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International Market Update
- European stock markets closed higher Wednesday as global markets tried to recover from a widespread pullback in the previous session. The pan-European Stoxx 600 closed up about 0.8%. Oil and gas stocks climbed 2.1% to lead gains, while most sectors and major bourses were in positive territory. Germany’s GDP grew 0.2% in the first quarter of 2022, the Federal Statistical Office said Wednesday, as Europe’s largest economy narrowly avoided a recession thanks to strong construction and machinery spending.
- U.S. stocks rose Wednesday after minutes from the Federal Reserve’s May meeting showed the central bank is poised to raise interest rates further than the market had expected. Retailers also remained in focus Wednesday, leading the market higher after the major averages opened in negative territory. The turnaround followed a report that bidders are still competing to acquire Kohl’s, whose shares rose nearly 11.9%. Nordstrom shares jumped more than 14% after the company beat sales expectations and raised its full-year outlook.
- Asia-Pacific stocks struggled for direction this morning after minutes from the U.S. Federal Reserve meeting showed officials emphasized the need to raise interest rates quickly and possibly more than markets had expected.
In International News
Snowflake shares fall as management forecasts lower-than-expected profit margin
Shares of Snowflake fell as much as 16% in extended trading Wednesday after the data analytics software maker disappointed analysts by saying it doesn’t expect a positive adjusted operating margin in the current quarter. Earnings were reported at a loss of 53 cents per share. The company’s revenue grew 85% year over year in the quarter ended April 30, it said in a statement. In the previous quarter, revenue was up 101%. Nearly all of Snowflake’s revenue came from product sales, which grew 84%, compared with 102% in the previous quarter. This is the use of Snowflake’s software to store and run queries on data stored in the system. Snowflake said it had no adjusted operating margin, while analysts surveyed by StreetAccount had predicted a margin of -1.2%.
Nvidia stock falls on weak forecast
Nvidia will slow its hiring pace and control spending as the company grapples with a challenging macroeconomic environment, its chief financial officer Colette Kress said after the company reported first-quarter results Wednesday. Nvidia beat analysts’ expectations for revenue and profit, but its shares fell more than 10% in extended trading after the chipmaker issued weak guidance for the current quarter. Nvidia said revenue for the current quarter would be about $8.1 billion, below analysts’ expectations of $8.54 billion. Nvidia shares have fallen more than 43% so far in 2022 as investors shun fast-growing stocks in favor of safer investments at a time of high inflation and macroeconomic uncertainty.