Here are five things you should know for Friday, September 23:
1. – Stock futures expand amid global market downturn
US stock futures extended their decline to the fourth session in a row on Friday, while global stocks fell to their lowest levels in two years, as investors retreated from risk markets amid hawkish signals about the central bank rate and slowing global growth.
The Fed’s 75 basis point rate hike earlier this week, its third in a row, was echoed in both moves and rhetoric from central banks around the world this week, raising benchmark borrowing costs and shrinking global equities. .
The hawks have benefited, mostly, only the US dollar, which climbed to a 20-year high against its global peers despite the first intervention in the currency market from the Bank of Japan – aimed at boosting the weakening yen – since 1998.
Economic activity data from Europe underlined the impact of both rate hikes and upbeat signals, with Germany’s robust manufacturing sector pointing to a deep contraction in September and the region-wide composite PMI reading steady below the 50 point mark indicating growth for the second month in a row.
In the US, where the GDP forecast tool now from the Federal Reserve Bank of Atlanta reports third-quarter growth of just 0.3%, the bond market continues with recession warnings, with benchmark two-year bond yields surging to 4.16% overnight, putting them around 44 basis points north of the 10-year bond.
Meanwhile, the US dollar index rose another 0.61% during overnight trading to a two-decade high of 112.03, pushing the euro up to 0.9755 and the pound to its lowest against the dollar in more than 37 years.
Stocks in Europe are back in the red on Friday as well, with the Stoxx 600 down 0.92% in early Frankfurt trading and the FTSE 100 down 0.81% in London as Finance Minister Kwasi Quarting delivers the first budget under new Prime Minister Liz Truss.
This came after a 1.65% drop in the previous MSCI Japan Index in Asia as stocks in China remained stuck at four-month lows with renewed growth concerns in the world’s second largest economy.
In the US, S&P 500-related futures are pointing to an opening bell lower by 25 points, with the Dow Jones Industrial Average priced down 185 points. Technology-focused Nasdaq-related futures indicate a 100-point move to the downside.
2. – Costco beats fourth-quarter profit, but profit margins are under pressure
costco (cost) Stocks moved lower in pre-market trading after the wholesale retailer posted stronger-than-expected fourth-quarter earnings, but saw profit margins shrink amid higher input costs.
Costco said diluted earnings for the quarter rose 11.7% from a year ago to $4.20 per share on total revenue of $72.09 billion. Costco said same-store sales rose 13.7% globally and 15.8% in the United States, with e-commerce sales up 7.1%. Membership revenue increased 7.5% to $1.327 billion from the previous quarter and $4.224 billion from the year.
However, gross margins shrank about 80 basis points to 10.18%, Costco noted, while overall stocks were up 26% from a year ago, with some modest improvement over “only the past few weeks.”
Costco shares were marked down 2.5% in premarket trading to indicate an opening bell price of $475.15 per share, a move that would extend the stock’s six-month decline to about 15%.
3. – DocuSign Shares Get Rises From New CEO Appointment
DocuSign (DOCU) Shares rose in pre-market trading after an online signature selling group named former Google Advertising CEO Alan Thijson as the group’s CEO.
Thygesen, xxx, will replace interim CEO Maggie Wilderotter, who was appointed earlier this year following the departure of Dan Springer, who has run the group since 2017.
DocuSign, which has been struggling to attract investor interest as pandemic-era restrictions send more and more professionals back to their desks, earned 44 cents a share over the three months ending in July, beating Street expectations on a non-GAAP basis by nearly 2 cents. for each share.
The group also posted a 22% gain in revenue, of $622.2 million, and said full-year sales will likely rise to $2.47-2.48 billion and $2.57-$2.57 billion, thanks in part to an expanded partnership with Microsoft. MSFT. Which will see the tech giant use DocuSign products and services in contract management workflows.
DocuSign shares were marked 0.5% higher in pre-market trading to indicate an opening bell price of $54.25 per share.
4. – Boeing, former CEO of Muilenburg, agrees to a $200 million fine for the Public Electricity Corporation
Boeing (BA) along with former CEO Dennis Muilenburg, agreed to pay just over $200 million in fines to the US Securities and Exchange Commission for misleading investors in the wake of two fatal 737 Max crashes.
The SEC said Muilenburg, who left Boeing in 2019, will pay a $1 million fine, with Boeing paying $200 million, without either party admitting or denying the SEC’s allegations that they each made “materially misleading public statements after Boeing crashes in 2018 and 2019.”
Boeing has officially acknowledged that its software system played a role in two fatal 737 MAX 8 crashes in April of 2019.
The aircraft manufacturer said the fatal crash of Ethiopian Airlines Flight 302, which killed 157 people in Mach 2019, as well as the Lion Air 610 disaster in Indonesia in early October 2018, which killed 189 people, were caused by the activation. From the Maneuvering Characteristics Augmentation System, or MCAS, in response to a “wrong angle of attack information” from a broken sensor.
“In times of crisis and tragedy, it is especially important that public companies and CEOs provide full, fair and honest disclosures to the markets,” said Gary Gensler, SEC Chairman. “Boeing and its former CEO Dennis Muilenburg failed in this fundamental commitment.”
Boeing shares were down 0.25% in premarket trading to indicate an opening bell price of $138.35 per share.
5. – apples
apple (AAPL) Looks like he stole a walk on Amazon (AMZN) In the bidding war over the rights to the NFL Sunday Ticker programming package after reaching the deal late Thursday to sponsor the Super Bowl halftime show.
The National Football League said it has reached a multi-year agreement with Apple Music for the event, usually the most-watched of the year, which will take place with the AFC Championship in February. PepsiCo (PEP) The 10-year sponsorship deal expired in 2022.
The Super Bowl itself is scheduled to take place on February 12 at State Farm Stadium in Glendale, Arizona.
Apple, as well as Amazon and Google (The Google) They are said to be interested in the right to the Sunday Ticket package, currently offered by DirectTV, when this two-decade deal expires at the end of this season. It is estimated that the Sunday Ticket package could come in at a price of around $2 billion per year.
Amazon has already dug its toe into the waters of streaming live sports, and recently paid $1 billion for the rights to broadcast Thursday night matches over the next eleven years.