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Stocks On Wall Street Lacked Direction After the Consumer Sentiment Dropped to a 6-month Low

Barry Adams
10 May, 2024
New York City

Stocks wavered in early trading on Wall Street after investors digested the latest update on consumer sentiment.

The S&P 500 index and the Nasdaq Composite struggled to stay above the flatline after the University of Michigan Consumer Sentiment declined to 67.4 from 77.2 in April.

Consumer sentiment fell to a six-month low, and inflation expectation for the year-ahead reached 3.5% from 3.2% in the previous month, according to the preliminary estimate.

Consumers are worried that unemployment, inflation, and interest rates are moving in an unfavorable direction in the next 12 months.

The latest consumer sentiment report dented rate-cut expectations in the summer, as policymakers may keep interest rates higher for longer to drive inflation towards the 2% target rate.

For the week, the S&P 500 index rose 1.1% and the Nasdaq Composite advanced 0.4%.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 5,220.39, and the Nasdaq Composite fell 0.1% to 16,331.89.

The yield on 2-year Treasury notes edged lower to 4.86%, 10-year Treasury notes inched lower to 4.51%, and 30-year Treasury bonds edged lower to 4.64%.

WTI crude oil increased $0.19 to $79.45 a barrel, and natural gas prices decreased 1 cent to $2.28 a thermal unit.

Gold increased by $17.68 to $2,364.96 an ounce, and silver fell 11 cents to $28.22.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.35.

U.S. Stock Movers

Sweetgreen soared 39% to $32.95 after the salad chain reported higher-than-expected revenue in the first quarter.

Revenue in the first quarter increased by 26% to $157.9 million from $125.1 million, driven by the same store sales increase of 5% from a year ago.

Net loss in the quarter decreased to $26.1 million from $33.6 million, and diluted loss per share fell to 23 cents from 30 cents a year ago.

Akamai Technologies decreased 9.1% to $94.06 after the internet infrastructure company estimated weaker-than-expected second quarter earnings.

Revenue in the first quarter increased 8% to $987 million from $915.7 million, net income rose to $175.4 million from $97.1 million, and diluted earnings per share advanced to $1.11 from 62 cents a year ago.

The company estimated a second-quarter revenue range between $967 million and $986 million and full-year revenue between $3.95 billion and $4.02 billion.

Array Technologies rose 2.9% to $12.88 after the company reported better-than-expected adjusted earnings.

Revenue in the first quarter decreased to $153.4 million from $376.8 million, net income swung to a loss of $11.3 million from $17.2 million, and diluted earnings per share were a loss of 7 cents compared to a profit of 11 cents a year ago.

The company reaffirmed its annual revenue range of $1.25 billion to $1.4 billion and adjusted earnings per share to range between $1.0 and $1.15 billion.

Novavax soared 124% to $10.02 after the company announced a multi-billion-dollar deal with Sanofi to co-commercialize its COVID vaccine starting as early as 2025.

Sanofi agreed to pay Novavax an upfront licensing fee of $500 million and an additional fee of $700 million based on reaching certain milestones.

U.S. Movers: Akamai Technologies, Array Technologies, Novavax, Sweetgreen

Scott Peters
10 May, 2024
San Francisco

Sweetgreen soared 39% to $32.95 after the salad chain reported higher-than-expected revenue in the first quarter.

Revenue in the first quarter increased by 26% to $157.9 million from $125.1 million, driven by the same store sales increase of 5% from a year ago.

Net loss in the quarter decreased to $26.1 million from $33.6 million, and diluted loss per share fell to 23 cents from 30 cents a year ago.

Akamai Technologies decreased 9.1% to $94.06 after the internet infrastructure company estimated weaker-than-expected second quarter earnings.

Revenue in the first quarter increased 8% to $987 million from $915.7 million, net income rose to $175.4 million from $97.1 million, and diluted earnings per share advanced to $1.11 from 62 cents a year ago.

The company estimated a second-quarter revenue range between $967 million and $986 million and full-year revenue between $3.95 billion and $4.02 billion.

Array Technologies rose 2.9% to $12.88 after the company reported better-than-expected adjusted earnings.

Revenue in the first quarter decreased to $153.4 million from $376.8 million, net income swung to a loss of $11.3 million from $17.2 million, and diluted earnings per share were a loss of 7 cents compared to a profit of 11 cents a year ago.

The company reaffirmed its annual revenue range of $1.25 billion to $1.4 billion and adjusted earnings per share to range between $1.0 and $1.15 billion.

Novavax soared 124% to $10.02 after the company announced a multi-billion-dollar deal with Sanofi to co-commercialize its COVID vaccine starting as early as 2025.

Sanofi agreed to pay Novavax an upfront licensing fee of $500 million and an additional fee of $700 million based on reaching certain milestones.

27 Nov, 2024

Europe Movers: CRH, Cairn Homes, IAG, Iveco, Resource Stocks

Inga Muller
10 May, 2024
Frankfurt

European market indexes inched further into record territory as investors raised expectations for a rate cut in the summer.

For the week, the DAX rose 4.3%, the CAC advanced 3.2%, and the FTSE 100 index gained 3.4%.

In Friday's trading, the DAX index increased by 0.5% to 18,771.51; the CAC-40 index rose by 0.7% to 18,771.51; and the FTSE 100 index inched higher by 0.8% to a new intraday record of 8,447.45.

The yield on 10-year German bonds edged down to 2.48%; French bonds inched lower to 2.98%; the UK gilts edged lower to 4.12%; and Italian bonds inched higher to 3.81%

Resource stocks advanced after copper, iron ore, gold, and silver prices edged higher in the hopes of demand recovery in China.

Anglo American, Glencore, and Antofagasta advanced between 1% and 2%.

Energy explorers advanced in trading after Brent crude oil prices advanced to one-week highs.

CRH PLC soared 4.7% to 6,710.0 pence after the building materials provider reaffirmed its annual outlook.

Cairn Homes PLC gained 3.9% to 146.60 pence after the Irish home builder said demand for homes across price ranges and types remains "exceptionally high."

Iveco Group gained 3.3% to €12.08 after the truck and bus maker reported better-than-expected quarterly results.

Revenue in the fiscal second quarter ending in March held steady at €3.36 billion, after-tax net income rose to €12 million from €10 million, and diluted earnings per share advanced to 6 cents from 2 cents a year ago.

International Consolidated Airlines Group soared 0.4% to 183.45 pence after the parent of British Air and Iberian Air said operating profit in the first quarter rose to 68 million from 9 million a year ago.

Chief Executive Luis Gallego said the company is "well positioned for the summer," indicating strong booking for the upcoming travel season.

Revenue in the first quarter increased to €6.4 billion from €5.9 billion, after-tax loss shrank to €4 million from €87 million, and basic loss per share eased to 0.1 cent from 1.8 cents.

Rate Cut Hope Lifts European Markets and Extends Weekly Gains Above 3%

Bridgette Randall
10 May, 2024
Frankfurt

European markets advanced and extended further into record territory in the hopes that the major central banks are more likely to cut rates this summer.

Benchmark indexes in Paris, London, and Frankfurt inched higher and extended their weekly gains as traders estimated major central banks are ready to cut rates as early as June, after the cooler U.S. jobs report and dovish guidance from the Bank of England.

The U.K. GDP advanced 0.6% in the first quarter, higher than estimated by the Bank of England.

The GDP rose at a faster pace than in the previous quarter, when the economy shrank by 0.3%, the Office for National Statistics reported Friday.

With the latest increase, the UK economy ended its technical recession after shrinking to 0.1% in the third quarter and 0.3% in the fourth quarter of 2023.

On an annual basis, the U.K. GDP expanded at a slower pace of 0.2%.

On Thursday, the Bank of England held its key lending rate at a 16-year high for the sixth time in a row at 5.25% and hinted that a rate cut is likely if incoming inflation data warrants the move.

The U.S. weekly jobless claims rose above 200,000 to the highest level since August 2023, indicating that the job market is moderating and providing additional room for the central bank to lower rates.

Europe Indexes and Yields

For the week, the DAX rose 4.3%, the CAC advanced 3.2%, and the FTSE 100 index gained 3.4%.

In Friday's trading, the DAX index increased by 0.5% to 18,771.51; the CAC-40 index rose by 0.7% to 8,218.26; and the FTSE 100 index inched higher by 0.8% to a new intraday record of 8,447.45.

The yield on 10-year German bonds edged down to 2.48%; French bonds inched lower to 2.98%; the UK gilts edged lower to 4.12%; and Italian bonds inched higher to 3.81%.

The euro edged higher to $1.077; the British pound inched higher to $1.252; and the U.S. dollar edged higher to 90.69 Swiss cents.

Brent crude increased $0.43 to $84.31 a barrel, and the Dutch TTF natural gas fell by €0.61 to €30.35 per MWh.

Europe Stock Movers

Resource stocks advanced after copper, iron ore, gold, and silver prices edged higher in the hopes of demand recovery in China.

Anglo American, Glencore, and Antofagasta advanced between 1% and 2%.

Energy explorers advanced in trading after Brent crude oil prices advanced to one-week highs.

CRH PLC soared 4.7% to 6,710.0 pence after the building materials provider reaffirmed its annual outlook.

Cairn Homes PLC gained 3.9% to 146.60 pence after the Irish home builder said demand for homes across price ranges and types remains "exceptionally high."

Hang Seng Index Trade at an 8-month High; New Listing Applications Rebound in Hong Kong

Li Chen
10 May, 2024
Mumbai

Market indexes in Shanghai and Hong Kong advanced for the second day in a row in hopes that the government will follow through on its market-supportive measures.

The benchmark index in Shanghai extended weekly gains to 0.4%, and the index in Hong Kong advanced more than 2%.

The Hang Seng index traded at an eight-month high after Hong Kong Exchange & Clearing chief Bonnie Chan Yitin said listing applications are ahead of last year's level.

Moreover, marker sentiment was bolstered by speculation that the Chinese regulators would scrap a 20% tax on dividends paid to mainland China investors, lifting dividend-paying stocks.

In overnight trading, stocks in New York advanced after the latest weekly jobless claims rose to the highest level since August 2023, suggesting that the Federal Reserve may have more room to maneuver in lowering interest rates.

The CSI 300 index jumped 0.1% to 3,667.67, and the Hang Seng index soared 2.2% to 18,950.99.

Hong Kong Exchange & Clearing jumped 7.2% to HK$284.60 after the newly appointed chief executive said new company listing applications soared to 100 in the year so far.

The number of applications jumped 30% from a year ago in the first quarter to 60 after the Chinese regulators announced more supportive measures for Hong Kong listings.

Semiconductor Manufacturing International rose 1.4% to HK$16.24 after the advanced chip maker reported a 23% increase in revenue in the first quarter.

Dividend-paying stocks were the focus of speculation that the China Securities Regulatory Commission and the State Taxation Administration are likely to remove the 20% dividend tax charge on stocks that mainland investors can invest in through the Stock Connect program.

China Resource Power jumped 4.5% to HK$20.80, China Construction Bank advanced 5.5% to HK$5.60, and Heng Sang Bank of China jumped 2.2% to HK$108.60.

Electric vehicle makers traded lower on the worry that the intense price pressure could dent weak margins further.

BYD declined 3.4% to HK$222.40, Li Auto dropped 2.4% to HK$104.80, and Xpeng eased 1.4% to HK$31.55.

India Movers: Abbott India, BPCL, Intellect Design, VST Tillers

Arun Goswami
10 May, 2024
Mumbai

Benchmark indexes in Mumbai rebounded and trimmed weekly losses as investors remained cautious as the national election reached the half-way mark.

The Sensex index increased by 0.7% to 72,917.27, and the Nifty index rose by 0.7% to 22,117.40.

On the Mumbai stock exchange, 78 stocks traded at their 52-week highs, and 31 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 7.11%, and the Indian rupee edged lower at ₹83.49 against the U.S. dollar.

Bharat Petroleum Corporation advanced 3% to ₹611.30 after the company's board approved a stock bonus and cash dividend.

The company plans to issue one stock for every stock held and pay a cash dividend of ₹21 per share prior to the bonus issues.

VST Tillers Tractors decreased 4.5% to ₹3,280.05 after the company reported weaker-than-expected quarterly results.

Operating revenue decreased by 15.3% to ₹273.4 crore from ₹322.6 crore, and operating earnings fell by 27% to ₹39.8 crore from ₹54.5 crore a year ago, respectively.

The company proposed a final dividend of ₹20 per share, subject to shareholder approval at the annual general meeting.

Abbott India increased 2.6% to ₹26,205.45 after the pharmaceutical company reported rising revenue and earnings in the March quarter.

Revenue in the quarter increased 7% to ₹1,438.6 crore from ₹1,343.1 crore, and net income surged 24.1% to ₹287.1 crore from ₹231.4 crore a year ago, respectively.

The company proposed to pay a final dividend of ₹410 a share to shareholders on record on July 10.

Intellect Design Arena dropped 13% to ₹890.0 after the cloud services provider to banks and insurance companies reported a decline in revenue and earnings in the March quarter.

Revenue fell 1.4% to ₹612 crore and net income declined 5.7% to ₹85.5 crore from a year ago, respectively.

The revenue declined after the company lost a government contract or market share.

U.S. and European Markets Approach Record Highs

Alexander Garcia
09 May, 2024
Miami

Stocks in New York traded higher after investors overcame morning jitters amid mixed quarterly results.

The S&P 500 index and the Nasdaq Composite edged lower by 0.2% in early trading, the yield on 10-year Treasury notes edged lower, and crude oil prices advanced.

Initial jobless claims for the week ending May 4 rose from 22,000 to 231,000, the U.S. Labor Department reported Thursday.

The initial claims for unemployment benefits rose to their highest levels since August 2023, indicating tight labor market conditions may be moderating as economic growth slows down.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,208.16, and the Nasdaq Composite rose 0.26% to 16,354,82.

The yield on 2-year Treasury notes edged lower to 4.85%, 10-year Treasury notes inched lower to 4.45%, and 30-year Treasury bonds edged lower to 4.65%.

Natural gas futures rose 5% to a four-month high on the expectations of the sustained rise in demand in the next two weeks.

Natural gas supplies has declined by 2.3 billion cubic feet over the past six days, dropping to a four-month low of 95.5 bcfd, according to the data released by the U.S. Energy Information Administration.

At the same time, electric power utilities added fewer-than-expected natural gas storage build, 79 billion cubic feet, last week.

WTI crude oil increased $0.33 to $79.31 a barrel, and natural gas prices increased 9 cents to $2.27 a thermal unit.

Gold increased by $22.58 to $2,331.26 an ounce, and silver rose 81 cents to $28.12.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.31.

U.S. Stock Movers

Warner Bros. Discovery declined 4% to $7.49 after the media company reported weaker-than-expected quarterly results.

Uber Technologies rose 0.8% to $66.90 after the company reported a loss in its latest quarter on Wednesday.

Uber stock dropped as much as 7% after the quarterly results fell short of market expectations.

Airbnb dropped 7.8% to $145.51 after the short-term rental platform operator reported better-than-expected first-quarter results, but the company's second-quarter revenue growth outlook fell short of investors' expectations.

Arm Holdings PLC declined 6.6% to $99.08 after the advanced chip designer estimated full-year revenue to range between $3.8 billion and $4.1 billion.

Robinhood Markets rose 6.7% to $19.02 after the trading platform operator reported revenue in the first quarter of $618 million and earnings per share of 18 cents, ahead of analysts' expectations.

European Markets Pause 4-day Rally. BOE Holds Rates Steady

European markets rested after advancing for consecutive sessions in a row as investors digested the latest batch of corporate results and awaited the Bank of England's rate decision.

The Bank of England held its interest rates steady for the eighth time in a row at 5.25% as the country battles persistent fuel and food price inflation and elevated service inflation.

The Bank of England estimated U.K.'s economy to grow by 0.4% in the first quarter and advance 0.2% in the second quarter, and the consumer price inflation is expected to ease to 2% in the "near term."

The projections provided by the central bank also estimated interest rate to ease to 4.5% by the second quarter of 2025.

Investors have been bidding up stocks in hopes that the European Central Bank is ready to announce its first rate cut decision at its next meeting, overlooking the weakness in consumer spending and weakening business sentiment.

The euro is likely to face more selling pressure as rate paths in the U.S. and the eurozone diverge.

Investors also reviewed the increase in China's imports in April, supporting the expectations of rising exports from the eurozone to the world's second-largest economy.

Europe Indexes and Yields

The DAX index increased by 0.9% to 18,679.71; the CAC-40 index rose by 0.7% to 8,187.65; and the FTSE 100 index inched higher by 0.3% to a new intraday record of 8,381.35.

The yield on 10-year German bonds edged down to 2.49%; French bonds inched lower to 2.99%; the UK gilts edged lower to 4.17%; and Italian bonds inched higher to 3.84%.

The euro edged higher to $1.073; the British pound inched higher to $1.249; and the U.S. dollar edged higher to 90.94 Swiss cents.

Brent crude increased $0.66 to $84.24 a barrel, and the Dutch TTF natural gas fell by €0.67 to €31.36 per MWh.

BBVA Makes Hostile Offer for Sabadell

Banco de Sabadell jumped 3.5% to €1.86 after BBVA proposed a €12.2 billion hostile takeover of the company.

BBVA declined 5.8% to €9.68 after Sabadell's board rejected the company's all-cash merger offer earlier this week.

Resource and Luxury Stocks In Focus

Telefonica increased 0.1% to €4.19 after the Spanish telecom network operator reported better-than-expected quarterly results.

Nexi increased 5.8% to €6.04 after the Italian payment processor reported better-than-expected first quarter results and launched its stock buyback program.

China-linked luxury goods makers declined despite the second-largest economy reporting rising imports in April.

LVMH fell 0.9% to €780.60, Hermes declined 0.8% to €2,287.0, and Kering SA dropped 0.9% to €328.20.

ITV gained 1.6% to 75.55 pence despite the UK-based broadcasting company reporting a decline in first quarter revenue.

BAE Systems rose 0.8% to 1,392.50 pence after the defense contractor reiterated its fiscal year 2024 outlook and delivered strong performance in the year so far.

John Wood Group was nearly unchanged at 192.90 pence after the oil services company confirmed its outlook for fiscal years 2024 and 2025.

BOJ Reiterates Accommodative Policy

Benchmark indexes in Japan lacked direction, and the yen traded in a tight range after the release of the summary of the policy meeting held in April.

Policy committee members highlighted the inflation risks from rising wages but reiterated their commitment to keeping the accommodative stance in purchasing Japanese government bonds.

Real Wages Fall In Japan for the 27th Consecutive Month

On the wage front, Japan's inflation-adjusted real wages declined for the 24th month in a row in March, according to the latest data released by the Ministry of Health, Labor, and Welfare.

Nominal cash wages, including overtime pay, increased 0.6% to 301,193 yen, or $1,940.

Nominal wages rose for the 27th month in a row, but after adjusting for inflation, they continued to decline.

The consumer price tracked for determining real wages rose 3.1% in March, significantly higher than the 0.6% rise in nominal wages.

The full-time worker's average nominal wage increased by 0.8% to 386,795 yen, and the part-time worker's advanced by 2.5% to 108,036 yen.

The total working hours per worker decreased by 2.7% from a year ago to 136.2 yen.

The latest data excludes the spring wage gains negotiated between the large companies and labor unions, and the government data showed only 20% of small and medium-sized businesses increased wages by more than 5%.

The so-called "shunto" wage negotiations, representing annual wage negotiations between the largest Japanese corporations and labor unions, generally set the tone for wage adjustments for other companies in Japan.

The Japanese yen traded around 155.70 against the dollar, slightly higher than in the previous session.

Japan Stock Movers

The Nikkei 225 Stock Average decreased 0.1% to 38,146.21, and the Topix index added 0.4% to 2,716.69.

Leading tech companies traded sideways in choppy trading.

SoftBank fell 2.5% to ¥7,736.0, Advantest declined 0.9% to ¥5,106.0, Screen Holdings advanced 0.6% to ¥17,600.0, and Tokyo Electron dropped 3% to ¥35,210.0.

Sumitomo Mitsui Financial advanced 1.3% to ¥8,913.0, Mizuho Financial added 1.2% to ¥3,033.0, and Mitsubishi UFJ Financial gained 2.2% to ¥1,583.50.

Earnings update lifted stocks of Omron and Orix but lowered Yamato Holdings.

Omron Corp. rose 6.5% to ¥6,013.0, Orix advanced 6.5% to ¥3,426.0, and IHI jumped 8.3% to ¥4,119.0.

Yamato Holdings dropped 11.8% to ¥1,777.0.

China Markets Rebound 1%, Trim Weekly Losses

Benchmark indexes in Shanghai and Hong Kong drifted higher after China's exports rose more than expected, and investors pinned hopes regulators would follow through on promises of support measures for financial markets.

China Trade Surplus Shrinks In April

China's goods and services exports in April rose 1.5% to $292.5 billion, and imports advanced 8.4% to $220.1 billion from a year ago, respectively.

The trade surplus in April fell to $72.4 billion, compared to $86.5 billion a year ago and $58.6 billion in March.

Exports declined 7.5% and imports edged slightly lower from the previous month, respectively, the General Administration of Customs reported Thursday.

China's exports are likely to rebound in 2024 after slumping 4.6% in the previous year, indicating rising demand from the U.S. and ASEAN regions.

However, imports are still struggling amid a fragile domestic economic recovery.

Exports to the U.S. declined 1.6% in April, dropped 3.3% to the European Union, but rose 20.4% to the ASEAN region from a year ago, respectively.

China's international trade balance for the first four months was $255.7 billion, compared to $266 billion in the same period a year ago.

Exports rose 1.5% to $1.1 trillion, and imports advanced 3.2% to $842.9 billion in the first four months of 2024.

China Stock Movers

The CSI 300 index gained 1% to 3,667.50, and the Hang Seng index advanced 1.1% to 18,538.57.

The market mood was also bolstered in the hopes that more cities across China are likely to relax curb measures in support of the property market.

Hangzhou eliminated several buyer qualification requirements imposed several years ago on home purchases following a similar move by the southwest city of Chengdu.

In addition, as many as 55 cities have allowed the lowering of mortgage rates to support home sales, following the Politburo meeting in April.

Longfor Group advanced 5.7% to HK$12.16, China Vanke jumped 8.8% to HK$4.84, and China Resources Land added 3.4% to HK$30.15.

Automakers traded mixed in the hopes that rising exports will support the growth in electric vehicle makers' sales growth in the current quarter.

BYD increased 0.4% to HK$225.20, Li Auto declined 1.1% to HK$107.80, Nio added 0.4% to HK$42.25, and Xpeng advanced 0.4% to HK$32.40.

Benchmark indexes in Hong Kong soared more than 7% in April and extended gains by 4% in May in the hopes that regulatory reforms and supportive measures by the People's Bank of China will improve market confidence.

However, measures announced by the local authorities are likely to fall short of market expectations, and consumer confidence remains weak amid an uneven economic recovery and a weakening job market.

U.S. Movers: Airbnb, Arm Holdings, Robinhood Markets, Warner Bros, Wynn Resorts, Uber

Scott Peters
09 May, 2024
New York City

Warner Bros. Discovery declined 4% to $7.49 after the media company reported weaker-than-expected quarterly results.

Uber Technologies rose 0.8% to $66.90 after the company reported a loss in its latest quarter on Wednesday.

Uber stock dropped as much as 7% after the quarterly results fell short of market expectations.

Airbnb dropped 7.8% to $145.51 after the short-term rental platform operator reported better-than-expected first-quarter results, but the company's second-quarter revenue growth outlook fell short of investors' expectations.

Arm Holdings PLC declined 6.6% to $99.08 after the advanced chip designer estimated full-year revenue to range between $3.8 billion and $4.1 billion.

Robinhood Markets rose 6.7% to $19.02 after the trading platform operator reported revenue in the first quarter of $618 million and earnings per share of 18 cents, ahead of analysts' expectations.

Indexes On Wall Street Meander Amid Lackluster Corporate Results

Barry Adams
09 May, 2024
New York City

Benchmark indexes on Wall Street lacked direction after investors turned cautious following a string of weak quarterly results.

The S&P 500 index and the Nasdaq Composite edged lower by 0.2% in early trading, the yield on 10-year Treasury notes edged lower, and crude oil prices advanced.

Initial jobless claims for the week ending May 4 rose from 22,000 to 231,000, the U.S. Labor Department reported Thursday.

The initial claims for unemployment benefits rose to their highest levels since August 2023, indicating tight labor market conditions may be moderating as economic growth slows down.

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.2% to 5,175.81, and the Nasdaq Composite fell 0.26% to 16,282,07.

The yield on 2-year Treasury notes edged lower to 4.85%, 10-year Treasury notes inched lower to 4.45%, and 30-year Treasury bonds edged lower to 4.65%.

WTI crude oil increased $0.55 to $79.53 a barrel, and natural gas prices increased 2 cents to $2.20 a thermal unit.

Gold increased by $14.09 to $2,322.96 an ounce, and silver rose 51 cents to $27.84.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.48.

U.S. Stock Movers

Warner Bros. Discovery declined 4% to $7.49 after the media company reported weaker-than-expected quarterly results.

Uber Technologies rose 0.8% to $66.90 after the company reported a loss in its latest quarter on Wednesday.

Uber stock dropped as much as 7% after the quarterly results fell short of market expectations.

Airbnb dropped 7.8% to $145.51 after the short-term rental platform operator reported better-than-expected first-quarter results, but the company's second-quarter revenue growth outlook fell short of investors' expectations.

Arm Holdings PLC declined 6.6% to $99.08 after the advanced chip designer estimated full-year revenue to range between $3.8 billion and $4.1 billion.

Robinhood Markets rose 6.7% to $19.02 after the trading platform operator reported revenue in the first quarter of $618 million and earnings per share of 18 cents, ahead of analysts' expectations.

Europe Movers: BAE, Banco de Sabadell, BBVA, ITV, John Wood, Nexi, Telefonica

Inga Muller
09 May, 2024
Frankfurt

European markets paused a 4-day rally, and benchmark indexes in Paris, London, and Frankfurt hovered near record highs.

The Bank of England is expected to hold interest rates amid elevated food and service sector inflation. Resource stocks advanced after China's imports rose in April.

The DAX index increased by 0.3% to 18,547.88; the CAC-40 index fell by 0.1% to 8,124.01; and the FTSE 100 index inched higher by 0.04% to a new intraday record of 8,357.51.

The yield on 10-year German bonds edged down to 2.49%; French bonds inched lower to 2.99%; the UK gilts edged lower to 4.17%; and Italian bonds inched higher to 3.84%.

Banco de Sabadell jumped 3.5% to €1.86 after BBVA proposed a €12.2 billion hostile takeover of the company.

BBVA declined 5.8% to €9.68 after Sabadell's board rejected the company's all-cash merger offer earlier this week.

Telefonica increased 0.1% to €4.19 after the Spanish telecom network operator reported better-than-expected quarterly results.

Nexi increased 5.8% to €6.04 after the Italian payment processor reported better-than-expected first quarter results and launched its stock buyback program.

Revenue in the first quarter increased 6% to €781.6 million from €737.6 million, and operating earnings rose 8.6% to €361.7 million from €333.1 million, a year ago, respectively.

The company estimated 2024 revenue to increase in mid-single digit and operating earnings to advance in mid-to-high single-digit.

The payment processing company also estimated free cash flow of €700 million in the fiscal year 2024.

China-related luxury goods makers declined despite the second-largest economy reporting rising imports in April.

LVMH fell 0.9% to €780.60, Hermes declined 0.8% to €2,287.0, and Kering SA dropped 0.9% to €328.20.

ITV gained 1.6% to 75.55 pence despite the UK-based broadcasting company reporting a decline in first quarter revenue.

BAE Systems rose 0.8% to 1,392.50 pence after the defense contractor reiterated its fiscal year 2024 outlook and delivered strong performance in the year so far.

Full-year 2024 sales are expected to rise between 10% and 12% from £25.28 billion, underlying earnings per share to advance between 6% and 8% to 63.2 pence, and free cash flow is expected to exceed £1.3 billion.

The company said it plans to pay 2023 final dividend of 18.5 pence per share, subject to shareholder approval, on June 3.

The company said it has completed over 90% of the three-year share buyback program of up to £1.5 billion, which commenced in July 2022, and the company plans to launch its next £1.5 billion stock repurchase program at the end of the current plan.

John Wood Group was nearly unchanged at 192.90 pence after the oil services company confirmed its outlook for fiscal years 2024 and 2025.

European Markets Pause 4-day Rally, Resource and Luxury Stocks In Focus

Bridgette Randall
09 May, 2024
Frankfurt

European markets rested after advancing for consecutive sessions in a row as investors digested the latest batch of corporate results and awaited the Bank of England's rate decision.

The Bank of England is widely anticipated to hold interest rates steady for the eighth time in a row as the country battles persistent fuel and food price inflation and elevated service inflation.

Investors are likely to focus on comments from Governor Andrew Bailey and the central bank's inflation outlook.