The Federal Reserve raised its target interest rate by a quarter of a percentage point on Wednesday, yet continued to promise "ongoing increases" in borrowing costs as part of its still unresolved battle against inflation. The S&P 500 and the Nasdaq rallied to higher closes on Wednesday after Federal Reserve chair Jerome Powell acknowledged that inflation was starting to ease following a quarter-point rate hike by the U.S. central bank. Wall Street's major indexes lost ground immediately after the statement, then started to regain ground after Powell responded to reporters roughly a half hour later.
In the GCC, the Dubai stock market closed higher on Wednesday, outperforming the Gulf region, while Qatari stocks retreated amid volatile energy prices. The Qatari stock index dropped 1.2%, extending its losses for the third consecutive session with most of its constituent stocks in negative territory.
- An OPEC+ panel endorsed the oil producer group's current output policy at a meeting on Wednesday, leaving production cuts agreed upon last year in place amid?hopes of higher Chinese demand and uncertain prospects for Russian supply.?Ministers from OPEC+ countries met in a virtual gathering that sources said lasted less than 30 minutes.
- OPEC+ has long taken a cautious approach in its decision-making, as it contends with market supply-demand fundamentals, pressure from international consumers to help ease the burden on households, and the need to incentivize further investment into spare capacity. OPEC+ agreed to?cut its production target by 2 million barrels per day (bpd), about 2% of world demand,?from November last year until the end of 2023 to support the market.
Oil fell at the start of the year but has rallied, supported by hopes that Chinese demand will rebound, although fears of a global recession remain a drag on prices. Questions had arisen about whether prospective increases in Chinese demand could push the producers’ alliance to raise their output.
- Peloton Interactive (PTON) on Wednesday?forecasted current-quarter revenue above expectations, in an early sign, that its efforts to boost sales, including by selling on third-party platforms, were beginning to yield fruit. Shares of the fitness equipment maker jumped as much as?22.4% after it also reported a slowing cash burn on a string of cost-cutting measures.?
- The company’s reported net loss for the period was $335.4 million, or 98 cents per share, compared with a loss of $439.4 million, or $1.39 per share, a year earlier. While it’s the eighth quarter in a row the exercise company has reported losses, it’s the?narrowest loss Peloton has marked since its 2021?fiscal fourth quarter. Revenue dropped 30% compared with the year-ago period but exceeded the company’s expected range of $700 to $725 million.
- The company has generated almost?$824 million in subscription revenue?in the first half of fiscal 2023, compared to just $586 million for hardware. However, growth among subscribers appears to have slowed significantly for Peloton. The company ended Q2 with just over 3 million subscribers, up just 2% from the previous quarter.
Since new CEO Barry McCarthy took over, he has cut Peloton’s workforce by more than half, expanded its bike rental program nationwide, started selling certified pre-owned bikes, debuted a rowing machine, and partnered with Amazon and Dick’s Sporting Goods to sell its bikes and treads.
- Snap (SNAP) reported mixed fourth-quarter 2022 results, as efforts to improve cost efficiencies which began at the end of third-quarter 2022 helped offset modestly weak revenue. The firm also indicated that?revenue will likely decline year over year during the current quarter.?Its shares slid more than 14% in extended trading on Tuesday.?
- For the full year,?sales rose 12% to $4.6 billion in 2022.?In its earnings statement, Snap said it wouldn’t provide guidance for the next period. However, in the investor letter, the company said its “internal forecast” assumes a decline of between 2% and 10% from a year earlier.?
Even in a rough year for Big Tech as a whole, Snap's year stood out as uniquely tough. The company's shares tumbled around 80% throughout 2022, as it was rattled by slowed digital advertising, high inflation, and fast-growing competition from TikTok. In August, Snap laid off 20% of its workforce, a move that affected 1,300 employees.?
