Global Markets In Holding Pattern, FTC Seeks to Block Activision Deal

Barry Adams
08 Dec, 2022
New York City

Benchmark indexes opened higher and spent the session in positive territory after volatile trading and investors reacted to corporate news and awaited the Fed decision next week. 

Investors are anticipating the Federal Reserve to moderate rate hike after a two-day meeting on Thursday December 14th and consumer price inflation data on Tuesday December 13th. 

The Consumer price index increase slowed to an annual pace of 7.7% and monthly pace was unchanged at 0.4% in October and investors are hoping to see more moderation in price increases in November. 

The S&P 500 index increased 0.8% to 3,963.51 and the Nasdaq Composite index advanced 1.1% to 11,082.00. 

 

FTC Sues to Block Largest Microsoft Acquisition  

The Federal Trade Commission is seeking to block Microsoft's $69 billion acquisition of Activision Blizzard. 

The U.S. government agency is alleging that the purchase would enable the tech giant in suppressing competition for its Xbox game console and further enhance its subscription business to the detriment of other console operators. 

Separately, the Pentagon awarded cloud computing contracts worth $9 billion to Amazon, Microsoft, Oracle and Google. 

 

Crude Oil Rebounds, Gasoline at One-year Low 

The unleaded gasoline price at pump stations fell to $3.329 a gallon, below the $3.343 price a year ago despite geopolitical tensions in Europe and OPEC+ production cuts, AAA said Thursday.

Crude oil fell 11 cents to $71.96 a barrel and natural gas increased 20 cents to $5.92 a thermal unit. 

 

Treasury Yields Stay Near 2-month Low  

The U.S. Treasury note yields inched higher but traded near 2-month lows and the spread between 2-year and 10-year debt held at 0.8 percentage points. 

The yield on 2-year Treasury notes increased to 4.31%, 10-year Treasury notes inched up to 3.47% and 30-year Treasury bonds edged up to 3.43%. 

 

Weekly Jobless Claims Rise 

Initial jobless claims increased to 230,000 and continuing claims rose 62,000 to 1.67 million for the week ending November 26, the U.S. Department of Labor said Thursday.

Continuing claims increased for the eighth week in a row and the claims were the largest since early February. 

 

U.S. Stock Movers 

GameStop Corp increased 8.4% to $24.13 after the game console retailer said fiscal third quarter revenue fell 8.5% to $1.18 billion and net loss shrank to $94.7 million from $105.4 million and diluted loss per share fell to 31 cents from 35 cents a year ago.

In the quarter, cash flow from operating activities swung to $177 million from outflow of $293.7 million a year ago reflecting lower investment in inventories.  

Ciena Corporation soared 19.4% to $51.64 after the telecom gear maker said revenue in the fiscal fourth quarter fell 6.8% to $971 million and net income plunged to $57.6 million from $103.5 million or 39 cents to from 66 cents a year ago.

Express, Inc soared 31.2% to $1.28 after the company said revenue in the fiscal third quarter declined 8% to $434.1 million and net loss increased to $34.4 million from $13.1 million or 50 cents per share from 90 cents a year ago.

The company also amended and increased its revolving credit facility by $40 million to $290 million and expanded the term loan facility by $50 million to $140 million.  

The struggling retailer and WHM Global also struck an intellectual property partnership and WHM plans to invest $235 million for a 60% stake. 

WHM also agreed to acquire 5.4 million shares of the company priced at $4.60 a share, representing pro forma 7.4% stake in the company. 

 

European Markets Deepen 5-day Losses, Rate Worries In Focus  

European markets closed down and investors assessed the health of business in an economic slowdown environment, rising rates and stretched consumer budgets. 

Investors also reviewed the latest comments from the ECB president Christine Lagarde focused on systemic risks arising from the decentralized financial systems linked with cryptocurrencies. 

"Crypto-assets are exceptionally volatile and pose considerable risks to consumers.

After peaking in November 2021, the price of Bitcoin fell by almost 75% in the space of a year. And only last month we saw the chaotic collapse of FTX, a crypto-asset exchange once valued at $32 billion," highlighted Lagarde. 

 

Czech Unemployment Stable 

The Czech Republic's unemployment was stable at 3.5% in November for the second month in a row after edging up by 0.1 percentage point in September, data from the labor office showed Thursday. 

 

Ireland's Inflation Inches Lower 

Ireland's consumer price inflation declined in November but stayed above 5.0% for the fourteenth month in a row, the Central Statistics Office said Thursday. 

The consumer price index declined to an annual pace of 8.9% in November after rising at 9.2% in October. 

On a monthly basis, consumer prices rose 0.3%. 

 

Hungary's Inflation Accelerates, Trade Deficit Widens 

Hungary's consumer prices accelerated in November driven by higher food prices and rising costs of utilities. 

Consumer price inflation increased 22.5% in November from a year ago following 21.1% in October, the Hungarian Central Statistical Office showed on Thursday.

On a monthly basis, consumer price eased to 1.8% after rising at 2.0% in October. 

Trade deficit jumped to