Market Update
Asian Markets Sentiment Deteriorates On Oil Price Rise Resumption, Currencies Fall
Arjun Pandit
29 Jun, 2022
New York City
Across Asia, indexes closed lower following weak markets in the U.S. and weaker sentiment in the region.
Investors have been on the defensive after a 3-day rally in crude oil prices stoked fears of another hike in inflation with no end in sight for the war in Ukraine.
Turkey agreed to let Finland and Sweden join the military alliance NATO, Secretary General Jens Stoltenberg said.
The expansion of NATO is only going to escalate hostilities with Russia and prolong the war in Ukraine and further fuel energy and food inflation.
The Nikkei 225 index fell 0.9% to 26,804.60, the Hang Seng index declined 1.9% to 21,996.89, and the Shanghai index dropped 1.4% to 3,361.52.
Tech stocks led the decliners in Tokyo trading following 3% decline in tech heavy Nasdaq index in overnight trading in New York.
Softbank, Advantest, and Tokyo Electron dropped between 1% and 3%.
Tokyo Electric Power soared 5.3% to 579.0 yen after Prime Minister Fumio Kishida urged to increase the use of nuclear power to meet the rising demand from the latest heat wave engulfing the capital city.
The sentiment in the region was weak on the widening perception that a global economic slowdown may not be averted.
The resurgent dollar also knocked the yen to its 22-year low of 136.52 and the Korean won to 1,296.97.
The Kospi average dropped 1.82% to 2,377.99 after the latest consumer sentiment survey showed a sharp decline in consumer confidence elevated food and energy price inflation.
Rupee traded down 0.2% to 78,95 against one U.S. dollar extending this year's loss to 5.8%.
The Sensex index declined 150.48 or 0.3% to 53,026.97 and the Nifty index fell 51.10 or 0.3% to 15,799.10.
S&P 500 Down 2%, Nasdaq Drops 3% as Bear Market Rally Fizzles
Barry Adams
28 Jun, 2022
New York City
Popular stock averages lost morning momentum after twin worries of recession and inflation resurfaced after the release of consumer confidence data.
The consumer confidence index declined to 98.7 in June from 103.2 in May, the Conference Board reported today.
The confidence index declined for the second month in a row and the expectation index, based on short term outlook for income, business and labor market conditions, declined to 66.4 from 73.7, the lowest since March 2013.
"Consumers
Movers: Nike, Occidental Petroleum, Spirit Air, Snowflake, Walt Disney
Barry Adams
28 Jun, 2022
New York City
Major market averages attempted to advance but the market sentiment was dented after the release of weak consumer confidence index was weaker than expected.
The consumer confidence index declined to 98.7 in June from 103.2 in May, the Conference Board reported today.
The S&P 500 index added 1.01% to 3,939.45 and the Nasdaq Composite index increased 0.8% to 11,618.86.
The 10-year U.S. Treasury notes yield increased to 3.23%.
Futures of crude oil increased $1.12 to $110.69 a barrel and natural gas added 9 cents to $6.59 a thermal unit.
Occidental Petroleum increased 4.7% to $61.65 after Warren Buffett controlled Berkshire Hathaway increased its stake to 16.4% according to a regulatory filing.
Spirit Airlines increased 3.04% to $23.24 after JetBlue Airways revised its offer for carrier higher responding to Frontier's bid revision.
JetBlue increased its breakup fee by $50 million to $400 million and a $2.50 a share cash payment upon the closing of the deal and monthly 10 cents a share pre-payment from January 2023 till the date of deal closure.
Las Vegas Sands soared 7.8% to $35.81 and Wynn Resorts increased 7.8% to $62.21.
Walt Disney & Company increased 3.2% to $99.71 after the company announced its Disneyland will reopen in Shanghai this week.
Snowflake Inc declined 0.3% to $147.74 after Jeffries upgraded the cloud data warehousing and delivery company to "buy" from "hold."
Snowflake has increased more than 22% in the last five days of trading.
Several banks lifted dividends after passing their annual stress tests.
Wells Fargo, Bank of America, Goldman Sachs, and Morgan Stanley lifted their dividends but Citigroup and JP Morgan Chase left their dividends unchanged.
Nike Inc declined 4.5% to $105.77 after the athletic shoemaker reported sales in the fourth quarter ending in May declined 1% to $12.2 billion from a year ago.
Gross margin in the fourth quarter declined 80 basis points to 45% and net income declined 5% to $1.44 billion from $1.51 billion a year ago.
Inventories in the fourth quarter surged 23% to $8.4 billion from a year ago on higher in-transit inventories driven by extended lead times from ongoing supply chain disruptions.
U.S. Stocks Mixed as China Relaxes Covid Restrictions
Barry Adams
28 Jun, 2022
New York City
Major market averages attempted to advance but the market sentiment was dented after the release of weak consumer confidence index was weaker than expected.
The consumer confidence index declined to 98.7 in June from 103.2 in May, the Conference Board reported today.
Stocks wavered in yesterday's trading as investors weighed future rate hike path and the prospects of the nature of economic slowdown.
The S&P 500 index added 1.01% to 3,939.45 and the Nasdaq Composite index increased 0.8% to 11,618.86.
The 10-year U.S. Treasury notes yield increased to 3.23%.
Futures of crude oil increased $1.12 to $110.69 a barrel and natural gas added 9 cents to $6.59 a thermal unit.
Energy stocks advanced following the rise in energy prices.
Exxon Mobil, Chevron, Marathon Oil, and Schlumberger gained between 3% and 4%.
Occidental Petroleum increased 4.7% to $61.65 after Warren Buffett controlled Berkshire Hathaway increased its stake to 16.4% according to a regulatory filing.
Spirit Airlines increased 3.04% to $23.24 after JetBlue Airways revised its offer for carrier higher responding to Frontier's bid revision.
JetBlue increased its breakup fee by $50 million to $400 million and a $2.50 a share cash payment upon the closing of the deal and monthly 10 cents a share pre-payment from January 2023 till the date of deal closure.
Transportation and entertainment stocks gained after China eased inbound travel restrictions.
Las Vegas Sands soared 7.8% to $35.81 and Wynn Resorts increased 7.8% to $62.21.
Walt Disney & Company increased 3.2% to $99.71 after the company announced its Disneyland will reopen in Shanghai this week.
European Markets Advanced on China Optimism and Lagarde Comments
European market indexes advanced after China loosened travel restrictions for international travelers.
The DAX index increased 0.97% to 13,314.60, the CAC-40 index gained 1.3% to 6,128.01, and the FTSE 100 index advanced 1.4% to 7,355.09.
Crude oil advanced 1.8% and traded $117.10 a barrel as economic activities picked up in China after Shanghai and other regions in the country eased coronavirus mobility and social gathering restrictions.
BP Plc and Shell Plc gained more than 3% after crude oil prices rebounded.
Consumer confidence in Germany dropped to a new low and in France declined for the sixth month in a row.
Consumer confidence forecast for July declined to 27.4 from the revised 26.2 in June and dropped to a record low since record keeping began in 1991, private market research group GfK said on Tuesday.
Consumer sentiment in France declined for the sixth month in a row and dropped to a nine-month low.
The index declined to 82 in June from 85 in May, the statistical office Insee reported on Tuesday in Paris.
Volkswagen increased 1.7% to 141.06 euros after the company is nearing an agreement to sell its electric vehicle charging business to a unit of Siemens. The news was first reported by the Wall Street Journal.
Petrofac Limited gained 3.0% to 122.70 pence after the energy services provider said revenues at its Asset Solutions division are running ahead of expectations on higher levels of new orders.
Valeo SE gained 2.7% to 19.83 euros after the auto parts maker won a contract from BMW to provide an advanced driving assistance system for its electric vehicle scheduled to be released in 2025.
Akzo Nobel declined 3.4% to 63.30 euros and the Dutch chemical company named Gregoire Poux-Guillaume as its new chief executive.
Asian Markets Close Higher After Volatile Trading
Asian markets closed higher after searching for direction but managed to close higher.
Market sentiment was positive following the advance in stocks in New York in overnight trading.
Sentiment was also bolstered after China eased its mandatory quarantine period for international travelers from 3 weeks to 10 days.
Moreover Beijing and Shanghai reported zero coronavirus cases for the first time since February.
The Nikkei index closed up 0.7% to 27,049.47, the Hang Seng index advanced 0.85% to 22,418.97, and the Sensex index gained 0.03% to 53,177.45.
Tokyo Electric Power jumped 7.2% to 552 yen after the government warned of tight power supply amid a heatwave
Australian indexes closed at a two-week high after energy and mining companies led the gainers following a 1% rise in crude oil prices.
The benchmark ASX 200 rose 0.86% to 6,763.60 while the broader All Ordinaries index added 0.87% to close at 6,953.40.
BHP Group, Rio Tinto, and Fortescue Metals advanced between 2% and 3%.
UAE energy minister said that the country is producing at maximum capacity of 3.17 million barrels a day agreed with OPEC+ nations till the end of the year.
Movers: Akzo, Petrofac, Stellantis, Valeo, Volkswagen
Bridgette Randall
28 Jun, 2022
New York City
European market indexes advanced after China loosened travel restrictions for international travelers.
The DAX index increased 0.97% to 13,314.60, the CAC-40 index gained 1.3% to 6,128.01, and the FTSE 100 index advanced 1.4% to 7,355.09.
Akzo Nobel declined 3.4% to 63.30 euros and the Dutch chemical company named Gregoire Poux-Guillaume as its new chief executive.
Petrofac Limited gained 3.0% to 122.70 pence after the energy services provider said revenues at its Asset Solutions division are running ahead of expectations on higher levels of new orders.
Stellantis NV gained 1.8% to 12.65 euros and the automaker's Italian unions said the company plans to transform its engine and gearbox manufacturing plant in Termoli, Southern Italy into a battery production facility by 2024.
The company plans to build three battery facilities in Europe, one each in Germany, France, and Italy through its joint ventures with TotalEnergies and Mercedes Benz with a total capacity of 120 Gwh by 2030.
Valeo SE gained 2.7% to 19.83 euros after the auto parts maker won a contract from BMW to provide an advanced driving assistance system for its electric vehicle scheduled to be released in 2025.
Volkswagen AG increased 1.7% to 141.06 euros after the company is nearing an agreement to sell its electric vehicle charging business to a unit of Siemens. The news was first reported by the Wall Street Journal.
Crude oil advanced 1.8% and traded $117.10 a barrel as economic activities picked up in China after Shanghai and other regions in the country eased coronavirus mobility and social gathering restrictions.
BP Plc and Shell Plc gained more than 3% after crude oil prices rebounded.
China optimism also lifted stocks of luxury products makers.
Richemont gained 0.5% to 10.6 euros, LVMH added 1.8% to 590.40 euros, and Kering SA advanced 1.5% to 504.30 euros.
European Markets Retain Positive Bias, ECB's Lagarde Highlighted Gradual Approach
Bridgette Randall
28 Jun, 2022
New York City
European market indexes advanced after China loosened travel restrictions for international travelers.
The ECB President Christine Lagarde played down recession risk in the euro zone and said that the central bank is ready to lift rates higher if inflation continues to accelerate but stressed gradual approach in tackling the price increases.
"We are also seeing signs that the supply shocks hitting the economy could linger for longer.
While it is reasonable to assume that global supply chain disruptions will gradually be resolved, the outlook for energy and commodities remains clouded," Lagarde added at the ECB Forum in Sintra, Portugal.
"The appropriate monetary policy stance has to incorporate our principles of gradualism and optionality." Lagarde highlighted the central bank's approach.
The DAX index increased 0.97% to 13,314.60, the CAC-40 index gained 1.3% to 6,128.01, and the FTSE 100 index advanced 1.4% to 7,355.09.
Crude oil advanced 1.8% and traded $117.10 a barrel as economic activities resume in China after Shanghai and other regions in the country eased coronavirus mobility and social gathering restrictions.
BP Plc and Shell Plc gained more than 3% after crude oil prices rebounded.
Consumer confidence in Germany dropped to a new low and in France declined for the sixth month in a row.
Consumer confidence forecast for July declined to 27.4 from the revised 26.2 in June and dropped to a record low since record keeping began in 1991, private market research group GfK said on Tuesday.
Consumer sentiment in France declined for the sixth month in a row and dropped to a nine-month low.
The index declined to 82 in June from 85 in May, the statistical office Insee reported on Tuesday in Paris.
Volkswagen increased 1.7% to 141.06 euros after the company is nearing an agreement to sell its electric vehicle charging business to a unit of Siemens. The news was first reported by the Wall Street Journal.
Petrofac Limited gained 3.0% to 122.70 pence after the energy services provider said revenues at its Asset Solutions division are running ahead of expectations on higher levels of new orders.
Valeo SE gained 2.7% to 19.83 euros after the auto parts maker won a contract from BMW to provide an advanced driving assistance system for its electric vehicle scheduled to be released in 2025.
Akzo Nobel declined 3.4% to 63.30 euros and the Dutch chemical company named Gregoire Poux-Guillaume as its new chief executive.
Movers: Altria, AutoZone, Coinbase, Chewy, Digital World, Etsy, Spirit Air, Walgreens
Barry Adams
27 Jun, 2022
New York City
Altria Group jumped as much as 0.5% to $43.80 after the cigarette maker won a temporary stay on the FDA ban on its e-cigarettes products.
AutoZone, Inc rose 1.0% to $2,179.35 after Goldman Sachs lifted its rating on the stock to "buy" from "neutral" and said auto parts sales are driven by market needs and demand is relatively inelastic even during the economic slowdown or a recession.
Chewy Inc gained 0.4% to $38.38 after Needham lifted its stock rating to "buy" from "hold" citing improving supply chain challenges and the recent price increases are not deterring customers.
Coinbase Global declined 9.9% to $56.45 after Goldman Sachs lowered its rating on the stock to "sell" from "sell" and cited persistent decline in cryptocurrencies prices and falling trading activities in the asset class.
Digital World Acquisition Corp plunged 9.2% to $25.28 after the SPAC in a regulatory filing said that ongoing investigation regarding its business combination faced more legal hurdles.
The company linked with the former president Donald Trump said that the investigation may impede or delay the business combination with Trump Media and Technology Group.
The company and its board of directors have received several subpoenas from a federal grand jury sitting in the Southern District of New York.
Oil patch stocks staged a rebound after crude oil prices rose 1.5%.
Futures of crude oil gained $1.83 to $109.45 a barrel and natural gas edged up a fraction to $6.23 a unit.
The Ukraine war is likely to persist well into 2023 as neither Russia nor Ukraine are discussing peaceful settlement.
Energy prices are likely to remain higher on the expectations of a long war combined with the slow rebound in manufacturing activities in China.
Ukraine's elevation to the European Union candidacy status is seen more as a signaling step rather than accession to the union in the near future.
Albania and Turkey have the EU candidacy status for nearly two decades with no clear deadline.
Devon Energy rose 6.8% to $57.42, Valero gained 6.3% to $110.30, Occidental Petroleum advanced 3.9% to $59.77, EOG Resources advanced 3.9% to $114.78, and Exxon Mobil increased 3.1% to $89.56.
Spirit Airlines declined 7.8% to $22.65 after the company recommended shareholders to accept the revised offer from Frontier.
Frontier after the market close on Friday increased its cash component of the offer by $2 to $4.13 a share and included its reverse termination fee to $450 million from $250 million and matched the fees proposed in JetBlue's offer.
Over the weekend, the proxy advisory firm Institutional Shareholder Services joined Glass, Lewis, & Company and recommended merger with Frontier over Jetblue.
Frontier Group Holdings declined 11.4% to $9.35.
Etsy declined 4.8% to $79.57 and the online platform operator extended this year's loss to 62.2% after Needham analyst Anna Andreeva lowered her views on the stock citing near term challenges because elevated inventories in the retail sector may impact Etsy's value proposition less compelling.
Walgreens Boots Alliance rose as much as 1% to $41.98 after the India-based Reliance Industries is actively arranging $8 billion financing to fund the purchase of its U.K.-based Boots drug store chain.
Durable Goods Orders In May Rise, April Data Revised Higher
Brian Turner
27 Jun, 2022
New York City
New orders for durable goods rose 0.7% in May after rising 0.4% in April, the Commerce Department said on Monday.
The orders increased in seven of the last eight months.
Excluding volatile transportation orders, durable goods orders rose 0.7% after rising 0.2% in April.
Shipment of durable goods increased 1.3% in May after rising 0.3% in April, an increase in twelve of the last thirteen months.
Inventories of manufactured durable goods in May increased sixteen consecutive months.
Inventories increased $2.7 billion or 0.6% to $482.7 billion followed a 0.9% rise in April.
The Commerce Department revised April orders, shipments, and unfilled orders higher but inventories lower.
April new orders were revised higher to $534.8 billion from $533.2 billion; shipments to $534.3 billion from $532.1 billion; unfilled orders were lowered to $1,106.1 billion from $1,106.8 billion and total inventories to $787.9 billion from $786.1 billion.
U.S. Stocks Waver, Oil Price Rebound Likely to Persist
Barry Adams
27 Jun, 2022
New York City
U.S. stocks traded sideways in early trading after a week of strong gains following steep declines in the last four months.
The popular indexes are likely to close the first-half with double-digit losses, the worst decline since 1971.
The S&P 500 index added 0.1% to 3,916.17 and the Nasdaq Composite index declined 0.08% to 11,597.81.
In subdued trading stocks braved to climb higher fighting the worries of looming economic slowdown or a recession and potential rate hikes.
New orders for durable goods rose 0.7% in May after rising 0.4% in April, the Commerce Department said on Monday.
Excluding volatile transportation orders, durable goods orders rose 0.7% after rising 0.2% in April.
Futures of crude oil gained $1.83 to $109.45 a barrel and natural gas edged up a fraction to $6.23 a unit.
The Ukraine war is likely to persist well into 2023 as neither Russia nor Ukraine are discussing peaceful settlement.
Energy prices are likely to remain higher on the expectations of a long a war combined with the slow rebound in manufacturing activities in China.
Ukraine's elevation to the European Union candidacy status is seen more as a signaling step rather than accession to the union in the near future.
Albania and Turkey have the EU candidacy status for nearly two decades with no clear deadline.
The yield on 10-year U.S. Treasury notes edged up a fraction to 3.175% despite the cooling expectations of faster rate hikes next month.
On the earnings front, Nike is scheduled to release earnings after the market close today followed by results later in the week from Walgreens, Constellation Brands, General Mills, and Bed Bath & Beyond.
European Markets Lose Early Momentum
European markets advanced in volatile trading and commodities prices traded higher on the expectations of rising demand from China.
The indexes in the region traded at a two-week high on the easing of aggressive rate hike worries.
The U.S. dollar edged lower and one euro fetched $1.0556.
The DAX index increased 0.6% to 13,197.61, the CAC 40 index declined 0.3% to 6,055.47, and the FTSE 100 index advanced 0.5% to 7,244.03.
The indexes opened sharply higher following a surge in New York in Friday's trading and the S&P 500 index closed up more than 3%.
European markets began to lose momentum after the first 45 minutes of trading in Frankfurt, Paris, and London.
Higher commodities prices kept the positive market sentiment in check and the elevated wholesale prices also affected the market sentiment.
Spain's producer price index in May soared 43.6% in May following 44.5% in April, the statistical office INE reported on Monday.
Finland's producer prices accelerated in May to 31.7% after rising at 29.2% in April, according to data from Statistics Finland on Monday.
Norway's retail sales fell 8.8% in May on an annual basis after adjusting for seasonality factors and faster than 2.4% decline in April, Statistics Norway reported today.
Commodities stocks led the gainers in European trading.
Antofagasta, Angle American, and Glencore advanced between 1% and 2%.
BP Plc and Shell Plc added more than 1%.
Intesa Sanpaolo jumped 1.4% after the bank received an approval from the supervisory committee of the European Central Bank to buy back 3.4 billion euros of its own shares.
Sandvik AB closed up 3.2% to 172.95 Swedish kroner after the company agreed to acquire Portugal-based Frezigest, SGPS.
Prosus NV soared 13.8% to 60.36 euros after the company said it plans to sell its $134 billion stake in China-based Tencent, the parent of Wechat.
Asian Markets Close at 2-week High
Markets in Asia closed higher tracking the gains in the U.S. markets.
The Nikkei index soared after tech stocks led the gainers and Softbank soared 3.7 and. ship builders closed higher.
Indexes in China advanced after profits of large industrial companies declined less than expected in May 6.5% after falling at 8.5% in April, the National Bureau of Statistics said on Monday.
The Nikkei index increased 1.4% to 26,871.27, the Hang Seng index soared 2.4% to 22,229.52, and the Sensex index advanced 0.8% to 53,161.28.
The yen near two-decade low and one U.S. dollar fetched 135.45 and record high 78.45 rupees.
European Markets Lose Early Momentum
Bridgette Randall
27 Jun, 2022
New York City
European markets advanced in volatile trading and commodities prices traded higher on the expectations of rising demand from China.
The indexes in the region traded at a two-week high on the easing of aggressive rate hike worries.
The DAX index increased 0.6% to 13,197.61, the CAC 40 index declined 0.3% to 6,055.47, and the FTSE 100 index advanced 0.5% to 7,244.03.
The indexes opened sharply higher following a surge in New York in Friday's trading and the S&P 500 index closed up more than 3%.
European markets began to lose momentum after the first 45 minutes of trading in Frankfurt, Paris, and London.
Higher commodities prices kept the positive market sentiment in check and the elevated wholesale prices also affected the market sentiment.
Spain's producer price index in May soared 43.6% in May following 44.5% in April, the statistical office INE reported on Monday.
Finland's producer prices accelerated in May to 31.7% after rising at 29.2% in April, according to data from Statistics Finland on Monday.
Norway's retail sales fell 8.8% in May on an annual basis after adjusting for seasonality factors and faster than 2.4% decline in April, Statistics Norway reported today.
Commodities stocks led the gainers in European trading.
Antofagasta, Angle American, and Glencore advanced between 1% and 2%.
BP Plc and Shell Plc added more than 1%.
Intesa Sanpaolo jumped 1.4% after the bank received an approval from the supervisory committee of the European Central Bank to buy back 3.4 billion euros of its own shares.
Sandvik AB closed up 3.2% to 172.95 Swedish kroner after the company agreed to acquire Portugal-based Frezigest, SGPS.
Prosus NV soared 13.8% to 60.36 euros after the company said it plans to sell its $134 billion stake in China-based Tencent, the parent of Wechat.
Asian Markets Close at 2-week High
Markets in Asia closed higher tracking the gains in the U.S. markets.
The Nikkei index soared after tech stocks led the gainers and Softbank soared 3.7 and. ship builders closed higher.
Indexes in China advanced after large industrial companies in declined less than expected in May 6.5% after falling at 8.5% in April, the National Bureau of Statistics said on Monday.
The Nikkei index increased 1.4% to 26,871.27, the Hang Seng index soared 2.4% to 22,229.52, and the Sensex index advanced 0.8% to 53,161.28.
Best One-Day Gain In S&P 500 In Two Years
Barry Adams
24 Jun, 2022
New York City
U.S. stocks rebounded and extended weekly gains after rate expectations cooled and bargain hunters searched for beaten down stocks.
The S&P 500 added 6.5% and the Nasdaq advanced 7.5% and the major averages logged second weekly rise in the last twelve weeks.
The indexes gained more than 1% on Tuesday, Thursday, and Friday and the S&P 500 registered its best one-day gain since May 2020 and the index is likely to deliver its worst first-half performance since 1970.
The index of consumer sentiment declined to 50.0 in June, a decline of 14.4% from May and 41.5% from a year ago, according to the index publisher University of Michigan.
The consumer sentiment dropped to the lowest level on record.
"Consumers across income, age, education, geographic region, political affiliation, stockholding and homeownership status all posted large declines.
About 79% of consumers expected bad times in the year ahead for business conditions, the highest since 2009," said consumer surveys director Joanne Hsu.
Traders bid up stocks after consumer inflation expectations for the year were significantly lower than the latest inflation rate of 8.6%.
The inflation expectation of 5.3% was unchanged from the previous month but long run inflation expectations declined to 3.1% from 3.3% in the previous month.
The Fed Chairman Powell stressed how critical it is to tame inflation in his testimony to lawmakers on the second day of his testimony yesterday.
ZenDesk Signs $10.2 Billion Deal With a Buyout Group
Scott Peters
24 Jun, 2022
New York City
ZenDesk soared 28.3% to $78.33 after the customer service software firm agreed to go private through a all-cash $10.2 billion deal with a group of private equity investors.
The investor group includes Hellman & Friedman and Permira, the investor group includes a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and GIC.
Under the terms, Zendesk shareholders will receive $77.50 per share, reflecting a premium of approximately 34% over Zendesk
Movers: CarMax, Carnival Cruise, FedEx, LendingTree, Microsoft, ZenDesk
Barry Adams
24 Jun, 2022
New York City
Stocks on Friday extended weekly gains after the release of consumer sentiment data and popular indexes are set to close the week on a higher note.
The S&P 500 and the Nasdaq are set to extended weekly gains over 5% and close up for the second time in thirteen weeks.
The S&P 500 increased 2.4% to 3,887.83 and the Nasdaq Composite advanced 2.5% to 11,509.20.
CarMax, Inc increased 6.6% to $97.65 after the used-auto retailer said fiscal 2023 first quarter revenues ending in May increased 21.0% to $9.3 billion.
Used vehicle sales declined 11.0% to 240,950 units and wholesale sales increased 2.7% to 186,307 units.
Average selling price of a used vehicle increased 28.0% to $28,844 and for wholesale vehicles soared 51.0% to $10,996.
Net earnings plunged to $252.2 million or $1.56 a share from $436.8 million or $2.63 a share a year ago.
Carnival Cruise Lines said revenues in the second quarter ending in May jumped to $2.4 billion and net loss declined to $1.84 billion from $2.1 billion a year ago.
Diluted loss per share fell to $1.61 a share from $1.83 a year ago.
Revenues in the second quarter increased 50% from the first quarter and occupancy jumped to 69% from 54% in the period.
The bookings in the second quarter for future sailings were nearly double the bookings in the first quarter, the best quarterly booking volumes since the beginning of the pandemic.
Cruise operators traded higher after Carnival Cruise reported its best quarterly booking since the start of the pandemic two years ago.
Carnival Cruise jumped 9.7% to $10.59, Royal Caribbean Cruises advanced 13.6% to $41.0, and Norwegian Cruise jumped 12.0% to $12.84.
Federal Express advanced 6.9% to $242.85 after the parcel delivery company said revenues in the fourth quarter ending in May increased 7.9% to $24.4 billion.
Net income plunged to $558 million or $2.13 a share from $1.87 billion or $6.88 a share a year ago.
In the fiscal year 2022, the company earned $3.83 billion or $14.33 a share compared to $5.23 billion or $19.45 a year ago.
The parcel delivery company held out for higher earnings per share in the fiscal 2023.
LendingTree Inc declined 9.5% to $49.65 after the company lowered its outlook in a regulatory filing yesterday.
The mortgage lending company lowered its fiscal year 2022 second quarter ending June revenue estimate to between $259 million and $264 million from the previous range between $283 million and $293 million.
" We have seen the most significant impact in our Home segment as mortgage rates have nearly doubled over the last six months, causing a sharp decline in refinance volumes and more recent pressure on purchase activity.
Although our Insurance segment continues to rebound from the trough in 4Q 2021, the recovery has been slower than expected as demand from our carrier partners remains volatile as premium increases continue to chase inflation," said Chief Financial Officer Trent Ziegler.
Microsoft Corp gained 2.3% to $264.81 after positive comments and a recommendation by Citi.
The brokerage arm of Citigroup named Microsoft as its "top pick" and said that the broker has high conviction in the company's long term pricing power. The news was first reported by CNBC.
ZenDesk soared 28.3% to $78.33 after the customer service software firm agreed to go private through a $10.2 billion deal with a group of private equity investors including Hellman & Friedman and Permira, the investor group includes a wholly-owned subsidiary of the Abu Dhabi Investment Authority (ADIA), and GIC.
Under the terms, Zendesk shareholders will receive $77.50 per share, reflecting a premium of approximately 34% over Zendesk
S&P 500 Jumps 2% On Lower Rate Expectations
Barry Adams
24 Jun, 2022
New York City
Stocks on Friday extended weekly gains after the release of consumer sentiment data and popular indexes are set to close the week on a higher note.
The S&P 500 and the Nasdaq are set to extended weekly gains over 5% and close up for the second time in thirteen weeks.
The index of consumer sentiment declined to 50.0 in June, a decline of 14.4% from May and 41.5% from a year ago, according to the index publisher University of Michigan.
The consumer sentiment dropped to the lowest level on record.
"Consumers across income, age, education, geographic region, political affiliation, stockholding and homeownership status all posted large declines.
About 79% of consumers expected bad times in the year ahead for business conditions, the highest since 2009," said consumer surveys director Joanne Hsu.
Traders bid up stocks after consumer inflation expectations for the year were significantly lower than the latest inflation rate of 8.6%.
The inflation expectation of 5.3% was unchanged from the previous month but long run inflation expectations declined to 3.1% from 3.3% in the previous month.
The Fed Chairman Powell stressed how critical it is to tame inflation in his testimony to lawmakers on the second day of his testimony yesterday.
Movers: Ferguson, Lamprell, Saipem, Ultra, Zalando, Zurich Insurance
Bridgette Randall
24 Jun, 2022
New York City
The DAX index rose 1.8% to 13,946.58, the CAC-40 index advanced 3.2% to 6,069.13, and the FTSE 100 index increased 2.5% to 7,191.66.
Ferguson Plc increased 5.5% to 9,210 pence after the plumbing and heating products distributor commenced its stock buy back for 375 million pounds between June 24 and October 10 through affiliates of JP Morgan.
The current plan is a continuation of its $2 billion share repurchase program authorized by shareholders to buyback 22.186 million shares, the company said in a filing with the SEC.
The company also said it plans to request an additional share repurchase program at its next annual meeting to be held in November or December.
Lamprell Plc dropped 78.2% to 4.75 pence on the liquidity worries.
Saipem SpA plunged 19.7% to 24.34 euros after the oil and gas contractor said its finances will be exhausted by the end of the first quarter 2020 if the company fails to raise capital.
TUI AG declined 3.6% to 1.70 euros after the CEO of the German tourism and travel company abruptly resigned.
Ultra Electronics jumped 12.3% after 3,448 pence after Cobham Limited received a regulatory approval to takeover the company for 35 pounds a share or 2.6 billion pounds.
Zalando SE dropped as much as 15% before recovering to a decline of 1.4% to 25.19 euros after the German online fashion retailer trimmed its annual outlook citing weak consumer confidence and macro headwinds.
Zurich Insurance Group gained 3.9% to 417.10 Swiss franc after the insurance company agreed to sell its legacy life insurance business in Germany to Viridium Holding AG.