Finance

STOCKS ARE sinking, a cost-of-living crisis is in full swing and the spectre of global recession looms. But you wouldn’t know it by looking at the rich world’s housing markets, many of which continue to break records. Homes in America and Britain are selling faster than ever. House prices in Canada have soared by 26% since the start of the pandemic. The average property in New Zealand could set you back more than NZ$1m ($640,000), an increase of 46% since 2019 (see table).For more than a decade homeowners benefited from ultra-low interest rates. Now, however, an interest-rate storm is gathering. On May 5th the Bank of England, having forecast that inflation in Britain could exceed 10% later this year, raised its policy rate for the fourth time, to 1%. The day before America’s Federal Reserve had increased its benchmark rate by half a percentage point, and hinted that more tightening would follow. Investors expect the federal funds rate to rise above 3% by early 2023, more than triple its current level. Most other central banks in the rich world have also started pressing the monetary brakes, or are preparing to do so.Many economists believe that a 2008-style global property crash is unlikely. Households’ finances have strengthened since the financial crisis, and lending standards are tighter. Scarce housing supply together with robust demand, high levels of net household wealth and strong labour markets should also support property prices. But the rising cost of money could make homeowners’ existing debt burdens difficult to manage by increasing their repayments, while putting off some prospective buyers. If that hit to demand is big enough, prices could start to fall.Homeowners’ vulnerability to sharp rises in mortgage payments varies by country. In Australia and New Zealand, where prices jumped by more than 20% last year, values have got so out of hand that they are sensitive to even modest rises in interest rates. In less torrid markets, such as America and Britain, interest rates may have to approach 4% for house prices to tank, reckons Capital Economics, a consultancy. Alongside price levels, however, three other factors will help determine whether the housing juggernaut simply slows, or comes crashing to a halt: the extent to which homeowners have mortgages, rather than own their properties outright; the prevalence of variable-rate mortgages, rather than fixed-rate loans; and the amount of debt taken on by households.Consider first the share of mortgage-holders in an economy. The fewer homeowners who own their properties outright, the greater the impact of a rate rise is likely to be. Denmark, Norway and Sweden have some of the world’s highest shares of mortgage-holders. A relaxation of lending standards in response to the pandemic turbocharged borrowing. In Sweden tax breaks for homeowners have further fuelled the rush to secure mortgages, while a dysfunctional rental market, characterised by overpriced (and illegal) subletting, has pushed more tenants into home ownership. All this puts Nordic banks in a tricky position. In Norway and Sweden housing loans make up more than a third of banks’ total assets. In Denmark they account for nearly 50% of lenders’ books. Sharp falls in house prices could trigger losses.By contrast with the Nordics, where home ownership has been fuelled by the growth of mortgage markets, many households in central and eastern European countries bought homes without taking on debt in the 1990s because property was so cheap. In Lithuania and Romania more than four-fifths of households are outright owners. Mortgage-free households are also more prevalent in southern Europe, notably Spain and Italy, where inheritance or family support is a common route to home ownership. Germans, for their part, are more likely to rent than own their homes. Rate rises will therefore have less direct impact on prices.The structure of mortgage debt—the second factor—also matters. Rising interest rates will be felt almost instantly by borrowers on variable rates, which fluctuate with changes in policy rates; for those on fixed rates, the pain will be delayed. In America mortgage rates tend to be fixed for two or three decades. In Canada nearly half of home loans have rates that are set for five or more years. By contrast lending in Finland is almost entirely priced at floating rates. In Australia around four-fifths of mortgages are tied to variable rates.Just looking at the proportion of borrowers on fixed versus variable rates can mislead, however. In some countries mortgage rates may often be fixed, but for a period that is too short to protect borrowers from the interest-rate storm. In New Zealand fixed-rate mortgages make up the bulk of existing loans, but nearly three-fifths are fixed for less than a year. In Britain nearly half the fixed-rate stock is for up to two years.Resilience to rising rates will also depend on the quantum of debt taken on by households—our third factor. High indebtedness came into sharp focus during the global financial crisis. As house prices declined, households with towering mortgage repayments relative to their incomes found themselves squeezed. Today households are richer—but many are saddled with more debt than ever. While Canadians added C$3.6trn ($2.8trn) to their combined pile of savings during the pandemic, buoying their net wealth to a record C$15.9trn at the end of 2021, their ravenous appetite for homes has pushed household debt to 137% of income. The share of new mortgages with extreme loan-to-income ratios (ie, exceeding 4.5) has also risen, prompting Canada’s central bank to issue a warning about high levels of indebtedness in November 2021.Watchdogs in Europe are equally worried. In February the European Systemic Risk Board warned of unsustainably high mortgage debt in Denmark, Luxembourg, the Netherlands, Norway and Sweden. In Australia, homeowners’ average debt as a share of income has swollen to 150%. In all these countries households will face jumbo monthly repayments just as soaring food and energy costs eat into incomes.Bring this together, and some housing markets seem set for more pain than others. Property in America, which bore the brunt of the fallout from the subprime-lending crisis, appears better insulated than many large economies. Borrowers and lenders there have become more cautious since 2009, and fixed rates are much more popular. Housing markets in Britain and France will fare better in the short term but look exposed if rates rise further. Property in German and southern and eastern Europe appears less vulnerable still. By contrast, prices may be most sensitive to rate rises in Australia and New Zealand, Canada and the Nordics.One floor for house prices is that, in most countries, demand still vastly outstrips supply. Strong job markets, hordes of millennials nearing homebuying years and a shift to remote working have raised the demand for more living space. New properties remain scarce, which will sustain competition for homes and keep prices high. In Britain there were 36% fewer property listings in February than at the start of 2020; in America there were 62% fewer listings in March compared with the year before. Nor is the alternative to owning a home—renting—particularly attractive. Across Britain average rents were 15% higher in April than in early 2020. In America they rose by a fifth in 2021; in Miami they jumped by almost 50%. Prospective tenants of rent-controlled properties in Stockholm face an average waiting time of nine years.As the era of ultra-cheap money comes to an end, then, demand for housing is not about to collapse. Yet one way or another, renters and homeowners will face an intensifying squeeze.For more expert analysis of the biggest stories in economics, business and markets, sign up to Money Talks, our weekly newsletter. More

Emergency cash has been suffering from paltry returns and high inflation.
Ten or so banks have raised yields on savings accounts just since mid-April, according to Bankrate.
The highest-yielding accounts could pay more than 2% by the end of the year if the Federal Reserve continues on its path of raising its benchmark interest rate quickly.

Guido Mieth | DigitalVision | Getty Images

Banks are starting to pay a higher return on your cash — good news for savers who’ve seen their stockpiles languishing from a gruesome combination of low interest rates and high inflation.
However, some banks are moving faster than others. Some, particularly traditional brick-and-mortar shops, may not budge for a while.

At least 10 banks have raised interest rates on their high-yield savings accounts or money market deposit accounts since mid-April, according to data compiled by Bankrate.
They include: American Express National Bank, Barclays Bank, Capital One, CIT Bank, Colorado Federal Savings Bank, Discover Bank, Luana Savings Bank, Marcus by Goldman Sachs, Sallie Mae Bank and TAB Bank, according to Bankrate. A handful of others increased yields earlier in 2022.

The rates are still relatively low — none yet pays over 1%. Most are in the range of roughly half a percent up to 0.80%, according to Bankrate data.
But the highest-yielding accounts pay about 10 times more than the national average, which is 0.06%, according to Greg McBride, chief financial analyst at Bankrate.
And consumers’ returns are likely to climb steadily higher as the Federal Reserve continues to raise its benchmark interest rate to curb inflation. The central bank cut that rate to rock-bottom levels in the early days of the Covid-19 pandemic to help prop up the economy.

“If the Fed ends up being as aggressive as they’re expected to be, the top-yielding savings accounts could clear 2% later this year,” McBride said.
“It’s the only place in the world of finance where you get the free lunch of higher return without higher risk,” he added. “It’s pure gravy.”

Emergency savings

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Financial advisors often recommend savers park their emergency funds in these types of accounts. Funds are safe (deposits are insured by the Federal Deposit Insurance Corporation) and liquid (they can be accessed at any time).
Savers should aim to have several months of household expenses handy, in the event of job loss or another unforeseen event.
Financial advisor Winnie Sun, co-founder of Sun Group Wealth Partners in Irvine, California, recommends saving at least six months of crucial living expenses (shelter, food and medication costs), plus an additional three months for each child in the household.
More from Personal Finance:Here’s what the Fed’s half-point rate hike means for your moneyAs mortgage rates rise, should you buy a home or rent?Rising interest rates mean higher costs for car loans
Consumers don’t need to move all their funds, either. They can keep managing their day-to-day finances (their checking accounts, for example) at their current bank to avoid the hassles of switching, and open an account at a new bank solely for emergency funds, McBride said.
Not every bank is raising their payouts or doing so at the same pace.
Largely, the ones that have increased their account rates (some have done so multiple times in 2022) are online banks or the online-banking divisions of traditional brick-and-mortar banks.
They have lower overhead costs and may use the allure of higher rates to compete with traditional shops, which hold the lion’s share of customer deposits and are in “no hurry” to increase payouts, McBride said.

It’s pure gravy.

Greg McBride
chief financial analyst at Bankrate

When the Federal Reserve raises its benchmark interest rate — known as the fed funds rate — it increases the cost of borrowing. Loans become more expensive for consumers and businesses.
Banks earn money on loan interest. As the Federal Reserve raises its benchmark rate, banks accrue more revenue from higher loan interest payments and may therefore find themselves better positioned to pay a larger yield on customer savings.
The central bank hiked its benchmark rate by a half a percentage point on Wednesday, the largest increase in more than two decades.
However, this seesaw effect won’t necessarily be true for all institutions, due to another factor. Banks use deposits to loan money to other customers. But customers flooded the U.S. banking system with cash to an unprecedented degree in the early months of the pandemic, due partly to cash-hoarding and the flow of government payments like stimulus checks.
As a result, most banks may not see the need to pay higher savings-account rates to attract deposits and fuel their loan machine.

Inflation

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Even as a handful of banks increase payouts, consumers are still struggling to keep pace with inflation.
The Consumer Price Index, a key inflation gauge, jumped 8.5% in March 2022 from a year earlier, the fastest 12-month increase since December 1981. As a result, money is losing its value at an elevated rate.
“Overall, you’re still way below levels of inflation,” said Sun, a member of CNBC’s Advisor Council, of high-yield savings account rates.
However, she added: “Sometimes we have to be comfortable receiving less of a return for less [worry].”
Savers may opt for different approaches with emergency savings, depending on their household situation, Sun said.

For example, individuals who don’t want to open a separate high-yield savings account at another bank can perhaps replicate those returns on emergency cash account by investing 5% to 10% (depending on one’s risk appetite) in a simple balanced fund split between stocks and bonds, she said.
This investment is subject to market risk, though. In an emergency, savers would tap the cash (and not the invested assets) to the extent possible.
Individuals who don’t have the financial capacity to fund both an emergency savings and retirement account can also consider a Roth individual retirement account, Sun said. In the event of an emergency, investors can tap their Roth IRA contributions as a last resort. (Doing so doesn’t carry a tax penalty, though withdrawing investment earnings might in a few cases such as withdrawing before age 59½. Roth IRAs also carry annual contribution limits.)

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A Peloton exercise bike is seen after the ringing of the opening bell for the company’s IPO at the Nasdaq Market site in New York City, New York, U.S., September 26, 2019.
Shannon Stapleton | Reuters

Check out the companies making headlines in midday trading Friday.
Peloton — Shares of Peloton dropped 7.7% after The Wall Street Journal reported the at-home fitness company is looking for potential investors to take a minority stake in it in the realm of 15% to 20%. The company has struggled with post-pandemic demand on top of brand issues, supply chain challenges and a change in CEO. It will report quarterly results next week.

Monster Beverage — Shares rose 4.4% after Monster Beverage’s first-quarter revenue beat Wall Street estimates. Monster reported revenue of $1.52 billion versus $1.43 billion expected, according to StreetAccount. First-quarter earnings per share came in slightly weaker than expected.
Cigna — Shares jumped 5.9% after the insurance company’s quarterly earnings beat expectations. Cigna reported earnings of $6.01 per share, compared with a $5.18 forecasted by analysts surveyed by Refinitiv. The insurance company reported revenue of $44.1 billion, compared to consensus estimates of $43.4 billion. Cigna reported growth in its pharmacy benefits management business.
NRG Energy — Shares jumped 9.8% after the company released its latest quarterly figures. NRG Energy reported a quarterly profit of $7.17 per share on revenue of $7.9 billion. However, it wasn’t clear if those numbers were comparable with FactSet estimates.
Under Armour — Shares of the sneaker and apparel company fell 25.9% after Under Armour reported an unexpected loss and shared revenue that fell below analyst estimates, as it attempts to overcome global supply chain problems. Under Armour also issued a disappointing outlook for 2023 fiscal year.
Illumina — Shares plunged 14.6% despite the biotechnology company reporting better-than-expected results for the previous quarter. Illumina reported a quarterly profit of $1.07 per share on revenues of $1.223 billion. Analysts polled by StreetAccount were expecting earnings of 90 cents per share on revenues of $1.219 billion.

News Corporation — The media company’s stock tumbled 13.7% following the release of quarterly results that were mostly in line with expectations. News Corporation reported a quarterly profit of 16 cents per share on revenues of $2.5 billion. Analysts were expecting earnings of 15 cents per share on revenues of $2.5 billion, according to consensus estimates from StreetAccount.
DraftKings — Shares dropped 8.9%, giving back a gain from earlier in the day. DraftKings reported a loss of $1.10 per share on revenues of $417 million. Analysts surveyed by Refinitiv were expecting a loss of $1.15 per share on revenues of $412 million. DraftKings also raised its full-year revenue guidance in its quarterly report.
— CNBC’s Tanaya Macheel, Hannah Miao and Samantha Subin contributed reporting.

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Check out the companies making headlines before the bell:
Under Armour (UAA) – The athletic apparel maker posted an adjusted loss of 1 cent per share in the company’s transition quarter, compared with a profit estimate of 6 cents per share. The company is changing its fiscal year, with the first quarter of fiscal 2023 beginning April 1. Under Armour also issued a weaker-than-expected outlook for its full-year profit as it absorbs the impact of higher costs and supply chain disruptions. Under Armour plunged 12.5% in premarket trading.

Cigna (CI) – The insurance company reported an adjusted quarterly profit of $6.01 per share, compared with a $5.18 consensus estimate, and revenue was also above analyst forecasts. Cigna’s results were boosted by strong growth in its pharmacy benefits management business, among other factors.
DraftKings (DKNG) – DraftKings rallied 9.8% in premarket action following its quarterly results. The sports betting firm reported a loss for the quarter but revenue was better than expected with increases in monthly unique paying customers and average revenue per customer. DraftKings also raised its full-year revenue guidance.
Shake Shack (SHAK) – Shake Shack fell 2.8% in premarket trading despite a narrower-than-expected quarterly loss and revenue that beat Wall Street forecasts. The restaurant chain issued a lighter-than-expected outlook as it deals with rising costs for beef, chicken and other commodities.
Block (SQ) – Block surged 5% in the premarket, despite both profit and revenue missing analyst estimates. The fintech firm’s operating earnings exceeded forecasts, and it said it had not seen any deterioration in consumer spending.
Virgin Galactic (SPCE) – Virgin Galactic slid 4.9% in premarket trading after the company said it would delay the launch of its commercial space flight service until the first quarter of 2023, blaming labor and supply chain issues. Analysts are also concerned about Virgin Galactic’s cash burn levels.

DoorDash (DASH) – DoorDash posted a wider-than-expected quarterly loss, but the food delivery service’s revenue exceeded analyst estimates with total orders topping the 400 million mark for the first time. The stock surged 6% in the premarket.
Peloton (PTON) – Peloton is exploring the sale of a sizable minority stake in the fitness equipment maker, according to people familiar with the matter who spoke to The Wall Street Journal. The stake being discussed is said to be around 15% to 20%, although there is no guarantee a deal will be finalized. Peloton fell 1.8% in premarket trading.
Johnson & Johnson (JNJ) – Johnson & Johnson shares fell 1% in the premarket after the FDA limited the use of the company’s Covid-19 vaccine, following a study of blood clots in some recipients. The shot will now only be allowed for patients who are not medically eligible for other vaccines or where there are no alternatives available.
Zillow Group (ZG) – The real estate website operator’s shares tumbled 13.9% in the premarket after issuing a weaker-than-expected forecast, citing an uncertain real estate environment. Zillow reported better-than-expected profit and revenue for its latest quarter.
Live Nation (LYV) – The parent of Ticketmaster and other entertainment operations reported a smaller-than-expected loss for its latest quarter, with strong demand from customers and advertisers. Live Nation added 2.2% in the premarket.
CORRECTION: This article has been updated to correct that Under Armour reported financial results from its transition quarter on Friday.

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Chinese President Xi Jinping headed a meeting of top leaders on Thursday that emphasized the country should stick to its “dynamic zero-Covid” policy, and warned that economic consequences would follow if it doesn’t, according to state media.
In contrast to a similar meeting in March, the readout did not mention how control measures should reduce the impact on the economy as much as possible, said Ting Lu, chief China economist at the Japanese investment bank Nomura.
The latest meeting should be taken in the context of last Friday’s Politburo meeting, and seen more as an attempt to unify the country around the zero-Covid policy, said Bruce Pang, head of macro and strategy research at China Renaissance.

Xi Jinping seen giving a speech during the centenary of the founding of the Chinese Communist Party, in Fuyang on July 1, 2021. From a political perspective, 2022 is a particularly critical year for China, as Xi is expected to gain an unprecedented third term this fall at the 20th National Party Congress, alongside a shuffle in officials around him.
Sopa Images | Lightrocket | Getty Images

BEIJING — Chinese President Xi Jinping headed a meeting of top leaders on Thursday that emphasized the country should stick to its “dynamic zero-Covid” policy, and warned that economic consequences would follow if it doesn’t, according to state media.
The officials called on the country to unify behind the Chinese Communist Party central committee’s decisions, and “resolutely fight” against all questioning of virus control policies, state media said.

The leaders at Thursday’s meeting were the central committee’s Politburo standing committee — a close group of officials around Xi. Last Friday, the broader Politburo held a regular meeting that upheld the zero-Covid policy, while calling for support for the economic growth target.
The last time Xi held a meeting of the standing committee about the virus in March, the readout mentioned how control measures should reduce the impact on the economy as much as possible, said Ting Lu, chief China economist at the Japanese investment bank Nomura.
References to balancing such a policy with economic growth weren’t included in the latest meeting’s readout, he said.
Thursday’s meeting discussed how relaxing virus prevention and control measures would lead to large-scale infections, serious illness and death, while the economy and the safety and health of people would be seriously affected.

“We have won the battle to defend Wuhan, and can certainly win the battle to defend Shanghai,” read the official Chinese-language meeting readout, translated by CNBC.

The comments should be taken in the context of last Friday’s Politburo meeting, and seen more as an attempt to unify the country around the zero-Covid policy, said Bruce Pang, head of macro and strategy research at China Renaissance, a fund manager and investment bank. “Investors should not overinterpret or ignore either of them.”
News of the meeting comes as the country continues to face its worst Covid outbreak since early 2020. The capital city of Beijing, the southeastern metropolis of Shanghai, and several smaller cities have suspended much local business and imposed travel restrictions, prompting investment banks to cut expectations for growth.
China’s Center for Disease Control and Prevention published a study in November that said shifting to the “coexistence” strategy of other countries would likely result in hundreds of thousands of daily cases and devastate the national medical system.
“For us the critical point is really how willing they will want to be to try to implement the zero-Covid policy in a more practical manner,” said Hong Kong-based Pierre Hoebrechts, chief investment officer at Arowana Asset Management. He said potential solutions include greater use of home quarantine and testing at home, rather than in centralized facilities.
“People criticize the policy, which I think is the wrong approach,” he said. “If the implementation of the zero-Covid policy can be improved, everybody profits from it.”

Relatively low number of cases

Earlier this week, Beijing city reduced the quarantine period for international travelers coming to the city by four days.
The number of new daily Covid cases in mainland China has dropped significantly in the last few days.
For Wednesday, the National Health Commission reported 356 new cases with symptoms, mostly in Shanghai, followed by Beijing with 55 cases. In the United States, as at April 27, the seven-day moving average of new cases was 53,133 — up 25.2% from the prior week, according to the Centers for Disease Control and Prevention.

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But it remains unclear how soon factories, supply chains and other business can return to normal.
Separately on Thursday, Premier Li Keqiang headed a meeting announcing more support for employment and small businesses, primarily through a number of cuts to the cost of utilities and 1.6 trillion yuan ($242.42 billion) in additional loans.
Last week, Xi called for an “all-out” effort to construct infrastructure, an approach China has used in the past to boost growth and which analysts were expecting.
From a political perspective, this year is particularly critical for China, as Xi is expected to gain an unprecedented third term this fall at the 20th National Party Congress, alongside a shuffle in officials around him.

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A trader works on the trading floor at the New York Stock Exchange (NYSE) in New York, May 5, 2022.
Andrew Kelly | Reuters

Stock futures were little changed in overnight trading Thursday after the Dow Jones Industrial Average posted its worst day since 2020.
Futures on the Dow Jones Industrial Average were near flat. S&P 500 futures traded near the flatline and Nasdaq 100 futures ticked up less than 0.1%.

The moves came after stocks sold off sharply in Thursday’s regular session. The Dow lost more than 1,000 points and the tech-heavy Nasdaq Composite fell nearly 5%. Both indexes notched their worst single-day drops since 2020. The S&P 500 fell 3.56%, its second-worst day of the year.
Thursday’s losses erased Wednesday’s big post-Federal Reserve meeting rally. Fed Chair Jerome Powell ruled out the prospect of larger rate hikes on Wednesday, sending the S&P 500 and the Dow to their best daily gains since 2020.
“Yesterday, it was more the relief, the optimism, the hope. … There’s more realism coming through in the market today,” Michelle Cluver, portfolio strategist at Global X ETFs, said Thursday.
Technology stocks bore the brunt of Thursday’s fall, with cloud companies, e-retailers and mega-cap names seeing steep declines.
Despite Thursday’s wipeout, the S&P 500 is on pace to close the week up 0.4%. The Dow is on track to finish the week marginally higher, while the Nasdaq Composite is lower by 0.1% this week so far.
Investors are looking ahead to the April jobs report, set for release Friday morning. Economists surveyed by Dow Jones expect employers added 400,000 jobs to nonfarm payrolls, down slightly from 431,000 in March. The unemployment rate is expected to fall to 3.5% in April, down from 3.6% in March, according to Dow Jones.

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A DoorDash sign is pictured on a restaurant on the day they hold their IPO in New York, December 9, 2020.
Carlo Allegri | Reuters

Check out the companies making headlines after the bell: 
Block — Shares rose more than 5% after hours despite Block missing earnings expectations on the top and bottom lines. The financial services company posted first-quarter earnings of 18 cents per share ex-items on revenue of $3.96 billion. Analysts had expected a profit of 21 cents per share on revenues of $4.16 billion, according to Refinitiv.

DoorDash — The delivery app saw shares jump more than 8% in extended trading after DoorDash’s first-quarter revenue topped analyst estimates. DoorDash posted $1.46 billion in revenue versus the Refinitiv consensus estimate of $1.38 billion.
Dropbox — The stock added roughly 1% after hours following a better-than-expected quarterly report. Dropbox notched an adjusted profit of 38 cents per share on revenues of $562 million. Analysts had expected earnings of 37 cents per share on revenues of $559 million, according to Refinitiv.
Zillow Group — The online real-estate marketplace saw shares tumble about 10% after hours despite a beat on the top and bottom lines. Zillow reported first-quarter adjusted earnings of 49 cents per share on revenue of $4.26 billion. The Refinitiv consensus estimate was 26 cents per share earned on revenue of $3.39 billion.
Virgin Galactic Holdings — The space stock fell about 2% in after-hours trading as the company said it would delay its commercial service launch to the first quarter of 2023.
Sweetgreen – Shares popped more than 4% in extended trading after the salad chain posted a beat on revenue. Sweetgreen lost 45 cents per share and posted revenues of $102.6 million. Analysts polled by Refinitiv forecasted a 41 cent per share loss, on revenues of $101.5 million.

Live Nation Entertainment — The stock rose about 3% in after-hours trading as Live Nation posted a narrower-than-expected loss per share. The company lost 39 cents per share versus the Refinitiv consensus estimated loss of 79 cents per share. Revenue came in slightly lower than expected.
Shake Shack — The restaurant chain’s stock added roughly 1% in extended hours after a better-than-expected quarterly report. Shake Shack reported a first-quarter loss of 19 cents per share ex-items on revenue of $203 million. Analysts surveyed by Refinitiv had expected a loss per share of 22 cents on revenue of $201 million.
— CNBC’s Sarah Min contributed to this report.

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Elon Musk twitter account is seen through Twitter logo in this illustration taken, April 25, 2022. 
Dado Ruvic | Reuters

Check out the companies making headlines in midday trading Thursday:
EPAM Systems — Shares jumped 10.7% after the computer software company posted better-than-expected results for the previous quarter. EPAM reported $2.49 earnings per share on revenues of $1.17 billion. The company was forecasted to earn $1.79 per share on revenues of $1.06 billion, according to a consensus estimate from FactSet.

Booking Holdings — Booking’s stock price jumped 3.3% after the company’s quarterly results topped analyst expectations. The travel company also reported $27 billion in gross bookings for its most recent quarter, record quarterly amount for Booking. The company also said it is preparing for a busy travel season in the summer.
Shopify — Shares of the e-commerce platform stock fell 14.9% after the company forecast that revenue growth would be lower in the first half of the year, as it navigates tough pandemic-era comparisons. Shopify also reported adjusted quarterly earnings of 20 cents per share, well below the Refinitiv forecast of 64 cents per share.
Twitter — Shares gained 2.7% after CNBC’s David Faber reported Elon Musk is expected to serve as temporary CEO of Twitter for a few months after he completes his $44 billion takeover of the social media platform. Regulatory filings published Thursday also showed Musk received another $7 billion from friends and investors to buy Twitter.
Etsy — Shares of the online marketplace dropped 16.8% after the company released weaker-than-expected guidance for the current quarter amid a drop in disposable income for consumers. Etsy did report earnings that matched expectations and post better-than-expected revenue.
— CNBC’s Yun Li and Hannah Miao and contributed reporting.

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