Costco shares climb after hours on earnings beat
- Oops!Something went wrong.Please try again later.
Jennifer Rogers turns to Yahoo Finance's Seana Smith for the latest on Costco's stronger-than-expected second quarter earnings report.
A sharp drop in Treasury yields in the face of strong U.S. economic data is surprising market participants who expected the reflation-driven bond selloff of the first quarter to continue. U.S. Treasury yields notched their biggest drop since Nov. 12 on Thursday, even as March retail sales data came in much better than expected and jobless claims fell. All told, the yield on the benchmark 10-year U.S. Treasury has fallen nearly 20 basis points in April, reversing some of the dramatic rise in February and March and boosting a rally in growth and technology shares that has helped send markets to fresh records.
Euro zone politicians, courts and policy hawks will pose a stiff challenge this year to the ECB's resolve to pin down the bloc's borrowing costs, precisely at a time when higher U.S. Treasury yields are tempting investors away from European markets. The European Central Bank has held sovereign debt yields low through bond purchases, and recently increased buying in its 1.85 trillion-euro ($2.22 trillion) emergency stimulus scheme, known as PEPP. And it is no longer battling alone to support the euro economy, as the pandemic induced governments to spend more and to create an 800 billion-euro Recovery Fund, seeded by joint European Union borrowing.
FRANKFURT (Reuters) -Soaring Chinese demand for luxury Mercedes-Benz cars and higher prices drove a better-than-expected profit for Daimler in the first quarter, helping it navigate the coronavirus crisis. Mercedes-Benz sales in China hit 220,520 vehicles in the quarter, a rise of 60%, and outmatched the German carmaker's performance in Europe where they were up 1.8% to 192,302. "Favourable sales momentum at Mercedes-Benz Cars driven by all major regions, especially China, strongly supported the product mix and pricing in the first quarter," Daimler AG said in a statement on Friday.
(Bloomberg) -- U.S. stocks retreated after climbing to an all-time high. Treasuries fell with the dollar. Oil rallied.PayPal Holdings Inc. and Nvidia Corp. paced losses among tech companies in the S&P 500, which had fluctuated for much of Wednesday’s session as traders sifted through earnings from some of the world’s biggest banks. Bitcoin slid in the wake of the debut by cryptocurrency company Coinbase Global Inc. on the Nasdaq.Read: Goldman, JPMorgan Traders Show the Reddit Crowd How It’s DoneWith equities lingering near a record, investors are looking to the earnings season for further catalysts. Expectations of a strong profit rebound have helped markets rally, setting the bar high as reporting gets underway. More broadly, investors are monitoring vaccine developments for any threats to the economic recovery. The Federal Reserve said in its Beige Book that activity has picked up pace amid an improvement in consumer spending.“You’re going to see this tug-of-war continue within markets as investors weigh the prospects of a strengthening economy with the risk of rising inflationary pressures,” said Adam Phillips, managing director of portfolio strategy at EP Wealth Advisors.A quarter that began with retail investors declaring the end of the status quo on Wall Street just ended with big banks tallying surprisingly massive hauls. Goldman Sachs Group Inc. and JPMorgan Chase & Co. -- two of the most gilded names in finance -- kicked off bank earnings season with revenue windfalls from trading and dealmaking, defying warnings from within the industry that good times couldn’t last.Goldman Sachs’s stock jumped, while JPMorgan’s slipped -- undermined by concern over weak demand for loans.Some key events to watch this week:U.S. data including initial jobless claims, industrial production and retail sales come Thursday.China economic growth, industrial production and retail sales figures are on Friday.These are some of the main moves in financial markets:StocksThe S&P 500 fell 0.4% at 4 p.m. New York time.The Stoxx Europe 600 Index gained 0.2%.The MSCI Asia Pacific Index advanced 0.7%.CurrenciesThe Bloomberg Dollar Spot Index fell 0.2%.The euro climbed 0.3% to $1.1979.The Japanese yen appreciated 0.2% to 108.89 per dollar.BondsThe yield on two-year Treasuries rose less than one basis point to 0.16%.The yield on 10-year Treasuries rose two basis points to 1.63%.The yield on 30-year Treasuries climbed two basis points to 2.31%.CommoditiesWest Texas Intermediate crude gained 4.5% to $62.89 a barrel.Gold weakened 0.5% to $1,736.65 an ounce.For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.
Tencent Holdings Ltd raised $4.15 billion on Friday in its second major bond deal in less than a year as global investors were enticed by its attractive pricing and overlooked a regulatory crackdown on China's tech giants. Asia's most valuable company said in a statement it raised $500 million in a 10-year tranche, $900 million in 20-year debt, $1.75 billion in 30 year and $1 billion in 40-year debt. The enthusiastic response contrasted with investor jitters around some state-owned Chinese issuers this week as the delayed release of China Huarong Asset Management Co's annual earnings prompted concerns over its ability to repay offshore debt.
Dick Parsons could bring a critical eye to some of the decentralized finance protocols that look like structured products, said Celo co-founder Rene Reinsberg.
Citibank has hinted there won't be any possible layoff and closure of physical branches in the countries it is exiting.
The IRS sent out COVID-19 relief checks to nearly 2M more Americans, including over 700,000 'plus-up' payments for people eligible for more money.
The IRS chief tells Congress the child tax credit payments will arrive on time after all.
Warren Buffett's famous economic measurement shows Orman might be onto something.
Chinese internet and social media giant Tencent Holdings Ltd plans to raise up to $4 billion in a bond launched on Thursday, two sources with direct knowledge of the matter said. The deal has been launched with 10-, 20-, 30- and 40-year tranches, according to a term sheet reviewed by Reuters. The deal sheet did not specify an exact figure but sources said the company was targeting to raise $4 billion from the issue, which would be its second major fundraising deal in a year.
China has given domestic and international banks permission to import large amounts of gold into the country, five sources familiar with the matter said, potentially helping to support gold prices after a months-long decline. China is the world's biggest gold consumer, gobbling up hundreds of tonnes worth tens of billions of dollars each year, but its imports plunged as the coronavirus spread and local demand dried up. With China's economy rebounding strongly since the second half of last year, its appetite for gold jewellery, bars and coins has also recovered, and since January domestic prices have been higher than global benchmark rates, making it profitable to import bullion.
Bitcoin fell early on Friday, after Turkey’s central bank decided to ban cryptocurrency payments from the end of the month.
Lawmakers and advocacy groups are pushing the president to take immediate action.
China's GDP expanded by a dizzying 18.3% in the first three months of 2021 from a year earlier, sealing its status as COVID-19's "first in, first out" economy. It was the only major economy that showed an increase in gross domestic product (GDP) last year after successfully controlling the spread of the coronavirus pandemic at home. HOW BIG IS CHINA'S FIRST-QUARTER GDP GROWTH EXACTLY?
Federal tax returns are due May 17, but many people still need to pay their first quarter 2021 estimated tax payments April 15. Plus more tax tips.
Coinbase is the first of many crypto startups to go public. But, as crypto continues to eat traditional finance, will those listings matter?
It’s not a good sign that wide divergences between the Dow Jones Industrial Average (DJIA) and the Nasdaq Composite Index (COMP) have become almost commonplace. Consider the number of trading sessions in which there is at least one percentage point spread between the returns of these two indices. On Tuesday, the Nasdaq rose 1.1% while the Dow fell 0.2%.
The investment comes a little over a week after Grayscale confirmed that it would convert GBTC into an ETF.
(Bloomberg) -- The chief executive officer of AMC Entertainment Holdings Inc. said the movie-theater chain is once again “under attack” from short sellers after skirting bankruptcy during the Covid-19 pandemic.The volume of short sales -- bets that the stock will go down -- rose about 50% in March to 73.8 million shares, CEO Adam Aron said in a discussion with the social-media finance commentator Trey Collins. In a wide-ranging interview, he also touched on a proposal to raise new equity and praised the meme investors who bid the stock up to more than $20 a share in January.The shares have since retreated from that lofty level. But they rose as much as 9.4% on Thursday after Aron said he has no immediate plans to issue any of the 500 million new shares the company is asking shareholders to authorize. The company won’t seek to sell those shares in 2021 but rather in the coming years. Aron is seeking to carry out a long-term growth plan that could silence AMC’s doubters.“There are strategies we have that are very good for AMC, to come out of this pandemic, to rebuild this company,” Aron said. “But not only get back to where we were, I’d like to keep going. And I’d like to grow this company even more so.”Shirting CollapseAron also reflected on the difficult stretch the theater chain endured. In 2019, revenue averaged $450 million a month. It slumped virtually to zero a little over a year ago, after the pandemic forced theaters to close. The chain was weeks away from running out of cash at least five times, and has since restructured its finances, banking enough cash to last through most of 2021.Other theaters have succumbed to the Covid-19-struggle. ArcLight Cinemas and Pacific Theatres, two jointly owned California movie-theater chains, announced plans this week to close permanently, underscoring the still-tenuous state of the industry.If short-term funding needs arise, AMC has a prior authorization to sell 43 million new shares. Aron said that’s enough to get the company through the pandemic, but limits its growth opportunities. If investors at the May 4 annual meeting approve the plan for additional stock, he’ll gain flexibility to buy back debt at a discount or acquire another chain at an attractive price, which would counteract any dilution.The theater chain has about 450 million shares outstanding now, according to data compiled by Bloomberg. Aron’s remarks were included in a regulatory filing Thursday.Praise for TradersAron, who has long been known as outspoken, also praised the internet investors who see themselves as fighting against “conventional” market participants, like short sellers who profit when stock prices decline. He connected with Collins, who offers online investment commentary under the username Trey’s Trades, after his 30-year-old son saw a tweet that Collins had sent to his nearly 50,000 followers, known as “apes.”“My hat’s off to you,” Aron said. “I’m well aware that you have been talking about AMC a lot over the last few months and you have, you know, hundreds of thousands of subscribers, tens and tens of thousands of people watching your shows on the YouTube channel,” Aron said.“I actually work for you,” he said, “and for that reason it’s a special reason for me to engage with all of you.”For more articles like this, please visit us at bloomberg.comSubscribe now to stay ahead with the most trusted business news source.©2021 Bloomberg L.P.