US Stocks Rise
US stocks rose on Thursday after lower-than-expected inflation data increased hopes of a possible slowdown in the Federal Reserve’s tightening cycle. The S&P 500 (SPI:SP500) and Nasdaq (NASDAQI:NDX) both saw gains of 1.3% and 1.9% respectively. In Europe, stocks also edged higher on Friday, with the Stoxx 600 (STOXX:SSXP) up 0.2%, set for its longest weekly gaining streak since early December, amid expectations of central banks reaching a peak in their rate-hiking cycle.
Boeing Halts Deliveries
Boeing (NYSE:BA) has temporarily halted deliveries of some 737 MAX airplanes due to issues with fittings installed by a supplier. The Federal Aviation Administration has stated that there are no immediate safety concerns. However, shares of Boeing fell over 5% in after-hours trading, while Spirit stock dropped over 11%.
Schwab Investor Sells Stake
GQG Partners, one of Charles Schwab’s (NYSE:SCHW) largest investors, sold its entire $1.4 billion stake in the brokerage giant during last month’s banking turmoil. The Florida-based investment firm had been among Schwab’s top 15 shareholders, holding 1% of the stock. The sale was prompted by concerns over unrealized losses and the potential impact of deposit movements on the brokerage’s future growth.
Gold Prices Soar
Gold (GC:CMX) prices reached their highest level of the year on Thursday, driven by expectations of persistent inflation despite recent declines. The most actively traded gold-futures contract rose to $2,055.30 per troy ounce, up 13% year to date and approaching its record high from the summer of 2020. Some investors view gold as a hedge against inflation, and its rally this week follows data showing a slowdown in inflation.
Superdry Profit Warning
Superdry (LSE:SDRY) , the UK clothing retailer, expects profits for the year to fall short of previous guidance and is considering a capital increase. Poor sales, attributed to the cost of living crisis and bad weather, have impacted the sales of its spring-summer collection. The board has withdrawn its existing profit guidance and expects sales for this year to be between £615 million and £635 million, compared to £609 million last year. Superdry is exploring the possibility of raising equity of up to 20% of its issued share capital to strengthen its balance sheet.
Teck Rejects Merger
Canadian miner Teck Resources Ltd. (NYSE:TECK) has rejected an updated merger offer of approximately $23 billion from Glencore PLC. (LSE:GLEN) Teck believes that its own plan to split into two independent companies would be more beneficial to its shareholders. Glencore had initially proposed a merger that would create two separate companies for their merged metals and coal businesses, but Teck rejected it due to concerns over exposure to Glencore’s large thermal coal business. Glencore has since tweaked its proposal, offering Teck shareholders the option to take cash instead of shares in the combined coal operations.
Amazon’s AI Offerings
Amazon Web Services (NASDAQ:AMZN), the cloud computing division of Amazon, has announced new artificial intelligence offerings targeted at corporate customers. Unlike Google (NASDAQ:GOOG) and Microsoft (NASDAQ:MSFT), who have announced products for the general public, Amazon is focusing on providing AI tools and expanding access to custom-made chips that can run AI software more efficiently and cost-effectively.
Walmart Sells Bonobos
Walmart (NYSE:WMT) is selling Bonobos Inc., a menswear brand, for $75 million, significantly less than what it paid for it, in a move seen as unwinding some of its e-commerce ventures. The fashion retailer Express Inc. and management firm WHP Global will be acquiring Bonobos, with WHP Global purchasing the brand for $50 million and Express acquiring the operating assets and associated liabilities for $25 million.
Exxon CEO’s Compensation
Exxon Mobil Corp. (NYSE:XOM) CEO Darren Woods saw a 52% increase in his compensation to $35.9 million in 2022, as the company reported record profits. The majority of his compensation came from stock awards, totaling $24.9 million, which was up by over $11 million from the previous year. Mr. Woods also received a bonus of nearly $6.4 million, double his 2021 bonus, and his annual salary rose by 5% to $1.7 million. Other components of his compensation included his pension and personal use of the company’s jet. Exxon did not provide a comment on the matter.
IBM Considers Weather Sale
IBM (NYSE:IBM) is reportedly considering a sale of its weather operation as part of its efforts to streamline its operations, according to sources familiar with the matter. The auction of the business is still in its early stages and a deal may not materialize. If a deal does happen, private equity firms are most likely to be the potential buyers, with the deal estimated to be valued at over $1 billion. IBM had acquired the weather business in 2015, which included Weather.com, a global provider of weather forecasts, for a reported price of over $2 billion.
Berkshire Hathaway Japanese Bonds Sold
Berkshire Hathaway Inc. (NYSE:BRK-A) recently sold 164.4 billion yen ($1.2 billion) of bonds, incurring higher costs as it faced increased speculation about the Bank of Japan’s policy tightening. The renowned firm, known for being one of the largest overseas issuers of yen debt, paid higher spreads across all five tenors compared to its previous deal in December, with all-in costs reflecting a steeper jump in borrowing for this transaction. The five-year note issued by Berkshire Hathaway priced to yield 1.135% in this recent sale.