Shares in Abercrombie & Fitch jumped 14 percent after the textile retailer returned to profit in the first quarter and also performed better than expected. The company owes its success to denim fashion. This is where opportunities are opening up for both the Abercrombie and Hollister brands, according to CEO Fran Horowitz. At Abercrombie, the majority of women's denim styles are sold at full price, and Hollister, meanwhile, is also refraining from discounting. The customer "loves the style, quality and fit of our jeans across all brands," Horowitz told analysts. As a result, he said, the company has achieved its highest gross margin in the jeans segment since the first quarter of 2012.
In the opening quarter of this year, the company increased revenue 61 percent to $781.4 million from $485.4 million a year earlier. Net, Abercrombie & Fitch earned $41.8 million, compared with a net loss of $244.1 million in the same period last year. Adjusted earnings per share were plus 67 cents, while analysts had expected minus 38 cents. Analysts had estimated sales at 687 million dollars.

The Swiss stock market continued its record chase on Wednesday, albeit at a slower pace. The SMI gained 0.4 percent to 11,349 points. At 11,382 points, the index marked a new all-time high in the course. Among the 20 SMI stocks, there were 13 price gainers and seven losers. Turnover was 34.21 (previously: 40.95) million shares. The SMI benefited from its defensive heavyweights, a trader commented on the events. These have recently been rediscovered and are again weighted higher in portfolios. This affected Nestle, Roche and Novartis, among others. Nestle gained 0.1 percent and moved close to its record high from September 2019 in the course. Pharmaceutical heavyweights Novartis and Roche closed 0.7 and 0.3 percent higher, respectively. Meanwhile, Richemont (+3.0 percent) benefited again from the good business figures already published on Friday. Swatch improved by 1.9 percent. Shares of luxury goods manufacturers generally rose in anticipation of a recovery in air traffic, according to data from the trade. Meanwhile, the previous day's decline in yields in the U.S. bond market weighed on financial sector stocks. The prices of banks CS Group and UBS fell by 0.5 and 1.3 percent. Insurers held up slightly better: Swiss Life lost 0.3 percent and Swiss Re 0.1 percent, while Zurich gained 0.1 percent.

Stocks in Europe were edging higher early on Wednesday, with U.S. equity futures also rising modestly. Marks & Spencer shares rose after well-received results. The Stoxx Europe 600 index rose 0.3%, with the German DAX up 0.2%, the French CAC 40 rising 0.2% and the FTSE 100 index up 0.2%. Investors remain focused on the possibility that rising prices could prompt a sooner-than-expected move by the Federal Reserve to step back from its accommodative policy. That's despite reassurances from most Fed members that they view near-term pressures as transitory. Shares of Marks & Spencer climbed 4.5%. The retailer swung to a pretax loss for fiscal 2021 on lower revenue. But it said for the first six weeks of fiscal 2022, business was ahead of a two-year-earlier comparative. Shares of Spire Healthcare surged 25% after Australian multinational healthcare group, Ramsay Health Care said it would buy the independent hospital group for 240 pence per share in cash. Shares of Johnson Matthey rose 1% after the chemicals and sustainable-technologies company announced a partnership with U.S.-based Plug Power to develop improved hydrogen electrolysers. Plug Power is a leading manufacturer of electrolysers used to manufacture green hydrogen. The Volkswagen share price rose 0.6 percent. According to Automobilwoche, two financial investors want to buy the Audi subsidiary for 7.5 billion euros. Good U.S. specifications had a positive effect on the sector, where Ford jumped by over 7 percent thanks to strong statements and investment plans for the electric market. Ford aims to achieve a 40 percent production share of e-cars as early as 2030. Delivery Hero gained 0.8 percent. The company sold parts of its business in the Balkan region to Spanish delivery platform Glovo. The assets were valued at around 170 million euros.

Stocks closed slightly higher as investors grew more comfortable that the Federal Reserve and other central banks would maintain their economic support despite a near-term bout of inflation. The S&P 500 rose 7.86 points, or 0.2%, to 4195.99 as the broad market index posted modest gains after declining Tuesday. The Nasdaq Composite climbed 80.82 points, or 0.6%, to 13738.00. The Dow jumped 10.59 points, or less than 0.1%, to 34323.05. Wednesday marks the 125th anniversary of the launch of the Dow Jones Industrial Average. Investors have worried that higher inflation would cause Fed officials to dial back the monetary policy that pulled markets back from the Covid-19 selloff last year. While officials in recent days have indicated they may begin discussing scaling back measures, they have stressed that there are no imminent plans to change policy. The growing comfort with the inflation outlook has calmed markets, with the Cboe Volatility Index—Wall Street’s fear gauge, also known as the VIX—dropping to 17.36, a decline of 7.9%. Shares in Urban Outfitters climbed $3.51, or 10%, to $38.47, after the company reported a profit for its latest quarter as the shopping landscape continued to normalize. Meme stocks pushed higher as well, with GameStop adding $33.13, or 16%, to $242.56. AMC Entertainment was up $3.15. or 19%, to $19.56. A new page advertising GameStop nonfungible tokens recently appeared on the videogame retailer’s website, stoking speculation that it may be building digital products that users would have ownership of. Workday’s revenue increased by 15% in the first quarter. The company also increased its guidance for 2022 as it sees a continued demand for its cloud-based online services. Its shares rose 50 cents, or 0.2%, to $237.07. Investors were also watching an Exxon Mobil Corp. shareholder vote that could influence the company’s carbon strategy in the years ahead. The final vote wasn’t tallied as of Wednesday afternoon, but the company said an activist investor won at least two seats on the board. The shares rose 68 cents, or 1.2%, to $58.94.

Lacking a clear trend, the Asian stock markets present themselves in late business on Thursday. In Tokyo, the Nikkei-225 fell by 0.53 percent - slowed by the Corona infections rising again. In China, the stock market is divided - as in the entire region. While Shanghai (+0.18%) presents itself well maintained, the HSI (-0.30%) shows itself somewhat lighter in Hong Kong. In Seoul, the Kospi falls by 0.32 percent - weighed down by technology and chemical stocks.

In bond markets, the yield on the 10-year U.S. Treasury note ticked up to 1.572% from 1.563% Tuesday, ending a four day losing streak.

Berenberg lowers Iliad to Hold (Buy) - Target EUR 155 (185)
LBBW raises Porsche target to EUR 128 (117) - Buy
Stifel raises target Datagroup to EUR 79 (70) - Buy

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