U.S. Daily Market Review
2023-02-28 12:36UTC
U.S. Daily Market ReviewStocks futures jumped today as the markets are focused on the final trading day of February. The Dow Jones Industrial Average is also in red.The S&P-500 gained 0.3% and the Nasdaq Composite soared 0.5%.Despite a good start of 2023, the leading are into a trend for their second falling side month in three.U.S. payment giants Visa (V.N) and Mastercard (MA.N) are slamming the brakes on plans for new partnerships with crypto firms.Zoom Video advanced close to 6.5% on strong earnings.Target rallied 1.3% after the retailer declared its latest quarterly figures.Target shares added around 1% in early trading after the company announced earnings per share for the fiscal fourth quarter was $1.89, coming above the forecasts of $1.40.U.S. consumer confidence tumbled for the second straight month in February. This is the case as the economy lost additional ground.The Conference Board's latest Consumer Confidence Index released fell to 102.9 for this month, falling from 106.0 in January.
Oil Prices Advanced
2023-02-28 08:22UTC
Oil prices added some ground during the Asian hours, boosted by estimates of a solid economic rebound in China will drive up fuel demand.This is offsetting the fears over additional U.S. interest rate rises, which could negatively impact oil demand levels.Presently, oil trades at $76.344, which is another addition of $0.625 or 0.83% from the previous close of $75.719.Brent crude futures for April, due to expire on Tuesday, secured 35 cents to $82.84 per barrel. Forecasts of demand recovery in China underpinned rallies.The concerns of possible U.S. rate surged following greater than predicted orders for core U.S.-manufactured capital goods in January.The markets are focused on the U.S. oil stocks data due from the American Petroleum Institute industry group on Tuesday and the government's Energy Information Administration coming out later tomorrow.
European Daily Market Review
2023-02-28 08:20UTC
European markets are into a lower side, stalling the rising path, registered at the very beginning of the week.European shares are red, with UK's Ocado sinking after a weaker than predicted full-year retreat.The German DAX fell 0.33%, the French CAC-40 dropped 0.41% and FTSE-100 lost 0.55%.The pan-European Stoxx 600 entered into a massive trend during yesterday’s session.Natural gas prices in Europe have tumbled close to 40% in the first two months of the year.Benchmark futures increased slightly on Tuesday, but still headed for a monthly drop of more than 15%. In reality, gas prices have been dropping for the whole quarter. Inflation on U.K. groceries jumped over17% in the month to Feb. 19. A quarter of Brits surveyed said have been experiencing financial difficulties.Inflation data in France advanced by a whole 7.2% from a year ago in February as food and services costs jumped largely.
Asian Daily Market Review
2023-02-28 02:14UTC
Investor sentiment across Asia is mostly positive heading
into the final trading session for February. Markets are broadly higher, following
on a winning overnight session on Wall Street. There’s a slew of economic data
due out across the region on Tuesday, however profit-taking and squaring up
positions for the month-end could have the greatest impact on markets today.
Japan’s Nikkei is trading 0.5% higher as the Yen holds above
the 136.00 level versus the U.S. dollar. Shares of Softbank Group are 1.1%
higher today, and Sony shares are adding 0.7%. Among the major exporters shares
of Toyota are gaining by 0.4%, Panasonic is edging higher by 0.1%, but Canon shares
are falling by 0.7%.
In Australia the S&P/ASX 200 is trading 0.5% higher
today, with the big four banks mixed and little changed. Shares of ANZ are
lower by 0.2%, and both Commonwealth Bank and Westpac are heading 0.4% lower, while
NAB is gaining 0.3%. The major miners are helping support the broader market
today, with BHP higher by 1% and Rio Tinto advancing by 1.4%.
Mainland Chinese markets are rising from the open as well,
with the benchmark Shanghai Composite adding 0.3% and the smaller cap Shenzhen
Composite trading 0.5% higher. Over in Hong Kong the Hang Seng is tacking on
0.7%.
In South Korea the Kospi is 1.1% higher, while the Taiex in
Taiwan is closed as the country celebrates Peace Day.
Southeast Asian markets are adding to the positive sentiment
in the region, with the Straits Times Index in Singapore adding 0.4%, while the
KLCI in Malaysia is slightly higher by less than 0.1%.
Seagen Shares Rocket Higher On Potential Pfizer Takeover News
2023-02-27 21:11UTC
Biotech pharmaceutical company Seagen saw its shares rocket
higher by 10.4% on Monday on news that it is in acquisition talks with
pharmaceutical giant Pfizer. According to the reports the talks are in very
early stages and could fall apart, but if true this could be quite a big deal.
Seagen already has a market capitalization of $30 billion, and can be expected
to command a premium well above that level.
An acquisition of Seagen by Pfizer could help the company
beef up its cancer treatment portfolio. This would help stave off billions of
dollars in lost revenues in the coming years as Pfizer will have a number of
its key products lose their patent status. Seagen is a pioneer in a class of
cancer treatment drugs called antibody drug conjugates (ADCs), that work by
directly targeting tumors, dropping toxic chemicals at the tumor site and
minimizing damage to healthy tissue.
This is not the first time that Seagen has been a takeover
target recently. In the summer of 2022 it was reported that Merck was targeting
Seagen as a takeover. Rumors at the time had the deal valued at $200 a share. Seagen
shares traded as high as $183 a share on the rumors, but by December shares had
dropped back to the $120 level as no deal had materialized.
One hurdle that will need to be overcome is antitrust
concerns. It’s likely that the antitrust review of any deal by Pfizer to
acquire Seagen would be quite stringent, however the only direct overlap is in
bladder cancer treatments.
Pfizer shares fell by 2.3% on the news, hitting a new 52-week
low for the stock.
Seagen shares are up 38.8% in 2023 and are just 10% off
their all-time high.
U.S. Daily Market Review
2023-02-27 16:28UTC
The main U.S. stocks are into a higher side today as traders tried to recover some ground following the worst week of the year on Wall Street. In fact, US stocks advanced after falling to their worst week in 2023.The Dow Jones Industrial Average soared 117 points, or 0.4%. The S&P-500 inclined 0.6%, and the Nasdaq Composite gained 0.8%.Treasury yields jumped to its peak mark since July 2007. Shares of Union Pacific Corp (UNP.N) soared around 10% in early trade on Monday, just a session after the U.S. railroad operator declared that its Chief Executive Lance Fritz would resign from his office.First lady Jill Biden indicated that President Joe Biden would run for reelection in 2024. Under Armour stock prices had fallen by over 45% over the past year to $9.72 per Class A share. Meanwhile, the rival Nike dropped by 13.56% in the same span.
European Daily Market Review
2023-02-27 09:09UTC
The main European markets entered into a higher side this morning, after marking their steepest loss of the year so far last week.The pan-European Stoxx-600 soared 0.98% in early trade with all sectors in the green. Retailers boosted European shares higher on Monday, after their worst weekly performance.The German DAX surged 1.25%, the French CAC-40 inclined 1.33% and FTSE-100 rallied 0.80%.UK's FTSE-100 soared and entered into recovery from last week's battering on concerns over high U.S. interest rates.The European Central Bank has declared that it intends to raise rates by another 50 basis points in March.Commerzbank shares jumped in early trade after the Germany bank rejoined the country’s DAX blue-chip stock index.Airbus SE estimates the Pacific region to take delivery of 920 planes in the next 20 years.The demand includes about 750 single-aisle jets and about 170 bigger planes, as reported by the Airbus company.
Gold Prices Into Weak Positions
2023-02-27 08:52UTC
Gold prices are still without a clear market direction, moving around a two-month bottom.This is the result of fears over massive U.S. inflation and a hawkish response from the Federal Reserve.Now, gold trades at $1811.32, which is a minor recovery of $0.87 or 0.05% from the previous close of $1810.45.The daily trading range is from $1806.53 to 1814.09, while the trading volume is 92.761K.Bullion prices dropped last week after a series of hawkish signals from the Fed. The USD is close to seven-week peak versus the main pairs. This makes the greenback more attractive compared to non-yielding assets such as the yellow metal.Meanwhile, 10-year Treasury yields were now eyeing a move past the 4% level - and were at their highest point since early-November. In the meantime, Platinum futures added 0.5% to $912.65 an ounce.Silver futures retreated 0.2% to $20.895 an ounce.
Asian Daily Market Review
2023-02-27 02:26UTC
Asian markets are trending lower to start the week following
a drop this past Friday on Wall Street. The fact that inflation is remaining
stubbornly high has market participants repricing assets in expectations for
central banks to continue raising interest rates for longer than previously
thought, and to higher levels than expected.
Japan’s Nikkei is edging slightly lower by 0.1%, with the
Yen falling by more than 1% against the U.S. dollar, which is providing some
support for equities. Shares of Softbank Group are falling by 1.7%, but Sony
shares are holding on to a 0.4% gain. Among the major exporters Toyota is
slightly higher by less than 0.1%, while Panasonic adds 1.1% and Canon tacks on
1.2%.
In Australia the S&P/ASX 200 is falling by 1.1% to lead
losses for the region. Despite the losses for the broader market, the big four
banks are holding up well. Shares of NAB and Commonwealth Bank are 0.3% higher,
Westpac is advancing by 0.4%, and ANZ is edging higher by less than 0.1%.
Meanwhile the major miners are pressuring the broader market, with BHP falling
2.4% and Rio Tinto tracking lower by 2.5%.
Mainland Chinese markets opened to gains, but have since
turned lower. The benchmark Shanghai Composite is flat and flirting with
negative territory, while the smaller cap Shenzhen Composite trades 0.4% lower.
In Hong Kong the Hang Seng has also given back early gains to trade 0.2% lower.
In South Korea the Kospi is down by 0.9%, and in Taiwan the
Taiex has a 0.7% loss.
Southeast Asian markets are lower today as well, with the
Straits Times Index in Singapore and the KLCI in Malaysia trading lower by 0.3%
each.
Moderna Shares Sink On Weak Sales Forecast
2023-02-25 14:33UTC
Shares of Moderna slid 5.6% lower on Friday after the
company lowered its expectations for sales by nearly $3 billion, citing slowing
sales of its COVID vaccines, which are its only product. After the lowered
forecast Moderna is expecting $5 billion in sales of its COVID vaccines for
2023 based on existing contracts. The company did say that additional sales
could come from key markets.
The forecast differed significantly from Wall Street
expectations, which were calling for $7.96 billion in sales, which includes
$7.37 billion in revenue from the COVID vaccine.
Making the situation even worse is the fact that Moderna is
expecting the majority of sales in the second half of 2023. Moderna is
expecting $2 billion in sales in the first half of the year, but analysts were
projecting sales of $3 billion in the first half.
Wall Street estimates will need to be significantly lowered,
particularly if demand beyond the sales agreements already in place wanes more
than expected, which is a risk given that the majority of sales are being
projected for the second half of the year.
Financials for the fourth quarter were also disappointing.
While sales came in above expectations at $5.08 billion, they also declined by
29.5%. Analysts had been looking for revenues of $5.02 billion. Earnings were
$3.61 a share, well below analyst’s estimates of $4.60 a share and 68% below
the same quarter last year.
Some analysts noted that the earnings number shouldn’t come
as a surprise as sales of the COVID vaccine slow and Moderna continues to
invest heavily into research and development.
The biggest hope for Moderna is in its RSV vaccine, which
could get FDA approval as early as the first half of 2023. The market for RSV
vaccines exceeds $10 billion.
U.S. Daily Market Review
2023-02-24 14:16UTC
U.S. stocks largely dropped today after the Federal Reserve’s preferred inflation gauge showed larger than predicted jumping prices.The Dow Jones Industrial Average slipped 390 points, or 1.2%. The S&P-500 lost 1.2% and fell 1.6%The Dow tumbled close to 510 points, or 1.54%, earlier today.Boeing shares retreated 4% after the company temporarily halted delivery of its 787 Dreamliners over a fuselage issue. Shares of Microsoft and Home Depot each retreated 1%. Sales of new US homes boosted in January by more than forecasts of the greatest mark in nearly a year.Purchases of new single-family homes gained more than 7% on annual basis of 670,000 rate after an upwardly revised 625,000 in December.U.S. consumer spending rallied by the most of the last two years in January amid a surge in wage surges.
European Daily Market Review
2023-02-24 10:35UTC
The main European markets advanced today as investors chew over company data releases.European shares were boosted by solid earning results from French giant Saint-Gobain and Sweden's Elekta.The pan-European Stoxx 600 inclined 0.3% in mid-morning trade. The German economy dropped around 0.4% in the fourth quarter last year.The German DAX fell 0.13%, the French CAC-40 added 0.08% and FTSE-100 soared 0.32%.European gas further added to the rising path for a third day as cold weather is predicted in western parts next week.Compagnie de Saint-Gobain and Rolls-Royce also added to the rising mode after coming over analyst forecasts in results yesterday.Credit Suisse Group AG reduced payouts on a 3.25 billion Swiss franc ($3.5 billion) real estate fund.In fact, the Credit Suisse Real Estate Fund International’s net asset value could retreat around 10%.At the bottom of European stocks, chemicals giant BASF sunk 5.5% after the report it will reduce 2,600 jobs and halt share buybacks amid earnings losses.
Oil Prices Advacned
2023-02-24 07:59UTC
Oil prices advanced today and were close to trading on a higher note for the week as the possibility of greater than predicted losses in Russian supplies largely offset concerns.Presently, oil trades at $75.946, which is another rise of $0.322 or 0.43% from the previous close of $75.624.The daily trading range is from $75.504 to 76.476, while the trading volume is 23.474K.Crude prices marked a strong recovery from drops implied in that Russia plans to reduce around to 25% of oil exports from its western ports in March.There are some concerns over slowing crude demand weighed on oil prices this week.The USD added some side, which resulted in some negative pressures on the crude markets.Oil prices are trading fell on annual basis amid consistent issues over a possible global recession this year.Still, oil is into great positions amid the possibility of recovery in Chinese demand after the world’s largest oil importer relaxed most anti-COVID measures earlier this year.
Asian Daily Market Review
2023-02-24 02:08UTC
Markets are mixed across Asia on Friday as investors in the
region are uninspired by the overnight gains on Wall Street. Eyes are on Japan,
where the latest inflation figures are due, and where close attention is being
paid to the confirmation hearings for incoming Bank of Japan Governor Kazuo
Ueda. The importance of Ueda’s stance on monetary policy is critically
important for the world, since Japan holds trillions of dollars of other
countries debts, and a hawkish central bank could see some of that being called
in if repatriated.
Japan’s Nikkei is trading 1.2% higher, with the Yen
remaining range-bound versus the U.S. dollar. Shares of Softbank Group are trading
0.8% higher, while Sony shares are gaining 1.6%. Among the major exporters
Toyota is trading 0.4% lower, but Panasonic is rallying 1.2% higher and Canon
is adding 1%.
In Australia the S&P/ASX 200 is modestly higher by 0.2%,
with the big four banks contributing to the gains for the broader market.
Shares of ANZ are 0.2% higher, NAB is adding 0.4%, Commonwealth Bank is
outperforming with a 1% advance, and Westpac is flat, with a slight gain of
less than 0.1%. The major miners are weighing on the broader market however,
with BHP trading 1.2% lower and Rio Tinto shares falling 2.7%.
Mainland Chinese markets have opened to losses, with the
benchmark Shanghai Composite and the smaller cap Shenzhen Composite trading
0.2% lower. Over in Hong Kong the Hang Seng is leading losses for the region,
with a drop of 0.9%.
In South Korea the Kospi
is adding 0.2%, and in Taiwan the Taiex is also gaining 0.2%.
Southeast Asian markets are mixed, with the Straits Times
Index in Singapore 0.2% higher, while the KLCI in Malaysia is falling by 0.2%.
Nvidia Earnings Beat Sends Shares Rocketing Higher
2023-02-23 20:59UTC
Nvidia shares rocketed 14% higher on Thursday on the back
of Wall Street beating revenues and earnings, along with optimism for the
company as AI fever takes hold in the tech sector. The move had Nvidia at the
top of the S&P 500 and prompted a slew of analyst upgrades for the stock.
Revenues were reported as $6.05 billion for the quarter and
adjusted earnings came in at $0.88 a share. Wall Street expectations were for $0.80
a share in earnings on $6 billion in revenues.
Analysts responded to the earnings beat and solid growth in
the company’s data center business by issuing a number of upgrades. The data
center segment is home to Nvidia’s sales of artificial intelligence GPUs and it
grew by 11% in the fourth quarter. Over one dozen analysts reiterated their buy
rating on the stock or hiked their price target.
In the post earnings conference call Nvidia’s CEO Jensen
Huang played up the coming AI revolution and Nvidia’s solid position at the
forefront of what he called an “iPhone moment” earlier this year. “Generative
AI’s versatility and capability has triggered a sense of urgency at enterprises
around the world to develop and deploy AI strategies,” Huang said. AI technology
is expected to have a disruptive impact on chip technology and Nvidia’s
competitors. As a leader in the AI computing space, Nvidia is likely to
continue to benefit from this shift for years to come.
The earnings beat comes on the same day that Intel cut its
dividend by two-thirds, highlighting the shift in the technology industry and
chip making specifically.
Nvidia shares are now up by more than 60% since the start of
the year, making it one of the best performers in the S&P 500.
U.S. Daily Market Review
2023-02-23 13:05UTC
The main stocks added some side amid volatile trading as the market mode is still focused on the path of the Federal Reserve's rate hikes.The S&P-500 secured 0.53% to close at 4,012.32 and snap a four-day losing streak. The Dow Jones Industrial Average added 108.82 points, or 0.33%, closing at 33,153.91. The Nasdaq Composite soared over 0.70%, ending the session at 11,590.40.With the cost of food, rent and gas marching higher, the average American shelled out a lot more money in order to keep in hand with advancing inflation data.The normal U.S. household needed to pay $395 more a month in January to purchase the same goods and services it did last year. The Labor Department recently declared that the consumer price index gained 0.5% in January, the most in three months.
European Daily Market Review
2023-02-23 09:10UTC
The main European markets partly advanced this morning as investors digested minutes released by the U.S. Federal Reserve that seems like is willing to preserve raising its rates in order to fight against galloping inflation.The German DAX added 0.47%, the French CAC-40 inclined 0.19% and FTSE-100 lost 0.31%.The pan-European Stoxx-600 gained 0.27% earlier today.British aviation manufacturer Rolls-Royce sharply came over estimates after a surge of over 55% on annual basis.In reality, Rolls-Royce shares jumped close to 16% at 8:24 a.m. London time. The European Central Bank (ECB) announced zero profit for 2022.This comes amid tapping those reserves became necessary after asset purchase-related interest payments to the euro area’s national central banks rallied to about €2 billion ($2.1 billion).
The USD Dropped
2023-02-23 08:57UTC
The USD is into a lower side but is still close to its recent peak values after the minutes of the Federal Reserve's latest meeting.Presently, the Euro versus the USD trades at 1.0603 Euro, which is a very minor retreat of 0.00004 euro from the previous close of 1.06039 euro.The daily trading range is from 1.0602 to 1.0627, while the trading volume is 66.329K.The Dollar Index slipped 0.1% and but still moves around the six-week peak of 104.67 reached last week.The minutes from the Fed's February meeting declared the most of the officials supported the quarter-point increase because a lower rate toward reducing inflation to their 2% target. The annual figure in Europe could advance to 8.6%, from 8.5% versus the previous month, indicating in that inflation remains tricky to tame and thus the European Central Bank will remain into a tight mode for some time.
Asian Daily Market Review
2023-02-23 02:05UTC
Markets are trading mostly higher across the Asian region on
Thursday as investors digest the latest Federal Reserve meeting minutes, which
were released overnight and paint a picture of a central bank that’s committed
to continued rate hikes in order to combat inflation. The Asian gains come
after Wall Street took the news fairly well, with major indices recovering
after the release of the meeting minutes, although the S&P 500 and Dow
Industrials still ended the day in the red.
Japan’s Nikkei is unchanged as markets in Japan remain
closed on Thursday for the Emperor’s birthday. Trading will resume on Friday
and investors will have the chance to respond to the developments from the U.S.
Fed.
In Australia the S&P/ASX 200 is lower by 0.3%, with the
big four banks mixed. Shares of ANZ are 0.6% lower, NAB and Westpac are down by
0.4%, but Commonwealth Bank is offsetting some of the bank losses as it trades
0.9% higher. The major miners are putting solid pressure on the broader index
today as BHP shares plunge 3.3% lower and Rio Tinto shares fall by 2.5%.
Mainland Chinese markets have opened to solid gains today,
with the benchmark Shanghai Composite and the smaller cap Shenzhen Composite
each higher by 0.5%. Over in Hong Kong the Hang Seng is following the mainland’s
lead for the first time this week and trades 0.3% higher.
In South Korea the Kospi trades 1% higher and in Taiwan the
Taiex has a 0.9% gain.
Southeast Asian markets are mixed and little changed as the
Straits Times Index in Singapore edges lower by 0.2%, while the KLCI in
Malaysia is trading higher by less than 0.1%.
Oil Posts Losses On Inflation Worries
2023-02-22 20:50UTC
Oil prices fell to their
lowest level in two weeks as traders are discounting the reopening of China’s
positive impact on demand, focusing instead on the potential for continued
aggressive rate hikes from central banks that are expected to have a negative
impact on economic growth in the U.S.
Brent crude futures for April delivery were down $2.33, or
2.8%, to $80.72 a barrel, while West Texas Intermediate (WTI) crude futures
dropped by $2.31, or 3%, to $74.05 a barrel. It’s the lowest level for both
contracts since February 6, and the biggest daily drop for Brent crude since
January 4.
The catalyst for the drop was the release of the latest
Federal Reserve meeting minutes, which show a majority of Fed governors’ agree
that inflation remains a key factor in monetary policy decisions moving forward
into the second quarter. Markets took that to mean that interest rate hikes
will continue for some time until inflation can be brought under control.
The U.S. dollar also rallied on the news, putting additional
pressure on crude and other dollar-denominated commodities.
Analysts are expecting that the American Petroleum Institute
will report a rise in crude inventory levels in the U.S., giving traders a
further reason to sell crude.
Providing some support for oil is the outlook in the
European Union, which remains stronger than that in the U.S. There are also
reports that Russia is planning on reducing its crude exports from Western
ports by 25% in March.
Morgan Stanley gave a mixed picture on oil, raising its
global demand forecast for 2023 by 36%, but lowering its price target for crude
from the $100-110 range to a range of $90-100.
U.S. Daily Market Review
2023-02-22 15:19UTC
The main stocks are into a lower side as the market struggled to recover from its worst day on annual basis.The Dow Jones Industrial Average fell 20 points, or 0.1%. The S&P-500 and Nasdaq Composite both dropped 0.2%.Walmart and Cisco Systems lead the falling path.Shares of Palo Alto Networks popped 10.7% after the cybersecurity company boosted its earnings estimate for the year. The Fed minutes are due at 2 p.m. ET. Keysight Technologies tumbled almost 8% after reporting lower than predicted outlook for the fiscal second quarter. Keysight expects earnings per share to be in the range of $1.91 and $1.97 with revenue in the range of $1.37 billion to $1.39 billion.Greater bond yields also preserved the market on edge.The rate on the 10-year Treasury note jumped to its peak since November on daily basis.
European Daily Market Review
2023-02-22 08:13UTC
European markets lost some ground today as the markets are focused on coming minutes from the Fed’s meeting.The German DAX declined 0.80%, the French CAC-40 lost 0.94% and FTSE-100 dropped 1.20%.The pan-European Stoxx-600 tumbled 0.4% shortly after the open.Mining stocks slipped 1.3% and banks retreated 0.6%.Carmaker Stellantis declared full-year results, after marking a surge of 26% in net profit to 16.8 billion euros ($17.9 billion).The company represents a merger of Italian-American conglomerate Fiat Chrysler group and France’s PSA Group, reported net revenues jumped 18% to 179.6 billion euros.Danone’s revenue rallied at the fastest rate of the last 10 years, stimulated by higher prices on products from Activia yogurt to Evian water.Sales gained close to 8% on a like-for-like basis in 2022, as reported by the company. These results came in higher than initial predictions.
Gold Prices Into Massive Drops
2023-02-22 07:58UTC
Gold prices stands just little above a six-week bottom this morning.The markets are still cautious ahead of the minutes of the Federal Reserve’s February meeting.Now, gold trades at $1840.32, which is a rise of $5.35 or 0.29% from the previous close of $1834.97. The daily trading range is from $1834.03 to 1840.79, while the trading volume is 66.918K.The Fed is very likely to preserve its rising rates after greater than predicted inflation data for January. This results in a boost to the USD and creates in a negative pressure on the precious metals.The main focus this week is also on Thursday’s Personal Consumption Expenditures price index reading.Higher interest rates poorly affect non-yielding assets such as the yellow metals and other precious metals.In the meantime, Platinum added 0.1% to $945.95 an ounce.
Asian Daily Market Review
2023-02-22 03:09UTC
Asian
markets are falling broadly on Wednesday following significant overnight losses
on Wall Street as investors expect that U.S. interest rates will go higher than
previously expected and stay there for longer than anticipated as well. Tuesday’s
losses on Wall Street were sparked by a stronger than expected PMI reading,
which follows on the heels of a massive jump in new jobs for January and a
smaller than hoped for drop in inflation.
Japan’s
Nikkei is trading down by 1.3%, even though the Yen continues to soften versus
the U.S. dollar. Shares of Softbank Group are 1.6% lower, and Sony shares are
falling by 2%. Among the major exporters Toyota and Canon are each lower by
1.4% and Panasonic shares are trading 1.6% lower.
In
Australia the S&P/ASX 200 is 0.3% lower, with the big four banks mixed and
trying to support the broader market. Shares of ANZ are trading 0.9% higher,
and Commonwealth Bank is edging up by 0.1%, while NAB shares trade 0.3% lower
and Westpac is unchanged. The major miners are putting modest pressure on the
markets, with BHP inching lower by 0.1%, while Rio Tinto shares are falling by
0.7%.
Mainland
Chinese markets are just slightly lower from the open, with the benchmark
Shanghai Composite edging lower by less than 0.1%, while the smaller cap
Shenzhen Composite trades down by 0.2%. Over in Hong Kong the Hang Seng is once
again taking its own path and trades 0.3% higher.
In
South Korea the Kospi is down by 1.3% and in Taiwan the Taiex is losing 1.2%.
Southeast
Asian markets are lower today as well, with the KLCI in Malaysia down by 0.4%
and the Straits Times Index in Singapore edging lower by less than 0.1%.
Paypal Now Looks Like A Value Stock
2023-02-21 20:54UTC
After getting a bump higher last week on solid earnings,
shares of Paypal Holdings resumed their decline. However, the stock popped 0.8%
higher on Tuesday, landing near the top of the Nasdaq 100 as some are beginning
to see the stock as quite a bargain. Shares hit an all-time high of $309.48 in
July 2021, but have been trending lower since, and are more than 75% off that
all-time high. While the July 2021 high was propelled by increased online
spending by consumers during the pandemic, and was likely unjustified, so too
is the current price, which is near the levels seen in 2018.
As mentioned, Paypal was a huge winner during the pandemic,
as more and more consumers turned online for their purchases. The online
payments processor added 122 million new accounts, grew its revenues by 43%,
and reached payments transaction volumes over $1 trillion for the first time
ever.
However, the company may have gotten ahead of itself when it
set a goal in February 2021 to double its active accounts by 2025 to 750
million, while also doubling revenue and free cash flow.
As we know now, consumer behavior shifted back to the norm
as the pandemic fears waned, and that meant not only cuts to the optimistic
forecasts for Paypal, but also a 41% drop in earnings for the company in 2022.
The second quarter was particularly bad as Paypal reported a net loss for the
first time since 2014.
Now Paypal is back on the path to profitability after
cutting costs and focusing on high-margin opportunities rather than growing its
account numbers. The new focus is on growing the transactions per active
account, and that seems to be working as revenues jumped 7% and earnings were
up 14% in the fourth quarter.
U.S. Daily Market Review
2023-02-21 12:34UTC
The leading U.S. stocks are red amid rising rates continue to pressure market sentiment.The Dow Jones Industrial Average slipped 468 points, or 1.4%. The S&P-500 dropped 1.4%, and the Nasdaq Composite tumbled around 1.7%. Home Depot shares retreated 4.6% after the home improvement retailer posted lower than predicted revenues for the fourth quarter. General Mills Inc (GIS.N) boosted largely its annual organic sales and profit forecasts earlier today.There are predictions of higher rates amid strong demand for its snack bars and breakfast cereals.U.S. existing home sales moved into a lower gear for 12th consecutive month in January. This the result of soaring mortgage rates, and galloping inflation figures.Sales of previously owned homes lost 0.7% in January from the prior month to an annual rate of 4 million units, as reported by the data coming from the National Association of Realtors (NAR).
European Daily Market Review
2023-02-21 09:47UTC
European markets dropped as investors weigh up corporate earnings with the possibility of the Fed preserving its rates higher.European shares retreated amid cautious estimates from HSBC weighed down the benchmark STOXX 600 index.The German DAX fell 0.47%, the French CAC-40 lost 0.52% and FTSE-100 declined 0.27%.The pan-European Stoxx-600 index slipped 0.8% in early trade, with most sectors in the red. Tech stocks tumbled 1.8%, mining stocks fell 1.3%.UK's exporter-heavy FTSE-100 retreated, after HSBC bank came below initial estimates.Public sector net borrowing in the U.K. was in surplus for the month, coming in at £5.4 billion ($6.4 billion). That’s £5 billion more than expected by the independent Office for Budget Responsibility. Turkey’s gold imports from Switzerland jumped to its peak since at least 2012 in January as the country’s soaring inflation spurred demand for the yellow metal.The rouble depreciated today despite higher demand for the currency ahead of month-end tax payments.
Gold Prices Tumbled
2023-02-21 08:41UTC
Gold prices are largely in red just above six-week bottoms this morning. The markets are relative quite in anticipation of additional clues from the minutes of the Fed’s meeting.Now, gold trades at $1831.78, which is another loss of $9.52 or 0.52% from the previous close of $1841.30.The daily trading range is from $1831.01 to 1843.66, while the trading volume is 82.246K.Gold and other metal markets were into limited ranges with U.S. markets closed for a holiday on Monday.Greater than predicted U.S. inflation readings swiftly came short of the recent advances in gold prices.Solid inflation figures, coupled with signs of strength in the jobs market, gives the Fed enough reasons to preserve boosting the rates.This could result in higher demand for the greenback and eventually reduced for the precious metals. A rally in U.S. Treasury yields and the dollar weighed heavily on non-yielding assets the yellow metal. In the meantime, Platinum futures soared 0.2% to $929.40 an ounce.Silver futures lost 0.2% to $21.780 an ounce.
Asian Daily Market Review
2023-02-21 02:22UTC
Asian markets are recovering Tuesday morning after a weak
start as investors continue to digest the probability of central banks
continuing their monetary policy tightening in order to combat inflation.
Meanwhile, there is some lingering optimism for Chinese equities after the
Chinese central bank kept its interest rates on hold yesterday. Markets were
closed overnight in the U.S. so there’s no guidance from Wall Street, but
trading volumes are returning to normal in Asia.
Japan’s Nikkei is trading 0.2% lower as investors there
await the latest Japanese flash PMI data, while the Yen remains stable versus the
U.S. dollar. Shares of Softbank Group are trading 0.6% lower, while Sony shares
are edging lower by 0.2%. Among the major exporters Toyota and Panasonic shares
are retreating by 0.3%, while shares of Canon are inching lower by 0.1%.
In Australia the S&P/ASX 200 is 0.3% lower as investors
there digest the latest flash PMI data, which shows increases for output and
business activity, while manufacturing PMI is flat. The big four banks are
trending solidly lower, with ANZ shares falling by 0.7%, NAB trading 0.9% lower,
Commonwealth Bank losing 0.7%, and Westpac shares dropping by 1.2%. The major
miners are mixed however, with BHP shares falling by 1.1%, while Rio Tinto
shares are advancing by 1.3%.
Mainland Chinese markets are higher at the open, with the
benchmark Shanghai Composite adding 0.3%, while the smaller cap Shenzhen
Composite trades 0.2% higher. Over in Hong Kong the Hang Seng is tracking lower
by 0.6%.
In South Korea the Kospi is advancing by 0.2%, but in Taiwan
the Taiex trades 0.3% lower.
Southeast Asian markets are slightly higher, with the KLCI
in Malaysia and the Straits Times Index in Singapore each edging higher by
0.1%.
Will Toll Brothers Deliver Another Earnings Beat?
2023-02-20 21:45UTC
Markets in the U.S. were closed on Monday for President’s
Day, but we can look ahead to Tuesday when home construction company Toll
Brothers is set to report on its fourth quarter financial results after the
markets close. The previous quarter for Toll Brothers was quite positive, with
the firm beating analyst’s estimates by 20.4% for earnings and 15.4% for
revenues, despite the downturn in the U.S. housing market. In addition, Toll
Brothers has exceeded analyst forecasts in 19 of the past 20 quarters.
For the coming quarter analysts are projecting Toll Brothers
earnings to come in at $1.37 a share, which would represent a 10.5% increase
over the same quarter a year ago. Revenues are projected to come in at $1.74
billion, a 2.7% increase from last year’s results.
Despite the higher revenues, the total number of homes
delivered is expected to decline, however this is being offset by higher
selling prices, and a trend towards existing home buyers upgrading to larger,
and more expensive houses. Toll Brothers has enjoyed better pricing power than
other homebuilders as the luxury home market has been less sensitive to current
economic conditions. The continuing lack of housing supply should also be a
contributing factor in the earnings report.
Recent earnings releases in the homebuilding sector have
been positive, with both Meritage and DR Horton topping analyst projections.
This bodes well for Toll Brothers results.
Recent analyst activity has also been positive. Oppenheimer
initiated coverage on the stock with an outperform rating, and Bank of America
upgraded Toll Brothers stock from neutral to buy. A number of firms have also
lifted their price targets for the stock.
Toll Brothers shares closed last Friday at $57.20, down 2.9%
for the day. Shares are up 14.6% since the start of 2023.
U.S. Daily Market Review
2023-02-20 13:00UTC
Тhe leading U.S. stocks ended the session without a clear direction as large inflation and a rebound in rates continued still created in a market pressure.The Dow Jones Industrial Average added 129.84 points, or 0.39%.The shares of Amgen and United Health rallied 2.70% and 2.40%, accordingly.Amazon pays its corporate employees a large chunk of their annual salaries in restricted stock units, but 2022's stock performance will mean salaries will slip between 15% and 50% lower this year.Despite the near 40% dip in share price the last 12 months, Amazon is rallying in 2023, moving approximately 13% higher year-to-date.Home Depot, Walmart and Etsy are expected to declare results next week.The Times was honored for its coverage of the war in Ukraine. In addition, for its reporting on private schools for Hasidic Jews in New York.
European Daily Market Review
2023-02-20 08:58UTC
The main European markets first started the session on a higher side with attention this week set to be on the publication of Federal Reserve meeting.The German DAX fell 0.01%, the French CAC-40 lost 0.11% and FTSE-100 dropped 0.01%. The pan-European Stoxx-600 index inclined 0.2% in early trade, with most into a rising mode.Telecom Italia (TIM) (TLIT.MI) shares tumbled around 3% in early trade on Monday. This comes as the government-sponsored offer rivalling KKR's bid for the former phone monopoly's prized grid failed to take place.French auto parts maker Faurecia emerged at the top of the index after rallying close to 5% after stating that would sell its SAS Cockpit Modules arm for 540 million euros ($577.5 million).Shares in Raiffeisen Bank International retreated around 7% after the bank declared that it had received a request for information from the United States' sanctions authority about its business related to Russia.
Oil Prices Advanced
2023-02-20 07:25UTC
Oil prices rallied today amid forecasts of higher demand coming from China. Now, oil trades at $ 77.009, which is a rise of $0.675 or 0.96% from the previous close of $76.334.The daily trading range is from $76.070 to 77.220, while the trading volume is 15.621K.Last week's reports that the U.S. will sell out 26 million barrels of crude oil from its Strategic Petroleum Reserves added some prices pressures resulted from the estimates of massive supply surges.In the meantime, the Organization of the Petroleum Exporting Countries (OPEC) and allies, OPEC+, last October decided to reduce oil production targets by 2 million barrels per day (bpd) until the end of 2023.Russia is expected to limit its oil production by 500,000 bpd, or around 5% of output, in March after the West imposed price caps on Russian oil products.China's oil imports are likely to reach an all-time high in 2023 due to largely surged demand.
Asian Daily Market Review
2023-02-20 02:09UTC
Asian markets are mixed, but mostly higher on Monday as
investors across the region weigh the implications of the greatest repricing of
U.S. interest rate expectations in decades. The massive shift in expectations
came in the wake of stronger than expected U.S. inflation and retail sales data.
Also in mind is the increase in tensions between the U.S. and China following
the spy balloon crisis. U.S. markets are closed Monday for President’s Day,
which is keeping trading somewhat muted across the region.
Japan’s Nikkei is flat, bouncing back and forth over
unchanged levels. Shares of Softbank Group are 0.7% lower and Sony shares are
falling 0.8%. Among the major exporters Toyota and Canon shares are unchanged,
while Panasonic is losing 1.3%.
In Australia the S&P/ASX 200 is edging higher by less
than 0.1%, with the big four banks helping support gains. Shares of ANX are
inching up by 0.1%, while NAB is 1.1% higher, Commonwealth Bank is adding 0.8%,
and Westpac is gaining 0.9%. The major miners are mixed, with BHP advancing by
0.9%, while Rio Tinto shares edge lower by less than 0.1%.
Mainland Chinese markets are higher at the open as the
benchmark Shanghai Composite rises by 0.6% and the smaller cap Shenzhen
Composite adds 0.2%. Over in Hong Kong the Hang Seng is bucking the rising
trend on the mainland with a slight loss of 0.1%.
In South Korea the Kospi is slightly higher by 0.1%, and in
Taiwan the Taiex is 0.3% higher.
Southeast Asian markets are falling today, with the KLCI in
Malaysia trading 0.2% lower and the Straits Times Index in Singapore falling by
0.4%.
Cryptocurrency Daily Market Review
2023-02-17 21:41UTC
Crypto markets have been staging a surprise rally in the
wake of the latest U.S. inflation reports. After rising on Wednesday and
Thursday it was thought markets might take a breather heading into the weekend,
but Friday saw more gains for the market, even as stocks retreated following
hawkish commentary from Federal Reserve officials.
Bitcoin (BTC), the largest cryptocurrency by market cap, was
up 1.2% for the day, holding well above the $24,000 level, but unable to
overtake $25,000 as the daily high was $24,924.04. Bitcoin is up 14.2% over the
past week. Ethereum (ETH), the second largest cryptocurrency by market cap, rose
by 1.7% on Friday to top the $1,700 level and is now 12.2% higher over the past
week.
In the top ten cryptocurrencies the best gain of the day was
a 7.6% advance from Polygon (MATIC). Cardano (ADA) was 2.3% higher, Ripple
added 1.4%, and Binance Coin (BNB), Dogecoin (DOGE), and Ripple (XRP) were each
1.3% higher on the day.
The best gain of the day in the top 100 tokens came from
Filecoin (FIL), as it rose 27.8% in anticipation ahead of the Filecoin Virtual
Machine (FVM) launch set for next month. Filecoin is a decentralized storage
system that aims to “store humanity’s most important information.”
The worst performance of the day came from ImmutableX (IMX)
as the token fell 6.9% despite the rally in the broader market. There was no
news for the project, rather the drop seemed to come on profit taking as the
IMX token was up 30% since Tuesday.
Overall it was a strongly bullish day as 85 of the top 100
tokens finished the day with gains.
Deere Shares Rocket Higher On Strong Profits
2023-02-17 20:59UTC
Heavy equipment manufacturer Deere & Co. rose to the top
of the S&P 500 on Friday, gaining 7.2% following a better than expected
fourth quarter earnings report. It’s the best one-day gain for the stock in two
years, and comes just one day after Deere shares closed at a three month low. Increased
spending from construction companies and strong demand for the companies high-powered
tractors from farmers may mean the rally has just begun.
Despite recession concerns, the company was able to maintain
strong profit margins, and has been able to raise prices on its line of
equipment, offsetting rising shipping costs and supply chain constraints.
Deere reported net income that more than doubled to $6.55 a
share, or $1.96 billion, from $2.92 a share, or $903 million reported in the
same quarter last year. Analysts had been expecting $5.57 a share in earnings.
Revenues were also impressive, coming in at $11.4 billion, a
jump of 33.7% versus last year, and above consensus estimates of $11.34
billion.
Production and precision agriculture sales posted the best
gain, rising by 55% over last year, while construction and forestry equipment
sales rose 26%. Even the small agriculture and turf sales, which were pointed
to as weak due to the drop in housing construction, rose 14%.
Investors were also encouraged by a boost in forward
guidance from the company. Deere raised its expectations for sales growth in production
and precision agricultural sales from a range of 15-20% to a solid 15%. It also
said construction and forestry equipment sales growth would remain at 10%.
With Friday’s gains Deere shares are up 8% since the start of
the year, versus the 5.8% gain for the S&P 500. The Industrial Select
Sector SPDR ETF is up by 4.6% over the same period.
U.S. Daily Market Review
2023-02-17 18:43UTC
U.S. markets are continuing
to slide on Friday following the release of hotter than expected economic data
and a packet of Fedspeak that points to a more hawkish tone for the central
bank moving forward. Also weighing on markets is a surging U.S. dollar, and
rising Treasury yields.
With afternoon trading well
underway on Wall Street the Dow Industrials are down by a modest 0.2%, but the
S&P 500 is trading 0.9% lower and the Nasdaq has a loss of 1.4%. Tech
shares are underperforming, leading to the drop in the tech-heavy Nasdaq.
Of the eleven S&P 500
subsectors, just four are trading higher today. The defensive utilities and
consumer staples are adding 0.9% and 0.7% respectively, while the healthcare and
industrial sectors are up by 0.3%.
The worst performing sector
by far today is the energy sector, which is trading 3.9% lower in response to a
nearly 4% slide in the price of crude oil. Technology is also underperforming
today on risk aversion, with the sector lower by 2%. Tech stalwart Intel is
trading 2.7% lower, while Microsoft falls 2% and Apple loses 1.7%.
The consumer discretionary
sector is lower by 1.1% as investors worry over the resiliency of the consumer
if rates continue to rise aggressively. The financial sector is holding up ok,
with a loss of 0.3% as the prospect of higher earnings from interest payments
offsets worries over slack demand for loans and institutional banking products
and services.
Rounding things out, the
materials sector is trading 1.3% lower, the communications services sector is down
by 1.1%, and the real estate sector has a 1% loss.
Heavy equipment maker Deere
& Co. is the big winner in the S&P 500 today, with shares up by 7.8%
after the company beat Wall Street expectations.
European Daily Market Review
2023-02-17 13:47UTC
European markets are trading lower on Friday as investors in
the region continue to digest the latest round of inflation data out of the
U.S. and U.K., while also mulling over corporate earnings reports.
The pan-European Stoxx Europe 600, the broadest measure of
European equities, is trading 0.4% lower, recovering modestly from a deeper
slide earlier in the day. The tech and oil & gas sectors are leading losses
for the region. In Germany the DAX is trading 0.6% lower, while France’s CAC 40
has a 0.4% loss. Italy’s FTSE MiB is down by 0.6%, and in Spain the IBEX 35 is
trading 0.3% lower.
Among the DAX components in Germany the greatest loss is
coming from insurer Allianz, with shares trading 2.5% lower. That’s followed by
a 2.3% slide in shares of semiconductor manufacturer Infineon. The best
performance on the index is a 2.8% advance for auto maker Daimler, followed by
a 1.5% increase in shares of fashion retailer Zalando.
The biggest losers today on the CAC 40 in France are
outsourcing firm Teleperformance and auto maker Renault, with shares slipping
by 2.1% and 2% respectively. At the top of the CAC index is high performance
materials manufacturer Saint Gobain, with shares advancing 2.1% higher. That’s
followed by pharma company Sanofi, where shares are up by 1.5%.
In London the FTSE 100 is sliding 0.4% lower today as well,
with the banking sector leading the way lower. Shares of Natwest are sliding
6.7% lower, Hargreaves shares are falling 3.3%, and Lloyds Banking Group has a
3.1% loss. Leading the FTSE today are shares of property investment and development
company Segro, with shares trading 3.7% higher after reporting a strong 2022
and high demand for its warehouse properties.
Asian Daily Market Review
2023-02-17 13:10UTC
Asian markets fell on Friday, following an overnight bearish
session on Wall Street following the release of the latest U.S. wholesale
inflation figures, which did show a slight tick lower for inflation, but it was
less than markets were expecting. In addition, markets were rocked by
commentary from two Federal Reserve officials, both of whom said markets should
brace for the central bank ramping up its monetary tightening campaign in the
face of the stubborn inflation.
Japan’s Nikkei fell 0.7% and the Yen plunged versus the U.S.
dollar, topping the 134.00 level for the first time since December. Shares of
Softbank Group lost 2.2% and Sony shares dropped by 2.4%. Among the major
exporters Toyota slid 0.3% lower, Panasonic lost 0.2%, while Canon shares
advanced 0.8%. Japan’s exporters benefit from the weaker Yen.
In Australia the S&P/ASX 200 dropped by 0.9% , with the
big four banks contributing to the broader losses. Shares of ANZ were down by
1%, NAB shares slid 2.2% lower, Commonwealth Bank had a 0.5% loss, and Westpac
edged higher by less than 0.1%. The major miners were mixed, with BHP falling
0.3% and Rio Tinto rising by 0.5%.
Mainland Chinese markets were hammered lower as well, with
the benchmark Shanghai Composite losing 0.8% and the smaller cap Shenzhen
Composite leading losses for the region with a drop of 1.6%. Over in Hong Kong
the Hang Seng slid 1.3% lower.
In South Korea the Kospi finished 1% lower, while Taiwan’s
Taiex fell by 0.5%.
Southeast Asian markets finished mixed as the KLCI in
Malaysia lost 0.5%, but Singapore’s Straits Times Index bucked the falling
trend across the region to end the session 0.5% higher.
Asian Daily Market Review
2023-02-16 01:55UTC
Asian markets are taking their cue from the overnight gains
on Wall Street, rising broadly across the region despite the increased risk of
prolonged interest rate hikes in the U.S. Overnight the U.S. released its
January Retail Sales data, which showed a 3% year-over-year increase, higher
than expected by analysts. That confirms the CPI data from the prior day, and
indicates that interest rate hikes in the U.S. could last longer than
previously expected.
Japan’s Nikkei is 0.6% higher today, with the Yen sliding
versus the U.S. dollar overnight. Shares of Softbank Group are 1.1% higher
today, and Sony shares are advancing by 0.4%. Among the major exporters Toyota
is gaining 2%, but Canon has a much smaller gain of less than 0.1%, and
Panasonic shares are flat with a slight loss of less than 0.1%.
In Australia the S&P/ASX 200 is trading 0.9% higher,
with the big four banks mixed, but mostly higher. ANZ shares are adding 0.7%,
NAB is trading 1.4% higher, and Westpac is tacking on 1%, but Commonwealth Bank
shares are sliding 0.3% lower. The major miners are helping to support the
broader market today as well, with BHP up by 0.7% and Rio Tinto advancing 0.6%.
Mainland Chinese markets are mixed and little changed out of
the gate as the benchmark Shanghai Composite is flat with a gain of less than
0.1% and the smaller cap Shenzhen Composite is flat with a loss of less than
0.1%. Over in Hong Kong the Hang Seng is outpacing the mainland with a gain of
0.8%.
In South Korea the Kospi is leading the region with a 1.5%
gain, while Taiwan’s Taiex is trading 0.6% higher.
Southeast Asian markets are also gaining, with Singapore’s
Straits Times Index up 0.7% and Malaysia’s KLCI advancing 0.2%.
Gold Retreats From The Stronger U.S. Dollar
2023-02-15 21:28UTC
Gold prices dropped to their lowest level in a month on
Wednesday as the U.S. dollar surged to a six-week high against a basket of
other currencies. The move reverses much of the gains made by the precious
metal in the early weeks of 2023, when investors were betting on a slower pace
of inflation and interest rate hikes from the Federal Reserve.
Spot gold fell 1% to $1,835.49 an ounce, while gold for
April delivery settled down by 1.1% at $1,845.80 an ounce.
There were dual catalysts for the drop in gold prices. The
first was yesterday’s U.S. Consumer Price Index data, which came in hotter than
expected, showing that the consumer in the U.S. remains resilient. It also told
investors that the Federal Reserve is far from done in its battle against
inflation. Then on Wednesday the U.S. released the latest Retail sales data,
showing a 3% increase in January, again stronger than expected and highlighting
the strength of the U.S. consumer.
Both data points have increased expectations for more
aggressive rate hikes from the Fed and an potentially higher peak for interest
rates before all the hikes are done. Markets are currently pricing in a peak of
5.2% for U.S. interest rates, and are becoming more uncertain that interest
rate cuts will begin late in 2023.
While gold is considered a hedge against inflation, it
suffers when the U.S. dollar value increases, as it’s been doing during this
rate hike cycle. That’s because rising interest rates increase the opportunity
cost of holding non-yielding gold, while a stronger U.S. dollar makes the
precious metal more expensive for overseas buyers.
Analysts note that gold is unlikely to become attractive
until the Fed begins to cut interest rates.
U.S. Daily Market Review
2023-02-15 20:08UTC
The main U.S. stocks are without a clear mark today as traders mulled a higher than predicted retail sales.The Dow Jones Industrial Average fell 54 points, or 0.16%. The S&P 500 added 0.02%.The Nasdaq Composite gained 0.62%, boosted by shares of Airbnb, which surged 13% after beating earnings expectations. As a matter of fact, January retail sales advanced 3%.The U.S. economy is holding up despite rising rate surges by the Federal Reserve trying to control inflation.Gambling in the U.S. surged to a record high last year.Commercial-gambling revenue last year broke the previous record of $53 billion set in 2021, soaring about 14% year-over-year, as reported by the American Gaming Association.Roblox stock prices jumped more than 24% after the company declared $899.4 million in fourth-quarter bookings, coming above the mark of $875.3 million bookings forecasts.
European Daily Market Review
2023-02-15 10:05UTC
The main European markets are without a solid direction after the pan-European Stoxx 600 touched a one-year peak yesterday.European shares partly advanced, stimulated from luxury group LVMH and Dutch supermarket group Ahold Delhaize.The German DAX inclined 0.48%, the French CAC-40 gained 1.03% and FTSE-100 secured 0.05%.Europe’s largest food retailer Carrefour emerged as the top gainer of the pan-European Stoxx 600 index around 9.20 a.m. Carrefour reported 800 million euro ($857 million) share buyback and increased dividends by 8% to 0.56 euros per share.Heineken (HEIN.AS), the world's second-largest brewer, further announced its forecast of a profit increase this year despite weakness in Europe.The U.K. inflation rate fell to 10.1% for January, a loss from 10.5% in December, as reported from the Office for National Statistics.
Gold Prices Are Into A Static Mode
2023-02-15 07:02UTC
Gold prices are into a static mode this morning as mixed inflation numbers for January brewed some concerns over the U.S. economy.Moreover, there is some uncertainty over the trend of the Fed’s rate hikes.In addition, the USD also signaled in a muted moves to the readings.Presently, the yellow metal trades at $1843.07, which is a decline of $11.08 or 0.60% from the previous close of $1854.15.The daily trading range is from $1841.21 to $1860.08.Prices of the precious metal steadied near one-month bottom. This comes after data indicated in annualized U.S. consumer inflation retreated less than the forecasts in January. Still, the expectations of higher interest rates result in lower demand for gold and other non-yielding assets.BHowever, the yellow metal could benefit from greater safe haven demand this year.In the meantime, platinum futures were flat at $935.74 an ounce, while silver futures lost 0.1% to $21.845 per ounce.
Asian Daily Market Review
2023-02-15 02:01UTC
Asian markets are mostly lower in choppy trade on Wednesday
morning as investors across the region digest the latest U.S. CPI data.
Inflation was slightly higher than expected, leading investors to believe that
the Federal Reserve is further away from halting its rate hike progression. Fed
officials tried to calm markets, but worries over higher interest rates
persist.
Japan’s Nikkei is holding to a slight gain of less than 0.1%
as the Yen remains softer versus the U.S. dollar. Shares of Softbank Group are
1.2% lower and Sony shares are sliding by 0.3%. Among the major exporters
Toyota is edging higher by 0.2%, Panasonic has a healthy 1.3% gain, and Canon
shares are 0.6% higher.
In Australia the S&P/ASX 200 is falling by 1% as the big
four banks are plunging in response to the U.S. inflation data and rising
Treasury yields. Shares of ANZ are trading 3.7% lower, NAB has a loss of 4.4%,
Commonwealth Bank is 5.8% lower, and Westpac shares have dropped by 4.7%. The
major miners are providing some relief however, as BHP has a 0.5% gain and Rio Tinto
shares are advancing by 1.3%.
Mainland Chinese markets are mixed at the open, with the benchmark
Shanghai Composite losing 0.1%, while the smaller cap Shenzhen Composite is
inching up by less than 0.1%. Over in Hong Kong the Hang Seng is going its own
way, falling by 1.2% to lead losses across the region.
In South Korea the Kospi trades 0.7% lower, and in Taiwan
the Taiex has a 1% loss.
Southeast Asian markets are moving lower today as well, with
the Straits Times Index in Singapore dropping 0.9% and the KLCI in Malaysia
trading 0.2% lower.
Tesla Shares Gain On A Trifecta Of Good News
2023-02-15 01:45UTC
Shares of electric car maker Tesla finished at the top of
the S&P 500 and the Nasdaq 100 on Tuesday, rocketing higher by 7.5% as a
series of good news allowed the stock to gain momentum throughout the day. The
close at $209.25 was the highest for Tesla shares in three months.
The momentum for the stock could continue into Wednesday too
as Tesla got a late day analyst push after Barclay’s initiated coverage on the
stock with an overweight rating and a price target of $275 a share. That
represents a nearly 35% premium over Tuesday’s closing price.
Barclay’s analyst Dan Levy said that the current valuation
for Tesla is reasonable given that it is a leader in both the electric vehicle
market, and in the software that runs the cars.
The initial boost for the stock came after Form Motors
reported it was halting production of its Lightning F150 electric pickup truck
due to potential battery related issues.
Tesla shares are currently sitting just below the 200-day
moving average of $225 a share and a push above that level on Wednesday could
be considered as a very bullish signal. Shares are now up 70% since the start
of the year, having erased the 65% slide lower that the stock suffered during
the bear market of 2022.
Further good news for Tesla came in as investors learned
that Soros Fund Management scooped up 242,399 shares of Tesla in the fourth
quarter of 2022. That brings the total holdings of the fund to 332,046 shares.
While other analysts and funds have become disenchanted with
Tesla due to its CEO purchasing Twitter and dividing his time between two
companies, value investors like Soros have seen an opportunity.
U.S. Daily Market Review
2023-02-14 14:35UTC
The main U.S. Stocks advanced today reversing earlier losses, after the January consumer price index report showed that inflation soared over 6% on annual basis, just above initial forecasts.The Dow Jones Industrial Average soared 72 points, or 0.22%. The S&P 500 inclined over 0.50%, and the Nasdaq Composite gained 0.85.Shares of Palantir jumped over 13% after it declared its first-ever profitable quarter. The consumer price index rose 0.5% for the month, which translated to an annual gain of 6.4%. The consumer price index (CPI) rallied more than 6% in January on an annual basis, more than predicted.U.S. consumer prices accelerated in January as Americans boosted by higher costs for rental housing.The Ford Motor Company will cut around 3,800 jobs across Europe as the U.S. automaker reduced global costs to be more competitive in the electric vehicle market.2,300 positions will be lost in Germany, 1,300 in the UK and 200 in the rest of Europe.
European Daily Market Review
2023-02-14 08:34UTC
European markets partly soared earlier today as investors assess the economic outlook.European added some side, boosted by the travel sector after holiday group TUI projected a positive recovery pattern.The German DAX added 0.25%, the French CAC-40 gained 0.43% and FTSE-100 advanced 0.43%.The pan-European Stoxx-600 index was up 0.4% mid-morning, with most sectors and major bourses trading in positive territory. German engineering and steel production company Thyssenkrupp sunk to bottom of the pan-European Stoxx-600.Shares in Vodafone (VOD.L) rallied 2.4% at the start of the session after John Malone's Liberty Global (LBTYA.O) reported it had secured around 5% in the British telecoms company.Germany's wholesale price index soared in January versus with the same month last year.UK wages jumped more than predicted at the end of 2022, adding to the pressure on the Bank of England to follow another interest-rate raise next month.
Oil Prices Retreated
2023-02-14 07:39UTC
Oil prices are red this morning after the U.S. government stated that it would release more crude from its Strategic Petroleum Reserve (SPR) as it was demanded by lawmakers.Now, oil trades at $79.324, which is a recovery of 0.175 or 0.22% from the previous close of $79.149.The daily trading range is from $78.969 to 79.596, while the trading volume is 16.639K.The U.S. Department of Energy (DOE) declared that it would sell 26 million barrels of oil from the SPR.Last year, the White House sold a record 180 million barrels from the reserve. U.S. monthly consumer prices soared in the previous two months instead of falling as previously predicted.This eroded demand in general and demand for oil as well.The Energy Information Administration stated that estimates a record March production from the seven biggest U.S. shale basins.
Asian Daily Market Review
2023-02-14 02:15UTC
Asian markets are trading cautiously higher on Tuesday
morning following solid overnight gains on Wall Street. U.S. investors were
encouraged overnight by a wage survey conducted by the Federal Reserve that
shows American households have reduced wage growth expectations. That had investors
believing that Tuesday’s CPI data might come in softer than expected.
Japan’s Nikkei is gaining 0.5% as the Yen remains mostly
flat versus the U.S. dollar. Shares of Softbank Group are modestly higher by
0.2%, while Sony shares are advancing 0.6% higher. Among the major exporters
Toyota is gaining 0.3% and Canon is 0.6% higher, but Panasonic shares are
retreating by 0.8%.
In Australia the S&P/ASX 200 is higher by 0.3%, with the
big four banks little changed and mixed for the most part. Both ANZ and Westpac
are inching up by less than 0.1%, while NAB is adding 0.5%, but Commonwealth
Bank shares are sliding lower by 0.1%. The major miners are mixed as well, with
BHP shares falling by 0.1%, but Rio Tinto shares trading 0.5% higher.
Mainland Chinese markets are slightly higher after opening
in the red. The benchmark Shanghai Composite is adding 0.2%, while the smaller
cap Shenzhen Composite edges up by less than 0.1%. Over in Hong Kong the Hang
Seng is struggling to move into positive territory, but currently has a slight
loss of less than 0.1%.
In South Korea the Kospi is gaining 0.3%, and in Taiwan the
Taiex trades 0.5% higher.
Southeast Asian markets are holding on to small gains, with
the Straits Times Index in Singapore and the KLCI in Malaysia each 0.1% higher.
Airbnb Shares Soar Ahead Of Earnings
2023-02-14 02:14UTC
Shares of travel operator Airbnb saw it shares rocket higher
by 6.9% on Monday, just one day before the company reports its fourth quarter
financial results. With most travel operators – with the exception of Expedia –
already reporting strong results for the fourth quarter it seems that investors
are betting on Airbnb also taking advantage of the resilient travel demand that
emerged following the COVID pandemic.
The consensus estimate for earnings is $1.87 billion, which
would give the company annual growth of 21.9%. However, Airbnb has pegged its
fourth quarter earnings at $1.80 to $1.88 billion, indicating that the company
could miss analyst’s estimates.
The consensus estimate for earnings is $0.27 a share, which
is a significant improvement over the $0.08 a share reported in the same
quarter last year. It’s worth noting that Airbnb has been able to beat analyst
expectations in all four of the past quarters, with the average earnings beat
being greater than 50%. If that trend continues we could see the company report
earnings in excess of $0.40 a share.
Analysts note that while travel demand has been strong in
2022, it has also been gaining momentum, and that could bode well for Airbnb.
The increase in long-distance and cross border travel, as pandemic fears ease,
is also likely to have been a boon for Airbnb.
That said, the company did face macroeconomic headwinds and an
unfavorable currency exchange rate during the quarter, and both of those
factors could weigh on results.
Wall Street analysts are mixed on Airbnb heading into this
earnings, with seven buy ratings, six holds, and three sells. The average price
target of $117.93 is just slightly higher than Monday’s closing price,
indicating little upside potential.
U.S. Daily Market Review
2023-02-13 17:30UTC
The main U.S. Stocks rallied today as traders looked ahead to Tuesday’s key inflation report.Wall Street ended the session on a higher side as investors awaited inflation data likely to hint at the path of the Federal Reserve's future interest rate rises.The Dow Jones Industrial Average added 377 points higher, or 1.11%. The S&P 500 advanced 1.15%, and the Nasdaq Composite soared 1.48%.Nike, Salesforce and Intel are higher.Meta jumped more than 3% following a Financial Times report saying more layoffs could come.A United Airlines 777 flying from Hawaii in December fell towards the ocean for 21 seconds shortly after takeoff and came within 800 feet of sea level, as reported by flight tracking data show. Microsoft shares soared more than 3.10% on Monday, boosting its market cap over $2 trillion once again, as reported by Morgan Stanley.
European Daily Market Review
2023-02-13 08:27UTC
The main European markets are still without a solid direction as investors assess the economic outlook and the potential for further monetary policy tightening from the Fed.The pan-European Stoxx-600 secured 0.2%, with most sectors and major bourses in marginally positive territory. Swedish property company Castellum fell to the bottom of the pan-European Stoxx-600 index at the start of trading after its shares lost 8% following fourth-quarter results. The German DAX inclined 0.22%, the French CAC-40 advanced 0.49% and FTSE-100 soared 0.29%.Travel and leisure and construction and material stocks led gains with 0.4% increases, while retail stocks fell 0.4%.European natural gas prices retreated to its bottom of the last month.Benchmark futures slipped close to 4.5% just before paring some of the loss. Electricity and gas prices across the region have plunged in recent months.A mild winter and energy-saving efforts by homes and factories have largely decreased demand levels across Europe.
Gold Prices Dropped
2023-02-13 07:49UTC
Gold prices sunk close to one-month bottom this morning as traders are focused on additional signals from the U.S. economy from key inflation data due this week.Now, gold trades at $1862.82, which is another decline of $2.44 or 0.13% from the previous close of $1865.26.The daily trading range is from $1856.91 to 1866.43, while the trading volume is 85.845K.A new year advanced of gold prices moved into a lower side over the past two weeks as markets reassessed their expectations for the Fed’s approach on interest rates. The Fed indicated in its plans to preserve boosting its interest rates even as inflation softened in recent months. Moreover, this week’s consumer price index (CPI) inflation reading is likely to provide in additional insights on where interest rates could potentially peak in the country. The prices of the yellow metal came under pressure by higher short-term Treasury yields.Meanwhile, platinum futures tumbled 0.3% to $948.40 an ounce, while silver futures lost 0.8% to $21.095 per ounce.
Asian Daily Market Review
2023-02-13 02:23UTC
Asian markets have opened the week to a sea of red as
investors react to last week’s performance on Wall Street – the worst weekly
performance of 2023 – and prepare for key inflation data out on Tuesday. Stocks
and bonds both fell last week in the U.S. as investors attempt to re-price
assets and account for interest rates peaking at a higher point than previously
thought.
Japan’s Nikkei is trading 1.4% lower, although the Yen is
weaker today versus the U.S. dollar, which benefits Japan’s export sector.
Shares of Softbank Group are losing 1.8% today, and Sony shares are trading
2.1% lower. Among the major exporters Toyota is falling by 0.9%, and Canon is
1% lower, but Panasonic shares are rising 1.1%.
In Australia the S&P/ASX 200 is modestly lower by 0.2%,
with the big four banks underperforming the broader market. Shares of ANZ are
holding up with a slight loss of less than 0.1%, however NAB shares are 1%
lower, Commonwealth Bank is down by 0.6%, and Westpac shares are losing 0.7%.
The major miners are also in the red today, with BHP falling by 0.5% and Rio
Tinto edging lower by less than 0.1%.
Mainland Chinese markets are bucking the falling trend around
the region, with the benchmark Shanghai Composite trading 0.3% higher and the
smaller cap Shenzhen Composite adding 0.6%. In Hong Kong the Hang Seng is not
following the lead of the mainland and trades 1% lower.
In South Korea the Kospi is down by 1.1%, and in Taiwan the
Taiex has a 0.5% loss.
Southeast Asian markets are falling today as well, with the
Straits Times Index in Singapore losing 0.6% and the KLCI in Malaysia dropping
0.3%.
Bad Weather Leads To Expedia Earnings Miss
2023-02-10 23:10UTC
Shares of travel aggregator Expedia fell by 8.6% on Friday
after the company reported fourth quarter results that fell short of
expectations. Management said that bad weather during the quarter negatively
impacted on bookings, but reassured investors that trends have since improved.
Fourth quarter adjusted earnings came in at $1.26 a share,
compared with $1.06 a share in the same quarter last year. Unfortunately Wall
Street was expecting earnings of $1.71 a share. Revenues were $2.62 billion, up
15% from the $2.28 billion reported last year, but slightly lower than the
$2.69 billion expected.
Travel demand saw an epic post-COVID rebound in 2022,
however the fourth quarter saw a number of bad weather events, rising travel
prices, concerns over a looming recession, and outdated technology that caused
thousands of flight cancelations from Southwest Airlines in December. Analysts
and investors are now left wondering how much momentum the travel resurgence
has heading into 2023.
Analysts are mixed on the future for Expedia and travel in
general. Wolfe Research downgraded Expedia and other travel booking sites
recently, and Citigroup analysts downgraded hotel chains Hilton and Marriott recently,
citing concerns over the state of travel demand.
On the other hand, Oppenheimer analysts recently upgraded
Expedia, saying that pent-up demand and a resilient consumer are keeping online
travel booking trends strong. They also said that they like the cost cutting
measures at Expedia and the company’s focus on customer service.
Shares of Expedia are up 22.9% since the start of the year,
but remain near their 52-week low after losing 40.3% over the past 12 months.
That compares with the S&P 500’s 9.2% loss since the start of the year and
11.1% drop over the past 12 months.
U.S. Daily Market Review
2023-02-10 15:18UTC
Wall Street headed for a falling weekly performance. In reality, S&P-500 are into a path to mark its worst week so far in 2023. The Nasdaq Composite dropped 0.4%. The Dow Jones Industrial Average soared 44 points, after securing 0.3%.The University of Michigan Index of Consumer Sentiment’s preliminary reading was 66.4 for the month, a rise from from 64.9 in January. The one-year inflation forecasts jumped to over 4%, a gain from 3.9% in January. Investors further came out from U.S. equity funds for the last two months in the seven days to Feb. 8.Newell Brands, the parent company of Rubbermaid and Yankee Candle dropped 7.5% after reporting earnings that missed analysts’ estimates.Oil prices advanced today Russia’s deputy prime minister, Alexander Novak, reported that Moscow will reduce production in March by 500,000 barrels a day, around 5% of its production.
Oil Prices Into A Large Rally
2023-02-10 12:04UTC
Oil prices rallied more than 2% this morning. The prices of the commodity heading for weekly rallies.This comes after Moscow declare its plans limit oil production next month after the West imposed price caps on its oil products.Presently, oil trades at $79.585, which is another incline of $1.946 or 2.51% from the previous close of $77.639.The daily trading range is from $77.449 to 80.311, while the trading volume is 58.077K.Russia plans to decrease its crude oil production in March by 500,000 barrels per day (bpd), or about 5% of its production, as reported by Deputy Prime Minister Alexander Novak.The G7 countries and, the European Union and Australia decided to ban the employment of Western-supplied maritime insurance, finance and brokering for Russian oil priced above $60 a barrel from Dec. 5.Moreover, the EU also banned purchases of Russian oil products and set price caps from Feb. 5.
European Daily Market Review
2023-02-10 12:04UTC
The main European markets lost some ground today as investors assess the economic outlook and the potential for further rate hikes from the Fed.European shares fell and were poised for their first weekly loss of the last three weeks.The pan-European Stoxx-600 declined more than 1%. In fact, the majority of the sectors and major bourses were in the red, with retail stocks leading the lower side after a retreat of 3.7%The German DAX fell 1.55%, the French CAC-40 lost -1.24% and FTSE-100 fell 0.69%.Shares of the Zara owner Inditex (ITX.MC) tumbled almost 5% this morning, after retailer agreed an inflation-busting 20% surge in average wages for shop workers in Spain.The Bank of England last week estimated that the U.K. could enter a shallow but lengthy recession in the first quarter of 2023.
Asian Daily Market Review
2023-02-10 03:09UTC
Asian markets are falling for a second consecutive day
following a failed rally overnight on Wall Street that saw major indices end
the day lower. Investors are becoming more cautious as they price in the impact
of continued rising interest rates in the U.S. and globally as central banks
continue working to contain inflation.
Japan’s Nikkei is bucking the falling trend across the
region and trading 0.5% higher today, although the Yen remains flat versus the
U.S. dollar. Shares of Softbank Group are 1.1% lower however, and Sony shares
are losing 0.3%. Among the major exporters Toyota shares are falling by 1.1%,
while Panasonic is adding 0.3% and Canon is edging higher by 0.2%.
In Australia the S&P/ASX 200 is down by 0.6% as Treasury
yields there are marching higher in anticipation of higher rates from the
Reserve bank of Australia. The big four banks are falling despite the prospect
of higher rates, with ANZ losing 0.7%, NAB falling 0.8%, Commonwealth Bank
dropping 0.2%, and Westpac 0.3% lower. The major miners are also lower, with
Rio Tinto shares falling 0.9% and BHP inching lower by less than 0.1%.
Mainland Chinese markets are showing modest losses, with the
benchmark Shanghai Composite down by 0.2% and the smaller cap Shenzhen
Composite falling 0.3%. Over in Hong Kong the Hang Seng is leading losses for
the region with a drop of 1.4%.
In South Korea the Kospi has a 0.6% loss, while Taiwan’s
Taiex is edging lower by less than 0.1%.
Southeast Asian markets are mixed, with Malaysia’s KLCI
trading 0.5% higher, while the Straits Times Index in Singapore has a 0.3%
loss.
MGM Resorts Shares Rally On Recovery Optimism
2023-02-09 21:18UTC
A rally blew up Thursday on Wall Street, sending many
winning stocks into the red, but one beaten down name remained a clear winner
as investors placed bets on a recovery in Macau now that China is reopening
after its massive no-covid policies. That stock is MGM Resorts, with shares
soaring 6.4% to settle in the second spot for the S&P 500 on an overall
bearish day on Wall Street.
The rally took MGM shares to their highest level since
February 2022, and occurred despite the
hotel and casino operator releasing fourth quarter financial results that included
a loss of $1.53 a share on revenues of $3.59 billion.
Las Vegas revenues were strong, gaining 27% to $2.3 billion
as Americans began traveling more extensively, but Chinese revenues dropped by
44% to $175 million due to the COVID lockdowns in the country. MGM has a
significant presence in Macau, but the Chinese gambling island was hard hit by
those COVID restrictions in 2022.
The investor enthusiasm for the stock was two-fold. First,
the Las Vegas numbers showed a strong rebound in MGM’s largest market.
Secondly, the lifting of COVID restrictions in China led to MGM CEO William
Joseph Hornbuckle to proclaim that “Macau is back.”
Hornbuckle added to the proclamation, saying that visitors
are returning in droves to Macau, and that MGM China’s properties are currently
the highest earning businesses within the MGM company.
Analysts also helped lift the stock, with Wells Fargo
analyst Daniel Politzer reaffirming his overweight rating on the stock while
lifting his price target to $58 from $54. He said MGM is the best way to play
the recovery in Las Vegas, which is still in its middle innings.
MGM shares are up 31.5% since the start of the year.
U.S. Daily Market Review
2023-02-09 13:59UTC
The main stocks are in red, retreating some large advances early in the session as concerns over the Federal Reserve and future monetary policy plans.The Dow Jones Industrial Average dropped 103 points, or 0.5%. The S&P 500 and Nasdaq Composite tumbled around 0.5%.Disney shares rallied around 1.5% after initially popping as the company declared weaker than predicted falls.PepsiCo jumped more than 1% on the back of fourth-quarter earnings that came in initial estimates.Mortgage rates in the US rallied for the first time in more than a month. The average for a 30-year, fixed loan was 6.12%, rising from 6.09% last week, as reported by Freddie Mac.Google-parent Alphabet fell more than 5% as investors grew concerned around rising competition in the artificial intelligence space. Tesla advanced 4% as it extended the back lost value.The number of Americans applying for unemployment benefits claims soared more than predicted last week.
European Daily Market Review
2023-02-09 08:30UTC
European markets added some side, as most traders and investors weighed up the economic outlook.European stocks jumped for a third session as investors weighed corporate earnings.The German DAX surged 1.14%, the French CAC-40 gained 1.14% and FTSE-100 rallied 0.64%.European shares jumped to a fresh nine-month peak.The Stoxx-600 added 0.7% just after European markets opened, with most sectors and major bourses into a higher ground.Siemens boosted its sales and profit outlook for the rest of the year following a massive start to 2023.Revenue for the first quarter increased 10% year on year to 18.1 billion euros ($19.44 billion).Credit Suisse announced a fourth-quarter and annual net loss that came below forecasts, as the Swiss bank continued with its huge strategic overhaul.The company’s fourth-quarter net retreat attributable to shareholders came in at 1.4 billion Swiss francs ($1.51 billion), coming below initial estimates.
Gold Prices Dropped
2023-02-09 07:10UTC
Gold prices partly fell earlier today as traders weighed hawkish indications on monetary policy from the Fed.Presently, gold trades at $1882.39, which is a recovery of $7.07 or 0.38% from the previous close of $1875.32.The daily trading range is from $1871.92 to 1883.28, while the trading volume is 82.567K. In the meantime, Fed Chair Jerome Powell noted recent progress against inflation.The possibility of greater U.S. interest rates bodes poorly for non-yielding assets.Spot gold lost 0.1% to $1,874.13 an ounce.The main focus is now on U.S. consumer price index inflation data for January, coming out next week.In the meantime, the other precious metals also dropped. For instance, silver futures slipped 0.6%.
Asian Daily Market Review
2023-02-09 01:56UTC
Asian markets are bathed in a sea of red on Thursday morning
as investors react to overnight losses on Wall Street and prepare for the
release of key Chinese economic data in the coming days. Also playing into the
market action today is the latest commentary from the Federal Reserve, which
promises that rate hikes are far from done, despite the ultra-strong employment
data released last week.
Japan’s Nikkei is trading 0.4% lower as the Yen is edging
higher versus the U.S. dollar and tech shares continue to see selling pressure.
Shares of Softbank Group are flat today after several days of significant
losses, while Sony shares are trading 0.8% lower. Among the major exporters Toyota
and Panasonic are both flat today, while Canon is edging higher by 0.2%.
In Australia the S&P/ASX 200 is 0.2% lower, even though
the big four banks are mostly higher today. Shares of ANZ are leading the
sector with a 1.1% advance, Commonwealth Bank is 0.2% higher, Westpac is adding
0.3%, and NAB is bucking the rising trend with a slight loss of less than 0.1%.
The major miners are mixed, with BHP inching up by less than 0.1% while Rio
Tinto shares slide 0.5% lower.
Mainland Chinese markets have erased early losses and the
benchmark Shanghai Composite is 0.2% higher, while the smaller cap Shenzhen
Composite is adding 0.1%. In Hong Kong the Hang Seng is pacing the mainland
markets with a modest 0.1% gain.
In South Korea the Kospi is flat with a slight loss of less
than 0.1% and in Taiwan the Taiex is edging lower by 0.1%.
Southeast Asian markets are also lower today, with the
Malaysia’s KLCI and Singapore’s Straits Times Index each losing 0.2%.
Alphabet Shares Fall After Chatbot Provides Incorrect Answer
2023-02-08 21:42UTC
Wednesday saw Alphabet give back gains secured on artificial
intelligence hype on Tuesday. After gaining 4.4% in the wake of the
announcement that the tech giant was developing its own AI chatbot called Bard,
shares plunged 7.7% on Wednesday following an event that showcased its new AI
chatbot.
The Alphabet AI event comes just one day after Microsoft
held its own AI event and announced the integration of ChatGPT with its Bing
search engine and Edge browser.
During the Alphabet AI event, which was livestreamed from
Paris, Alphabet’s management discussed some of the capabilities of the Bard
chatbot. Examples included showing how Bard could be used to plan a trip to
Northern California, or to display the pros and cons of buying an electric
vehicle.
Bard is powered by Google’s LaMDA, or Language Model for
Dialogue Applications, which is a competitor to OpenAI’s ChatGPT AI used by
Microsoft. LaMDA is currently being tested by a “trusted group” of testers, but
Alphabet has said it will become available to the general public in several
weeks.
The slide in Alphabet shares came in response to the Bard
chatbot providing an inaccurate answer to a question that was released as an
advertisement for Google.
While analysts were largely positive about the rest of the
presentation, they did note that Google didn’t release anything of note during
the event. There was some feeling that the event was somewhat rushed in
response to the hype created by Microsoft’s AI event and the integration of
ChatGPT with Microsoft products.
Additionally, it was noted that Google did not provide any
clues as to when Bard might be integrated with Google search.
Alphabet shares are up 12.6% since the start of 2023.
Asian Daily Market Review
2023-02-08 13:13UTC
Asian markets ended Wednesday mixed following an overnight
rally on Wall Street that was sparked by comments from Federal Reserve chairman
Jerome Powell indicating that the central bank’s stance on interest rates
wouldn’t be swayed by last week’s strong jobs report alone.
Japan’s Nikkei fell by 0.3%, weighed on by losses from tech
companies as the latest round of earnings disappointed investors. Shares of
Nintendo were lower by 7.5% and Sharp fell 12.6% after both reported steep
losses in the latest quarter. Shares of Softbank Group continued trending lower
after reporting disappointing results on Monday. Shares were down 5.1% on the
day. Among the major exporters Toyota edged higher by less than 0.1%, while
Panasonic lost 0.4% and Canon retreated by 1.1%.
In Australia the S&P/ASX 200 finished 0.4% higher,
helped by gains from the big four banks. Shares of ANZ were 0.5% higher, NAB
rose 1%, Westpac tacked on 0.7%, and Commonwealth Bank inched up by less than
0.1%. The major miners made gains on the day as well, with BHP shares rising by
0.2%, while Rio Tinto rallied 1.1% higher.
Mainland Chinese markets finished the day lower, with losses
accelerating into the close. The benchmark Shanghai Composite dropped by 0.5%
and the smaller cap Shenzhen Composite ended the day 0.6% lower. Over in Hong
Kong the Hang Seng outpaced the mainland, but still ended the day slightly
lower by less than 0.1%.
In South Korea the Kospi rose 1.3% and in Taiwan the Taiex
led the region with a 1.4% gain.
Southeast Asian markets finished mixed as Singapore’s
Straits Times Index rose 0.2%, but the KLCI in Malaysia fell 0.4%.
U.S. Daily Market Review
2023-02-08 13:03UTC
AU.S. stocks are in red as the markets tuned the latest batch of corporate earnings. The Dow Jones Industrial Average declined 180 points, or 0.5%. The S&P-500 slipped 1.1%, while the Nasdaq Composite lost 1.6%.Chipotle tumbled more than 4% after missing expectations on the top and bottom lines in its latest results. CVS and Uber soared more than 2% and 6%, accordingly. CVS Health rallied more than 4.5% after the company declared greater profit and sales forecasts.Google parent Alphabet slipped more than nearly 8% amid fears of rising costs.The pharmacy operator announced earnings of $1.99 per share.Activity in the housing market entered into recovery in the past week as mortgages rates sunk for a fifth straight week. The 30-year fixed mortgage rate fell more than 6.15%.The Purchase Index increased 3% from one week earlier, as reported by the Mortgage Bankers Association.
European Daily Market Review
2023-02-08 09:35UTC
European markets advanced today as investors digested the latest comments coming from the Fed.European shares reached more-than-nine-month high on Wednesday as investors drew positive signals from Fed’s Chair comments.The German DAX added 0.84%, the French C AC-40 soared 0.58% and FTSE-100 advanced 0.75%.Britain’s blue-chip FTSE 100 hit a record high shortly after markets opened in Europe, increasing by 0.8% to reach 7,925.02. The pan-European Stoxx-600 soared 0.8% mid-morning, while all sectors and major bourses entering into a bulls mode.Maersk the container shipping giant announced a loss in fourth-quarter earnings but posted the best full-year result in its history.The Danish company is regarded as the barometer for global trade. In fact, its earnings before interest, taxes, depreciation and amortization (EBITDA) reached $6.5 billion in the fourth quarter.
Oil Prices Further Advanced
2023-02-08 09:06UTC
Oil prices further surged after two-day rising path today, marking slight rallies as the USD lost some ground. Now, oil trades at $78.194, which is another rise of $0.623 or 0.80% from the previous close of $77.571.The daily trading range is from $77.070 to 78.265, while the trading volume is 25.111K.Oil benchmarks are likely to preserve support levels after Federal Reserve Chair Jerome Powell sounded less hawkish on interest rates than initial forecasts.The USD index partly dropped today, adding to the falling trend after Powell's comments that oil will become cheaper for those holding other currencies. The numbers from the American Petroleum Institute industry group indicated in crude stocks tumbled by about 2.2 million barrels in the week ended Feb. 3.However, gasoline and distillate inventories jumped more than estimates with gasoline stocks securing around 5.3 million barrels and distillate stocks.
Microsoft Shares Rally On AI News
2023-02-07 22:37UTC
Microsoft was at the top
of the Dow on Tuesday as shares rocketed 4.2% higher on news that the tech
giant is integrating the artificial intelligence technology behind ChatGPT into
its Bing search engine and Edge web browser. Investors bid shares up on hopes
that this integration can help Microsoft begin to chip away at Google’s
dominance over search.
The announcement comes
after Microsoft invested $10 billion into OpenAI, the company behind the
ChatGPT system. It’s the third such investment by Microsoft into OpenAI, with
the prior two coming in 2019 and 2021. Microsoft is betting big on AI
technology, and believes that integrating it into its search engine will enable
a new type of search where users are able to query search engines using natural
language and receive direct responses.
Microsoft’s integration
is also expected to include real-time data, which is something that ChatGPT
does not currently include. It will also provide its Azure cloud computing
environment for OpenAI and integrate other OpenAI models to its enterprise and
consumer software offerings.
Analysts are calling the
announcement a game changer for Microsoft, and have additionally called this
move the first salvo in the AI arms race among tech companies.
The announcement from
Microsoft comes just one day after Google parent Alphabet announced the launch
of its own conversational AI service called “Bard”. Bard will be released to a
select group of “trusted testers” before being released to the general public
in the coming weeks. Alphabet shares were up 4.4% on Tuesday as well, as
investors are viewing any company with ties to AI as a winner in the current
environment.
Microsoft shares are up
11.6% since the start of the year.
U.S. Daily Market Review
2023-02-07 18:40UTC
Stocks are red today following a brief rally that came as Fed’s Chair Jerome Powell reported that inflation was on retreat.The S&P 500 fell 0.3%, while the Nasdaq Composite dropped 0.2%. The Dow Jones Industrial Average lost 202 points.Stocks erased earlier gains after Jerome Powell said that in case solid labor data persists, the peak rate in the current tightening cycle could come in stronger.U.S. imports rallied in December as demand for consumer goods and autos advanced.The trade deficit in goods and services was a seasonally adjusted $67.4 billion in December, as reported by the Commerce Department.The U.S. trade deficit for all of 2022 jumped over 12% to $948.1 billion, the biggest gap on record.Hertz Global Holdings surged 8% after reporting greater than predicted for the fourth quarter, boosted by solid demand for rental cars from leisure travelers.
European Daily Market Review
2023-02-07 09:56UTC
The main European markets added some ground, although global sentiment is still a clear direction.The German DAX added 0.06%, the French CAC-40 gained 0.09% and FTSE-100 inclined 0.43%.The pan-European Stoxx-600 secured 0.3% in early trade.Turkey ordered the resumption of crude-oil flows to the Ceyhan export terminal.BP declared underlying replacement cost profit, used as a proxy for net profit, of $27.7 billion for 2022. Shares of BP soared more than 4%.BP Plc raised its dividend and added to share buybacks after posting a record profit of $27.65 billion for 2022.The French President Emmanuel Macron stated that France would deliver 18 Caesar cannons and 40 AMX10 armored vehicles to Ukraine. Austrian company Osram shares fell 13% after posting lower fourth-quarter results and a “low” outlook for the first quarter.
Oil Prices Rallied
2023-02-07 08:11UTC
Oil prices surged for a second straight session, boosted by optimism about recovering demand in China.Now, oil trades at $75.486, which is a rise of $1.061 or 1.43% from the previous close of $74.425.The daily trading range is from $74.329 to 75.956, while the trading volume is 29.346K.Тhere are some issues over adequate supply levels following the shutdown of a major export terminal after an earthquake in Turkey. The International Energy Agency (IEA) predicted half of this year's global oil demand growth to come from China.Saudi Arabia, the largest oil producer, boosted its prices for its flagship crude for Asian buyers for the first time in six months amid forecasts of oil demand recovery.The markets are focused on the Federal Reserve's chair Jerome Powell's speech later today.Moreover, higher interest rates add some value to the USD, which makes oil more expensive for holders of other currencies.
Asian Daily Market Review
2023-02-07 02:14UTC
Asian markets are trading broadly higher on Tuesday morning despite
an overnight slide on Wall Street that sent indices there broadly lower on
concerns that the Federal Reserve will continue its aggressive rate hike stance
for longer than previously thought. The gains also come as investors prepare
for another 0.25% rate hike from the Reserve Bank of Australia, and worries
over increasing tensions between the U.S. and China.
In Japan the Yen has continued in its slide against the U.S.
dollar, helping to boost shares of Japan’s export sector. The Nikkei is trading
0.2% higher, with shares of Sony slightly higher by less than 0.1%, while
Softbank shares are sliding 1.1% lower ahead of a quarterly earnings report.
Among the major exporters Toyota and Panasonic are each 0.7% lower, while Canon
is falling by 0.4%.
In Australia the S&P/ASX 200 is flat ahead of the RBA’s
rate decision. The big four banks are higher however, with ANZ leading the pack
with a 1.2% advance, while Commonwealth Bank and NAB are 0.1% higher and
Westpac has a 0.2% gain. The major miners are mixed, with BHP edging higher by
less than 0.1%, while Rio Tinto slips 0.2% lower.
Mainland Chinese markets are creeping higher, with the
benchmark Shanghai Composite and the smaller cap Shenzhen Composite each adding
0.1%. Over in Hong Kong the Hang Seng is outpacing the mainland and is trading
up by 0.9% to lead gains for the region.
In South Korea the Kospi is adding 0.4%, while Taiwan’s
Taiex is inching up by less than 0.1%.
Southeast Asian markets are mixed as the KLCI in Malaysia
trades 0.7% lower to lead losses for the region, while Singapore’s Straits
Times Index advances 0.2% higher.
Tesla Is Looking Like A Winner In 2023
2023-02-07 01:42UTC
Shares of Tesla rallied 2.5% higher on Monday even as the
broader market declined as investors were encouraged by the news that a jury
found CEO Elon Musk not liable in a securities fraud lawsuit.
Tesla shares have roared into 2023, performing as well in
the first weeks of the month as it performed poorly in the final weeks of 2022.
In fact, after falling by 54% in the final quarter of 2022, shares have now
regained all that and a bit more in just the first six weeks of 2023. There are
a number of reasons for the stock rebound, including the reopening of China,
tax credits on electric vehicles, and of course the charismatic CEO of Tesla –
Elon Musk.
Monday saw Wedbush analyst Dan Ives report that he is seeing
an uptick of Tesla sales in China, and that clearly the price cuts the company
made in the region are having a positive effect. He also noted that Tesla has
increased production in its Shanghai plant to 80,000 vehicles a month, up from
the 66,000 vehicles delivered from the plant in January.
Other analysts are seeing a similar turnaround in China, and
consensus estimates are that Tesla will deliver 426,000 cars in the first
quarter of 2023. That’s up from 406,000 cars delivered in the fourth quarter of
2022, which was already a record number.
Ives held his buy rating on the stock Monday, while
increasing his price target from $200 a share to $225 a share.
In addition, last week the U.S. IRS raised the price cap for
tax credit eligibility from $55,000 to $80,000, which means more Tesla Model Y
vehicles will qualify for the tax credit, thus boosting demand.
U.S. Daily Market Review
2023-02-06 15:47UTC
U.S. stock tumbled as investors grew increasingly cautious amid rising bond yields.The forecasts that the Fed will preserve its monetary policy tight to tame inflationary pressures are still active.The Dow Jones Industrial Average lost 190 points, or 0.6%. The S&P-500 slipped 0.9%, while the Nasdaq Composite dropped more than 1%.Tyson Foods declined 4% after a lower than estimated reports. Children’s Place, the kids’ apparel retail dropped 11% after it pulled back its outlook for the fourth quarter.Apple also fell more than 1%.Retailer stocks Target and Nike are also in red.Tesla shares came higher than predicted during early morning trading. Tesla stock soared about 2.5% as of 10:10 a.m. EST. Morgan Stanley has a bull case price target of $150 per share on Disney, which implies suggests in a rise of over 36% from Friday’s close.
European Daily Market Review
2023-02-06 09:13UTC
The main European markets entered the new week on a falling side as investors gauge the global economic outlook and efforts to handle inflation.The German DAX lost 1.04%, the French CAC-40 dropped 1.42% and FTSE-100 declined 0.81%.The pan-European Stoxx 600 tumbled 0.5% at market open, with most sectors and major bourses trading into a lower side.European stocks partly fell after closing into a higher side on Friday amid worries that a hot jobs report will keep the Federal Reserve hawkish.Turkey’s stock market dropped with the BIST index losing more than 5.20% to 3,894.04 points at 8.13 a.m. London time. Turkey’s currency depreciated to a record low following the major earthquake that hit the country.In fact, the lira sunk to18.85 in early trade before recovering some of the losses.Investor morale in the zone advanced for the fourth month in a row in February to surged to its highest level since March 2022.A new deal to revive Renault (RENA.PA)'s long-standing partnership with Nissan(7201.T), as reported by Renault's CEO Luca de Meo.Nissan will invest around 15% stake in Ampere, Renault’s new electric vehicle maker, according to a statement.
Gold Prices Are Into A Static Mode
2023-02-06 08:41UTC
Gold prices are without a solid direction today after logging their weakest week of the last two quarters.Now, the yellow metal trades at $1879.76, which is an addition of $15.15 or 0.81% from the previous close of $1864.61.The daily trading range is from $1860.36 to 1881.14, while the trading volume is 134.698K.The main focus in now a discussion with Fed’s Chair Jerome Powell after higher than predicted U.S. employment data.Gold prices fell 2.5% and dropped over 3% last week after U.S. employment data is still greater than estimates in January. The Fed had last week raised interest rates as expected and signaled that it will keep doing so in the near-run.The other precious metals also tumbled on Friday, and were trading in a mixed range on Monday. In the meantime, Platinum futures added 0.2% after falling below $1000 per ounce.
Asian Daily Market Review
2023-02-06 05:50UTC
Asian markets are mostly lower on Monday morning despite
losses on Wall Street to close out last week. The decline is coming in response
to U.S. employment data showing a gain of more than half a million jobs in the
U.S. for January, far above the expectations for 188,000 new jobs. The strong
jobs report has fanned expectations for the Fed to continue aggressively hiking
interest rates in an effort to rein in inflation.
Japan’s Nikkei is bucking the falling trend across the
region, rising by 0.7% in response to weakness in the Yen versus the U.S.
dollar in response to the latest employment data. Shares of Softbank Group are
just 0.1% higher, and Sony shares are trading 1.4% lower. Among the major
exporters Toyota is trading 1.1% higher, Panasonic is adding 0.7%, and Canon is
gaining 1.5%.
In Australia the S&P/ASX 200 is 0.3% lower today, with
the big four banks falling to contribute to the broader market weakness. ANZ
shares are 0.7% lower, NAB is edging lower by less than 0.1%, Commonwealth Bank
is falling 0.4%, and Westpac is losing 0.3%. The major miners are supporting
the market however, with BHP rising by 0.6% and Rio Tinto gaining 0.9%.
In mainland China the benchmark Shanghai Composite is
falling by 1.1% and the smaller cap Shenzhen Composite is trading 1.6% lower.
Over in Hong Kong the Hang Seng is leading losses for the region with a drop of
2.6%.
In South Korea the Kospi is trading 1.4% lower, and in
Taiwan the Taiex is losing 1%.
Southeast Asian markets are flat however, with Singapore’s
Straits Times Index unchanged, while the KLCI in Malaysia is edging higher by
less than 0.1%.
Amazon Slides On Disappointment And Faltering Growth
2023-02-03 21:31UTC
Shares of Amazon plunged 8.4% lower on Friday after
reporting soft results for its cloud computing and retail sales businesses,
while also giving downbeat guidance for the coming quarter. Shares were hit
much harder than peers Alphabet and Apple, who also posted weaker than expected
fourth quarter results. Alphabet shares fell 3.3% on the day, while Apple
shares gained 2.4%.
Amazon actually gave a positive revenue surprise, reporting
a 9% increase to $149.2 billion versus expectations for $145.4 billion. However,
the revenue beat was overshadowed by weakness in Amazon’s core retail business
and in the cloud computing division that’s been so profitable for Amazon.
Amazon’s cloud computing business grew at a 20% clip, which was slower than the
third quarter growth of 27.5% and below analyst expectations.
The disappointing fourth quarter results close out Amazon’s
slowest annual growth since it debuted as a publically traded company in May
1997. It’s also the first unprofitable year for Amazon since 2014
Despite short-term challenges, several analysts remain
encouraged by cost containment efforts at Amazon. They believe that Amazon will
make it through the current period of economic turbulence to emerge even
stronger on the other side.
Amazon has been actively cutting costs recently. It has laid
off 18,000 associates, frozen new hiring, closed a number of its physical
stores, shelved some projects, and paused its massive warehouse expansion
project. These cost cutting measures could mean that Amazon shares are now on
sale and investors could well be handsomely rewarded in the latter half of 2023
and into 2024.
Amazon investors have been tested, with shares falling 51%
in 2022, marking the worst performance for the stock since its 80% slide in
2000 during the dot-com bust.
U.S. Daily Market Review
2023-02-03 17:34UTC
The S&P-500 tumbled today amid solid strong jobs report negatively influenced the market mode that the Fed would raise its rates.The Nasdaq Composite slipped 0.2%. The Dow Jones Industrial Average gained 35 points, or about 0.1%, supported by gains in Apple shares. In reality, the U.S. economy created 517,000 jobs in January, coming well above the initial forecasts.The 10-year Treasury yield topped 3.5% after securing 12 basis points following the report.U.S. bond funds attracted money inflows for a month in the seven days to Feb. 1, amid estimates of decreasing rate surges.Amazon prices dropped 4% greater revenues than expected. Moreover, the company also declared a slowdown in growth within its cloud business.US government bonds retreated today amid higher than estimated new jobs and service-sector activity undermined wagers on a recession that could stimulate the Fed to reduce interest rates by year-end.
European Daily Market Review
2023-02-03 08:50UTC
European markets lost some side as investors digest key central bank decisions. European shares are in red weighed down by retreats in technology stocks after weaker earning results.The German DAX slipped 0.87%, the French CAC-40 dropped 0.65% and FTSE-100 added 0.04%.The pan-European Stoxx 600 index slipped 0.4% in early trade, with autos shedding 1.1% to lead the falling path.The European Central Bank raised interest rates by 50 basis points and signaled a further hike of the same scale in March.The Bank of England also raised rates by half a percentage point in hand with estimates.Turkey’s consumer inflation dropped down at a lower rate than initial forecast. Consumer prices surged an annual 57.7% last month, from 64.3% in December, according to the official statics.
Oil Prices Fell
2023-02-03 08:15UTC
Oil prices eased this morning, with major benchmarks headed for their second week of losses as the market is focused on indications of fuel demand recovery in China.Now, oil trades at $75.230, which is another loss of $0.741 or 0.98% from the previous close of $75.971.Brent crude futures slipped 34 cents, or 0.4%, to $81.83 a barrel by 0740 GMT.Contracts have dropped by more than 5% on weekly basis, with mixed signals on fuel recovery in China.The USD has dropped because of large interest rate hikes by the Fed. The U.S. central bank scaled back to a milder rate rises after a year of larger hikes.The main concentration is on the Feb. 5 European Union ban on Russian refined products as the EU countries will seek a deal on Friday to introduce price caps for Russian oil exports.
Asian Daily Market Review
2023-02-03 01:55UTC
Asian markets are mixed in cautious trade Thursday as
investors are preparing for a slower pace of rate hikes from central banks, but
have also encountered some temporary negative headwinds following disappointing
earnings from some of America’s biggest tech firms. Also impacting markets are
the overnight gains on Wall Street, which were helped by a more than 24% rally
in shares of Meta Platforms after the company beat analyst expectations and promised
cost cutting measures in the coming year.
Japan’s Nikkei is trading 0.7% higher, with a rally that’s
gaining steam. Shares of Softbank Group are 1.3% higher and Sony is rocketing
4.6% higher. Among the major exporters Toyota is adding 1.7% and Canon is up by
1.1%, but Panasonic shares are crashing 3.9% lower.
In Australia the S&P/ASX 200 is 0.4% higher, with the
big four banks providing strong support. ANZ shares are 1.8% higher, NAB is
adding 1.2%, Commonwealth Bank is tacking on 0.8%, and Westpac has a 1.5% gain.
The major miners are weighing on the broader market however, with BHP shares
falling 1.9% and Rio Tinto down 1.6%.
Mainland Chinese markets are bucking the rising trend as the
benchmark Shanghai Composite is down 0.6% and the smaller cap Shenzhen
Composite has a 0.3% loss. In Hong Kong the Hang Seng is leading losses for the
region with a loss of 1.1%.
In South Korea the Kospi is flat with a slight gain of less
than 0.1%, while Taiwan’s Taiex is edging lower by 0.1%.
Southeast Asian markets are little changed, with the Straits
Times Index in Singapore and the KLCI in Malaysia inching up by less than 0.1%.
Meta Platforms Surprise Delivers Astounding Rally
2023-02-02 21:37UTC
Shares of Facebook parent Meta Platforms exploded higher
on Thursday as investors were thrilled by the latest quarterly results, and
more importantly the future prospects for the company and its stock. Shares
finished the day with a massive 23.3% gain in one of the best days in a decade.
Meta shares are now at
their highest point since September 2022, when the company released a disastrous
quarterly report, and investors and analysts began to question CEO Mark
Zuckerberg’s decision making and leadership abilities. Those questions
evaporated on Thursday as Meta reported $32.2 billion in revenue and $1.76 a
share in earnings. Analysts had been expecting $31.55 billion in revenue.
Perhaps even more of a
catalyst for the stock was the announcement of a $40 billion stock buyback plan
and the optimistic tone set by Zuckerberg as he called 2023 the “Year of
Efficiency” at Meta.
Investors were clearly
impressed by plans to slash expenses at Meta, including the massive capital
expenditures the company has been undertaking in pursuit of the Metaverse.
Zuckerberg called for reduced layers of management at Meta as well as an
improved flow of information that he believes will improve staff retention and
lead to better products.
In addition to the good
news from the company itself, investor sentiment was lifted by the slew of
analyst upgrades that came immediately in the wake of the earnings release. Evercore
ISI analyst Mark Mahaney raised his price target to $275 while reiterating an
outperform rating. Rosenblatt’s Barton Crockett improved his rating to a buy
and set a $220 price target, and Guggenheim's Michael Morris revised his price
target to $210, maintaining a buy rating on Meta.
Meta shares closed
Thursday at $188.77, up 56.9% since the start of the year.
U.S. Daily Market Review
2023-02-02 16:29UTC
The S&P-500 soared to its peak mark of the last five months. Meta reports further improved sentiment around technology shares.Meanwhile, the tech-heavy Nasdaq Composite advanced 3% to its highest level since September. The biggest winners emerged the giants of Apple, Amazon and Alphabet.The Dow Jones Industrial Average came in lower than predicted, dropping 124 points, or about 0.4%. Meta jumped more than 25% in its best day since 2013 after reporting a fourth-quarter results came above revenues and declared 40 billion stock buyback. Shares of the industrial company Honeywell retreated more than 5% in premarket trading after revenue for the fourth quarter came in short of expectations. Tesla registered a rally of 1.8% following a Reuters report that the company will boosts its output at its Shanghai factory to almost 20,000 vehicles per week for February and March.
European Daily Market Review
2023-02-02 06:50UTC
European markets are heading for a session as the markets digested the latest move by the Fed and the expected reports from the central banks in Europe.The Fed stimulated its benchmark interest rate by a quarter percentage point yesterday.FTSE-100 lost 0.14%, the German DAX inclined 0.35% and the French CAC-40 fell 0.07%.Oil giant Shell has declared record annual profits after Russia's invasion of Ukraine.In fact, the company stated adjusted earningsof $39.9bn (£32.2bn) for 2022, the highest in its 115-year history.The Bank of England is very likely to boost interest rates for a 10th consecutive time today.Deutsche Bank AG’s net profit jumped in the fourth quarter, marking the lender to post its greatest year since 2007. The German bank announced a 1.8 billion euro ($1.98 billion) net profit attributable to shareholders for the fourth quarter.
Gold Prices Largely Surged
2023-02-02 06:33UTC
Gold prices rallied to a nine-month peak after advancing largely in the prior session.This comes as the Fed indicated that will further extend raising interest rates and resulted in higher issues of a potential economic slowdown down the road.Presently, the yellow metal trades at $1952.25, which is another rally of $1.93 or 0.10% from the previous close of $1950.32.The daily trading range is from $1949.80 to 1957.15, while the trading volume is 89.778K.Gold largely outperformed its main rivals following the Fed’s meeting serving to raise gold’s status as a safe haven. In fact, the prices of the yellow metal added around 1% after the Fed raised interest rates by a relatively smaller 25 basis points (bps).Gold’s rise came in hand with massive losses of the USD, falling to over nine-month bottom versus its main pairs.
Asian Daily Market Review
2023-02-02 02:20UTC
Asian markets are trading mostly higher Thursday morning in
a rally fueled by overnight gains on Wall Street and comments from the Federal
Reserve indicating that the central bank has made progress in its fight against
inflation. Investors are taking that news to mean that rate hikes will continue
to slow, and some analysts are now claiming that the Fed could begin cutting
rates as early as the second half of 2023.
Japan’s Nikkei is 0.3% higher, being held back to some
degree by weakness in the U.S. dollar. Shares of Softbank Group are 1.3% higher
today, but Sony shares are falling by 0.4%. Among the major exporters Toyota is
losing 0.9%, Panasonic shares are falling 0.5%, and Canon is edging lower by
0.2%.
In Australia the S&P/ASX 200 is up by 0.3%, with the big
four banks pressuring the broader market. Shares of NAB and Westpac are each
falling by 0.4%, ANZ shares are flat and unchanged, and Commonwealth Bank
shares are edging lower by less than 0.1%. The major miners are falling today
as well, with BHP trading 1.2% lower and Rio Tinto shares falling 2.4%.
Mainland Chinese markets have reversed early losses and the
benchmark Shanghai Composite is now slightly higher by less than 0.1%, while
the smaller cap Shenzhen Composite is gaining 0.2%. Over in Hong Kong the Hang
Seng is outpacing the gains on the mainland with a 0.6% advance.
In South Korea the Kospi is adding 0.4%, and in Taiwan the
Taiex is leading gains across the region with a 0.7% advance.
Southeast Asian markets are mixed however, as the KLCI in
Malaysia is adding 0.2%, but the Straits Times Index in Singapore is falling by
0.4%.
Electronic Arts Suffers Worst Decline Since Before Pandemic
2023-02-01 22:29UTC
Game maker Electronic Arts avoided the downturn brought on
by the pandemic as investors bet that the company would flourish in an
environment where people were forced to spend more time at home. They weren’t
wrong, but on Wednesday EA shares recorded their worst performance since the
start of the pandemic, falling 9.4% after the company issued disappointing
guidance that had investors resetting their expectations for the coming year
for the game maker.
At one point shares were down 14%, but they did recover
somewhat by the close as bargain hunters stepped in to snap up shares. It was
the worst one day percentage decline since February 6, 2019, when shares fell
13.9%.
Electronic Arts was one of the few “winners” during the
pandemic bear market, with shares falling a mere 7% in comparison with the nearly
20% drop in the S&P 500. Rival Take Two Interactive was down 41.4% over the
same period, while Activision Blizzard shares rose 15.1% thanks to a takeover
bid from Microsoft.
After markets closed Tuesday EA reported third-quarter
revenue of $1.9 billion, up from $1.8 billion in the same quarter last year.
Earnings came in at $0.73 a share versus $0.23 a share in last year’s quarter.
While the quarterly results look favorable, the company also
reported a delay in releasing its latest Star Wars game, as well as the
discontinuation of two popular mobile games. As a result, the company cut its
guidance for the coming quarter, projecting revenue of $1.7 billion to $1.8
billion and earnings of $0.05 to $0.20 a share. Wall Street is expecting
revenues of $2.2 billion and earnings of $2.21 a share.
Due to Wednesday’s drop Electronic Arts shares are now down
4.4% since the start of the year.
The USD Dropped
2023-02-01 17:00UTC
The USD is in red today just before the Fed is likely to raise rates by an additional 25 basis points.Presently, the USD versus the Euro trades at 0.915 EUR, which is another decline of 0.0047 or 0.51% from the previous close of 0.9205.The daily trading range is from 0.9156 to 0.9212.The Fed is just around the end of its tightening period.The Fed officials have stressed the need to preserve the same rates in restrictive measure to control and hopefully to bring down inflation.The USD index slipped more than 0.30% at 101.78 and is holding just above an eight-month bottom.The ADP National Employment report indicated in that U.S. private payrolls soared by106,000 jobs last month.
U.S. Daily Market Review
2023-02-01 16:33UTC
Stocks are in red today as the main focus is on the lates repots from the Federal Reserve.Fed’s decision on interest rates later in the day created in a negative pressure on the markets. As a matter of fact, the Fed at 2 p.m. ET will declare how much it
will raise its interest rates in its latest effort to tame high
inflation.The Dow Jones Industrial Average fell 254 points, or 0.75%. The S&P-500 dropped around 0.3%. Meanwhile, the Nasdaq Composite tumbled 0.2%. United Rentals is also trading at the highest level dating back to its December 1997 IPO.Manufacturing activity retreated once again in January.The manufacturing PMI for the month marked 47.4%. This represents a loss below the 48.4% reading for December and less than the 48% Dow Jones estimate.
European Daily Market Review
2023-02-01 10:01UTC
European markets gained some ground with the markets concentrated on the U.S. Federal Reserve’s due later today.The German DAX inclined 0.08%, the French CAC-40 gained 0.09% and FTSE-100 soared 0.11%.The pan-European Stoxx-600 index secured 0.2% in morning trade after two sessions of losses.Мoreover, European shares added some side, boosted by gains in Novo Nordisk and other healthcare stocks.Swedish outdoor machinery seller Husqvarna rallied more than 6%, despite reporting a higher operating loss for the fourth quarter. Most likely, Bank of England’s key lending rate will soon start to slash rate, which are the borrowing costs.European natural gas largely moved as traders weighed colder weather approaching next week.In fact, benchmark futures jumped around 6% on Wednesday before erasing gains. Temperatures will drop below normal from next week, according to most weather forecasts.
Oil Prices Into Recovery
2023-02-01 07:07UTC
Oil prices secured some side amid signals of falling inflation in the United States eased fears that the world's largest oil user may face a recession because of further interest rate hikes.Now, oil trades at $78.979, which is another loss of $0.042 or 0.05% from the previous close of $79.021.The daily trading range is from $78.904 to 79.706, while the trading volume is 23.163K.Softer rate rises added to the weaker USD which in turn boosted oil prices, by making them cheaper to holders of other currencies.The main focus is on the meeting of the Organization of the Petroleum Exporting Countries and allies including Russia, known as OPEC+.OPEC's oil output dropped in January, as Iraqi exports fell and Nigeria's output did not recover.Greater global growth forecasts by the IMF and the expectation of strong pent-up demand from China amid higher mobility.The American Petroleum Institute industry group showed crude stocks rose by about 6.3 million barrels in the week ended Jan. 27.
Asian Daily Market Review
2023-02-01 02:11UTC
Asian markets are headed broadly higher on Wednesday morning
following an overnight rally on Wall Street that reversed declines from the
prior session. Investors are awaiting the results of the latest Federal Reserve
meeting, where central bank leaders are expected to raise U.S. interest rates
by 0.25% and signal slowing hikes in the coming months. Meanwhile the European
Central bank is expected to deliver a 0.5% increase when its meeting ends on
Thursday.
Japan’s Nikkei is trading 0.5% higher today, with the Yen
remaining tightly range-bound around the 130.00 level. Shares of Softbank Group
are 1.8% higher, and Sony is gaining 0.5%. Among the major exporters Toyota is
flat and unchanged, while Panasonic and Canon are both edging lower by 0.1%.
In Australia the S&P/ASX 200 is gaining 0.5% as well,
with the big four banks providing some support. Shares of ANZ are outpacing the
group with a 1.2% gain, and Westpac is 0.4% higher, but NAB is flat and
Commonwealth bank is falling slightly by less than 0.1%. The major miners are
providing better support however, with BHP shares rising 1% and Rio Tinto
adding 1.4%.
Mainland Chinese markets have opened to gains today as well,
with the benchmark Shanghai Composite tacking on 0.3% and the smaller cap
Shenzhen Composite rising by 0.7%. Over in Hong Kong the Hang Seng is lagging,
trading slightly lower by less than 0.1%.
In South Korea the Kospi is rising by 0.7% and in Taiwan the
Taiex has a 0.6% advance.
Southeast Asian markets are struggling today however, with
Singapore’s Straits Times Index edging higher by less than 0.1%, while Malaysia’s
KLCI is leading losses for the region with a drop of 0.9%.
General Motors Suprises With Strong Results
2023-02-01 00:25UTC
Shares of automaker General Motors popped 8.4% higher on
Tuesday after beating Wall Street expectations for fourth quarter earnings and
guiding towards an even stronger 2023.
General Motors easily beat top line expectations for revenue
of $40.7 billion by reporting a 28% year-over-year jump to $43.1 billion. CEO Mary Barra said that GM topped the U.S. auto
industry in number of vehicles delivered, with sales spurred on by strong
demand for its products and improving supply chain conditions. Thanks to the
strong revenues and cost controls at the company profits soared to $2.12 a
shares versus expectations for $1.69 a share in earnings. The results were also
well above the $1.35 a share in earnings reported in the same quarter last
year.
Profits remained strong, even though the automaker said it incurred
special charges in the fourth quarter of $511 million related to a buyout
program for its Buick dealers and $657 million related to shuttering its
limited operation in Russia.
For 2023 GM forecast earnings per share between $6 and $7 a
share, and while that’s lower than its 2022 earnings, it is still stronger than
the $5.73 a share expected by Wall Street. Free cash flow is also expected to
be strong, coming in somewhere between $5 billion and $7 billion.
The earnings report was good news for investors, who have
been bracing for a destruction in demand due to mounting inflation and
recessionary pressures. However, GM said that demand for its vehicles and
pricing power remain strong, and it expects to see its business as pretty
consistent with 2022 results. GM also expects its electric vehicle demand to
continue growing strongly, with 400,000 EV’s projected for delivery between
2022 and the first half of 2023.
