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International Market Update
- European stock markets closed lower Tuesday after hot inflation data revived concerns about the pace of monetary tightening by central banks. The pan-European Stoxx 600 fell 0.8% by the close, with retail stocks leading the losses with a 1.7% drop, while oil and gas stocks gained 0.3% on rising oil prices. For the month of May, the index closed down 0.85%. Inflation in the eurozone reached an annual rate of 8.1% in May, beating expectations and marking a seventh consecutive record high.
- U.S. stocks fell in choppy trading Tuesday as investors ended a rocky month that saw the S&P 500 flirt with a bear market on inflation and recession fears. After a holiday break. U.S. equity markets ended a roller-coaster May on Monday. The Dow and S&P 500 ended the month little changed, supported by a big rally the previous week. The Nasdaq lost about 2.1% for the month.
- Asia-Pacific stocks were mostly higher this morning as investors awaited the market’s reaction to the release of a private survey of Chinese industrial activity in May. China’s Caixin/Markit manufacturing purchasing managers’ index came in at 48.1 in May, an improvement from April’s reading of 46 but still below the 50 mark that separates expansion from contraction.
In International News
Victoria’s Secret reports profit above expectations, but warns of continued challenges
Victoria’s Secret reported a quarterly profit Tuesday that beat Wall Street expectations, but warned that the company could continue to face supply chain and distribution issues for the rest of the year. The Ohio-based lingerie retailer pointed out that it faced “supply chain headwinds” in the three months ended April 30, while surpassing last year’s sales increase that resulted from customer spending on the federal stimulus programme. For the three months ended April 30, net income was $76.14 million, or 93 cents per share, compared with net income of $174 million, or $1.97 per share a year earlier. Excluding one-time items, Victoria’s Secret earned $1.11 per share, above the 84 cents expected by analysts. Revenue fell 4.5% to $1.48 billion from $1.55 billion a year earlier, but was in line with Wall Street forecasts.
Salesforce stock jumps after raising profit forecast
Shares of Salesforce rose 8% in extended trading Tuesday after the enterprise software maker reported first-quarter results that beat analysts’ expectations and raised its full-year profit forecast. Adjusted earnings were 98 cents per share, compared with 94 cents per share that analysts had expected. Revenue was $7.41 billion, according to Refinitiv, versus $7.38 billion expected by analysts. Net income fell 94% to $28 million. The company saw lower gains from capital expenditures in the quarter, and sales and marketing costs rose. Salesforce said revenue from its Service Cloud for handling customer service requests brought in $1.76 billion, up nearly 17%. Revenue from its core Sales Cloud product for managing business opportunities contributed $1.63 billion, up about 18%.