Market Update
Morgan Stanley Lifted Dividend, Launched New Stock Buyback Plan
Scott Peters
14 Jul, 2022
New York City
Morgan Stanley dropped 0.9% to $74.26 after the financial services company reported net revenues in the second quarter ending in June fell 11% to $13.1 billion compared to $14.8 billion a year ago.
Net income fell 29% to $2.5 billion or $1.39 per diluted share compared to net income of $3.5 billion or $1.85 per diluted share for the same period a year ago.
Uncertain macroeconomic environment and volatile markets impacted institutional securities revenues.
Segment revenues declined 14% to $6.1 billion from $7.1 billion.
Wealth management segment revenues declined to $5.7 billion from $6.1 billion, negatively impacted by mark-to-market losses on investments associated with certain employee deferred compensation plans.
The business added net new assets of $53 billion in the quarter and $195 billion in the first half of 2022.
Morgan Stanley repurchased $2.7 billion of its own stock and completed its previously announced $12 billion share repurchase program.
The company announced a new $20 billion stock repurchase program and also lifted its quarterly dividend 11% to 77.5 cents payable on August 15, 2022 to common shareholders of record on July 29, 2022.
JPMorgan Net Falls 28%
Scott Peters
14 Jul, 2022
New York City
JPMorgan Chase declined 3.8% to $107.67 after the bank said second quarter revenues increased 1% to $30.7 billion.
Net income in the quarter fell 28% to $8.64 billion from $11.95 billion and diluted earnings per share fell to $2.76 from $3.78.
Return on equity fell to 13% from 18% and return on tangible equity dropped to 17% from 23% a year ago.
U.S. Retail Sales Advanced 1% In June
Brian Turner
15 Jul, 2022
New York City
U.S. stocks advance after retail sales increased more than estimated indicating resilient consumer spending in the face of 4-decade higher inflation.
Retail sales in June rose 1% from the revised 0.1% decline in May, the Commerce Department reported today.
Sales rose 8.4% from a year ago and in the three month period to June surged 8.1% from the same period a year ago.
Monthly sales in May were revised to 0.1% from the 0.3% fall in the previous estimate.
Retail sales are not adjusted for inflation which rose 1.3% from May indicating real retail sales fell.
Stocks advanced sharply after the release of strong retail sales data indicating consumers are resilient despite 4-decade high inflation.
Gasoline sales rose 3.6%, sales at bars and restaurants jumped 1%, furniture and home store sales jumped 1.4%, and online sales jumped 2.2%.
The July 2022 Advance Monthly Retail report is scheduled for release on August 17, 2022 at 8:30 a.m. EDT.
European Bond Yields Rise After Italy Plunges In Political Turmoil
Bridgette Randall
15 Jul, 2022
Frankfurt
European markets advanced and bond yields were in focus after Italy's prime minister resigned.
Prime Minister Mario Draghi offered his resignation after the coalition partner 5-Star Movement refused to back the government in a no confidence vote on a disagreement with a plan in combating rising consumer prices.
President Sergio Mattarella rejected Draghi's resignation and asked him to address the parliament next week.
Bond market was on alert after Draghi's resignation, and yield on 10-year Italian bonds rose to 3.134%, a one month high and spread with the German bond of similar maturity widened to 2.2% for the second day in a row.
Bond yields in the region edged slightly lower today but remained elevated on the Italian and British uncertainties.
The yield on the 10-year bond of Germany traded at 1.16%, France at 1.77% and the U.K. at 2.098%.
Conservative Party in the U.K. narrowed the list to 6 from 12 contenders to lead the party after parliamentary members of the party revolted against Prime Minister Boris Johnson forcing his unscheduled departure last week.
The DAX index gained 1.76% to 12,754.25, the CAC-40 index increased 0.76% to 5,962.87, and the FTSE 100 index added 1.2% to 7,123.81.
The euro flirted near the U.S. dollar parity and closed at $1.002.
U.S. Stocks Gain After Retail Sales Rose 1% In June
Barry Adams
15 Jul, 2022
New York City
U.S. stocks advance after retail sales increased more than estimated indicating resilient consumer spending in the face of 4-decade higher inflation.
Market indexes popped at the opening after Citibank and Wells Fargo reported better than expected earnings.
Earnings at both banks fell from a year ago but met investors' expectations and the banks benefited from the rising rate environment.
Retail sales in June rose 1% from the revised 0.1% decline in May, the Commerce Department reported today.
Sales rose 8.4% from a year ago and in the three month period to June surged 8.1% from the same period a year ago.
Retail sales are not adjusted for inflation which rose 1.3% from May indicating real retail sales fell.
Stocks advanced sharply after the release of strong retail sales data indicating consumers are resilient despite 4-decade high inflation.
Gasoline sales rose 3.6%, sales at bars and restaurants jumped 1%, furniture and home store sales jumped 1.4%, and online sales jumped 2.2%.
The S&P 500 index jumped 1.07% to 3,830.46 and the Nasdaq Composite index edged up 1.1% to 11,375.19
European Bond Yields Rise After Italy Plunges In Political Turmoil
European markets advanced and bond yields were in focus after Italy's prime minister resigned.
Prime Minister Mario Draghi offered his resignation after the coalition partner 5-Star Movement refused to back the government in a no confidence vote on a disagreement with a plan in combating rising consumer prices.
President Sergio Mattarella rejected Draghi's resignation and asked him to address the parliament next week.
Bond market was on alert after Draghi's resignation, and yield on 10-year Italian bonds rose to 3.134%, a one month high and spread with the German bond of similar maturity widened to 2.2% for the second day in a row.
Bond yields in the region edged slightly lower today but remained elevated on the Italian and British uncertainties.
The yield on the 10-year bond of Germany traded at 1.16%, France at 1.77% and the U.K. at 2.098%.
Conservative Party in the U.K. narrowed the list to 6 from 12 contenders to lead the party after parliamentary members of the party revolted against Prime Minister Boris Johnson forcing his unscheduled departure last week.
The DAX index gained 1.76% to 12,754.25, the CAC-40 index increased 0.76% to 5,962.87, and the FTSE 100 index added 1.2% to 7,123.81.
China's Economy Barely Grew In June
China reported lower than expected economic growth in June quarter.
GDP expanded at 0.4% from a year ago falling well short of expectations between 0.7% and 1.2%, the National Bureau of Statistics said on Friday.
The economic activities fell sharply after months of lockdowns and dragged the GDP growth down from 4.8% annual rate in the first quarter.
The economy expanded at the slowest pace since the first quarter of 2020 when GDP shrank 6.8% after initial outbreak of coronavirus in Wuhan brough the second largest economy to a complete halt.
For the first half, the economy expanded at 2.5% rate well below the annual target rate of 5.5% set by the Chinese government.
Real estate sector continued to drag the economy with property investment dropping 9.4% but retail sales in June rose 3.1% driven by higher automobile sales.
Industrial production also jumped 3.9% from a year ago.
The delays in housing construction has sparked a wave of mortgage boycotts in several cities in the last few days after home buyers refused to pay for unfinished homes.
China's Economy Barely Grows In June Quarter
Brian Turner
15 Jul, 2022
New York City
China reported lower than expected economic growth in June quarter.
GDP expanded at 0.4% from a year ago falling well short of expectations between 0.7% and 1.2%, the National Bureau of Statistics said on Friday.
The economic activities fell sharply after months of lockdowns and dragged the GDP growth down from 4.8% annual rate in the first quarter.
The economy expanded at the slowest pace since the first quarter of 2020 when GDP shrank 6.8% after initial outbreak of coronavirus in Wuhan brough the second largest economy to a complete halt.
For the first half, the economy expanded at 2.5% rate well below the annual target rate of 5.5% set by the Chinese government.
Real estate sector continued to drag the economy with property investment dropping 9.4% but retail sales in June rose 3.1% driven by higher automobile sales.
Industrial production also jumped 3.9% from a year ago.
The delays in housing construction has sparked a wave of mortgage boycotts in several cities in the last few days after home buyers refused to pay for unfinished homes.
Stocks Drop After Banks Report Weak Earnings
Barry Adams
14 Jul, 2022
New York City
U.S. stocks trimmed losses in volatile trading after the wholesale price index jumped and bank earnings disappointed investors.
The S&P 500 index declined 0.3% to 3,790.31 and the Nasdaq Composite index gained 0.03% to 11,251.90.
The volatile energy prices dropped after the release of the wholesale price report on the worries that the economy may slow down faster than estimated and the Middle Eastern nations may keep the elevated supply flowing.
Futures of crude oil prices increased 15 cents to $96.45 and natural gas edged down to $6.67 a unit.
The yield on 10-year notes increased to 2.96%.
The producer price index soared 11.3% in June from a year ago and increased 1.1% on a monthly basis, the Bureau of Labor Statistics reported Thursday.
On a monthly basis, the producer price index increased 0.9% in May and jumped 0.4% in April.
Core producer price index, excluding food and energy, rose 6.4% in June.
Banks were in focus after JP Morgan earnings disappointed investors and the largest bank suspended stock buybacks to preserve capital and lifted reserves for bad loans.
JPMorgan Chase declined 3.5% to $108.00 after the bank said second quarter revenues increased 1% to $30.7 billion.
Net income in the quarter fell 28% to $8.64 billion from $11.95 billion and diluted earnings per share fell to $2.76 from $3.78.
Return on equity fell to 13% from 18% and return on tangible equity dropped to 17% from 23% a year ago.
Morgan Stanley dropped 0.4% to $74.69 after the financial services company reported net revenues in the second quarter ending in June fell to $13.1 billion compared to $14.8 billion a year ago.
Net income fell to $2.5 billion or $1.39 per diluted share compared to net income of $3.5 billion or $1.85 per diluted share for the same period a year ago.
European Markets Drop 2%
European markets extended losses on the worries of faster increase in interest rates and mixed earnings reports.
The DAX index declined 1.9% to 12,519.66, the CAC-40 index fell 1.4% to 5,915.42, and the FTSE index dropped 1.6% to 7,039.81.
The euro dropped to $0.99, the level last seen in 2002.
Benchmark indexes dropped on the worries of rising inflation after the U.S. wholesale prices rose 11.3% stoking the fears of faster rate increases.
The eurozone economic growth in 2022 was lowered to 2.6% from the previous estimate of 2.7% released three months ago, the European Commission said in its summer report on Thursday.
The commission downgraded the outlook citing the surging inflation, ongoing China coronavirus challenges, and continued war in Ukraine.
The estimate of the economic growth in 2023 was also lowered to 1.4% from the Spring estimate of 2.3%.
Germany's growth outlook was lowered to 1.4% and 1.3% and France's estimate was lowered to 2.4% and 1.4% in 2022 and 2023 respectively.
However, Spain's economy is expected to expand 4.0% in 2022 and 2.1% in 1.4% in 2023 and Italy's economy is set to grow 2.9% and 0.9% respectively.
Asian Markets Ease On Rate Path Worries
Market indexes in Asia declined on the worries of global economic conditions and rising inflation.
The Nikkei 225 index increased 0.6% to 26,643.39, the Sensex index declined 0.2% to 53,416.15, and the Hang Seng index fell 0.2% to 20,751.21.
Japan's industrial production fell more than initially estimated in May, the Ministry of Economy, Trade and Industry said on Thursday.
Industrial production fell a seasonally adjusted 7.5% in May from the previous estimate of 7.2%.
Singapore unexpectedly lifted its key lending rate and the central bank revised higher its estimate of overall inflation to between 5.0% and 6.0%from the previous range of 4.5% to 5.5%.
India's trade deficit in June surged nearly three-fold to $26.2 billion from $9.2 billion a year ago.
Exports in June soared 23.5% in June to $40 billion and imports soared 57.6% to $66.31 billion resulting in a trade deficit of $26.2 billion.
Movers: Cisco, Conagra, Ericsson, JPMorgan, Morgan Stanley, Taiwan Semiconductor
Barry Adams
14 Jul, 2022
New York City
U.S. stocks rebounded from morning losses and wholesale inflation surged.
The S&P 500 index declined 0.5% to 3,780.81 and the Nasdaq Composite index dropped 0.2% to 11,226.51.
The volatile energy prices dropped after the release of the wholesale price report on the worries that the economy may slow down faster than estimated and the Middle Eastern nations may keep the elevated supply flowing.
Futures of crude oil prices declined $4.40 to $91.85 and natural gas edged down to $6.68 a unit.
The producer price index soared 11.3% in June from a year ago and increased 1.1% on a monthly basis, the Bureau of Labor Statistics reported Thursday.
On a monthly basis, the producer price index increased 0.9% in May and jumped 0.4% in April.
Core producer price index, excluding food and energy, rose 6.4% in June.
Banks were in focus after JP Morgan earnings disappointed investors.
JPMorgan Chase declined 3.8% to $107.67 after the bank said second quarter revenues increased 1% to $30.7 billion.
Net income in the quarter fell 28% to $8.64 billion from $11.95 billion and diluted earnings per share fell to $2.76 from $3.78.
Return on equity fell to 13% from 18% and return on tangible equity dropped to 17% from 23% a year ago.
Morgan Stanley dropped 0.9% to $74.26 after the financial services company reported net revenues in the second quarter ending in June fell to $13.1 billion compared to $14.8 billion a year ago.
Net income fell to $2.5 billion or $1.39 per diluted share compared to net income of $3.5 billion or $1.85 per diluted share for the same period a year ago.
Telefonaktiebolaget LM Ericsson ADR Class B declined 9.2% to $6.78 after the telecom networking equipment maker said revenues in the June quarter rose 14% to skr 62.5 billion from skr 54.9 billion.
Net income rose 19% to skr 4.7 billion or skr 1.35 per share from skr 3.9 billion or skr 1.10 a share a year ago.
Free cash flow in the quarter increased to skr 4.4 billion from skr 4.1 billion a year ago.
Experian Plc gained 1.9% to $31.45 after the British credit reporting service reported revenues in the latest quarter increased 7% and jumped 9% on a constant currency basis.
North America revenues rose 8% and represented 65% of total revenues of the company.
The credit reporting service guided organic revenue growth in the range of 7% to 9%, total revenue growth in the range of 8% to 10% and modest margin accretion based on constant exchange rates.
Conagra Brands declined 7.9% to $32.89 after the company reported sales in fiscal year fourth quarter ending in May increased 6.2% to $2.9 billion.
The 6.8% increase in organic net sales was driven by a 13.2% improvement in price/mix, which was partially offset by a 6.4% decrease in volume.
Higher input costs and wages costs dragged the net income.
In the quarter, net income decreased 48.6% to $159 million or $0.33 per diluted share from $309.5 million or 64 cents a share a year ago.
Cisco Systems declined 1.1% to $42.26 after Goldman Sachs downgraded stock to "neutral" from "overweight" citing weakening enterprise spending budgets.
Taiwan Semiconductor increased 2.5% to $83.30 after second quarter revenues increased 36.6% to $18.16 billion from a year ago and jumped 3.4% from the previous quarter.
Gross margin for the quarter was 59.1%, operating margin was 49.1%, and net profit margin was 44.4%.
Earnings in Taiwanese dollars increased 78% to NT$9.14 from NT$5.18 a year ago.
The semiconductor chip maker also lifted its third quarter revenues outlook to between $19.8 billion and $20.6 billion.
European Movers: Ashmore, Ericsson, Experian, Deutsche Telekom, Hugo Boss
Bridgette Randall
14 Jul, 2022
New York City
European markets extended losses on the worries of faster increase in interest rates and mixed earnings reports.
The DAX index declined 1.9% to 12,509.64, the CAC-40 index fell 1.6% to 5,902.25, and the FTSE index dropped 1.96% to 7,015.10.
The euro extended its losses to a low last seen since 2002 of $0.99.
Benchmark indexes dropped on the worries of rising inflation after the U.S. wholesale prices rose 11.3% stoking the fears of faster rate increases.
The eurozone economic growth in 2022 was lowered to 2.6% from the previous estimate of 2.7% released three months ago, the European Commission said in its summer report on Thursday.
Ericsson dropped 9.2% to skr 71.88 after the telecom equipment maker said revenues in the June quarter rose 14% to skr 62.5 billion from skr 54.9 billion.
Net income rose 19% to skr 4.7 billion or skr 1.35 per share from skr 3.9 billion or skr 1.10 a share a year ago.
Free cash flow in the quarter increased to skr 4.4 billion from skr 4.1 billion a year ago.
Experian Plc gained 2.8% to 2,647.05 pence after the British credit reporting service reported revenues in the latest quarter increased 7% and jumped 9% on a constant currency basis.
Hugo Boss gained 2.5% to 55.80 euros after the high-end men's fashion company lifted its financial year outlook.
full-year sales are expected to increase between 3.3 billion and 3.5 billion euros and operating earnings between 285 million and 310 million euros.
Sales in the second quarter rose 29% to 878 million euros and jumped 34% when adjusted for currencies and operating earnings of 100 million euros.
Deutsche Telekom declined 2.4% to 18.73 euros after the Germany telecom operator agreed to sell 51% stake in GD Tower at 17.5 billion euros enterprise value.
The company will retain 49% stake in the tower assets in Germany and Austria and plans to use estimated proceeds of 10.7 billion euros to replay its debt.
Ashmore Group declined 6.3% to 192.0 pence after the asset management firm said assets under management fell $14.3 billion in three months to June, comprising net outflows of $6.6 billion and negative investment performance of $7.7 billion.
Total assets under management declined to $64.0 billion at the end of June from $78.3 billion at the end of March.
"The net outflows were concentrated in the local currency and blended debt themes, with substantially smaller net outflows in the external debt, equities and corporate debt themes.
The local currency net redemptions were primarily from low margin institutional accounts, including overlay outflows of US$2.5 billion reflecting lower market levels," Ashmore said in a quarterly update to investors.
Faster Rate Hike Worries Markets After Wholesale Price Report
Barry Adams
14 Jul, 2022
New York City
U.S. stocks accelerated declines after the wholesale prices jumped and bank earnings disappointed investors.
The S&P 500 index declined 2.1% to 3,724.11 and the Nasdaq Composite index dropped 1.9% to 11,032.01.
The volatile energy prices dropped after the release of the wholesale price report on the worries that the economy may slow down faster than estimated and the Middle Eastern nations may keep the elevated supply flowing.
Futures of crude oil prices declined $4.40 to $91.85 and natural gas edged down to $6.68 a unit.
The producer price index soared 11.3% in June from a year ago and increased 1.1% on a monthly basis, the Bureau of Labor Statistics reported Thursday.
On a monthly basis, the producer price index increased 0.9% in May and jumped 0.4% in April.
Core producer price index, excluding food and energy, rose 6.4% in June.
Banks were in focus after JP Morgan earnings disappointed investors.
JPMorgan Chase declined 3.8% to $107.67 after the bank said second quarter revenues increased 1% to $30.7 billion.
Net income in the quarter fell 28% to $8.64 billion from $11.95 billion and diluted earnings per share fell to $2.76 from $3.78.
Return on equity fell to 13% from 18% and return on tangible equity dropped to 17% from 23% a year ago.
Morgan Stanley dropped 0.9% to $74.26 after the financial services company reported net revenues in the second quarter ending in June fell to $13.1 billion compared to $14.8 billion a year ago.
Net income fell to $2.5 billion or $1.39 per diluted share compared to net income of $3.5 billion or $1.85 per diluted share for the same period a year ago.
June Producer Price Index Soars 11.3%
Brian Turner
14 Jul, 2022
New York City
The producer price index soared 11.3% in June from a year ago and increased 1.1% on a monthly basis, the Bureau of Labor Statistics reported Thursday.
On a monthly basis producer price index increased 0.9% in May and jumped 0.4% in April.
Core producer price index, excluding food and energy, rose 6.4% in June.
The index for final demand goods moved up 2.4% in June, the sixth monthly increase in a row.
Nearly 90% of the June increase can be traced to a 10.0-percent jump in prices for final demand energy.
The indexes for final demand goods less foods and energy and for final demand foods advanced 0.5% and 0.1%, respectively.
European Markets Drop 2%, Eurozone Growth Estimate Lowered
Bridgette Randall
14 Jul, 2022
New York City
European markets extended losses on the worries of faster increase in interest rates and mixed earnings reports.
The DAX index declined 1.9% to 12,509.64, the CAC-40 index fell 1.6% to 5,902.25, and the FTSE index dropped 1.96% to 7,015.10.
The euro extended its losses to a low last seen since 2002 of $0.99.
Benchmark indexes dropped on the worries of rising inflation after the U.S. wholesale prices rose 11.3% stoking the fears of faster rate increases.
The eurozone economic growth in 2022 was lowered to 2.6% from the previous estimate of 2.7% released three months ago, the European Commission said in its summer report on Thursday.
The commission downgraded the outlook citing the surging inflation, ongoing China coronavirus challenges, and continued war in Ukraine.
The estimate of the economic growth in 2023 was also lowered to 1.4% from the Spring estimate of 2.3%.
Germany's growth outlook was lowered to 1.4% and 1.3% and France's estimate was lowered to 2.4% and 1.4% in 2022 and 2023 respectively.
However, Spain's economy is expected to expand 4.0% in 2022 and 2.1% in 1.4% in 2023 and Italy's economy is set to grow 2.9% and 0.9% respectively.
Ericsson dropped 9.2% to skr 71.88 after the telecom equipment maker said revenues in the June quarter rose 14% to skr 62.5 billion from skr 54.9 billion.
Net income rose 19% to skr 4.7 billion or skr 1.35 per share from skr 3.9 billion or skr 1.10 a share a year ago.
Free cash flow in the quarter increased to skr 4.4 billion from skr 4.1 billion a year ago.
Experian Plc gained 2.8% to 2,647.05 pence after the British credit reporting service reported revenues in the latest quarter increased 7% and jumped 9% on a constant currency basis.
Hugo Boss gained 2.5% to 55.80 euros after the high-end men's fashion company lifted its financial year outlook.
full-year sales are expected to increase between 3.3 billion and 3.5 billion euros and operating earnings between 285 million and 310 million euros.
Sales in the second quarter rose 29% to 878 million euros and jumped 34% when adjusted for currencies and operating earnings of 100 million euros.
S&P 500 Trim Losses Despite Inflation Surge
Barry Adams
13 Jul, 2022
New York City
Stocks sank after inflation accelerated to a new 4-decade high but managed to rebound and trim day's losses.
The consumer price increase intensified to 9.1% annual rate in June from 8.6% in May after gasoline prices surged 60% from a year ago.
The S&P 500 index dropped 1.0% to 3,781.62 and the Nasdaq Composite index declined 1.3% to 11,122.30.
Futures of crude oil prices edged up a fraction $96.40 a barrel and natural gas gained 46 cents to $6.63 a unit.
The yield on 10-year Treasury notes jumped to 3.01% and backed down to 2.91% but the 2-year yield jumped to 3.13% after the release of the latest inflation report.
The gap between 2-year and 10-year is the largest since 2000 and many investors believe that the inverted yield generally forecasts impending economic recession.
Benchmark indexes opened lower on the worries that the latest inflation report will provide another reason for the Federal Reserve to lift interest rate by a large 75 basis points at its next meeting on July 26-27.
Core inflation, which excludes volatile food and energy, rose 5.9% on an annual basis after rising at 6.0% in April.
Despite the sharp rise in inflation, market indexes turned around after two hours of trading and touched the flat line but struggled to stay in the positive territory.
Delta Airlines declined 6.3% on the market weakness and the company reported profit despite the rising fuel costs as summer travel picked up and business travel began to accelerate.
June quarter revenues rose 10% to $13.8 billion and net income fell 49% to $735 million or $1.15 a share from $1.44 billion or $2.21 a share a year ago.
The airline said June quarter domestic revenues were 3% higher and international revenues were 81% of the period in 2019.
Alphabet, the parent of Google search engine, declined 2.2% and announced a hiring slow down for the rest of the year on the economic uncertainties.
Netflix gained 1.6% to $177.26 after the streaming services provider struck a partnership with Microsoft for its ad-supported service.
Unity Software dropped 17.3% to $32.85 and Ironsource Ltd. soared 47.9% to $3.30 after two companies agreed to merge in a $4.4 billion all-stock transaction.
Separately, Unity lowered its full-year outlook.
European Markets Sank Deeper
European markets declined further after the release of the inflation report.
The DAX index declined 1.1% to 12,756.32, the CAC-40 index fell 0.7% to 6,000.24, and the FTSE 100 index decreased 0.7% to 7,156.37.
Eurozone production increased 0.8% and 0.6% in the European Union in May on a monthly basis, the eurostat reported on Wednesday.
On an annual basis, industrial production increased 1.6% in the euro area and 2.7% in the EU in May.
The U.K. GDP increased 0.5% in May from the revised decline of 0.2% in April, the Office for National Statistics said on Wednesday.
The expansion was broad based driven by increases in services, production, and construction.
The monthly GDP is now estimated to be 1.7% above its pre-coronavirus pandemic levels in February 2020.
On an annual basis, the GDP rose 3.5% in May after rising at 3.7% in April.
The euro inched lower to $1.003.
Movers: Alphabet, Delta, Fastenal, Latham, Qurate, Twitter, Zoom Video
Barry Adams
13 Jul, 2022
New York City
On Wall Street stocks lacked direction after inflation accelerated to a new 4-decade high on the sustained jump in gasoline prices.
The consumer price increase intensified to 9.1% annual rate in June from 8.6% in May after gasoline prices surged 60% from a year ago.
The S&P 500 index was unchanged at 3,820.32 and the Nasdaq Composite index increased 0.3% to 11,302.47.
Futures of crude oil prices edged down a fraction $95.68 a barrel and natural gas gained 32 cents to $6.48 a unit.
The yield on 10-year Treasury notes jumped to 3.01% after the release of the latest inflation report.
Alphabet Inc decreased 1.7% to 2,243.40 after chief executive Sundar Pichai announced the company's plan to slow down hiring amid the economic uncertainty.
"We
Europe Movers: Credit Suisse, Concurrent Technologies, Glencore, J D Wetherspoon, SAS, Tullow
Bridgette Randall
13 Jul, 2022
Frankfurt
European markets dropped after the U.S. inflation accelerated in June.
The DAX index declined 1.3% to 12,742.07, the CAC-40 index fell 1.1% to 5,977.07, and the FTSE 100 index decreased 0.8% to 7,152.80.
The indexes were under pressure from the start but dropped sharply after the release of the U.S. inflation report.
The 4-decade high inflation in the U.S. is expected to support Fed's plan of lifting interest rates at a faster pace of 75 basis points at the next Fed's meeting on July 26-27.
Consumer prices in June accelerated at a 9.1% rate after rising 8.6% in May, the Bureau of Labor Statistics reported on Wednesday.
Core prices, excluding food and energy, rose 5.9% in June after rising at 6.0% in May.
Much of the inflation was driven by a sharp rise in gasoline prices, advancing 11.2% on a monthly basis and nearly 60% from a year ago.
Benchmark indexes in the region recovered in the next two hours of trading from the lows after the release of the U.S. inflation report.
The euro inched lower to $1.003 and the negative sentiment persisted in the currency trading on the expectations of slower economic growth and rising interest rates in the region.
The euro traded at $1.14 at the start of 2022 and has steadily fallen, driven by the deepening energy crisis, Ukraine war, and widening rate gaps between Germany and France and peripheral economies of Italy, Spain, and Greece.
Scandinavia Airlines surged 9.50% to kr 0.67 after the pilot union resumed talks with the embattled airline's management today.
Credit Suisse Group AG declined 3.8% to 5.29 swiss francs and the investment banker said it postponed the initial public offering of its real-estate fund 1a Immo PK because of weak market conditions.
J D Wetherspoon plc dropped 8.3% to 577.50 pence after the pub chain operator said comparable sales declined 0.4% in the June quarter compared to 4% decline in the March quarter from similar periods in 2019.
"Many people predicted a boom in pub sales when lockdowns and restrictions ended, due to pent-up demand, but recovery for many companies has been slower and more laborious than was anticipated.
Although sales now match 2019, labour costs are far higher. The company is, with minor exceptions, fully staffed," the pub operator said in a press release.
Concurrent Technologies jumped 7.2% to 79.89 pence after the company won an order to supply high-end computer boards.
The company "entered into a supply agreement and has received a $2.2 million order for initial product shipments from a global medical technology company based in the USA.
Initial shipments have commenced for qualification purposes with volume shipments scheduled to start at the end of 2022," the advanced embedded boards maker said in a statement to investors today.
Tullow Oil Plc declined 2.8% to 42.62 pence despite the company reaffirming its full-year outlook.
Glencore Plc declined 1.03% to 417.70 pence after the company said it completed the sale of a royalty package by BaseCore Metals LP to Sandstorm Gold Ltd. for $525 million.
BaseCore is equally owned by Glencore and Ontario Teachers