US stock indexes closed with a rise in indices by a percentage

The US stock market ended the session on Friday, the first trading day of the third quarter, with the growth of the main indicators, which recovered from losses in early trading ahead of the long weekend.

The value of the Dow Jones at the end of trading on Friday increased by 1.05% to 31097.26 points.

The Standard & Poor’s 500 rose 1.06% to 3,825.33 points.

The Nasdaq Composite gained 0.9% to 11,127.85 points.

Meanwhile, at the end of the week, all three indicators showed a decrease: Dow Jones lost 1.3%, S&P 500 – 2.2%, Nasdaq – 4.1%.

The US stock exchanges are closed on Monday on the occasion of Independence Day celebrations.

Market participants on Friday evaluated statistical data and a fresh batch of corporate news.

The index of business activity in the US manufacturing sector (ISM Manufacturing) in June fell to 53 points compared with 56.1 points a month earlier, according to data from the Institute of Supply Management (ISM). This is the minimum level for the last two years. Experts on average expected a less significant decline – up to 54.9 points, according to Trading Economics.

The index value above 50 points indicates an increase in business activity in the manufacturing sector, below – its weakening.

The American manufacturer of memory chips Micron Technology Inc (NASDAQ:MU). increased net profit in the third fiscal quarter of 2022 by 1.5 times, revenue – by 16%, however, the company gave a forecast for the current quarter that did not meet analysts’ expectations. The company’s shares fell by 2.95% following the results of trading.

Kohl’s Corp. Papers collapsed by 19.64%. The American retailer has confirmed that it has stopped negotiations with the Franchise Group Inc. holding company on the sale of the business. In addition, the company lowered its revenue forecast for the second fiscal quarter, citing a decrease in consumer spending amid high inflation.

Meanwhile, shares of automaker General Motors (NYSE:GM) Co. rose 1.35%, although the company disappointed investors with its profit forecast for the second quarter of this year amid a shortage of semiconductor components.

McDonald’s Corp. stock quotes up 2.5%, Coca-Cola Co (NYSE:KO). – by 2.4%, Boeing Co. (SPB: NYSE:BA) – by 2.3%. The growth of these securities contributed to the rise of the Dow Jones Industrial Average.

Oil prices are slightly declining

Oil quotes are slightly declining on Monday morning after rising following the results of the previous week.

The cost of September Brent crude futures on the London ICE Futures exchange by 8:15 Moscow time on Monday is $111.61 per barrel, which is $0.02 (0.02%) lower than the closing price of the previous session. Following the results of trading on Friday, these contracts rose by $2.6 (2.4%) to $111.63 per barrel.

The price of WTI oil futures for August at electronic trading on the New York Mercantile Exchange (NYMEX) is $108.37 per barrel by this time, which is $0.06 (0.06%) lower than the final value of the previous session. By the close of the market on Friday, the value of these contracts increased by $2.67 (2.5%), to $108.43 per barrel.

The price of Brent over the past week rose by 2.3%, WTI rose by 0.8%, according to Dow Jones Market Data.

More than a thousand new companies entered the register for preferential IT mortgages – The Ministry of Finance

The list of IT companies that meet the conditions for providing their employees with preferential mortgages has increased by more than 1 thousand organizations, the Ministry of Finance said in a statement.

There are more than 10 thousand companies in the updated register. To be included in this list, an organization must be accredited by the Ministry of Finance and receive tax benefits. The list is regularly updated based on the data of the Federal Tax Service.

Employees of IT companies who meet the following criteria can apply for a preferential mortgage:

– Russian citizenship;

– work in an accredited IT company that enjoys tax benefits;

– age from 22 to 44 years inclusive;

– salary (before deduction of personal income tax): from 150 thousand rubles in cities with millions and from 100 thousand rubles for employees of IT companies from other localities. The amount for the last three months before applying for a loan is taken into account.

Until 2024, at least 50 thousand specialists will be able to use the program, and the total amount of loans will amount to more than 240 billion rubles. The maximum rate is 5% (a number of regions can reduce it by regional programs to 2% or 1%). The initial payment must be at least 15%, the Ministry of Finance said in a statement.

St. Petersburg will allocate up to 1.8 billion rubles for the purchase of 105 buses.

SUE “Passagiravtotrans” of St. Petersburg announced three auctions for the purchase of a total of 105 single-section buses, it follows from the materials on the website of the unified information system in the field of public procurement.

According to the documentation, in two auctions we are talking about the purchase of 25 large-class diesel buses with a 100% low floor level location.

Applications for two auctions will be accepted until July 18. 25 buses under one of the contracts should be handed over to the customer by the end of September, under the second – by the end of October this year.

The initial price of each of the two contracts is 499.2 million rubles.

According to the third auction, St. Petersburg intends to purchase 55 medium-class diesel buses with 100% low floor level.

Applications for the auction will also be accepted until July 18. 25 buses should arrive by the end of October, another 30 – by the end of November this year.

The initial price of the contract is 769.5 million rubles.

“The purpose of this purchase is to update the fleet of buses for social transportation instead of buses that have worked out their operational life. The replacement of rolling stock will improve the quality of passenger transportation, increase the safety of passenger bus transportation on social routes,” follows from the terms of reference posted on the public procurement website.

Earlier, Passazhiravtotrans has already purchased 48 single-section buses of a large class, which should arrive in the city by September 2022, as well as 35 two-section buses of a particularly large class. This technique should appear in St. Petersburg before November 15 of this year.

In some European countries, an increase in the incidence of COVID-19 has been recorded

A number of European countries are concerned about the growing incidence of coronavirus, as well as an increase in the number of hospitalizations due to COVID-19, local media report.

So, in Italy, more than 86.3 thousand cases of coronavirus were detected per day, the day before – 83.2 thousand. Over the past 24 hours, 72 people have died after being infected with coronavirus. The Italian Ministry of Health noted that the number of people who currently have confirmed COVID-19 is almost 1 million people.

In the UK, in turn, an increase of almost three times in the number of COVID-19 cases was recorded in a week. According to British media, about 2.3 million coronavirus cases were reported in the UK at the end of June. British experts believe that this year the country may face a new wave of morbidity.

According to the French medical services, more than 133 thousand cases of coronavirus were detected in the country on Thursday, this figure increased by 67% compared to the previous week. In addition, in France, there is a significant increase in the level of hospitalizations among the elderly – over the age of 80 years.

On the eve of the WHO reported that they expect a “high level” of the spread of coronavirus in Europe this summer. According to the organization, there is an increase in morbidity in almost all countries of the region, and the highest rates are recorded in Austria, France, Germany, Greece, Luxembourg, Portugal and Cyprus.

PIK shareholders have decided not to pay dividends for 2021

The shareholders of the developer “PIK” approved the decision not to pay dividends for 2021, the company said.

Last year, PIK transferred to shareholders 22.51 rubles per share by the end of 2020 and another 22.92 rubles per share for the first quarter of 2021 – a total of about 30 billion rubles.

According to the results of the meeting, the board of directors of “PIKK (MCX:PIKK)” included the company’s managers Yuri Ilyin, Dmitry Timofeev, Ilya Balandin, Ivan Polandov, Gennady Rosso, a representative of the main shareholder Alexey Karpenko, as well as independent Alexey Blanin, Zumrud Rustamova and Natalia Yakovleva. The main shareholder and head of PIK, Sergey Gordeev, who was previously a member of the board of directors, was not nominated for re-election.

GC PIK is the largest Russian development company. The controlling shareholder is Gordeev. The company’s shares are traded on the Moscow Stock Exchange.

The number of operating oil and gas drilling rigs in the world in June reached the maximum in more than 2 years

The number of oil and gas drilling rigs operating in the world in June increased for the second month in a row and reached a maximum in more than two years – since March 2020, according to data from the American oilfield services company Baker Hughes.

On average, 1,706 installations were operating in the world last month, compared to 1,628 in May. At the same time, the June level is 381 units higher than the figure for the same month in 2021.

In the United States, the number of drilling rigs last month increased by 78 compared to May and amounted to 739, which is also the highest figure since March 2020. In Canada, their number increased by 50 to 143.

The number of installations over the past month in the Asia-Pacific region increased by 3 (to 196), in Europe – by 8 (to 87), in Africa – by 2 (to 78), in Latin America – by 5 (to 160). Meanwhile, in the Middle East, their number decreased by 11 to 303.

Baker Hughes has been publishing data on operating drilling rigs since 1944. At first, the company collected information only in the USA and Canada, since 1975 – worldwide. Since June 2019, it has included in its calculations the number of drilling rigs in Ukraine, while there has been no recalculation of summary data for Europe for previous periods in this regard.

The average monthly number of operating oil and gas drilling rigs in the world last year increased to 1,361 from the historical minimum of 1,352 recorded at the end of 2020. The record was reached in 1981 – 5624 installations.

American companies in the 1st half of the year reduced the issue of bonds by 15%

American companies in the first half of the year reduced bond issuance amid rising interest rates, increased inflation and economic uncertainty, writes The Wall Street Journal.

The total volume of placements of companies with an investment-grade rating amounted to $515.71 billion compared to $603.34 billion in January-June last year, that is, it decreased by about 15%, according to Refinitiv data.

The number of large ones included the placement of an online retailer Amazon.com Inc (NASDAQ:AMZN). for $12.7 billion, pharmaceutical Bristol Myers Squibb (SPB: BMY) for almost $6 billion and home goods store chain Lowe”s Cos. for about $5 billion.

At the same time, bankers expect a further decline in volumes in the second half of the year.

“With the increase in financing costs,” such fundraising becomes less attractive, says Dan Mead of Bank of America (NYSE:BAC). “Over the past two years, issuers have accumulated quite large cash positions, and some of them now intend to use some of the money to repay the debt instead of refinancing,” he believes.

Companies with “speculative” ratings raised $54.77 billion in the first half of the year by issuing bonds against $256.1 billion in the same period last year. Thus, the drop was almost 79%.

The number of issuers in this category included the automaker Ford Motor (NYSE:F), social network Twitter (NYSE:TWTR) and retailer Macy’s Inc.

In January-March, American companies placed convertible bonds in the amount of $8.5 billion, which is significantly lower than last year’s figure of $52.47 billion.

Meanwhile, the volume of raising funds with the help of “revolving” loans in January-June increased by almost 12% – to $840.67 billion from $752 billion a year earlier. In particular, they were used by retailer American Eagle Outfitters Inc. and packaging manufacturer Ball Corp (NYSE:BALL).

Audi starts construction of electric car factory in China

The German automaker Audi AG, part of the Volkswagen group (ETR:VOWG), and the Chinese FAW have begun construction of a plant for the production of electric vehicles in Changchun, located in the northeast of China. The companies plan to complete it at the end of 2024, the Xinhua news agency reports.

The capacity of the enterprise is designed to produce 150 thousand cars per year. Initially, it is planned to produce models A6 e-tron and Q6 e-tron.

Audi owns a controlling stake in the joint venture Audi FAW NEV Co. The German company’s investments in it and the construction of the plant amount to 2.6 billion euros.

Two out of three electric vehicles sold in the first quarter of this year were purchased by buyers in China, according to calculations by PwC Strategy.

The Chinese market is the largest in the world in terms of sales of cars with electric motors. In January-May, the country sold over 2 million cars powered by new energy sources (NEV), which is more than double the figure for the same period last year, according to the Chinese Association of Automobile Manufacturers (CAAM). NEV accounts for 21% of the country’s car market.

China is also the largest market for German automakers, accounting for 39% of sales in January-March, according to Ernst & Young calculations.

In 2021, Audi sold almost 701.3 thousand cars on the Chinese market.

General Motors gave a weak profit forecast for the 2nd quarter amid a shortage of microchips

American automaker General Motors Co. (NYSE:GM) disappointed investors with its profit forecast for the second quarter of this year amid a shortage of semiconductor components.

According to GM’s forecast, the company’s profit in April-June amounted to $1.6-1.9 billion, while analysts surveyed by FactSet expected this figure at $2.46 billion.

The company notes that about 95 thousand cars are waiting for certain microchips and cannot be sold before they arrive.

At the same time, GM confirmed its forecast for the current year as a whole, providing for net income in the range of $9.6 billion to $11.2 billion, as well as adjusted earnings of $5.76 to $6.76 per share.

GM shares, which were falling during the preliminary session, are gaining 3% in price at the beginning of trading on Friday. Since the beginning of this year, the company’s capitalization has fallen by 44% to $46.3 billion.

The US stock market has moved to growth

The main indicators of the US stock market moved to growth during trading on Friday after an initial decline.

The US stock market ended the last trading of the second quarter on the eve of a significant drop. At the same time, the decline in the S&P 500 index in the first half of the year was the highest since 1970. Market participants evaluate statistical data and a fresh batch of corporate news.

The index of business activity in the US manufacturing sector (ISM Manufacturing) in June fell to 53 points compared with 56.1 points a month earlier, according to data from the Institute of Supply Management (ISM).

This is the minimum level for the last two years. Experts on average expected a less significant decline – up to 54.9 points, according to Trading Economics. The index value above 50 points indicates an increase in business activity in the manufacturing sector, below – its weakening.

The value of the Dow Jones Industrial Average rose by 0.09% to 30,803.20 points by 17:04 Moscow time.

The Standard & Poor’s 500 has risen 0.15% to 3,790.93 points since the market opened.

The Nasdaq Composite gained 0.25% by this time and amounted to 11056.37 points.

The American manufacturer of memory chips Micron Technolog Inc. increased its net profit in the third fiscal quarter of 2022 by 1.5 times, revenue by 16%, but the company gave a forecast for the current quarter that did not meet analysts’ expectations. The company’s shares are falling by 4.6% during preliminary trading.

Shares of automaker General Motors (NYSE:GM) Co. are up 1.5%, although the company disappointed investors with its profit forecast for the second quarter of this year amid a shortage of semiconductor components.

Meanwhile, Kohl’s Corp (NYSE:KSS) securities. they are falling by 20.9%. The American retailer confirmed that it had stopped negotiations with the Franchise Group Inc. holding on the sale of the business. In addition, the company lowered its revenue forecast for the second fiscal quarter, citing a decrease in consumer spending amid high inflation.

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