Movers: Citigroup, Fluor, Home Depot, Take Two Interactive, United Air, Walmart

Barry Adams
17 May, 2022
New York City

Citigroup increased 6.6% to $50.63 after Warren Buffett controlled Berkshire Hathaway in a regulatory filing revealed a stake of $3 billion in the bank. 

Wells Fargo, JPMorgan, PNC Financial Services gained more than 2%. 

Berkshire Hathaway Chairman Buffett criticized investment bankers for turning the stock market into a casino during the latest and previous annual general meeting of shareholders but at the same time continues to invest in banks and investment brokerage companies. 

Fluor Corp fell 4.8% to $25.84 after the government agency canceled its 10-year contract to manage nuclear weapons production sites. 

The National Nuclear Security Administration canceled a 10-year $28 billion controversial contract to take "voluntary corrective action" and to assess the alleged conflict of interests.

The Department of Energy's agency awarded the contract in November 2021 and terminated the management and operations contract of Y-12 National Security Complex in Tennessee and Pantex Plant in Texas. 

Bechtel and BWXT led teams filed complaints with the Government Accountability Office and alleged conflicts of interests and appearance of bidding process improprieties. 

Home Depot gained 0.2% to $296.71 after the home improvement retailer reported first quarter revenues increased 3.8% to $39 billion and net income rose slightly to $4.2 billion from $4.1 billion a year ago. 

Comparable same store sales at the U.S. locations increased 1.7%. 

The retailer lifted annual sales growth outlook to 3% and diluted earnings per share to increase in "mid-single digits."

Take Two Interactive advanced 9.2% to $120.99 after the company reported fiscal fourth quarter revenues increased 4% to $3.5 billion and net income dropped nearly 50% to $110.1 million.

The online revenues or digital bookings increased 9% from a year ago to $833.3 million.  

United Airlines Holdings increased 5.9% to $46.09 after the company in a regulatory filing said "the demand environment has continued to improve, resulting in a higher unit revenue outlook for the second quarter 2022. The price of oil has also continued to increase, resulting in a higher expected fuel price for the second quarter 2022."

The airline said average cost of fuel per gallon is now expected at $4.03 from the previous estimate of $3.43 a gallon in the second quarter. 

Total available revenues per seat mile is expected to increase between 23% and 25% from the previous estimate of 17% compared to 2019. 

Walmart Inc declined 8.2% to $136.15 after the retail giant said first quarter revenues increased 2.4% from a year ago to $141.6 billion and net income declined 24.8% to $2.1 billion.  

The retailer also guided full-year fiscal year earnings per share to decline 1% compared to previous guidance of an increase in mid-single digits and in the second quarter increase "flat to slightly" from the previous estimate of increase in "low to single digits." 

U.S. Indexes Soar After Three Days of Lackluster Trading

Barry Adams
17 May, 2022
New York City

U.S. stocks advance after three days of stable prices and the rising prospects of easing restrictions in Shanghai. 

The S&P 500 index increased 1.5% to 4,068.33 and the Nasdaq Composite index soared 2.08% to 11,905. 57. 

U.S. stocks jumped after three days of lackluster trading and traders looked for bargains in tech stocks. 

Federal Reserve Chairman Jerome Powell is scheduled to deliver his comments on the central bank's plan to tackle rising inflation at a Wall Street Journal conference at 2 p.m. ET. 

The advance estimate of retail and food services sales adjusted for seasonal factors but not adjusted for price increased 0.9% in April from the previous month and jumped 8.2% from April 2021. 

Retail and food services sales in April were $677.7 billion.  

The March retail sales were revised higher to 0.7% from the previous month and 1.4% from a year ago. 

April retail trade sales increased 0.7% from March and increased 6.7% from a year ago. Gasoline sales jumped 36.9% from a year ago and food services and drinking places sales increased 19.8% from  a year ago. 

Walmart Stores reported weaker than expected quarterly results and lowered outlook for the year. 

Home Depot jumped 5% after the home improvement retailer reported strong quarterly sales and earnings and the company lifted 2022 annual sales outlook to 3% increase and lifted earnings growth in the mid-single digits. 

Bank stocks advance after Warren Buffett controlled Berkshire Hathaway increased its stake in Citigroup by $3 billion. 

Other banks including JPMorgan Chase, and Wells Fargo traded higher on the Buffett's investment.  

European markets traded higher after bargain hunters revved up buying in large and mid cap stocks. 

The DAX index gained 1.6% to 14,191.32, the CAC-40 index advanced 1.3% to 6,432.77, and the FTSE 100 index gained 0.8% to 7,526.46. 

Investors cheered the latest jobs reports from France and the U.K. 

French unemployment rate in the first quarter declined to 7.3%, the lowest in 14 years and the U.K. jobless rate fell to 3.7% in the period, the lowest since 1974. 

Eurozone growth in the first quarter increased 0.3% from the previous quarter matching rate in the fourth quarter, according to the data released by the Eurostat. 

Asian markets advanced after China authorities suggested Covid-19 restrictions may be eased as early as June. 

The Nikkei 225 index in Tokyo increased 0.4% to 26,695.75, the Hang Seng Index in Hong Kong advanced 3.3% to 20,602.52, and the ASX 200 index in Sydney added 0.3% to 7,112.50. 

The Sensex index gained 2.54% or 1,344.63 to 54,318 and the Nifty index advanced 2.6% or 417.00 to 16,259.50. 

Shanghai hit the zero Covid-19 transmission for three days in a row raising the prospect of gradual lockdown easing as early as June, according to local reports quoting local authorities. 

The Nikkei index advanced for the third day in a row but gains were muted on the lingering worries of Fed rate uncertainties and elevated worldwide food and energy prices.

Inpex gained 3.5% and Japan Petroleum advanced 3.6%. 

Asahi Holdings declined 11% and Dentsu fell 6% on weaker than expected financial results.  

Tech stocks in Hong Kong led the surge. Alibaba Group soared 7.03% to HK$90.55, Tencent Holdings jumped 5% to HK$368.40, and JD.com added 7.04% to HK$214.80. 

April Retail Sales Extend 2022 Advance

Brian Turner
17 May, 2022
New York City

The advance estimate of retail and food services sales adjusted for seasonal factors but not adjusted for price increased 0.9% in April from the previous month and jumped 8.2% from April 2021. 

Retail and food services sales in April were $677.7 billion.  

The March retail sales were revised higher to 0.7% from the previous month and to 1.4% from a year ago. 

April retail trade sales increased 0.7% from March and increased 6.7% from a year ago. 

Gasoline sales jumped 36.9% from a year ago and food services and drinking places sales increased 19.8% from  a year ago. 

Gasoline sales decreased 2.7% from March after the fuel cost eased and food services and drinking places sales increased 2% in the period. 

Grocery store sales declined 0.1% in April from the previous month but rose 8.1% from a year ago. 

Retail sales increased for the fourth month in a row and the reported data are not adjusted for price increases. 

Asian Markets Advance On Improving Covid-19 Conditions In Shanghai

Arjun Pandit
17 May, 2022
Mumbai

Asian markets advanced after China authorities suggested Covid-19 restrictions may be eased as early as June. 

The Nikkei 225 index in Tokyo increased 0.4% to 26,695.75, the Hang Seng Index in Hong Kong advanced 3.3% to 20,602.52, and the ASX 200 index in Sydney added 0.3% to 7,112.50. 

The Sensex index gained 2.54% or 1,344.63 to 54,318 and the Nifty index advanced 2.6% or 417.00 to 16,259.50. 

Shanghai hit the zero Covid-19 transmission for three days in a row raising the prospect of gradual lockdown easing as early as June, according to local reports quoting local authorities. 

The Nikkei index advanced for the third day in a row but gains were muted on the lingering worries of Fed rate uncertainties and elevated worldwide food and energy prices.

Inpex gained 3.5% and Japan Petroleum advanced 3.6%. 

Asahi Holdings declined 11% and Dentsu fell 6% on weaker than expected financial results.  

Tech stocks in Hong Kong led the surge. Alibaba Group soared 7.03% to HK$90.55, Tencent Holdings jumped 5% to HK$368.40, and JD.com added 7.04% to HK$214.80. 

India's wholesale price index in April surged 15.08% in April after rising at 14.55% in March, the data released by the Ministry of Commerce and Industry showed. 

The February inflation increase was revised lower to 13,43% from the previous estimate of 13.11%. 

Wholesale prices in April 2021 rose 10.74%.  

Life Insurance Company of India listed its share at 867.20 rupees on the Bombay Stock Exchange, a discount of 8.6% from its issue price of 949 rupees. 

LIC closed at 875.45 in trading on the BSE and the largest insurance company's public offering raised $2.75 billion. 

 Bargain hunting lifted manufacturing stocks in Korea and the Kospi index advanced 0.9% to 2,620.44. 

Samsung Electronics, SK Hynix, and LG Energy Solution gained more than 2%. 

The Australian market advance was tepid after the May RBA minutes of meeting showed that the rate hikes are likely at the next meeting in June. 

James Hardie declined more than 3% after the fiber cement maker reported weaker-than-expected annual results. 

U.S. Stocks Trapped in Bond and Oil Market Divergence

Barry Adams
16 May, 2022
New York City

U.S. stocks struggled in choppy trading as traders took opposite bets for rising recession prospects and hunted bargains in beaten down sectors. 

The S&P 500 index declined 0.4% to 4,008.03 and the Nasdaq Composite index fell 1.2% to 11,662.79. 

Crude oil advanced 3% to $113.94 a barrel and the yield on 10-year U.S. Treasury notes edged down to 2.884%. 

The indexes opened lower and managed to cross the flat-line in the fifth attempt in the late afternoon but the gains evaporated after sellers overwhelmed buyers in the final hour of trading. 

In choppy trading, investors debated the onset of global slowdown after China reported April retail sales fell 11% and industrial production contracted. 

Moreover, the euro zone growth estimate was lowered in the current and the next year by the European Commission and Germany reported record wholesale price surge since the record keeping began in 1962. 

However the economic worries did not stop companies from launching takeover offers. 

JetBlue launched a tender offer to acquire Spirit Airlines thwarting its merger plan with Frontier Group.  

India's Adani Group agreed to acquire for $10.5 billion stakes in cement companies controlled by Switzerland-based Holcim Limited. 

Carlyle Group agreed to buy the defense contractor ManTech for $4.2 billion. 

European markets traded lower after the European Commission lowered economic growth estimate in the current year to 2.7% from the previous forecast of 4.0% in March and revised lower to 2.3% from 2.7% in 2023. 

Separately, the German statistics agency showed that wholesale inflation perked up to 23.8% in April from 22.6% in March, record increase since 1962 when record keeping began. 

In European trading, the DAX index declined 0.5% to 13,937.77, the CAC-40 index fell 0.2% to 6,348.92, and the FTSE 100 index gained 0.25% to 7,436.98. 

JetBlue Hopes Direct Offer Will Convince Spirit Shareholders to Vote Against Frontier Merger

Barry Adams
16 May, 2022
New York City

JetBlue took its offer to acquire Spirit Airlines directly to shareholders after the ultra discount carrier rejected its offer for the second time as the low fair takeover saga dragged to the fifth month. 

The revised JetBlue's proposal offers $30 a share in cash or values Spirit Airlines for $3 billion. 

Spirit agreed to merge with the rival ultra low fare carrier Frontier in a $2.6 billion deal in January and shareholders are expected to vote on the deal on June 10. 

Two carriers also have complimentary route networks and the former chief executive of Spirit now runs Frontier. 

In April, JetBlue offered $33 a share or $3.3 billion to acquire Spirit but Spirit's board of directors rejected the deal on the worries that the U.S. Department of Justice was unlikely to approve the offer and the deal carried a substantial completion risk. 

JetBlue has been pursuing Spirit for a long time and airlines are struggling with pilot shortage exacerbated by Covid-19 pandemic induced layoffs and fewer pilots trained and licensed in the last two years. 

The merger of Spirit with either airline will create the fifth largest airline and about 80% of the market is controlled by American Airlines, Delta, United, and Southwest. 

In stock trading, Spirit Airlines gained 13.3% to $19.22, JetBlue declined 4.7% to $9.58, and Frontier Group rose 7.4% to $9.37. 

The deal structure may change since Frontier stock has fallen from above $14 price when the deal was first agreed in January at $25.83 for each Spirit share. 

Carlyle Agrees to Acquire ManTech for $4 Billion

Barry Adams
16 May, 2022
New York City

ManTech International jumped 15.2% to $94.39 after the defense contractor agreed to be acquired by Carlyle Group for $4.2 billion. 

The all-cash offer of $96 a share represents 32% premium to $72.82 a share before the first media report indicating an impending offer or 17% to the closing price of $81.97 on May 13, 2022. 

ManTech is headquartered in Herndon, Virginia and employs about 9,800 people and expects to generate 2022 revenues of $2.65 billon. 

The defense contractor's portfolio of services include full-spectrum cyber security, intelligent systems engineering, advanced data analytics, and secure mission and enterprise IT, according to an investor presentation by the company. 

The company has a backlog of $10.3 billion of orders and $6 billion of proposals in the pipeline at the end of March 2022. 

In 2021, the company reported $2.55 billion in revenues and net income of $137 million or $3.37 a share. 

Movers: Carvana, ManTech, Rivian, Spirit, Twitter, Warby Parker

Barry Adams
16 May, 2022
New York City

Carvana Inc jumped 8.8% to $41.40 after the user-car retailer stated in a regulatory filing that the company plans to cut costs and expects to be profitable in 2023 on a core earnings basis. 

E-commerce and Internet linked stocks were on the defensive after tech stocks extend losses to the eighth week. 

Shopify declined 10% to $360.74, GitLab Inc fell 8.5% to $40.74, Sprout Social Inc fell 7.4% to $46.56, and Twilio Inc declined 7.5% to $102.44.  

ManTech International jumped 15.2% to $94.39 after the defense contractor agreed to be acquired by Carlyle Group for $4.2 billion. 

The all-cash offer of $96 a share represents 32% premium to $72.82 a share before the first media report indicating an impending offer or 17% to the closing price of $81.97 on May 13, 2022 

Rivian Automotive Inc fell 3.3% to $25.82 after Ford Motor Company sold additional 7 million shares according to a regulatory filing with the SEC. 

Last week, the automaker sold 8 million shares for $188 million after the initial public offering lock up expired on May 9th. 

After the completion of two sales, Ford's stake in Rivian is 9.8%. 

Spirit Airlines jumped 11% to $18.88 after JetBlue launched a hostile takeover offer for $30 a share. 

Spirit shareholder meeting is scheduled on June 10 to vote on its merger plan with Frontier. 

Frontier Group Holdings increased 5.9% to $9.23. 

Twitter Inc declined 4.7% to $38.76 on growing speculation that the billionaire investor Elon Musk may not follow through with his offer to takeover the company. 

Warby Parker Inc declined 1.8% to $17.11 after the company reported unexpected quarterly loss and revenues fell short of analysts' expectations. 

Adani Acquires Holcim Cement Stake in India for $10.5 Billion

Arjun Pandit
16 May, 2022
New York City

Adani Group plans to acquire stakes in two cement companies held by Switzerland-based Holcim Limited for as much as $10.5 billion. 

The deal has been in the works for two months and attracted offers from the largest cement maker UltraTech and Jindal Group of companies. 

Gautam Adani, India's richest man, controlled Adani Enterprises and related companies plan to offer $6.4 billion in cash for the 63.1% stake in Ambuja Cements Ltd and 54.5% stake in ACC Limited. 

The remaining stakes will be purchased through the open offers meeting the regulatory requirements of local stock exchanges. 

Ambuja Cements jumped 2.3% to 367 rupees, below the offer price of 385 rupees and ACC gained 3.8% to 2,192.50 rupees below the offer price of  2,300 rupees. 

With the acquisition. Adani Group will vault to the second largest cement producer in India. 

Ambuja and ACC with the combined cement production capacity of 70 million tons will lag only the largest maker UltraTech with 120 million ton annual capacity. 

Holcim first acquired its stake in Ambuja Cement in January 2006 and later increased its stake in a complex transaction involving ACC Limited in 2013. 

At the time of acquisition, Gujarat Ambuja was the largest cement maker with 33 million tons of annual capacity ahead of the Aditya Birla Group controlled UltraTech Cement. 

U.S. Stocks Extend Losses On Global Slowdown Worries

Barry Adams
16 May, 2022
New York City

U.S. market indexes fell as investors faced the prospect of global slowdown and stubbornly high inflation.  

The S&P 500 index fell 0.1% to 4,014.50 and the Nasdaq Composite index declined 0.2% to 12,349.30. 

The Fed's lagging response to surging inflation and the growing possibilities of an economic slowdown have dampened the market sentiment around the world. 

With the elevated U.S. inflation and stubbornly high international energy prices after the U.S. and Europe placed sanctions on Russia, interest rates are significantly lagging the consumer prices. 

With no end in sight for war in Europe, crude oil prices are trading above $110 a barrel and wheat prices soared 6% to $12.48 a bushel and extended year-to-date gain to 61%. 

The latest surge came after India restricted wheat exports on the worries that the elevated energy prices are stoking domestic food prices. 

On the earnings front, Home Depot, Target, and Walmart Stores are scheduled to release earnings this week. 

Spirit Airlines jumped 18% after JetBlue launched a hostile takeover offer for $30 a share. Spirit shareholder meeting is scheduled on June 10 to vote on its merger plan with Frontier. 

Twitter Inc declined more than 2% on growing speculation that the billionaire investor Elon Musk may not follow through with his offer to takeover the company. 

Warby Parker declined nearly 4% after the company reported unexpected quarterly loss and revenues fell short of analysts' expectations. 

Carvana Inc jumped more than 10% after the user-car retailer stated in a regulatory filing that the company plans to cut costs and expects to be profitable in 2023 on core earnings basis. 

European markets traded lower after the European Commission lowered euro zone economic growth estimate in the current year to 2.7% from the previous forecast of 4.0% in March and revised lower to 2.3% from 2.7% in 2023. 

Separately, the German statistics agency showed that wholesale inflation perked up to 23.8% in April from 22.6% in March, record increase since 1962 when record keeping began. 

In European trading, the DAX index declined 0.5% to 13,937.77, the CAC-40 index fell 0.2% to 6,348.92, and the FTSE 100 index gained 0.25% to 7,436.98. 

Deepening Economic Gloom In China Drag Asian Markets

Arjun Pandit
16 May, 2022
New York City

Asian markets traded with a downward bias after the latest economic data from China and Japan underwhelmed investors. 

The Nikkei index increased 0.5% to 26,547.05, the Hang Seng Index added 0.3% to 19,950.21, and the SSE Index in Shanghai declined 0.3% to 3,073.75. 

The Kospi index in Korea fell 0.3% to 2,596.58. 

April retail sales and industrial production data were significantly weaker than expected in China. 

Retail sales declined 11.1%, twice the level expected, from a year ago and industrial output declined 2.9% contrary to the expectation of an expansion, the National Bureau of Statistics said today.  

Central bank also left its key rate unchanged but lowered mortgage rates for the first time home buyer. 

In Japan, the producer price index jumped 10.0% in April after rising at the upwardly revised 9.7% in March, the Bank of Japan said today.  

Stocks in Mumbai gained for the first time in seven days in cautious trading after Asian and European markets were muted. 

The Sensex index gained 180.22 or 0.2% to 52,973.84 and the Nifty index advanced 60.85 or 0.4% to 15,842.30.

Cement stocks were in focus after Adani Group won the auction to acquire Switzerland-based Holcim Limited's stake in Ambuja and ACC for $10 billion. 

The deal was in works for more than two months and attracted bids from several large conglomerates in India. 

Holcim has been divesting its cement holdings and shifting the business mix to higher value added products including concrete aggregates. 

Ambuja Cement added 2.3% to 367.40 rupees and ACC advanced 3.8% to 2,192 rupees. 

India Bans Wheat Exports Reacting to Heat Wave and Domestic Food Price Surge

Arjun Pandit
14 May, 2022
New York City

Late Friday evening the government banned the export of wheat citing falling inventories and production and rising domestic prices. 

Food Secretary Sudhanshu Pandey and Commerce Secretary B V R Subrahmanyam jointly addressed a press conference and said that the unregulated export often leads to hoarding. 

The minsters were quick to add that no ban is "in perpetuity" and the government will review the ban if domestic conditions improve. 

India exported about 1.4 million tons of wheat in April but the rising food prices and falling crop production changed the government's mind this week. 

Wheat production is likely to fall at least 5% below the 111 million tons target level and spot prices have surged as much as 20% above the 20,150 rupees or $270 a ton fixed-price set by the government.

"Wheat production is expected to decline in the current year to 105 million tons but there is no dramatic fall in production," Food Secretary Pandey noted.    

The Indian government had set the wheat export target of 10 million tons this year after exporting 7.5 million tons in the financial year ending in March 2022. 

About half of India's exports were sent to the neighboring-country Bangladesh. 

The recent heat wave across the nation has dramatically changed agriculture conditions in the Northern region where most of the wheat is produced. 

Temperatures have reached above 45 degrees centigrade, 5 degrees above the normal in the last five weeks. 

International wheat price has surged to $480 a ton, significantly higher than the domestic price below $300 a ton set by the government. 

India is the second largest wheat producer in the world with a production of 110 million ton. 

China, the largest wheat producer, exported about 10 million tons of wheat of the 134 million tons of production in 2021. 

Russia, the third largest wheat producer, exported about 37 million tons of the 85 million tons according to the data available from the World Trade Organization.   

Ukraine exported 20 million tons of the 25 million tons of wheat production in 2021, according to the government statistics.  

Australia and the United States each exports about 2.7 million tons of wheat. 

Russia's invasion of Ukraine and the Western nations' sanctions on Russia removed a significant amount wheat available for importers. 

At least six nations have put restrictions or ban on wheat exports including Philippines, Argentina, Kazakhstan, Turkey, Bulgaria, and Hungary. 

India's Inflation Reaches 8-Year High In April After Western Sanctions Sustain Higher Oil Prices

Arjun Pandit
14 May, 2022
New York City

The Consumer Price Index jumped in April to 7.79%, an 8-year high on the back of elevated food and energy prices. 

The latest inflation rate was only exceeded by the 8.33% rate in May 2014. 

The inflation rate in April 2021 was 4.23%. 

The data released by the National Statistical Office showed higher prices of vegetables, oil, fuel, and food items drove the price surge in the month. 

The inflation surged above the Reserve Bank of India's target rate of 4% for the fourth month in a row. 

The rural and urban food price inflation rose to 8.38% in April from 7.68% in March, a 17-month high. 

Inflation rate in the rural areas was at an 8-year high rate of 8.38% in April and urban areas was at an 18-month high 7.09%.  

Core rate of inflation in April which excludes food and energy prices rose to a 95-month high of 6.97% and stayed above 5% for the 24th month in a row. 

Health service inflation increased 7.2% rate, a 16-month high and prices for education services rose at 23-month high of 4.12%. 

The sustained rate of high inflation forced the Reserve Bank of India to announce an unscheduled repo rate increase of 40 basis points or 0.4% and CRR by 0.5% on May 11th. 

If the current trend persists then the inflation rate is likely to stay above 7% for the fiscal 2023. 

RBI may be forced to increase rates at the next two meetings in a row and kill the additional demand and slow down the economic recovery. 

The Industrial Production Index increased 1.9% in March, a separate report from the statistics bureau noted. 

Nasdaq Led Rebound Trimmed Weekly Losses in New York and Europe

Barry Adams
13 May, 2022
New York City

U.S. stocks rebounded from a week of losses and leading indexes advanced as investors returned in search of tech bargains. 

The S&P 500 index increased 1.3% to 3,980.25 and the Nasdaq Composite advanced 1.8% to 11,569.50. 

Crude oil jumped 4% to $110.43 a barrel and the yield on 10-year bond to 2.93%. 

The indexes opened higher and quickly advanced in the session reaching intra-day high around 12:15 p.m. ET but began to track lower after crude oil price advanced and the rally failed to spread beyond the tech and energy sector. 

After an additional hour of trading regained momentum but trimmed the gains near the final fifteen minutes of trading. 

For the week, the S&P 500 declined 1.3% and the Nasdaq Composite fell 1.2%. 

Apple gained 2.5% to $146.10, Microsoft added 1.6% to $259.54, Meta Platforms advanced 3.4% to $197.74, and Amazon jumped 5.2% to 2,250.20. 

Twitter Inc soared 11% after Elon Musk demanded the company to confirm the number of fake accounts operated by spam or robots. 

Twitter in a regulatory filing had said about 5% of its active accounts are likely to be operated by robots or appear to be fake. 

Exxon Mobil added 2.9% to $88.82, Chevron gained 2% to $167.93, Schlumberger NV increased 4.2% to $40.73. 

European markets advanced after bargain hunters searched for stocks in energy and tech sectors. 

The DAX index increased 1.5% to 13,938.2, the CAC-40 index gained 1.6% to 6,303.02, and the FTSE 100 index added 1.6% to 7,348.66. The benchmark SMI index in Switzerland gained 1.3% to 11,650.42.

For the week, the DAX gained 2.8%, the CAC-40 advanced 2.2%, and the FTSE 100 index added 0.4%. 

Industrial output in the euro zone declined 1.8% in March from February and fell 0.8% from a year ago, the statistics agency of the region Eurostat said today. 

The weakening supply chains and rising prices in the region impacted the output in the region. 

The agency also revised lower February output to 0.5% increase from 0.7% and to 1.7% gain from 2.0% on a monthly and annual basis respectively. 

Separately, the French statistics agency said inflation rose at an annual pace of 5.4% in April from a year ago. 

Energy stocks were in demand after crude oil prices continued the ascent on the worries that resumption of economic activities across Europe and China may lead to acute shortages. 

Brent crude traded up 1.6% to $109.2 a barrel.  

Royal Dutch Shell and BP Plc gained more than 1%. 

Renault gained more than 2% after the company said it is looking to separate its research and development arm focused on building electric vehicles. 

Finland-based Fortum Oyj  jumped 4% after the utility company said it is planning to exit from its Russian operations. 

In Zurich, Credit Suisse, UBS, and Holcim Group gained between 2% and 3%. Holcim is looking to sell its India operations that may fetch between $7 billion and $9 billion. 

Bridgepoint Group PLC jumped 7.7% after the annual meeting of shareholders and the company finalized its dividend. 

Drax Group and Vodafone Group fell on broker downgrades.   

Asian markets advanced after bargain hunters looked for companies in the tech, energy, and utility sectors. 

The Nikkei index increased 2.6% to 26,427.14, the Hang Seng Index gained 2.7% to 19,89.02, and the Shanghai Composite index advanced 1% to 3,084.03. 

Chinese authorities denied that Beijing is likely to be placed in a Shanghai-style lockdown. 

Separately Shanghai local authorities confirmed that the city is expected to reach to zero-Covid at several communities levels next week. 

Stocks in Mumbai edged lower for the sixth day in a row on the worries that the elevated energy prices will slow down the economy and lift rates higher. 

Movers: Affirm, Duolingo, Mister Car Wash, Poshmark, Robinhood, Twitter, Toast

Barry Adams
13 May, 2022
New York City

Affirm Holdings Inc jumped 20% to $21.56 after the company reported smaller-than-expected loss and lifted full-year revenue outlook. 

The payment network company also extended its partnership with the e-commerce platform Shopify. 

March quarter revenues rose 54% to $354.8 million and net loss shrank 81% to $54.7 million. 

The company lifted full-year revenue outlook to between $1.33 billion and $1.34 billion and fourth quarter revenues between $345 million and $355 million. 

Duolingo Inc soared 33.3% to $89.29 after the language software company reported total revenues increased 47% to $81.2 million and net loss shrank to $12.2 million from $13.6 million a year ago. 

The quarterly loss was mostly driven by stock-based compensation expenses. 

Paid subscribers increased 60% to 2.9 million from a year ago and the company guided full-year adjusted earnings between breakeven and $3 million. 

The Honest Company gained 14% to $3.34 after the apparel company reported March quarter revenues declined 15% to $68.7 million and net loss surged four-fold to $14.6 million from a year ago. 

The company also reaffirmed its full-year revenue outlook to be flat compared to 2021. 

Mister Car Wash Inc declined 5.2% to $11.44 after the company reported March quarter revenues rose 25% to $219.4 million and net income jumped nearly 40% to $35.5 million or 11 cents a share. 

The operator of 399 car wash locations estimated full-year 2022 revenues between $875 million and $895 million and net income between $139 million and $149 million. 

The company plans to open 30 new locations in the year. 

Poshmark Inc jumped 25% to $12.18 after the online apparel marketplace operator reported first quarter revenues increased 13% to $91 million and a net loss shrank about 82% to $14 million or 18 cents a share. 

The company also offered a weaker-than-expected revenues outlook for the current quarter between $86 million and $88 million. 

Robinhood Markets, Inc jumped 25.2% to $10.74 after Sam Bankman-Fried, the CEO of crypto-exchange FTX, noted in a regulatory statement acquiring 7.6% stake in the company for about $648 million.   

Twitter Inc plunged 7% to $41.88 after Tesla CEO Elon Musk said the takeover deal is "temporarily" on hold and requested more data on the number of fake and spam accounts. 

Tesla Inc surged 5.6% to $768.47 after the Twitter deal news. 

Toast Inc jumped 11.5% to $15.90 after the technology platform for restaurants reported March quarter revenues jumped 90% $535 million and net loss shrank to $23 million from $99 million a year ago. 

The company also lifted its full-year revenue outlook to a range between $2.5 billion and $2.55 billion from the previous estimate between $2.349 to $2.409 billion.