Market Update
Wall Street Tunes Out Trump's Tariff Tantrum, New Home Sales Dropped
Barry Adams
26 Nov, 2024
New York City
Stock market indexes wavered on Wall Street as investors ignored the latest threat of higher tariffs.
The S&P 500 index increased 0.2% and the Nasdaq Composite advanced 0.4% after leading specialty retailers reported mixed quarterly results.
Abercrombie & Fitch estimated strong sales growth in the coming holiday season, and Dick's Sporting Goods lifted its annual earnings outlook after comparable same-store sales accelerated in the third quarter.
On Wall Street, the Dow, the S&P 500 index, and the Russell 2000 notched fresh new highs as positive investor sentiment supported the latest rebound in the market.
New home sales in October dropped 17.3% from the previous month following the surge in mortgage rates, according to the latest report from the U.S. Census Bureau.
New home sales dropped to an annual rate of 610,000 from the unrevised 738,000 and fell at the fastest pace since 2013 and fell to the lowest level since 2022, after two hurricanes, Helene and Milton, struck in the month.
New home sales dropped 9.3% from a year ago, driven by a 19.7% plunge in sales in the South.
Home prices in the month increased, despite the decline in sales.
The median home price increased to $437,300, and the average home price rose to $545,800, an increase of $11,000 from the previous month, respectively.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,996.34, the Nasdaq Composite rose 0.4% to 19,122.41, and the Russell 2000 index inched lower 0.8% to 2,432.72.
The yield on 2-year Treasury notes edged lower to 4.26%, 10-year Treasury notes inched lower to 4.29%, and 30-year Treasury bonds decreased to 4.49%.
WTI crude oil increased $0.69 to $69.56 a barrel, and natural gas prices edged up 1 cent to $3.44 a thermal unit.
Gold decreased by $19.02 to $2,629.47 an ounce, and silver advanced by $0.39 to $30.50.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.77.
U.S. Stock Movers
Abercrombie & Fitch declined 5.2% to $146.41 after the specialty apparel retailer reported third quarter results.
Revenue in the fiscal third quarter ending on October 28 increased 14% to $1.20 billion from $1.05 billion, net income advanced to $131.97 million from $96.5 million, and diluted earnings per share edged higher to $2.50 from $1.83 a year ago.
Comparable same-store sales in the quarter soared 16%, and the retailer revised fourth quarter sales growth to between 5% and 7%.
The apparel retailer also lifted its full-year sales outlook to between 14% and 15%, from the previous estimated range between 12% and 13%.
The current annual sales outlook includes an adverse impact from the loss of 120 basis points from the loss of an extra week in 2023.
Best Buy Company declined 5.4% to $88.0 after the consumer electronics retailer reported weaker-than-estimated revenue and earnings in the third quarter.
Revenue in the fiscal third quarter ending on November 2 declined to $9.44 billion from $9.75 billion, net income increased to $273 million from $263 million, and diluted earnings per share rose to $1.26 from $1.21 a year earlier.
Comparable domestic same-store store sales declined to 2.8% from 7.3%, and the retailer adjusted its full-year comparable sales estimate to decline in the range of 2.5% and 3.% from the previous estimated range of decline between 3.0% and 1.5%.
The company also lowered its full-year sales range to between $41.1 billion and $41.5 billion, from the previous guidance between $41.3 billion and $41.9 billion.
Dick's Sporting Goods jumped 8.4% to $233.24 after the outdoor goods retailer posed strong third quarter earnings and lifted its annual outlook, driven by demand improvement during the back-to-school shopping season.
Revenue in the fiscal third quarter ending on November 2 increased 0.5% to $3.06 billion from $3.04 billion, net income advanced 13% to $228 million from $201 million, and diluted earnings per share rose 15% to $2.75 from $2.39 a year earlier.
Comparable same-store sales in the quarter accelerated to 4.2% from 1.9% a year ago, and the company raised comparable sales growth guidance for the full-year to a range of 3.6% to 4.2% from the previous range between $2.5% and 3.5%.
The company also raised full-year 2024 earnings per diluted share guidance to a range of $13.65 to 13.95, up from the previously estimated range between $13.55 and $13.90.
Kohl's Corp. declined 18% to $14.97 after the department store operator said its chief executive Tom Kingsbury would step down.
Ashley Buchanan, chief executive of crafts store chain The Michal's Companies, will replace Kingsbury effective January 15.
Zoom Video Communication decreased 5% to $84.57 after the video communication company reported fiscal fourth quarter earnings that met investor expectations.
U.S. Movers: Abercrombie & Fitch, Best Buy, Dick's Sporting Goods, Kohl's, Zoom Video Communication
Scott Peters
26 Nov, 2024
New York City
Abercrombie & Fitch declined 5.2% to $146.41 after the specialty apparel retailer reported third quarter results.
Revenue in the fiscal third quarter ending on October 28 increased 14% to $1.20 billion from $1.05 billion, net income advanced to $131.97 million from $96.5 million, and diluted earnings per share edged higher to $2.50 from $1.83 a year ago.
Comparable same-store sales in the quarter soared 16%, and the retailer revised fourth quarter sales growth to between 5% and 7%.
The apparel retailer also lifted its full-year sales outlook to between 14% and 15%, from the previous estimated range between 12% and 13%.
The current annual sales outlook increase includes an adverse impact from the loss of 120 basis points from the loss of an extra week in 2023.
Best Buy Company declined 5.4% to $88.0 after the consumer electronics retailer reported weaker-than-estimated revenue and earnings in the third quarter.
Revenue in the fiscal third quarter ending on November 2 declined to $9.44 billion from $9.75 billion, net income increased to $273 million from $263 million, and diluted earnings per share rose to $1.26 from $1.21 a year earlier.
Comparable domestic same-store store sales declined to 2.8% from 7.3%, and the retailer adjusted its full-year comparable sales estimate to decline in the range of 2.5% and 3.% from the previous estimated range of decline between 3.0% and 1.5%.
The company also lowered its full-year sales range to between $41.1 billion and $41.5 billion, from the previous guidance between $41.3 billion and $41.9 billion.
Dick's Sporting Goods jumped 8.4% to $233.24 after the outdoor goods retailer posed strong third quarter earnings and lifted its annual outlook, driven by demand improvement during the back-to-school shopping season.
Revenue in the fiscal third quarter ending on November 2 increased 0.5% to $3.06 billion from $3.04 billion, net income advanced 13% to $228 million from $201 million, and diluted earnings per share rose 15% to $2.75 from $2.39 a year earlier.
Comparable same-store sales in the quarter accelerated to 4.2% from 1.9% a year ago, and the company raised comparable sales growth guidance for the full-year to a range of 3.6% to 4.2% from the previous range between $2.5% and 3.5%.
The company also raised full-year 2024 earnings per diluted share guidance to a range of $13.65 to 13.95, up from the previously estimated range between $13.55 and $13.90.
Kohl's Corp. declined 18% to $14.97 after the department store operator said its chief executive Tom Kingsbury would step down.
Ashley Buchanan, chief executive of crafts store chain The Michal's Companies, will replace Kingsbury effective January 15.
Zoom Video Communication decreased 5% to $84.57 after the video communication company reported fiscal fourth quarter earnings that met investor expectations.
U.S. Movers: Abercrombie & Fitch, Best Buy, Dick's Sporting Goods, Kohl's, Zoom Video Communication
Scott Peters
26 Nov, 2024
New York City
Abercrombie & Fitch declined 5.2% to $146.41 after the specialty apparel retailer reported third quarter results.
Revenue in the fiscal third quarter ending on October 28 increased 14% to $1.20 billion from $1.05 billion, net income advanced to $131.97 million from $96.5 million, and diluted earnings per share edged higher to $2.50 from $1.83 a year ago.
Comparable same-store sales in the quarter soared 16%, and the retailer revised fourth quarter sales growth to between 5% and 7%.
The apparel retailer also lifted its full-year sales outlook to between 14% and 15%, from the previous estimated range between 12% and 13%.
The current annual sales outlook increase includes an adverse impact from the loss of 120 basis points from the loss of an extra week in 2023.
Best Buy Company declined 5.4% to $88.0 after the consumer electronics retailer reported weaker-than-estimated revenue and earnings in the third quarter.
Revenue in the fiscal third quarter ending on November 2 declined to $9.44 billion from $9.75 billion, net income increased to $273 million from $263 million, and diluted earnings per share rose to $1.26 from $1.21 a year earlier.
Comparable domestic same-store store sales declined to 2.8% from 7.3%, and the retailer adjusted its full-year comparable sales estimate to decline in the range of 2.5% and 3.% from the previous estimated range of decline between 3.0% and 1.5%.
The company also lowered its full-year sales range to between $41.1 billion and $41.5 billion, from the previous guidance between $41.3 billion and $41.9 billion.
Dick's Sporting Goods jumped 8.4% to $233.24 after the outdoor goods retailer posed strong third quarter earnings and lifted its annual outlook, driven by demand improvement during the back-to-school shopping season.
Revenue in the fiscal third quarter ending on November 2 increased 0.5% to $3.06 billion from $3.04 billion, net income advanced 13% to $228 million from $201 million, and diluted earnings per share rose 15% to $2.75 from $2.39 a year earlier.
Comparable same-store sales in the quarter accelerated to 4.2% from 1.9% a year ago, and the company raised comparable sales growth guidance for the full-year to a range of 3.6% to 4.2% from the previous range between $2.5% and 3.5%.
The company also raised full-year 2024 earnings per diluted share guidance to a range of $13.65 to 13.95, up from the previously estimated range between $13.55 and $13.90.
Kohl's Corp. declined 18% to $14.97 after the department store operator said its chief executive Tom Kingsbury would step down.
Ashley Buchanan, chief executive of crafts store chain The Michal's Companies, will replace Kingsbury effective January 15.
Zoom Video Communication decreased 5% to $84.57 after the video communication company reported fiscal fourth quarter earnings that met investor expectations.
Wall Street Tunes Out Trump's Tariff Tantrum, New Home Sales Dropped
Barry Adams
26 Nov, 2024
New York City
Stock market indexes wavered on Wall Street as investors ignored the latest threat of higher tariffs.
The S&P 500 index increased 0.2% and the Nasdaq Composite advanced 0.4% after leading specialty retailers reported mixed quarterly results.
Abercrombie & Fitch estimated strong sales growth in the coming holiday season, and Dick's Sporting Goods lifted its annual earnings outlook after comparable same-store sales accelerated in the third quarter.
On Wall Street, the Dow, the S&P 500 index, and the Russell 2000 notched fresh new highs as positive investor sentiment supported the latest rebound in the market.
New home sales in October dropped 17.3% from the previous month following the surge in mortgage rates, according to the latest report from the U.S. Census Bureau.
New home sales dropped to an annual rate of 610,000 from the unrevised 738,000 and fell at the fastest pace since 2013 and fell to the lowest level since 2022, after two hurricanes, Helene and Milton, struck in the month.
New home sales dropped 9.3% from a year ago, driven by a 19.7% plunge in sales in the South.
Home prices in the month increased, despite the decline in sales.
The median home price increased to $437,300, and the average home price rose to $545,800, an increase of $11,000 from the previous month, respectively.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,996.34, the Nasdaq Composite rose 0.4% to 19,122.41, and the Russell 2000 index inched lower 0.8% to 2,432.72.
The yield on 2-year Treasury notes edged lower to 4.26%, 10-year Treasury notes inched lower to 4.29%, and 30-year Treasury bonds decreased to 4.49%.
WTI crude oil increased $0.69 to $69.56 a barrel, and natural gas prices edged up 1 cent to $3.44 a thermal unit.
Gold decreased by $19.02 to $2,629.47 an ounce, and silver advanced by $0.39 to $30.50.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.77.
U.S. Stock Movers
Abercrombie & Fitch declined 5.2% to $146.41 after the specialty apparel retailer reported third quarter results.
Revenue in the fiscal third quarter ending on October 28 increased 14% to $1.20 billion from $1.05 billion, net income advanced to $131.97 million from $96.5 million, and diluted earnings per share edged higher to $2.50 from $1.83 a year ago.
Comparable same-store sales in the quarter soared 16%, and the retailer revised fourth quarter sales growth to between 5% and 7%.
The apparel retailer also lifted its full-year sales outlook to between 14% and 15%, from the previous estimated range between 12% and 13%.
The current annual sales outlook includes an adverse impact from the loss of 120 basis points from the loss of an extra week in 2023.
Best Buy Company declined 5.4% to $88.0 after the consumer electronics retailer reported weaker-than-estimated revenue and earnings in the third quarter.
Revenue in the fiscal third quarter ending on November 2 declined to $9.44 billion from $9.75 billion, net income increased to $273 million from $263 million, and diluted earnings per share rose to $1.26 from $1.21 a year earlier.
Comparable domestic same-store store sales declined to 2.8% from 7.3%, and the retailer adjusted its full-year comparable sales estimate to decline in the range of 2.5% and 3.% from the previous estimated range of decline between 3.0% and 1.5%.
The company also lowered its full-year sales range to between $41.1 billion and $41.5 billion, from the previous guidance between $41.3 billion and $41.9 billion.
Dick's Sporting Goods jumped 8.4% to $233.24 after the outdoor goods retailer posed strong third quarter earnings and lifted its annual outlook, driven by demand improvement during the back-to-school shopping season.
Revenue in the fiscal third quarter ending on November 2 increased 0.5% to $3.06 billion from $3.04 billion, net income advanced 13% to $228 million from $201 million, and diluted earnings per share rose 15% to $2.75 from $2.39 a year earlier.
Comparable same-store sales in the quarter accelerated to 4.2% from 1.9% a year ago, and the company raised comparable sales growth guidance for the full-year to a range of 3.6% to 4.2% from the previous range between $2.5% and 3.5%.
The company also raised full-year 2024 earnings per diluted share guidance to a range of $13.65 to 13.95, up from the previously estimated range between $13.55 and $13.90.
Kohl's Corp. declined 18% to $14.97 after the department store operator said its chief executive Tom Kingsbury would step down.
Ashley Buchanan, chief executive of crafts store chain The Michal's Companies, will replace Kingsbury effective January 15.
Zoom Video Communication decreased 5% to $84.57 after the video communication company reported fiscal fourth quarter earnings that met investor expectations.
Europe Movers: Automobile Stocks, Halfords, Telecom Plus, UniCredit
Inga Muller
26 Nov, 2024
Frankfurt
U.S. trade protectionism and political instability in France and Germany added to the ongoing geopolitical tensions rooted in the Russia-Ukraine conflict.
The DAX index decreased by 0.7% to 19,279.69; the CAC-40 index fell by 0.7% to 7,203.45; and the FTSE 100 index eased by 0.2% to 8,263.45.
The yield on 10-year German bonds edged lower to 2.20%, French bonds inched down to 3.02%, the UK gilts edged lower to 4.36%, and Italian bonds increased to 3.46%.
Automobile stocks dived for the third week in a row amid growing prospects of higher U.S. tariffs on luxury vehicles shipped from the European Union.
Mercedes-Benz Group declined 1.4% to €52.11, BMW AG fell 1.5% to €68.24, Volkswagen AG dropped 2.6% to €80.24, and Renault SA decreased 1% to €39.52.
UniCredit SpA increased 0.4% to €36.30 after the Italian bank made an unsolicited €10.1 billion bid to acquire the rival Banco BPM.
Telecom Plus PLC dropped 3.4% to €20.60 despite the energy utility and telecom company reporting an increase in half-year pre-tax profit and reiterating its full-year outlook.
Halfords Group soared 11.9% to 144.66 pence after the UK-based automobile and motorcycle retailer reported higher-than-expected profit in the first half.
Profit in the interim period ending on September 27 increased to £21.3 million, and analysts estimated the company to achieve a £29 million profit for the full year.
The vehicle dealer said it plans to increase its retail location footprint to 40 stores from the current 22 stores but did not specify the time period.
Europe Movers: Automobile Stocks, Halfords, Telecom Plus, UniCredit
Inga Muller
26 Nov, 2024
Frankfurt
U.S. trade protectionism and political instability in France and Germany added to the ongoing geopolitical tensions rooted in the Russia-Ukraine conflict.
The DAX index decreased by 0.7% to 19,279.69; the CAC-40 index fell by 0.7% to 7,203.45; and the FTSE 100 index eased by 0.2% to 8,263.45.
The yield on 10-year German bonds edged lower to 2.20%, French bonds inched down to 3.02%, the UK gilts edged lower to 4.36%, and Italian bonds increased to 3.46%.
Automobile stocks dived for the third week in a row amid growing prospects of higher U.S. tariffs on luxury vehicles shipped from the European Union.
Mercedes-Benz Group declined 1.4% to €52.11, BMW AG fell 1.5% to €68.24, Volkswagen AG dropped 2.6% to €80.24, and Renault SA decreased 1% to €39.52.
UniCredit SpA increased 0.4% to €36.30 after the Italian bank made an unsolicited €10.1 billion bid to acquire the rival Banco BPM.
Telecom Plus PLC dropped 3.4% to €20.60 despite the energy utility and telecom company reporting an increase in half-year pre-tax profit and reiterating its full-year outlook.
Halfords Group soared 11.9% to 144.66 pence after the UK-based automobile and motorcycle retailer reported higher-than-expected profit in the first half.
Profit in the interim period ending on September 27 increased to £21.3 million, and analysts estimated the company to achieve a £29 million profit for the full year.
The vehicle dealer said it plans to increase its retail location footprint to 40 stores from the current 22 stores but did not specify the time period.
European Markets Face Stronger Headwinds Amid Trade and Geopolitical Tensions
Bridgette Randall
26 Nov, 2024
London
European stock markets headed lower amid rising investor anxiety surrounding economic outlook, geopolitical tensions, and political instability in the region.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged down as investors focused on a growing list of negative factors building in the background.
Political parties ramped up their campaigns in Germany as far-right parties aggressively seek a change of leadership.
France's Le Pen Party leader promised to bring down the minority government if changes are not made in the budget bill discussed in the parliament.
The party is opposing pension reform as lawmakers struggle to lower the government deficit and meet the European Union guidelines by 2027.
Moreover, rising trade tensions with the U.S. contributed to the market gloom after president-elect Donald Trump reiterated his commitment to impose 25% tariffs on all goods shipped from Mexico and Canada and an additional tariff of 10% on shipments from China.
On the campaign trail, Trump also had threatened to levy punitive tariffs on European goods, targeting vehicles manufactured in the region and agricultural products.
In addition, investor sentiment was dented after a survey of private businesses last week showed a weak business environment and a decline in export orders.
Europe Indexes and Yields
The DAX index decreased by 0.7% to 19,279.69; the CAC-40 index fell by 0.7% to 7,203.45; and the FTSE 100 index eased by 0.2% to 8,263.45.
The yield on 10-year German bonds edged lower to 2.20%, French bonds inched down to 3.02%, the UK gilts edged lower to 4.36%, and Italian bonds increased to 3.46%.
The euro edged higher to $1.05; the British pound inched up to $1.25; and the U.S. dollar strengthened to 88.53 Swiss cents.
Brent crude increased $0.69 to $73.61 a barrel, and the Dutch TTF natural gas rose by €0.27 to €48.17 per MWh.
Europe Stock Movers
Automobile stocks dived for the third week in a row amid growing prospects of higher U.S. tariffs on luxury vehicles shipped from the European Union.
Mercedes-Benz Group declined 1.4% to €52.11, BMW AG fell 1.5% to €68.24, Volkswagen AG dropped 2.6% to €80.24, and Renault SA decreased 1% to €39.52.
UniCredit SpA increased 0.4% to €36.30 after the Italian bank made an unsolicited €10.1 billion bid to acquire the rival Banco BPM.
Telecom Plus PLC dropped 3.4% to €20.60 despite the energy utility and telecom company reporting an increase in half-year pre-tax profit and reiterating its full-year outlook.
Halfords Group soared 11.9% to 144.66 pence after the UK-based automobile and motorcycle retailer reported higher-than-expected profit in the first half.
Profit in the interim period ending on September 27 increased to £21.3 million, and analysts estimated the company to achieve a £29 million profit for the full year.
The vehicle dealer said it plans to increase its retail location footprint to 40 stores from the current 22 stores but did not specify the time period.
European Markets Face Stronger Headwinds Amid Trade and Geopolitical Tensions
Bridgette Randall
26 Nov, 2024
London
European stock markets headed lower amid rising investor anxiety surrounding economic outlook, geopolitical tensions, and political instability in the region.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged down as investors focused on a growing list of negative factors building in the background.
Political parties ramped up their campaigns in Germany as far-right parties aggressively seek a change of leadership.
France's Le Pen Party leader promised to bring down the minority government if changes are not made in the budget bill discussed in the parliament.
The party is opposing pension reform as lawmakers struggle to lower the government deficit and meet the European Union guidelines by 2027.
Moreover, rising trade tensions with the U.S. contributed to the market gloom after president-elect Donald Trump reiterated his commitment to impose 25% tariffs on all goods shipped from Mexico and Canada and an additional tariff of 10% on shipments from China.
On the campaign trail, Trump also had threatened to levy punitive tariffs on European goods, targeting vehicles manufactured in the region and agricultural products.
In addition, investor sentiment was dented after a survey of private businesses last week showed a weak business environment and a decline in export orders.
Europe Indexes and Yields
The DAX index decreased by 0.7% to 19,279.69; the CAC-40 index fell by 0.7% to 7,203.45; and the FTSE 100 index eased by 0.2% to 8,263.45.
The yield on 10-year German bonds edged lower to 2.20%, French bonds inched down to 3.02%, the UK gilts edged lower to 4.36%, and Italian bonds increased to 3.46%.
The euro edged higher to $1.05; the British pound inched up to $1.25; and the U.S. dollar strengthened to 88.53 Swiss cents.
Brent crude increased $0.69 to $73.61 a barrel, and the Dutch TTF natural gas rose by €0.27 to €48.17 per MWh.
Europe Stock Movers
Automobile stocks dived for the third week in a row amid growing prospects of higher U.S. tariffs on luxury vehicles shipped from the European Union.
Mercedes-Benz Group declined 1.4% to €52.11, BMW AG fell 1.5% to €68.24, Volkswagen AG dropped 2.6% to €80.24, and Renault SA decreased 1% to €39.52.
UniCredit SpA increased 0.4% to €36.30 after the Italian bank made an unsolicited €10.1 billion bid to acquire the rival Banco BPM.
Telecom Plus PLC dropped 3.4% to €20.60 despite the energy utility and telecom company reporting an increase in half-year pre-tax profit and reiterating its full-year outlook.
Halfords Group soared 11.9% to 144.66 pence after the UK-based automobile and motorcycle retailer reported higher-than-expected profit in the first half.
Profit in the interim period ending on September 27 increased to £21.3 million, and analysts estimated the company to achieve a £29 million profit for the full year.
The vehicle dealer said it plans to increase its retail location footprint to 40 stores from the current 22 stores but did not specify the time period.
Nikkei 225 and Topix In Tokyo Halt 2-Day Rally Amid Worries of Rising Trade Tensions
Akira Ito
26 Nov, 2024
Tokyo
Sentiment in Tokyo soured, and benchmark indexes traded down, reversing gains of the previous two sessions.
The Nikkei 225 stock average fell 1.4%, and the broader Topix index fell 1.5% as investors worried about the U.S. trade policy uncertainty and rising geopolitical tensions.
Japan exports about 18% of its goods to China, and the worsening economic outlook in the second-largest economy has kept investor sentiment negative.
Moreover, the next U.S. administration is likely to increase tariffs on all imported goods, including products made in Japan and made by Japan in Asia and Mexico and Canada.
Rising trade barriers, export controls, and escalation of tariffs are likely to provide additional headwinds to export-driven companies in Japan and dampen overall economic growth.
Japan, with heavy reliance on exports to China, remains vulnerable to economic volatility and slowdown in the second-largest economy.
On the economic front, investors are looking forward to the release of Tokyo area inflation data on Friday, and the region's trend is generally indicative of the broader patterns in Japan.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 1.4% to 38,247.44, and the broader Topix index fell 1.5%.
Volatile tech stocks led the decliners, and semiconductor equipment stocks topped the chart.
Tokyo Electron decreased 2.7% to ¥22,510.0, Advantest Corp. fell 4.4% to ¥8,827.0, Lasertec declined 5.7% to ¥16,670.0, and Disco Corp. eased 3.3% to ¥41,340.0.
Keisei Electric Railway Co. Ltd. increased 1.5% and extended two-day gains to over 15% after an activist investor took a stake in the company, which could force the company to boost shareholder return.
East Japan Railway decreased 0.6% to ¥2,824.50, West Japan Railway added 0.1%, and Oriental Land eased 1.1% to ¥3,440.0.
Haseko Corp rose 2.2% to ¥1,980.0, Daiwa House decreased 0.1% to ¥4,651.0, and Sekisui House edged down 0.1% to ¥3,586.0.
Toyota Motor declined 1% to ¥2,667.50, Honda Motor fell 1.9% to ¥1,333.0, and Nissan Motor dropped 3.6% to ¥392.10.
Nikkei 225 and Topix In Tokyo Halt 2-Day Rally Amid Worries of Rising Trade Tensions
Akira Ito
26 Nov, 2024
Tokyo
Sentiment in Tokyo soured, and benchmark indexes traded down, reversing gains of the previous two sessions.
The Nikkei 225 stock average fell 1.4%, and the broader Topix index fell 1.5% as investors worried about the U.S. trade policy uncertainty and rising geopolitical tensions.
Japan exports about 18% of its goods to China, and the worsening economic outlook in the second-largest economy has kept investor sentiment negative.
Moreover, the next U.S. administration is likely to increase tariffs on all imported goods, including products made in Japan and made by Japan in Asia and Mexico and Canada.
Rising trade barriers, export controls, and escalation of tariffs are likely to provide additional headwinds to export-driven companies in Japan and dampen overall economic growth.
Japan, with heavy reliance on exports to China, remains vulnerable to economic volatility and slowdown in the second-largest economy.
On the economic front, investors are looking forward to the release of Tokyo area inflation data on Friday, and the region's trend is generally indicative of the broader patterns in Japan.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 1.4% to 38,247.44, and the broader Topix index fell 1.5%.
Volatile tech stocks led the decliners, and semiconductor equipment stocks topped the chart.
Tokyo Electron decreased 2.7% to ¥22,510.0, Advantest Corp. fell 4.4% to ¥8,827.0, Lasertec declined 5.7% to ¥16,670.0, and Disco Corp. eased 3.3% to ¥41,340.0.
Keisei Electric Railway Co. Ltd. increased 1.5% and extended two-day gains to over 15% after an activist investor took a stake in the company, which could force the company to boost shareholder return.
East Japan Railway decreased 0.6% to ¥2,824.50, West Japan Railway added 0.1%, and Oriental Land eased 1.1% to ¥3,440.0.
Haseko Corp rose 2.2% to ¥1,980.0, Daiwa House decreased 0.1% to ¥4,651.0, and Sekisui House edged down 0.1% to ¥3,586.0.
Toyota Motor declined 1% to ¥2,667.50, Honda Motor fell 1.9% to ¥1,333.0, and Nissan Motor dropped 3.6% to ¥392.10.
China Investors Discount Trump threats of Punitive Tariffs, Stock Indexes Move Higher
Li Chen
26 Nov, 2024
Hong Kong
Stock market indexes in China and Hong Kong advanced as investors looked beyond brewing tariff wars with the U.S. and the European Union.
The Hang Seng index increased 0.4%, and the CSI 300 index edged higher by 0.35% as investors debated the scope and depth of potential U.S. tariffs on goods shipped from China.
Investors are taking a wait-and-see approach with the potential increase in U.S. tariffs and diversifying their manufacturing base to minimize the impact.
Chinese automakers are ramping up production in Thailand, Vietnam, Mexico, and Hungary, as manufacturing companies are shifting more assembly operations to overseas locations.
The supply chain elongation trend has been in place since 2018, when the U.S. imposed punitive tariffs for the first time, only to see exports from China surge over the next six years.
China's exports to the U.S. are set to surpass $560 billion in 2024 from $479 billion in 2018, despite rising trade barriers, punitive tariffs, and export controls, according to data available from the U.S. and Chinese government agencies.
The U.S. tariffs so far have increased operating costs for businesses and living expenses for households and contributed to keeping U.S. inflation at elevated levels.
China Stock Movers
The Hang Seng index increased 0.4% to 19,244.63, and the mainland China-focused CSI 300 index gained 0.4% to 3,861.81.
Baidu jumped 5.2% to HK $81.90, and the search company is set to launch trial operations for its autonomous ride-hailing operation in Hong Kong as early as this month.
Meituan advanced 2.7% to HK $166.40 ahead of the company's quarterly results on Friday.
Investors are hoping that the online delivery platform operator is likely to report a three-fold surge in its profit.
CNSIG Anhui Hongsifang Fertilizer soared more than 15-fold to 129.34 yuan on the first day of trading in Shanghai.
The fertilizer company placed 50 million shares in its initial public offering priced at 7.98 yuan per share.