On Thursday, U.S. stock indexes closed with a decline, wiping out their earlier progress as Treasury yields increased following a lackluster auction of 30-year bonds. Despite strong earnings reports from well-known corporations like Disney and PepsiCo, the auction had a greater impact on market performance.?
Saudi and Qatari stock markets fell on Thursday as expectations of higher interest rates in the United States dampened investor sentiment, while the Egyptian index outperformed the region on government plans to sell stakes in 32 firms over the next year.?
- The non-oil private sector economy in Dubai continued to thrive in January, with business activity expanding for?nine consecutive months?due to increased consumer demand and employment in the emirate. Despite a?slight decrease in the S&P Global purchasing managers' index to 54.5?in January (from 55.2 in December), the reading remained well above the 50 thresholds, signaling sustained economic growth.
- The Gulf state, a key OPEC producer, has invested heavily in transport and logistics infrastructure, and expanded economic partnerships to diversify away from hydrocarbons and towards becoming a global trade hub.?Non-oil exports grew 6% in 2022?from the previous year to 366 billion dirhams.?
Dubai's economy expanded by 4.6% on an annual basis in the first nine months of 2022, with wholesale and retail trade accounting for 24.1%of its gross domestic product, according to the Dubai Statistics Centre data. Emirates NBD estimates Dubai's full-year 2022 growth at 5%. It expects the emirate’s GDP to grow by 3.5%in 2023.
- PepsiCo (PEP) had a strong quarter, as they reported earnings and revenue that exceeded what the experts were anticipating. This was due to the increased prices they charged for their snacks and drinks. Unfortunately, the higher prices also caused a decrease in the amount of food people purchased worldwide,?leading to a 2% drop in volume for their food business.
- Its fourth-quarter net income came in at?$518 million, or 37 cents per share. This is a decrease from the previous year when it was?$1.32 billion, or 95 cents per share. The decrease was due to write-downs of certain brands, such as SodaStream and Pioneer Foods, because of rising interest rates. Looking to 2023, Pepsi is?projecting a 6% increase in organic revenue and 8% growth?in its core constant currency earnings per share.
While the company expects inflationary pressures to persist in 2023, it still sees consumer demand as resilient. A near duopoly in the carbonated drinks market with Coca-Cola helped it raise prices with little pushback from consumers as it battled higher freight and commodity costs, as well as the impact of a stronger dollar on international revenue. PepsiCo is in a "real sweet spot" in terms of consumers since they have enough money to buy themselves affordable treats, Chief Financial Officer Hugh Johnston explained.
- The Walt Disney Company (DIS) announced its earnings for the first quarter on Wednesday, with results surpassing the expectations of analysts. CEO Bob Iger took part in the earnings call, providing updates on the entertainment giant. During the quarter, Disney reported an?8% year-over-year increase in revenue, reaching $23.51 billion. Meanwhile, its direct-to-consumer business generated $5.3 billion in first-quarter revenue, marking a?13% increase year-over-year.
- Bob Iger, CEO of The Walt Disney Company, also announced a restructuring plan which involves cutting?7,000 jobs, approximately 3% of the company's workforce,?with the aim of?saving $5.5 billion?over the next few years. This move is expected to revive the company's creative output and make its streaming business profitable.?
- Investors have been eagerly anticipating Iger's strategic plan for the company since his unexpected reappointment in November. In his statement, Iger expressed that Disney is embarking on a significant transformation that will lead to sustained growth and profitability in its streaming operations. Disney shares jumped as much as 9% in after-hours trading following the announcement.
