Market Update
Broader Averages Retained Upward Bias After Jobs Report
Barry Adams
04 Nov, 2022
New York City
Stocks jumped in early trading after employers expanded payrolls in October but bond yields traded near recent highs.
Non-farm 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,
Resources stocks led the gainers after oil jumped more than 4% and gold advanced from the recent lows.
The S&P 500 index traded down 0.2% to 3,711.96 and the Nasdaq Composite index fell 0.4% to 10,297.27.
Crude oil increased $3.50 t0 $91.65 a barrel and natural gas eased 2 cents to $5.98 a thermal unit.
Gold jumped 2.6% or $43.31 to !,672.24 an ounce and silver soared 6.2% or $1.20 to $20.66 an ounce.
The yield on 2-year Treasury notes increased to 4.67%, 10-year Treasury note jumped to 4.13% and 30-year Treasury bonds edged up to 4.20%.
European Markets Soar On Earnings
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
European Markets Extend Weekly Gains
Bridgette Randall
04 Nov, 2022
Frankfurt
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.
For the week, the DAX index closed up 1.9%, the CAC-40 added 2.5% and the FTSE 100 index soared 4.3%.
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
Brazil: Boom, Bust, Bolsonaro and Beyond
Anand Sheth
03 Nov, 2022
New York City
Even by the standards of Brazil, the last two decades of boom to bust to boom have been anything but unusual.
The third largest democracy in the world, the fifth largest nation by size, and the tenth largest economy is simply too large to be ignored.
Brazil, the seventh most populous nation, has everything that a nation needs to be a successful and wealthy and even a superpower.
The tropical nation is endowed with natural resources, mild weather, young population and away from a world of conflicts, yet the vast nation has struggled to rise above internal divisions and make a mark on the world or even in the region.
With 215 million people, Brazil has one of the most unequal societies in the world, one of the largest exporters of food has 33 million suffering from hunger and many lack access to higher education and clean and healthy living.
With less than 3% of the world
Expedia said third quarter revenues increased 22% to $3.6 billion and net income advanced 333% to $482 million or $2.98 a diluted share.
Scott Peters
03 Nov, 2022
New York City
Doordash said Sept quarter orders rose 27% to 439 million, gross order volume jumped 30% to $13.5 billion and revenues gained 33% to $1.7 billion.
Scott Peters
03 Nov, 2022
New York City
Carvana plunged 8% after the online used car retailer said total sales fell 3% and vehicle sales dropped 8% and net loss margin increased to 15%.
Brian Turner
03 Nov, 2022
New York City
Twilio plunged 11% after third quarter revenue growth slowed to 33% and the company guided fourth quarter revenue growth between 18% and 19%.
Scott Peters
03 Nov, 2022
New York City
Coinbase swung to a quarterly loss of $545 million after revenue plunged more than 50% to $590 million as cryptocurrencies transactions fall.
Scott Peters
03 Nov, 2022
New York City
Starbucks said fiscal fourth quarter results were negatively impacted by travel restrictions in China but North America comparable sales jumped 11%.
Scott Peters
03 Nov, 2022
New York City
Major Averages Extend 4-day Decline, Treasury Yield Inches Closer to 5%
Barry Adams
03 Nov, 2022
New York City
Stocks on Wall Street turned lower and bond yields surged after the Federal Reserve lifted its key lending rate and reiterated its aggressive stance on inflation.
The yield on 2-year Treasury bonds surged to a high not seen since 2007 after the Fed Chairman Powell reiterated the central bank's hawkish stance against inflation.
The yield on 2-year Treasury notes rose to 4.71%, 10-year Treasury notes jumped to 4.15%, and 30-year bonds inched higher to 4.19%.
Tech stocks led the decliners on the worries that the rate tightening cycle will reduce the value of future profits.
Amazon, Alphabet, Apple, Meta and Microsoft dropped between 2% and 4%. Meta, the parent of Facebook, has plunged 73% in the year so far, the worst performer in the S&P 500 index.
The S&P 500 index decreased 1.1% to 3,719.89 and the Nasdaq Composite index dropped 1.7% to 10,342.94.
Crude oil declined $1.85 to $88.14 a barrel and natural gas fell 36 cents to $5.90 a thermal unit.
After the close, Starbucks reported revenue in the fiscal fourth quarter ending on October 2 increased 3% to a record $8.41 billion from $8.14 billion a year ago.
In the quarter, net income dropped to $878 million from $1.76 billion and diluted earnings per share declined to 76 cents from $1.49 a year ago.
Comparable store sales growth slowed to 11% from 22% a year ago and the sales were driven by 1% increase in transaction and 10% growth in ticket size.
U.S. Trade Deficit Grows in September
The U.S. trade gap enlarged to $73.3 billion in September from a downwardly revised $65.7 billion deficit in August. The trade deficit rose to a 3-month high.
The goods trade deficit increased by $6.6 billion to $92.7 billion and the service surplus declined $1.0 billion to $19.5 billion.
Total imports increased 1.5% to $331.3 billion and exports fell 1.1% to $258 billion.
European Markets Fall, UK and Norway Lift Rates, Swiss Inflation Eases
Market indexes in Europe also turned lower and the Bank of England lifted its key lending rate.
The central bank revised higher its lending rate by 75 basis points, the largest rate increase in 33 years, to 3.0%.
The Norwegian central bank lifted its key lending rate by 25 basis points to 2.5%.
The Monetary and Financial Policy Committee revised its rate higher in an unanimous decision, according to the statement released by the Norges Bank Thursday.
The central bank also hinted rates are likely to continue to go higher as consumer price inflation in September rose to a 34-year high to 6.9% from 6.5% in August.
Bond yield rose following the global bond market sell-off after the U.S. rate hike.
The yield rose on 10-year German bunds to 2.24%, French bonds to 2.73%, the UK bonds to 3.48% and Italian bonds to 4.42%.
The DAX index declined 1% to 13,130.19, the CAC-40 index dropped 0.5% to 6,243.28 and the FTSE 100 index jumped 0.6% to 7,188.63.
The benchmark Swiss Market Index fell 95.64 points or 0.89% to 10,710.59 despite the larger-than-expected decline in inflation.
Consumer price inflation in October fell to an annual rate of 3.0% from 3.3% pace in September, the Federal Statistics Office reported Thursday.
The annual inflation rate was the lowest since May, but still above the 2% target set by the Swiss National Bank.
AXA Group gained 1% after the French insurance group reported revenue in nine-month period increased to 78.4 billion euros and the company estimated preliminary gross claims and net of reinsurance of 0.4 billion euros of claims arising from Hurricane Ian,
BMW fell 3% despite the German automaker reiterated its fiscal 2022 annual outlook.
Solvay SA declined 0.4% after the Belgian chemical maker announced a joint venture with Mexico-based Orbia to manufacture battery materials in the United States.
A week ago, Solvay lifted its fiscal 2022 organic operating earnings growth estimate to 28% from a year ago from the previous estimate range between 14% and 18% announced in July.
Asian Markets Drop, China Service Sector Contracts
Markets in Asia reacted to the latest rate hike in the U.S. and Hong Kong Monetary Authority lifted its rate by 75 basis points to keep pace with the Federal Reserve and maintain the fixed-exchange rate.
Markets in Japan were closed to celebrate Culture Day holiday and the Kospi index in Seoul fell 0.3% to 2,329.17.
The Hang Seng Index plunged 3.1% to 15,339.49 after a private survey showed service sector contracted at a faster-than-anticipated pace in October.
The Shanghai Index declined 0.2% to 2,997.81 after China imposed more and tighter restrictions in several cities to fight rising cases of coronavirus infections.
The Sensex index in Mumbai eased 0.1% to 60,836.41 and investors reacted positively to the latest batch of corporate earnings. Service sector also maintained its growth rate in October according to a private survey.
The ASX 200 fell 128.80 points or 1.84% to 6,857.90 and the broader All Ordinaries index declined 1.77% to 7,050.60 following the rate hike in the U.S.
Norges Bank lifted its key rate by 25 basis points to 2.5% and said rates will keep rising citing inflation above its target range.
Bridgette Randall
03 Nov, 2022
New York City
European Markets Fall, UK and Norway Lift Rates, Swiss Inflation Eases
Bridgette Randall
03 Nov, 2022
Frankfurt
Market indexes in Europe also turned lower and the Bank of England lifted its key lending rate.
The central bank revised higher its lending rate by 75 basis points, the largest rate increase in 33 years, to 3.0%.
The Norwegian central bank lifted its key lending rate by 25 basis points to 2.5%.
The Monetary and Financial Policy Committee revised its rate higher in an unanimous decision, according to the statement released by the Norges Bank Thursday.
The central bank also hinted rates are likely to continue to go higher as consumer price inflation in September rose to a 34-year high to 6.9% from 6.5% in August.
Bond yield rose following the global bond market sell-off after the U.S. rate hike.
The yield rose on 10-year German bunds to 2.24%, French bonds to 2.73%, the UK bonds to 3.48% and Italian bonds to 4.42%.
The DAX index declined 1% to 13,130.19, the CAC-40 index dropped 0.5% to 6,243.28 and the FTSE 100 index jumped 0.6% to 7,188.63.
The benchmark Swiss Market Index fell 95.64 points or 0.89% to 10,710.59 despite the larger-than-expected decline in inflation.
Consumer price inflation in October fell to an annual rate of 3.0% from 3.3% pace in September, the Federal Statistics Office reported Thursday.
The annual inflation rate was the lowest since May, but still above the 2% target set by the Swiss National Bank.
AXA Group gained 1% after the French insurance group reported revenue in nine-month period increased to 78.4 billion euros and the company estimated preliminary gross claims and net of reinsurance of 0.4 billion euros of claims arising from Hurricane Ian,
BMW fell 3% despite the German automaker reiterated its fiscal 2022 annual outlook.
Solvay SA declined 0.4% after the Belgian chemical maker announced a joint venture with Mexico-based Orbia to manufacture battery materials in the United States.
A week ago, Solvay lifted its fiscal 2022 organic operating earnings growth estimate to 28% from a year ago from the previous estimate range between 14% and 18% announced in July.
Trade Deficit Widened In September
Brian Turner
03 Nov, 2022
New York City
The U.S. trade gap enlarged to $73.3 billion in September from a downwardly revised $65.7 billion deficit in August. The trade deficit rose to a 3-month high.
The goods trade deficit increased by $6.6 billion to $92.7 billion and the service surplus declined $1.0 billion to $19.5 billion.
Total imports increased 1.5% to $331.3 billion and exports fell 1.1% to $258 billion.
In the year so far, the goods and services deficit increased 20.2% to $125.6 billion from a year ago.
Exports jumped 20.2% to $378.1 billion and Imports increased by the same amount to $503.6 billion.
Global Stocks and Bonds Sell-off Deepens
Barry Adams
03 Nov, 2022
New York City
Stocks on Wall Street turned lower and bond yields surged after the Federal Reserve lifted its key lending rate and also clarified the direction of future rate path.
The yield on 2-year Treasury bonds surged to 4.7%, a high not seen since 2007 after the Fed Chairman Powell reiterated the central bank's hawkish stance against inflation.
The yield on 2-year Treasury notes rose to 4.70%, 10-year Treasury notes jumped to 4.14%, and 30-year bonds inched higher to 4.15%.
Tech stocks led the decliners on the worries that the rate tightening cycle will reduce the value of future profits.
Amazon, Alphabet, Apple, Meta, Microsoft and Tesla dropped between 2% and 4%.
The S&P 500 index decreased 0.8% to 3,729.44 and the Nasdaq Composite index declined 1.2% to 10,391.99.
Crude oil declined $1.33 to $88.68 a barrel and natural gas fell 15 cents to $6.10 a thermal unit.
The U.S. trade gap enlarged to $73.3 billion in September from a downwardly revised $65.7 billion deficit in August. The trade deficit rose to a 3-month high.
The goods trade deficit increased by $6.6 billion to $92.7 billion and the service surplus declined $1.0 billion to $19.5 billion.
Total imports increased 1.5% to $331.3 billion and exports fell 1.1% to $258 billion.
Market indexes in Europe also turned lower and the Bank of England lifted its key lending rate.
The central bank revised higher its lending rate by 75 basis points, the largest rate increase in 33 years, to 3.0%.
Bond yield rose following the global bond market sell-off after the U.S. rate hike.
The yield rose on 10-year German bunds to 2.24%, French bonds to 2.73%, the UK bonds to 3.48% and Italian bonds to 4.42%.
Global bond market sell-off accelerated and the yield on U.S. 10-year Treasury bonds rose above 4.15%, nearing a 15-year high of 4.3%.
Brian Turner
03 Oct, 2022
New York City