Before an hour
Europe stocks open higher
European equity markets were upbeat early Friday, with the benchmark Stoxx 600 index up 0.4% as of 8:30am London time.
Most sectors posted gains, with mining stocks up 1.7% and oil & gas up 1%, while healthcare fell 0.4%.
France’s CAC 40 rose 0.74%, while Germany’s DAX and Britain’s FTSE 100 gained 0.64% and 0.5%, respectively.
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Stoxx 600 index.
6 hours ago
The Senate passes a bill raising the debt ceiling, preventing a default
The Senate passed a bill raising the debt ceiling Thursday night and sent it to President Joe Biden.
He is expected to sign the law into law on Friday, preventing the US’s first national bankruptcy.
Passed by the House of Representatives, the compromise bill was passed by the Senate by a majority of 63 to 36 and garnered enough bipartisan support to clear the chamber’s 60-vote threshold and avoid a filibuster.
US stock futures were slightly higher before the vote and stayed at that level after the bill passed. Futures linked to the Dow Jones Industrial Average rose about 30 points.
— Christine Wang, Christina Wilkie
6 hours ago
Hong Kong’s Hang Seng Index climbs 3% as consumer staples and technology stocks rise
According to data from Refinitiv as of 10:30 am Hong Kong time, Hong Kong’s Hang Seng Index is up 3%, led by gains in technology and consumer stocks.
Among the top performers in the index was automaker Zhongsheng Group, up 8.70%. Sportswear company Li-Ning gained 6.72%.
Technology heavyweights Baidu and JD.Com also added gains, rising 5.59% and 4.26%, respectively. Meituan rose 4.52%. Tencent rose 4.5% and Alibaba rose 4.98%.
– Lee Ying Shan
8 hours ago
Oil prices edge up slightly ahead of OPEC+ meeting
Oil prices traded slightly above the flatline as traders await an OPEC+ meeting this weekend.
Global benchmark Brent was down slightly on Friday, down 0.2% to $74.44 a barrel, while US grade West Texas Intermediate was down 0.24% to $70.27 a barrel.
“If [OPEC] “Never mind, we could really see a price selloff, we saw a selloff this week,” said Matt Smith, Kpler’s senior oil analyst.
Portal, citing Alliance sources, reported that the oil cartel is unlikely to escalate its output cuts at the forthcoming meeting.
Smith predicts Brent prices could fall to $70 a barrel if OPEC maintains the status quo.
“Oil prices fell sharply in May, with the WTI benchmark falling below $70/b,” HSBC wrote in a June 1 report. The bank noted the decline came even as previously announced OPEC+ production cuts went into effect later in the month.
Aside from the uncertainty surrounding the US debt ceiling standoff, China’s subdued growth indicators also weighed on prices, the report said.
– Lee Ying Shan
10 hours ago
SentinelOne crater in guide section
Shares of SentinelOne plunged more than 35% in extended trading after the cybersecurity provider lowered its revenue guidance and reported mixed quarterly results.
According to FactSet, the company reported a lower-than-expected loss per share for the first quarter, but posted revenue that was slightly below Wall Street forecasts.
SentinelOne has lowered its full-year guidance, saying it now expects revenue of between $590 million and $600 million, compared to its previous guidance of $631 million to $640 million. Analysts polled by FactSet had forecast revenue of $637.1 million for the year.
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SentinelOne shares plunge on forecast cut
10 hours ago
MongoDB, Five Below are among the stocks making the biggest moves
These are some of the stocks making the biggest moves after the close:
MongoDB – MongoDB shares are up 23%. The data developer platform published a breakthrough guide. MongoDB expects second-quarter revenue to be between $388 million and $392 million, compared to analyst forecasts of $362 million per Refinitiv. MongoDB tops revenue and earnings numbers in its latest quarterly report.
Five Below – Shares of the discount chain were up 5% in extended trading. Five Below reported earnings of 67 cents per share, while analysts polled by Refinitiv estimated earnings of 63 cents per share. However, Five Below generated $726 million in revenue, compared to Wall Street’s forecast of $728 million. The forecast for the second quarter also fell short of analysts’ expectations.
PagerDuty – Shares of the digital operations management company plunged more than 14% after its IPO. PagerDuty reported adjusted earnings per share that beat Wall Street estimates, but issued a weaker-than-expected revenue guidance.
Read the full list of corporate moves after the bell here.
— Samantha Subin
10 hours ago
Individual investors reduced their bond allocation in May but increased their equity exposure
Investors reduced some of their exposure to fixed income securities in May, according to the American Association of Individual Investors.
The allocation to bonds and pension funds fell 0.9 percentage points to 14.8% last month. The association noted that this represents a decrease from the 26-month high set in April 2023.
Meanwhile, investors stocked up on stocks. Exposure to equities and equity funds rose 0.9 percentage points to 65.2%. They also added to their liquidity cushion and increased cash allocation by 0.1 percentage point to 20%.
– Darla Mercado
10 hours ago
Lululemon rises with earnings and forecast upgrade
Lululemon’s shares rose more than 13% after the bell on strong earnings that beat Wall Street expectations and an improved full-year outlook.
The athletic apparel retailer posted earnings of $2.28 per share on sales of $2 billion. Analysts polled by Refinitiv had expected earnings per share of $1.98 and revenue of $1.93 billion.
Revenue increased 24% compared to the prior-year period. Lululemon raised its full-year revenue guidance as the company benefited in part from improved freight rates and growth in China.
The company said it now expects full-year sales to be in the range of $9.44 billion to $9.51 billion. That’s up from the previous range of $9.31 billion and $9.41 billion, and above Wall Street’s forecast of $9.37 billion, according to Refinitiv. Earnings expectations also exceeded consensus estimates.
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Lululemon shares surge in earnings
11 hours ago