(In Oct. 30 story, corrects headline, paragraphs 1, 2 to show that Wilson is chair)

(Reuters) -The FedEx Master Executive Council, the governing body of the delivery firm’s unit in the Air Line Pilots Association (ALPA), said on Monday it had elected a new chair after union members rejected a tentative contract with the company in July.

ALPA elected Billy Wilson last week to serve as chair for an interim term running through March 2025, replacing Chris Norman, who was instrumental in shaping the tentative agreement that union members voted down over pay and job security issues.

The union represents 6,000 pilots at FedEx, which did not immediately respond to a request for comment.

“I am committed to bringing all of our pilots together as we reestablish negotiations,” Wilson said in a statement.

Wilson called for compensation that is commensurate with pilots at other airlines, where commercial pilots have won significant raises, reflecting their bargaining power in an era of staff shortages.

Wilson said FedEx pilots transported vital goods when businesses shut down in the early days of the COVID pandemic.

“We paid a heavy price for this while the company made historic profits,” he said, adding that quality of life, work rules and retirement are also key issues for ALPA members.

The tentative FedEx deal rejected by pilots included a 30% pay rise and a 30% increase to their legacy pensions.

American Airlines pilots, represented by the Allied Pilots Association (APA), in August ratified a deal that raises their compensation by more 46% over the four-year duration of their contract.

(Reporting by Priyamvada C in Bengaluru and Lisa Baertlein in Los Angeles; Editing by Devika Syamnath, Alexander Smith and David Evans)

By Caroline Valetkevitch

NEW YORK (Reuters) -Global stock indexes rallied and the U.S. dollar fell on Thursday on investor optimism that the Federal Reserve may be done hiking interest rates, while benchmark 10-year Treasury yields fell to three-week lows.

Investors also assessed Thursday’s actions by the Bank of England, which kept rates at a 15-year high and stressed that it did not expect to start cutting them any time soon.

The Fed on Wednesday held interest rates steady as expected, and while Chair Jerome Powell left the door open to more tightening he also nodded to the impact of a recent surge in bond yields on the economy.

Even though neither the Fed nor the BoE signalled that rate cuts were likely any time soon, just the glimpse of light at the end of the tunnel after 20 months of relentless hiking was enough to recharge the bulls.

Bond yields extended their move lower from Wednesday on relief that the U.S. Treasury Department announced smaller-than-expected increases in longer-dated Treasury supply.

Benchmark 10-year notes yields were last down 15 basis points at 4.645% after touching 4.626%, the lowest since Oct. 13. They were on track for their biggest one-day yield drop since March.

In stocks, the Dow Jones Industrial Average rose 389.08 points, or 1.17%, to 33,663.66, the S&P 500 gained 62.04 points, or 1.46%, to 4,299.9 and the Nasdaq Composite added 176.79 points, or 1.35%, to 13,238.25.

The pan-European STOXX 600 index rose 1.77% and MSCI’s gauge of stocks across the globe gained 1.71%.

The moves follow sharp gains overnight in Japanese stocks.

In foreign exchange, the U.S. dollar was broadly lower on the perception that U.S. rate had peaked, raising risk appetite.

Brad Bechtel, global head of FX, at Jefferies in New York, said the Fed is probably done hiking rates, but he could see the rationale for tightening one more time given the still-resilient U.S. economy.

“But at the same time, everyone is looking at a slowdown and inflation is going in the right direction,” Bechtel said.

Markets now see a below-20% chance that U.S. rates will rise in December.

Sterling, meanwhile, held firm after the BoE decision. The pound rose as much as 0.6% against the dollar to $1.2225, its highest level in 1-1/2 weeks. It was last up 0.2%.

The dollar index, which measures the greenback against six other major currencies, was last 0.2% lower at 106.25.

Bitcoin, sometimes traded as a proxy for risk-taking, broke above $35,000 to hit its highest level since May 2022.

Investors are keenly awaiting results from Apple, due after the closing bell. Apple, a bellwether for consumer demand and the tech sector, is expected to report a 1% decrease in quarterly revenue.

Also, U.S. non-farm payrolls data is due out on Friday. A tight labor market is considered a key factor in the outlook for interest rates.

(Additional reporting by Gertrude Chavez-Dreyfuss in New York, Marc Jones in London, Stella Qiu in Sydney, and Samuel Indyk in London; Editing by Emelia Sithole-Matarise, Susan Fenton and Richard Chang)

By Marc Jones

LONDON (Reuters) – Share and bond markets extended a global rally on Thursday as non-committal Federal Reserve and Bank of England chiefs had traders doubling down on bets that world interest rates may finally have peaked.

Even though neither the Fed nor BoE signalled that rate cuts were likely any time soon, just the glimpse of light at the end of the tunnel after 20 months of relentless hiking was enough to recharge the bulls.

Europe’s STOXX 600 and London’s FTSE were both up well over 1% with Wall Street opening not too far behind as the dollar took its biggest dive in the currency markets since July. [/FRX] [.N]

Shorter-term bond market yields were at two-month lows [GVD/EUR] and the dollar’s back-pedalling meant relief for the under-pressure Japanese yen and dozens of emerging market currencies that have been suffering this year. [/FRX]

Fed Chair Jerome Powell’s comments that the U.S. central bank’s aggressive 20-month run of rate increases was likely to slow the economy after what he had described as the “outsized” jump in Q3 U.S. GDP, was the main takeaway for many analysts, although he had been careful to keep the door open to another hike if needed.

The BoE’s Governor, Andrew Bailey, tried to hammer home that “it’s much too early to be thinking about rate cuts,” but a 0.4% drop by the pound versus the euro and tumble in gilt yields suggested traders were at least considering it.

“They’ll likely be sitting on ‘Table Mountain’ for a while,” said Samuel Zief, head Of global fx strategy at J.P. Morgan Private Bank in London, referring to the BoE keeping rates at their current 5.25%.

“But in our view the next move for the BoE will be to lower rates.”

Markets are now pricing in a rate cut around September 2024, which would be well after other parts of Europe are expected to have started the process.

Jefferies’ chief European economist Mohit Kumar said, “we remain of the view that November could see a positive performance from rates, credit and equities”.

APPLE EYED

Overnight, MSCI’s broadest index of Asia-Pacific shares outside Japan had surged 1.75%，the biggest daily jump since late July. Tokyo’s Nikkei had also gained 1.1% while the S&P 500’s early rise put it on firmly on track for a fourth day on unbroken gains. [.N]

Investors are keenly awaiting results from Apple, a bellwether for consumer demand and the tech sector. The Cupertino, California-based company is expected to report a 1% decrease in quarterly revenue.

The next big focal point after that will be U.S. non-farm payrolls data on Friday, which analysts expect to show the economy added 180,000 jobs in October, slowing from a 336,000 increase the previous month.

It will come after mixed data showed strong job openings and slower than expected growth in private payrolls.

Fed funds futures markets were continuing to pare back the chance of a December rate hike to about 20% and a January move to 25%. Markets have priced in a 70% chance that the tightening is now over and U.S. rate cuts could begin as soon as June next year.

The upbeat mood was also lifting commodity markets. Brent crude futures climbed as much as 1.6% to $85.95 a barrel while U.S. West Texas Intermediate futures reached as high $82.07 before easing back to just under $81 a barrel.

The price of gold, which has surged almost 10% since Hamas’ attack on Israel last month ignited Middle East tensions, was 0.2% higher at $1,985.99 per ounce.

Global head of commodities, options and international markets at CME, Derek Sammann said volatility and volumes in options markets have spiked sharply over the last month due to the troubles.

October saw a 22% jump in overall options volumes year-on-year while those that focus on energy markets like oil have surged nearly 80%. “There are so many unknowns at the moment,” Sammann said.

(Additional Reporting by Stella Qiu in Sydney and Samuel Indyk in London; Editing by Emelia Sithole-Matarise and Susan Fenton)

By Deborah Mary Sophia

(Reuters) -Starbucks leaned on the hype around its Pumpkin Spice Latte and other fall-themed drinks in North America to surpass Wall Street targets for fourth-quarter results, as demand for its pricey coffees defied sticky inflation.

Its shares shot up 11% in early trading on Thursday, after the global coffeehouse giant also delivered an upbeat annual profit forecast, banking on its updated store technology and menu enhancements.

The seasonal return of the Pumpkin Spice Latte (PSL) in August, coupled with new menu items such as the Iced Pumpkin Cream Chai Tea Latte and apple-flavored Espressos and croissants, helped drive U.S. same-store sales up 8% in the quarter.

Placer.ai data showed a 20% surge in visits on the day of the PSL launch. Starbucks also said the fall-season launch led to record average weekly sales.

Traffic at the coffee chain has also benefited from its younger, more affluent customer base prioritizing their morning coffee fix even as the wider U.S. restaurant industry grapples with an inflation-driven slowdown.

“Customer demand for us remains strong. We’re not really seeing any change in the sentiment,” CEO Laxman Narasimhan said on a post-earnings call.

Starbucks forecast fiscal 2024 per-share profit growth of 15% to 20%, above analysts’ estimates of 15.1%, according to LSEG data.

It expects fiscal 2024 global comparable sales to grow between 5% and 7%, with China sales also projected to rise 4% to 6% in the last three quarters. Sales in China would be higher than that range in the first quarter, it said.

In the U.S., fourth-quarter transactions rose 2% and average spending per customer jumped, as demand for its breakfast sandwiches, wraps and bakery items increasingly became a regular part of orders.

“The consumer is stressed, but they’re going to go to … those affordable luxuries… And Starbucks does a great job with that,” Stephens analyst Joshua Long said.

Quarterly China sales came in just 5% higher, much smaller than the previous quarter’s 46% surge, but analysts said that was in line with expectations.

Global comparable sales at Starbucks climbed 8% in the quarter ended Oct. 1, beating expectations for a 6.56% rise. Adjusted per-share profit of $1.06 surpassed estimates of 97 cents.

(Reporting by Deborah Sophia in Bengaluru; Editing by Devika Syamnath)

By Marc Jones

LONDON (Reuters) – European shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve chief had traders doubling down on bets that U.S. interest rates – the main driver of world borrowing costs – have finally peaked.

With expectations that the Bank of England might send a similar signal in a few hours, Europe’s STOXX 600 and London’s FTSE were both up over 1% early on, with the former on course for its first four-day run of gains since July.

Shorter-term bond market yields were at two-month lows [GVD/EUR] and the dollar was back-pedalling in the foreign exchange markets, much to the relief of the Japanese yen and the dozens of emerging market currencies that have been suffering this year. [/FRX]

Fed Chair Jerome Powell’s comments that its aggressive 20-month run of rate increases was likely to slow the economy after what he had described as the “outsized” jump in Q3 U.S. GDP, was the main takeaway for many analysts, although he had been careful to keep the door open to another hike if needed.

“A lot of things went right for the rates market yesterday,” Jefferies chief European economist Mohit Kumar said, adding that today’s focus would be on the Bank of England and U.S. unemployment claims and factory orders data.

Sterling crept 0.2% higher to $1.2173 but slipped to 87.14 per euro as dealers waited for the BOE’s rate decision due at 1200, which will also come with new economic forecasts.

Markets price an almost 90% chance the bank will keep UK rates at their current 15-year high of 5.25%, but have not fully priced a rate cut until September 2024 — well after cuts are expected to have begun in other parts of Europe.

“Pricing is reflecting the view that BoE rates will have to remain on ‘Table Mountain’ for some months given the UK’s inflation risks,” said RaboBank FX strategist Jane Foley.

Jefferies’ Kumar added: “we remain of the view that November could see a positive performance from rates, credit and equities”.

APPLE EYED

Overnight, MSCI’s broadest index of Asia-Pacific shares outside Japan had surged 1.6%，the biggest daily jump since late July. Tokyo’s Nikkei had also gained 1.1% while S&P 500 futures and Nasdaq futures were pointing to another 0.5% rise on Wall Street later.

Investors are now awaiting results from Apple, a bellwether for consumer demand and the tech sector. The Cupertino California-based company is expected to report a 1% decrease in quarterly revenue.

The next big focal point after that will be U.S. non-farm payrolls data on Friday, which analysts expect to show the economy added 180,000 jobs in October, slowing from a 336,000 increase the previous month.

It will come after mixed data showed strong job openings and slower than expected growth in private payrolls.

Fed funds futures markets pared back the chance of a December rate hike to about 20% and a January move to 25%. Markets have priced in a 70% chance that the tightening is now over and U.S. rate cuts could begin as soon as June.

The upbeat mood was also lifting commodity markets. Brent crude futures climbed 1.6% to $85.95 a barrel while U.S. West Texas Intermediate futures were at $81.87 a barrel, up 1.8%.

The price of gold, which has surged almost 10% since Hamas’ attack on Israel last month ignited Middle East tensions, was 0.2% higher at $1,985.99 per ounce.

(Additional Reporting by Stella Qiu in Sydney and Samuel Indyk in London; Editing by Emelia Sithole-Matarise)

(Reuters) -Starbucks beat Wall Street targets for fourth-quarter results on Thursday, as strong demand for its pricey coffees and cold drinks in North America offset a feeble recovery in China, sending its shares up 8% premarket.

The global coffee chain has benefited from a younger, more affluent consumer base despite the wider U.S. restaurant industry grappling with a slowdown as sticky inflation prompts people to rethink dining out.

Traffic at the coffee chain’s U.S. locations jumped throughout the quarter, data from Placer.ai showed, boosted by the fanfare around the late-August return of its iconic fall season staple – the Pumpkin Spice Latte.

There was a 20% surge in traffic on the day of the launch, and it continued to climb in the weeks after, the data showed.

Starbucks has also leaned on its breakfast sandwiches, wraps and bakery items to drive up customer spending at stores. Average ticket in the U.S. – or the average spending per customer on a visit – jumped 6% in the quarter.

That, coupled with a 2% rise in customer transactions, propelled U.S. same-store sales 8% higher.

Still, China sales came in just 5% higher – much smaller than the 46% surge seen in the previous quarter – suggesting that trends in the company’s second-largest market were not recovering as robustly as expected.

Ticket fell 3% in China, indicating consumers were spending less at the coffee chain, as it also faces tough competition from local rivals such as Luckin Coffee and Manner Coffee.

Global comparable sales at Starbucks climbed 8% in the fiscal fourth quarter, compared with analysts’ expectations for a 6.56% rise, according to LSEG IBES data.

Excluding items, Starbucks posted a per-share profit of $1.06 for the quarter ended Oct. 1, surpassing estimates of 97 cents.

(Reporting by Deborah Sophia in Bengaluru; Editing by Devika Syamnath)

BP Downgrade After Earnings Miss and Management Shock

Oil majors have been the center of attention in the aftermath of oil prices powering and finding support above the $ 80-a-barrel level. Investors have fallen in love with them in anticipation of bumper returns and rewards on dividends and buybacks. Consequently, most investors have continued to ramp up positions, pushing the stocks up the charts to the extent of outperforming the market. However, not any more.

BP Downgrade

Analysts at JPMorgan are the latest to sound warning bells signaling that upward momentum in the oil market may be fading. The analysts have downgraded BP to underweight, equivalent to a sell rating. The rating distinguishes the oil major from Chevron, Exxon Mobil, Shell and TotalEnergies, which continue to enjoy positive ratings.

The negative rating on BP comes on the heels of TotalEnergies being upgraded by analysts at Mediobanca SpA. It also comes against the backdrop of the company delivering a significant miss on third-quarter profit. The company had a $3.3 billion in Q3 profit, down 59% from the $8.15 billion paid a year ago. The drop came as revenues and other incomes fell by 6.5% to $54 billion.

The earnings miss has seen BP stock come under pressure, dropping by about 7% since it delivered its Q3 report. Amid the recent drop, the stock is still up by about 5% for the year, supported by the high oil prices. Nevertheless, the oil major remains under pressure amid the falling crude oil prices.

Prices have dropped below the $ 90-a-barrel level and are at risk of falling below the $ 80-a-barrel level. The drop comes on growing concerns about demand in the aftermath of China’s critical oil import reporting disappointing economic data that signals the economy might be slowing down.

Declining oil prices are not the only headwind taking a toll on BP sentiments in the market. Management shocks in the aftermath of Chief Executive Officer Bernard Looney resigning over failure to disclose past relationships with colleagues also take a toll on its sentiments. The shakeup could not have come at a worse time as BP is trying to persuade investors about its long-term prospects as it transitions to a low-carbon energy entity.

Better Oil Plays

BP faces the risk of lagging as its peers led by Exxon Mobil and Chevron has insisted on sticking closely to their core oil and gas business amid the low carbon push. Consequently, they have been more appealing to investors, especially when oil prices find support above the $80 a barrel level.

Oil and gas majors refocused on their core business have been winning back investors instead of companies embracing the net-zero targets. The Russia-Ukraine war, which triggered a big deficit in the market, triggered a massive opportunity that the companies are increasingly taking advantage of as oil prices stabilize above the $80 a barrel level.

Companies like Sell TotalEnergies and Eni SpA have emerged as big winners in signing big supply deals that would put them at the heart of Europe’s energy ecosystem; for investors looking to bet on the oil and gas industry, Exxon Mobil and Chevron have emerged as solid plays.

(Reuters) – Rapid advances in artificial intelligence (AI) such as Microsoft-backed OpenAI’s ChatGPT are complicating governments’ efforts to agree laws governing the use of the technology.

Here are the latest steps national and international governing bodies are taking to regulate AI tools:

AUSTRALIA

* Planning regulations

Australia will make search engines draft new codes to prevent the sharing of child sexual abuse material created by AI and the production of deepfake versions of the same material.

BRITAIN

* Planning regulations

More than 25 countries present at the first global AI Safety Summit at Bletchley Park, including the U.S. and China, as well as the EU, on Nov. 1 signed a “Bletchley Declaration” saying countries needed to work together and establish a common approach on oversight.

Britain said at the summit it would triple to 300 million pounds ($364 million) its funding for the “AI Research Resource”, comprising two supercomputers which will support research into making advanced AI models safe.

Prime Minister Rishi Sunak on Oct. 26 said Britain would set up the world’s first AI safety institute to “understand what each new model is capable of, exploring all the risks from social harms like bias and misinformation through to the most extreme risks”.

Britain’s data watchdog said on Oct. 10 it had issued Snap Inc’s Snapchat with a preliminary enforcement notice over a possible failure to properly assess the privacy risks of its generative AI chatbot to users, particularly children.

CHINA

* Implemented temporary regulations

Wu Zhaohui, China’s vice minister of science and technology, told the opening session of the AI Safety Summit in Britain on Nov. 1 that Beijing was ready to increase collaboration on AI safety to help build an international “governance framework”.

China published proposed security requirements for firms offering services powered by generative AI in October, including a blacklist of sources that cannot be used to train AI models.

The country issued a set of temporary measures in August, requiring service providers to submit security assessments and receive clearance before releasing mass-market AI products.

EUROPEAN UNION

* Planning regulations

European lawmakers agreed on Oct. 24 on a critical part of new AI rules outlining the types of systems that will be designated “high risk”, inching closer to a broader agreement on the landmark AI Act which is expected in December, according to five people familiar with the matter.

European Commission President Ursula von der Leyen on Sept. 13 called for a global panel to assess the risks and benefits of AI.

FRANCE

* Investigating possible breaches

France’s privacy watchdog said in April it was investigating complaints about ChatGPT.

G7

* Seeking input on regulations

The Group of Seven countries agreed on Oct. 30 to an 11-point code of conduct for firms developing advanced AI systems, which “aims to promote safe, secure, and trustworthy AI worldwide”.

ITALY

* Investigating possible breaches

Italy’s data protection authority plans to review AI platforms and hire experts in the field, a top official said in May. ChatGPT was temporarily banned in the country in March, but it was made available again in April.

JAPAN

* Investigating possible breaches

Japan expects to introduce by the end of 2023 regulations that are likely closer to the U.S. attitude than the stringent ones planned in the EU, an official close to deliberations said in July.

The country’s privacy watchdog has warned OpenAI not to collect sensitive data without people’s permission.

POLAND

* Investigating possible breaches

Poland’s Personal Data Protection Office said in September it was investigating OpenAI over a complaint that ChatGPT breaks EU data protection laws.

SPAIN

* Investigating possible breaches

Spain’s data protection agency in April launched a preliminary investigation into potential data breaches by ChatGPT.

UNITED NATIONS

* Planning regulations

The U.N. Secretary-General António Guterres on Oct. 26 announced the creation of a 39-member advisory body, composed of tech company executives, government officials and academics, to address issues in the international governance of AI.

The U.N. Security Council held its first formal discussion on AI in July, addressing military and non-military applications of AI that “could have very serious consequences for global peace and security”, Guterres said at the time.

U.S.

* Seeking input on regulations

The U.S. will launch an AI safety institute to evaluate known and emerging risks of so-called “frontier” AI models, Secretary of Commerce Gina Raimondo said on Nov. 1 during the AI Safety Summit in Britain.

President Joe Biden issued a new executive order on Oct. 30 to require developers of AI systems that pose risks to U.S. national security, the economy, public health or safety to share the results of safety tests with the government.

The U.S. Congress in September held hearings on AI and an AI forum featuring Meta CEO Mark Zuckerberg and Tesla CEO Elon Musk. More than 60 senators took part in the talks, during which Musk called for a U.S. “referee” for AI.

The U.S. Federal Trade Commission opened in July an investigation into OpenAI on claims that it has run afoul of consumer protection laws.

(Compiled by Alessandro Parodi and Amir Orusov in Gdansk; editing by Kirsten Donovan, Mark Potter, Christina Fincher and Milla Nissi)

By Stella Qiu

SYDNEY (Reuters) – Asian shares and bonds extended a global rally on Thursday as a non-committal Federal Reserve Chair had markets double down on bets that U.S. interest rates have peaked and cuts are on the way.

Investors are now awaiting the results from Apple later in the day, a bellwether for consumer demand and the tech sector. The Cupertino California-based company is expected to report a 1% decrease in quarterly revenue.

MSCI’s broadest index of Asia-Pacific shares outside Japan surged 1.7% to the highest level in one week. Tokyo’s Nikkei gained 1.4% to cross the 32,000 level for the first time in two weeks.

China’s blue chips were 0.3% higher, while Hong Kong’s Hang Seng index jumped 1.7%.

Stock futures in Europe and U.S. also gained. EUROSTOXX 50 futures rose 0.8% early in Asia, while S&P 500 futures added 0.3% and Nasdaq futures increased 0.5%.

Overnight, the Fed held the policy rate steady in its current 5.25%-5.50% range. While Chair Jerome Powell did not rule out another hike, markets judged he was not quite as hawkish as he might have been.

Fed funds futures rallied as markets pared back the risk of a December hike to about 22% and a January move to 28%. Markets have priced in a 70% chance that the tightening is over and rate cuts could amount to 85 basis points next year, beginning as soon as June.

Wall Street and Treasuries rallied. The S&P 500 gained 1% and the Nasdaq Composite surged 1.6%.

The benchmark 10-year Treasury yield eased another 2 basis points to 4.7089%, the lowest in more than two weeks. Overnight, it tumbled 14 basis points, the biggest daily drop since March, also in part due to a Treasury announcement that said the government will slow increases in the size of its longer-dated auctions.

“While growth was incredibly strong in the third quarter of 2024 at 5%, we suspect a substantial slowing in 4Q24, which, based on Powell’s remarks today, likely won’t be enough to garner additional tightening,” Tiffany Wilding, an economist at PIMCO, wrote in a note to clients.

“Instead the FOMC is happy to remain on hold, and watch and see how the economy evolves early next year.”

The next big focal point for the market is the non-farm payrolls data on Friday, which analysts expect to show the economy added 180,000 jobs in October, slowing from 336,000 increase the previous month. It will come after private payrolls increased far less than expected.

The dollar was again on the back foot on Thursday, falling 0.1% against its peers. The prospect that the Fed is done tightening buoyed risk sensitive currencies the most, with Australian dollar bouncing 0.6% to a three-week high of $0.6428.

“Although the FOMC may not be talking about it today, within a few months, the question will no longer be ‘Will they hike again?’ but ‘When will they cut?’,” said Seema Shah, Chief Global Strategist at Principal Asset Management.

The yen continued to regain ground – up 0.3% to 150.46 per dollar on Thursday. It had hit a one-year low after a Bank of Japan decision to ease its control over the 1% cap on 10-year yields, with the tweak seen insufficient to close the wide interest rate gaps between Japan and other countries.

Oil prices traded higher as the conflict in the Middle East kept investors on edge about whether it could disrupt oil supplies. Brent crude futures climbed 1.2% to $85.61 a barrel while U.S. West Texas Intermediate futures were at $81.43 a barrel, up 1.2%.

The price of gold was 0.2% higher at $1,985.86 per ounce.

(Reporting by Stella Qiu; Editing by Edwina Gibbs)

By Juveria Tabassum

(Reuters) -Clorox said on Wednesday it expects to rebuild customer inventory levels by the end of the current quarter, as it recovers from an August cyberattack that threw its order fulfillment facilities out of gear for more than a month.

Shares of the cleaning supplies maker rose over 6% in extended trade, reversing earlier losses.

The company topped market expectations for first-quarter revenue, and posted a surprise profit against market expectations of a loss.

Clorox said that it expects second-quarter organic sales to be up mid-single digits as restocking customer inventory levels help soften the blow from lost consumption.

For the first quarter ended Sept. 30, the company posted a profit of 49 cents, as it benefited from multiple rounds of price hikes taken over the last two years. Analysts had expected it to post a loss of 22 cents, as per LSEG data.

The Pine-Sol manufacturer was among several companies including gambling giants MGM Resorts International and Caesars Entertainment to be hit by cyber attacks since August. Clorox had anticipated its first-quarter results to be impacted by the shipping delays caused by the incident.

Still, the attack took a toll on the company’s annual profit and revenue forecasts, as well as gross margin growth expectations.

With Clorox’s products off the shelves for a short period in September due to the attack, CFO Kevin Jacobsen told Reuters that private label brands made some inroads into the company’s market share.

The company now expects an annual adjusted profit between $4.30 and $4.80 per share, compared with its previous forecast of $5.60 and $5.90 per share.

Clorox expects net sales to be down mid-to-high single digits, as against its previous forecast of flat to 2% up.

(Reporting by Juveria Tabassum; Editing by Shailesh Kuber)