Market Update
European Markets Advance and Look Beyond Rate Hike This Week
Bridgette Randall
18 Jul, 2022
New York City
European markets advanced following the optimism in New York and on the hopes that natural gas will start flowing again through Nord Stream 1 pipeline network this week.
European investors are also looking ahead at the European Central Bank's policy meeting on July 21 and a rate hike of 25 basis points followed by a 50 basis points increase at its September meeting.
The DAX index increased 0.7% to 12,962.08, the CAC-40 index added 0.9% to 6,90.20, and the FTSE 100 index advanced 0.98% to 7,228.69.
Investors also looked ahead to the Italian Prime Minister Mario Draghi's address to the parliament this Wednesday.
H & M Hennes & Mauritz AB declined 0.5% to skr 125.60 and the Swedish apparel retailer said it has stopped its retail selling in Russia since March and has started the process of winding down its operation in the country.
GSK Plc declined 3.3% to 1,386.60 after the British pharmaceutical maker completed the spinoff of its $36 billion consumer healthcare business.
Stellantis NV declined 0.3% to 12.0 euros after the Italian automotive group said it will end its joint venture with a company that makes and sells the Jeep brand in China.
Citigroup Revenues Rise On Fixed Income Trading Revenues
Scott Peters
15 Jul, 2022
New York City
Citigroup said second quarter revenues increased 19% to $19.6 billion on higher net interest income and strong volumes in the personal banking and institutional clients group.
Net income declined 27% to $4.5 billion on higher cost of credit and an 8% increase in expenses more than offset the 11% increase in revenues.
Diluted earnings per share declined 27% to $2.19 from $2.85 a year ago.
Return on average common equity fell to 9.7% from 13.0%.
Total deposits at the end of the quarter increased 1% to $1.3 trillion and loans declined 3% to $657.0 billion.
At the end of the June quarter, loan loss reserves were $16.0 billion or loan loss reserves of 2.44% compared to $19.2 billion or 2.88% a year ago.
Institutional Revenues Soar 20%
Institutional Clients Group increased 20% to $11.4 billion including higher revenues from loan hedges and partially offset by a decrease in Investment Banking revenues.
Markets segment revenues increased 25% to $5.3 billion driven by higher volatility leading to higher trading activities.
Fixed Income Markets revenues increased 31% to $4.1 billion on higher trading volumes in the rates, currencies and commodities businesses.
Equity Markets revenues rose 8% to $1.2 billion on strong equity derivatives trading.
Investment Banking revenues plunged 46% to $805 million on weak capital market and merger and acquisition activities and the decline in banking was offset by higher revenues in corporate lending.
During the quarter, Citigroup returned $1.3 billion to shareholders in the form of dividends and repurchases.
Personal Banking Revenues Rose 9%
U.S. personal banking revenues increased 9% to $4.1 billion and branded cards revenues increased 10% to $2.2 billion on interest on higher loan balances.
New accounts and card spend volumes increased 18%, while average loans increased 11%.
Retail services revenues increased 7% to $1.3 billion on higher interest on higher loan balances, partially offset by higher partner payments.
Retail banking revenues increased 6% to $656 million on higher deposit spreads and volumes.
Global Wealth Management Revenues Flat
Global wealth management revenues were flat at $1.9 billion were flat on lower investment fee, particularly in Asia, offset by growth in average deposits and loans.
Company and Stock
The 212-year old banking institution Citigroup provides financial services to individuals, corporations and governments and the bank has about 72 million credit card customers.
Citigroup soared 10.5% to $48.52 after the release of earnings and the stock has fallen 20.8% in the year so far.
Bank of New York Assets Under Management Fell 17%
Scott Peters
15 Jul, 2022
New York City
Bank of New York said revenues in the second quarter ending in June increased 7% to $4.3 billion driven by an increase of 4% in fees and 28% in net interest income.
Assets under management declined 17% to $1.9 trillion and under custody fell 4% to $43.0 trillion.
Net income declined 16% to $835 million or $1.03 a diluted share from $991 million or $1.13 a diluted share a year ago.
The company lifted its quarterly dividend by 9% to 37 cents a share.
Bank of New York Mellon added 4.8% to $42.37.
S&P 500 Rebounds 2%, Banks Advance
Barry Adams
15 Jul, 2022
New York City
U.S. stocks advanced after retail sales increased more than estimated following a surge in inflation reports earlier in the week.
Retail sales' increase in June was welcomed by investors after two inflation reports earlier in the week showed elevated levels for consumer and wholesale prices.
In volatile trading, stocks climbed higher on the strength in consumer spending and on the hopes that the Fed will lift rates no higher than 75 basis points at its next policy meeting in two weeks.
Investors drove banks higher after Citigroup, Wells Fargo, PNC Financial, and U.S. Bancorp reported earnings.
Banks are benefiting from the rising rate environments but earnings at some banks took a hit on the weaknesses in mortgage and private equity businesses.
Banks are also setting aside more capital to cover losses emerging from bad loans, but there are few signs of impending recession in the bank's results.
Retail sales in June rose 1% from the revised 0.1% decline in May, the Commerce Department reported today.
Sales rose 8.4% from a year ago and in the three month period to June surged 8.1% from the same period a year ago.
Retail sales are not adjusted for inflation which rose 1.3% from May indicating real retail sales fell.
Stocks advanced sharply after the release of strong retail sales data indicating consumers are resilient despite 4-decade high inflation.
Gasoline sales rose 3.6%, sales at bars and restaurants jumped 1%, furniture and home store sales jumped 1.4%, and online sales jumped 2.2%.
The S&P 500 index jumped 1.92% to 3,863.16 and the Nasdaq Composite index edged up 1.79% to 11,452.42.
Futures of crude oil increased $1.79 to $97.57 and natural gas rose 51 cents to $7.11 a unit.
The yield on 10-year U.S. Treasury notes edged down 3 ticks to 2.921%.
For the week, the S&P 500 declined 0.9% and the Nasdaq dropped 1.6%.
European Bond Yields Rise After Italy Plunges In Political Turmoil
European markets advanced following the surge in the U.S. and bond yields were in focus after Italy's prime minister resigned.
Prime Minister Mario Draghi offered his resignation after the coalition partner 5-Star Movement refused to back the government in a no confidence vote on a disagreement with a plan in combating rising consumer prices.
President Sergio Mattarella rejected Draghi's resignation and asked him to address the parliament next week.
Bond market was on alert after Draghi's resignation, and yield on 10-year Italian bonds rose to 3.260%, a one month high and spread with the German bond of similar maturity widened to 2.2% for the second day in a row.
Bond yields in the region edged slightly lower today but remained elevated on the Italian and British uncertainties.
The yield on the 10-year bond of Germany traded at 1.13%, France at 1.73% and the U.K. at 2.091%.
Conservative Party in the U.K. narrowed the list to 6 from 12 contenders to lead the party after the party's parliamentary members revolted against Prime Minister Boris Johnson, forcing his unscheduled departure last week.
The DAX index gained 2.76% to 12,864.72, the CAC-40 index increased 2.04% to 5,962.87, and the FTSE 100 index added 1.7% to 7,159.01.
China's Economy Barely Grew In June
China reported lower than expected economic growth in June quarter.
GDP expanded at 0.4% from a year ago falling well short of expectations between 0.7% and 1.2%, the National Bureau of Statistics said on Friday.
The economic activities fell sharply after months of lockdowns and dragged the GDP growth down from 4.8% annual rate in the first quarter.
The economy expanded at the slowest pace since the first quarter of 2020 when GDP shrank 6.8% after initial outbreak of coronavirus in Wuhan brough the second largest economy to a complete halt.
For the first half, the economy expanded at 2.5% rate well below the annual target rate of 5.5% set by the Chinese government.
Real estate sector continued to drag the economy with property investment dropping 9.4% but retail sales in June rose 3.1% driven by higher automobile sales.
Industrial production also jumped 3.9% from a year ago.
The delays in housing construction has sparked a wave of mortgage boycotts in several cities in the last few days after home buyers refused to pay for unfinished homes.
Movers: BlackRock, Bank of NY, Citigroup, PNC, Pinterest, State Street, UnitedHealth, Wells Fargo
Barry Adams
15 Jul, 2022
New York City
BlackRock gained 0.3% to $590.04 after the company said second quarter revenues declined 5% to $4.5 billion from $4.82 billion a year ago.
Net income fell 22% to $1.08 billion or $7.06 a diluted share from $1.38 billion or $8.92 a share.
Assets under management fell 11% to $8.5 trillion from $9.5 trillion a year ago.
Bank of New York Mellon added 4.8% to $42.37 after the company said second quarter revenues increased 7% to $4.3 billion driven by an increase of 4% in fees and 28% in net interest income.
Assets under management declined 17% to $1.9 trillion and under custody fell 4% to $43.0 trillion.
Net income declined 16% to $835 million or $1.03 a diluted share from $991 million or $1.13 a diluted share a year ago.
The company lifted its quarterly dividend by 9% to 37 cents a share.
Citigroup soared 10.5% to $48.52 after the bank said second quarter revenues increased 19% to $19.6 billion on higher net interest income and strong volumes in the personal banking and institutional clients group.
Net income declined 27% to $4.5 billion on higher cost of credit and an 8% increase in expenses more than offset the 11% increase in revenues.
Diluted earnings per share declined 27% to $2.19 from $2.85.
Total deposits at the end of the quarter increased 1% to $1.3 trillion and loans declined 3% to $657.0 billion.
At the end of the June quarter, loan loss reserves were $16.0 billion or loan loss reserves of 2.44% compared to $19.2 billion or 2.88% a year ago.
PNC Financial Services edged up 0.6% to $151.89 after the bank said second quarter revenues increased 9% to $5.1 billion from $4.7 billion a year ago largely driven by 22 basis points increase in net interest margin.
Net income rose to $1.5 billion or $3.39 per diluted share from $1.1 billion or $2.43 a share.
Deposits increased to $446.5 billion from $401.7 billion and loans increased to $304.8 billion from $255.6 billion a year ago.
Pinterest jumped 12.5% to $19.76 on a Wall Street Journal report that activist investor Elliott Management acquired a 9% stake in the company.
State Street traded higher 4.3% to $62.32 after the financial services provider said second quarter revenues declined 3% to $2.95 billion from a year ago.
Net income dropped 2% to $747 million from $763 million a year ago. Diluted earnings per share fell 8% to $1.91 from $2.07 a year ago.
At the end of the quarter, assets under management declined 11% to $3.47 trillion and under custody fell 2% to $38.2 trillion from a year ago.
U.S. Bancorp gained 4.9% to $46.42 said second quarter revenues increased 4% to $6.0 billion from $5.8 billion a year ago.
Net income fell 23.5% to $1.46 billion from $1.91 billion a year ago and diluted earnings per share declined to 99 cents from $1.28 a year ago..
Average total loans in the quarter increased 10.2% to $324.2 billion from $294.3 billion and average total deposits increased 6.4% to $456.5 billion from $429.2 billion a year ago.
UnitedHealth increased 4.9% to $526.82 after the health insurance company said second quarter revenues increased 13% to $80.5 billion.
Net income in the quarter increased to 16% to $5.0 billion from $4.3 billion a year ago. Diluted earnings per share increased to $5.34 from $4.46 a year ago.
The company increased its full year net earnings outlook to $20.45 to $20.95 per share and adjusted net earnings to $21.40 to $21.90 per share
Wells Fargo advanced 7.3% to $41.73 said second quarter revenues declined 16% to $17.0 billion from $20.3 billion a year ago.
Net income fell 48% to $3.2 billion from $3.7 billion a year ago and diluted earnings per share declined 46% to 74 cents from $1.38 a year ago.
Net Interest income rose 16% to $10.2 billion and non-interest income plunged 40% to $6.8 billion from a year ago.
Noninterest income decreased primarily from the weak results in private equity and venture capital business and fall in revenues because of lower origination of mortgage loans and lower gains from the re-securitization of loans purchased from securitization pools.
At the end of the quarter, total deposits increased 1% to $1.444 trillion and total loans rose 8% to $925.6 billion.
Morgan Stanley Lifted Dividend, Launched New Stock Buyback Plan
Scott Peters
14 Jul, 2022
New York City
Morgan Stanley dropped 0.9% to $74.26 after the financial services company reported net revenues in the second quarter ending in June fell 11% to $13.1 billion compared to $14.8 billion a year ago.
Net income fell 29% to $2.5 billion or $1.39 per diluted share compared to net income of $3.5 billion or $1.85 per diluted share for the same period a year ago.
Uncertain macroeconomic environment and volatile markets impacted institutional securities revenues.
Segment revenues declined 14% to $6.1 billion from $7.1 billion.
Wealth management segment revenues declined to $5.7 billion from $6.1 billion, negatively impacted by mark-to-market losses on investments associated with certain employee deferred compensation plans.
The business added net new assets of $53 billion in the quarter and $195 billion in the first half of 2022.
Morgan Stanley repurchased $2.7 billion of its own stock and completed its previously announced $12 billion share repurchase program.
The company announced a new $20 billion stock repurchase program and also lifted its quarterly dividend 11% to 77.5 cents payable on August 15, 2022 to common shareholders of record on July 29, 2022.
JPMorgan Net Falls 28%
Scott Peters
14 Jul, 2022
New York City
JPMorgan Chase declined 3.8% to $107.67 after the bank said second quarter revenues increased 1% to $30.7 billion.
Net income in the quarter fell 28% to $8.64 billion from $11.95 billion and diluted earnings per share fell to $2.76 from $3.78.
Return on equity fell to 13% from 18% and return on tangible equity dropped to 17% from 23% a year ago.
U.S. Retail Sales Advanced 1% In June
Brian Turner
15 Jul, 2022
New York City
U.S. stocks advance after retail sales increased more than estimated indicating resilient consumer spending in the face of 4-decade higher inflation.
Retail sales in June rose 1% from the revised 0.1% decline in May, the Commerce Department reported today.
Sales rose 8.4% from a year ago and in the three month period to June surged 8.1% from the same period a year ago.
Monthly sales in May were revised to 0.1% from the 0.3% fall in the previous estimate.
Retail sales are not adjusted for inflation which rose 1.3% from May indicating real retail sales fell.
Stocks advanced sharply after the release of strong retail sales data indicating consumers are resilient despite 4-decade high inflation.
Gasoline sales rose 3.6%, sales at bars and restaurants jumped 1%, furniture and home store sales jumped 1.4%, and online sales jumped 2.2%.
The July 2022 Advance Monthly Retail report is scheduled for release on August 17, 2022 at 8:30 a.m. EDT.
European Bond Yields Rise After Italy Plunges In Political Turmoil
Bridgette Randall
15 Jul, 2022
Frankfurt
European markets advanced and bond yields were in focus after Italy's prime minister resigned.
Prime Minister Mario Draghi offered his resignation after the coalition partner 5-Star Movement refused to back the government in a no confidence vote on a disagreement with a plan in combating rising consumer prices.
President Sergio Mattarella rejected Draghi's resignation and asked him to address the parliament next week.
Bond market was on alert after Draghi's resignation, and yield on 10-year Italian bonds rose to 3.134%, a one month high and spread with the German bond of similar maturity widened to 2.2% for the second day in a row.
Bond yields in the region edged slightly lower today but remained elevated on the Italian and British uncertainties.
The yield on the 10-year bond of Germany traded at 1.16%, France at 1.77% and the U.K. at 2.098%.
Conservative Party in the U.K. narrowed the list to 6 from 12 contenders to lead the party after parliamentary members of the party revolted against Prime Minister Boris Johnson forcing his unscheduled departure last week.
The DAX index gained 1.76% to 12,754.25, the CAC-40 index increased 0.76% to 5,962.87, and the FTSE 100 index added 1.2% to 7,123.81.
The euro flirted near the U.S. dollar parity and closed at $1.002.
U.S. Stocks Gain After Retail Sales Rose 1% In June
Barry Adams
15 Jul, 2022
New York City
U.S. stocks advance after retail sales increased more than estimated indicating resilient consumer spending in the face of 4-decade higher inflation.
Market indexes popped at the opening after Citibank and Wells Fargo reported better than expected earnings.
Earnings at both banks fell from a year ago but met investors' expectations and the banks benefited from the rising rate environment.
Retail sales in June rose 1% from the revised 0.1% decline in May, the Commerce Department reported today.
Sales rose 8.4% from a year ago and in the three month period to June surged 8.1% from the same period a year ago.
Retail sales are not adjusted for inflation which rose 1.3% from May indicating real retail sales fell.
Stocks advanced sharply after the release of strong retail sales data indicating consumers are resilient despite 4-decade high inflation.
Gasoline sales rose 3.6%, sales at bars and restaurants jumped 1%, furniture and home store sales jumped 1.4%, and online sales jumped 2.2%.
The S&P 500 index jumped 1.07% to 3,830.46 and the Nasdaq Composite index edged up 1.1% to 11,375.19
European Bond Yields Rise After Italy Plunges In Political Turmoil
European markets advanced and bond yields were in focus after Italy's prime minister resigned.
Prime Minister Mario Draghi offered his resignation after the coalition partner 5-Star Movement refused to back the government in a no confidence vote on a disagreement with a plan in combating rising consumer prices.
President Sergio Mattarella rejected Draghi's resignation and asked him to address the parliament next week.
Bond market was on alert after Draghi's resignation, and yield on 10-year Italian bonds rose to 3.134%, a one month high and spread with the German bond of similar maturity widened to 2.2% for the second day in a row.
Bond yields in the region edged slightly lower today but remained elevated on the Italian and British uncertainties.
The yield on the 10-year bond of Germany traded at 1.16%, France at 1.77% and the U.K. at 2.098%.
Conservative Party in the U.K. narrowed the list to 6 from 12 contenders to lead the party after parliamentary members of the party revolted against Prime Minister Boris Johnson forcing his unscheduled departure last week.
The DAX index gained 1.76% to 12,754.25, the CAC-40 index increased 0.76% to 5,962.87, and the FTSE 100 index added 1.2% to 7,123.81.
China's Economy Barely Grew In June
China reported lower than expected economic growth in June quarter.
GDP expanded at 0.4% from a year ago falling well short of expectations between 0.7% and 1.2%, the National Bureau of Statistics said on Friday.
The economic activities fell sharply after months of lockdowns and dragged the GDP growth down from 4.8% annual rate in the first quarter.
The economy expanded at the slowest pace since the first quarter of 2020 when GDP shrank 6.8% after initial outbreak of coronavirus in Wuhan brough the second largest economy to a complete halt.
For the first half, the economy expanded at 2.5% rate well below the annual target rate of 5.5% set by the Chinese government.
Real estate sector continued to drag the economy with property investment dropping 9.4% but retail sales in June rose 3.1% driven by higher automobile sales.
Industrial production also jumped 3.9% from a year ago.
The delays in housing construction has sparked a wave of mortgage boycotts in several cities in the last few days after home buyers refused to pay for unfinished homes.
China's Economy Barely Grows In June Quarter
Brian Turner
15 Jul, 2022
New York City
China reported lower than expected economic growth in June quarter.
GDP expanded at 0.4% from a year ago falling well short of expectations between 0.7% and 1.2%, the National Bureau of Statistics said on Friday.
The economic activities fell sharply after months of lockdowns and dragged the GDP growth down from 4.8% annual rate in the first quarter.
The economy expanded at the slowest pace since the first quarter of 2020 when GDP shrank 6.8% after initial outbreak of coronavirus in Wuhan brough the second largest economy to a complete halt.
For the first half, the economy expanded at 2.5% rate well below the annual target rate of 5.5% set by the Chinese government.
Real estate sector continued to drag the economy with property investment dropping 9.4% but retail sales in June rose 3.1% driven by higher automobile sales.
Industrial production also jumped 3.9% from a year ago.
The delays in housing construction has sparked a wave of mortgage boycotts in several cities in the last few days after home buyers refused to pay for unfinished homes.
Stocks Drop After Banks Report Weak Earnings
Barry Adams
14 Jul, 2022
New York City
U.S. stocks trimmed losses in volatile trading after the wholesale price index jumped and bank earnings disappointed investors.
The S&P 500 index declined 0.3% to 3,790.31 and the Nasdaq Composite index gained 0.03% to 11,251.90.
The volatile energy prices dropped after the release of the wholesale price report on the worries that the economy may slow down faster than estimated and the Middle Eastern nations may keep the elevated supply flowing.
Futures of crude oil prices increased 15 cents to $96.45 and natural gas edged down to $6.67 a unit.
The yield on 10-year notes increased to 2.96%.
The producer price index soared 11.3% in June from a year ago and increased 1.1% on a monthly basis, the Bureau of Labor Statistics reported Thursday.
On a monthly basis, the producer price index increased 0.9% in May and jumped 0.4% in April.
Core producer price index, excluding food and energy, rose 6.4% in June.
Banks were in focus after JP Morgan earnings disappointed investors and the largest bank suspended stock buybacks to preserve capital and lifted reserves for bad loans.
JPMorgan Chase declined 3.5% to $108.00 after the bank said second quarter revenues increased 1% to $30.7 billion.
Net income in the quarter fell 28% to $8.64 billion from $11.95 billion and diluted earnings per share fell to $2.76 from $3.78.
Return on equity fell to 13% from 18% and return on tangible equity dropped to 17% from 23% a year ago.
Morgan Stanley dropped 0.4% to $74.69 after the financial services company reported net revenues in the second quarter ending in June fell to $13.1 billion compared to $14.8 billion a year ago.
Net income fell to $2.5 billion or $1.39 per diluted share compared to net income of $3.5 billion or $1.85 per diluted share for the same period a year ago.
European Markets Drop 2%
European markets extended losses on the worries of faster increase in interest rates and mixed earnings reports.
The DAX index declined 1.9% to 12,519.66, the CAC-40 index fell 1.4% to 5,915.42, and the FTSE index dropped 1.6% to 7,039.81.
The euro dropped to $0.99, the level last seen in 2002.
Benchmark indexes dropped on the worries of rising inflation after the U.S. wholesale prices rose 11.3% stoking the fears of faster rate increases.
The eurozone economic growth in 2022 was lowered to 2.6% from the previous estimate of 2.7% released three months ago, the European Commission said in its summer report on Thursday.
The commission downgraded the outlook citing the surging inflation, ongoing China coronavirus challenges, and continued war in Ukraine.
The estimate of the economic growth in 2023 was also lowered to 1.4% from the Spring estimate of 2.3%.
Germany's growth outlook was lowered to 1.4% and 1.3% and France's estimate was lowered to 2.4% and 1.4% in 2022 and 2023 respectively.
However, Spain's economy is expected to expand 4.0% in 2022 and 2.1% in 1.4% in 2023 and Italy's economy is set to grow 2.9% and 0.9% respectively.
Asian Markets Ease On Rate Path Worries
Market indexes in Asia declined on the worries of global economic conditions and rising inflation.
The Nikkei 225 index increased 0.6% to 26,643.39, the Sensex index declined 0.2% to 53,416.15, and the Hang Seng index fell 0.2% to 20,751.21.
Japan's industrial production fell more than initially estimated in May, the Ministry of Economy, Trade and Industry said on Thursday.
Industrial production fell a seasonally adjusted 7.5% in May from the previous estimate of 7.2%.
Singapore unexpectedly lifted its key lending rate and the central bank revised higher its estimate of overall inflation to between 5.0% and 6.0%from the previous range of 4.5% to 5.5%.
India's trade deficit in June surged nearly three-fold to $26.2 billion from $9.2 billion a year ago.
Exports in June soared 23.5% in June to $40 billion and imports soared 57.6% to $66.31 billion resulting in a trade deficit of $26.2 billion.
Movers: Cisco, Conagra, Ericsson, JPMorgan, Morgan Stanley, Taiwan Semiconductor
Barry Adams
14 Jul, 2022
New York City
U.S. stocks rebounded from morning losses and wholesale inflation surged.
The S&P 500 index declined 0.5% to 3,780.81 and the Nasdaq Composite index dropped 0.2% to 11,226.51.
The volatile energy prices dropped after the release of the wholesale price report on the worries that the economy may slow down faster than estimated and the Middle Eastern nations may keep the elevated supply flowing.
Futures of crude oil prices declined $4.40 to $91.85 and natural gas edged down to $6.68 a unit.
The producer price index soared 11.3% in June from a year ago and increased 1.1% on a monthly basis, the Bureau of Labor Statistics reported Thursday.
On a monthly basis, the producer price index increased 0.9% in May and jumped 0.4% in April.
Core producer price index, excluding food and energy, rose 6.4% in June.
Banks were in focus after JP Morgan earnings disappointed investors.
JPMorgan Chase declined 3.8% to $107.67 after the bank said second quarter revenues increased 1% to $30.7 billion.
Net income in the quarter fell 28% to $8.64 billion from $11.95 billion and diluted earnings per share fell to $2.76 from $3.78.
Return on equity fell to 13% from 18% and return on tangible equity dropped to 17% from 23% a year ago.
Morgan Stanley dropped 0.9% to $74.26 after the financial services company reported net revenues in the second quarter ending in June fell to $13.1 billion compared to $14.8 billion a year ago.
Net income fell to $2.5 billion or $1.39 per diluted share compared to net income of $3.5 billion or $1.85 per diluted share for the same period a year ago.
Telefonaktiebolaget LM Ericsson ADR Class B declined 9.2% to $6.78 after the telecom networking equipment maker said revenues in the June quarter rose 14% to skr 62.5 billion from skr 54.9 billion.
Net income rose 19% to skr 4.7 billion or skr 1.35 per share from skr 3.9 billion or skr 1.10 a share a year ago.
Free cash flow in the quarter increased to skr 4.4 billion from skr 4.1 billion a year ago.
Experian Plc gained 1.9% to $31.45 after the British credit reporting service reported revenues in the latest quarter increased 7% and jumped 9% on a constant currency basis.
North America revenues rose 8% and represented 65% of total revenues of the company.
The credit reporting service guided organic revenue growth in the range of 7% to 9%, total revenue growth in the range of 8% to 10% and modest margin accretion based on constant exchange rates.
Conagra Brands declined 7.9% to $32.89 after the company reported sales in fiscal year fourth quarter ending in May increased 6.2% to $2.9 billion.
The 6.8% increase in organic net sales was driven by a 13.2% improvement in price/mix, which was partially offset by a 6.4% decrease in volume.
Higher input costs and wages costs dragged the net income.
In the quarter, net income decreased 48.6% to $159 million or $0.33 per diluted share from $309.5 million or 64 cents a share a year ago.
Cisco Systems declined 1.1% to $42.26 after Goldman Sachs downgraded stock to "neutral" from "overweight" citing weakening enterprise spending budgets.
Taiwan Semiconductor increased 2.5% to $83.30 after second quarter revenues increased 36.6% to $18.16 billion from a year ago and jumped 3.4% from the previous quarter.
Gross margin for the quarter was 59.1%, operating margin was 49.1%, and net profit margin was 44.4%.
Earnings in Taiwanese dollars increased 78% to NT$9.14 from NT$5.18 a year ago.
The semiconductor chip maker also lifted its third quarter revenues outlook to between $19.8 billion and $20.6 billion.
European Movers: Ashmore, Ericsson, Experian, Deutsche Telekom, Hugo Boss
Bridgette Randall
14 Jul, 2022
New York City
European markets extended losses on the worries of faster increase in interest rates and mixed earnings reports.
The DAX index declined 1.9% to 12,509.64, the CAC-40 index fell 1.6% to 5,902.25, and the FTSE index dropped 1.96% to 7,015.10.
The euro extended its losses to a low last seen since 2002 of $0.99.
Benchmark indexes dropped on the worries of rising inflation after the U.S. wholesale prices rose 11.3% stoking the fears of faster rate increases.
The eurozone economic growth in 2022 was lowered to 2.6% from the previous estimate of 2.7% released three months ago, the European Commission said in its summer report on Thursday.
Ericsson dropped 9.2% to skr 71.88 after the telecom equipment maker said revenues in the June quarter rose 14% to skr 62.5 billion from skr 54.9 billion.
Net income rose 19% to skr 4.7 billion or skr 1.35 per share from skr 3.9 billion or skr 1.10 a share a year ago.
Free cash flow in the quarter increased to skr 4.4 billion from skr 4.1 billion a year ago.
Experian Plc gained 2.8% to 2,647.05 pence after the British credit reporting service reported revenues in the latest quarter increased 7% and jumped 9% on a constant currency basis.
Hugo Boss gained 2.5% to 55.80 euros after the high-end men's fashion company lifted its financial year outlook.
full-year sales are expected to increase between 3.3 billion and 3.5 billion euros and operating earnings between 285 million and 310 million euros.
Sales in the second quarter rose 29% to 878 million euros and jumped 34% when adjusted for currencies and operating earnings of 100 million euros.
Deutsche Telekom declined 2.4% to 18.73 euros after the Germany telecom operator agreed to sell 51% stake in GD Tower at 17.5 billion euros enterprise value.
The company will retain 49% stake in the tower assets in Germany and Austria and plans to use estimated proceeds of 10.7 billion euros to replay its debt.
Ashmore Group declined 6.3% to 192.0 pence after the asset management firm said assets under management fell $14.3 billion in three months to June, comprising net outflows of $6.6 billion and negative investment performance of $7.7 billion.
Total assets under management declined to $64.0 billion at the end of June from $78.3 billion at the end of March.
"The net outflows were concentrated in the local currency and blended debt themes, with substantially smaller net outflows in the external debt, equities and corporate debt themes.
The local currency net redemptions were primarily from low margin institutional accounts, including overlay outflows of US$2.5 billion reflecting lower market levels," Ashmore said in a quarterly update to investors.
Faster Rate Hike Worries Markets After Wholesale Price Report
Barry Adams
14 Jul, 2022
New York City
U.S. stocks accelerated declines after the wholesale prices jumped and bank earnings disappointed investors.
The S&P 500 index declined 2.1% to 3,724.11 and the Nasdaq Composite index dropped 1.9% to 11,032.01.
The volatile energy prices dropped after the release of the wholesale price report on the worries that the economy may slow down faster than estimated and the Middle Eastern nations may keep the elevated supply flowing.
Futures of crude oil prices declined $4.40 to $91.85 and natural gas edged down to $6.68 a unit.
The producer price index soared 11.3% in June from a year ago and increased 1.1% on a monthly basis, the Bureau of Labor Statistics reported Thursday.
On a monthly basis, the producer price index increased 0.9% in May and jumped 0.4% in April.
Core producer price index, excluding food and energy, rose 6.4% in June.
Banks were in focus after JP Morgan earnings disappointed investors.
JPMorgan Chase declined 3.8% to $107.67 after the bank said second quarter revenues increased 1% to $30.7 billion.
Net income in the quarter fell 28% to $8.64 billion from $11.95 billion and diluted earnings per share fell to $2.76 from $3.78.
Return on equity fell to 13% from 18% and return on tangible equity dropped to 17% from 23% a year ago.
Morgan Stanley dropped 0.9% to $74.26 after the financial services company reported net revenues in the second quarter ending in June fell to $13.1 billion compared to $14.8 billion a year ago.
Net income fell to $2.5 billion or $1.39 per diluted share compared to net income of $3.5 billion or $1.85 per diluted share for the same period a year ago.