth slowed to 4.0% in the second quarter after rising at 5.4% in the first quarter.
The revised estimate of the data is set to be released on August 17.
Despite the rising energy prices and persistent supply chain disruptions, the French economy expanded on rising exports and investments and Spain and Ital's economy grew on rising household spending.
France's GDP rose 0.5% from the first quarter when the economy shrank 0.2%, Spain's GDP rose 1.1% from the previous quarter when the economy grew 0.2%.
Italy's GDP rose 1.0% in the second quarter after rising at 0.1% rate in the previous quarter.
Germany's GDP was flat after rising at 0.8% in the previous quarter on a quarterly basis and the growth slowed to 1.5% from 3.6% on an annual basis.
The statistical agency also reported July inflation accelerated to 8.9% from June's 8.6% in its flash estimate Friday.
Core inflation excluding food, energy, and alcohol and tobacco rose to 4.0% from 3.7% in the previous month.
Estonia, Latvia, and Lithuania reported more than 20% inflation rate topping the inflation rate among all other currency block members.