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Market Highlights: Here are stocks that made headlines on Monday

16 March 2022 By
  • Expected Fed interest rate hike could trigger rally of US stocks
  • Coupa Software announces Q4 2021 revenue of $193.3 million
  • Tencent faces huge fines for violation of anti-laundering laws, and Rio Tinto is buying Turquoise Hill

US equities could rally on interest rate hikes

Ironside Macroeconomics research director Barry Knapp has hinted that US equities are likely to rally on Wednesday as markets anticipate Fed Chair Jerome Powell to sign a 25 basis points interest rates hike. Knapp indicates that the rate increase has already been priced into the S&P index that is down 13% YTD.

In February, inflation rose to 7.9%, and the Fed is expected to be less aggressive relative to previous predictions owing to the economic repercussions of the ongoing conflict in Ukraine.

Coupa Software shares dip on bearish guidance.

Coupa Software Inc. (NASDAQ: COUP) shares dipped almost 30% after hours after the San Mateo-based firm issued guidance that was shy of Street Estimates. The company announced that its loss had widened in the fourth quarter to $61.4 million or $1.29 per share from $61.4 million or $0.85 per share a year ago. Adjusted EPS during the quarter was $0.19 per share.

Revenue was up 18% YoY to $193.3 million, beating consensus estimates. In the fourth quarter, calculated billings were 18% up YoY. The company expects revenue of between $189 million and 191 million and adjusted EPS of $0.03 to $0.06 per share for the current quarter.

Tencent Holding faces penalty for violating anti-money-laundering laws

Tencent Holdings Ltd. faces unprecedented penalties for violation of anti-money laundering rules set by the People's Bank of China. The Wall Street Journal reported on Monday that the company’s WeChat Pay was being accused of failing to adhere to rules that require it to verify the identities of transactions users and merchants on the platform and the source of their money.

The PBOC uncovered illegal transactions during a routine review of the platform's digital wallets services and mobile payments.

Rio Tinto to purchase Turquoise Hill Resources for $2.7 billion 

Turquoise Hill Resources Ltd. (NYSE: TRQ) shares were up 30% following Rio Tinto Plc’s (NYSE: RIO) proposal to purchase the mining exploration and development firm in a $2.7 billion cash consideration. Rio proposed to purchase the remaining 49% of the Turquoise stake translating to C$34 per share. This is a 32% premium from the premium which Turquoise closed on Friday.