Commodities & Agriculture:
• Brent crude futures (UKOIL) were down by $4.78, or -4.5%, at $102.32 a barrel by 1112 GMT, having earlier sunk as low as $101.48.
• U.S. West Texas Intermediate crude (USOIL) was down $4.91, or -4.7%, at $99.18 after hitting a session low of $98.40.
• The dollar index, a measure against six counterparts, with the euro most heavily weighted, was up +0.3% at 108.45. It had earlier climbed to 108.47, its highest since October 2002.
• The euro has borne the brunt of dollar strength (EUR/USD), falling as low as $1.00005, the weakest since December 2002, a level some analysts flagged as parity being tested. By 1020 GMT it was changing hands at $1.00170, down -0.2%.
• The dollar slipped however to 136.94 yen (USD/JPY) , down -0.4%, following Monday’s jump to new 24-year highs at 137.75.
During Market hours on Yesterday (Monday – 11.07.2022):
• The Dow (Symbol: DIA) went down -0.56%. The S&P 500 (Symbol: SPY) lost -1.14%. and the Nasdaq (Symbol: QQQ) fell -2.14%.
• Twitter (Symbol: TWTR) — Shares of the social media company dropped more than 8% after Elon Musk walked away from his $44 billion deal to buy Twitter. Musk alleged that Twitter under-reported the number of spam bots on the platform. The two parties are likely set for a protracted court battle, and Musk could also be faced with paying a $1 billion breakup fee.
• Meta Platforms (Symbol: META) — The social media company’s stock dropped -4.2% after Needham downgraded it to underperform from hold. The firm pointed to Meta’s heavy investments into the metaverse, which may take too long to pay off.
• Uber (Symbol: UBER) — The ridesharing stock fell more than -4% following a report by the International Consortium of Investigative Journalists that said Uber has lobbied extensively to relax labor and tax laws and used “stealth technology” to block government scrutiny. The company issued a statement acknowledging prior mistakes and emphasizing Uber “is a different company today.”
• Nio (Symbol: NIO) — Nio shares slid -8.4% as China appears to be battling another wave of Covid-19. Reuters reported that multiple Chinese cities have imposed new health restrictions. The automaker also announced that it has formed a committee to investigate allegations made against Nio by a short-seller last month.
• Amazon (Symbol: AMZN) — The ecommerce giant lost -2.3% after Bloomberg reported that the number of U.S. Prime customers stalled in the first half of the year, possibly in part because of the $20 membership price hike that took place in February. Amazon had 172 million members on June 30, level with six months prior, the report said, citing Consumer Intelligence Research Partners.
During Premarket hours today (Tuesday – 12.07.2022):
• PepsiCo (Symbol: PEP) — The beverage and snack giant reported an adjusted quarterly profit of $1.86 per share, 12 cents above estimates, and revenue topped Wall Street forecasts. The company also raised its full-year forecast as consumer demand holds up even as prices rise. PepsiCo gained +1.2% in the premarket.
• Gap (Symbol: GPS) — The apparel retailer’s stock slumped -6.3% in the premarket after CEO Sonia Syngal stepped down after two years on the job. She’ll be replaced on an interim basis by executive chairman and former Walmart executive Bob Martin.
• Twitter (Symbol: TWTR) — Twitter sent a letter to Elon Musk saying it did not breach any of its obligations under their takeover agreement and that his effort to back out of the deal was “invalid and wrongful.” Twitter shares have fallen -15.8% over the past 2 trading days.
• American Express (Symbol: AXP) — American Express shares fell -2.6% in premarket action after Morgan Stanley downgraded the financial services giant to “equal-weight” from “overweight.” The firm said the risk of recession is not fully priced into American Express’ stock.
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