Sharing our Daily Market Overview with you, ensuring that you do not miss out on any important market changes!
International Market Update
- European markets closed slightly weaker Wednesday after ending May in negative territory as traders continued to assess new data on inflation and economic activity. The pan-European Stoxx 600 index ended the trading day down just over 1% after fluctuating since the open. Auto stocks gained 1.3%, while utilities fell 1.27%. Eurozone inflation hit an annual rate of 8.1% in May, beating expectations and marking a seventh straight record high. Investors are watching closely for any indication from the European Central Bank on the pace and size of interest rate hikes needed to contain consumer prices.
- U.S. stock markets retreated Wednesday in choppy trading on concerns about the health of the economy, while Wall Street rang in a new month after a volatile May. Financials were the worst-performing sector in the S&P 500 on Wednesday, with Goldman Sachs and
JPMorgan Chase each fell more than 1%. Among the biggest laggards in the S&P 500 were commodity stocks typically associated with the business cycle. Albemarle fell 7.8% and Mosaic lost 6.1%. Travel industry stocks also struggled Wednesday. Norwegian Cruise Line and United Airlines each fell 4.5%.
- Asia-Pacific stocks slipped today after Australia’s April trade surplus came in higher than expected. Australia’s trade surplus rose to 10.495 billion Australian dollars ($7.525 billion) in April, according to data released today by the Australian Bureau of Statistics.
In International News
GameStop reports $158 million loss and decline in hardware sales
GameStop on Wednesday reported first-quarter revenue of $1.38 billion, up slightly from $1.27 billion in the year-ago quarter. The company also reported a net loss of $157.9 million, higher than the net loss of $66 million in the year-ago quarter. The loss per share was $2.08, which is not comparable to estimates, while revenue was reported at $1.38 billion. GameStop generated $673.8 million in sales from hardware such as game consoles and accessories, accounting for 48.9% of total sales. That was down from $703.5 million in the year-ago quarter.
Software revenue was $483.7 million, down from $397.9 million in the year-ago quarter, and $220.9 million in collectibles, down from $175.4 million in the first quarter of 2021.
Facebook parent company Meta COO Sheryl Sandberg resigns
Sheryl Sandberg is stepping down from her role as chief operating officer at Meta, the company formerly known as Facebook. Sandberg joined Facebook in early 2008 and was Facebook’s No. 2 CEO and co-founder Mark Zuckerberg in and helped turn Facebook into an advertising juggernaut and one of the most powerful companies in tech, with a market capitalization that at one point exceeded $1 trillion. Javier Olivan, the company’s chief growth officer, will take over as head of COO in the fall. Sandberg, who informed Zuckerberg of her decision last weekend, will continue to serve on Meta’s board. “Over the next few months, Mark and I will replace my direct reports,” Sandberg said in a lengthy Facebook post about her resignation. Meta is also planning an internal restructuring to go along with the change, Zuckerberg said.