Market Update
Deckers Falls After Conservative Guidance, Quarterly Sales Up 21%
Scott Peters
28 Oct, 2022
New York City
Deckers Outdoor Corp dropped 3.8% to $345.35 after the footwear maker reported earnings ahead of expectations and reaffirmed its full-year outlook.
Revenue in the fiscal second quarter ending in September increased 21.3% to $875.6 million compared to $721.9 million.
Net sales on a constant currency basis jumped 24.8%.
Gross margin declined to 39.8% from 50.2% a year ago, after rising product and supply costs impacted negatively.
Net income in the period declined to $101.5 million from $102.0 million and diluted earnings per share fell to $3.80 from $3.66 a year ago.
Regional Breakdown
Domestic net sales increased 20.0% to $617.7 million from $514.6 million and International net sales advanced 24.4% to $257.9 million from $207.3 million a year ago.
Channel Sales
Wholesale net sales rose 16.7% to $636.5 million from $545.2 million.
Direct-to-Consumer or online net sales jumped 35.3% to $239.1 million from $176.7 million a year ago and comparable direct sales surged 38.2%.
Segment Sales
UGG brand net sales rose 6.3% to $476.5 million from $448.4 million a year ago.
HOKA brand net sales jumped 58.3% to $333.0 million from $210.4 million.
Teva brand net sales increased 4.3% to $30.1 million from $28.8 million.
Sanuk brand net sales fell 25.2% to $7.5 million from $10.1 million.
Other brands, including Koolaburra, net sales dropped 17.9% to $28.5 million from $24.2 million.
Strong Balance Sheet
Inventories, including goods in transit, increased to $925.0 million from $636.3 million a year ago.
The company has no outstanding borrowings and cash and cash equivalents increased to $419.3 million from $746.2 million a year ago.
Fiscal Outlook
The company forecasted revenue in full-year fiscal 2023 ending in March between $3.45 billion and $3.50 billion and diluted earnings per share between $17.50 and $18.35.
Gross margin is estimated around 50.5%.
Stocks Repurchase Program
During the second quarter, Deckers repurchased approximately 173,000 common stock for a total of $50.2 million at a weighted average price paid per share of $290.01.
As of September 30, 2022, the company had approximately $1.5 billion available under its stock repurchase authorization.
U.S. and Global Stocks Power Ahead as Investor Sentiment Improves
Barry Adams
28 Oct, 2022
New York City
Benchmark indexes extended weekly gains after investors interpreted latest readings on inflation and consumer health and detected signs of optimism in the latest batch of earnings.
Chevron and Exxon Mobil reported a multi-fold jump in earnings after energy prices soared in the latest quarter.
Apple soared 8% after the company's latest quarterly earnings were ahead of lowered expectations and sales in China rose despite the widespread lockdowns.
Amazon.com dropped as much as 10% after the online retailer said fourth quarter revenue growth is likely to be weak.
The S&P 500 index increased 1.2% to 3,854.89 and the Nasdaq Composite rose 1.2% to 10,925.61.
For the week, the S&P 500 index jumped 4.1% and the Nasdaq Composite gained 2.1%.
Crude oil edged down $1.04 to $88.05 a barrel and natural gas decreased 18 cents to $5.68 a thermal unit.
Bond yields rose after a measure of inflation was elevated but steady in September, indicating stubborn inflation seeping into a broader economy.
The yield on 2-year Treasury notes rose to 4.41%, 10-year Treasury notes jumped to 3.997% and 30-year bonds increased to 4.12%.
PCE Price Index Held Steady but Elevated
Personal Consumption Expenditure price index, a measure of inflation, rose 0.3% in September from the previous month.
The PCE index jumped 6.2% from a year ago and matched the rise in the previous month, according to the data released by the Bureau of Economic Analysis.
The PCE index, excluding food and energy, rose 0.5% on a monthly basis and jumped 5.1% from a year ago.
Pending Home Sales Plunge 10% In September
Pending home sales fell for the fourth month in a row after rising mortgage rates and elevated prices kept buyers away.
Pending home sales in September declined 10.5% from August and plunged 31% from a year ago, the National Association of Realtors said in a statement today.
"Persistent inflation has proven quite harmful to the housing market," said NAR Chief Economist Lawrence Yun.
"The Federal Reserve has had to drastically raise interest rates to quell inflation, which has resulted in far fewer buyers and even fewer sellers," added Yun.
The pending home sales index is at a low last seen in June 2010, excluding the onset of the coronavirus pandemic in April 2020.
Home prices across the nation are still 40% higher than pre-pandemic 2019 levels.
U.S. Stock Movers
Amazon.com, Inc plunged 20.4% to $88.20 after the online retailer guided weak fourth quarter outlook.
Third quarter revenue increased 15% to $127.1 billion from $110.8 billion and North America segment sales increased 20% to $78.8 billion.
Net income in the quarter decreased to $2.9 billion or 28 cents from $3.2 billion or 31 cents a diluted share.
Amazon guided fourth quarter sales between $140.0 billion and $148.0 billion, an increase between 2% and 8% from a year ago.
This guidance anticipates an unfavorable impact of approximately 460 basis points from foreign exchange rates.
Apple Inc declined 1.1% to $143.81 after the computing and telecom devices maker reported fiscal fourth quarter results ending on September 24.
Revenue in the quarter rose 8% to $90.1 billion from $84.4 billion a year ago.
Net income in the quarter rose to $20.7 billion from $20.5 billion and diluted earnings per share increased to $1.28 to $1.24 a year ago.
Sales in the Americas rose to $39.8 billion from $36.8 billion and Greater China rose to $15.5 billion from $14.6 billion a year ago.
iPhone sales jumped to $42.6 billion from $38.9 billion a year ago.
Apple declared a cash dividend of 23 cents a share payable on November 10, 2022 to shareholders of record as of the close of business on November 7, 2022.
Chevron Corp gained 2.1% to $181.65 after the energy explorer and refiner said quarterly earnings nearly doubled.
Revenue in the quarter jumped to $66.6 billion from $44.7 billion a year ago.
Net income in the third quarter nearly doubled to $11.2 billion from $6.1 billion and diluted earnings per share jumped to $5.78 from $3.19 a year ago.
Exxon Mobil Corp jumped 2.2% to $109.90 after the energy company reported a surge in revenue and profit.
Total revenue in the third quarter jumped to $112.1 billion from $73.8 billion a year ago.
Net income in the period advanced to $20.2 billion from $6.94 billion and diluted earnings per share shot up four-fold to $4.68 from $1.57 a year ago.
The company declared a fourth quarter dividend of 91 cents a share payable to shareholders on record on December 9th.
Intel Corp jumped 7.3% to $28.12 after the semiconductor chipmaker posted better-than-expected quarterly results but the company lowered its full-year sales outlook.
Revenue in the third quarter declined 20% to $15.3 billion from $19.2 billion a year ago.
Net income in the quarter plunged 85% to $1.0 billion from $6.8 billion and diluted earnings per share dropped to 25 cents from $1.67 a year ago.
The company lowered its full-year 2022 revenue outlook between $63 billion and $64 billion from the previous range between $65 billion and $68 billion.
The company also took a $664 million restructuring charge in the quarter and said it plans to aggressively cut operating costs.
European Markets Jump 4% In Volatile Week
European markets lacked direction but extended weekly gains in volatile trading and the ECB lifted its main rate by a large-size for the second time in a row.
Investors also weighed accelerating inflation in the region's two largest economies.
In addition, Germany's economy unexpectedly expanded in the third quarter but the French economic growth slowed.
Inflation in Germany and France Accelerates
Germany's consumer price inflation accelerated in October to 10.4% from 10.0% in September, Destatis said in a report Friday.
The annual inflation accelerated after goods prices rose at a faster pace of 17.8% from 17.2%, food prices increased 20.3% from 18.7% and high energy prices jumped 43% from 43.9%.
Service prices rose at a faster pace 4.0% from 3.6% in the previous month and rent price increased to 1.8% from 1.7%.
October inflation on a monthly basis increased to 0.9%.
The French inflation rose 6.2% in October from 5.6% in September, the statistical office INSEE reported Friday.
The October inflation was the strongest since 1985.
Another report from the Destatis showed that the German economy unexpectedly rose in the third quarter.
German GDP Expands, French Growth Slows
Germany's GDP rose 0.3% in the third quarter after rising 0.1% in the second quarter.
Most economists were anticipating 0.2% contraction in the third quarter.
French economy expanded at a slower pace of 0.2% from the second quarter when the economy logged 0.5% growth, the statistical office INSEE reported Friday.
The stagnant household spending and weaker exports dented the growth in the third quarter.
European Markets and Indexes
The DAX index rose 0.2% to 13,243.33, the CAC-40 index increased 0.5% to 6,273.06 and the FTSE 100 index declined 0.4% to 7,047.67.
For the week, the DAX and the CAC-40 jumped 4% and the Swiss SMI index gained 3.3% and the FTSE 100 advanced 1%.
The yield on 10-year German Bunds increased to 2.09%, French bonds rose to 2.62%, the UK Gilt increased to 3.45% and Italian bonds to 4.19%.
The euro traded at 99.59 U.S. cents and the British pound inched up to $1.15.
Brent crude decreased to $1.01 to $95.92 a barrel and TTF natural gas futures rose 2.5% to 110.45 euros a MWh.
Europe Stock Movers
Swiss Re dropped 2.4% to 75.42 Swiss francs after the company posted net loss in the third quarter and in the nine-month period of fiscal 2022.
Danone SA gained 2.9% to
European Markets Jump 4% After Volatile Week
Bridgette Randall
28 Oct, 2022
Frankfurt
European markets traded sideways on the last day of the week and investors digested the latest batch of earnings a day after the ECB lifted the rate by 0.75%.
Germany's consumer price inflation accelerated in October to 10.4% from 10.0% in September, Destatis said in a report Friday.
The annual inflation accelerated after goods prices rose at a faster pace of 17.8% from 17.2%, food prices increased 20.3% from 18.7% and high energy prices jumped 43% from 43.9%.
Service prices rose at a faster pace 4.0% from 3.6% in the previous month and rent price increased to 1.8% from 1.7%.
October inflation on a monthly basis increased to 0.9%.
The French inflation rose 6.2% in October from 5.6% in September, the statistical office INSEE reported Friday.
The October inflation was the strongest since 1985.
Another report from the Destatis showed that the German economy unexpectedly rose in the third quarter.
Germany's GDP rose 0.3% in the third quarter after rising 0.1% in the second quarter.
Most economists were anticipating 0.2% contraction in the third quarter.
French economy expanded at a slower pace of 0.2% from the second quarter when the economy logged 0.5% growth, the statistical office INSEE reported Friday.
The stagnant household spending and weaker exports dented the growth in the third quarter.
The DAX index rose 0.2% to 13,243.33, the CAC-40 index increased 0.5% to 6,273.06 and the FTSE 100 index declined 0.4% to 7,047.67.
For the week, the DAX and the CAC-40 jumped 4% and the Swiss SMI index gained 3.3% and the FTSE 100 advanced 1%.
The yield on 10-year German Bunds increased to 2.09%, French bonds rose to 2.62%, the UK Gilt increased to 3.45% and Italian bonds to 4.19%.
The euro traded at 99.59 U.S. cents and the British pound inched up to $1.15.
Brent crude decreased to $1.01 to $95.92 a barrel and TTF natural gas futures rose 2.5% to 110.45 euros a MWh.
Swiss Re dropped 2.4% to 75.42 Swiss francs after the company posted net loss in the third quarter and in the nine-month period of fiscal 2022.
Danone SA gained 2.9% to
PCE Price Index Held Steady but Elevated
Brian Turner
28 Oct, 2022
New York City
Personal Consumption Expenditure price index, a measure of inflation, rose 0.3% in September from the previous month.
The PCE index jumped 6.2% from a year ago and matched the rise in the previous month, according to the data released by the Bureau of Economic Analysis.
The PCE index, excluding food and energy, rose 0.5% on a monthly basis and jumped 5.1% from a year ago.
Pending Home Sales Plunge 10% In September, 4th Monthly Decline
Brian Turner
28 Oct, 2022
New York City
Pending home sales fell for the fourth month in a row after rising mortgage rates and elevated prices kept buyers away.
Pending home sales in September declined 10.5% from August and plunged 31% from a year ago, the National Association of Realtors said in a statement today.
"Persistent inflation has proven quite harmful to the housing market," said NAR Chief Economist Lawrence Yun.
"The Federal Reserve has had to drastically raise interest rates to quell inflation, which has resulted in far fewer buyers and even fewer sellers," added Yun.
The pending home sales index is at a low last seen in June 2010, excluding the onset of the coronavirus pandemic in April 2020.
Home prices across the nation are still 40% higher than pre-pandemic 2019 levels.
Major Average Advance 4th Day In a Row, Pending Home Sales Plunge
Barry Adams
28 Oct, 2022
New York City
Benchmark indexes on Wall Street powered ahead and investors digested weak tech earnings and strong performance from oil giants.
Chevron and Exxon Mobil reported a multi-fold jump in earnings after energy prices soared in the latest quarter.
Amazon.com dropped as much as 10% after the online retailer said fourth quarter revenue growth is likely to be weak.
The S&P 500 index increased 1.2% to 3,854.89 and the Nasdaq Composite rose 1.2% to 10,925.61.
Crude oil edged down $1.04 to $88.05 a barrel and natural gas decreased 18 cents to $5.68 a thermal unit.
PCE Price Index Held Steady
Personal Consumption Expenditure price index, a measure of inflation, rose 0.3% in September from the previous month.
The PCE index jumped 6.2% from a year ago and matched the rise in the previous month, according to the data released by the Bureau of Economic Analysis.
The PCE index, excluding food and energy, rose 0.5% on a monthly basis and jumped 5.1% from a year ago.
Pending Home Sales Fall In September
Pending home sales fell for the fourth month in a row after rising mortgage rates and elevated prices kept buyers away.
Pending home sales in September declined 10.5% from August and plunged 31% from a year ago, the National Association of Realtors said in a statement today.
"Persistent inflation has proven quite harmful to the housing market," said NAR Chief Economist Lawrence Yun.
"The Federal Reserve has had to drastically raise interest rates to quell inflation, which has resulted in far fewer buyers and even fewer sellers," added Yun.
The pending home sales index is at a low last seen in June 2010, excluding the onset of the coronavirus pandemic in April 2020.
Home prices across the nation are still 40% higher than pre-pandemic 2019 levels.
European Markets Lack Direction On Rate Worries
European markets traded sideways on the last day of the week and investors digested the latest batch of earnings a day after the ECB lifted the rate by 0.75%.
The DAX index rose 0.3% to 13,245.24, the CAC-40 index increased 0.5% to 6,274.76 and the FTSE 100 index declined 0.5$ to 7,040.98.
For the week, the DAX and the CAC-40 jumped 4% and the Swiss SMI index gained 3.3% and the FTSE 100 advanced 1%.
The yield on 10-year German Bunds increased to 2.09%, French bonds rose to 2.62%, the UK Gilt increased to 3.45% and Italian bonds to 4.19%.
The euro traded at 99.59 U.S. cents and the British pound inched up to $1.15.
Brent crude decreased to $1.01 to $95.92 a barrel and TTF natural gas futures rose 2.5% to 110.45 euros a MWh.
Movers: Amazon.com, Apple, Chevron, ExxonMobil, Intel, Deckers Outdoor
Scott Peters
28 Oct, 2022
New York City
Amazon.com, Inc plunged 20.4% to $88.20 after the online retailer guided weak fourth quarter outlook.
Third quarter revenue increased 15% to $127.1 billion from $110.8 billion and North America segment sales increased 20% to $78.8 billion.
Net income in the quarter decreased to $2.9 billion or 28 cents from $3.2 billion or 31 cents a diluted share.
Amazon guided fourth quarter sales between $140.0 billion and $148.0 billion, an increase between 2% and 8% from a year ago.
This guidance anticipates an unfavorable impact of approximately 460 basis points from foreign exchange rates.
Apple Inc declined 1.1% to $143.81 after the computing and telecom devices maker reported fiscal fourth quarter results ending on September 24.
Revenue in the quarter rose 8% to $90.1 billion from $84.4 billion a year ago.
Net income in the quarter rose to $20.7 billion from $20.5 billion and diluted earnings per share increased to $1.28 to $1.24 a year ago.
Sales in the Americas rose to $39.8 billion from $36.8 billion and Greater China rose to $15.5 billion from $14.6 billion a year ago.
iPhone sales jumped to $42.6 billion from $38.9 billion a year ago.
Apple declared a cash dividend of 23 cents a share payable on November 10, 2022 to shareholders of record as of the close of business on November 7, 2022.
Chevron Corp gained 2.1% to $181.65 after the energy explorer and refiner said quarterly earnings nearly doubled.
Revenue in the quarter jumped to $66.6 billion from $44.7 billion a year ago.
Net income in the third quarter nearly doubled to $11.2 billion from $6.1 billion and diluted earnings per share jumped to $5.78 from $3.19 a year ago.
Deckers Outdoor Corp dropped 6.1% to $359.03 after the footwear maker reported earnings ahead of expectations and reaffirmed its full-year outlook.
Revenue in the fiscal second quarter ending in September increased 21.3% to $875.6 million compared to $721.9 million.
Net sales on a constant currency basis jumped 24.8%.
Domestic net sales increased 20.0% to $617.7 million from $514.6 million and International net sales advanced 24.4% to $257.9 million from $207.3 million a year ago.
Net income in the period declined to $101.5 million from $102.0 million and diluted earnings per share fell to $3.80 from $3.66 a year ago.
The company forecasted revenue in full-year fiscal 2023 ending in March between $3.45 billion and $3.50 billion and diluted earnings per share between $17.50 and $18.35.
DexCom, Inc jumped 8.7% to $110.06 after the continuous glucose monitoring system reported better-than-expected quarterly results.
Third quarter total revenue increased 18% from a year ago to $769.6 million and revenue in the U.S. rose 17% and international jumped 22%.
Net income increased to $101.2 million or 24 cents from $87.3 million or $0.21 per diluted share a year ago.
The company guided 2022 revenue between $2.88 billion and $2.91 billion, an increase between 18% and 19% from a year ago.
Exxon Mobil Corp jumped 2.2% to $109.90 after the energy company reported a surge in revenue and profit.
Total revenue in the third quarter jumped to $112.1 billion from $73.8 billion a year ago.
Net income in the period advanced to $20.2 billion from $6.94 billion and diluted earnings per share shot up four-fold to $4.68 from $1.57 a year ago.
The company declared a fourth quarter dividend of 91 cents a share payable to shareholders on record on December 9th.
Intel Corp jumped 7.3% to $28.12 after the semiconductor chipmaker posted better-than-expected quarterly results but the company lowered its full-year sales outlook.
Revenue in the third quarter declined 20% to $15.3 billion from $19.2 billion a year ago.
Net income in the quarter plunged 85% to $1.0 billion from $6.8 billion and diluted earnings per share dropped to 25 cents from $1.67 a year ago.
The company lowered its full-year 2022 revenue outlook between $63 billion and $64 billion from the previous range between $65 billion and $68 billion.
The company also took a $664 million restructuring charge in the quarter and said it plans to aggressively cut operating costs.
Mastercard Inc declined 0.3% to $318.16 after the payment processing company reported third quarter results.
Third quarter revenue increased 15.0% to $5.8 billion from $5.0 billion a year ago.
Net income increased 4% to $2.5 billion from $2.4 billion and diluted earnings per share rose to $2.58 from $2.44 a year ago.
Gross dollar volume increased 11% on a local currency basis to $2.1 trillion and cross-border volume growth jumped 44%.
Mastercard repurchased 4.7 million shares at a cost of $1.6 billion and paid $474 million in dividends, in the third quarter.
Quarter-to-date through October 24, the company repurchased 1.7 million shares at a cost of $505 million and $5.1 billion is available under the approved stock repurchase programs.
Apple Third Quarter Sales Rise 8%, iPhone Sales Up 10%
Scott Peters
27 Oct, 2022
New York City
Apple Inc declined 1.1% to $143.81 after the computing and telecom devices maker reported fiscal fourth quarter results ending on September 24.
Revenue in the quarter rose 8% to $90.1 billion from $84.4 billion a year ago.
Currency headwinds lowered the company sales by 600 basis points, chief executive Tim Cook said in an interview with CNBC.
Net income in the quarter rose to $20.7 billion from $20.5 billion and diluted earnings per share increased to $1.28 to $1.24 a year ago.
Sales in Americas rose to $39.8 billion from $36.8 billion and Greater China rose to $15.5 billion from $14.6 billion a year ago.
Sales in Europe jumped to $22.8 billion from $20.8 billion and in Japan fell to $5.7 billion from $6.0 billion a year ago.
iPhone sales jumped to $42.6 billion from $38.9 billion a year ago.
Apple declared a cash dividend of 23 cents a share payable on November 10, 2022 to shareholders of record as of the close of business on November 7, 2022.
Apple does not provide forward looking guidance.
Amazon.com Plunges 18% On Fourth Quarter Slow Growth Outlook
Scott Peters
27 Oct, 2022
New York City
Amazon.com, Inc plunged 20.4% to $88.20 after the online retailer guided weak fourth quarter outlook.
Third quarter revenue increased 15% to $127.1 billion from $110.8 billion and North America segment sales increased 20% to $78.8 billion.
Net income in the quarter decreased to $2.9 billion or 28 cents from $3.2 billion or 31 cents a diluted share.
Amazon guided fourth quarter sales between $140.0 billion and $148.0 billion, an increase between 2% and 8% from a year ago.
This guidance anticipates an unfavorable impact of approximately 460 basis points from foreign exchange rates.
After Hours: Amazon.com, Apple, DexCom, Mastercard
Scott Peters
27 Oct, 2022
New York City
Amazon.com, Inc plunged 20.4% to $88.20 after the online retailer guided weak fourth quarter outlook.
Third quarter revenue increased 15% to $127.1 billion from $110.8 billion and North America segment sales increased 20% to $78.8 billion.
Net income in the quarter decreased to $2.9 billion or 28 cents from $3.2 billion or 31 cents a diluted share.
Amazon guided fourth quarter sales between $140.0 billion and $148.0 billion, an increase between 2% and 8% from a year ago.
This guidance anticipates an unfavorable impact of approximately 460 basis points from foreign exchange rates.
Apple Inc declined 1.1% to $143.81 after the computing and telecom devices maker reported fiscal fourth quarter results ending on September 24.
Revenue in the quarter rose 8% to $90.1 billion from $84.4 billion a year ago.
Net income in the quarter rose to $20.7 billion from $20.5 billion and diluted earnings per share increased to $1.28 to $1.24 a year ago.
Sales in Americas rose to $39.8 billion from $36.8 billion and Greater China rose to $15.5 billion from $14.6 billion a year ago.
iPhone sales jumped to $42.6 billion from $38.9 billion a year ago.
Apple declared a cash dividend of 23 cents a share payable on November 10, 2022 to shareholders of record as of the close of business on November 7, 2022.
DexCom, Inc jumped 8.7% to $110.06 after the continuous glucose monitoring system reported better-than-expected quarterly results.
Third quarter total revenue increased 18% from a year ago to $769.6 million and revenue in the U.S. rose 17% and international jumped 22%.
Net income increased to $101.2 million or 24 cents from $87.3 million or $0.21 per diluted share a year ago.
The company guided 2022 revenue between $2.88 billion and $2.91 billion, an increase between 18% and 19% from a year ago.
Mastercard Inc declined 0.3% to $318.16 after the payment processing company reported third quarter results.
Third quarter revenue increased 15.0% to $5.8 billion from $5.0 billion a year ago.
Net income increased 4% to $2.5 billion from $2.4 billion and diluted earnings per share rose to $2.58 from $2.44 a year ago.
Gross dollar volume increased 11% on a local currency basis to $2.1 trillion and cross-border volume growth jumped 44%.
Mastercard repurchased 4.7 million shares at a cost of $1.6 billion and paid $474 million in dividends, in the third quarter.
Quarter-to-date through October 24, the company repurchased 1.7 million shares at a cost of $505 million and $5.1 billion is available under the approved stock repurchase programs.
GDP Rebound Fails to Ease Recession Fears, Tech Sell-off Continues
Barry Adams
27 Oct, 2022
New York City
Benchmark indexes turned lower after rising in the morning after third quarter GDP rebounded.
U.S. GDP in the third quarter accelerated to 2.6% annual rate but the resilient consumer spending growth slowed and residential construction weakened.
Investors weighed the prospect of recession but also noticed a sign of optimism after price index of purchases rose at a slower pace in the GDP report.
In addition, tech stocks fell further on the ongoing digital advertising slowdown and Meta, parent of Facebook, dropped 24% to the level last seen in 2016.
Microsoft, Apple, Alphabet and Amazon dropped between 2% and 4%.
The S&P 500 index eased 0.6% to 3,808.01 and the Nasdaq Composite index dropped 1.6% to 10,792.68.
Crude oil increased $1.27 to $89.18 and natural gas fell 29 cents to $5.37 a thermal unit.
The yield on 2-year Treasury notes edged lower to 4.33%, 10-year Treasury notes declined to 3.94% and 30-year bonds to 4.10%.
US GDP Rebounds, Durable Goods Orders Rise
U.S. GDP in the third quarter rose at an annual rate of 2.6% after falling for two quarters in a row, according to the report released by the Bureau of Economic Analysis Thursday.
The GDP rebounded from the 0.6% decline in the second quarter after improvement in net international trade helped the economy to rebound, supported by resilient consumer spending and a rise in business investment.
Bond yields fell sharply after the BEA report showed a marked decrease in growth in the price index, a measure of inflation.
The PCE price index increased 4.2% from 7.3% and excluding food and energy prices, the index increased 4.5% from 4.7% in the second quarter.
The seasonally adjusted durable goods orders increased 0.4% in September from the previous month to $274.4 billion, reported U.S. Census Bureau Thursday.
The September increase follows the revised 0.2% rise in August.
On a yearly basis, orders rose 10.9%.
Shipments rose 0.3% on a monthly basis and jumped 11.3% from a year ago.
U.S. Weekly Jobless Claims Stable
In other economic news, weekly jobless claims increased to 217,000 in the week ending on October 22, an increase of 3,000 from the unrevised claims of 214,000 from the previous week.
U.S. Stock Movers
Ford Motor Company dropped 0.1% to $12.83 after the automaker reported a third quarter loss of $827 million.
Ford said larger-than-expected loss was driven by $1 billion in higher supply chain issues related costs and parts shortages affecting at least 40,000 vehicles sales.
Meta Platforms plunged 24.5% to $97.50 after the social media platform operator reported second quarterly fall in revenue in a row.
Third quarter revenue declined 4% to $27.7 billion and net income plunged 52% to $4.4 billion from $5.2 billion a year ago.
Diluted earnings per share fell to $1.64 from $3.22 a year ago.
The company also forecasted revenue in the fourth quarter to fall between $30 billion and $32.5 billion, lower than $33.6 billion in the fourth quarter 2021.
McDonald's increased 3.4% to $265.45 after the fast food chain operator reported better-than-expected quarterly results and added that the U.S. store traffic rose despite the increase in menu prices.
The fast food chain operator said global comparable sales increased 9.5% and the U.S. comparable sales increased 6.1%, ninth quarterly increase in a row.
Third quarter revenues declined 5% to $5.8 billion from $6.2 billion a year ago.
Net income dropped 8% to $1.98 billion from $2.1 billion and diluted earnings per share fell 6% to $2.68 from $2.86 a year ago.
McDonald's increased quarterly cash dividend by 10% to $1.52 a share.
ECB Hikes Rates and Forecasts More Increases to Follow
The European Central Bank lifted its key lending rate by 75 basis points, the second large-size rate hike in a row and third increase this year.
The central bank also said it plans to revise terms of targeted longer term refinancing operations or TLTROs, the plan designed to encourage banks to lend to customers.
The interest rate charged for such facilities will be changed on November 23 and the banks will be given an opportunity for early repayment.
The facility was created to incentivize banks to increase lending in the real economy at the height of the pandemic but since the economic conditions have changed and inflation has soared from less than 2% to above 10%.
After the latest rate hike, the main lending rate was revised higher to 1.5%, the level not seen since 2009.
Despite the latest rate increase, rates are still in negative territory and the central bank is not done with rate increases.
Movers: Ford Motor, Meta, McDonald's, Morningstar, O'Reilly Auto, Raymond James, Shopify, Teladoc
Scott Peters
27 Oct, 2022
New York City
Credit Suisse Group AG plunged 19.6% to 3.85 after the Swiss bank reported larger-than-expected loss.
Third quarter revenue plunged 30% to 3.8 billion Swiss francs and swung to a loss of 342 million Swiss francs from a profit of 1.0 billion Swiss francs a year ago.
Ford Motor Company rose 2.9% to $13.20 after the automaker reported a third quarter loss of $827 million.
Ford said larger-than-expected loss was driven by $1 billion in higher supply chain issues related costs and parts shortages affecting at least 40,000 vehicles sales.
Meta Platforms plunged 22.2% to $100.61 after the social media platform operator reported a second quarterly fall in revenue in a row.
Third quarter revenue declined 4% to $27.7 billion and net income plunged 52% to $4.4 billion from $5.2 billion a year ago.
Diluted earnings per share fell to $1.64 from $3.22 a year ago.
The company also forecasted revenue in the fourth quarter to fall between $30 billion and $32.5 billion, lower than $33.6 billion in the fourth quarter 2021.
McDonald's Corp increased 3.5% to $265.45 after the fast food chain operator reported better-than-expected quarterly results and added that the U.S. store traffic rose despite the increase in menu prices.
The fast food chain operator said global comparable sales increased 9.5% and the U.S. comparable sales increased 6.1%, ninth quarterly increase in a row.
Third quarter revenues declined 5% to $5.8 billion from $6.2 billion a year ago.
Net income dropped 8% to $1.98 billion from $2.1 billion and diluted earnings per share fell 6% to $2.68 from $2.86 a year ago.
McDonald's increased quarterly cash dividend by 10% to $1.52 a share.
Morningstar, Inc increased 3.6% to $228.20 after the financial information company posted third quarter revenue increased 9.2% to $468.2 million.
Net loss in the third quarter was $9.0 million, or 21 cents a diluted share, compared to net income $49.0 million, or $1.13 a diluted share.
The company also reduced its operations in China and took a one-time charge of $30.1 million.
O'Reilly Automotive Inc gained 3.9% to $808.30 after the auto parts retailer reported the third quarter sales increased 9% to $3.80 billion from $3.48 billion.
Net income increased to 5% to $585 million or 15.4% of sales from $559 million or 16.1% of sales.
Diluted earnings per common share increased 14% to $9.17 on 64 million shares from $8.07 on 69 million shares a year ago.
Raymond James Financial, Inc increased 6.6% to $114.02 after the financial services company reported fiscal fourth quarter revenue increased 5% to $2.83 billion.
Net income in the quarter increased to $437 million or $1.98 a diluted share from $429 million or $2.02 a share from a year ago.
Raymond James repurchased 600,000 shares of common stock for approximately $62 million at an average price of approximately $104 per share in the fiscal fourth quarter.
Including additional share repurchases totaling $38 million in October, approximately $800 million remained available under the current approved share repurchase authorization as of October 26, 2022.
The company revised full-year 2022 revenues in the range of $14.1 billion and $14.3 billion and comparable same store sales to rise between 4.5% and 5.5%.
Shopify Inc surged 18.2% to $34.34 after the e-commerce company reported a smaller-than-expected loss in its latest quarter.
Shopify reported third quarter sales increased 22% to $1.36 billion from $1.13 billion a year ago.
In the quarter, the company swung to a net loss of $187.3 million from a profit of $1.14 billion and diluted loss per share of 12 cents from a profit of 90 cents a year ago.
Gross merchandise volume rose 11% to $46.2 billion and Gross payment volume rose 22% to $25 billion from $20.5 billion a year ago.
Teladoc Health Inc rose 7.2% to $28.65 after the online healthcare service provider reported smaller-than-expected loss in its latest quarter.
Revenue in the third quarter increased 17% to $611.4 million from $521.7 million a year ago.
Net loss in the period fell 13% to $73.5 million from $84.3 million and diluted loss per shrank to 45 cents from 53 cents a year ago.
The company guided fourth quarter revenue between $625 million and $640 million and net loss per share between 10 cents and 40 cents and total online visits between 4.7 million and 4.9 million.
U.S. GDP Accelerates to 2.6% in Third Quarter
Brian Turner
27 Oct, 2022
New York City
U.S. GDP in the third quarter rose at an annual rate of 2.6% after falling for two quarters in a row, according to the report released by the Bureau of Economic Analysis Thursday.
The GDP rebounded from the 0.6% decline in the second quarter after improvement in net international trade helped the economy to rebound, supported by resilient consumer spending and a rise in business investment.
Bond yields fell sharply after the BEA report showed a marked decrease in growth in the price index, a measure of inflation.
The PCE price index increased 4.2% from 7.3% and excluding food and energy prices, the index increased 4.5% from 4.7% in the second quarter.
Durable Goods Orders Rise 0.4%, Shipments Increase 0.3%
Brian Turner
27 Oct, 2022
New York City
The seasonally adjusted durable goods orders increased 0.4% in September from the previous month to $274.4 billion, reported U.S. Census Bureau Thursday.
The September increase follows the revised 0.2% rise in August.
On a yearly basis, orders rose 10.9%.
Shipments rose 0.3% on a monthly basis and jumped 11.3% from a year ago.
Weekly Jobless Claims Rise to 217,000
Brian Turner
27 Oct, 2022
New York City
Weekly jobless claims increased to 217,000 in the week ending on October 22, an increase of 3,000 from the unrevised claims of 214,000 from the previous week.
The Department of Labor report also noted 4-week moving average increased 6,750 to 219,000, from the previous week's unrevised average of 212,250.