Market Update
Eurozone retail sales in September increased 0.4% from August after struggling in previous three months.
08 Nov, 2022
Stocks Inch Higher for 3rd Day, Bond Yields Retain Upward Bias
Barry Adams
08 Nov, 2022
New York City
Benchmark indexes were stable ahead of midterm elections later in the day and bond yields inched lower.
The S&P 500 index inched up 0.2% to 3,816.14 and the Nasdaq Composite index increased 0.06% to 10,571.28.
Kohl's Corporation jumped 8.5% after the struggling retailer said third quarter sales declined 2% on 6.9% fall in comparable store sales.
The retailer said CEO Michelle Gass is leaving the company from Dec 2 and the board member Tom Kingsbury will serve as interim CEO.
Lyft Inc plunged 20% after the ride-sharing company reported weaker-than-expected revenue.
Third quarter revenue increased 22% to $1.05 billion but net loss widened to $422.2 million from $99.7 million a year ago and active rider growth fell to 7.2% to 20.3 million.
Crude oil edged down 75 cents to $91.02 a barrel and natural gas declined 64 cents to $6.32 a thermal unit.
U.S. Treasury bonds edged lower ahead of the inflation data scheduled to be released on Thursday.
Investors are anticipating the consumer price inflation index to rise at least 0.7% on a monthly basis in October and jump 8.1% from a year ago.
The inflation is rapidly spreading in the services sector of the economy and prices are still rising at a rapid pace.
The yield on 2-year Treasury notes inched lower to 4.68%, 10-year Treasury notes edged down to 4.16% and 30-year Treasury bonds fell to 4.28%.
Stocks lacked direction in European trading after energy prices inched lower and currencies were under pressure.
Eurozone retail sales rose 0.4% on a monthly basis in September, according to the latest data from Eurostat.
The DAX index increased 0.6% to 13,612.68, the CAC-40 index traded higher 0.01% to 6,417.46 and the FTSE 100 index edged down 0.04% to 7,297.68.
Luxury stocks LVMH and Hermes International declined on the China demand worries as regulators lock down several regions in large cities.
Danish costume jewelry retailer Pandora surged more than 8% after the company reported better-than-expected quarterly sales.
Carrefour declined 1.2% and the company said it will accelerate its e-commerce expansion and add more discount stores and trim costs reflecting its new strategic plan.
Schaeffler AG soared 9.5% after the bearings maker said it plans to cut 1,300 jobs worldwide and trim its excess production capacity.
The euro traded up to $1.001 but the British pound declined 0.3% to $1.147.
The yield on 10-year German Bunds declined to 2.29%, French bonds edged down to 2.80%, British bonds dropped to 3.58% and Italian bonds fell to 4.39%.
Brent crude oil declined 37 cents to $97.31 a barrel and TTF natural gas rose 5% to 116.32 euros a MWh.
The Nikkei 225 index increased 1.2% to 27,872.11, the Hang Seng Index declined 0.2% to 16,557.31, the Shanghai Composite inched lower 0.4% to 3,064.49.
Markets in India were closed for a holiday.
Stocks Pull Ahead, Natura Gas Surged 5%
Barry Adams
07 Nov, 2022
New York City
Stocks closed higher on Monday ahead of the Congressional elections on Tuesday.
Tuesday's midterm elections may indicate a new balance of power in the U.S. Congress as the divided nation votes on several issues confronting voters including sky-high inflation and out of control defense spending.
Despite decades of policy changes and different parties in control, the U.S. economy has struggled to generate more than two million net new jobs a year, barring the post-pandemic recovery.
The consumer price inflation data on Thursday are likely to show an increase of 0.7% on a monthly basis in October or about 8.1% on an annual basis.
Hotter-than-expected inflation data may provide another confirming signal to the Federal Reserve to continue its aggressive rate hike campaign at the next meeting.
Interest rates are likely to jump higher by at least 50 basis points at the next Fed's meeting on December 14th.
The S&P 500 index increased 0.96% to 3,806.80 and the Nasdaq Composite index added 0.6% to 10,564.52.
Natural gas prices soared on the hopes that colder-than-usual climate conditions in certain regions of the U.S. will support higher demand.
Crude oil fell 81 cents to $91.82 a barrel and natural gas advanced 71 cents to $7.10 a thermal unit.
The U.S. treasury yields advanced following higher energy prices.
The yield on 2-year Treasury notes rose to 4.73%, 10-year notes jumped to 4.22% and 30-year bonds increased to 4.33%.
U.S. Movers
Berkshire Hathaway jumped more than 1% after the Warren Buffett controlled conglomerate reported a 20% increase in earnings in its latest quarter.
Apple Inc declined more than 1% after China imposed tighter restrictions in the city where many Apple products are manufactured by its Taiwan-based contractor Foxconn Technology Group.
Carvana plunged 16% to $7.35 on the worries that the online used-car retailer may face more difficult times ahead as higher interest rates may slowdown consumer spending.
European Markets Advance
European markets generally traded higher and the resource-heavy FTSE index declined.
German industrial production unexpectedly increased 0.6% in September after falling revised 1.2% in August, according to Destatis Monday.
The DAX index edged up 0.5% to 13,533.52, the CAC-40 index was nearly unchanged at 6,416.61 and the FTSE 100 index fell 0.5% to 7,299.99.
The U.S. dollar faced pressure ahead of midterm Congressional elections on Tuesday and consumer inflation data on Thursday.
The euro inched up to $1.002 and the British pound edged higher to $1.156.
Weak China's International Trade Data Dragged Sentiment In Asia
Asian markets gained following Friday's global market advance but weak Chinese international trade data trimmed gains.
China's imports and exports unexpectedly declined according to the data released by the General Administration of Customs.
October exports declined 0.3% and imports fell 0.7% from a year ago.
Exports declined for the first time since 2020 and trade surplus rose to $85.15 billion.
The Nikkei 225 index gained 1.2% to 27,527.64, the Hang Seng index added 2.7% to 16,595.91 and the Sensex index increased 0.4% to 61,185.15.
The Japanese yen edged up to 147.67 and the Chinese renminbi held near 7.23 and the Indian rupee recovered to 81.80 against the U.S. dollar.
Movers: Apple, Berkshire Hathaway, Carvana, Meta, Palantir
Scott Peters
07 Nov, 2022
New York City
Apple Inc declined 0.4% to $138.87 after the company said in a regulatory filing that the assembly of its iPhone 14 Pro and iPhone 14 Pro Max have been temporarily impacted by Covid-19 restrictions in Zhengzhou, China.
" We continue to see strong demand for iPhone 14 Pro and iPhone 14 Pro Max models. However, we now expect lower iPhone 14 Pro and iPhone 14 Pro Max shipments than we previously anticipated and customers will experience longer wait times to receive their new products," Apple added in a regulatory filing with the SEC.
Berkshire Hathaway jumped 1% to $290.24 after the conglomerate controlled by Warren Buffett said operating earnings rose 20% in its latest quarter.
In the quarter, the company repurchased $1.05 billion of its stock and the value of the portfolio holdings plunged $10.1 billion, reflecting the current market weakness.
Carvana Company accelerated its decline after the release of weak earnings last week and dropped 13.6% to $7.59.
Carvana has now dropped more than 96,8% in the year so far.
Meta Platforms Inc rose 5.8% to $96.12 after a report from the Wall Street Journal suggested that the company may start mass layoffs as early as this week.
The parent of Facebook said it employed about 87,314 employees worldwide at the end of September, an increase of 28% from a year ago.
Palantir Technologies Inc dropped 10.8% to $7.08 after the company reported in its latest quarter revenue ahead of expectations but missed earnings expectations.
Total revenue in the quarter rose 22% to $498 million and the U.S. revenue grew 31% to $297 million from a year ago.
Net loss increased to $123.8 million from $102.1 million and diluted loss per share jumped to 6 cents from 5 cents a year ago.
The company reiterated its full-year revenue in the range between $1.9 billion and $1.902 billion and lifted its adjusted income from operations between $384 million and #86 million.
Energy companies active in the natural gas market advanced after natural prices soared as much as 10%.
EQT gained 8.4% to $4.52, Baker Hughes Company increased 4.8% to $30.51 and Occidental Petroleum advanced 3.5% to $75.82.
Stocks On Wall Street Advance Ahead of Elections and CPI Data
Barry Adams
07 Nov, 2022
New York City
Stocks attempted to gain ground in the early trading and investors await mid-term election results on Tuesday and consumer price data on Thursday.
Tuesday's midterm elections may indicate a new balance of power in the U.S. Congress as the divided nation votes on several issues confronting voters including sky-high inflation and out of control defense spending.
Despite decades of policy changes and different parties in control, the U.S. economy has struggled to generate more than two million net new jobs annually, barring the post-pandemic recovery.
The consumer price inflation data on Thursday are likely to show an increase of 0.7% on a monthly basis in October or about 8.1% on an annual basis.
Hotter-than-expected inflation data may provide another confirming signal to the Federal Reserve to continue its aggressive rate hike campaign at the next meeting.
Interest rates are likely to jump higher by at least 50 basis points at the next Fed's meeting on December 14th.
The S&P 500 index edged up 0.05% to 3,772.67 and the Nasdaq Composite index declined 0.2% to 10,459.96.
Natural gas prices soared on the hopes that colder-than-usual climate conditions in certain regions of the U.S. will support higher demand.
Crude oil jumped 43 cents to $93.10 a barrel and natural gas advanced 71 cents to $7.10 a thermal unit.
The U.S. treasury yields advanced following higher energy prices.
The yield on 2-year Treasury notes rose to 4.73%, 10-year notes jumped to 4.21% and 30-year bonds increased to 4.32%.
Berkshire Hathaway jumped more than 1% after the Warren Buffett controlled conglomerate reported a 20% increase in earnings in its latest quarter.
Apple Inc declined more than 1% after China imposed tighter restrictions in the city where many Apple products are manufactured by its Taiwan-based contractor Foxconn Technology Group.
Carvana plunged 16% to $7.35 on the worries that the online used-car retailer may face more difficult times ahead as higher interest rates may slowdown consumer spending.
October inflation is expected to show an increase of 0.7% on a monthly basis and 8.2% on a yearly basis on Thursday.
06 Nov, 2022
Crude oil jumped 5% on the expectations that China may relax coronavirus restrictions in the weeks ahead.
05 Nov, 2022
Rate Path and Recession Worries Dominate Volatile Global Markets
Barry Adams
04 Nov, 2022
New York City
Benchmark indexes advanced on the final day of a gloomy week when investors confronted labor market data, interest rate hikes and a batch of corporate earnings.
At least for today, stocks rebounded after nonfarm payrolls expanded in October and wages rose in October, highlighting the resilience of the U.S. economy.
Stocks jumped in early trading after employers expanded payrolls in October and bond yields traded near 15-year highs.
Nonfarm payrolls increased 261,000 in October from the revised 315,000 in September, according to the monthly jobs report from the U.S. Bureau of Labor Statistics Friday.
Healthcare, professional and technical services and manufacturing expanded led the payroll expansion in the month.
A separate survey by the department showed unemployment rate increased to 3.7% in October from a 29-month low of 3.5% in September,
The stronger-than-expected labor market data also supported the Fed's case of the need to cool down the economy and lift key lending rates.
The yield on 2-year Treasury notes increased to 4.66%, 10-year Treasury note jumped to 4.17% and 30-year Treasury bonds edged up to 4.26%.
Resources stocks led the gainers after oil jumped more than 4% and gold advanced from the recent lows.
The S&P 500 index closed up 1.4% to 3,770.55 and the Nasdaq Composite index advanced 1.3% to 10,475.26.
For the week, the S&P 500 index declined 3.3% and the Nasdaq Composite index dropped 6.0%.
Crude oil jumped $4.50 t0 $92.45 a barrel and natural gas increased 51 cents to $6.48 a thermal unit.
Gold jumped 3.1% or $51.66 to 1,680.59 an ounce and silver soared 6.2% or $1.37 to $20.86 an ounce.
U.S. Stock Movers
Carvana Company plunged 37.2% to $9.01 after the online used car retailer said total sales fell 3% and vehicle sales dropped 8% and net loss margin increased to 15%.
DraftKings Inc plunged 26.7% to $11.49 after the online sports betting company reported a quarterly loss that was smaller-than-expected by some analysts.
DraftKings plunged after the company said that the company's business is vulnerable to an economic downturn and may be negatively impacted if consumer spending weakens.
DoorDash Inc rose 6.30% to $50.66 after the local delivery services provider said September quarter orders rose 27% to 439 million, gross order volume jumped 30% to $13.5 billion.
Third quarter revenue increased 33% to $1.7 billion from $1.28 billion a year ago.
Net loss jumped to $295 million from $101 million and diluted loss per share rose to 77 cents from 30 cents a year ago.
Funko Inc plunged 57.3% to $8.32 after the maker of licensed collectibles reported weaker-than-estimated third quarter results and guided a loss in the fourth quarter.
Net sales in the third quarter increased 36.6% to $365.6 million and net income dropped 39.3% to $11.1 million from a year ago.
Diluted earnings per share declined to 19 cents from 28 cents a year ago.
The company guided full-year 2022 revenue between $1.29 billion and $1.33 billion and guided fourth quarter gross margin to decline because of seasonality and inventory management.
Starbucks Corporation soared 8.2% to $91.66 after the coffee chain said fiscal fourth quarter results were negatively impacted by travel restrictions in China but North America comparable sales jumped 11%.
September quarter revenue increased 3% to $8.4 billion from $8.1 billion a year ago.
Net income dropped to $878.3 million from $1.764.6 million and diluted earnings per share declined to 76 cents from $1.49 a year ago.
In the quarter, the company opened 763 net new stores around the world totaling 35,711 stores.
North America sales rose 6%, or 15% adjusted for an extra week in the previous year, to $6.1 billion on 11% increase in comparable store sales.
Twilio Inc plunged 34.6% to $42.74 after the third quarter revenue growth slowed to 33% and the company guided fourth quarter revenue growth between 18% and 19%.
Cloud computing stocks took a beating on the worries that the industry maybe slowing faster-than-estimated.
ZoomInfo Technologies declined 6.3%, Cloudflare plunged 18%, Bill.com fell 8.4% and ServiceNow declined 6.5%.
European Markets Extend Weekly Gains
European markets soared after investors focused on domestic earnings and shrugged off worries of rising rates, supply chain difficulties and looming recession.
The DAX index soared 3.1% to 13,528.64, the CAC-40 index advanced 3.5% to 6,459.83 and the FTSE 100 index increased 2.5% to 7,363.28.
The euro held steady at 99.29 U.S. cents and the British pound traded near $1.13.
Brent crude gained $3.40 to $98.14 and TTF natural gas rose 4.8% to 119.40 euros a MWh.
Energy and metals stocks led the gainers after crude oil prices jumped 4% and natural gas prices soared 6%.
Anglo America, Antofagasta, BHP Group and Rio Tinto led gainers and soared between 5% and 10%.
Societe Generale SA jumped as much as 5% after the French bank reported weaker third quarter profit on rising revenues despite the challenging economic environment.
Telefonica SA increased 3% to
Movers: Carvana, Cinemark, Coinbase, DraftKings, DoorDash, Expedia, Funk, Starbucks, Twilio
Scott Peters
04 Nov, 2022
New York City
Carvana Company plunged 37.2% to $9.01 after the online used car retailer said total sales fell 3% and vehicle sales dropped 8% and net loss margin increased to 15%.
Cinemark Holdings, Inc rose 9,8% to $11.65 after the operator of movie theater chains reported earnings ahead of expectations.
Third quarter revenue increased 50% to $650.4 million from $434.8 million from a year ago.
Net loss in the quarter shrank to $24.5 million from $77.8 million and diluted loss per share declined to 20 cents from 65 cents a year ago.
The company operates a network of 5,835 movie screens, and the company has commitments to open two new theatres and 19 screens during the rest of 2022 and seven new theatres and 55 screens in the coming years.
Coinbase Global Inc rose 4.4% to $58.32 and the cryptocurrency exchange swung to a quarterly loss of $545 million after revenue plunged more than 50% to $590 million after transactions declined.
DraftKings Inc plunged 26.7% to $11.49 after the online sports betting company reported a quarterly loss that was smaller-than-expected by some analysts.
DraftKings plunged after the company said that the company's business is vulnerable to an economic downturn and may be negatively impacted if consumer spending weakens.
DoorDash Inc rose 6.30% to $50.66 after the local delivery services provider said September quarter orders rose 27% to 439 million, gross order volume jumped 30% to $13.5 billion.
Third quarter revenue increased 33% to $1.7 billion from $1.28 billion a year ago.
Net loss jumped to $295 million from $101 million and diluted loss per share rose to 77 cents from 30 cents a year ago.
Expedia Group gained 5.9% to $92.81 and the online travel services provider said third quarter revenues increased 22% to $3.6 billion and net income advanced 333% to $482 million or $2.98 a diluted share.
In the quarter, room-nights booked increased 22% to 81.6 million and gross bookings jumped 28% to $24 billion.
The company said it resumed stock repurchase and has completed the buyback through October of 2 million shares for $200 million.
Funko Inc plunged 57.3% to $8.32 after the maker of licensed collectibles reported weaker-than-estimated third quarter results and guided a loss in the fourth quarter.
Net sales in the third quarter increased 36.6% to $365.6 million and net income dropped 39.3% to $11.1 million from a year ago.
Diluted earnings per share declined to 19 cents from 28 cents a year ago.
The company guided full-year 2022 revenue between $1.29 billion and $1.33 billion and guided fourth quarter gross margin to decline because of seasonality and inventory management.
Starbucks Corporation soared 8.2% to $91.66 after the coffee chain said fiscal fourth quarter results were negatively impacted by travel restrictions in China but North America comparable sales jumped 11%.
September quarter revenue increased 3% to $8.4 billion from $8.1 billion a year ago.
Net income dropped to $878.3 million from $1.764.6 million and diluted earnings per share declined to 76 cents from $1.49 a year ago.
In the quarter, the company opened 763 net new stores around the world totaling 35,711 stores.
North America sales rose 6%, or 15% adjusted for an extra week in the previous year, to $6.1 billion on 11% increase in comparable store sales.
Twilio Inc plunged 34.6% to $42.74 after the third quarter revenue growth slowed to 33% and the company guided fourth quarter revenue growth between 18% and 19%.
Cloud computing stocks took a beating on the worries that the industry maybe slowing faster-than-estimated.
ZoomInfo Technologies declined 6.3%, Cloudflare plunged 18%, Bill.com fell 8.4% and ServiceNow declined 6.5%.
U.S. Labor Market Expanded In October by 261,000
Brian Turner
04 Nov, 2022
New York City
Nonfarm payrolls increased 261,000 in October from the revised 315,000 in September, according to the monthly jobs report from the U.S. Bureau of Labor Statistics on Friday.
Healthcare, professional and technical services and manufacturing expanded led the payroll expansion in the month.
In October, employment in health care rose by 53,000, professional and technical services added 43,000 and manufacturing by 32,000.
Employment in leisure and hospitality continued to expand in October with 35,000 net job additions.
In October, average hourly earnings for all employees on private nonfarm payrolls rose by 12 cents, or 0.4%, to $32.58.
On an annual basis, average hourly earnings increased 4.7%.
The August total nonfarm payroll employment was revised down by 23,000, from the net gain of 315,000 to 292,000, and the change for September was revised up by 52,000, from 263,000 to 315,000.
With these revisions, employment gains in August and September combined were 29,000 higher than previously reported.
A separate survey by the department showed unemployment rate increased to 3.7% in October from a 29-month low of 3.5% in September,