— Foreign Purchases of U.S. Homes Hit 14-Year Low; Merck Sees Strong Sales of HPV and Cancer Drugs; Uber Posts First Operating Profit; U.S. Job Openings Hit 2-Year Low; NYC Cost of Living Rises Again in August; Two Former Blackstone Execs Launch $1B Fund; Retail Investors Fuel Nikola’s 470% Rally
1. Foreign Purchases of U.S. Homes Hit 14-Year Low
The National Association of Realtors (NAR) reported today that in the year ending March, foreign buyers purchased $53.3 billion worth of U.S. homes, a 9.6% year-over-year decline.
The number of U.S. homes purchased by foreign buyers fell to the lowest level since 2009, even as the average price paid hit a record $640,000. These trends are attributed to reduced cross-border travel during the pandemic and a strong U.S. dollar.
NAR Chief Economist Lawrence Yen stated that while international buyers were expected to return post-pandemic, the strength of the dollar likely discouraged many.
Buyers from China, Hong Kong, and Taiwan accounted for 13% of total foreign transactions.
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2. Merck Sees Strong Sales of HPV and Cancer Drugs
Pharma giant Merck & Co. reported second-quarter revenue of $15 billion, beating analyst expectations.
Sales of cancer drug Keytruda rose 19% year-over-year to $6.27 billion, exceeding analyst forecasts of $5.8 billion.
Sales of HPV vaccine Gardasil surged 47%, fueled by rising demand in China. As a result, Merck raised its full-year 2023 revenue outlook to $59.6 billion.
Merck posted a net loss of $2.06 per share in Q2—below Wall Street expectations—largely due to its acquisition of biotech firm Prometheus.
Shares rose 2.4% premarket, though the stock is down 3.9% year-to-date through Monday.
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3. Uber Posts First Operating Profit
Uber Technologies reported its first-ever operating profit in Q2, as ride-hailing activity in the U.S. and Canada returned to pre-pandemic levels.
Uber posted GAAP operating income of $326 million and free cash flow of $1.14 billion for the quarter.
CEO Dara Khosrowshahi said the company hit two major milestones thanks to strategic execution, record user numbers, and effective customer engagement. He added that Uber’s profitability is expected to remain strong.
Ride-hailing trips rose 26% year-over-year to a record high, and active driver numbers increased by 33%.
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4. U.S. Job Openings Hit 2-Year Low in July
The U.S. Department of Labor reported today that job openings dropped to 9.6 million in June, the lowest level since April 2021.
Layoffs also reached the lowest level since late last year, and jobless claims have eased in recent months.
The U.S. government will release its nonfarm payroll data this Friday, with forecasts projecting 200,000 new jobs in July.
Food processing and manufacturing saw the largest drop in job openings, while industrial, healthcare, and entertainment services saw increases.
The data suggests the labor market remains healthy, and layoffs are stabilizing.
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5. NYC Cost of Living Rises Again in August
Starting late August, New York City subway and bus fares will rise by $0.15, and monthly utility bills may increase by $15. Combined with record-high rents, living in NYC is set to become even costlier.
As of June, dining out in NYC had risen 7% year-over-year, with even a slice of traditional pizza priced well above pre-pandemic levels.
Energy provider ConEdison recently received approval to raise rates, meaning electric bills could jump as much as 9.1%.
Further rate hikes are expected in early 2024 and again in 2025.
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6. Two Former Blackstone Execs Launch $1B Fund
Sources say former Blackstone executives Gideon Berger and Min Htoo are launching a new hedge fund—LuminArx Capital Management—expected to raise more than $1 billion.
Both previously worked in Blackstone’s alternative asset division. Berger, who was co-CIO, will serve as LuminArx’s CEO and chair its investment committee.
The firm will employ a unique investment strategy across a wide range of securities with holding periods of less than five years.
At least four new hedge funds have raised more than $1 billion so far this year.
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7. Retail Investors Fuel Nikola’s 470% Rally
Shares of electric truck startup Nikola Corp. have soared 470% over the past two months, becoming a trending topic on Twitter and Stocktwits.
The stock shows no signs of slowing, as retail investor enthusiasm returns. Bearish bets on the stock also remain elevated.
In June, Nikola’s share price dipped below $1, putting it at risk of Nasdaq delisting. Since then, the stock has surged nearly vertically and is up 47% year-to-date—though still down 96% from its 2020 peak.
Nikola’s fundamentals have not improved significantly, and the rally appears driven purely by speculation.
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This content is sourced from Financial Times, Bloomberg, and The Real Deal, among other financial news outlets.