Market Update
S&P, Nasdaq Advance 1%, Mortgage Rates Continue to Rise
Barry Adams
23 Jun, 2022
New York City
U.S. stocks opened higher and in volatile trading advanced after investors added positions in all sectors.
Investors disregarded fears of economic recession and elevated energy prices.
U.S. weekly jobless claims declined 2,000 to a seasonally adjusted 229,000 in the week ended June 18, the Labor Department said today.
The previous week's claims were revised 2,000 higher to 231,000.
The 4-week moving average was 223,500, an increase of 4,500 from the previous week's revised average.
The 4-week moving average of insured unemployment remained near 1%, historic multi-decade low.
The S&P 500 increased 0.8% to 3,789.79 and the Nasdaq Composite advanced 1.3% to 11,196.28.
The yield on 10-year Treasury notes declined 14 basis points to 3.018% but mortgage rates stayed increased to 5.81%, a 14-year high according to the latest weekly data from Freddie Mac survey.
30-year fixed-rate mortgage averaged 5.81% with an average 0.8 point as of June 23, 2022, up from last week when it averaged 5.78%.
A year ago at this time, the 30-year fixed-rate averaged 3.02%.
Futures of crude oil fell 61 cents to $105.51 a barrel and natural gas fell 43 cents to $6.41 a unit.
The S&P 500 and the Nasdaq Composite indexes opened higher and advanced in a volatile pattern as investors snapped up beaten down and leading tech stocks.
Apple Inc, Microsoft Corp, Alphabet Inc, Meta Platforms, and Amazon added between 1% and 1.8%.
Occidental Petroleum Corp gained 1.3% to $56.47 after Berkshire Hathaway increased investment by $529 million and lifted its stake to 16.3% in the oil refiner and explorer.
Berkshire now owns 152.7 million shares worth $8.5 billion in the company after adding a total of 9.5 million shares in the last week.
Berkshire also controls a large stake in Chevron
On Wednesday, President Joe Biden is expected to ask Congress to drop federal gasoline and diesel taxes for three months.
Weaker oil prices dragged down stocks in the energy complex.
Chevron and Marathon Oil dropped more than 1.5%, Exxon Mobil declined 1.6% and Schlumberger NV fell 3.7% after president Biden's administration urged Congress to drop federal tax on gasoline and diesel sales for the next three months.
Federal tax on regular gasoline is 18 cents and diesel 24 cents a gallon.
Lower tax at the pump could provide relief to consumers but it can also lift the fuel demand worsening tight supply.
KB Home surged 8.7% to $28.49 and yesterday after the market closed the company reported sales in the second quarter ending in May increased 19% to $1.72 billion and net income soared 47% to $210 million.
The home builder delivered 3,469 homes, matching the deliveries in the quarter a year ago and average selling price increased 21% to $494,300.
The home builder guided sales in the fiscal year between $7.3 billion and $7.5 billion and average home selling price of $500,000.
Growth Worries Plague European Markets
European markets extended losses for the second day in a row on the worries that the region's economy is slowing faster than anticipated.
The eurozone private sector expanded at the slowest pace in a year after service sector growth eased and the manufacturing sector contracted for the first time in two years.
The flash composite output index dropped to a 16-month low of 51.9 in June from 54.8 in the previous month, the preliminary data from S&P Global.
Separate surveys also showed a sharp decline in business activities in France and Germany, two largest economies in the currency block.
The DAX index fell 1.04% to 13,027.62, the CAC-40 index declined 0.2% to 5,907.52, and the FTSE 100 index dropped 0.5% to 7,055.07.
Oil companies extended losses after crude oil prices declined 2% in the region.
In volatile trading BP Plc and Shell Plc traded sideways with a negative bias.
Mining companies declined for the second day on the recession worries in the U.S.
Antofagasta Glencore, Anglo American declined between 1% and 4%.
Siemens Energy dropped 3.2% to 15.27 euros and Air Liquid edged down 0.5% to 129.56 euros after the two companies announced a joint venture to make industrial scale hydrogen electrolyzers.
Siemens Gamesa Renewable Energy SA was nearly unchanged at 17.85 euros after the wind turbine maker won an order of 60 turbines to supply Moray West Wind Farm located in Scotland.
Assicurazioni Generali gained 0.2% to 19.99 euros after the Italian insurance company announced a group organization structure.
Asian Markets Extend Gains
Across Asia, market indexes closed higher after energy prices eased.
Crude oil prices in Asia declined for the second day and extended 2-day losses to 5.5% and natural gas prices dropped 0.6% in the region on the worries of a global recession.
Indexes in China gained on local media reports suggesting that the government is considering extending the tax break for electric vehicles.
Separately, an executive committee also approved a plan for fintech and large digital payment network operators.
The Nikkei index in Japan closed marginally higher and resource stocks led the decliners.
The Nikkei index in Tokyo added 0.08% to 26,171.25 and indexes in Hong Kong gained 1.3% to 21,273.34 and in Shanghai rose 1.6% to 3,320.15.
Sumitomo Metal Mining dropped 6% and Inpex Corp fell 2.6%.
In Mumbai, stocks advanced for the second day after the latest minutes of a meeting from the monetary policy committee stressed the direction of inflation rather than its level.
The Sensex index gained 709.54 or 0.9% to 52,265.23 and the Nifty 50 index advanced 0.93% to 15,556.65.
Automakers led the gainers on earnings optimism in the current quarter.
European Markets Turn Lower On Growth Slow Down Worries
Bridgette Randall
23 Jun, 2022
New York City
European markets extended losses for the second day in a row on the worries that the region's economy is slowing faster than anticipated.
The euro zone private sector expanded at the slowest pace in a year after service sector growth eased and the manufacturing sector contracted for the first time in two years.
The flash composite output index dropped to a 16-month low of 51.9 in June from 54.8 in the previous month, the preliminary data from S&P Global.
Separate surveys also showed a sharp decline in business activities in France and Germany, two largest economies in the currency block.
The DAX index fell 1.04% to 13,027.62, the CAC-40 index declined 0.2% to 5,907.52, and the FTSE 100 index dropped 0.5% to 7,055.07.
Oil companies extended losses after crude oil prices declined 2% in the region.
In volatile trading BP Plc and Shell Plc traded sideways with a negative bias.
Mining companies declined for the second day on the recession worries in the U.S.
Antofagasta Glencore, Anglo American declined between 1% and 4%.
Siemens Energy dropped 3.2% to 15.27 euros and Air Liquid edged down 0.5% to 129.56 euros after the two companies announced a joint venture to make industrial scale hydrogen electrolyzers.
Siemens Gamesa Renewable Energy SA was nearly unchanged at 17.85 euros after the wind turbine maker won an order of 60 turbines to supply Moray West Wind Farm located in Scotland.
Assicurazioni Generali gained 0.2% to 19.99 euros after the Italian insurance company announced a group organization structure.
Asian Markets Extend Gains
Across Asia, market indexes closed higher after energy prices eased.
Crude oil prices in Asia declined for the second day and extended 2-day losses to 5.5% and natural gas prices dropped 0.6% in the region on the worries of a global recession.
Indexes in China gained on local media reports suggesting that the government is considering extending the tax break for electric vehicles.
Separately, an executive committee also approved a plan for fintech and large digital payment network operators.
The Nikkei index in Japan closed marginally higher and resource stocks led the decliners.
The Nikkei index in Tokyo added 0.08% to 26,171.25 and indexes in Hong Kong gained 1.3% to 21,273.34 and in Shanghai rose 1.6% to 3,320.15.
Sumitomo Metal Mining dropped 6% and Inpex Corp fell 2.6%.
In Mumbai, stocks advanced for the second day after the latest minutes of meeting from the monetary policy committee stressed the direction of inflation rather than its level.
The Sensex index gained 709.54 or 0.9% to 52,265.23 and the Nifty 50 index advanced 0.93% to 15,556.65.
Automakers led the gainers on earnings optimism in the current quarter.
Asian Markets Advance On Oil Weakness
Arjun Pandit
23 Jun, 2022
New York City
Across Asia, market indexes closed higher after energy prices eased.
Crude oil prices in Asia declined for the second day and extended 2-day losses to 5.5% and natural gas prices dropped 0.6% in the region on the worries of a global recession.
Indexes in China gained on local media reports suggesting that the government is considering to extend tax break for electric vehicles.
Separately, an executive committee also approved a plan for fintech and large digital payment network operators.
The Nikkei index in Japan closed marginally higher and resource stocks led the decliners.
The Nikkei index in Tokyo added 0.08% to 26,171.25 and indexes in Hong Kong gained 1.3% to 21,273.34 and in Shanghai rose 1.6% to 3,320.15.
Sumitomo Metal Mining dropped 6% and Inpex Corp fell 2.6%.
In Mumbai, stocks advanced for the second day after the latest minutes of meeting from the monetary policy committee stressed the direction of inflation rather than its level.
The Sensex index gained 709.54 or 0.9% to 52,265.23 and the Nifty 50 index advanced 0.93% to 15,556.65.
Automakers led the gainers on earnings optimism in the current quarter.
KB Home Sales Jump 19% and Home Backlog Value Soars 43%
Scott Peters
22 Jun, 2022
New York City
KB Home sales and earnings rose despite supply chain disruption challenges and rising mortgage rates.
Consolidated sales in the second quarter ending in May increased 19% to $1.72 billion and net income soared 47% to $210 million.
Diluted earnings per share surged 55% to $2.32 from $1.50 a year ago.
The home builder delivered 3,469 homes, matching the deliveries in the quarter a year ago and average selling price increased 21% to $494,300.
Price increase played a key role in lifting gross margin 390 basis points to 25.3% offset by higher construction cost and elevated lumber prices and increased expenses to support current operations.
Selling, general and administrative expenses as a percentage of housing revenues improved 30 basis points to 9.8%, primarily reflecting lower external sales commissions and increased operating leverage from higher revenues, partly offset by higher expenses to support growth.
Operating income margin Improved 410 Basis Points to 15.4% and net order value increased 4% to $2.12 Billion and ending backlog value soared 43% to $6.12 Billion.
Regional Sales
Average sales price in the West Coast region increased to $739,800 from $622,000, in the Southwest region rose to $424,000 from $360,900, in the Central region advanced to $387,000 from $317,000, and in the Southeast region escalated to $359,000 from $293,000.
The home builder delivered 1,029 homes in the West Coast region, 685 in the Southeast region, 1,117 in the Central region, and 638 in the Southeast region.
The company delivered a total of 3,469 homes compared to 3,504 a year ago.
The home builder received 1,088 new home orders in the West Coast region, 719 in the Southwest region, 1,300 in the Central region, and 807 in the Southeast region.
The company received a total of 3,914 new home orders totaling $2.12 billion compared to 4,300 totaling $2.04 billion a year ago.
Total home order backlog increased to 12,331 homes valued at $6.1 billion compared to 10,034 homes valued at $4.3 billion.
Guidance and Outlook
The home builder guided sales in the fiscal year between $7.3 billion and $7.5 billion and average home selling price of $500,000.
In the fiscal year 2022, the company guided homebuilding operating income as a percentage of revenues in the range of 16.0% to 16.6%, housing gross profit margin in the range of 25.6% to 26.2%, assuming no inventory-related charges.
Selling, general and administrative expenses as a percentage of housing revenues are estimated in the range of 9.3% to 9.7%.
The home builder also guided for a tax rate of 25.0% and return on equity to exceed 27%.
Company and Stock
KB Home is headquartered in Los Angeles, California and has built 655,000 homes in the company's 65-year history.
In regular trading hours before the release of earnings news, KB Home stock increased 2.4% to $26.23.
In the year so far, KB Home stock has declined 39.2% to $26.23.
Stocks Lacked Direction as Powell Testifies to Congress
Barry Adams
22 Jun, 2022
New York City
Stocks in volatile trading struggled to advance after the Fed Chairman reiterated the central bank's commitment to fight inflation.
Fears of an economic recession weighed on investor sentiment after the Fed Chairman Jerome Powell reaffirmed central banks commitment in fighting inflation.
"We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so.
We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses," Powell told Congress on Wednesday.
Though the Fed expressed its strong commitment to fight inflation, prices have been rising at a faster pace for more than a year.
The consumer price index has been rising at more than the Fed's target rate of 2% for the last seventeen months in a row.
The S&P 500 fell 0.1% to 3,759.89 and the Nasdaq Composite declined 0.1% to 11053.08.
The popular market indexes opened lower and managed to climb above the flatline after one hour of trading.
For the next two hours, the indexes registered gains in the session but began to waver around mid-day and dipped briefly in the negative territory but quickly rebounded.
For the next three hours indexes advanced in choppy trading and near the close began to lose momentum. In the final five minutes of the session, the indexes sank and closed down for the day.
The yield on 10-year Treasury notes declined 14 basis points to close at 3.164%.
Futures of crude oil fell 3.8% to $105.34 a barrel and natural gas rose a fraction to $6.81 a unit.
On Wednesday, President Joe Biden is expected to ask Congress to drop federal gasoline and diesel taxes for three months.
Weaker oil prices dragged down stocks in the energy complex.
Chevron and Marathon Oil dropped more than 4%, Exxon Mobil declined 4%. Schlumberger NV fell 6% after president Biden's administration urged Congress to drop federal tax on gasoline and diesel sales for the next three months.
Federal tax on regular gasoline is 18 cents and diesel 24 cents a gallon.
Lower tax at the pump could provide relief to consumers but it can also lift the fuel demand worsening tight supply.
After the market closed today, KB Home reported sales in the second quarter ending in May increased 19% to $1.72 billion and net income soared 47% to $210 million.
The home builder delivered 3,469 homes, matching the deliveries in the quarter a year ago and average selling price increased 21% to $494,300.
The home builder guided sales in the fiscal year between $7.3 billion and $7.5 billion and average home selling price of $500,000.
European Markets Accelerate Declines
European markets accelerated declines after the U.K. inflation surged more than expected.
Consumer price index rose 9.1% in May from 9.0% in April, according to the latest data from the Office for National Statistics.
Month to month price increase slowed to 0.7% from 2.5% in April, the report stated.
The DAX index fell 1.1% to 13,144.28, the CAC-40 index declined 0.8% to 5,916.68, and the FTSE 100 index dropped 0.9% to 7,089.22.
Oil companies traded lower after crude oil prices declined 6% in the region.
BP Plc fell 3.1%, Shell Plc decreased 3.6%, and Repsol S.A. declined 4.3%.
BASF SE declined 5.8% to 43.56 euros after the chemical company said business in the second-half is likely to face considerable downturn.
Asian Markets Turn Lower
Markets in Asia closed lower following weak commodities prices and European markets.
Crude oil prices in Asia declined 4% and natural gas prices dropped between 2% and 3% on the global recession worries.
The Nikkei index in Tokyo declined 0.4% to 26,149.55 and indexes in Hong Kong dropped 2.6% to 21,008.34 and in Shanghai fell 1.2% to 3,267.20.
The Sensex index lost 709.54 or 1.4% to 51,822.53 and the Nifty 50 index dropped 225.50 or 1.44% to 15,413.30.
Movers: Altria, Airbnb, Coinbase, Kohl's, La-Z-Boy, Revlon
Barry Adams
22 Jun, 2022
New York City
Altria Group plunged 9.1% to $41.56 after the President Biden's administration is planning to place a maximum nicotine limit in cigarettes.
Separately, the Food and Drugs Administration is preparing to order Juul Labs to remove its e-cigarettes off the shelves from the U.S. market. The news was first reported by the Wall Street Journal.
Airbnb Inc declined 1.3% to $100.99 and the stock was downgraded to "market perform" from "market outperform" by JMP Securities citing current price reflects the post-pandemic travel rebound.
BASF SE declined 5.6% to $11.48 after the chemical company said business in the second-half is likely to face considerable downturn.
Carlsberg AS declined 1.6% to $24.43 after the alcoholic beverage maker said CFO Heine Dalsgaard has resigned to move to another company backed by a private-equity firm.
Dalsgaard will remain in the position till the end of 2022.
Clariant AG declined 3.7% to $18.78 Swiss francs after the company said it plans to trim its business divisions from five to three.
Coinbase Global dropped 7.5% to $53.20 after the rival cryptocurrency exchange Binance.US dropped the spot bitcoin trading fee.
Binance.US charged 0.1% spot bitcoin trading fee and Coinbase charged 0.5% for trading fees plus a flat fee of up to $2.99 per trade.
Credit Agricole SA declined 0.9% to $4.83 and the French-banking group released its strategic roadmap with a target of one million new retail customers and net income of 6 billion euros by 2025.
Hugo Boss gained 3.0% to $10.66 and the U.K. based Frasers Group increased its stake in the fashion designer and retailer.
The company has 3.425 million shares of common stock, representing 4.9% and 18.289 million shares of common stock via the sale of put options, representing 26.0% of Hugo Boss's total share capital, the investment group said in a press release today.
Kohl's Corporation dropped 9.5% to $38.23 after CNBC reported Franchise Group is said to lower its acquisition offer price closer to $50 a share from $60 a share citing higher inventories forcing the retailer to markdown more items.
LA-Z-Boy Incorporated surged 9.01% to $24.78 after the furniture retailer said fourth quarter revenues in the quarter ending in April soared 32% to $685 million and net income jumped 53.4% to $57.5 million.
Diluted earnings per share increased to $1.33 from 81 cents a year ago.
Mowi ASA dropped 4.8% to $22.22 Norwegian krone after the company repurchased its own 994,692 shares to meet the requirement to complete option remuneration to senior executives granted at 157.53 Norwegian krone.
The seafood company operates farms in Norway, Ireland, U.K., Canada, and Chile.
Revlon Inc soared 38.9% to $8.49 and extended its rally since the company filed to go public last week.
Movers: BASF, Carlsberg, Clariant, Credit Agricole, Hugo Boss, Mowi
Bridgette Randall
22 Jun, 2022
New York City
European markets traded lower on recession worries and rising inflation in the region.
The DAX index fell 2.0% to 13,027.62, the CAC-40 index declined 1.8% to 5,859.51, and the FTSE 100 index dropped 1.5% to 7,045.08.
Oil companies traded lower after crude oil prices declined 6% in the region.
BP Plc fell 3.6%, Shell Plc decreased 3.6%, and Repsol S.A. declined 4.8%.
BASF SE declined 5.6% to 43.30 euros after the chemical company said business in the second-half is likely to face considerable downturn.
Credit Agricole SA declined 2.2% to 9.19 euros and the French-banking group released its strategic roadmap with a target of one million new retail customers and net income of 6 billion euros by 2025.
Hugo Boss gained 0.7% to 48.70 euros and Frasers Group increased its stake in the fashion designer and retailer.
The company has 3.425 million shares of common stock, representing 4.9% and 18.289 million shares of common stock via the sale of put options, representing 26.0% of Hugo Boss's total share capital, the company said in a press release today.
Clariant AG declined 1.5% to 17.98 Swiss francs after the company said it plans to trim its business divisions from five to three.
Mowi ASA dropped 7.2% to 219.70 Norwegian krone after the company repurchased its own 994,692 shares to meet the requirement to complete option remuneration to senior executives granted at 157.53 Norwegian krone.
The seafood company operates farms in Norway, Ireland, U.K., Canada, and Chile.
Carlsberg AS declined 1.2% after the company said its CFO Heine Dalsgaard has resigned to move to another company backed by a private-equity firm.
Dalsgaard will remain in the position till the end of 2022.
European Markets Declined After UK Inflation Accelerated and Oil Fell
Bridgette Randall
22 Jun, 2022
New York City
European markets accelerated declines after the U.K. inflation surged more than expected.
Consumer price index rose 9.1% in May from 9.0% in April, according to the latest data from the Office for National Statistics.
Month to month price increase slowed to 0.7% from 2.5% in April, the report stated.
The DAX index fell 2.0% to 13,027.62, the CAC-40 index declined 1.8% to 5,859.51, and the FTSE 100 index dropped 1.5% to 7,045.08.
Oil companies traded lower after crude oil prices declined 6% in the region.
BP Plc fell 3.6%, Shell Plc decreased 3.6%, and Repsol S.A. declined 4.8%.
BASF SE declined 5.6% to 43.30 euros after the chemical company said business in the second-half is likely to face considerable downturn.
Credit Agricole SA declined 2.2% to 9.19 euros and the French-banking group released its strategic roadmap with a target of one million new retail customers and net income of 6 billion euros by 2025.
Hugo Boss gained 0.7% to 48.70 euros and Frasers Group increased its stake in the fashion designer and retailer.
The company has 3.425 million shares of common stock, representing 4.9% and 18.289 million shares of common stock via the sale of put options, representing 26.0% of Hugo Boss's total share capital, the company said in a press release today.
Clariant AG declined 1.5% to 17.98 Swiss francs after the company said it plans to trim its business divisions from five to three.
Asian Markets Turn Lower
Markets in Asia closed lower following weak commodities prices and European markets.
Crude oil prices in Asia declined 4% and natural gas prices dropped between 2% and 3% in the region on the worries of a global recession.
The Nikkei index in Tokyo declined 0.4% to 26,149.55 and indexes in Hong Kong dropped 2.6% to 21,008.34 and in Shanghai fell 1.2% to 3,267.20.
The Sensex index lost 709.54 or 1.4% to 51,822.53 and the Nifty 50 index dropped 225.50 or 1.44% to 15,413.30.
Stocks Turned Lower On Recession Worries
Barry Adams
22 Jun, 2022
New York City
Stocks turned lower after rallying in the previous session and investors refocused on rising inflation and elevated energy prices.
Fears of an economic recession weighed on investor sentiment after the Fed Chairman Jerome Powell reaffirmed central banks commitment in fighting inflation.
"We are strongly committed to bringing inflation back down, and we are moving expeditiously to do so.
We have both the tools we need and the resolve it will take to restore price stability on behalf of American families and businesses," Powell told Congress on Wednesday.
Though the Fed expressed its strong commitment to fight inflation, prices have been rising at a faster pace for more than a year.
The consumer price index has been rising at more than the Fed's target rate of 2% for the last seventeen months in a row.
The S&P 500 rose 0.9% to 3,731.83 and the Nasdaq Composite fell 0.7% to 10,985.52.
Futures of crude oil fell 6.2% to $107.51 a barrel and natural gas fell 10 cents to $6.70 a unit.
On Wednesday, President Joe Biden is expected to ask Congress to drop federal gasoline and diesel taxes for three months.
Weaker oil prices dragged down stocks in the energy complex.
Chevron and Marathon Oil dropped more than 5%, Exxon Mobil declined 4%. Schlumberger NV fell 6%.
After the market closes today, KB Home, Worthington Industries, and Steelcase are scheduled to release earnings.
European Markets Accelerate Declines
European markets accelerated declines after the U.K. inflation surged more than expected.
Consumer price index rose 9.1% in May from 9.0% in April, according to the latest data from the Office for National Statistics.
Month to month price increase slowed to 0.7% from 2.5% in April, the report stated.
The DAX index fell 2.0% to 13,027.62, the CAC-40 index declined 1.8% to 5,859.51, and the FTSE 100 index dropped 1.5% to 7,045.08.
Oil companies traded lower after crude oil prices declined 6% in the region.
BP Plc fell 3.6%, Shell Plc decreased 3.6%, and Repsol S.A. declined 4.8%.
BASF SE declined 5.6% to 43.30 euros after the chemical company said business in the second-half is likely to face considerable downturn.
Asian Markets Turn Lower
Markets in Asia closed lower following weak commodities prices and European markets.
Crude oil prices in Asia declined 4% and natural gas prices dropped between 2% and 3% on the global recession worries.
The Nikkei index in Tokyo declined 0.4% to 26,149.55 and indexes in Hong Kong dropped 2.6% to 21,008.34 and in Shanghai fell 1.2% to 3,267.20.
The Sensex index lost 709.54 or 1.4% to 51,822.53 and the Nifty 50 index dropped 225.50 or 1.44% to 15,413.30.
S&P 500 and Nasdaq Rebound 2.5% After Volatile Week
Barry Adams
21 Jun, 2022
New York City
Stocks rebounded sharply after a week when the S&P 500 declined the most in two years and bargain hunters stepped up buying.
The S&P 500 rose 2.5% to 3,764.79 and the Nasdaq Composite advanced 2.5% to 11,069.30.
Futures of crude oil rose 0.9% to $110.59 a barrel but natural gas fell 9 cents to $6.85 a unit.
The yield on 10-year Treasury notes increased a fraction to 3.302%.
The sharp rally on Wall Street was viewed as a dead cat bounce and market indexes have jumped more than 2% at least 11 times in the last three months.
The S&P 500 and the Nasdaq Composite have fallen in 10 of the last 11 weeks.
Last week, Investors worried that the Fed is so far behind in taming inflation with record negative rates (the difference between inflation and 10-year Treasury note yield) above 5%.
Inflation has been accelerating and reached a 4-decade high of 8.6% in May, surpassing Fed's target rate of 2% for more than 17 months in a row.
The Fed's aggressive rate hike by 75 basis points last week to a new range to 1.5% and 1.75% was welcomed by investors but a day after investors worried that faster rate hike may plunge the U.S. economy into a recession.
Seasonally adjusted existing home sales in May declined 3.4% from a year ago and April home sales were revised lower as well, the National Association of Realtors said today.
Homes for sale in May increased 12.6% from April but still 4.1% lower than a year ago.
The median home price sold in May increased 14.8% to $407,600, a record high since data keeping began about 40 years ago, said the NAR.
Home prices have been advancing for 123 months in a row, the longest streak of price increase on record.
Lennar Corp gained 4.5% to $67.53 after the home builder reported better-than-expected sales and higher-than-expected adjusted earnings of $4.69 a share.
The home builder said that the home demand began to soften towards the end of the quarter by higher home prices and rising mortgage rates.
Airline stocks were in focus today on summer travel surge.
Spirit Airlines advanced 8% after JetBlue lifted its offer price to $33.50 a share as the company board discusses its merger plans with Frontier Air.
Kellogg Company gained 2.1% to $69.07 after the food products maker said it plans to split into three separate companies and separate its domestic and international cereal businesses and plant-based snack and food unit.
European Markets Extend 2-Day Advance
European markets extended gains for the second day in a row powered by gains in New York and Asian markets.
Bargain hunters stepped up for the second day in a row despite the lingering worries of inflation and global economic slowdown.
The DAX index gained 0.2% to 13,292.49, the CAC-40 index advanced 0.8% to 5,964.66, and the FTSE 100 index rose 0.4% to 7,152.08.
Futures of crude oil increased 1.5% to $115.40 a barrel and European natural gain advanced 3.6% to 125.40 euros a unit.
Ocado Group decreased 4.2% to 840.80 pence after the online grocery delivery company completed a secondary offering and raised
Mondelez to Acquire Clif Bar & Company for $2.9 Billion
Scott Peters
21 Jun, 2022
New York City
Mondelez International Inc gained 1.3% to $59.57 after the company agreed to acquire Clif Bar & Co. for $2.9 billion and additional earnings contingent payouts.
Clif Bar & Company will continue to operate its business from its headquarters in Emeryville, CA and company will also continue to manufacture its products in its facilities in Twin Falls, Idaho, and Indianapolis, Indiana.
Movers: Clif Bar, Kellogg, Lennar, Mondelez, Spirit Air, Tesla, Valneva
Barry Adams
21 Jun, 2022
New York City
Kellogg Company gained 2.6% to $69.30 after the food products maker said it plans to split into three separate companies.
North America cereal company with about total sales of $2.4 billion covering the U.S, Canada, and Caribbean.
Global snacking company with about total sales of $11.4 billion covering international markets for cereals and North American frozen food businesses.
Plant Co with about total sales of approximately $340 million focus on plant faced food and anchored with the MorningStar Farms brand.
Lennar Corp jumped 2.5% to $66.41 after the home builder reported better-than-expected sales and higher-than-expected adjusted earnings of $4.69 a share.
The home builder said that the home demand began to soften towards the end of the quarter by higher home prices and rising mortgage rates.
Mondelez International Inc gained 1.3% to $59.57 after the company agreed to acquire Clif Bar & Co. for $2.9 billion and additional earnings contingent payouts.
Clif Bar & Company will continue to operate its business from its headquarters in Emeryville, CA and manufacture its products in its facilities in Twin Falls, Idaho, and Indianapolis, Indiana.
Spirit Airlines advanced 7% after JetBlue lifted its offer price to $33.50 a share as the company board discusses its merger plans with Frontier Air.
Tesla Inc soared 11.4% to $724.79 after CEO Elon Musk confirmed in an interview with Bloomberg News that the automaker is planning to cut 10% salaried staff or 3.5% of total over the next three months.
Valneva SE ADR soared 89.5% to $25.98 after Pfizer agreed to acquire 8.1% stake in France-based specialty vaccine maker for $95 million.
Movers: Airbus, Air Liquid, DS Smith, Nordex, Ocado
Bridgette Randall
21 Jun, 2022
New York City
Ocado Group decreased 4.2% to 840.80 pence after the online grocery delivery company completed a secondary offering and raised
S&P 500 Jumps 2.6%, Record Existing Home Price In May
Barry Adams
21 Jun, 2022
New York City
Stocks in the early morning bounced back after a 3-day weekend and bond yields advanced.
The S&P 500 rose 2.2% to 3,759.33 and the Nasdaq Composite rose 2.8% to 11,101.50.
Futures of crude oil rose 1.9% to $111.69 a barrel and natural gas fell 26 cents to $6.69 a unit.
The sharp rally on Wall Street was viewed as a dead cat bounce and market indexes have jumped more than 2% at least 11 times in the last three months.
The S&P 500 and the Nasdaq Composite have fallen in 10 of the last 11 weeks and investor sentiment has been pessimistic with growing skepticism that the Fed can tame inflation and avoid a recession.
Inflation has been accelerating and stayed above the Fed's target range of 2% for more than 17 months and reached a 4-decade high of 8.6% yet interest rates are near 1.75%.
Seasonally adjusted existing home sales in May declined 3.4% from a year ago and April home sales were revised lower as well, the National Association of Realtors said today.
Homes for sale in May increased 12.6% from April but still 4.1% lower than a year ago.
The median home price sold in May increased 14.8% to $407,600, a record high since data keeping began about 40 years ago, said the NAR.
Home prices have been advancing for 123 months in a row, the longest streak of price increase on record.
Lennar Corp gained 4.5% to $67.53 after the home builder reported better-than-expected sales and higher-than-expected adjusted earnings of $4.69 a share.
The home builder said that the home demand began to soften towards the end of the quarter by higher home prices and rising mortgage rates.
Airline stocks were in focus today on summer travel surge.
Spirit Airlines advanced 7% after JetBlue lifted its offer price to $33.50 a share as the company board discusses its merger plans with Frontier Air.
Kellogg Company gained 2.1% to $69.07 after the food products maker said it plans to split into three separate companies.
European Markets Extend 2-Day Advance
European markets extended gains for the second day in a row powered by gains in New York and Asian markets.
Bargain hunters stepped up for the second day in a row despite the lingering worries of inflation and global economic slowdown.
The DAX index gained 0.1% to 13,189.19, the CAC-40 index advanced 0.2% to 5,896.14, and the FTSE 100 index rose 1.5% to 7,117.38.
Futures of crude oil increased 1.5% to $115.40 a barrel and European natural gain advanced 3.6% to 125.40 euros a unit.
Ocado Group decreased 4.2% to 840.80 pence after the online grocery delivery company completed a secondary offering and raised
European Indexes Extend 2-Day Rally
Bridgette Randall
21 Jun, 2022
New York City
European markets extended gains for the second day in a row powered by gains in New York and Asian markets.
Bargain hunters stepped up for the second day in a row despite the lingering worries of inflation and global economic slowdown.
The DAX index gained 0.1% to 13,189.19, the CAC-40 index advanced 0.2% to 5,896.14, and the FTSE 100 index rose 1.5% to 7,117.38.
Futures of crude oil increased 1.5% to $115.40 a barrel and European natural gain advanced 3.6% to 125.40 euros a unit.
Ocado Group decreased 4.2% to 840.80 pence after the online grocery delivery company completed a secondary offering and raised