Major Averages Surge 3% as Global Markets Surge

Barry Adams
04 Oct, 2022
New York City

Stock rally picked up pace and extended tow-day gains not seen since 2020. 

Market sentiment improved after the number of job openings declined to 10.1 million in August from a downwardly revised 11.2 million in July, the U.S. Census Bureau reported Tuesday. 

The job openings are still near the record 11.9 million in March, but the slight easing of the data also contributed to positive sentiment. 

Market mood improved on the hopes that the Federal Reserve may slow future rate hikes and may even pause as the U.S. rate hikes are stoking worldwide commodities inflation and currency market chaos. 

The British pound, the Japanese yen and the euro have dropped at least 20% in the last six months, since the Federal Reserve began its aggressive rate hike in March.  

Tensions also receded after Credit Suisse executives reassured investors over the weekend that the investment bank has sufficient liquidity. 

The S&P 500 index jumped 3.06% to 3,790.93 and the Nasdaq Composite index surged 3.3% to 11,176.41. 

The two-day rally lifts the benchmark S&P 500 index by 5.7% after dropping 9% in September and extending its year-to-date loss to 25%. 

The VIX index, a measure of market volatility, declined 5% after investors focused on searching bargains among the recently beaten down stocks. 

Crude oil increased $2.45 to $86.06 a barrel and natural gas increased 35 cents to $6.81 a thermal unit. 

The yield on 2-year notes decreased to 4.11%, 10-year notes fell to 3.63% and 30-year bonds eased to 3.70%. 

 

Poshmark Agrees to $1.2 Billion Deal from Korea-based Naver 

Poshmark Inc soared 13.2% to $17.64 after the online retailer agreed to be acquired by South Korea-based Naver for $1.2 billion in an all-cash deal. 

The operator of social commerce platform has a significant following among teenagers looking to sell used fashion and accessories items. 

 

U.S. Movers: Cruise Liner, Big Oil, Rivian, Tesla, Twitter 

Energy complex stocks led the gainers after crude oil prices extended two-week gains to 14%. 

Exxon Mobil, Chevron, Hess Corp and Schlumberger jumped nearly 4%. 

Cruise companies rebounded following a surge in travel and leisure stocks. 

Carnival Cruise soared 12.7% to $7.72, Norwegian Cruise Line surged 16.2% to $13.25 and Royal Caribbean Cruises Ltd jumped 15.4% to $43.40. 

Rivian Automotive Inc jumped 12.6% to $35.92 after the electric vehicle maker said third quarter production surged 67% from the previous quarter. 

Rivian said it produced 7,363 and shipped 6,584 vehicles in the third quarter  

The company also said it is on track to meet its lowered annual production target of 25,000 announced in March. 

Rivian had originally set its annual production target of 50,000. 

Tesla Inc rebounded 2.6% to $248.72 after the company dropped more than 8% in Monday's trading after releasing third quarter production and shipments. 

The company produced 365,923 and shipped 343,830 electric vehicles, lower than estimated by investors. 

Twitter Inc soared 12.6% to $47.93 after Elon Musk proposed to continue with the original offer of $54.20 a share proposed on April 25, 2022 and complete the purchase of social media platform. 

Twitter released the proposal in an regulatory filing with the SEC. 

 

European Markets Surge Nearly 4% 

European markets accelerated gains following the surge in New York and Australia lifted its rate by a smaller amount. 

Investors increased exposure to stocks after bond yield eased across the euro zone and mood improved after the U.S. job openings fell in August, easing the pressure on the Fed to lift rates faster. 

In addition, the natural gas prices eased in Europe trading and dropped to a ten-week low. 

Brent crude oil price in London rose 2.7% to $91.32 a barrel and TTF natural gas prices declined 4.7% to 161.95 euros a megawatt hour. 

The DAX index increased 3.7% to 12,670.49, the CAC-40 index soared 4.2% to 6,039.69 and the FTSE 100 index gained 2.6% to 7,086.46. 

The euro rebounded and moved further away from a 20-year low to 99.87 U.S. cents and the British pound jumped to $1.147. 

The yield on 10-year German government bonds eased to 1.885% and British Gilts dropped to 3.876%. 

The Italian 10-year bond yields also improved to 4.18% from the 10-year high of 4.5% in the end of September.  

The Reserve Bank of Australia lifts its key lending rate by 25 basis points, smaller-than-expected 50 basis points. 

The RBA revised its key lending rate to 2.60% from 2.35% and added that additional rates are required to bring down inflation back to its target range between 2% and 3%. 

 

Europe Movers: Sika, Metropole, Made.com Group, Holcim 

Holcim AG increased 3.9% to 42.84 Swiss francs after the cement building materials maker said it has completed the purchase of Polymers Sealants of North America, a division of Illinois Tool works Inc. 

PSNA is expected to have 2022 revenues of $100 million. 

Last week, Holcim completed the acquisition of Belgium-based   Cantillana, a specialty building solutions provider with an estimated 2022 revenue of 80 million euros.

Sika AG gained 6.1% to 21.420 Swiss francs after the chemical maker said 2022 sales and operating earnings (EBIT) in local currencies are expected to rise 15%.   

The company also confirmed it is on track to complete its acquisition of MBCC Group and has received unconditional approvals in South Africa, China, Brazil, Japan, Thailand, Turkey and Saudi Arabia. 

Metropole Television SA plunged 10.8% to 11.10 euros after RTL Group controlled by Bertelsmann dropped its plan to sell a controlling stake in the company. 

Legal & General Group Plc added 5.3% to 233.68 pence after the financial services provider reassured investors about the financial health of the company.  

Made.com Group Plc soared 39.8% to 4.74 pence after the troubled online furniture retailer " has now entered in to non-disclosure agreements and begun discussions with a number of interested parties regarding the sale of the Group."

The company also said in a regulatory filing that the management plan implementation is estimated to require "