Market Update
U.S. Indexes Under Pressure Again As Tech Selloff Goes Global
Barry Adams
12 May, 2022
New York City
U.S. stocks extended losses and the benchmark index S&P 500 inched closer to bear market territory.
The S&P 500 index declined 1.2% to 3,886.34 and the Nasdaq Composite index fell 1.7% to 11,183.07.
For the year so far, the S&P 500 index has fallen 18.9% and the Nasdaq Composite index has dropped 29.4%.
Global markets are also on the downside as indexes in Europe ease more than 2% and in Asia declined between 1.8% and 2.2%.
Tech stocks around the world are falling following losses in the tech heavy weights in the U.S.
In today, trading Apple dropped 3.6% to $141.29, Google parent Alphabet declined 0.9% to 2,258.60, Microsoft fell 1.7% to $256.04.
Amazon traded near flat-line at 2,099.34 and has now lost all the gains during the Pandemic boom since March 2020.
The latest data on the wholesale price index failed to calm market jitters.
The producer price index rose 0.5% in April from March or 11% from a year ago, the Bureau of Labor Statistics reported today.
The index had gained at annual rate of 11.5% in March.
Core rate of wholesale inflation excluding food, energy and services rose 0.6% in April and jumped 6.9% from a year ago but slower than 7.1% annual rate in March.
A separate economic report from the agency noted jobless claims increased 1,000 to 203,000 in the week ending on May 7.
However, the continuing claims declined 44,000 to 1.343 million, the lowest level since Jan 3, 1970.
In Europe, indexes fell more than 2% on the rising inflation worries.
The DAX index fell 2.3% to 13,503.21, the CAC-40 declined 2.5% to 6,111.47, and the FTSE 100 index decreased 2.1% to 7,191.35.
Siemens declined 7% after the company said it will leave Russia.
U.K. GDP growth declined to 0.8% after expanding at 1.3% in the previous quarter on a sequential basis, the Office of National Statistics said.
The economic activities shrank 0.1% in March but overall the economy is larger by 1.2% from its pre-COVID February 2020 level.
In Asian trading indexes generally closed lower after the release of the U.S. inflation data.
The Nikkei index declined 1.8% to 25,748.22 and the Hang Seng Index dropped 2.2% to 19,380.34.
Tech stocks led the losers in Tokyo and Hong Kong following the losses in the U.S.
SoftBank Group declined 4% and KDDI, Tokyo Electron, and Advantest fell between 2% and 4%.
Stocks in Mumbai traded sharply lower following weak markets in Asia and the resurgent inflation.
The Sensex index closed down 2.1% to 52,930.21 and the Nifty index fell 2.2% or 359.10 to 15,808.00.
India's consumer inflation index is at a 8-year high but below 8.33% in May 2014 and the Industrial Production Index increased 1.9% in March, the report also noted.
The Kospi index in Seoul dropped 1.6% and extended losses for the eighth day in a row. The index is now trading near an 18-month low on the weakness in tech stocks.
Samsung Electronics, SK Hynix and Hyundai declined more than 1%.
The Australian market index dropped to a five-month low on the weakness in tech and bank stocks.
The ASX 200 fell 1.8% to close at 6,941.
Duke Realty Says $24 Billion Insufficient to Prologis
Bridgette Randall
11 May, 2022
New York City
Duke Realty rejected the latest revised offer from Prologis for $24 billion.
Prologis offered to exchange one Duke Realty share for 0.466 of its share. The latest all-cash offer is higher than 0.465 offered on November 9, 2021.
Duke responded to the public offer and said that the current offer "is insufficient."
Prologis is a leader in managing warehouses and logistics properties and Duke is known for its industrial and medical properties.
Duke Realty stock jumped 7.8% to $53.46 and Prologis stock fell 1.3% to $123.74.
In the last 52-weeks of trading, Prologis has gained 10% and Duke Realty has advanced 20%.
Swedish Match Accepts $16 Billion Philip Morris' Offer
Brian Turner
11 May, 2022
New York City
Swedish Match AB agreed to be acquired by Philips Morris International for $16 billion.
Philip Morris Holland offered SEK 161.2 billion of US$16 billion representing a 39% premium to the last closing price on May 9.
The offer is 39.7% higher than the last 30-day volume weighted trading price of SEK 75.86 and 46.6% higher than the last 90-day volume weighted trading price of SEK 72.33.
The acceptance period for the public offer is expected to commence on or around June 23, 2022 and expire on or around September 30, 2022.
The offer is conditional that at least 90% of Swedish Match AB shareholders accept the offer.
Philip Morris has targeted to be a smoke-free company and generate more than half of its net revenues from such products.
Stocks Sink Near Bear Territory As Elevated Inflation Anchors
Barry Adams
11 May, 2022
New York City
U.S. stocks struggled after April inflation edged lower but stayed near the 40-year peak in March.
The S&P 500 index fell 1.6% to 3,935.25 and the Nasdaq Composite index declined 3.2% to 11,364.24.
Crude oil jumped 5% to $105.32 a barrel and the yield on 10-year U.S. Treasury note declined to 2.91% after briefly trading above 3%.
The consumer price index in April increased at a slower annual pace of 8.3% after rising at 8.5% in March, the Labor Department noted in a release today.
Core rate of inflation which excludes food and energy increased 6.2% in the 12-month period after rising at 6.5% in the period in March.
On a month-to-month basis, headline inflation in April increased 0.3% and core rate rose 0.6%.
The energy index rose 30.3% in the 12-month to April driven by 43.6% in the gasoline index and 80.5% in fuel oil index.
The index for electricity rose 11.0%, and the index for natural gas increased 22.7% over the last 12 months.
The elevated inflation for the second month stoked the debate that the U.S. inflation is broad-based, durable, and may take time and pain to tame.
Investors also worried that the elevated inflation may force the Fed to raise rates higher and faster.
Federal government's April receipts exceeded outlays and generated a surplus of $308 billion compared to the $192 billion in deficit in March.
In the fiscal year 2022 between October and April, the federal government's deficit was $360 billion, according to the Monthly Treasury Statement released by the U.S. Treasury.
In trading, investors shied away from tech stocks and Tesla declined 7%, Apple fell 5%, and Microsoft and Meta Platforms dropped 4%.
In merger news, Duke Realty rejected an unsolicited $24 billion takeover offer from Prologis and cited that the offer undervalues the company. Prologis has been pursuing the merger for several months.
Philip Morris International agreed to takeover Swedish Match AB for $16 billion.
European markets surged after the release of latest inflation data and China reported a decline in virus cases.
The DAX index jumped 2.2% to 13,828.11, the CAC-40 index gained 2.1% to 6,269.73 and the FTSE 100 index added 1.4% to 7,347.66.
German inflation in April rose to 7.4% after rising at 7.3% in March from a year ago, Destatis reported earlier in the day.
April Inflation was record high since German reunification in 1990.
Thyssenkrupp surged 11% after the steelmaker lifted sales and operating income outlook for the full-year.
Bayer AG dropped 6% after the U.S. President Biden's administration asked the Supreme Court to not hear the company's appeal to claims that its Roundup weedkiller causes cancer.
TUI AG jumped 4% after the company estimated return to profitability in the current year and Alstom SA declined 6% despite reporting better-than-expected annual profit.
In Asian markets, the Seoul index declined for the seventh day in a row on the worries that the rising supply chain costs and global inflation will severely cut profit margins of industrial corporations.
The Nikkei index in Japan declined 0.2% and Toyota Motor declined 4% after the automaker said rising logistics and raw material costs may trim full-year profit by 20%.
Hong Kong index gained 1% and Shanghai index edged up 0.8% after the release of mixed inflation data and hopes that Beijing will offer more stimulus and virus cases also declined.
Investors also reviewed the inflation data from China.
Consumer prices rose 2.1% in April after rising 1.5% in March from a year ago, the National Bureau of Statistics reported.
Factory prices or producer price index rose at a slower pace of 8% after rising at 8.3%. The producer prices are expected to slow down in the coming months reflecting weak demand.
Stocks in India lacked direction for the third week in a row and two leading indexes closed down. Initial public offerings picked up on the back of steady demand from retail investors.
The Sensex index closed down 0.5% to 54,088.39 and the Nifty index declined 0.45% to 16,167.10.
Topgolf Venue Drives Callaway Sales Higher
Scott Peters
11 May, 2022
New York City
Callaway Golf Company reported first quarter 2022 revenues increased 59.6% to $1.04 billion and net income declined 71% to $88 million.
Diluted earnings per share in the quarter declined to 44 cents from $2.19.
Net revenues increased $388.6 million, driven by a $229.4 million increase in the Topgolf business which was included for three months in 2022 compared to one month in 2021 due to the timing of the merger.
Golf Equipment sales increased $91.1 million and apparel and gear sales increased $68.1 million.
Changes in foreign currency rates had a $21.2 million negative impact on the quarterly revenues.
GAAP-based net income decreased due the $252.5 million in gains resulting from the Topgolf acquisition in March 2021 partially offset by favorable $65.4 million tax allowance on a comparable basis.
Adjusting for the acquisition related gains and tax valuation allowance and other items, the quarterly earnings declined to $70.9 million from $76.6 million a year ago.
The first quarter 2021 results do not include $27.8 million of pre-tax loss from Topgolf for January and February, which occurred prior to the closing of the merger.
Guidance and Outlook
The company lifted annual revenue outlook to between $3.935 billion and $3.970 billion and adjusted operating earnings between $535 million and $555 million.
Company and Stock
Callaway Golf Company is headquartered in Carlsbad, California and employs about 4,200 people.
Callaway stock jumped 13% to $20.30 after the release of earnings and for the year the stock is down 27%.
Electronic Arts Earnings Ahead of Expectations
Scott Peters
11 May, 2022
New York City
Electronic Arts Inc reported fiscal year 2022 fourth quarter ending in March sales increased 38% to $1.8 billion and net income soared three-fold to $225 million.
Diluted earnings per share increased to 80 cents from 26 cents a year ago.
The company repurchased 2.5 million shares for $325 million in the quarter matching the dollar amount for the purchase of 2.4 million shares.
For the year, the company purchased 9.5 million shares for $1.3 billion.
The company increased dividend per share by 12% to 19 cents from a year ago and payable on June 22, 2022 to shareholders of record as of the close of business on June 8, 2022.
Guidance and Outlook
The company also guided fiscal year 2023 between $7.6 billion and $7.8 billion and earnings per share between $2.79 and $2.87 and net income between $793 million and $815 million in the year.
The game publisher guided operating cash flow in the year between $1.6 billion and $1.65 billion.
The company expects sales or net bookings between $7.9 billion and $8.1 billion.
In the fiscal year 2023 first quarter sales are expected to be between $1.675 billion and $1.725 billion, earnings between $216 million and $240 million, and diluted earnings per share between 76 cents and 85 cents.
Company and Stock
Electronic Arts is headquartered in Redwood City, California and employs about 10,000 people.
Electronic Arts stock jumped 12.3% to $125.38 after the game publisher reported March quarter results and the stock has declined 9% in the year so far.
Movers: Callaway Golf, Coinbase Global, Electronic Arts, Philip Morris Int, Roblox, Unity Software
Barry Adams
11 May, 2022
New York City
Callaway Golf Company increased 14.5% to $20.53 after the company reported first quarter revenues increased 59% to $1.04 billion and net income declined 71% to $88 million.
The company lifted annual revenue outlook to between $3.935 billion and $3.970 billion and adjusted operating earnings between $535 million and $555 million.
Coinbase Global, Inc declined 22% to $56.83 after the company reported revenues declined 27% to $1.2 billion and net loss of $430 million compared to income of $771 million.
Crypto currency trading volume on the platform declined 11% to $309 billion.
MicroStrategy Inc dropped 12% to $198.20 following the weakness in Coinbase.
Cvent Holding Corp jumped 11% to $4.98 after the company reported sales ahead of its guidance and revised annual sales guidance marginally.
Electronic Arts, Inc jumped 12.3% to $125.38 after the game publisher reported March quarter sales increased 38% to $1.8 billion and net income soared three-fold to $225 million.
Diluted earnings per share increased to 80 cents from 26 cents a year ago.
The company also guided fiscal year 2023 between $7.6 billion and $7.8 billion and earnings per share between $2.79 and $2.87.
Philip Morris Inc increased 3.9% to $102.78 after the company agreed to acquire Swedish Match AB for $16 billion.
Swedish Match AB also jumped 10% in New York and in Stockholm trading.
Sweetgreen Inc declined 10.5% to $18.34 after a day ago the company reported a wider loss and reaffirmed its annual sales outlook.
The stock extended 2-day losses to 20%.
Switch Inc increased 9.7% to $33.73 after the network infrastructure company reported fourth quarter revenues increased 26% to $161.4 million and swung to a net loss of $18.5 million from $15.3 million profit.
The company also said full-year 2022 revenues are expected to increase 13% at mid-point for the range between $660 million and $674 million.
Roblox Corp gained 5.4% to $24.45 after the online gaming platform reported first quarter revenues increased 39% to $537 million and average daily users increased 28% to 54.1 million.
Quarterly net loss declined to 27 cents compared to 46 cents a year ago.
Upstart Holdings, Inc declined 13.3% to $29.15 after the platform based lender reported a day ago weak outlook for the year. The stock fell for the second day and extended 5-day losses to 68%.
Unity Software Inc plunged 37.3% to $30.19 after the video game software developer reported first quarter revenues increased 36% to $320 million but net loss jumped 80% to $180 million.
The software developer also guided lower-than-expected second quarter revenues between $290 million and $295 million, an increase between 6% and 8% from a year ago.
April Inflation Stays Near 40-Year High
Brian Turner
11 May, 2022
New York City
The urban consumer price index increased 0.3% in April after adjusting for seasonal factors, the Bureau of Labor Statistics noted today.
The index increased 8.3% in the last 12 months before adjusted for seasonal factors.
The index increased 8.5% in the 12-months to March.
The increases in food, shelter, air travel, and new vehicles contributed the most to the monthly inflation.
On a monthly basis, food prices increased 0.9%, energy prices declined 2.7%, new vehicle prices increased 1.1%, and home shelter prices increased 0.5%.
Home prices across the nation have risen between 30% and 100% in a year and yet the index reflects the rise in cost of shelter 5% on an annual basis.
Rents in most urban markets have jumped between 20% and 100% but are still understated in the index.
Used car price increase in the 12-month to April slowed to 22.7% after rising at 35.3% in March and new vehicle price increase rose to 13.2% after rising at 12.5% in the period.
U.S. Stocks Advanced After 8.3% Inflation Rate, European Stocks Rally
Barry Adams
11 May, 2022
New York City
U.S. stocks climbed higher after April inflation rate edged slightly lower from March but stayed near the 4-decade high..
The S&P 500 index increased 0.7% to 4,027.15 and the Nasdaq Composite gained 0.2% to 11,766.09.
The futures earlier had advanced more than 1% but turned briefly negative after the release of the inflation data.
Consumer prices in April rose 0.3% or 8.3% annualized rate compared to March increase of 1.2% or 8.5% annualized rate.
Core rate of inflation which excludes energy and food prices increased 0.6% in April after rinsing at 0.3% in March.
Shelter, food, airline fares, gasoline, and new vehicles were the largest contributors to inflation in the month.
Investors will also review the weekly petroleum inventories report at 10:30 a.m. ET, Treasury auction at 1:00 p.m. ET and Treasury statement at 2:00 p.m. ET.
Last week, crude oil inventories rose 1.3 million barrels but gasoline inventories declined 2.2 million barrels.
The U.S. government deficit is expected to reach $200 billion in April after reaching $192.7 million in March.
European markets surged after the release of latest inflation data and China reported a decline in virus cases.
The DAX index jumped 1.5% to 13,730.13, the CAC-40 index jumped 2.1% to 6,244.49 and the FTSE 100 index gained 1% to 7,314.30.
German inflation in April rose to 7.4% after rising at 7.3% in March from a year ago, Destatis reported earlier in the day.
April Inflation was record high since German reunification in 1990.
Thyssenkrupp surged 11% after the steelmaker lifted sales and operating income outlook for the full-year.
Bayer AG dropped 6% after the U.S. President Biden's administration asked the Supreme Court to not hear the company's appeal to claims that its Roundup weedkiller causes cancer.
TUI AG jumped 4% after the company estimated return to profitability in the current year and Alstom SA declined 6% despite reporting better-than-expected annual profit.
In Asian markets, the Seoul index declined for the seventh day in a row on the worries that the rising supply chain costs and global inflation will severely cut profit margins of industrial corporations.
The Nikkei index in Japan declined 0.2% and Toyota Motor declined 4% after the automaker said rising logistics and raw material costs may trim full-year profit by 20%.
Hong Kong index gained 1% and Shanghai index edged up 0.8% after the release of mixed inflation data and hopes that Beijing will offer more stimulus and virus cases also declined.
Investors also reviewed the inflation data from China.
Consumer prices rose 2.1% in April after rising 1.5% in March from a year ago, the National Bureau of Statistics reported.
Factory prices or producer price index rose at a slower pace of 8% after rising at 8.3%. The producer prices are expected to slow down in the coming months reflecting weak demand.
Stocks in India lacked direction for the third week in a row and two leading indexes closed down. Initial public offerings picked up on the back of steady demand from retail investors.
The Sensex index closed down 0.5% to 54,088.39 and the Nifty index declined 0.45% to 16,167.10.
Delhivery's 5,235 crore rupees ($730 million) public offering was subscribed 20% on the first day of offer period.
Venus Pipes & Tubes' 160 crore rupee ($20 million) offering was subscribed two times on the first day of offering.
Prudent Corporate Advisory Services' offering received 52% interest on the first day of offering.
Volatile Stocks Rebound Ahead of Inflation Reports
Barry Adams
10 May, 2022
New York City
U.S. stock indexes closed higher in a lackluster trading ahead of inflation data.
The consumer price index is expected to ease in the latest tomorrow and wholesale prices are expected to be stable at elevated levels on Thursday.
The S&P 500 index increased 0.25% to 4,001,59 and the Nasdaq Composite index gained 1% to 11,737.67.
The indexes opened higher as bargain hunters returned seeking value in beaten down tech stocks but the sentiment faltered after one hour of trading.
Market averages steadily declined for the next two hours and reached their lows at 12:30 p.m. on the worries that the inflation data may be worse than anticipated.
Market sentiment reversed, lifting Indexes higher as the leading tech stocks sustained the advance. However, market jitters returned in the final thirty minutes of trading and traders stayed away from adding more positions ahead of economic reports tomorrow.
Microsoft Corp gained 2.2% to $270, Meta Platforms gained 1.3% to $198.20, Apple added 1.5% to $154.89, and Alphabet gained 2% to $2,296.
Amazon, Shopify, Zoom, Etsy, Wayfair, and other pandemic era darlings have nearly erased the gains of the last two years.
In Europe, market indexes gained after buyers returned to add more stocks.
The DAX index in Frankfurt gained 1.1%, the CAC-40 in Paris added 0.4%, and the FTSE 100 index advanced 0.4%.
The indexes in Sweden, Portugal, Denmark, and Sweden advanced today.
For the year so far, the DAX is down 16%, the CAC 40 has fallen 15%, and the SMI index in Zurich has declined 11%.
EssilorLuxottica dropped 5% to 144.10 euros on the worries that China lockdowns extension may impact sales of sunglasses.
Airbus SE gained 0.9% after the aerospace company reported 98 new orders for aircrafts and delivered 48 in April.
Swedish Mach AB soared 26% after the tobacco products maker confirmed that it has been approached by Philip Morris with a takeover offer.
The Nikkei index in Tokyo edged down 0.6% and trimmed the day's loss after March household spending rose more than expected.
Spending increased 4.1% from the previous month but declined 2.6% from a year ago to 307,261 yen, the Ministry of Internal Affairs and Communications said today.
The average monthly household income in March rose 2.3% to 503,128 yen from a year ago.
NTT Data Corp fell as much as 7% after the company announced restructuring.
Japan Steel Works plunged 16% to 2,554 yen after the company reported that one of its units falsified product data for more than two decades.
The Hang Seng index in Hong Kong declined 1.9% but the index in Shanghai jumped 1% after the Chinese government announced rent relief to small businesses struggling from a coronavirus outbreak.
The two leading indexes in Mumbai ended lower after another day of choppy trading.
The Sensex fell 0.2% or 105.82 to 54,346.85 and the Nifty index declined 0.4% or 61.80 to 16,240.05.
Cvent Beats Revenues Estimate, Loss Expands
Scott Peters
10 May, 2022
New York City
Cvent Holding Corp reported first quarter 2022 ending in March revenues increased 17% to $137.4 million and net loss in the quarter increased to $31.4 million from $16.6 million a year ago.
Diluted loss per share increased to 7 cents from 4 cents a year ago.
Revenues from event organizers increased 17.1% to $95 million and from venue and hotel operators increased 17.2% to $42.2 million.
Total revenues in the quarter were $3.9 million ahead of its own estimate range between $133.0 and $133.5 million.
Net dollar retention rate increased to 109%, ahead of 108% in 2019 before the pandemic.
The number of clients spending more than $100,000 on an annual basis increased to 840 from 802 in 2021, 666 in 2020, and 722 in 2019.
Adjusted free cash flow in the quarter increased to $44.7 million from $40.8 million a year ago.
Guidance and Outlook
Cvent guided second quarter revenues between $1153.2 million and $154.2 million and adjusted operating earnings between $15.1 million and $16.1 million, a 10.1% of revenues at the mid-range.
For the full-year 2022 revenues are expected to fall between $621.4 million $626.9 million, an increase of $1.5 million at the mid-point to the previous guidance.
For the full year, adjusted operating earnings are expected to fall between $102.5 million and $107.8 million, an increase of 0.2 million from the previous estimate.
The company also reaffirmed its previous operating margin guidance.
Company and Stock
Cvent Holding is headquartered in Tysons Corner, Virginia and employs about 4,300 people.
Cvent stock declined more than 10% to $4.33 and has fallen 38% in the year so far.
Peloton Arranges $750 Million Term Loan After Losses Soar
Scott Peters
10 May, 2022
New York City
Peloton Interactive, Inc reported March quarter revenues declined 24% to $964.3 million and net loss soared eight-fold to $757.1 million.
Diluted loss per share increased to $2.27 from 3 cents a year ago.
The company is struggling with a surge in inventories as more workers return to office ending the pandemic era boom in orders.
The equipment sales declined 42% to $594.4 million but subscription revenues increased 55% to $370 million.
Gross profit fell 59% to $184.2 million after the company wrote down inventories, faced higher supply chain costs and lowered retail sale price.
Subscription revenues in the quarter are 38.4% of total sales compared to 19% a year ago and the company is accelerating its business mix repositioning to higher margin business.
Membership subscribers jumped 29% to 7.0 million and subscription revenues increased 42% to $3 million.
New subscriber growth in the quarter declined 53% to 0.195 million from 0.42 million a year ago.
Average monthly churn rate increased in the quarter to 0.75% from 0.3% a year ago.
However, the company benefited from a growing acceptance of its digital app.
Digital app subscriptions increased 10% or 114,000 to 976,000 at the end of the quarter from a year ago.
The company ended the quarter with $879.3 million in cash and cash equivalents and also has a $500 million revolving credit facility, which remains undrawn to date.
Guidance and Outlook
The company estimated fourth quarter revenues between $675 million and $700 million.
Gross margin estimated to increase to 31% from 27% in the fourth quarter a year ago.
Adjusted operating loss to fall between $115 million and $120 million compared to a loss of $45 million a year ago.
The company estimated subscriber base in the fourth quarter to increase to 2.98 million compared to 2.3 million a year ago, an increase of 28% from a year ago and 1% increase from the third quarter.
Company and Stock
Peloton is headquartered in New York City, New York and employs about 6,700 people.
Peloton stock declined as much as 18% to $11.30 and has fallen 63% in the year so far.
Movers: Appian, Cvent, Edgewell, Norwegian Cruise, Peloton, Trex, upstart
Barry Adams
10 May, 2022
New York City
Appian Corp soared 28% to $55.17 after the cloud computing company won an order from a Virginia jury to award $2.04 billion in damages from Pegasystems Inc for violating trade secrets.
Pegasystems plunged 33.6% to $43.62.
Aramark increased 0.8% to $34.51 and the food service company said March quarter sales rose 37% to $3.9 billion and swung to income of $36 million from a loss of $78 million.
The company said consolidated revenues are now at 97% and organic revenues are at 95% of pre-Covid levels.
Cvent Holding Corp dropped 19.6% to $4.31 after the event solution provider reported revenues increased 17.4% to $137.4 million and net loss increased to $31.4 million from $16.6 million a year ago.
The company guided second quarter revenues between $153.2 million and $154.2 million and lifted the full-year 2022 revenue range between $621.4 million and $626.9 million from the previous estimate between $619.6 million and $625.6 million.
Edgewell Personal Care Co plunged 17.4% to $32.62 after the company said March quarter sales rose 5% to $547.7 million and diluted earnings per share increased to 43 cents from 26 cents a year ago.
The results fell short of expectations and the company also lowered its full fiscal year 2022 earnings per share outlook to between $1.93 and $2.21 from the previous range between $2.23 and $2.51.
Norwegian Cruise Line Holdings increased 4.8% to $16.70 after the cruise operator said operating capacity increased to 85% and occupancy was 48% primarily linked to Omicron virus related challenges.
The cruise liner added net booking volumes and occupancy levels have increased sequentially every month and March cash flow turned slightly positive and expects the flow to be positive in the second quarter.
Peloton Interactive Inc dropped 15.7% to $11.77 after the fitness equipment maker reported March quarter revenues declined 24% to $964 million and net loss soared nearly hundred-fold to $757 million.
The company also said its cost reduction initiatives are set to achieve at least $165 million in the second-half of fiscal year 2022 and 450 million in fiscal year 2023.
Trex Company Inc increased 5.7% to %58.76 after the company reported first quarter net sales increased 38% to $339 million and net income increased 47% to $71 million or 62 cents a share.
For the second quarter, the company guided revenues between $375 million and $385 million or 22% increase at the midpoint.
Upstart Holdings Inc plunged 61% to $29.52 after the loan transaction platform provider reported March sales soared 156% to $310 million and net income more than tripled to $32.7 million.
The company lowered its annual outlook and said that the current economic environment is likely to negatively impact the business.
The company guided full-year 2022 revenues of $1.25 billion from the previous estimate of $1.4 billion
For the second quarter the company also guided revenues between $295 million and $305 million, lower than most analysts estimating above $300 million.
Vroom Inc jumped 45% to $1.58 after the used-car seller reported total revenues rose 56% to $923 million and net loss jumped on $210 million goodwill impairment charge.
The company sold on its online platform about 19,000 vehicles and guided full-year 2022 vehicle sales between 45,000 and 55,00 and liquidity between $450 million and $565 million.
U.S. Stocks Attempt Rebound, European Indexes Trade Higher
Barry Adams
10 May, 2022
New York City
Futures of the S&P 500 index increased 0.6% to 4,009.10 and the Nasdaq Composite added 0.9% to 12,309.55.
Stocks are attempting a rebound after six weeks of selloff that has dragged the Nasdaq deep in the bear zone and the S&P 500 index down 14% in the year so far.
Inflation jitters were in full display in Monday's trading but the benchmark 10-year Treasury note yield eased after three weeks of rising.
In early trading today, the yield is down to 3.017%.
Crude oil futures eased in New York and London trading with Texas oil trading down 60 cents to $102.78 and the Brent crude down 80 cents to $105.11 a barrel.
Earnings were also in focus after the popular fitness equipment maker Peloton plunged more than 25% after the company reported larger-than-expected quarterly loss and the company tapped bank credit lines.
Vroom soared 35% in the pre-market trading after the used-car seller announced a restructuring plan. Quarterly loss soared more than four-fold to $310 million and sold 31,285 units, an increase of 21% from a year ago.
European indexes jumped as investors searched for bargains.
The DAX index in Frankfurt added 1.3%, the CAC 40 index in Paris gained 0.8% and the FTSE 100 index in London advanced 0.6%.
German bund held near 8-year high and investors worried if the rates have advanced too fast on the expectations of rate hike from the European Central Bank.
The benchmark yield has jumped to 1.03% from the low of 0.5% in mid-August.
Fraport Group declined 4% after the airport operator reported larger-than-expected loss.
Renault said it has agreed to sell more than one-third stake in its unit in Korea to China-based Geely Automotive for $200 million.
Bayer, the fertilizer and pharmaceutical company gained after reporting better-than-expected first quarter results.
Swedish Mach AB soared 26% after the tobacco products maker confirmed that it has been approached by Philip Morris with a takeover offer.
The Nikkei index in Tokyo edged down 0.6% and trimmed the day's loss after the latest household spending showed some promise.
NTT Data Corp fell as much as 7% after the company announced restructuring.
Japan Steel Works plunged 16% to 2,554 yen after the company reported that one of its units falsified product data for more than two decades.
The Hang Seng index in Hong Kong declined 1.9% but the index in Shanghai jumped 1% after the Chinese government announced rent relief to small businesses struggling from a coronavirus outbreak.
The two leading indexes in Mumbai ended lower after another day of choppy trading.
The Sensex fell 0.2% or 105.82 to 54,346.85 and the Nifty index declined 0.4% or 61.80 to 16,240.05.
Broad Selloff Drags Indexes to New Lows In the Year
Barry Adams
09 May, 2022
New York City
U.S. major indexes fell to new lows in the year as jittery investors stayed away from tech stocks.
All sectors participated in today's losses led by larger declines in tech stocks.
The S&P 500 dropped 3.2% to 3,991.28 and the Nasdaq Composite index declined 4.3% to11,623.25 .
Texas crude oil fell 6.5% or $7.13 to $102.64 a barrel and Brent oil fell 6% to $105.34. Natural gas plunged 12% to $7.03 per unit.
The yield on 10-year U.S. Treasury bonds eased to 3.03%.
Market indexes opened sharply lower and stayed lower near the lows except making one brief attempt to cut losses at mid-day. However, indexes lacking support quickly began the descent.
The S&P 500 index fell below 4,000 for the first-time in more than a year.
For the year, the Nasdaq index is down 27% and the S&P 500 index is down 16.8%.
Investors are awaiting the consumer price data on Wednesday and wholesale price data on Thursday.
Nervous investors are worried that the Fed is likely to lag the fast rising inflation and the elevated prices will seep in the economy through a permanent increase in wages.
Tech stocks took the brunt of selling and Apple fell 3.5%, Microsoft declined 4%, Tesla plunged 9.9%, Amazon declined 4%, Meta Platforms decreased 3.7%, and Google parent Alphabet dropped 3%.
Banks also fell on the worries that the rising interest rates may dampen economic activities.
JPMorgan and Wells Fargo dropped 2%, Citigroup, Regions Financial, and Bank of America declined 3%.
Transportation stocks also plunged. American Airlines declined nearly 8%, Delta Air plunged 7% and Union Pacific and Norfolk Southern declined more than 2%.
Energy sector also witnessed broad losses. Exxon Mobil Corp and Chevron Corp dropped more than 7%. Schlumberger plunged 11%.
Bitcoin, the crypto currency continued its slide after reaching as high as $40,000 last month and $69,000 in June 2021.
The crypto currency has fallen 15% in the previous week and declined further 5% today to $32,000 and has plunged more than 50% from its peak $69,000 in July 2021.