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Stock Alert: SelectQuote Climbs 16% After Upbeat Q4 Results

CANADA STOCKS-TSX gains ahead of Macklem speech

Sept 10 (Reuters) – Canada’s main stock index rose on Thursday ahead of a speech by Bank of Canada Governor Tiff Macklem, with wider sentiment also boosted by a rebound in tech-related stocks on Wall Street.

* At 9:30 a.m. ET (1330 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 34.05 points, or 0.21%, at 16,417.65. (Reporting by Shashank Nayar in Bengaluru; Editing by Shounak Dasgupta)

Stock Alert: RH Jumps To New 52-week High After Q2 Results Beat View

Shares of RH (RH) are surging almost 25 percent or $80.22 in Thursday’s morning trade at $401.30, after touching a new 52-week high of $405.55 as the luxury furniture retailer’s second-quarter earnings results beat analysts’ estimates.

RH, the parent company of Restoration Hardware, said Wednesday that its second-quarter net income rose to $98.4 million or $3.71 per share from $63.8 million or $2.86 per share last year. Adjusted earnings were $4.90 per share, compared to $3.20 last year. Revenues rose to $709.3 million from $706.5 million last year.

Analysts polled by Thomson Reuters had a consensus earnings estimate of $3.41 per share on revenues of $707.14 million. Analysts’ estimates typically exclude special items.

RH has traded in a range of $73.14 to $405.55 in the past 52 weeks.

China Inflation Slows; PPI Falls At Slower Pace

China’s inflation eased in August on slowing pork price growth and factory gate prices continued to decline, but the pace of drop slowed from the last year.

Consumer price inflation slowed to 2.4 percent in August from 2.7 percent in July, the National Bureau of Statistics revealed Wednesday. The rate came in line with expectations.

On a monthly basis, consumer prices gained 0.4 percent.

Driven by slower growth in pork prices, food price inflation eased to 11.2 percent annually. Pork prices advanced 52.6 percent from last year, following an 85.7 percent rise in July.

Core inflation, which excludes food and energy prices, held steady at 0.5 percent in August.

Producer prices decreased at a pace of 2 percent on a yearly basis in August, as expected, following a 2.4 percent drop in the previous month, another report from the NBS revealed.

Looking through the volatility in food prices, the broader disinflationary impact from the COVID-19 downturn continues to ease, Julian Evans-Pritchard, an economist at Capital Economics, said.

Headline consumer price inflation probably has further to fall as pork supply continues to recover from last year’s African swine fever outbreak, the economist noted.

But the bigger picture is that, with infrastructure-led stimulus still being ramped up, demand-side pressures on prices will probably strengthen in the coming months, pushing up underlying inflation, Evans-Pritchard added.

Stock Alert: Zscaler Rises On Upbeat Results

Shares of cloud security company Zscaler, Inc. (ZS) are climbing more than 3% Thursday morning following better-than-expected fourth-quarter earnings. The company also provided first-quarter outlook better than view.

In the fourth quarter, earnings on an adjusted basis were $0.05 per share compared with $0.07 per share last year. Analysts polled by Thomson Reuters expected earnings of $0.03 per share for the quarter.

Revenue for the quarter grew 46% year-over-year to $125.9 million.

For the first quarter, Zscaler expects revenue to be in the range of $131 million to $133 million and adjusted earnings in the range of $0.05 to $0.06. The consensus estimate for revenue is $126.65 million and for earnings is $0.03 per share.

For the full-year, revenue is expected between $580 million and $590 million and adjusted earnings to be in the range of $0.28 to $0.30. Analysts expect the company to report earnings of $0.29 per share on revenue of $557.83 million for the period.

ZS is currently trading at $138.92. It has traded in the range of $35- $163.8 in the past 52 weeks.

TRATON Announces Increased Offer For Navistar

TRATON SE has announced an increase in its offer for the acquisition of all shares in Navistar not already held by the company to $43.00 per share. Previously, the offer was valued at a price $35.00 per Navistar share. TRATON already holds a stake of 16.8% in Navistar.

TRATON SE noted that the proposal is still in particular subject to TRATON and Navistar agreeing on the conclusion of a merger deal, the conduct of a due diligence, and the approval of the merger by the executive bodies and committees of TRATON and VOLKSWAGEN as well as the Board and the shareholder meeting of Navistar.

Crude Oil Futures Drift Lower

Crude oil prices are lower Thursday morning amid concerns about outlook for fuel demand after data from American Petroleum Institute showed a jump in U.S. crude stockpiles last week.

As coronavirus cases continue to rise in several countries, it is feared that crude supplies will far exceed demand, considering the fact that OPEC members have eased output curbs and have been producing more oil since last month.

West Texas Intermediate Crude oil futures for October are down $0.65 or 1.7% at $37.40 a barrel.

Brent crude futures are lower by $0.56 or 1.4% at $40.23 a barrel.

According to a report from the American Petroleum Institute, oil stockpiles rose by 2.970 million barrels during the week ended September 4, as against expectations for a 1.2 million barrels drawdown.

Gasoline supplies dropped by 6.892 million barrels, while distillate inventories increased 2.293 million barrels last week.

The Energy Information Administration (EIA) is scheduled to release its weekly inventory data at 10.30 am ET.

Stock Alert: SelectQuote Climbs 16% After Upbeat Q4 Results

Shares of SelectQuote Inc. (SLQT) are rising more than 16 percent or $3.29 in Thursday’s morning trade at $23.34 after the insurance company’s quarterly results beat analysts’ expectations.

Wednesday, SelectQuote said its fourth-quarter net income rose to $20.05 million or $0.13 per share from $12.89 million or $0.09 per share last year. Revenues surged 90 percent to $141.4 million from $74.4 million a year ago. Analysts polled by Thomson Reuters had a consensus earnings estimate of $0.03 per share on revenues of $119.64 million. Analysts’ estimates typically exclude special items.

Looking ahead to fiscal 2021, the company forecast revenues in a range of $775 million to $815 million. Analysts currently estimate revenues of $756.96 million.

SelectQuote has traded in a range of $15.76 to $29.00 in the past 52 weeks.