PayPal, Block down in premarket trading
11/04/2022 12:22
** Shares of payments companies PayPal Holdings Inc PYPL.O
and Block Inc SQ.N decline in early premarket trading
** PYPL down 1.6% at $109.40, while SQ sheds 1.8% to trade
at $121
** Investors this week are focusing on the U.S. consumer
price index data for March, which is due on Tuesday.
** Data is expected to show hotter inflation as the Ukraine
crisis fuels price hikes, adding to worries for Americans
already reeling under the pressure of decades-high inflation
** A jump in prices discourages consumers from spending, and
therefore hits payment volumes for companies like SQ and PYPL
** Besides, some brokerages have also cut forecasts for
financial stocks, saying an aggressive Federal Reserve will
enact measures that could possibly bring a recession in 2023
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** YTD, PYPL and SQ have lost 41% and 24% of their market
cap, respectively
(Reporting by Niket Nishant in Bengaluru)
((Niket.Nishant@thomsonreuters.com;))