Market Update
European Markets Advance, Retail Sales Fall, Wholesale Inflation Rises
Bridgette Randall
03 Aug, 2022
New York City
European markets advanced and investors looked beyond the rising tensions between the U.S. and China after House Speaker Nancy Pelosi concluded her visit to Taiwan.
Eurozone retail sales unexpectedly declined in June as higher prices and surging inflation weighed on consumer spending.
Eurozone retail sales volume declined 3.7% from a year ago and fell 1.2% from the previous month in June, according to the report released by the eurostat Wednesday.
A separate report from the statistics office showed producer prices remained elevated in June.
Producer prices surged 35.8% from a year ago and slowed from 36.2% in May. On a monthly basis, the prices rose 1.1% from May.
The wholesale prices surged after energy prices surged 92.8%and excluding energy, producer price inflation eased to 15.6% from 16.0% a month ago.
The DAX index gained 1.03% to 13,587.58, the CAC-40 index increased 0.97% to 6,472.06, and the FTSE 100 index added 0.49% to 7,445.68.
June Manufactured Goods Orders Rose 2%
Brian Turner
03 Aug, 2022
New York City
Orders for manufactured goods rose in June and marked the thirteenth increase in the last fourteen months.
June goods orders rose 2.0% to $555.2 billion, the U.S. Census Bureau reported today.
Orders in June rose following the revised 1.8% increase in May.
Shipments increased $6.3 billion or 1.1% to $551.9 billion following 2.1% in May.
Shipments rose in twenty five of the last twenty six months.
Unfilled orders increased $8.3 billion or 0.7% to $1,118.0 billion following a 0.3% increase in May.
Unfilled orders rose for the twenty two consecutive months in a row.
Inventories increased $3.3 billion or 0.4% to $801.5 billion following a 1.3% increase in May.
Last week, the bureau reported durable goods orders rose 1.9% in June to $272.6 billion, up eight of the last nine months.
Robinhood's Assets Under Custody, Active Users, and Revenues Fell
Scott Peters
03 Aug, 2022
New York City
Robinhood Markets Inc increased 13% to $10.42 after the online brokerage for stocks, derivatives, and crypto-currencies said it plans to layoff 23% of its staff, after cutting its staff by 9% in April.
Second quarter revenues declined 44% to $318 million from $565 million and net loss shrank 44% to $295 million from $502 million a year ago.
Diluted loss per share fell to 34 cents from $2.16 a year ago.
On a sequential basis, monthly active users declined 1.9 million to 14.0 million and assets under custody plunged 31% to $64.2 billion but average revenues per user increased to $56 from $53.
PayPal Swings to Quarterly Loss
Scott Peters
03 Aug, 2022
New York City
PayPal Holdings increased 9.6% to $98.30 after the payment processing company posted better-than-expected earnings and revised its outlook.
PayPal said second quarter revenues increased 9% to $6.8 billion and said total payment volume on its platform increased 9% to $339.8 billion from a year ago.
PayPal swung to a quarterly loss of $341 million or 29 cents a diluted share from $1.2 billion or $1.00 a diluted share a year ago.
Free cash flow increased 22% to $1.3 billion from $1.1 billion a year ago.
The company guided full-year 2022 revenues to increase 10% to $27.8 billion and total payment volume to jump 12% on spot basis to $1.4 trillion.
PayPal estimates 2022 earnings per share to fall between $1.52 and $1.62.
PayPal added 400,000 net new accounts in the quarter increasing its total active accounts 6% to 429 million and transaction processed increased 16% to 5.5 billion.
Payments processed per active account increased 12% to 48.7 in the last twelve months.
Expeditors International Sees No End of Supply Disruptions Soon
Scott Peters
03 Aug, 2022
New York City
Expeditors International rose 0.8% to $103.05 after the company said second quarter revenues increased 28% to $4.6 billion.
Net income rose 19% to $378 million from $316.3 million and diluted earnings per share increased 23% to $2.27 from $1.84 a year ago.
The company guided current supply chain disruptions and logistics at ports, ocean freight shipping duration, and available air cargo capacity to improve despite the slowing down in the global economy.
"We do not see signs that these conditions are likely to improve significantly any time soon.
The unpredictability of COVID restrictions and lockdowns in China, as well as route restrictions and sanctions from the Ukraine conflict, continue to make global shipping a highly challenging business right now," said Bradley S. Powell, Senior Vice President and Chief Financial Officer.
AMD Net Income Plunges 37% Despite Record Quarterly Revenues
Scott Peters
03 Aug, 2022
New York City
Advanced Micro Devices, Inc fell 3.2% to $96.17 after the semiconductor chipmaker said revenues in the second quarter increased 70% to $6.55 billion and gross margin declined to 46% from 48% a year ago.
Net income in the second quarter decreased 37% to $447 million from $710 million a year ago and diluted earnings per share fell 53% to 27 cents from 58 cents in the period.
AMD reported eighth record quarterly revenues in a row.
For the third quarter, AMD expects revenues to rise 55% from a year ago to $6.7 billion with a band of $200 million.
For the full-year revenues are expected to rise 60% to $26.3 billion with a band of $300 million.
Movers: AMD, Airbnb, Expeditors International, Match Group, PayPal, Robinhood Markets, Starbucks
Barry Adams
03 Aug, 2022
New York City
Stocks on Wall Street gained for the second day in a row and investors looked beyond the recent tensions between the U.S. and China.
Stocks reacted to corporate earnings amid the worries of economic slowdown and steady drumbeat of Fed officials reiterating the central bank's commitment in lowering inflation to its target rate of 2%.
The S&P 500 index added 0.7% to 4,121.72 and the Nasdaq Composite index advanced 1.5% to 12,528.20.
Futures of crude oil increased 19 cents to $94.61 and natural gas rose a fraction to $7.70 a thermal unit.
AMD fell 3.2% to $96.17 after the semiconductor chipmaker said revenues in the second quarter increased 70% to $6.55 billion and gross margin declined to 46% from 48% a year ago.
Net income in the second quarter decreased 37% to $447 million from $710 million a year ago and diluted earnings per share fell 53% to 27 cents from 58 cents in the period.
AMD reported eighth record quarterly revenues in a row.
For the third quarter, AMD expects revenues to rise 55% from a year ago to $6.7 billion with a band of $200 million and for the full-year revenues to rise 60% to $26.3 billion with a band of $300 million.
Airbnb Inc declined 5.5% to $109.88 after the vacation home rental booking platform said second quarter revenues jumped 58% to $2.1 billion.
Airbnb swung to a profit of $379 million from a loss of $68 million in the year-ago quarter.
The weaker-than-expected revenues disappointed investors despite Airbnb booking 103 million nights and experiences in the quarter.
Expeditors International rose 0.8% to $103.05 after the company said second quarter revenues increased 28% to $4.6 billion.
Net income rose 19% to $378 million from $316.3 million and diluted earnings per share increased 23% to $2.27 from $1.84 a year ago.
The company guided current supply chain disruptions and logistics at ports, ocean freight shipping duration, and available air cargo capacity to improve despite the slowing down in the global economy.
"We do not see signs that these conditions are likely to improve significantly any time soon.
The unpredictability of COVID restrictions and lockdowns in China, as well as route restrictions and sanctions from the Ukraine conflict, continue to make global shipping a highly challenging business right now," said Bradley S. Powell, Senior Vice President and Chief Financial Officer.
Match Group Inc plunged 20.9% to $60.67 after the online dating site operator reported weaker-than-expected revenues of $795 million in its latest quarter.
The dating app operator also guided weaker revenues between $790 million and $800 million and adjusted earnings in the current quarter.
The number of paid users increased 10% to 16.4 million with the average subscriber paying 3% more to $15.86.
PayPal Holdings increased 9.6% to $98.30 after the payment processing company posted better-than-expected earnings and revised its outlook.
PayPal said second quarter revenues increased 9% to $6.8 billion and said total payment volume on its platform increased 9% to $339.8 billion from a year ago.
PayPal swung to a quarterly loss of $341 million or 29 cents a diluted share from $1.2 billion or $1.00 a diluted share a year ago.
Free cash flow increased 22% to $1.3 billion from $1.1 billion a year ago.
The company guided full-year 2022 revenues to increase 10% to $27.8 billion and total payment volume to jump 12% on spot basis to $1.4 trillion.
PayPal estimates 2022 earnings per share to fall between $1.52 and $1.62.
PayPal added 400,000 net new accounts in the quarter increasing its total active accounts 6% to 429 million and transaction processed increased 16% to 5.5 billion.
Payments processed per active account increased 12% to 48.7 in the last twelve months.
Robinhood Markets Inc increased 13% to $10.42 after the online brokerage for stocks, derivatives, and crypto-currencies said it plans to layoff 23% of its staff, after cutting its staff by 9% in April.
Second quarter revenues declined 44% to $318 million from $565 million and net loss shrank 44% to $295 million from $502 million a year ago.
Diluted loss per share fell to 34 cents from $2.16 a year ago.
On a sequential basis, monthly active users declined 1.9 million to 14.0 million and assets under custody plunged 31% to $64.2 billion but average revenues per user increased to $56 from $53.
Starbucks Corporation increased 1.5% to $85.0 and the coffee chain operator said fiscal third-quarter revenues increased 9% to $8.15 billion.
Net income fell to $912.9 million or 79 cents a share from $1.5 billion or 97 cents a share on higher wages and rising costs of raw materials.
U.S. same store sales increased 9% driven by larger order size and 1% increase in traffic. The coffee chain also said customers are not trading down or reducing their spending.
Stocks Advance with Earnings In Focus
Barry Adams
03 Aug, 2022
New York City
Stocks on Wall Street gained for the second day in a row and investors looked beyond the recent tensions between the U.S. and China.
Stocks reacted to corporate earnings amid the worries of economic slowdown and steady drumbeat of Fed officials reiterating the central bank's commitment in lowering inflation to its target rate of 2%.
The S&P 500 index added 0.7% to 4,121.72 and the Nasdaq Composite index advanced 1.5% to 12,528.20.
Futures of crude oil increased 19 cents to $94.61 and natural gas rose a fraction to $7.70 a thermal unit.
Starbucks Corporation increased 1.5% to $85.0 and the coffee chain operator said fiscal third-quarter revenues increased 9% to $8.15 billion.
Net income fell to $912.9 million or 79 cents a share from $1.5 billion or 97 cents a share on higher wages and rising costs of raw materials.
U.S. same store sales increased 9% driven by larger order size and 1% increase in traffic. The coffee chain also said customers are not trading down or reducing their spending.
Match Group Inc plunged 20.9% to $60.67 after the online dating site operator reported weaker-than-expected revenues of $795 million in its latest quarter.
The dating app operator also guided weaker revenues between $790 million and $800 million and adjusted earnings in the current quarter.
The number of paid users increased 10% to 16.4 million with the average subscriber paying 3% more to $15.86.
Airbnb Inc declined 5.5% to $109.88 after the vacation home rental booking platform said second quarter revenues jumped 58% to $2.1 billion.
Airbnb swung to a profit of $379 million from a loss of $68 million in the year-ago quarter.
The weaker-than-expected revenues disappointed investors despite Airbnb booking 103 million nights and experiences in the quarter.
Eurozone Retail Sales Fall, PPI Soar
European markets advanced and investors looked beyond the rising tensions between the U.S. and China after House Speaker Nancy Pelosi concluded her visit to Taiwan.
Eurozone retail sales unexpectedly declined in June as higher prices and surging inflation weighed on consumer spending.
Eurozone retail sales volume declined 3.7% from a year ago and fell 1.2% from the previous month in June, according to the report released by the eurostat Wednesday.
A separate report from the statistics office showed producer prices remained elevated in June.
Producer prices surged 35.8% from a year ago and slowed from 36.2% in May. On a monthly basis, the prices rose 1.1% from May.
The wholesale prices surged after energy prices surged 92.8%and excluding energy, producer price inflation eased to 15.6% from 16.0% a month ago.
The DAX index gained 0.4% to 13,507.98, the CAC-40 index increased 0.7% to 6,455.96, and the FTSE 100 index added 0.4% to 7,435.21.
Uber Mobility and Delivery Segments Revenues Surge
Scott Peters
02 Aug, 2022
New York City
Uber Technologies Inc rose 17.1% to $28.81 after the ride hailing platform said it turned cash flow positive for the first time.
Uber said gross bookings increased 33% from a year ago to $29.1 billion and revenues soared 105% to $8.1 billion.
Mobility segment revenues rose 120% to $3.55 billion, delivery segment revenues surged 43% to $2.7 billion, and freight revenues including a recent acquisition jumped six-fold to $1.8 billion.
Revenues in the U.S. and Canada jumped 149% to $4.9 billion and in Europe including the Middle East and Africa rose 99% to $1.9 billion.
Revenues in Latin America soared 57% to $481 million and in Asia Pacific jumped 14% to $810 million.
Uber swung to a quarterly loss of $2.6 billion or $1.33 a diluted share driven in part by investment losses of $1.7 billion.
Net loss includes a pre-tax mark-to-market write down of investments by $1.7 billion relating to Uber
ZoomInfo Lifts Annual Revenue Guidance
Scott Peters
02 Aug, 2022
New York City
ZoomInfo Technologies Inc soared 10.9% to $41.88 after the business information provider lifted its full-year guidance.
Second quarter revenues increased 54% to $267.1 million and net income declined to $15.9 million or 4 cents a diluted share from $24.5 million or 5 cents a diluted a year ago.
ZoomInfo revised full-year 2022 revenues to between $1.08 billion and $1.09 billion from the previous estimate between $1.06 billion and $1.07 billion.
For the full-year, adjusted operating income estimated is revised higher between $433 million and $437 million from the previous estimate between $418 million and $424 million.
Simon Property Reported Flat Revenue Growth and Hiked Dividend
Scott Peters
02 Aug, 2022
New York City
Simon Property Group fell 1.1% to $107.11 after the largest mall operators reported second quarter revenues edged up to $1.27 billion from $1.25 billion a year ago.
Net income in the quarter declined to $569 million or $1.51 a diluted share from $706 million or $1.88 a diluted share a year ago.
The occupancy at the U.S. malls and premium outlets increased to 93.9% at the end of June quarter from 91.8% a year ago.
Base minimum rent per square foot was $54.58 at the end of June.
The company increased its quarterly dividend by 25 cents from a year ago to $1.75 a share payable on September 30, 2022 to shareholders of record on September 9, 2022.
Avis Budget Net Income Soars On Travel Rebound
Scott Peters
02 Aug, 2022
New York City
Avis Budget Group, Inc fell 7.6% to $167.83 after the car rental company said second quarter revenues rose 37% to $3.2 billion and net income soared 94% to $774 million from a year ago.
Diluted earnings per share rose to $15.94 from $5.90 a year ago.
The U.S. segment revenues rose 30% to $2.6 billion and international revenues surged 71% to $677 million from a year ago.
Average daily rental revenue increased 9% in constant currency to $78.19 and vehicle fleet expanded 32% to 500,653 units from a year ago.
Advertised Job Openings Dropped to a 9-month Low
Brian Turner
02 Aug, 2022
New York City
Job openings at the end of June declined 605,000 to 10.7 million or fell 6.6%, the Job Openings and Labor Turnover Survey released by the Bureau of Labor Statistics noted Tuesday.
Retail trade led the decline with 343,000 fewer postings followed by 82,000 in wholesale trade, and 62,000 in local and state government education.
Hires and total separations were little changed at 6.4 million and 5.9 million respectively.
Global Markets On Edge After U.S. China Tensions Rise
Barry Adams
02 Aug, 2022
New York City
Benchmark indexes struggled to find their footing and closed down at the end of a choppy session.
Job openings at the end of June declined 605,000 to 10.7 million or fell 6.6%, the Job Openings and Labor Turnover Survey reported Tuesday.
Retail trade led the decline with 343,000 fewer postings followed by 82,000 in wholesale trade, and 62,000 in local and state government education.
Hires and total separations were little changed at 6.4 million and 5.9 million respectively.
The S&P 500 index decreased 27.34 or 0.7% to 4,091.10 and the Nasdaq Composite index fell 0.2% or 20.22 to 12,348.76.
Futures of crude oil rose 25 cents to $94.18 a barrel and natural gas fell 62 cents to $7.65 a unit.
The yield on 10-year U.S. Treasury notes edged up a fraction to 2.75% after tensions between the U.S. and China rose ahead of House Speaker Nancy Pelosi's visit to Taiwan.
Caterpillar fell 5.8% to $183.51 after the heavy equipment maker reported slightly lower than expected quarterly revenues because of its exit from Russia.
Uber Technologies Inc rose 18.9% to $29.25 after the ride hailing platform said it turned cash flow positive for the first time.
Uber said gross bookings increased 33% from a year ago to $29.1 billion and revenues soared 105% to $8.1 billion and swung to a quarterly loss of $2.6 billion or $1.33 a diluted share driven in part by investment losses of $1.7 billion.
Pinterest Inc rose 12.2% to $22.31 after the photo sharing platform said second quarter revenues increased 9% to $665.9 million and swung to a net loss of $43 million from net income of $69 million a year ago.
Pinterest's global active monthly users declined 5% from a year ago to 433 million.
The stock jumped after the activist investor Elliott Management confirmed that it is the largest shareholder in the company.
Cowen Inc increased 8.4% to $38.46 after the company agreed to be acquired by Toronto Dominion Bank for $39 a share or $1.3 billion in cash.
European Markets Trend Lower, AP Moller, BP, Generali In Focus
European markets traded lower on the worries that the rising tensions between the U.S. and China may spillover in the new round of trade war.
The DAX index declined 0.2% to 13,449.20, the CAC-40 index fell 0.4% to 6,409.80, and the FTSE 100 index eased 0.05% to 7,409.11.
A.P. Moller-Maersk increased 2.9 to 13.96 euros after the Danish shipping company raised its full-year guidance for underlying operating profits to about $31 billon from the previous estimate of $24 billion.
Assicurazioni Generali SpA fell 1.9% to 14.60 euros despite the largest Italian insurance company said it has met all its target set in its strategic plan for the next two years.
BP Plc gained 3.6% to 406.40 pence after the the British oil exploration company increased its dividend and expanded its stock buyback after the company reported its best quarterly results in 14 years.
Man Group Plc plunged 9.9% to 241.24 pence after the U.K.-based asset management company reported its first decline in assets under management in more than two years.
Asian Markets Ease On China-U.S. Tensions
In Asia, benchmark indexes traded lower after the U.S.-China tensions rose ahead of the U.S. House Speaker Nancy Pelosi's visit later in the day.
The Nikkei 225 index declined 1.4% to 27,594.73, the Hang Seng index dropped 2.4% to 19,689,51, and the Sensex index edged up a fraction to 58,136.36.
European Markets Ease, Generali, Man Group, BP In Focus
Bridgette Randall
02 Aug, 2022
Frankfurt
European markets traded lower on the worries that the rising tensions between the U.S. and China may spillover in the new round of trade war.
The DAX index declined 0.2% to 13,449.20, the CAC-40 index fell 0.4% to 6,409.80, and the FTSE 100 index eased 0.05% to 7,409.11.
A.P. Moller-Maersk increased 2.9% to 13.96 euros after the Danish shipping company raised its full-year guidance for underlying operating profits to about $31 billon from the previous estimate of $24 billion.
Assicurazioni Generali SpA fell 1.9% to 14.60 euros despite the largest Italian insurance company said it has met all its target set in its strategic plan for the next two years.
BP Plc gained 3.6% to 406.40 pence after the the British oil exploration company increased its dividend and expanded its stock buyback after the company reported its best quarterly results in 14 years.
Man Group Plc plunged 9.9% to 241.24 pence after the U.K.-based asset management company reported its first decline in assets under management in more than two years.