The Snapchat parent said it generated $1.3 billion in sales in the fourth quarter, roughly flat from the year-earlier period and broadly in line with Wall Street's expectations. The growth figure was the lowest for Snap since going public almost six years ago.
China EV Makers Jump in Hong Kong, Extending Wall Street Rally
Shares of Chinese electric car makers jumped in Hong Kong on Wednesday, extending soaring overnight gains on Wall Street, driven in part by expectations of recovering sales in the world's largest automobile market.
The Hong Kong-listed shares of Li Auto Inc. soared 8.7% as of the midday trading break. Xpeng Inc. jumped 7.6% and NIO Inc. was up 5.9%.
Fed Day Is Here. Powell's Tone Will Say It All.
The Federal Reserve is on track to slow the pace of monetary-policy tightening on Wednesday by raising interest rates by a modest quarter of a percentage point, its smallest increase in nearly a year. But don't mistake the central bank's downshift for a dovish pivot.
With a 25-basis-point interest-rate hike all but locked in (a basis point is a hundredth of a percentage point), the biggest news on Wednesday will come not from the Fed's policy moves but the statement and press conference that will follow its two-day policy meeting. Fed Chairman Jerome Powell has been emphasizing for months that the future pace of tightening is less important than how high interest rates ultimately rise, and investors and economists will be parsing his words for clues as to where the federal-funds rate might ultimately land.
Investors Shrug Off Weak Earnings Reports as Stocks Rebound to Start Year
Lackluster earnings reports from some of the biggest companies in the U.S. haven't put a damper on the stock market's bounceback.
Even some companies that have posted disappointing results have seen their shares rise in the following days. Microsoft Corp. last week reported its slowest sales growth in more than six years, yet its shares finished the week 3.3% higher. American Express Co. and Alaska Air Group Inc. both posted lighter-than-expected earnings and revenue. Their shares rose 14% and 2.4%, respectively, for the week.
Eurozone Inflation Eases for Third Month as ECB Rate Rises Bite
The eurozone's annual rate of inflation fell for the third-straight month in January as energy prices continued to pull back from recent peaks-a slide that is unlikely to deter the European Central Bank from raising interest rates further this week.
Russia's invasion of Ukraine pushed energy prices and eurozone inflation sharply higher through much of last year, but warmer-than-usual temperatures, high natural-gas storage levels across Europe and various government programs to cap energy prices started to reverse that move as 2022 drew to a close.
Russia's 'Energy Weapon' Is Hurting China Too
Europe has had a tough winter-but warm weather and a herculean effort to find new natural gas supplies has limited the economic damage from Moscow's decision to curb gas exports to the continent. Some of that damage is instead showing up in a very different gas market and one Russia is counting on for its growth: China.
Gold Is Gaining Ground. Here's How to Play It.
Oil and other commodities were the stars of 2022. Gold, already off to a strong start, could take that mantle in 2023.
Last year was a disappointment for those who expected gold to perform well amid an inflation spike. It rose only 0.4% to $1,814 an ounce, though it rallied more than 10% in the year's final two months. But its performance was lackluster compared with the Energy Select Sector SPDR exchange-traded fund (ticker: XLE), which tracks oil stocks and was up 64% in 2022, and United States Oil (USO), which invests in oil futures and gained 29%. Worse still were gold-miner stocks-the VanEck Gold Miners ETF (GDX) was down 9%.
Eurozone Unemployment Rate Stabilized in December, Signaling Labor-Market Resilience
The eurozone's unemployment rate held up at its record low in December, highlighting the strength of the labor market at the end of the year even as the economy lost steam.
The eurozone unemployment rate was 6.6% in December, unchanged from November, according to data from the European Union's statistics agency Eurostat released Wednesday. This is the lowest level of the historical series, after October and November unemployment rates were revised to 6.6% from the initially estimated 6.5%.
Trio of Indiana Cities Tops WSJ/Realtor.com Housing Index
Three Indiana cities led the Wall Street Journal/Realtor.com Emerging Housing Market Index in the fourth quarter, when affordable markets continued to dominate the rankings.
Lafayette, Ind., a metro area of about 225,000 people, was the top-ranked emerging housing market in the quarter, followed by Fort Wayne, Ind.; Elkhart, Ind.; Topeka, Kan.; and Johnson City, Tenn.
China Caixin Manufacturing PMI Improves, But Stays in Contraction
A private gauge of China's manufacturing activity improved in January but remained in contractionary territory for the sixth straight month.
The purchasing managers index rose to 49.2 in January from 49.0 in December, according to data released Wednesday by Caixin Media Co. and S&P Global. The 50-mark separates expansion from contraction.
Ukraine Braces for Major Russian Offensive
Russia is preparing to launch a major new offensive against Ukraine in the coming weeks, a top Ukrainian security official said, adding to mounting concerns in Kyiv and the West that the Kremlin is preparing a renewed push to seize large areas of the country.
"Russia is preparing for maximum escalation," said Oleksiy Danilov, the secretary of Ukraine's National Security and Defence Council, in an interview with Sky News published online early Wednesday local time. "It is gathering everything possible, doing drills and training."
Ukraine Denounces Western Executives at Russian Companies
Ukraine is ratcheting up pressure on Western executives who have retained posts at Russian companies, saying their presence is indirectly supporting Moscow's war effort.
Many Western executives cut ties with Russia after it invaded Ukraine last year, sometimes in opposition to the war or to comply with Western sanctions. Others remained for various reasons, including saying they had a fiduciary duty to their investors, a responsibility to local employees or yearslong ties to Russia that were hard to break.
French Forces Seize Iranian-Supplied Weapons Bound for Yemen
Elite French special forces seized a boatload of Iranian-supplied weapons and ammunition bound for militants in Yemen as part of a deepening effort to contain Tehran, according to officials familiar with the operation.
On Jan. 15, the officials said, a French warship stopped a suspected smuggling ship off the Yemeni coast where the specially trained French team boarded the boat. On board, the officials said, the French military discovered more than 3,000 assault rifles, a half million rounds of ammunition and 20 antitank guided missiles.
Kathy Hochul Eyes Higher Payroll Taxes, Casino Revenue to Avoid New York City Subway Cuts
ALBANY, N. Y.-New York Gov. Kathy Hochul will seek to raise payroll taxes on downstate businesses and use revenue from new casinos to bolster mass transit in New York City as part of her proposed state budget on Wednesday.
The Democratic governor is proposing an additional $1.3 billion a year for the Metropolitan Transportation Authority through the actions, her aides said. That includes a call for New York City to contribute roughly $500 million more to the authority, which operates subways, buses, and commuter railroads as well as bridges and tunnels.
Missing Radioactive Capsule Found in Australian Outback
A tiny capsule containing radioactive material that sparked a search over hundreds of miles of highway in the Australian Outback has been found, authorities said Wednesday.
The success "is testament to amazing inter-agency teamwork in the face of seemingly insurmountable odds," Western Australia state's Department of Fire and Emergency Services said on Twitter.
Tyre Nichols Funeral to Be Attended by Al Sharpton, Kamala Harris
MEMPHIS, Tenn.-Hundreds are expected to gather here Wednesday for the funeral of Tyre Nichols, weeks after an encounter with police led to his death and sparked an outcry across the country.
The Rev. Al Sharpton, the civil-rights leader, will eulogize Mr. Nichols, a 29-year-old FedEx worker who was pulled over by police on Jan. 7. Body-camera footage released by the city showed Mr. Nichols was repeatedly struck by officers. He died in a Memphis hospital three days later.
Write to ina.kreutz@wsj.com TODAY IN CANADA
Earnings:
CGI 1Q
Economic Indicators (ET):
0930 Jan Canada Manufacturing PMI
Stocks to Watch:
Atlas Global Brands Names Bernie Yeung as CEO and Jason Cervi as CFO, Effective Jan 31
Bird Agrees to Acquire Ontario Telecommunications and Utility Contractor; Agreed to Acquire Trinity Communication Services; Transaction Is Expected to Be Accretive to EPS in 2023
Exco Technologies 1Q EPS C$0.12; 1Q Sales C$139.1M
Expected Major Events for Wednesday
00:01/UK: Jan Shop Price Index
00:01/UK: 1Q CBI SME Trends Survey
00:30/JPN: Jan Japan Manufacturing PMI
05:00/JPN: Jan Auto sales
06:00/RUS: Jan Russian Manufacturing PMI
07:00/UK: Jan Nationwide House Price Index
08:45/ITA: Jan Italy Manufacturing PMI
08:50/FRA: Jan France Manufacturing PMI
08:55/GER: Jan Germany Manufacturing PMI
09:30/UK: Jan S&P Global / CIPS UK Manufacturing PMI
09:30/UK: Jan Narrow money (Notes & Coin) and reserve balances
10:00/ITA: Jan Cities CPI
10:00/ITA: Jan Provisional CPI
12:00/US: 01/27 MBA Weekly Mortgage Applications Survey
13:15/US: Jan ADP National Employment Report
14:30/CAN: Jan Canada Manufacturing PMI
14:45/US: Jan US Manufacturing PMI
15:00/US: Jan ISM Report On Business Manufacturing PMI
(MORE TO FOLLOW) Dow Jones Newswires
02-01-23 0639ET
