Market Update
Wall Street Indexes Staged Mild Rebound After Focus Shifted to Earnings
Barry Adams
04 Feb, 2025
New York City
Stock market indexes in New York lacked direction, but market volatility subsided, and investors shifted their attention to the latest batch of corporate earnings.
The S&P 500 index advanced 0.2%, and the Nasdaq Composite gained 0.3%, as focus turned away from the threat of tariffs that appear to be designed for political consumption rather than economic reasons.
Investors are increasingly worried that the Trump administration may not be capable of providing the steady and stable policy backdrop needed to support economic growth and bring down elevated inflation.
The U.S. suspended the threat of 25% tariffs on goods shipped from Mexico and Canada for the next thirty days, with little to show for it in return.
However, Chinese goods will face an additional 10% tariff, which is most likely to be passed on to consumers and fuel inflation in the weeks ahead.
China retaliated with its own set of tariffs on U.S. goods effective February 10.
China slapped tariffs of up to 15% on coal and liquefied natural gas, and additional tariffs on crude oil, farm equipment, and selected automobiles and vehicles.
China also opened an investigation into the business practices of Google, and sources in Beijing confirm that the government is likely to expand investigations to other American companies doing business in Greater China.
On the earnings front, investors reviewed the latest earnings from Estee Lauder, Palantir, UBS, Dassault Systèmes, PayPal, Pfizer, and PepsiCo.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 6,005.19, the Nasdaq Composite edged up 0.5% to 19,485.18, and the Russell 2000 index was down 1.28% to 2,258.42.
The yield on 2-year Treasury notes edged higher to 4.27%, 10-year Treasury notes increased to 4.58%, and 30-year Treasury bonds advanced to 4.82%.
WTI crude oil decreased $2.31 to $70.86 a barrel, and natural gas prices edged lower by $0.18 to $3.17 a thermal unit.
Gold rose by $19.17 to $2,832.85 an ounce, and silver edged up by $0.41 to $31.89.
The dollar index, which weighs the US currency against a basket of foreign currencies, declined 0.13 to 108.29 and traded at a two-year high.
Wall Street Indexes Staged Mild Rebound After Focus Shif
Barry Adams
04 Feb, 2025
New York City
Stock market indexes in New York lacked direction, but market volatility subsided, and investors shifted their attention to the latest batch of corporate earnings.
The S&P 500 index advanced 0.2%, and the Nasdaq Composite gained 0.3%, as focus turned away from the threat of tariffs that appear to be designed for political consumption rather than economic reasons.
Investors are increasingly worried that the Trump administration may not be capable of providing the steady and stable policy backdrop needed to support economic growth and bring down elevated inflation.
The U.S. suspended the threat of 25% tariffs on goods shipped from Mexico and Canada for the next thirty days, with little to show for it in return.
However, Chinese goods will face an additional 10% tariff, which is most likely to be passed on to consumers and fuel inflation in the weeks ahead.
China retaliated with its own set of tariffs on U.S. goods effective February 10.
China slapped tariffs of up to 15% on coal and liquefied natural gas, and additional tariffs on crude oil, farm equipment, and selected automobiles and vehicles.
China also opened an investigation into the business practices of Google, and sources in Beijing confirm that the government is likely to expand investigations to other American companies doing business in Greater China.
On the earnings front, investors reviewed the latest earnings from Estee Lauder, Palantir, UBS, Dassault Systèmes, PayPal, Pfizer, and PepsiCo.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 6,005.19, the Nasdaq Composite edged up 0.5% to 19,485.18, and the Russell 2000 index was down 1.28% to 2,258.42.
The yield on 2-year Treasury notes edged higher to 4.27%, 10-year Treasury notes increased to 4.58%, and 30-year Treasury bonds advanced to 4.82%.
WTI crude oil decreased $2.31 to $70.86 a barrel, and natural gas prices edged lower by $0.18 to $3.17 a thermal unit.
Gold rose by $19.17 to $2,832.85 an ounce, and silver edged up by $0.41 to $31.89.
The dollar index, which weighs the US currency against a basket of foreign currencies, declined 0.13 to 108.29 and traded at a two-year high.
Europe Movers: Crest Nicholson, BNP Paribas, Dassault, DSV, NXP Semiconductors, UBS
Inga Muller
04 Feb, 2025
Frankfurt
European stock market indexes lacked direction, and the euro and the pound remained under pressure amid growing possibilities of a trade confrontation with the U.S.
Spain's jobless rate dropped to the lowest level in 17 years for January.
The DAX index decreased by 0.06% to 21,415.21; the CAC-40 index increased 0.15% to 7,866.62; and the FTSE 100 index declined by 0.15% to 8,571.10.
The yield on 10-year German bonds inched higher to 2.42%, French bonds increased to 3.13%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.53%.
UBS Group AG declined 6% to CHF 29.87 despite the Swiss financial service company posting better-than-expected results in the December quarter.
Revenue climbed to $31.63 billion from $10.85 billion, net income swung to a profit of $770 million from a loss of $279 million, and earnings per diluted share came in at 23 cents compared to a loss of 9 cents a year ago.
In October 2024, UBS agreed to sell its 50% interest in Swisscard to its partner American Express.
The company’s board proposed a dividend of 90 cents per share, which is payable on April 17 to shareholders of record on April 16.
For fiscal year 2025, UBS plans to increase its dividend by 10%.
In addition, the company plans to repurchase $1 billion of shares in the first half of 2025 and $2 billion of shares in the second half of the year.
BNP Paribas increased 1.7% to €65.40 after the French banking group announced a new stock buyback program and higher-than-expected dividend.
Publicis Group dropped 1.6% to €100.80 despite the French advertising and public relations company posting strong earnings for fiscal year 2024.
Revenue increased 8.3% to €16.03 billion from €14.80 billion, net income jumped 26.5% to €1.66 billion from €1.31 billion, and earnings per diluted share rose 26.6% to €6.62 from €5.23 a year ago.
Personnel costs increased 8.3% compared to the year 2023.
For the full year 2025, the company aims for organic growth of 4% to 5%, driven by a number of acquisitions last year.
Siltronic AG plunged 10.5% to €38.84 after the Munich, Germany-based wafer manufacturer reported preliminary 2024 sales decreased 7% from a year ago to €1.41 billion.
Due to the delayed demand recovery, the company’s targets are expected to be realized after the year 2028, currently impacted by continued high inventories at chip manufacturers and their customers.
The company proposed a reduced dividend of 20 cents per share for fiscal year 2024 to be approved by shareholders on May 12.
Based on 30 million issued shares, this proposal will result in a total payout of €6 million.
DSV fell 3% to 1,354 krona after the Danish transport and logistics company reported lower profit for fiscal year 2024.
Revenue increased to 167.1 billion krona from 150.8 billion krona, profit slumped to 10.2 billion krona from 12.4 billion krona, and earnings per diluted share fell to 47 krona from 57 krona a year ago.
In the fourth quarter, revenue climbed to 43.5 billion krona from 36.5 billion krona a year earlier.
NXP Semiconductors NV surged 1.5% to €203 despite the Dutch company reporting lower earnings for its fourth quarter ending in December.
Revenue declined 9% to $3.11 billion from $3.42 billion, net income dropped to $495 million from $697 million, and earnings per diluted share fell to $1.93 from $2.68 a year ago.
During the quarter, the company paid $258 million in cash dividends.
In addition, NXP completed the repurchase of $455 million of its common shares.
In October, Audi adopted NXP’s Trimension NCJ29Dx Ultra Wide Band devices that deliver real-time localization with hands-free car access.
In December, NXP agreed to acquire Aviva Links for $242.5 million, and in January 2025, the company acquired TT Tech Auto for $625 million.
Crest Nicholson Holdings Plc dropped 0.6% to 174.12 pence after the U.K. home builder posted lower revenue for fiscal year 2024, impacted by exceptional cost of sales.
Revenue declined to £618.2 million from £657.5 million, operating loss came in at £128.7 million from a profit of £29.9 million, and loss per diluted share was 40.4 pence compared to positive earnings of 7.0 pence a year ago.
For fiscal 2025, the company expects profit before tax to be in the range of £28 million to £38 million.
Dassault Systèmes SE gained 4.3% to 38.96 after the French software company reported a 9% software revenue growth for the fourth quarter ending in December.
Total revenue jumped 7% to €1.75 billion from €1.64 billion, net income increased to €410.9 million from €330.3 million, and earnings per diluted share rose to 30 cents from 25 cents a year ago.
For fiscal year 2025, the company estimated revenue growth between 6% and 8% and diluted earnings per share of €1.36 to €1.39.
Europe Movers: Crest Nicholoson, BNP Paribas, Dassault, DSV, NXP Semiconductors, UBS
Inga Muller
04 Feb, 2025
Frankfurt
European stock market indexes lacked direction, and the euro and the pound remained under pressure amid growing possibilities of a trade confrontation with the U.S.
Spain's jobless rate dropped to the lowest level in 17 years for January.
The DAX index decreased by 0.06% to 21,415.21; the CAC-40 index increased 0.15% to 7,866.62; and the FTSE 100 index declined by 0.15% to 8,571.10.
The yield on 10-year German bonds inched higher to 2.42%, French bonds increased to 3.13%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.53%.
UBS Group AG declined 6% to CHF 29.87 despite the Swiss financial service company posting better-than-expected results in the December quarter.
Revenue climbed to $31.63 billion from $10.85 billion, net income swung to a profit of $770 million from a loss of $279 million, and earnings per diluted share came in at 23 cents compared to a loss of 9 cents a year ago.
In October 2024, UBS agreed to sell its 50% interest in Swisscard to its partner American Express.
The company’s board proposed a dividend of 90 cents per share, which is payable on April 17 to shareholders of record on April 16.
For fiscal year 2025, UBS plans to increase its dividend by 10%.
In addition, the company plans to repurchase $1 billion of shares in the first half of 2025 and $2 billion of shares in the second half of the year.
BNP Paribas increased 1.7% to €65.40 after the French banking group announced a new stock buyback program and higher-than-expected dividend.
Publicis Group dropped 1.6% to €100.80 despite the French advertising and public relations company posting strong earnings for fiscal year 2024.
Revenue increased 8.3% to €16.03 billion from €14.80 billion, net income jumped 26.5% to €1.66 billion from €1.31 billion, and earnings per diluted share rose 26.6% to €6.62 from €5.23 a year ago.
Personnel costs increased 8.3% compared to the year 2023.
For the full year 2025, the company aims for organic growth of 4% to 5%, driven by a number of acquisitions last year.
Siltronic AG plunged 10.5% to €38.84 after the Munich, Germany-based wafer manufacturer reported preliminary 2024 sales decreased 7% from a year ago to €1.41 billion.
Due to the delayed demand recovery, the company’s targets are expected to be realized after the year 2028, currently impacted by continued high inventories at chip manufacturers and their customers.
The company proposed a reduced dividend of 20 cents per share for fiscal year 2024 to be approved by shareholders on May 12.
Based on 30 million issued shares, this proposal will result in a total payout of €6 million.
DSV fell 3% to 1,354 krona after the Danish transport and logistics company reported lower profit for fiscal year 2024.
Revenue increased to 167.1 billion krona from 150.8 billion krona, profit slumped to 10.2 billion krona from 12.4 billion krona, and earnings per diluted share fell to 47 krona from 57 krona a year ago.
In the fourth quarter, revenue climbed to 43.5 billion krona from 36.5 billion krona a year earlier.
NXP Semiconductors NV surged 1.5% to €203 despite the Dutch company reporting lower earnings for its fourth quarter ending in December.
Revenue declined 9% to $3.11 billion from $3.42 billion, net income dropped to $495 million from $697 million, and earnings per diluted share fell to $1.93 from $2.68 a year ago.
During the quarter, the company paid $258 million in cash dividends.
In addition, NXP completed the repurchase of $455 million of its common shares.
In October, Audi adopted NXP’s Trimension NCJ29Dx Ultra Wide Band devices that deliver real-time localization with hands-free car access.
In December, NXP agreed to acquire Aviva Links for $242.5 million, and in January 2025, the company acquired TT Tech Auto for $625 million.
Crest Nicholson Holdings Plc dropped 0.6% to 174.12 pence after the U.K. home builder posted lower revenue for fiscal year 2024, impacted by exceptional cost of sales.
Revenue declined to £618.2 million from £657.5 million, operating loss came in at £128.7 million from a profit of £29.9 million, and loss per diluted share was 40.4 pence compared to positive earnings of 7.0 pence a year ago.
For fiscal 2025, the company expects profit before tax to be in the range of £28 million to £38 million.
Dassault Systèmes SE gained 4.3% to 38.96 after the French software company reported a 9% software revenue growth for the fourth quarter ending in December.
Total revenue jumped 7% to €1.75 billion from €1.64 billion, net income increased to €410.9 million from €330.3 million, and earnings per diluted share rose to 30 cents from 25 cents a year ago.
For fiscal year 2025, the company estimated revenue growth between 6% and 8% and diluted earnings per share of €1.36 to €1.39.
European Markets Struggled to Advance In Cautious Trading, Spain's January Jobless Rate Dropped to 17-Year Low
Bridgette Randall
04 Feb, 2025
London
European market indexes whipsawed as investors reviewed the latest U.S. actions on the international trade policy.
Benchmark indexes in Paris, Frankfurt, Milan, and London lacked direction after the U.S. suspended the threat of 25% tariffs on Mexico and Canada but imposed an additional 10% tariff on Chinese imports.
Market sentiment has been dampened amid the growing realization that the current U.S. presidential administration is likely to pursue a confrontational trade policy.
The U.S. is targeting the European Union to purchase more goods and reduce its overall trade surplus.
Over the last ten years, the European Union has averaged a goods surplus of 100 billion a year with the U.S.
The latest trade confrontation with the U.S. comes at a critical time for the European Union, and the region's economy has been stagnant for many years, and businesses have been struggling to adjust to high costs of energy.
Spain's Jobless Rate Drops to 17-Year Low
The number of people registered as jobless increased by 38.275 to 2.6 million, the lowest level in 17 years, according to the data released by the Ministry of Labor and Social Welfare Tuesday.
Unemployment among young people under 25 years of age rose by 1.4% to 188,364 people, the lowest on record for January.
Europe Indexes and Yields
The DAX index decreased by 0.06% to 21,415.21; the CAC-40 index increased 0.15% to 7,866.62; and the FTSE 100 index declined by 0.15% to 8,571.10.
The yield on 10-year German bonds inched higher to 2.42%, French bonds increased to 3.13%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.53%.
The euro declined to $1.03; the British pound was lower at $1.24; and the U.S. dollar was lower and traded at 90.87 Swiss cents.
Brent crude decreased $0.90 to $75.06 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
UBS Group AG declined 6% to CHF 29.87 despite the Swiss financial service company posting better-than-expected results in the December quarter.
BNP Paribas increased 1.7% to €65.40 after the French banking group announced a new stock buyback program and higher-than-expected dividend.
European Markets Struggled to Advance In Cautious Trading, Spain's January Jobless Rate Dropped to 17-Year Low
Bridgette Randall
04 Feb, 2025
London
European market indexes whipsawed as investors reviewed the latest U.S. actions on the international trade policy.
Benchmark indexes in Paris, Frankfurt, Milan, and London lacked direction after the U.S. suspended the threat of 25% tariffs on Mexico and Canada but imposed an additional 10% tariff on Chinese imports.
Market sentiment has been dampened amid the growing realization that the current U.S. presidential administration is likely to pursue a confrontational trade policy.
The U.S. is targeting the European Union to purchase more goods and reduce its overall trade surplus.
Over the last ten years, the European Union has averaged a goods surplus of 100 billion a year with the U.S.
The latest trade confrontation with the U.S. comes at a critical time for the European Union, and the region's economy has been stagnant for many years, and businesses have been struggling to adjust to high costs of energy.
Spain's Jobless Rate Drops to 17-Year Low
The number of people registered as jobless increased by 38.275 to 2.6 million, the lowest level in 17 years, according to the data released by the Ministry of Labor and Social Welfare Tuesday.
Unemployment among young people under 25 years of age rose by 1.4% to 188,364 people, the lowest on record for January.
Europe Indexes and Yields
The DAX index decreased by 0.06% to 21,415.21; the CAC-40 index increased 0.15% to 7,866.62; and the FTSE 100 index declined by 0.15% to 8,571.10.
The yield on 10-year German bonds inched higher to 2.42%, French bonds increased to 3.13%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.53%.
The euro declined to $1.03; the British pound was lower at $1.24; and the U.S. dollar was lower and traded at 90.87 Swiss cents.
Brent crude decreased $0.90 to $75.06 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
UBS Group AG declined 6% to CHF 29.87 despite the Swiss financial service company posting better-than-expected results in the December quarter.
BNP Paribas increased 1.7% to €65.40 after the French banking group announced a new stock buyback program and higher-than-expected dividend.
India Movers: ABCL, Castrol India, Divis Labs, Gland Pharma, HFCL, Sky Gold, Kalyani Steel, Premier Energies
Arun Goswami
04 Feb, 2025
Mumbai
Stock market indexes in Mumbai advanced, and the rupee recovered some of the losses, and investors shifted their attention to the latest batch of corporate results.
The Sensex index increased by 0.9% to 77,886.38, and the Nifty index advanced by 0.9% to 23,559.10. On the Mumbai stock exchange, 26 stocks traded at their 52-week highs, and 45 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record and traded at 87.05 against the U.S. dollar.
Trent plunged 6% to ₹5,767.40 and extended losses in 2025 to 19% after investors worried about the stretched valuations.
Zomato declined 3.3% to ₹230.51, and the online app operator and the delivery service provider extended this year's losses to 16% amid a worry of slowing growth in consumer spending.
ITC Ltd. dropped 1% to ₹449.25, and the company was among the most actively traded stocks after the finance minister did not announce a new tax on cigarette sales.
Recent Earnings Releases
Castrol India Ltd. jumped 8.3% to ₹191.30 after the lubricant maker reported a 7% increase in the fiscal third quarter ending in December.
Consolidated revenue in the December quarter increased to ₹1,377 crore from ₹1,286.3 crore, after-tax profit rose to ₹271.4 crore from ₹242 crore, and diluted earnings per share advanced to ₹2.74 from ₹2.45 a year ago.
Aditya Birla Capital Ltd. decreased 1.4% to ₹169.70 despite the asset management company reporting a 9% rise in revenue and a marginal decline in net income in the December quarter.
Consolidated revenue in the December quarter increased to ₹9,403.5 crore from ₹8,599 crore, net income fell to ₹724.4 crore from ₹753.7 crore, and diluted earnings per share dropped to ₹2.69 from ₹2.79 a year ago.
Gland Pharma Ltd. fell 3.7% to ₹1,464 despite the generic pharmaceutical maker reporting a 7% increase in net income in the December quarter.
Consolidated revenue in the December quarter decreased to ₹1,442.5 crore from ₹1,582.5 crore, after-tax profit rose to ₹204.6 crore from ₹191.8 crore, and diluted earnings per share increased to ₹12.42 from ₹11.65 a year ago.
Divis Laboratories Ltd. increased 5.7% to ₹6,224.70 after the generic pharmaceutical maker reported a 65% jump in its earnings in the December quarter.
Consolidated revenue in the December quarter increased to ₹2,401 crore from ₹1,950 crore, net income jumped to ₹589 crore from ₹358 crore, and diluted earnings per share rose to ₹22.20 from ₹13.50 a year ago.
HFCL Ltd. declined 1% to ₹100.55 after the maker of telecom equipment reported a 68% plunge in quarterly profit from a year ago.
Consolidated revenue in the December quarter increased to ₹1,079 crore from ₹3,308 crore, after-tax profit fell to ₹82.4 crore from ₹256.6 crore, and diluted earnings per share dropped to 58 paisa from ₹1.79 a year ago.
Sky Gold Ltd. gained 5% to ₹364.70 after the precious jewelry maker reported a four-fold increase in earnings in the December quarter.
Consolidated revenue in the December quarter increased to ₹1,005.1 crore from ₹460.9 crore, net income jumped to ₹36.5 crore from ₹8.9 crore, and diluted earnings per share rose to ₹2.50 from 81 paise a year ago.
Kalyani Steels Ltd. advanced 2% to ₹821.50 despite the specialty steel company reporting a 66% drop in revenue in the December quarter.
Consolidated revenue in the December quarter decreased to ₹497.4 crore from ₹1,479.1 crore, after-tax profit fell to ₹56.4 crore from ₹67.3 crore, and diluted earnings per share dropped to ₹12.93 from ₹40.33 a year ago.
Premier Energies Ltd. increased 3% to ₹1,098.70 after the solar panel maker reported a six-fold increase in profit in the December quarter.
Consolidated revenue in the December quarter increased to ₹1,749.3 crore from ₹714.7 crore, net income jumped to ₹255.2 crore from ₹43.2 crore, and diluted earnings per share rose to ₹5.66 from ₹1.03 a year ago.
India Movers: ABCL, Castrol India, Divis Labs, Gland Pharma, HFCL, Sky Gold, Kalyani Steel, Premier Energies
Arun Goswami
04 Feb, 2025
Mumbai
Stock market indexes in Mumbai advanced, and the rupee recovered some of the losses, and investors shifted their attention to the latest batch of corporate results.
The Sensex index increased by 0.9% to 77,886.38, and the Nifty index advanced by 0.9% to 23,559.10. On the Mumbai stock exchange, 26 stocks traded at their 52-week highs, and 45 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record and traded at 87.05 against the U.S. dollar.
Trent plunged 6% to ₹5,767.40 and extended losses in 2025 to 19% after investors worried about the stretched valuations.
Zomato declined 3.3% to ₹230.51, and the online app operator and the delivery service provider extended this year's losses to 16% amid a worry of slowing growth in consumer spending.
ITC Ltd. dropped 1% to ₹449.25, and the company was among the most actively traded stocks after the finance minister did not announce a new tax on cigarette sales.
Recent Earnings Releases
Castrol India Ltd. jumped 8.3% to ₹191.30 after the lubricant maker reported a 7% increase in the fiscal third quarter ending in December.
Consolidated revenue in the December quarter increased to ₹1,377 crore from ₹1,286.3 crore, after-tax profit rose to ₹271.4 crore from ₹242 crore, and diluted earnings per share advanced to ₹2.74 from ₹2.45 a year ago.
Aditya Birla Capital Ltd. decreased 1.4% to ₹169.70 despite the asset management company reporting a 9% rise in revenue and a marginal decline in net income in the December quarter.
Consolidated revenue in the December quarter increased to ₹9,403.5 crore from ₹8,599 crore, net income fell to ₹724.4 crore from ₹753.7 crore, and diluted earnings per share dropped to ₹2.69 from ₹2.79 a year ago.
Gland Pharma Ltd. fell 3.7% to ₹1,464 despite the generic pharmaceutical maker reporting a 7% increase in net income in the December quarter.
Consolidated revenue in the December quarter decreased to ₹1,442.5 crore from ₹1,582.5 crore, after-tax profit rose to ₹204.6 crore from ₹191.8 crore, and diluted earnings per share increased to ₹12.42 from ₹11.65 a year ago.
Divis Laboratories Ltd. increased 5.7% to ₹6,224.70 after the generic pharmaceutical maker reported a 65% jump in its earnings in the December quarter.
Consolidated revenue in the December quarter increased to ₹2,401 crore from ₹1,950 crore, net income jumped to ₹589 crore from ₹358 crore, and diluted earnings per share rose to ₹22.20 from ₹13.50 a year ago.
HFCL Ltd. declined 1% to ₹100.55 after the maker of telecom equipment reported a 68% plunge in quarterly profit from a year ago.
Consolidated revenue in the December quarter increased to ₹1,079 crore from ₹3,308 crore, after-tax profit fell to ₹82.4 crore from ₹256.6 crore, and diluted earnings per share dropped to 58 paisa from ₹1.79 a year ago.
Sky Gold Ltd. gained 5% to ₹364.70 after the precious jewelry maker reported a four-fold increase in earnings in the December quarter.
Consolidated revenue in the December quarter increased to ₹1,005.1 crore from ₹460.9 crore, net income jumped to ₹36.5 crore from ₹8.9 crore, and diluted earnings per share rose to ₹2.50 from 81 paise a year ago.
Kalyani Steels Ltd. advanced 2% to ₹821.50 despite the specialty steel company reporting a 66% drop in revenue in the December quarter.
Consolidated revenue in the December quarter decreased to ₹497.4 crore from ₹1,479.1 crore, after-tax profit fell to ₹56.4 crore from ₹67.3 crore, and diluted earnings per share dropped to ₹12.93 from ₹40.33 a year ago.
Premier Energies Ltd. increased 3% to ₹1,098.70 after the solar panel maker reported a six-fold increase in profit in the December quarter.
Consolidated revenue in the December quarter increased to ₹1,749.3 crore from ₹714.7 crore, net income jumped to ₹255.2 crore from ₹43.2 crore, and diluted earnings per share rose to ₹5.66 from ₹1.03 a year ago.
U.S. and Global Markets Remain Under Pressure Despite Delay In Mexico Tariffs
Alexander Garcia
03 Feb, 2025
Miami
Stock market indexes rebounded from Monday's worst losses after the U.S. delayed tariffs on Mexico.
Mexico's president, Claudia Sheinbaum, said her nation will rush an additional 10,000 troops to the border and stem the flow of migrants and dangerous drugs.
The S&P 500 index declined 1.7%, and the Nasdaq Composite dropped 2.2% in Monday's trading after the U.S. slapped tariffs on imports from its three largest trading partners.
Over the weekend, the U.S. imposed 25% tariffs on imports from Mexico and Canada and imposed an additional 10% tariff on manufactured goods from China.
The move is likely to cover $1.2 trillion, or about half of all imports, and could raise as much as $240 billion over a year for the federal government.
Tariffs paid by the U.S. importing companies are generally passed on to American consumers in the form of higher prices.
The Republican Party in the past had staunchly advocated free trade and decried trade barriers and tariffs, but as the party supports higher indirect taxes on all citizens to pay for tax cuts for the wealthy donors.
The U.S. imports about $1.2 trillion of goods from its three largest trading partners, and the world's largest economy has run deficits for decades with its six key trade partners—Mexico, Canada, China, the European Union, Japan, and Korea.
The U.S. has run an annual trade deficit since 1964 and rarely bothered to focus on improving its trade competitiveness, as the dollar's reserve currency status provides an advantage that no other country enjoys.
Market confidence in the Trump administration has substantially evaporated, and global financial markets are roiled from New York, Frankfurt, to Tokyo after the newly appointed presidential administration's actions aim to make political points at the expense of relationships with trade partners and allies.
Stock market indexes are likely to lack direction in the week ahead, and the Federal Reserve is likely to take a cautious view and keep rates higher for longer amid heightened political uncertainty and inflationary policies of the new administration.
On Wall Street, investors will shift focus to the fresh batch of earnings this week, including updates from Amazon, Alphabet, Qualcomm, Pfizer, Pepsi, Walt Disney, Uber, and AMD.
On the economic front, nonfarm payrolls growth in January is expected to slow to 175,000 from 256,000 in December. The jobless rate is likely to hold steady at 4.1%, and wage gains are likely to remain near an annual rate of 4.5%.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.9% to 5,991.46, the Nasdaq Composite edged down 1.2% to 19,389.70, and the Russell 2000 index fell 1.1% to 2,263.35.
The yield on 2-year Treasury notes edged higher to 4.25%, 10-year Treasury notes declined to 4.51%, and 30-year Treasury bonds dropped to 4.74%.
WTI crude oil increased $1.83 to $74.36 a barrel, and natural gas prices edged higher by $0.27 to $3.32 a thermal unit.
Gold rose by $19.54 to 2,816.75 an ounce, and silver edged up by $0.26 to $31.53.
The dollar index, which weighs the US currency against a basket of foreign currencies, climbed 0.63 to 108.99 and traded at a two-year high.
U.S. Stock Movers
Automobile and parts makers after the announcements of new tariffs on imports from the three largest trading partners.
U.S. automobile production relies on a highly integrated supply chain network spanning from Mexico to Canada, and several parts cross borders multiple times before they are sold to consumers in North America.
General Motors declined 6.5% to $46.32, Ford Motor dropped 3.7% to $9.71, Stellantis NV decreased 4.9% to $12.53, and Tesla dropped 3.6% to $390.02.
Aptiv declined 3.6% to $59.38, Avery Dennison fell 2.2% to $180.71, and Cummins Inc. decreased 3.2% to $345.15.
Chipotle Mexican Grill declined 2% to $57.31 after avocado shipments from Mexico face 25% tariffs as early as Wednesday.
Constellation Brands declined 4% to $170.09 after the alcoholic beverage importer and distributor faced higher product costs from Mexico.
European Markets Tumble 2% After U.S. Targets EU and Key Trading Partners for Tariffs
Stock market indexes in Europe dropped sharply amid a growing realization that the region's exports are likely to face higher trade barriers to the U.S.
Benchmark indexes in Paris, Milan, Frankfurt, and London plunged between 1.3% and 1.7% after the U.S. slapped tariffs on shipments from its three largest trading partners.
The latest measures include 25% tariffs on all manufactured goods from Mexico and Canada and an additional 10% tariffs on goods imported from China.
The U.S. imports about $1.2 trillion of goods from its three largest trading partners, and the world's largest economy has run deficits for decades with its six key trade partners—Mexico, Canada, China, the European Union, Japan, and Korea.
The European Union exports over €500 billion in goods to the U.S. and imports about €345 billion from the world's largest economy, resulting in a trade surplus of €155 billion.
The European Union's average annual trade surplus has ranged between €100 billion and €160 billion since 2015.
In 2023, the United States was the largest partner for EU exports of goods (19.7%) and the second largest partner for EU imports of goods (13.7%), according to the latest annual statistics available from Eurostat.
Among EU member states, the Netherlands was the largest importer of goods from the United States, and Germany was the largest exporter of goods to the United States in 2023.
Tariffs are federal government taxes on foreign goods paid by U.S. consumers, and the new round of trade barriers will certainly stoke inflation and force the U.S. Federal Reserve to keep rates higher for longer.
The newly appointed Republican Party administration is seeking a halt of all illegal migrants from its two neighboring partners and curtailing of illegal shipments of dangerous drugs.
Europe Indexes and Yields
The DAX index decreased by 1.6% to 21,378.03; the CAC-40 index dropped 1.5% to 7,831.65; and the FTSE 100 index declined by 1.2% to 8,569.99.
The yield on 10-year German bonds inched lower to 2.43%, French bonds declined to 3.15%, the UK gilts moved down to 4.54%, and Italian bonds edged higher to 3.56%.
The euro declined to $1.02; the British pound was lower at $1.23; and the U.S. dollar was higher and traded at 91.92 Swiss cents.
Brent crude increased $0.88 to $76.55 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
Automobile makers and advanced semiconductor equipment makers led the decliners across Europe in Monday's trading.
All leading automobile makers in the European Union declined, led by Mercedes-Benz Group AG, which fell 4.3% to €56.39; BMW plunged 4% to €75.42; Volkswagen AG dropped 5.8% to €95.55; and Stellantis NV fell 6% to €12.19.
Among leading tech equipment companies, Infineon Technologies AG decreased 4.2% to €30.74, and ASML Holding dropped 2.7% to €702.80.
Julius Baer Gruppe AG dropped 11% to CHF 56.70 despite the Swiss wealth management company posting strong fiscal year 2024 results, boosted by a substantial tax release.
The Swiss asset management company's new chief executive announced plans to trim its workforce by 5% as the company looks for ways to lower its operating costs.
India and Global Market Indexes Drop After the U.S. Launched Trade War
Financial markets in India were under pressure after the U.S. imposed additional tariffs on its three largest trading partners, starting a trade war that will accelerate the redesign of the global supply chain.
The latest measures include 25% tariffs on all manufactured goods from Mexico and Canada and an additional 10% tariffs on goods imported from China.
The U.S. imports about $1.2 trillion of goods from its three largest trading partners, and the world's largest economy has run deficits with its key partners for decades.
Tariffs are federal government taxes on foreign goods paid by U.S. consumers, and the new round of trade barriers will certainly stoke inflation and force the U.S. Federal Reserve to keep rates higher for longer.
The newly appointed Republican Party administration is seeking a halt of all illegal migrants from its two neighboring partners and curtailing of illegal shipments of dangerous drugs.
The Sensex and the Nifty indexes dropped about 1%, and benchmark indexes in Seoul, Korea, and Tokyo, Japan, plunged 3%.
Markets in Shanghai and Shenzhen China, are expected to reopen 2% lower after investors return from the Lunar New Year holidays on Wednesday.
Financial markets in Europe are likely to open 1.5% down, as investors fear that the European Union is likely to face between 10% and 25% tariffs as early as April 1.
The U.S. presidential administration is targeting all leading trading partners with trade surpluses, including Japan, South Korea, Taiwan, Brazil, and India.
India has about $42 billion in trade surplus with the U.S.; however, it is not clear how the U.S. plans to impose tariffs on services exports.
The newly-announced tariffs are scheduled to be imposed from Tuesday, and will impact about 50% of total goods imports arriving to the shores of the U.S.
Canada announced its own measures of tariffs and trade restrictions on U.S. exports, covering a wide range of goods in the automobile industry, agricultural products, and wine and alcohol.
Mexico plans to impose its own set of trade tariffs and restrictions, and China said it will take "appropriate measures" and mount a legal challenge questioning the legality of the move.
Stock Indexes and Bond Yields
The Sensex index decreased by 0.9% to 76,825.15, and the Nifty index declined by 1% to 23,249.55.
On the Mumbai stock exchange, 46 stocks traded at their 52-week highs, and 73 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record and traded at 87.17 against the U.S. dollar.
The gold price decreased by 0.05% to ₹82,261 per ten grams and rose by 0.5% to ₹92,775 per kilo.
Crude oil rose by 1.6% to ₹6,451 per barrel, and natural gas advanced by 8.2% to ₹289.3 per thermal unit.
India Stock Movers
Resource industry-linked stocks led the decliners in Monday's trading after the rupee dropped to a new record low.
ONGC dropped 3.7% to ₹248.10, Reliance Industries decreased 1.6% to ₹1,244.75, and Coal India plunged 3.7% to ₹371.0.
Software and business services exporters dropped between 1% and 3% on the worries that India will be included in the new round of tariffs that are likely to be announced over the next two months.
TCS decreased 1% to ₹4,030.45, Infosys declined 0.4% to ₹1,844.55, Wipro gained 1.2% to ₹308.80, and HCL Technologies fell 1.4% to ₹1,682.40.
U.S. and Global Markets Remain Under Pressure Despite Delay In Mexico Tariffs
Alexander Garcia
03 Feb, 2025
Miami
Stock market indexes rebounded from Monday's worst losses after the U.S. delayed tariffs on Mexico.
Mexico's president, Claudia Sheinbaum, said her nation will rush an additional 10,000 troops to the border and stem the flow of migrants and dangerous drugs.
The S&P 500 index declined 1.7%, and the Nasdaq Composite dropped 2.2% in Monday's trading after the U.S. slapped tariffs on imports from its three largest trading partners.
Over the weekend, the U.S. imposed 25% tariffs on imports from Mexico and Canada and imposed an additional 10% tariff on manufactured goods from China.
The move is likely to cover $1.2 trillion, or about half of all imports, and could raise as much as $240 billion over a year for the federal government.
Tariffs paid by the U.S. importing companies are generally passed on to American consumers in the form of higher prices.
The Republican Party in the past had staunchly advocated free trade and decried trade barriers and tariffs, but as the party supports higher indirect taxes on all citizens to pay for tax cuts for the wealthy donors.
The U.S. imports about $1.2 trillion of goods from its three largest trading partners, and the world's largest economy has run deficits for decades with its six key trade partners—Mexico, Canada, China, the European Union, Japan, and Korea.
The U.S. has run an annual trade deficit since 1964 and rarely bothered to focus on improving its trade competitiveness, as the dollar's reserve currency status provides an advantage that no other country enjoys.
Market confidence in the Trump administration has substantially evaporated, and global financial markets are roiled from New York, Frankfurt, to Tokyo after the newly appointed presidential administration's actions aim to make political points at the expense of relationships with trade partners and allies.
Stock market indexes are likely to lack direction in the week ahead, and the Federal Reserve is likely to take a cautious view and keep rates higher for longer amid heightened political uncertainty and inflationary policies of the new administration.
On Wall Street, investors will shift focus to the fresh batch of earnings this week, including updates from Amazon, Alphabet, Qualcomm, Pfizer, Pepsi, Walt Disney, Uber, and AMD.
On the economic front, nonfarm payrolls growth in January is expected to slow to 175,000 from 256,000 in December. The jobless rate is likely to hold steady at 4.1%, and wage gains are likely to remain near an annual rate of 4.5%.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.9% to 5,991.46, the Nasdaq Composite edged down 1.2% to 19,389.70, and the Russell 2000 index fell 1.1% to 2,263.35.
The yield on 2-year Treasury notes edged higher to 4.25%, 10-year Treasury notes declined to 4.51%, and 30-year Treasury bonds dropped to 4.74%.
WTI crude oil increased $1.83 to $74.36 a barrel, and natural gas prices edged higher by $0.27 to $3.32 a thermal unit.
Gold rose by $19.54 to 2,816.75 an ounce, and silver edged up by $0.26 to $31.53.
The dollar index, which weighs the US currency against a basket of foreign currencies, climbed 0.63 to 108.99 and traded at a two-year high.
U.S. Stock Movers
Automobile and parts makers after the announcements of new tariffs on imports from the three largest trading partners.
U.S. automobile production relies on a highly integrated supply chain network spanning from Mexico to Canada, and several parts cross borders multiple times before they are sold to consumers in North America.
General Motors declined 6.5% to $46.32, Ford Motor dropped 3.7% to $9.71, Stellantis NV decreased 4.9% to $12.53, and Tesla dropped 3.6% to $390.02.
Aptiv declined 3.6% to $59.38, Avery Dennison fell 2.2% to $180.71, and Cummins Inc. decreased 3.2% to $345.15.
Chipotle Mexican Grill declined 2% to $57.31 after avocado shipments from Mexico face 25% tariffs as early as Wednesday.
Constellation Brands declined 4% to $170.09 after the alcoholic beverage importer and distributor faced higher product costs from Mexico.
European Markets Tumble 2% After U.S. Targets EU and Key Trading Partners for Tariffs
Stock market indexes in Europe dropped sharply amid a growing realization that the region's exports are likely to face higher trade barriers to the U.S.
Benchmark indexes in Paris, Milan, Frankfurt, and London plunged between 1.3% and 1.7% after the U.S. slapped tariffs on shipments from its three largest trading partners.
The latest measures include 25% tariffs on all manufactured goods from Mexico and Canada and an additional 10% tariffs on goods imported from China.
The U.S. imports about $1.2 trillion of goods from its three largest trading partners, and the world's largest economy has run deficits for decades with its six key trade partners—Mexico, Canada, China, the European Union, Japan, and Korea.
The European Union exports over €500 billion in goods to the U.S. and imports about €345 billion from the world's largest economy, resulting in a trade surplus of €155 billion.
The European Union's average annual trade surplus has ranged between €100 billion and €160 billion since 2015.
In 2023, the United States was the largest partner for EU exports of goods (19.7%) and the second largest partner for EU imports of goods (13.7%), according to the latest annual statistics available from Eurostat.
Among EU member states, the Netherlands was the largest importer of goods from the United States, and Germany was the largest exporter of goods to the United States in 2023.
Tariffs are federal government taxes on foreign goods paid by U.S. consumers, and the new round of trade barriers will certainly stoke inflation and force the U.S. Federal Reserve to keep rates higher for longer.
The newly appointed Republican Party administration is seeking a halt of all illegal migrants from its two neighboring partners and curtailing of illegal shipments of dangerous drugs.
Europe Indexes and Yields
The DAX index decreased by 1.6% to 21,378.03; the CAC-40 index dropped 1.5% to 7,831.65; and the FTSE 100 index declined by 1.2% to 8,569.99.
The yield on 10-year German bonds inched lower to 2.43%, French bonds declined to 3.15%, the UK gilts moved down to 4.54%, and Italian bonds edged higher to 3.56%.
The euro declined to $1.02; the British pound was lower at $1.23; and the U.S. dollar was higher and traded at 91.92 Swiss cents.
Brent crude increased $0.88 to $76.55 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
Automobile makers and advanced semiconductor equipment makers led the decliners across Europe in Monday's trading.
All leading automobile makers in the European Union declined, led by Mercedes-Benz Group AG, which fell 4.3% to €56.39; BMW plunged 4% to €75.42; Volkswagen AG dropped 5.8% to €95.55; and Stellantis NV fell 6% to €12.19.
Among leading tech equipment companies, Infineon Technologies AG decreased 4.2% to €30.74, and ASML Holding dropped 2.7% to €702.80.
Julius Baer Gruppe AG dropped 11% to CHF 56.70 despite the Swiss wealth management company posting strong fiscal year 2024 results, boosted by a substantial tax release.
The Swiss asset management company's new chief executive announced plans to trim its workforce by 5% as the company looks for ways to lower its operating costs.
India and Global Market Indexes Drop After the U.S. Launched Trade War
Financial markets in India were under pressure after the U.S. imposed additional tariffs on its three largest trading partners, starting a trade war that will accelerate the redesign of the global supply chain.
The latest measures include 25% tariffs on all manufactured goods from Mexico and Canada and an additional 10% tariffs on goods imported from China.
The U.S. imports about $1.2 trillion of goods from its three largest trading partners, and the world's largest economy has run deficits with its key partners for decades.
Tariffs are federal government taxes on foreign goods paid by U.S. consumers, and the new round of trade barriers will certainly stoke inflation and force the U.S. Federal Reserve to keep rates higher for longer.
The newly appointed Republican Party administration is seeking a halt of all illegal migrants from its two neighboring partners and curtailing of illegal shipments of dangerous drugs.
The Sensex and the Nifty indexes dropped about 1%, and benchmark indexes in Seoul, Korea, and Tokyo, Japan, plunged 3%.
Markets in Shanghai and Shenzhen China, are expected to reopen 2% lower after investors return from the Lunar New Year holidays on Wednesday.
Financial markets in Europe are likely to open 1.5% down, as investors fear that the European Union is likely to face between 10% and 25% tariffs as early as April 1.
The U.S. presidential administration is targeting all leading trading partners with trade surpluses, including Japan, South Korea, Taiwan, Brazil, and India.
India has about $42 billion in trade surplus with the U.S.; however, it is not clear how the U.S. plans to impose tariffs on services exports.
The newly-announced tariffs are scheduled to be imposed from Tuesday, and will impact about 50% of total goods imports arriving to the shores of the U.S.
Canada announced its own measures of tariffs and trade restrictions on U.S. exports, covering a wide range of goods in the automobile industry, agricultural products, and wine and alcohol.
Mexico plans to impose its own set of trade tariffs and restrictions, and China said it will take "appropriate measures" and mount a legal challenge questioning the legality of the move.
Stock Indexes and Bond Yields
The Sensex index decreased by 0.9% to 76,825.15, and the Nifty index declined by 1% to 23,249.55.
On the Mumbai stock exchange, 46 stocks traded at their 52-week highs, and 73 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record and traded at 87.17 against the U.S. dollar.
The gold price decreased by 0.05% to ₹82,261 per ten grams and rose by 0.5% to ₹92,775 per kilo.
Crude oil rose by 1.6% to ₹6,451 per barrel, and natural gas advanced by 8.2% to ₹289.3 per thermal unit.
India Stock Movers
Resource industry-linked stocks led the decliners in Monday's trading after the rupee dropped to a new record low.
ONGC dropped 3.7% to ₹248.10, Reliance Industries decreased 1.6% to ₹1,244.75, and Coal India plunged 3.7% to ₹371.0.
Software and business services exporters dropped between 1% and 3% on the worries that India will be included in the new round of tariffs that are likely to be announced over the next two months.
TCS decreased 1% to ₹4,030.45, Infosys declined 0.4% to ₹1,844.55, Wipro gained 1.2% to ₹308.80, and HCL Technologies fell 1.4% to ₹1,682.40.
U.S. Movers: Automobile Industry Stocks, Chevron, Deckers Outdoor, MasterCard, PulteGroup
Scott Peters
03 Feb, 2025
New York City
U.S. investors sold stocks, and market confidence waned in the chaotic Trump administration after the U.S. imposed stiff tariffs on its three largest trading partners and launched a global trade war.
Automobile and parts makers fell after the announcements of new tariffs on imports from the three largest trading partners.
U.S. automobile production relies on a highly integrated supply chain network spanning from Mexico to Canada, and several parts cross borders multiple times before they are sold to consumers in North America.
General Motors declined 6.5% to $46.32, Ford Motor dropped 3.7% to $9.71, Stellantis NV decreased 4.9% to $12.53, and Tesla dropped 3.6% to $390.02.
Aptiv declined 3.6% to $59.38, Avery Dennison fell 2.2% to $180.71, and Cummins Inc. decreased 3.2% to $345.15.
Chipotle Mexican Grill declined 2% to $57.31 after avocado shipments from Mexico face 25% tariffs as early as Wednesday.
Constellation Brands declined 4% to $170.09 after the alcoholic beverage importer and distributor faced higher product costs from Mexico.
Recent Earnings Movers
MasterCard Inc. dropped 1.9% to $555.43 despite the payments company reporting strong revenues for its fourth quarter ending in December, driven by strength in holiday sales.
Revenue advanced 16% to $7.5 billion from $6.5 billion, net income surged 22% to $3.3 billion from $2.8 billion, and earnings per diluted share rose 25% to $3.64 from $2.97 a year ago.
Pre-tax charges of $280 million were associated with a U.K. consumer class action settlement and legal provisions with a number of U.K. merchants.
The company repurchased 6.5 million shares at a cost of $3.4 billion and paid $606 million in dividends.
Quarter-to-date through January 27, MasterCard repurchased 1.2 million shares at a cost of $644 million, which leaves $14.5 billion remaining under the approved share repurchase programs.
Deckers Outdoor Corp plunged 20.5% to $177.36 despite the parent company of Hoka and Ugg reporting better-than-expected results for its third quarter of fiscal year 2025.
Revenue increased 17% to $1.83 billion from $1.56 billion, net income climbed to $456.7 million from $389.9 million, and earnings per diluted share rose 19% to $3.0 from $2.52 a year ago.
For fiscal year 2025, the company estimated net sales to increase 15% to $4.9 billion and earnings per diluted share in the range of $5.75 to $5.80.
Deckers Outdoor repurchased common stock for a total of $44.7 million in the third quarter at $162.85 per share, and as of December 31, 2024, the company had $640.7 million remaining under its stock repurchase authorization.
Chevron Corp dropped 4.6% to $149.19 after the energy company reported a decline in downstream operations in the fourth quarter ending in December.
Revenue climbed to $52.23 billion from $47.18 billion, net income jumped to $3.26 billion from $2.26 billion, and earnings per diluted share rose to $1.84 from $1.22 a year ago.
In the United States, upstream sales improved to $1.42 billion compared to a loss of $1.35 billion, and international sales declined to $2.88 billion from $2.93 billion a year ago.
Sales from downstream operations in the United States swung to a negative of $348 million from a positive of $470 million, and downstream international sales dropped to $100 million from $677 million a year ago.
Overall upstream operations brought in $4.30 billion from $1.59 billion, while downstream remained in the red at a negative $817 million from a negative $474 million a year earlier.
PulteGroup Inc. dropped 4% to $113.78 despite the home builder reporting strong results for its fourth quarter ending in December.
Revenue jumped to $4.92 billion from $4.29 billion, net income surged to $913.23 million from $710.99 million, and earnings per diluted share rose to $4.43 from $3.28 a year ago.
Both the home and land divisions as well as the financial services segment marked steadily increasing sales, but home sales in Florida and Texas declined.
The company’s board raised the dividend by 10% and approved a $1.5 billion increase of stock repurchases, bringing the remaining authorization to $2.1 billion.
U.S. Movers: Automobile Industry Stocks, Chevron, Deckers Outdoor, MasterCard, PulteGroup
Scott Peters
03 Feb, 2025
New York City
U.S. investors sold stocks and market confidence waned in the chaotic Trump administration, after the U.S. imposed stiff tariffs on its three largest trading partners and launched a global trade war.
Automobile and parts makers after the announcements of new tariffs on imports from the three largest trading partners.
U.S. automobile production relies on a highly integrated supply chain network spanning from Mexico to Canada, and several parts cross borders multiple times before they are sold to consumers in North America.
General Motors declined 6.5% to $46.32, Ford Motor dropped 3.7% to $9.71, Stellantis NV decreased 4.9% to $12.53, and Tesla dropped 3.6% to $390.02.
Aptiv declined 3.6% to $59.38, Avery Dennison fell 2.2% to $180.71, and Cummins Inc. decreased 3.2% to $345.15.
Chipotle Mexican Grill declined 2% to $57.31 after avocado shipments from Mexico face 25% tariffs as early as Wednesday.
Constellation Brands declined 4% to $170.09 after the alcoholic beverage importer and distributor faced higher product costs from Mexico.
Recent Earnings Movers
MasterCard Inc dropped 1.9% to $555.43 despite the payments company reporting strong revenues for its fourth quarter ending in December, driven by strength in holiday sales.
Revenue advanced 16% to $7.5 billion from $6.5 billion, net income surged 22% to $3.3 billion from $2.8 billion, and earnings per diluted share rose 25% to $3.64 from $2.97 a year ago.
Pre-tax charges of $280 million were associated with an U.K. consumer class action settlement and legal provisions with a number of U.K merchants.
The company repurchased 6.5 million shares at a cost of $3.4 billion and paid $606 million in dividends.
Quarter-to-date through January 27, MasterCard repurchased 1.2 million shares at a cost of $644 million, which leaves $14.5 billion remaining under the approved share repurchase programs.
Deckers Outdoor Corp plunged 20.5% to $177.36 despite the parent company of Hoka and Ugg reporting better-than-expected results for its third quarter of fiscal year 2025.
Revenue increased 17% to $1.83 billion from $1.56 billion, net income climbed to $456.7 million from $389.9 million, and earnings per diluted share rose 19% to $3.0 from $2.52 a year ago.
For fiscal year 2025 the company estimated net sales to increase 15% to $4.9 billion, and earnings per diluted share in the range of $5.75 to $5.80.
Deckers Outdoor repurchased common stock for a total of $44.7 million in the third quarter at $162.85 per share, and as of December 31, 2024, the company had $640.7 million remaining under its stock repurchase authorization.
Chevron Corp dropped 4.6% to $149.19 after the energy company reported a decline in downstream operations in the fourth quarter ending in December.
Revenue climbed to $52.23 billion from $47.18 billion, net income jumped to $3.26 billion from $2.26 billion, and earnings per diluted share rose to $1.84 from $1.22 a year ago.
In the United States, upstream sales improved to $1.42 billion compared to a loss of $1.35 billion, and international sales declined to $2.88 billion from $2.93 billion a year ago.
Sales from downstream operations in the United States swung to a negative of $348 million from a positive of $470 million, and downstream international sales dropped to $100 million from $677 million a year ago.
Overall upstream operations brought in $4.30 billion from $1.59 billion, while downstream remained in the red at a negative $817 million from a negative $474 million a year earlier.
Pultegroup Inc dropped 4% to $113.78 despite the home builder reporting strong results for its fourth quarter ending in December.
Revenue jumped to $4.92 billion from $4.29 billion, net income surged to $913.23 million from $710.99 million, and earnings per diluted share rose to $4.43 from $3.28 a year ago.
Both the home and land divisions as well as the financial services segment marked steadily increasing sales, but home sales in Florida and Texas declined.
The company’s board raised the dividend by 10% and approved a $1.5 billion increase of stock repurchases, bringing the remaining authorization to $2.1 billion.
Wall Street Investors Stunned After Trump Administration Kicked Off Global Trade War
Barry Adams
03 Feb, 2025
New York City
Stock market indexes dropped, bond yields advanced, and market confidence wavered after investors returned from a weekend.
The S&P 500 index declined 1.7%, and the Nasdaq Composite dropped 2.2% in Monday's trading after the U.S. slapped tariffs on imports from its three largest trading partners.
The U.S. imposed 25% tariffs on imports from Mexico and Canada and imposed an additional 10% tariff on manufactured goods from China.
The move is likely to cover about $1.2 trillion, or about half of all imports, and could raise as much as $240 billion over a year.
Tariffs are paid by the U.S. importing companies, which are generally passed on to American consumers in the form of higher prices.
The Republican Party in the past had advocated free trade and decried trade barriers and tariffs, but as the party supports higher indirect taxes on all citizens and raises government revenue to pay for tax cuts for the wealthy donors.
The U.S. imports about $1.2 trillion of goods from its three largest trading partners, and the world's largest economy has run deficits for decades with its six key trade partners—Mexico, Canada, China, the European Union, Japan, and Korea.
The U.S. has run an annual trade deficit since 1964 and rarely bothered to focus on improving its trade competitiveness, as the dollar's reserve currency status provides an advantage that no other country enjoys.
Market confidence in the Trump administration has substantially weakened, and global financial markets are roiled from New York, Frankfurt, to Tokyo after the newly appointed presidential administration's actions are likely to start a new trade war.
Stock market indexes are likely to face a sharp selloff as investors worry about the announcements of more policies that could push the U.S. economy into a recession and stoke inflation, forcing the Federal Reserve to keep higher rates for longer.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 1.7% to 5,940.61, the Nasdaq Composite edged down 2.2% to 19,204.90, and the Russell 2000 index was down 2.5% to 2,231.23.
The yield on 2-year Treasury notes edged higher to 4.25%, 10-year Treasury notes declined to 4.51%, and 30-year Treasury bonds dropped to 4.74%.
WTI crude oil increased $1.83 to $74.36 a barrel, and natural gas prices edged higher by $0.27 to $3.32 a thermal unit.
Gold rose by $16.64 to 2,813.51 an ounce, and silver edged up by $0.06 to $31.34.
The dollar index, which weighs the US currency against a basket of foreign currencies, climbed 0.90 to 109.27 and traded at a two-year high.
U.S. Stock Movers
Automobile and parts makers after the announcements of new tariffs on imports from the three largest trading partners.
U.S. automobile production relies on a highly integrated supply chain network spanning from Mexico to Canada, and several parts cross borders multiple times before they are sold to consumers in North America.
General Motors declined 6.5% to $46.32, Ford Motor dropped 3.7% to $9.71, Stellantis NV decreased 4.9% to $12.53, and Tesla dropped 3.6% to $390.02.
Aptiv declined 3.6% to $59.38, Avery Dennison fell 2.2% to $180.71, and Cummins Inc. decreased 3.2% to $345.15.
Chipotle Mexican Grill declined 2% to $57.31 after avocado shipments from Mexico face 25% tariffs as early as Wednesday.
Constellation Brands declined 4% to $170.09 after the alcoholic beverage importer and distributor faced higher product costs from Mexico.
Wall Street Investors Stunned After Trump Administration Kicks Off Global Trade War
Barry Adams
03 Feb, 2025
New York City
Stock market indexes dropped, bond yields advanced, and market confidence wavered after investors returned from a weekend.
The S&P 500 index declined 0.7%, and the Nasdaq Composite dropped 1.1% in Monday's trading after the U.S. slapped tariffs on imports from its three largest trading partners.
The U.S. imposed 25% tariffs on imports from Mexico and Canada and imposed an additional 10% tariff on manufactured goods from China.
The move is likely to cover about $1.2 trillion, or about half of all imports, and could raise as much as $240 billion over a year.
Tariffs are paid by the U.S. importing companies, which are generally passed on to American consumers in the form of higher prices.
The Republican Party in the past had advocated free trade and decried trade barriers and tariffs, but as the party supports higher indirect taxes on all citizens and raises government revenue to pay for tax cuts for the wealthy donors.
The U.S. imports about $1.2 trillion of goods from its three largest trading partners, and the world's largest economy has run deficits for decades with its six key trade partners—Mexico, Canada, China, the European Union, Japan, and Korea.
The U.S. has run an annual trade deficit since 1964 and rarely bothered to focus on improving its trade competitiveness, as the dollar's reserve currency status provides an advantage that no other country enjoys.
Market confidence in the Trump administration has substantially weakened, and global financial markets are roiled from New York, Frankfurt, to Tokyo after the newly appointed presidential administration's actions are likely to start a new trade war.
Stock market indexes are likely to face a sharp selloff as investors worry about the announcements of more policies that could push the U.S. economy into a recession and stoke inflation, forcing the Federal Reserve to keep higher rates for longer.
U.S. Stock Movers
Automobile and parts makers after the announcements of new tariffs on imports from the three largest trading partners.
U.S. automobile production relies on a highly integrated supply chain network spanning from Mexico to Canada, and several parts cross borders multiple times before they are sold to consumers in North America.
General Motors declined 6.5% to $46.32, Ford Motor dropped 3.7% to $9.71, Stellantis NV decreased 4.9% to $12.53, and Tesla dropped 3.6% to $390.02.
Aptiv declined 3.6% to $59.38, Avery Dennison fell 2.2% to $180.71, and Cummins Inc. decreased 3.2% to $345.15.
Chipotle Mexican Grill declined 2% to $57.31 after avocado shipments from Mexico face 25% tariffs as early as Wednesday.
Constellation Brands declined 4% to $170.09 after the alcoholic beverage importer and distributor faced higher product costs from Mexico.
Europe Movers: Deutsche Bank, Julius Baer, Kone, Roche, Sanofi
Inga Muller
03 Feb, 2025
Frankfurt
The possibilities of higher trade barriers for the EU's exports to the U.S. come at a critical time as the region is struggling to expand its economic activities and reeling under stiff competition from China.
The DAX index decreased by 1.6% to 21,378.03; the CAC-40 index dropped 1.5% to 7,831.65; and the FTSE 100 index declined by 1.2% to 8,569.99.
The yield on 10-year German bonds inched lower to 2.43%, French bonds declined to 3.15%, the UK gilts moved down to 4.54%, and Italian bonds edged higher to 3.56%.
Automobile makers and advanced semiconductor equipment makers led the decliners across Europe in Monday's trading.
All leading automobile makers in the European Union declined, led by Mercedes-Benz Group AG, which fell 4.3% to €56.39; BMW plunged 4% to €75.42; Volkswagen AG dropped 5.8% to €95.55; and Stellantis NV fell 6% to €12.19.
Among leading tech equipment companies, Infineon Technologies AG decreased 4.2% to €30.74, and ASML Holding dropped 2.7% to €702.80.
Julius Baer Gruppe AG dropped 11% to CHF 56.70 despite the Swiss wealth management company posting strong fiscal year 2024 results, boosted by a substantial tax release.
The Swiss asset management company's new chief executive announced plans to trim its workforce by 5% as the company looks for ways to lower its operating costs.
Fiscal 2024 operating income jumped to CHF 3.86 billion from CHF 3.24 billion, net profit surged to CHF 1.02 billion from CHF 453.4 million, and earnings per diluted share rose to CHF 4.97 from CHF 2.21 a year ago.
Total assets increased to CHF 105.1 billion from CHF 96.79 billion a year earlier.
Operating income in the Americas decreased to CHF 51 million from CHF 63 million, while income advanced in other regions.
Earlier in January, the company agreed to sell its domestic Brazilian wealth management business to Banco BTG Pactual S.A. for CHF 91 million in a deal expected to close in the first quarter of 2025.
Julius Baer is extending its cost reduction program for 2023-2025, aiming at a CHF 110 million gross general expense and personnel cost savings on a run-rate basis by the end of 2025.
The costs to achieve these savings are estimated at approximately CHF 55 million, and they will be booked in 2025.
The company proposed a dividend of CHF 2.60 per share to be paid on April 16 and matched the rate in the previous year.
Kone Oyj dropped 0.9% to €50 after the Finnish elevator engineering company posted lower earnings in the fourth quarter ending in December.
Sales jumped 5.9% to €2.98 billion from €2.81 billion; net income declined 11.5% to €244.5 million from €276.3 million, and earnings per share fell 11.2% to 47 cents from 53 cents a year ago.
The annual growth in new orders declined, driven by the weakness in China, but new orders in the other regions were more stable.
Greater China comprised 23% of total sales, compared to a 27% share a year earlier, and quarterly sales in the region declined 13.3% to €620.5 million from €715.3 million a year ago.
Sales in the new building solutions segment declined 2.2%, while service and modernization sales increased by 11.2% and 13.6%, respectively.
Kone holds a 19.9% stake in Toshiba Elevator and Building Systems Corporation.
The company’s board proposed a dividend of €1.80 to be paid on outstanding class A and class B shares beginning on March 14 and resulting in a total amount of €931.36 million.
Furthermore, the board proposed that the distributable profits of €2.28 billion be retained and carried forward.
Deutsche Bank AG gained 0.2% to €18.94 after Germany’s largest bank reported an increase in revenue in the fourth quarter ending in December, but profit slumped as a result of a higher provision for legal expenses and restructuring costs.
Revenue climbed 8% to €7.2 billion from €6.7 billion; profit slumped to €106 million from €1.3 billion, and earnings per diluted share declined to 15 cents from 67 cents a year ago.
For fiscal year 2025, the company estimated revenue growth to range between 5.5% and 6.5% to approximately €32 billion.
The bank plans to propose a cash dividend of 68 cents per share, up from 45 cents per share last year, and the company approved a share buyback of €750 million year to date.
Roche Holding AG gained 0.3% to CHF 286 after the Swiss pharmaceutical company reported sales growth in fiscal 2024, but profit declined.
Revenue increased 3% to CHF 60.5 billion from CHF 58.7 billion, net income slumped 26% to CHF 9.19 billion from CHF 12.36 billion, and earnings per diluted share fell to CHF 10.31 from CHF 14.31 a year ago.
Pharmaceutical sales increased by 8%, and diagnostics sales rose by 4%, while excluding COVID-19-related products, which grew by 8%, driven by higher demand for immunodiagnostic products.
The company raised its dividend per share to CHF 9.70 from CHF 9.60 a year earlier.
Sanofi S.A. gained 0.75% to €104.40 after the French pharmaceutical company beat fourth-quarter earnings estimates, driven by improved pipeline momentum.
Revenue increased 9.1% to €10.56 billion from €9.69 billion, net income jumped to €695 million from a net loss of €558 million, and earnings per diluted share rose to 54 cents from a loss of 44 cents a year ago.
Gross profit jumped 5.4% to €7.84 billion from €7.44 billion a year earlier.
The company’s board proposed a dividend of €3.92 for 2024, to be approved by shareholders on April 30, and in 2025 Sanofi plans to buy back shares worth €5 billion.