Market Update
European Markets Trade Down Fighting Slower Growth and Faster Rate Worries
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.
Eurozone Production Rises, UK GDP Expands
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.
Rate Worries Drag Euro to Dollar Parity
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
Stocks Sink After Inflation Accelerates In June
Barry Adams
13 Jul, 2022
New York City
Stocks sank 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 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 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.
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.
Delta Airlines declined 6.3% to $29.11 after the airline reported June quarter revenues rose 10% to $13.8 billion.
Net income in the quarter 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.
European Markets Sank Deeper
European markets declined further after the release of the inflation report.
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.
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.
Consumer Inflation Accelerates In June to a New 4-Decade High
Brian Turner
13 Jul, 2022
New York City
Consumer prices accelerated in June largely driven by higher prices for energy, shelter, and food.
The all-item consumer price index increased 9.1% in June after rising at 8.6% in May, the fastest pace of increase since November 1981, the Bureau of Labor Statistics reported on Wednesday.
The annual increase in inflation has been keenly watched by economists, traders, and investors looking for the clues of when price increases are likely to peak.
On a monthly basis, the consumer price index increased 1.3% in June on a seasonally adjusted basis after rising 1.0%.
Core consumer prices, excluding food and energy, rose 0.7% after increasing 0.6% in the previous two months.
The largest contributors to the price increases were shelter, used cars and trucks, medical care, motor vehicle insurance, and new vehicles.
The prices jumped across the board and food prices soared 10.4%, the fastest pace of price increase since February 1981.
Energy prices rose 41.6% on an annual basis, the largest increase since April 1980.
Gasoline prices continued to surge in the month driving much of the inflation.
Gasoline prices rose 11.2% on a monthly basis and soared 59.9% on an annual basis.
U.S. Stocks Drop Ahead of Inflation Reports and Profit Squeeze Worries
Barry Adams
12 Jul, 2022
New York City
U.S. stocks turned lower in the final hour of trading ahead of inflation report on Wednesday.
June consumer price index report is expected to surpass the 8.6% level reported in May tomorrow and wholesale price inflation report is expected to show an increase of 10% on Thursday.
The surging dollar added to a list of worries as the euro traded at parity with the U.S. currency and the Japanese yen and the British pound traded near two-decade lows.
Emerging market currencies also sank near record lows with surging inflation and rising fuel and food prices.
Investors have been dialing down earnings growth expectations as corporations are squeezed from the rising interest rates, surging fuel prices and rising wage costs. The dollar surge is
The S&P 500 decreased 0.9% to 3,818.80 and the Nasdaq Composite index fell 0.95% to 11,264.73.
Futures of crude oil dropped $8.51 to $95.60 a barrel and natural gas fell 20 cents to $6.22 a unit.
The yield on 10-year Treasury notes declined to 2.95% and stayed below the 3.039% yield for 2-year Treasury notes.
Airlines stocks soared after America Airlines said it expects second quarter revenues to top 2019 levels.
American Airlines surged 9.9% to $14.48, United Airlines added 8.1% to $38.23, and Delta Airlines advanced 6.2% to $31.09.
Delta is scheduled to release earnings on Wednesday.
PepsiCo declined a fraction to $169.75 after the beverages and food products maker reported better than expected revenues and earnings.
Peloton Interactive gained 3.9% to $9.27 after the high-end bicycle maker said it plans to end all its manufacturing activities and outsource its production.
Canoo Inc soared 53.6% to $3.61 after Walmart agreed to buy 4,500 electric battery operated vans from the company with an option to purchase additional 5,500 vehicles.
PriceSmart declined 9.6% to $65.54 after the wholesale club chain's quarterly earnings were affected by supply chain disruptions despite rising sales.
Weak German Business Confidence Drags European Markets
European markets reversed earlier losses and closed up amid the uncertainty linked to the future natural gas supply from Russia.
Russia turned off natural gas flow through Nord Stream 1 pipeline for the previously announced scheduled maintenance for ten days.
However, Germany and other European nations are bracing for an extended shutdown as the Ukraine war shows no signs of abating.
Germany gets about one third of its natural gas from Russia.
The DAX index rose 0.5% to 12,905.48, the CAC-40 gained 0.8% to 6,044.21, and the FTSE 100 index added 0.18% to 7,209.84.
European markets opened lower as the energy crisis deepens in the region and worries of the faster U.S. interest rate hike after the release of inflation data on Wednesday.
U.S. June consumer price inflation is expected to cross 8.6% reported in May stoking the fears of a 75 point rate hike at the next Fed's meeting on July 27.
Business confidence index in Germany plunged more than expected in July, according to the data released by a private research institute.
The ZEW Indicator of Economic Sentiment plunged to -53.8 in July from -28.0 in June, Leibniz Centre for European Economic Research reported on Tuesday.
The indexes rebounded in the late afternoon trading shaking off the worries of the future energy supplies and looked ahead to earnings season kicking off later this week.
AkzoNobel rebounded from the morning loss of 1% to close up 1.5% to 63.52 euros and the Dutch paint company plans to invest 20 million euros in France to improve production at two locations.
Thales SA increased 2.4% to 123.30 euros after the electrical systems developer agreed to acquire Dutch OneWelcome for 100 million euros.
United Utilities Group rose 0.3% to 1,036.50 pence and the British utility company agreed to sell its renewable energy to SDCL Energy Efficiency Income Trust plc for about
European Markets Rebound from Morning Losses
Bridgette Randall
12 Jul, 2022
New York City
European markets reversed earlier losses and closed up amid the uncertainty linked to the future natural gas supply from Russia.
Russia turned off natural gas flow through Nord Stream 1 pipeline for the previously announced scheduled maintenance for ten days.
However, Germany and other European nations are bracing for an extended shutdown as the Ukraine war shows no signs of abating.
Germany gets about one third of its natural gas from Russia.
The DAX index rose 0.5% to 12,905.48, the CAC-40 gained 0.8% to 6,044.21, and the FTSE 100 index added 0.18% to 7,209.84.
European markets opened lower as the energy crisis deepens in the region and worries of the faster U.S. interest rate hike after the release of inflation data on Wednesday.
U.S. June consumer price inflation is expected to cross 8.6% reported in May stoking the fears of a 75 point rate hike at the next Fed's meeting on July 27.
Business confidence index in Germany plunged more than expected in July, according to the data released by a private research institute.
The ZEW Indicator of Economic Sentiment plunged to -53.8 in July from -28.0 in June, Leibniz Centre for European Economic Research reported on Tuesday.
The weak confidence data also reflected in the currency trading and the euro dropped to 0.99 against a dollar briefly before recovering to close at $1.003.
The indexes rebounded in the late afternoon trading shaking off the worries of the future energy supplies and looked ahead to earnings season kicking off later this week.
AkzoNobel rebounded from the morning loss of 1% to close up 1.5% to 63.52 euros and the Dutch paint company plans to invest 20 million euros in France to improve production at two locations.
Thales SA increased 2.4% to 123.30 euros after the electrical systems developer agreed to acquire Dutch OneWelcome for 100 million euros.
United Utilities Group rose 0.3% to 1,036.50 pence and the British utility company agreed to sell its renewable energy to SDCL Energy Efficiency Income Trust plc for about
Asian Markets Ease On Rising Coronavirus Infections In China
Arjun Pandit
12 Jul, 2022
New York City
Asian markets fell across the region on the rising prospects of a recession and the resurgent highly infectious subvariant of coronavirus infections in parts of China.
About 30 million people in China are placed in a lockdown condition as several cities in China including parts of Beijing and Shanghai report a rapid spreading of coronavirus.
The Nikkei index dropped 1.8% to 26,339, the Hang Seng index fell 1.3% to 20,844.74, and the Shanghai index declined 1.0% to 3,281.47.
Stocks in Tokyo declined after a measure of wholesale prices rose for the third month in a row in June.
The Japanese yen edged slightly up to 136.65 against one U.S. dollar.
The Sensex index in Mumbai fell 0.94% to 53,886.61 and rupee dropped to a new low as the dollar surged against worldwide currencies.
PepsiCo Lifted Core Earnings Outlook, Sales Rise 5%
Scott Peters
12 Jul, 2022
New York City
PepsiCo gained a fraction to $171.45 after the beverages and food products maker reported better than expected revenues and earnings.
Revenues in the quarter ending on June 11 rose 5.2% to $22.5 billion and net income declined 41.6% to $1.4 billion from $2.4 billion a year ago.
Diluted earnings per share declined 39% to $1.03 from $1.73 a year ago.
Foreign currency translation impacted revenues negatively 3% and earnings per share 2%.
Guidance and Outlook
The company guided full-year organic revenue to increase 10% from the previous estimate of 8% and core constant currency earnings per share to advance 8%.
Beverage sales in North America declined 1%, Frito-Lay North America sales rose 14%, and Quaker Foods North America surged 17%.
The company reiterated its commitment of returning $7.7 billion to shareholders including $1.5 in share repurchases and $6.2 billion in dividends.
PepsiCo estimates 2-percentage-point foreign exchange translation headwind to impact reported net revenue and core earnings per share growth based on current market consensus rates.
The food products maker guided core earnings per share of $6.63, a 6% increase compared to $6.26 a year ago.
PriceSmart Earnings Down On Higher Markdowns
Scott Peters
12 Jul, 2022
New York City
PriceSmart declined 12% to $64.05 after the wholesale club chain's quarterly earnings were affected by supply chain disruptions despite rising sales.
Sales in the quarter ending in May increased 15% to $1.03 billion and net income declined to $19.3 million from $22.6 million a year ago.
Diluted earnings per share fell to 62 cents from 73 cents a year ago.
The earnings were affected by larger than normal markdowns after the retailer ordered more inventories and customers avoided discretionary items and focused on essential goods.
Movers: Canoo, GAP, PepsiCo, Peloton, PriceSmart, Twitter
Barry Adams
12 Jul, 2022
New York City
U.S. stocks headed lower ahead of inflation reports and bank earnings later in the week.
The surging dollar added to a list of worries as the euro traded at parity with the U.S. currency and the Japanese yen and the British pound traded near two-decade lows.
Emerging market currencies also sank near record lows with surging inflation and rising fuel and food prices.
Investors have been dialing down the expectations of earnings growth on the rising interest rates, surging fuel prices and rising wage costs.
The S&P 500 decreased 0.5% to 3,839.57 and the Nasdaq Composite index rose 4.50 to 11,888.30.
Futures of crude oil dropped $4.58 to $99.51 a barrel and natural gas advanced 58 cents to $6.51 a unit.
The yield on 10-year Treasury notes declined to 2.94% and stayed below the 3.03% yield for 2-year Treasury notes.
PepsiCo gained a fraction to $171.45 after the beverages and food products maker reported better than expected revenues and earnings.
Revenues in the quarter ending on June 11 rose 5.2% to $22.5 billion and net income declined to $1.4 billion from $2.4 billion a year ago.
Diluted earnings per share declined to $1.03 from $1.73 a year ago.
Foreign currency translation impacted revenues negatively 3% and earnings per share 2%.
The company guided full-year organic revenue to increase 10% from the previous estimate of 8% increase and estimated core constant currency earnings per share to increase 8%.
Peloton Interactive gained 4.2% to $9.41 after the high-end bicycle maker said it plans to end all its manufacturing activities and outsource its production.
Canoo Inc soared 75% to $4.51 after Walmart agreed to buy 4,500 electric battery operated vans from the company with an option to purchase additional 5,500 vehicles.
PriceSmart declined 12% to $64.05 after the wholesale club chain's quarterly earnings were affected by supply chain disruptions despite rising sales.
Sales in the quarter ending in May increased 15% to $1.03 billion and net income declined to $19.3 million from $22.6 million a year ago.
Diluted earnings per share fell to 62 cents from 73 cents a year ago.
The earnings were affected by larger than normal markdowns after the retailer ordered more inventories and customers avoided discretionary items and focused on essential goods.
Gap Inc declined 5.1% to $8.30 and the company said Sonia Syngal has resigned from the chief executive post and company board following a brief transition.
Executive chairman Bob Martin will temporary assume the CEO position till the company finds a replacement.
The company also appointed Horacio Barbeito as the new chief executive and president of Old Navy.
Twitter Inc gained 2.6% to $33.48 and the company said in a letter sent to Elon Musk that the merger termination is "invalid and wrongful" and demanded to complete the merger as agreed in the agreement.
Earnings Worries and Strong Dollar Keep S&P 500 and Nasdaq Down
Barry Adams
12 Jul, 2022
New York City
U.S. stocks headed lower ahead of inflation reports and bank earnings later in the week.
The surging dollar added to a list of worries as the euro traded at parity with the U.S. currency and the Japanese yen and the British pound traded near two-decade lows.
Emerging market currencies also sank near record lows with surging inflation and rising fuel and food prices.
Investors have been dialing down the expectations of earnings growth on the rising interest rates, surging fuel prices and rising wage costs.
The S&P 500 decreased 0.5% to 3,839.57 and the Nasdaq Composite index rose 4.50 to 11,888.30.
Futures of crude oil dropped $4.58 to $99.51 a barrel and natural gas advanced 58 cents to $6.51 a unit.
The yield on 10-year Treasury notes declined to 2.94% and stayed below the 3.03% yield for 2-year Treasury notes.
PepsiCo gained a fraction to $171.45 after the beverages and food products maker reported better than expected revenues and earnings.
Peloton Interactive gained 4.2% to $9.41 after the high-end bicycle maker said it plans to end all its manufacturing activities and outsource its production.
Canoo Inc soared 75% to $4.51 after Walmart agreed to buy 4,500 electric battery operated vans from the company with an option to purchase additional 5,500 vehicles.
PriceSmart declined 3% to $69.45 after the wholesale club chain's quarterly earnings were affected by supply chain disruptions despite rising sales.
The Surging Dollar Worries Global Markets
The euro is trading at parity to the U.S. dollar and at a two-decade low with the Ukraine war showing no signs of abating and an energy crisis looming in the region.
The Japanese yen is also at a two-decade low driven by the surging imported prices of energy and rising costs of food.
The seven years long British political chaos and decades of economic underperformance is finally knocking the British pound to the lowest it has been since 1984.
One euro fetched $1.003, the British pound closed at $1.183 just shy of $1.15 seen in October 1984, and one dollar yielded 135.81 yen.
European Markets Down On Energy Supply Disruptions
European markets traded down after Russia shut down Nord Stream 1 natural gas flow for 10 days as previously announced.
However, Germany and other European nations are bracing for an extended shutdown as the Ukraine war shows no signs of abating.
Germany gets about one third of its natural gas from Russia.
The DAX index declined 0.7% to 12,745.78, the CAC-40 fell 0.3% to 5,979.61, and the FTSE 100 index dropped 0.1% to 7,184.74.
Asian Markets Fall On Rising Coronavirus Infections
Asian markets fell across the region on the rising prospects of a recession and the resurgent highly infectious subvariant of coronavirus infections in parts of China.
About 30 million people in China are placed in a lockdown condition as several cities in China including parts of Beijing and Shanghai report a rapid spreading of coronavirus.
The Nikkei index dropped 1.8% to 26,339, the Hang Seng index fell 1.3% to 20,844.74, and the Shanghai index declined 1.0% to 3,281.47.
Stocks in Tokyo declined after a measure of wholesale prices rose for the third month in a row in June.
The Japanese yen edged slightly up to 136.65 against one U.S. dollar.
The Sensex index in Mumbai fell 0.94% to 53,886.61 and rupee dropped to a new low as the dollar surged against worldwide currencies.
U.S. Stocks Fall Ahead of Earnings With Strong Dollar Adding to a List of Worries
Barry Adams
11 Jul, 2022
New York City
Stocks declined on the first day of trading with a strong dollar adding to the worries of economic slowdown and rising inventories.
With earnings in focus later in the week, investors are looking for signs of other troubles ahead in the market.
This year's market decline of 19.6% has been driven by the rising interest rates and sky-high inflation but the second leg of the market downturn is likely to be driven by the falling rates of earnings growth.
For now, earnings are expected to rise less than 5% in the June quarter and most sectors in the economy are likely to show even weaker or no growth, except the utilities, consumer staples, and energy.
However, the strong dollar is also expected to weigh for the most corporations operating around the globe in addition to the surging inventories and ongoing supply chain disruptions.
The euro is trading at parity to the U.S. dollar and at a two-decade low with the Ukraine war showing no signs of abating and an energy crisis looming in the region.
The Japanese yen is also at a two-decade low driven by the surging imported prices of energy and rising costs of food.
British political chaos and decades of economic mismanagement is finally knocking the British pound to the low last seen since 1984.
One euro fetched $1.004, the British pound closed at $1.188 just shy of $1.15 seen in October 1984, and one dollar yielded 137.41 yen.
The S&P 500 decreased 1.2% to 3,854.42 and the Nasdaq Composite index fell 2.20% to 11,372.60.
Futures of crude oil dropped $1.12 to $103.66 a barrel and natural gas advanced 39 cents to $6.45 a unit.
The yield on 10-year Treasury notes declined to 2.98% and stayed below the 3.05% yield for 2-year Treasury notes.
For some investors, the inverted yields in the U.S. bond market flash signs of a coming recession.
Banks are scheduled to kickstart the latest earnings season with JPMorgan Chase, Morgan Stanley, Citigroup, and Wells Fargo are among financial services companies releasing earnings on Friday.
Delta Airlines and PepsiCo are scheduled to report earnings on Tuesday.
Investors are also awaiting the June consumer inflation on Wednesday and the measure of inflation index is expected to cross 8.6% increase in May and wholesale prices on Thursday which is expected to cross 10%.
Twitter Inc declined 11.2% after Elon Musk led investment group abandoned its $44 billion takeover bid.
Twitter said the company will sue Elon Musk and demand the completion of the deal on the
Movers: Alibaba, Las Vegas Sands, lululemon, Meta, Nio, Redfin, Starbucks, Twitter, Uber, Wynn
Barry Adams
11 Jul, 2022
New York City
Benchmark indexes in New York eased as investors focus on corporate earnings and the latest guidance.
The S&P 500 decreased 0.97% to 3,862.52 and the Nasdaq Composite index fell 1.80% to 11,432.14.
Banks are scheduled to kickstart the earnings season with JPMorgan Chase, Morgan Stanley, Citigroup, and Wells Fargo are scheduled to release earnings.
Delta Airlines and PepsiCo are scheduled to report earnings on Tuesday.
Investors are also awaiting the consumer price index for June on Wednesday and the measure of inflation index is expected to cross 8.6% increase in May.
Twitter Inc declined 7.4% after Elon Musk led investment group abandoned its $44 billion takeover bid.
Twitter said the company will sue Elon Musk and for the terms of the negotiated contract.
Las Vegas Sands and Wynn Resorts declined more than 9% after Macau said it will close all casinos for one-week to contain the spread of coronavirus.
Several areas in Shanghai also reported rising cases of BA.5 subvariant virus infections prompting authorities to resume mass testing.
Uber Technologies declined 4.5% to $21.34 after the company was accused of using stealth technologies to block government investigations and win public trust, according to a report by the International Consortium of Investigative Journalists.
The company was also accused of striking a secret deal with Emmanuel Macron while he was economy minister between 2014 and 2016 and help its to breakup the closed French taxi market.
Uber said it has amended its past practices and it is a different company today.
Alibaba Group Holding declined 8.2% to $110.95 and Tencent Holdings fell 3.4% to $43.12 after Chinese regulators fined companies for not disclosing past transactions.
Meta Platforms declined 4.2% to $163.79 after Needham downgraded the stock to "underperform" from "hold" citing slower than expected returns in Metaverse technology investment.
lululemon Athletica Ltd declined 3.9% to $281.95 after Jeffries downgraded the stock to "underperform" from "hold" pointing to a more competitive market.
Starbucks Corporation declined 1.2% to $78.27 after China reported rising coronavirus cases in Shanghai and other smaller cities and authorities implemented mass testing and stringent mobility restrictions.
China is the second largest market for the coffee chain operator after the United States and derives about 25% of its revenues from the second largest economy in the world.
Nio Inc declined 8.9% to $20.61 after China faced another surge of coronavirus infections and the company also set up a committee to review allegations leveled by a short-seller Grizzly Research LLC that the company inflated its revenues and net income using intercompany transactions.
Redfin Corp dropped 9.3% to $8.62 after the real estate broker said home sale contract cancellation rate in June was just under 15% and jumped from 11% a year ago and approached the high not seen since March and April 2020.
About 60,000 contracts fell through in June equating to 14.9% of all homes that went under contract that month.
European Markets Drop 1%, Russia Suspends Nordstream 1 Gas Flow
Bridgette Randall
11 Jul, 2022
Frankfurt
European markets dropped on the natural gas supplies and fresh cases of coronavirus infections in Shanghai.
The DAX index declined 1.5% to 12,824.28, the CAC-40 index fell 0.9% to 5,977.90, and the FTSE 100 index dropped 0.2% to 7,184.22.
Energy stocks led the decliners after Russia turned off natural gas flow for a scheduled maintenance of the segments of Nordstream-1 pipeline.
The gas flow is scheduled to resume after 10 days but the German government has warned that Russia could halt the flow permanently.
Mining companies also declined after new cases of BA.5 subvariant infections in parts of Shanghai forced the city authorities to resume mass testing.
Danske Bank declined 3.8% to Dkk 98.14 after the Danish bank lowered its fiscal year 2022 annual earnings outlook.
The bank estimated annual earnings between Dkk 10 billion and Dkk 12 billion from the previous estimate between Dkk 13 billion and Dkk 15 billion released at the release of 2021 earnings on February 3.
Electricite de France SA gained 0.9% to 9.65 euros after French prime minister Elisabeth Borne released the government's plan to fully nationalize the debt-ridden utility company and deal with the evolving energy crisis in France.
Go-Ahead Group plc fell 2.2% to 1,536 pence despite the public transportation group saying the "overall, the Group expects to report a good performance for the year ended 2 July 2022" and added regional bus division has reached 85% of passenger volume of pre-pandemic level.
Wizz Air Holdings declined 3.6% to 1,790.95 pence and the ultra discount air carrier said summer flight schedule is going to be cut because of the ongoing labor shortages and strikes at several European airports.
Asian Markets Drop, LDP In Japan Won Super Majority to Revise Constitution
Arjun Pandit
11 Jul, 2022
New York City
Asian markets closed broadly lower after the strong U.S. jobs report in June rekindled the fears of faster rate hikes and resumption of mass testing in a few areas of Shanghai with the resurgence of coronavirus infections.
The Nikkei 225 Index gained 1.1% to 26,812.30, while the broader Topix finished 1.4% higher to close at 1,914.66.
The ruling Liberal Democratic Party won more than 75 of the 125 seats in the upper house election paving the way for the redrafting of the pacifist constitution, the key goal of the recently assassinated former prime minister Shinzo Abe.
Separately, the Bank of Japan revised higher its economic assessment of seven of the nine country's regions, adding the pandemic impact on consumer spending is easing.
China's Shanghai Composite Index fell 1.27% to 3,313.58 ahead of exports and imports data scheduled on Wednesday.
Hong Kong's Hang Seng Index plunged 2.8% to 21,124.20, tech stocks led the decliners after Chinese authorities fined Alibaba and Tencent Holdings for not reporting past transactions.
The Sensex and Nifty indexes trimmed the losses of the day and Tata Consultancy reported flat income on 11% increase in quarterly revenues to $6.8 billon.
Discount retailer Avenue Supermarts said June quarter sales doubled and net income soared six-fold after all 294 stores were open for the first time post pandemic.
S&P 500 Drops 1%, Nasdaq Down 2% On Inflation and Earnings Jitters
Barry Adams
11 Jul, 2022
New York City
Benchmark indexes in New York eased as investors focus on corporate earnings and the latest guidance.
The S&P 500 decreased 0.97% to 3,862.52 and the Nasdaq Composite index fell 1.80% to 11,432.14.
Banks are scheduled to kickstart the earnings season with JPMorgan Chase, Morgan Stanley, Citigroup, and Wells Fargo are scheduled to release earnings.
Delta Airlines and PepsiCo are scheduled to report earnings on Tuesday.
Investors are also awaiting the consumer price index for June on Wednesday and the measure of inflation index is expected to cross 8.6% increase in May.
Twitter Inc declined 7.4% after Elon Musk led investment group abandoned its $44 billion takeover bid.
Twitter said the company will sue Elon Musk and for the terms of the negotiated contract.
Las Vegas Sands and Wynn Resorts declined more than 9% after Macau said it will close all casinos for one-week to contain the spread of coronavirus.
European Markets Face Natural Gas Supplies Worries
European markets dropped on the natural gas supplies and fresh cases of coronavirus infections in Shanghai.
The DAX index declined 1.5% to 12,824.28, the CAC-40 index fell 0.9% to 5,977.90, and the FTSE 100 index dropped 0.2% to 7,184.22.
Energy stocks led the decliners after Russia turned off natural gas flow for a scheduled maintenance of the segments of Nordstream-1 pipeline.
The gas flow is scheduled to resume after 10 days but the German government has warned that Russia could halt the flow permanently.
Mining companies also declined after new cases of BA.5 subvariant infections in parts of Shanghai forced the city authorities to resume mass testing.
Asian Markets Fall, LDP In Japan Win Majority to Revise Constitution
Asian markets closed broadly lower after the strong U.S. jobs report in June rekindled the fears of faster rate hikes and resumption of mass testing in a few areas of Shanghai with the resurgence of coronavirus infections.
The Nikkei 225 Index gained 1.1% to 26,812.30, while the broader Topix finished 1.4% higher to close at 1,914.66.
The ruling Liberal Democratic Party won more than 75 of the 125 seats in the upper house election paving the way for the redrafting of the pacifist constitution, the key goal of the recently assassinated former prime minister Shinzo Abe.
Separately, the Bank of Japan revised higher its economic assessment of seven of the nine country's regions, adding the pandemic impact on consumer spending is easing.
China's Shanghai Composite Index fell 1.27% to 3,313.58 ahead of exports and imports data scheduled on Wednesday.
Hong Kong's Hang Seng Index plunged 2.8% to 21,124.20, tech stocks led the decliners after Chinese authorities fined Alibaba and Tencent Holdings for not reporting past transactions.
The Sensex and Nifty indexes trimmed the losses of the day and Tata Consultancy reported flat income on 11% increase in quarterly revenues to $6.8 billon.
Discount retailer Avenue Supermarts said June quarter sales doubled and net income soared six-fold after all 294 stores were open for the first time post pandemic.