Market Update
HP Inc said the company plans to cut global staff between 4,000 and 6,000 over the next three years.
22 Nov, 2022
Positive Sentiment Lifts U.S. and Europe Market Indexes
Barry Adams
22 Nov, 2022
New York City
Investors on Wall Street returned to add exposure to stocks after a flood of earnings from retailers were ahead of negative sentiment ahead of the upcoming holiday season.
Comments from Federal Reserve officials also weighed on the bond market as the ongoing 50-75 basis points rate increase debate continued.
Cleveland Federal Reserve President Loretta Mester was the latest to pour cold water on the talks of Fed pausing rates but sounded more supportive of rate hike by at least 50 basis points.
Mester added in an interview with CNBC on Monday that recent inflation data show signs of hope but supportive data over a longer period of time are needed before "we are returning to price stability as soon as we can..
European Indexes Rebound to 3-month High, Natural Gas In Focus
Bridgette Randall
22 Nov, 2022
New York City
European markets closed higher after falling in the previous session driven by higher commodities prices and a sharp reversal in energy prices.
Energy sector stocks led the rebound after natural gas prices soared more than 7% and crude oil prices traded as high as 3%.
Benchmark indexes closed at a 3-month high after investors focused on the latest batch of earnings and natural prices were in focus.
World economies are expected to slow down considerably in 2023, according to the latest report from the OECD.
Global economic growth is expected to slow to 2.2% in 2023 from 3.1% in 2022.
The Paris multilateral agency estimated GDP growth in the eurozone and the U.S. is expected to slow down to 0.5% from 3.3% and 1.8% respectively.
The DAX index increased 0.3% to 14,422.35, the CAC-40 index gained 0.4% to 6,657.53, and the FTSE 100 index added 1.03% to 7,452.84.
The euro held stable at $1.028 and the British pound fetched $1.186.
Natural gas prices rose for the third day more than 4% in a row and prices remained four times ahead of last three-year average.
Russia-based Gazprom said it plans to halt the flow of natural gas through Ukraine as of November 28.
Higher-than-average temperatures in the region have kept natural gas storage near capacity and helped to deal with energy crisis.
Brent crude oil rebounded 1.2% to $88.56 a barrel and TTF natural gas gained 7.2% to 124.10 euros a MWh.
The UK bond yields were in focus after the public sector borrowing surged in October.
Public sector borrowing, excluding banks, rose
Movers: Abercrombie & Fitch, Best Buy, Dell, Dick's Sporting. Dollar Tree, Medtronic, Zoom Video
Scott Peters
22 Nov, 2022
New York City
Abercrombie & Fitch soared 17.2% to $21.40 after the apparel retailer reported stronger-than-expected sales.
The parent of Hollister said third quarter sales declined 3% to $880 million and swung to a net loss of $2.2 million or 4 cents a share from $47 million or 77 cents a year ago.
Best Buy increased 11.4% to $78.82 after the electronics retailer reported a less-than-expected decline in sales.
The retailer said third quarter sales fell 11% to $10.59 billion and net income declined to $277 million or $1.22 a share from $499 million or $2 a share a year ago.
Dell Technologies increased 5.5% to $43.39 after the company reported quarterly results ahead-of-expectations.
Dell said third quarter revenue fell 6% to $24.7 billion and net income plunged 93% to $241 million or 33 cents a share.
In the quarter, services sales increased 6% to $5.8 billion but sales of hardware declined 10% to $18.9 billion from a year ago.
Dick's Sporting Goods rose 7.0% to $114.46 after the retailer lifted its same store outlook for the final quarter of this year.
Dick's said third quarter sales rose 7.7% to $3 billion and net income dropped 28% to $228 million or $2.45 a share from $317 million or $2.78 a year ago.
Dollar Tree declined 8.6% to $150.94 after the deep discount retailer reported better-than-expected sales and earnings.
The retailer said third quarter sales rose 8.1% to $6.9 billion and net income rose 23% to $267 million or $1.20 a share from $216 million or 96 cents a year ago.
Consolidated net sales for the year are now expected in the range of $28.14 billion to $28.28 billion, compared to the previous outlook range of $27.85 billion to $28.10 billion.
Diluted earnings per share for fiscal 2022 are expected to be in the lower half of the company
Retailers Earnings Power Wall Street Rebound
Barry Adams
22 Nov, 2022
New York City
Benchmark indexes on Wall Street traded higher after investors reacted to a slew of corporate earnings and reviewed more comments from the Federal Reserve officials.
Cleveland Federal Reserve President Loretta Mester was the latest to pour cold water on the talks of Fed pausing rates but sounded more supportive of rate hike by at least 50 basis points.
Mester added in an interview with CNBC on Monday that recent inflation data show signs of hope but supportive data over a longer period of time are needed before "we are returning to price stability as soon as we can..