Daily Morning Note – 10 February 2022
U.S. stocks climbed Wednesday, leaving the Nasdaq Composite up 2.1%, as a bond selloff eased up a day ahead of an eagerly anticipated inflation report, and as investors absorbed another batch of earnings reports. The Dow Jones Industrial Average rose 305.28 points, or 0.9%, ending at 35,768.06.
The S&P 500 gained 65.64 points, or 1.5%, finishing at 4,587.18. The Nasdaq Composite advanced 295.92 points, or 2.1% closing at 14,490.37. That marked its best daily percentage climb since Jan. 31, according to Dow Jones Market Data. Investors on Wednesday enjoyed a breather from a recent bond selloff. The yield on the 10-year Treasury note fell 2.6 basis points to 1.928% after reaching 1.954% on Tuesday, its highest since 2019. Gains were the sharpest for the S&P 500’s technology and communications sectors, up 2.3% and 2.5%, respectively, with shares of Meta Platforms FB closing 5.4% higher to halt a 4-day losing streak. But investors were still keeping an eye on the key 2% level on the 10-year Treasury, especially as important inflation data looms for Thursday. Annual consumer price inflation is expected to rise to 7.2% for January, after reaching a 40-year high of 7% in December.
Creative Technology posted a net profit of US$1.2 million for the half year ended Dec 31, 2021, rising from US$45,000 in the corresponding period a year ago, lifted by a gain arising from the disposal of a property. Sales slid 28 per cent year-on-year to US$34.1 million, hit by the global shortage of semiconductors and delays in shipping schedules.
Frasers Property’s hospitality portfolio remains challenged by pandemic headwinds, the company said in a first-quarter business update late on Wednesday (Feb 9), even as it reported higher revenue per average room (RevPAR) across its Asia-Pacific (ex-North Asia) and Europe portfolios. “(The) emergence of the Omicron variant from December 2021 and subsequent surge in infections pose a setback to recovery trajectory,” Frasers Property said.
United Overseas Insurance (UOI), the general insurance arm of UOB, saw net profit go up 10.3 per cent to S$26.6 million for the full-year ended Dec 31, 2021. This was buoyed by an increase in non-underwriting income, which grew 42 per cent to S$12 million, as compared to S$8.5 million in the corresponding period last year, due to unrealised gains from revaluation of investment property, UOI said in a bourse filing on Wednesday (Feb 9).
Steel solutions provide BRC Asia recorded S$13.3 million in net profit for the first quarter ended Dec 31, 2021, up 38.8 per cent from the year-ago period. Revenue for the quarter stood at S$375 million, up 67.5 per cent from the S$213 million it posted a year ago, the company said in a business update on Wednesday (Feb 9). As at Dec 31 last year, its sales order book stood at approximately S$1.3 billion. The duration of projects in the order book ranges up to 5 years.
Hutchison Port Holdings Trust (HPH Trust) posted a distribution per unit (DPU) of 8 Hong Kong cents for its second half ended Dec 31, 2021, up 3.9 per cent from 7.7 cents a year ago. This brings its DPU for the full year to 14.5 cents, from 12 cents in the year-ago period, HPH Trust said in a bourse filing on Wednesday (Feb 9).
Walt Disney‘s strong subscriber growth at Disney+ restored faith in the future of streaming video and came on top of surging attendance at US theme parks, lifting shares 8 per cent after hours on Wednesday. Disney chief executive Bob Chapek said he still believes the streaming service, home to hits like The Mandalorian and Black Widow, will have 230 million to 260 million subscribers by 2024. The company added 11.8 million Disney+ subscribers in the first quarter. And the company forecast stronger subscriber growth in the second half of its year than in the first half.
Uber reported fourth-quarter earnings after the bell on Wednesday. The company beat analyst estimates on revenue for the quarter and said it’s starting to bounce back from headwinds caused by the omicron coronavirus surge. The company’s stock was up more than 6% in after-hours trading. The company reported a net income of $892 million, which includes a $1.4 billion net benefit, pretax, related to its equity investments.
Shares of cloud communications software builder Twilio jumped as much as 29% after the company issued fourth-quarter results and quarterly revenue guidance that sped past expectations. Revenue increased 54% year over year, compared with 65% growth in the third quarter, according to a statement.
CVS Health said Wednesday that demand for Covid vaccines and at-home tests lifted overall store sales, helping the company top expectations for fourth-quarter earnings. Shares fell 5.45% to close Wednesday at $104.79, after the company reiterated rather than raised its fiscal 2022 forecast earlier in the day.
Source: SGX Masnet, The Business Times, Bloomberg, Channel NewsAsia, Reuters, CNBC, PSR
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