Market Update
PPI Increase Slows to 8.0% In October
Brian Turner
15 Nov, 2022
New York City
The Producer Price Index increased 0.2% in October from the previous month, matching the downwardly revised rate in September, the U.S. Bureau of Labor Statistics said Tuesday.
The 5.7% jump in gasoline prices drove the goods cost 0.6% higher, the fastest increase since 2.2% rise in June.
However, services costs declined 0.1% in the month, the first decline since November 2020.
The PPI rose 8.0% from a year ago following the 8.4% surge in September and the smallest increase since July 2021.
The Treasury yields edged lower after the release of the inflation data.
The yield on 2-year Treasury notes fell to 4.38%, 10-year notes declined to 3.79% and 30-year bonds eased to 3.98%.
Stocks Soar On Wall Street After Wholesale Inflation Cools
Barry Adams
15 Nov, 2022
New York City
Stocks soared on Wall Street after a measure of inflation rose at a slower-than-expected pace in October.
The Producer Price Index increased 0.2% in October from the previous month, matching the downwardly revised rate in September, the U.S. Bureau of Labor Statistics said Tuesday.
The 5.7% jump in gasoline prices drove the goods cost 0.6% higher, the fastest increase since 2.2% rise in June.
However, services costs declined 0.1% in the month, the first decline since November 2020.
The PPI rose 8.0% from a year ago following the 8.4% surge in September and the smallest increase since July 2021.
The yield on 2-year Treasury notes fell to 4.38%, 10-year notes declined to 3.79% and 30-year bonds eased to 3.98%.
Crude oil prices declined 52 cents to $82.32 a barrel and natural gas prices were unchanged at $5.94 a thermal unit.
In stock trading, indexes advanced and tech stocks led the gainers.
The S&P 500 index advanced 1.02% to 4,009.44 and the Nasdaq Composite index surged 2.1% to 11,429.39.
Among widely held tech stocks, Apple, Amazon, Tesla, Microsoft and Alphabet jumped between 2% and 4%.
Technology, real estate, communications systems, consumer staples and financial sectors jumped between 1.5% and 2.2%.
Taiwan Semiconductor soared 11.9% to $81.21 after Warren Buffett controlled Berkshire Hathaway said in a filing with the Securities and Exchange Commission purchased $4.1 billion of stock in the third quarter.
Home Depot increased 2.2% to $314.27 after the retailer reported better-than-expected revenue and earnings in its latest quarter and reaffirmed its annual outlook.
Energizer Holdings Inc jumped 6.9% to $31.67 after the company reported stronger-than-expected quarterly results.
Walmart Inc soared 7.8% to $148.20 after the retailer said fiscal third quarter revenue rose 9% to $152.81 billion and swung to a net loss of $1.8 billion or 66 cents a share from a profit of $3.11 billion or $1.11 a share a year ago.
The retailer also announced a nationwide opioid settlement of $3.1 billion without admitting liabilities with state, local and tribal governments.
The company also said the boost in sales at its e-commerce India-based arm Flipkart.com, also helped results in the quarter.
Getty Images Holdings Inc dropped 13.6% to $6.02 after the stock image marketplace operator reported quarterly earnings ahead of expectations but sounded cautious outlook.
Bath & Body Works jumped 3.5% to $34.25 after hedge fund Third Point controlled by Dan Loeb revealed a stake of $265 million in the company.
Vodafone Group Plc declined 6.4% to $11.54 after the mobile communication services provider lowered its earnings and cash flow outlook.
China's Property Rescue Measures Fall Short of Expectations
Arjun Pandit
14 Nov, 2022
Mumbai
Hong Kong's property stocks advanced after China proposed sweeping measures to support moribund sector.
The new measures released by the banking regulator and central bank are designed to provide financial assistance to developers in completing housing projects and require banks to treat private and state-owned companies on a similar footing.
The 16-point measures also include some assistance to homeowners in deferring monthly payments.
The pace of home completion across China has slowed down considerably because of persistent and widespread coronavirus linked lockdowns for the last two years.
Housing market in China remains fragile and home prices are still falling as buyers struggle to find housing loans and developers are at a standstill after defaulting on several large international debts.
The proposed measures are likely to expedite completion of few large projects and the housing demand is not expected to recover for months because housing prices are still falling.
Amazon Layoff Drags Tech Stocks, Fed Comments In Focus
Barry Adams
14 Nov, 2022
New York City
Market sentiment was weak on Wall Street after the Federal Reserve sounded a cautionary note over the weekend and the expected Republican wave failed to materialize in the midterm elections.
Over the weekend, Democratic Party won one more U.S. Senate seat, retaining control of the upper chamber of the Congress.
Democrats hold 50 seats and Republicans 49 in the U.S. Senate, Georgia Senate election results will be decided after a runoff in December.
The Republican Party is expected to win the control of the U.S. House but results of 19 elections are still not decided six days after the election.
Former President Donald Trump is set to declare his intention to run for the presidential election in 2024 on Tuesday, despite several Trump-backed high-profile election deniers losing competitive races in the midterm elections.
Market sentiment was muted in the early trading after the U.S. Federal Reserve Governor Chris Waller said on Sunday that the pace of future rate hike may be slower but the central bank is not done with fighting sky-high inflation.
Investors took note of the latest comments from Federal Reserve Vice Chair Lael Brainard, indicating that rate hike may "soon" begin to slow after several -large hikes this year.
Europe Movers: Informa, John Wood, Roche, Rheinmetall
Bridgette Randall
14 Nov, 2022
Frankfurt
European markets advanced following the surge in the previous week and indexes gained after China proposed a wide ranging measures to rescue moribund real estate sector.
The DAX index gained 0.6% to 14,313.30, the CAC-40 index added 0.2% to 6,609.17 and the FTSE 100 index jumped 0.9% to 7,385.17.
European markets closed higher and Germany's DAX index closed at a five-month high, France's CAC-40 index at a 7-month high and the U.K.'s FTSE 100 index closed at a two-month high.
The dollar edged lower and the yield on U.S. Treasuries turned higher after comments from the U.S. Fed officials.
The British pound was in focus ahead of the UK Chancellor's Autumn Statement on Thursday indicating spending and tax provisions.
The euro rebounded to $1.03 and the British pound edged up to $1.178.
Brent crude edged down 3.5% to $92.57 a barrel and Dutch TTF natural gas jumped 16% to 113.60 euros MWh.
Informa Plc jumped 5% after the global event organizer lifted its annual outlook and said its events are now tracking 85% levels of full-year revenue in 2018, excluding China.
The company said it has repurchased over
European Markets at 6-month High, Eurozone Output Advanced
Bridgette Randall
14 Nov, 2022
Frankfurt
European markets advanced following the surge in the previous week and indexes gained after China proposed a wide ranging measures to rescue moribund real estate sector.
Market sentiment was muted in the early trading after the U.S. Federal Reserve Governor Chris Waller said on Sunday that the pace of future rate hike may be slower but the central bank is not done with fighting sky-high inflation.
Investors took note of the latest comments from Federal Reserve Vice Chair Lael Brainard, indicating that rate hike may "soon" begin to slow after several -large hikes this year.