Market Update
European Movers: Automakers, British Banks, Delivery Hero, GSK
Inga Muller
29 Aug, 2024
Frankfurt
The weakening inflation outlook in the Euro Area supported the case for a possible rate cut after the next policy meeting in September.
The EU's passenger car registration edged slightly higher, and more buyers preferred hybrid cars.
The DAX index increased by 0.7% to 18,900.39; the CAC-40 index rose by 0.7% to 7,630.93; and the FTSE 100 index rose by 0.2% to 8,366.16.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched down to 2.94%, the UK gilts edged up to 3.98%, and Italian bonds increased to 3.63%.
Automakers edged slightly higher after passenger car registration in the European Union advanced in July.
Volkswagen Group AG edged up 0.1% to €103.50, Mercedes-Benz Group added 0.6% to €62.55, BMW increased 0.2% to €83.66, and Renault inched up 0.4% to €43.03.
British bank stocks rebounded between 1% and 2% and reversed losses in the previous session on the worry that the latest budget from the new government could impose additional taxes on the sector.
HSBC Holdings jumped 0.5% to 662.90 pence, Barclays PLC advanced 1.4% to 227.10, NatWest Group PLC inched up 0.5% to 339.80 pence, and Lloyds Banking Group jumped 0.9% to 339.80 pence.
GSK plc increased 0.6% to 1,660.50 pence after the pharmaceutical company's RSV received approval for a wider use in adults in Europe.
Delivery Hero SE soared 10% to €25.85 after the food delivery service provider reported better-than-expected results in the first half.
Revenue increased to €3.09 billion from €2.6 billion a year earlier, driven by an increase in gross merchandise volume to €11.89 billion from €11.08 billion.
The company reiterated its annual gross merchandise volume to increase between 7% and 9%, revenue to jump between 18% and 21%, and adjusted operating earnings between €725 million and €775 million.
EU Inflation Outlook Weakened, Passenger Car Registration Edged Slightly Higher
Bridgette Randall
29 Aug, 2024
London
European market indexes advanced for the third consecutive day in a row amid rising hopes of a possible rate cut in September.
Benchmark indexes in Frankfurt advanced 0.7% after a report showed inflation in six key states in Germany in August inched lower, lifting hopes of a rate cut.
The euro edged lower after Germany's inflation eased more than expected in August, setting the stage for a possible rate cut in September.
Consumer price inflation slowed to 1.9% in August from 2.3% in July, the lowest level since March 2023, according to data released by the Federal Statistical Office, or Destatis.
Spain's annual inflation rate declined to a one-year low, according to a preliminary report released by the National Statistics Institute on Thursday.
Consumer price inflation eased to 2.2% in August from 2.8% in July, mainly because of the decline in fuel prices.
The core rate of inflation, which excludes volatile food and energy prices, slowed to 2.7%, the lowest since January 2022, and down from 2.8% in July.
Bond yields in the euro zone eased following the easing of inflation, raising the prospect of a possible rate cut in September after the policy meeting on September 12.
EU Passenger Car Sales Growth Slowed in July
Passenger car registration in the European Union increased slowed to 0.2% in July from 4.3% in the prior month, the European Automobile Manufacturers' Association reported Thursday.
Car registration increased to 852,051 units in July, driven by mixed results in the four largest markets in the region.
Registrations from a year ago increased 4.7% in Italy, 3.4% in Spain, but declined 2.3% in France and 2.1% in Germany.
Battery electric car registration declined 10.8% to 102,700 units, with total market share shrank to 12.1% from 13.5% a year earlier, driven largely by the decline of 36.8% in Germany.
Hybrid-electric vehicles continued to be in favor in July, with car registrations rising by 25.7% to 273,003 units.
All four of the largest markets recorded double-digit gains, and sales surged in France by 47.4%, Spain by 31.5%, Germany by 22.4%, and Italy by 17.4%.
This increase in sales lifted the hybrid-electric car market share to 32%, up from 25.5% a year ago.
For the first seven months of 2024, car registration increased 3.9% from the previous year to 6.5 million.
Europe Indexes and Yields
The DAX index increased by 0.7% to 18,900.39; the CAC-40 index rose by 0.7% to 7,630.93; and the FTSE 100 index rose by 0.2% to 8,366.16.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched down to 2.94%, the UK gilts edged up to 3.98%, and Italian bonds increased to 3.63%.
The euro edged down to $1.10; the British pound inched higher to $1.31; and the U.S. dollar weakened to 84.34 Swiss cents.
Brent crude decreased $0.08 to $78.72 a barrel, and the Dutch TTF natural gas rose by €0.21 to €38.50 per MWh.
Europe Stock Movers
Automakers edged slightly higher after passenger car registration in the European Union advanced in July.
Volkswagen Group AG edged up 0.1% to €103.50, Mercedes-Benz Group added 0.6% to €62.55, BMW increased 0.2% to €83.66, and Renault inched up 0.4% to €43.03.
British bank stocks rebounded between 1% and 2% and reversed losses in the previous session on the worry that the latest budget from the new government could impose additional taxes on the sector.
HSBC Holdings jumped 0.5% to 662.90 pence, Barclays PLC advanced 1.4% to 227.10, NatWest Group PLC inched up 0.5% to 339.80 pence, and Lloyds Banking Group jumped 0.9% to 339.80 pence.
GSK plc increased 0.6% to 1,660.50 pence after the pharmaceutical company's RSV received approval for a wider use in adults in Europe.
Delivery Hero SE soared 10% to €25.85 after the food delivery service provider reported better-than-expected results in the first half.
Revenue increased to €3.09 billion from €2.6 billion a year earlier, driven by an increase in gross merchandise volume to €11.89 billion from €11.08 billion.
The company reiterated its annual gross merchandise volume to increase between 7% and 9%, revenue to jump between 18% and 21%, and adjusted operating earnings between €725 million and €775 million.
Japan's Nikkei 225 Index Extended Losses to Third Consecutive Day Amid Weak Tech Stocks
Akira Ito
29 Aug, 2024
Tokyo
Benchmark indexes in Tokyo struggled to advance for the third day in a row, and losses in technology stocks outweighed gains in other sectors.
Semiconductor-related stocks were under pressure in Tokyo after Nvidia's current quarter sales outlook fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, and dramatic transformation of the company have attracted worldwide attention, catapulting the company's valuation above one trillion only a few months ago.
The company's results are now viewed as a proxy for artificial intelligence spending by tech companies and provide critical support for the tech stock rally in 2024.
Nvidia said revenue in the fiscal second quarter ending in July soared 122% to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors lofty expectations.
Closer to home, the yen weakened 0.13 to 144.53 yen against the U.S. dollar after comments from Deputy Governor Ryozo Himino soothed market anxieties about future rate paths.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.1% to 38,352.12, and the broader Topix index declined 0.1% to 2,692.15.
Semiconductor stocks plunged, tracking losses in Nvidia's stock in after-hours trading in New York.
Tokyo Electron, Advantest, Screen Holding, Disco Corp., and Lasertec fell between 0.5% and 4%.
Nidec declined 3.3% to ¥5,887.0, ZOZO dropped 3% to ¥4,615.0, Shiseido fell 2.2% to ¥3,271.0, and Rakuten Group eased 4.3% to ¥1,002.0.
However, Sompo Holding increased 2.6% to ¥3,421.0, and Taiyo Yuden advanced 2.2% to ¥3,506.0.
Sumitomo Mitsui Financial declined 0.4% to ¥9,597.0, Mitsubishi UFJ Financial increased 0.4% to ¥1,516.0, and Mizuho Financial Group fell 0.4% to ¥3,003.0.
Toyota Motor decreased 0.7% to ¥2,726.0, Honda Motor increased 0.7% to ¥1,583.0, and Nissan Motor plunged 1.8% to ¥420.20.
Electric Vehicle Makers In China Report Weakening Margins, Meituan Sales and Earnings Advanced
Li Chen
29 Aug, 2024
Hong Kong
Stocks in Hong Kong and Shanghai faced another day of selling pressure, and electric vehicle makers led the decliners in Hong Kong trading.
The Hang Seng index fell 0.3% and the CSI 300 index decreased 0.2% after Li Auto reported weaker-than-expected earnings and a sharp decline in margins.
The intense price war among electric vehicle makers finally caught up with leading companies in the sector, and Li Auto's results reflected the worsening market environment.
Moreover, semiconductor-related stocks were under pressure in Hong Kong and mainland China after Nvidia's current quarter sales outlook fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, reported revenue soared 122% from a year ago to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors expectations.
Tech stocks declined despite the shopping platform operator Meituan reporting a sharp jump in profit in the second quarter.
China Stock Movers
The Hang Seng index declined 0.3% to 17,636.0 and the CSI 300 index dropped 0.2% to 3,278.07.
Li Auto decreased 8.3% to HK $74.35 and BYD declined 1.3% to HK $223.0 after the electric vehicle makers reported their quarterly results.
Li Auto profit in the second quarter soared 86% to 1.1 billion yuan, and gross margin shrank 1.1 percentage points to 19.5%.
Li Auto said unit sales in the second quarter increased 35.1% to 108,581, and the electric vehicle maker estimated sales in the current quarter to range between 145,000 and 155,000 unis.
BYD said first-half profit increased to 13.6 billion yuan, resulting in an increase of 32.8% from a year ago in the second quarter to 9.1 billion yuan.
China is the world's largest electric vehicle market, with sales of battery-operated cars now accounting for more than 50% of all passenger car sales in the country.
Meituan jumped 9.3% to HK $113.70, and the Chinese's largest shopping platform operator reported a jump in revenue and earnings in the second quarter.
Revenue increased 21% to 82 billion yuan from 68 billion yuan, and net income soared 142% to 11 billion yuan from 4.7 billion yuan a year ago.
On-demand transactions in the quarter rose 14% to 6.1 billion, driven by an increase in products available for sale and several campaigns for discounted delivery services.
China Mengniu Dairy Company jumped 9.5% to HK $13.14 after the company announced a stock buyback worth HK $2 billion.
India Movers: Annapurna Swadisht, Lemon Tree Hotels, PDS, Shaily Engineering, Reliance Industries, TCNS Clothing, VLS Finance
Arun Goswami
29 Aug, 2024
Mumbai
The Competition Commission approved the merger of Reliance-promoted Viacom 18 and Disney-controlled Star of India.
Reliance Industries holds its annual general meeting today.
The Sensex index increased by 0.4% to 81,961.13, and the Nifty index rose 0.2% to 25,097.50.
On the Mumbai stock exchange, 158 stocks traded at their 52-week highs, and 14 stocks traded at their 52-week lows.
Reliance Industries decreased 0.2% to ₹2,990.25, and the company is holding its annual general meeting today.
Moreover, the Competition Commission of India approved the merger of Reliance-controlled Viacom18 with Disney-owned Start India.
After the merger, Reliance Industries will control a 56% stake in the media and entertainment company, Disney 37%, and Bodhi Tree Systems 7%.
Annapurna Swadisht declined 6.8% to ₹467.05, and the company launched its institutional secondary offering with a floor price of ₹434.96 per share.
PDS Ltd. decreased 2.8% to ₹587.50, and the apparel manufacturing company completed its 430 crore secondary offering to institutional investors.
Shaily Engineering Plastics increased 0.6% to ₹965.0, and Motilal Oswald Mutual Fund acquired an additional 0.68% stake in the company at an average price of ₹923.63 per share.
The company previously acquired a 1.04% stake in the company for ₹940 per share.
TCNS Clothing Company fell 0.1% to ₹572.85, and mutual funds controlled by Religare Invesco, Edelweiss, and Invesco acquired about 3.2% stake in the company from funds controlled by Morgan Stanley Asia, Nomura Asia, and Setu Securities.
Lemon Tree Hotels increased 1.2% to ₹134.29, and the company plans to open a hotel in Ujjain, Madhya Pradesh, with 72 rooms and other facilities in the financial year 2027.
VLS Finance added 0.7% to₹374.15, and the company announced a 33 lakh stock buyback plan at a price of₹380 per share, totaling ₹125.4 crore.
Global Tech Rally On Hold as Investors Anticipate Another Stellar Quarter from Nvidia
Alexander Garcia
28 Aug, 2024
Miami
Market indexes turned lower after struggling to advance in the morning as investors turned cautious ahead of the widely anticipated earnings results from artificial intelligence leader Nvidia Corp.
Tech and semiconductor stocks were in focus for the third consecutive day, and Nvidia Corp. is scheduled to release its quarterly results after the close of regular trading hours today.
Semiconductor equipment and technology stocks traded sideways ahead of Nvidia's earnings, and the company is seen as a bellwether for artificial intelligence-related spending by Microsoft, Amazon, Meta Platforms, and Alphabet and other leading tech companies.
Investors are looking for clues about the company's progress in holding its leadership position in artificial intelligence technology, revenue growth outlook, and development of new higher-margin products.
Nvidia's line of advanced semiconductor products has gained a solid following among leading tech companies to enable their artificial intelligence-based applications.
Nvidia's revenues have surged multi-fold over the last three years as tech companies escalate deployment of AI-enabled applications, fueling a wild run on the stock.
Nvidia's stock has soared 155% in the year so far and jumped 1,000% over the last three years, driven by stellar performance and strong interest from tech investors around the world.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.5% to 5,596.07, the Nasdaq Composite fell 0.9% to 17,592.80, and the Russell 2000 index declined 0.3% to 2,196.18.
The yield on 2-year Treasury notes edged lower to 3.87%, 10-year Treasury notes decreased to 3.82%, and 30-year Treasury bonds inched lower to 4.12%.
WTI crude oil decreased $0.45 to $75.06 a barrel, and natural gas prices edged up 3 cents to $2.12 a thermal unit.
Gold fell by $23.95 to $2,499.22 an ounce, and silver increased by $0.79 to $29.22.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.10.
U.S. Stock Movers
Nordstrom increased 4.5% to $22.11, and the luxury apparel and accessories retailer reported better-than-estimated second-quarter revenue and earnings.
The retailer also lifted its annual sales outlook despite the macroeconomic uncertainty.
PVH Corp. dropped 7.8% to $22.11, and the apparel manufacturer reported revenue that matched analysts' expectations, but the company's current quarter outlook disappointed investors.
Berkshire Hathaway Class B increased 1% to $465.56, and the company said it sold 24.7 million shares of Bank of America and extended its sale to $5 billion over the last two months.
Berkshire's share in Bank of America dropped to 11.6% after the latest sale.
Abercrombie & Fitch declined 4.5% to $141.87 despite the specialty apparel retailer reporting higher sales and earnings in its fiscal second quarter and the company lifting its annual outlook.
Revenue increased 21% to $1.1 billion, net income soared to $133 million from $57 million, and earnings per share advanced to $2.50 from $1.10 a year ago.
The company revised its full-year sales to increase between 12% and 13%, from the previous estimate of an increase of 10%.
Foot Locker plunged 15.3% to $27.77, and the footwear retailer reported better-than-expected sales and smaller-than-expected loss in the latest quarter.
Revenue in the latest quarter increased 1.9% to $1.89 billion from $1.86 billion, net loss expanded to $12 million from $5 million, and diluted loss per share rose to 13 cents from 5 cents a year earlier.
Comparable sales in the latest quarter increased 2.6%, driven by global Foot Locker and Kinds Foot Locker sales rise of 5.2%.
European Markets Attempt to Extend Weekly Gains
Stock market indexes in the Euro Area advanced amid caution ahead of inflation data in the region and retail sales updates in Spain.
Semiconductor equipment makers were in focus ahead of widely anticipated earnings from artificial intelligence leader Nvidia Corp.
Benchmark indexes in Frankfurt and Paris advanced more than 0.5%, but leading indexes in London lacked direction in Wednesday's trading.
Nvidia, widely seen as a bellwether for artificial intelligence investment by key technology companies, has soared more than 160% in the year so far and 1,000% in the last three years.
The advanced chip designer's revenue has jumped more than 80% for eight quarters in a row, and investors are hoping for similar revenue growth in the current quarter.
Semiconductor equipment could turn volatile if the company misses elevated revenue and earnings expectations set by global tech investors.
Eurozone Lending Growth Accelerates to 8-Month High
The Euro Area's bank lending to households increased 0.5% to €6.883 trillion, accelerating from a 0.3% increase in the previous month, the European Central Bank reported Wednesday.
In addition, lending to private corporations increased 0.6% to €5.14 trillion, and overall private sector lending, including non-financial corporations and households, picked up to 1.3% from 1.1% in the previous month.
Europe Indexes and Yields
The DAX index increased by 0.5% to 18,782.29; the CAC-40 index rose by 0.2% to 7,577.67; and the FTSE 100 index fell by 0.02% to 8,343.85.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched down to 2.96%, the UK gilts edged down to 3.94%, and Italian bonds decreased to 3.61%.
The euro edged down to $1.12; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.65 Swiss cents.
Brent crude decreased $0.38 to $79.18 a barrel, and the Dutch TTF natural gas rose by €0.39 to €38.32 per MWh.
Europe Stock Movers
Mining companies retreated after copper prices fell from a five-week high of $4.20 per pound amid a weak China demand growth outlook.
BHP Group slashed its imminent China group outlook but held out for higher prices, citing a prolonged global supply deficit.
Antofagasta decreased 4.3% to 1,828.28 pence, Anglo American declined 1.8% to 2,239.0 pence, Glencore PLC dropped 1.8% to 403.15 pence, and BHP Group fell 1.5% to 2,064.0 pence.
Hochschild Mining Plc declined 5.6% to 182.40 pence despite the precious metal mining company reporting strong first-half results on higher output and realized prices.
Oil and natural gas exploration companies traded down following the decline in crude oil prices after tensions in the Middle East eased, but the prospect of a wider war remains elevated.
BP Plc declined 0.9% to 428.20 pence, Shell PLC dropped 1.5% to 2,685.0, TotalEnergies SE dropped 0.4% to €62.48, and Repsol SA fell 1.3% to €12.48.
Elekta AB increased 3.5% to SEK 71.45, and the Swedish radiation therapy company reported strong fiscal first-quarter results.
LEG Immobilien SE fell 1.7% to €86.12 after the German real estate company launched a €500 million senior unsecured convertible bond offering due in 2030.
The company intends to use proceeds to repay debt and for general corporate expenses.
Japan's Indexes Closed Up In Lackluster Trading; Retailers and Shipping Companies Extended Losses
Benchmark indexes in Tokyo bounced around the flatline as tech stocks traded in a tight range ahead of Nvidia Corp.'s earnings.
The Nikkei 225 and the Topix index gained more than 0.1% near the close of the trading session, as semiconductor equipment stocks were in focus.
Nvidia Corp. is set to release its quarterly results after the close of regular trading in New York later today.
The advanced semiconductor chip design company has led the surge in artificial intelligence-linked stocks over the last two years and is a key indicator of demand for artificial intelligence chips and servers.
Nvidia is expected to earn between 64 cents and 71 cents per share in its latest quarter, significantly higher than 25 cents in the corresponding period a year earlier.
Revenue in the quarter is expected to soar to $28.68 billion from $13.51 billion a year earlier.
Nvidia sales have been on a tear, and the company has benefited from its leadership positioning in the market and accelerated its quarterly sales growth between 80% and 100% for eight quarters in a row.
Nvidia's quarterly earnings per share over the last five quarters have also exceeded between 5 cents and 6 cents from the consensus earnings estimates of analysts.
The yen weakened by 0.55 yen to 144.54 against the U.S. dollar as traders continued to debate the future rate path and likelihood of a rate hike at the end of the Bank of Japan's next policy meeting on September 20.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.1% to 38,333.50, and the Topix index advanced 0.3% to 2,687.92.
Tech companies, retailers, financial services providers, and industrial companies were in focus.
Advantest, Tokyo Electron, Lasertec, and Screen Holdings traded in a tight range and managed to bounce back and close up as much as 4% from early morning losses.
Isetan Mitsukoshi, Seven & I, Fast Retailing, Aeon Co., and Takashimaya declined between 0.3% and 0.7%.
Sumitomo Mitsui Financial declined 0.3%, and Mitsubishi UFJ and Mizuho Financial traded in a tight range and eased 0.3% in active trading.
Toyota Motor and Honda Motor jumped about 2%, Nissan Motor declined 0.3%, and Subaru Corp. gained 0.4%.
Ocean freight shipping companies extended losses for the second week in a row amid rising violence in the Middle East that could force shipping companies to seek alternative longer routes to Europe.
Mitsui OSK Lines declined 0.5% to ¥5,069.0, Nippon Yusen KK decreased 0.2% to ¥5,077.0, and Kawasaki Kisen Kaisa dropped 0.5% to ¥2,064.0.
China Stocks Extended Weekly Losses; Anta Sports Announced Stock Buyback Plan
Investors avoided high-flying tech stocks in China ahead of an earnings report from a leading artificial intelligence company.
Benchmark indexes in Hong Kong dropped 1% amid weakness in tech stocks as tech investors around the world await the release of earnings from Nvidia Corp. in the evening in New York on Wednesday.
Market sentiment remained weak in Shanghai and Shenzhen amid fragile economic recovery and weak investor and consumer sentiment with no near-term catalysts.
Earnings so far in China have been mixed, and most companies have surpassed market expectations, but a weak second-half outlook has kept investors on the sidelines.
Moreover, investors are not committing new capital to recently beaten-down stocks after four straight years of losses. 33.7
China Stock Movers
The Hang Seng index fell 1% to 17,706.57, and the CSI 300 index dropped 0.7% to 3,281.29.
JD.com and Anta Sports traded higher after the two companies announced stock buyback plans.
JD.com increased 1.3% to HK $103.0 after the company launched a $5 billion stock buyback plan to be completed by September 2027.
Anta Sports Products increased 4.5% to HK $74.90, and the company said it plans to buyback up to $1.3 billion or HK $10.6 billion of its stock over the next 18 months.
The company reported sales in the first half increased 13.8% to 33.7 billion yuan, and net profit jumped 62.6% to 7.7 billion yuan.
The supplier of podium uniforms to Chinese athletes in the Paris Olympics 2024 saw a 25.1% surge in its online sales in the period, increasing its contribution to overall sales to 33.8% from 30.8% in the year ago period.
The company increased its interim dividend by 44% to HK $1.18 from 82 HK cents per share a year earlier.
Nongfu Spring dropped 11.3% to HK $26.80 after the company reported weaker-than-expected earnings in the first-half period.
Investors dumped the stock after earnings rose at the slowest pace in the period since the company's listing in 2020.
SMIC decreased 0.5% to HK $16.32, SenseTime Group fell 5% to HK $1.12, and Kuaishou Technology dropped 1.8% to HK $39.30.
U.S. Movers: Abercrombie & Fitch, Berkshire Hathaway, Foot Locker, Nordstrom, PVH Corp.
Scott Peters
28 Aug, 2024
New York City
Nordstrom increased 4.5% to $22.11, and the luxury apparel and accessories retailer reported better-than-estimated second-quarter revenue and earnings.
The retailer also lifted its annual sales outlook despite the macroeconomic uncertainty.
PVH Corp. dropped 7.8% to $22.11, and the apparel manufacturer reported revenue that matched analysts' expectations, but the company's current quarter outlook disappointed investors.
Berkshire Hathaway Class B increased 1% to $465.56, and the company said it sold 24.7 million shares of Bank of America and extended its sale to $5 billion over the last two months.
Berkshire's share in Bank of America dropped to 11.6% after the latest sale.
Abercrombie & Fitch declined 4.5% to $141.87 despite the specialty apparel retailer reporting higher sales and earnings in its fiscal second quarter and the company lifting its annual outlook.
Revenue increased 21% to $1.1 billion, net income soared to $133 million from $57 million, and earnings per share advanced to $2.50 from $1.10 a year ago.
The company revised its full-year sales to increase between 12% and 13%, from the previous estimate of an increase of 10%.
Foot Locker plunged 15.3% to $27.77, and the footwear retailer reported better-than-expected sales and smaller-than-expected loss in the latest quarter, but the weak outlook weighed on the stock.
Revenue in the latest quarter increased 1.9% to $1.89 billion from $1.86 billion, net loss expanded to $12 million from $5 million, and diluted loss per share rose to 13 cents from 5 cents a year earlier.
Comparable sales in the latest quarter increased 2.6%, driven by global Foot Locker and Kids Foot Locker sales rise of 5.2%.
Wall Street Indexes Trade Around Flatline and Treasury Yields Retain Downward Bias
Barry Adams
28 Aug, 2024
New York City
Benchmark indexes traded in a tight range in early trading as investors reacted to corporate results in the absence of economic news.
Tech and semiconductor stocks were in focus for the third consecutive day ahead of Nvidia Corp.'s results after the close of regular trading hours today.
Investors are looking for clues about the company's progress in holding its leadership position in artificial intelligence technology, revenue growth outlook, and new higher-margin products in the coming weeks.
Semiconductor equipment and technology stocks traded sideways ahead of Nvidia's earnings, and the company is seen as a bellwether for artificial intelligence-related spending by Microsoft, Amazon, and Alphabet.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.03% to 5,621.23, the Nasdaq Composite fell 0.5% to 17,673.30, and the Russell 2000 index declined 0.3% to 2,196.18.
The yield on 2-year Treasury notes edged lower to 3.87%, 10-year Treasury notes decreased to 3.82%, and 30-year Treasury bonds inched lower to 4.12%.
WTI crude oil decreased $1.03 to $74.46 a barrel, and natural gas prices edged down 2 cents to $2.06 a thermal unit.
Gold fell by $26.30 to $2,499.22 an ounce, and silver increased by $0.71 to $29.30.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.10.
U.S. Stock Movers
Nordstrom increased 4.5% to $22.11, and the luxury apparel and accessories retailer reported better-than-estimated second-quarter revenue and earnings.
The retailer also lifted its annual sales outlook despite the macroeconomic uncertainty.
PVH Corp. dropped 7.8% to $22.11, and the apparel manufacturer reported revenue that matched analysts' expectations, but the company's current quarter outlook disappointed investors.
Berkshire Hathaway Class B increased 1% to $465.56, and the company said it sold 24.7 million shares of Bank of America and extended its sale to $5 billion over the last two months.
Berkshire's share in Bank of America dropped to 11.6% after the latest sale.
Abercrombie & Fitch declined 4.5% to $141.87 despite the specialty apparel retailer reporting higher sales and earnings in its fiscal second quarter and the company lifting its annual outlook.
Revenue increased 21% to $1.1 billion, net income soared to $133 million from $57 million, and earnings per share advanced to $2.50 from $1.10 a year ago.
The company revised its full-year sales to increase between 12% and 13%, from the previous estimate of an increase of 10%.
Foot Locker plunged 15.3% to $27.77, and the footwear retailer reported better-than-expected sales and smaller-than-expected loss in the latest quarter.
Revenue in the latest quarter increased 1.9% to $1.89 billion from $1.86 billion, net loss expanded to $12 million from $5 million, and diluted loss per share rose to 13 cents from 5 cents a year earlier.
Comparable sales in the latest quarter increased 2.6%, driven by global Foot Locker and Kinds Foot Locker sales rise of 5.2%.
Europe Movers: BHP Group, Elekta, LEG Immobilien, Hochschild, Mining Stocks, Oil Stocks
Inga Muller
28 Aug, 2024
Frankfurt
Market indexes in the Euro Area traded higher ahead of the inflation reports later in the week.
Semiconductor equipment makers were in focus ahead of Nvidia's quarterly results later today for clues regarding direction of spending by leading tech companies.
The DAX index increased by 0.8% to 18,831.22; the CAC-40 index rose by 0.5% to 7,603.56; and the FTSE 100 index fell by 0.1% to 8,336.07.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched down to 2.96%, the UK gilts edged down to 3.94%, and Italian bonds decreased to 3.61%.
Mining companies retreated after copper prices fell from a five-week high of $4.20 per pound amid a weak China demand growth outlook.
BHP Group slashed its imminent China group outlook but held out for higher prices, citing a prolonged global supply deficit.
Antofagasta decreased 4.3% to 1,828.28 pence, Anglo American declined 1.8% to 2,239.0 pence, Glencore PLC dropped 1.8% to 403.15 pence, and BHP Group fell 1.5% to 2,064.0 pence.
Hochschild Mining Plc declined 5.6% to 182.40 pence despite the precious metal mining company reporting strong first-half results on higher output and realized prices.
Oil and natural gas exploration companies traded down following the decline in crude oil prices after tensions in the Middle East eased, but the prospect of a wider war remains elevated.
BP Plc declined 0.9% to 428.20 pence, Shell PLC dropped 1.5% to 2,685.0, TotalEnergies SE dropped 0.4% to €62.48, and Repsol SA fell 1.3% to €12.48.
Elekta AB increased 3.5% to SEK 71.45, and the Swedish radiation therapy company reported strong fiscal first-quarter results.
LEG Immobilien SE fell 1.7% to €86.12 after the German real estate company launched a €500 million senior unsecured convertible bond offering due in 2030.
The company intends to use proceeds to repay debt and for general corporate expenses.
European Markets Attempt to Extend Weekly Gains, Eurozone Lending Growth Accelerates to 8-Month High
Bridgette Randall
28 Aug, 2024
London
Stock market indexes in the Euro Area advanced amid caution ahead of inflation data in the region and retail sales updates in Spain.
Semiconductor equipment makers were in focus ahead of widely anticipated earnings from artificial intelligence leader Nvidia Corp.
Benchmark indexes in Frankfurt and Paris advanced more than 0.5%, but leading indexes in London lacked direction in Wednesday's trading.
Nvidia, widely seen as a bellwether for artificial intelligence investment by key technology companies, has soared more than 160% in the year so far and 1,000% in the last three years.
The advanced chip designer's revenue has jumped more than 80% for eight quarters in a row, and investors are hoping for similar revenue growth in the current quarter.
Semiconductor equipment could turn volatile if the company misses elevated revenue and earnings expectations set by global tech investors.
On the economic front, the Euro Area's bank lending to households increased 0.5% to €6.883 trillion, accelerating from a 0.3% increase in the previous month, the European Central Bank reported Wednesday.
In addition, lending to private corporations increased 0.6% to €5.14 trillion, and overall private sector lending, including non-financial corporations and households, picked up to 1.3% from 1.1% in the previous month.
Europe Indexes and Yields
The DAX index increased by 0.8% to 18,831.22; the CAC-40 index rose by 0.5% to 7,603.56; and the FTSE 100 index fell by 0.1% to 8,336.07.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched down to 2.96%, the UK gilts edged down to 3.94%, and Italian bonds decreased to 3.61%.
The euro edged down to $1.12; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.65 Swiss cents.
Brent crude decreased $1.28 to $78.87 a barrel, and the Dutch TTF natural gas rose by €0.65 to €39.36 per MWh.
Europe Stock Movers
Mining companies retreated after copper prices fell from a five-week high of $4.20 per pound amid a weak China demand growth outlook.
BHP Group slashed its imminent China group outlook but held out for higher prices, citing a prolonged global supply deficit.
Antofagasta decreased 4.3% to 1,828.28 pence, Anglo American declined 1.8% to 2,239.0 pence, Glencore PLC dropped 1.8% to 403.15 pence, and BHP Group fell 1.5% to 2,064.0 pence.
Hochschild Mining Plc declined 5.6% to 182.40 pence despite the precious metal mining company reporting strong first-half results on higher output and realized prices.
Oil and natural gas exploration companies traded down following the decline in crude oil prices after tensions in the Middle East eased, but the prospect of a wider war remains elevated.
BP Plc declined 0.9% to 428.20 pence, Shell PLC dropped 1.5% to 2,685.0, TotalEnergies SE dropped 0.4% to €62.48, and Repsol SA fell 1.3% to €12.48.
Elekta AB increased 3.5% to SEK 71.45, and the Swedish radiation therapy company reported strong fiscal first-quarter results.
LEG Immobilien SE fell 1.7% to €86.12 after the German real estate company launched a €500 million senior unsecured convertible bond offering due in 2030.
The company intends to use proceeds to repay debt and for general corporate expenses.
Japan's Indexes Closed Up In Lackluster Trading; Retailers and Shipping Companies Extended Losses
Akira Ito
28 Aug, 2024
Tokyo
Benchmark indexes in Tokyo bounced around the flatline as tech stocks traded in a tight range ahead of Nvidia Corp.'s earnings.
The Nikkei 225 and the Topix index gained more than 0.1% near the close of the trading session, as semiconductor equipment stocks were in focus.
Nvidia Corp. is set to release its quarterly results after the close of regular trading in New York later today.
The advanced semiconductor chip design company has led the surge in artificial intelligence-linked stocks over the last two years and is a key indicator of demand for artificial intelligence chips and servers.
Nvidia is expected to earn between 64 cents and 71 cents per share in its latest quarter, significantly higher than 25 cents in the corresponding period a year earlier.
Revenue in the quarter is expected to soar to $28.68 billion from $13.51 billion a year earlier.
Nvidia sales have been on a tear, and the company has benefited from its leadership positioning in the market and accelerated its quarterly sales growth between 80% and 100% for eight quarters in a row.
Nvidia's quarterly earnings per share over the last five quarters have also exceeded between 5 cents and 6 cents from the consensus earnings estimates of analysts.
The yen weakened by 0.55 yen to 144.54 against the U.S. dollar as traders continued to debate the future rate path and likelihood of a rate hike at the end of the Bank of Japan's next policy meeting on September 20.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.1% to 38,333.50, and the Topix index advanced 0.3% to 2,687.92.
Tech companies, retailers, financial services providers, and industrial companies were in focus.
Advantest, Tokyo Electron, Lasertec, and Screen Holdings traded in a tight range and managed to bounce back and close up as much as 4% from early morning losses.
Isetan Mitsukoshi, Seven & I, Fast Retailing, Aeon Co., and Takashimaya declined between 0.3% and 0.7%.
Sumitomo Mitsui Financial declined 0.3%, and Mitsubishi UFJ and Mizuho Financial traded in a tight range and eased 0.3% in active trading.
Toyota Motor and Honda Motor jumped about 2%, Nissan Motor declined 0.3%, and Subaru Corp. gained 0.4%.
Ocean freight shipping companies extended losses for the second week in a row amid rising violence in the Middle East that could force shipping companies to seek alternative longer routes to Europe.
Mitsui OSK Lines declined 0.5% to ¥5,069.0, Nippon Yusen KK decreased 0.2% to ¥5,077.0, and Kawasaki Kisen Kaisa dropped 0.5% to ¥2,064.0.
China Stocks Extended Weekly Losses; Anta Sports Announced Stock Buyback Plan
Li Chen
28 Aug, 2024
Hong Kong
Investors avoided high-flying tech stocks in China ahead of an earnings report from a leading artificial intelligence company.
Benchmark indexes in Hong Kong dropped 1% amid weakness in tech stocks as tech investors around the world await the release of earnings from Nvidia Corp. in the evening in New York on Wednesday.
Market sentiment remained weak in Shanghai and Shenzhen amid fragile economic recovery and weak investor and consumer sentiment with no near-term catalysts.
Earnings so far in China have been mixed, and most companies have surpassed market expectations, but a weak second-half outlook has kept investors on the sidelines.
Moreover, investors are not committing new capital to recently beaten-down stocks after four straight years of losses. 33.7
China Stock Movers
The Hang Seng index fell 1% to 17,706.57, and the CSI 300 index dropped 0.7% to 3,281.29.
JD.com and Anta Sports traded higher after the two companies announced stock buyback plans.
JD.com increased 1.3% to HK $103.0 after the company launched a $5 billion stock buyback plan to be completed by September 2027.
Anta Sports Products increased 4.5% to HK $74.90, and the company said it plans to buyback up to $1.3 billion or HK $10.6 billion of its stock over the next 18 months.
The company reported sales in the first half increased 13.8% to 33.7 billion yuan, and net profit jumped 62.6% to 7.7 billion yuan.
The supplier of podium uniforms to Chinese athletes in the Paris Olympics 2024 saw a 25.1% surge in its online sales in the period, increasing its contribution to overall sales to 33.8% from 30.8% in the year ago period.
The company increased its interim dividend by 44% to HK $1.18 from 82 HK cents per share a year earlier.
Nongfu Spring dropped 11.3% to HK $26.80 after the company reported weaker-than-expected earnings in the first-half period.
Investors dumped the stock after earnings rose at the slowest pace in the period since the company's listing in 2020.
SMIC decreased 0.5% to HK $16.32, SenseTime Group fell 5% to HK $1.12, and Kuaishou Technology dropped 1.8% to HK $39.30.
India Movers: Aditya Birla Capital, Godrej Agrovet, Orient Technologies, PNC Infratech, UPL, SBI Cards
Arun Goswami
28 Aug, 2024
Mumbai
In cautious trading, stocks in Mumbai traded around the flatline. Crude oil prices turned lower in international markets after tensions eased in the Middle East for now.
Foreign investors stepped up their investment in domestic consumer-focused and financial stocks.
The Sensex index increased by 0.03% to 81,713.19, and the Nifty index rose 0.1% to 25,015.90.
On the Mumbai stock exchange, 139 stocks traded at their 52-week highs, and 8 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.85%, and the Indian rupee weakened to 83.93 against the U.S. dollar.
Aditya Birla Capital increased 0.5% to ₹224.09, and the company invested ₹300 crore into its subsidiary Aditya Birla Housing Finance.
PNC Infratech added 1.4% to ₹464.95, and the company won an order worth 380 crore from NHAI for building a bridge over the Ganga river connecting Buxar and Bharauli in Uttar Pradesh and Bihar.
Godrej Agrovet increased 0.8% to ₹797.05, and the company agreed to acquire the remaining 49% stake in its subsidiary Godrej Tyson Foods from Tyson India Holdings.
UPL decreased 1% to ₹576.90, and the chemical and fertilizer company agreed to acquire an additional stake of 20% in the Indonesia-based PT Excel Meg Indo for nearly $6.9 million.
After the acquisition by UPL Global, the company's subsidiary's stake will increase to 99.998%, and the remaining stake will be held by UPL Europe.
SBI Cards and Payment Services increased 0.1% to ₹737.30, and the company said its Chairman and Non-executive Director Dinesh Khara has resigned from August 27.
Orient Technologies is scheduled to list its shares on exchanges today after pricing its offering at 206 per share and raising as much as ₹215 crore.
U.S. and Global Markets Trade Sideways as Investors Anticipate Another Stellar Results from Nvidia
Alexander Garcia
27 Aug, 2024
Miami
Stocks traded around the flatline on Wall Street ahead of widely anticipated earnings from Nvidia, a bellwether for artificial intelligence-related tech stocks.
Market sentiment was cautiously optimistic as investors are hoping that Nvidia will deliver another quarter of a sharp increase in revenue and earnings amid rising acceptance of its hardware and software platforms for AI-related applications.
Nvidia is a key beneficiary of a sharp jump in capital spending by Amazon, Microsoft, Alphabet, and other leading tech companies developing artificial intelligence-linked applications.
Analysts are estimating the company to deliver between 64 cents and 71 cents per share in the latest quarter ending in July, sharply higher than 25 cents in the corresponding quarter a year earlier.
Revenue in the quarter is expected to soar to $28.68 billion from $13.51 billion a year earlier.
Nvidia sales have been on a tear, and the company has benefited from its leadership positioning in the market and accelerated its quarterly sales growth between 80% and 100% for eight quarters in a row.
Nvidia's quarterly earnings per share have also exceeded between 5 cents and 6 cents from the consensus earnings estimates of analysts.
On the economic front, home prices in metropolitan areas continued to rise, but at a slower pace in June, according to the S&P Core Logic Case-Shiller 20 city Composite Index.
The metropolitan home price index rose at an annual pace of 6.5% in June, following the upwardly revised 6.9% annual rate in the previous month.
Home prices are still rising in the largest metropolitan cities because people are still moving to these areas and wages are still rising at a faster pace than inflation.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.02% to 5,618.24, the Nasdaq Composite rose 0.04% to 17,728.97, and the Russell 2000 index declined 0.9% to 2,198.65.
The yield on 2-year Treasury notes edged higher to 3.96%, 10-year Treasury notes increased to 3.86%, and 30-year Treasury bonds inched higher to 4.16%.
WTI crude oil decreased $1.70 to $75.69 a barrel, and natural gas prices edged down 3 cents to $1.91 a thermal unit.
Gold fell by $1.74 to $2,513.64 an ounce, and silver increased by $0.06 to $29.92.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.81.
U.S. Stock Movers
Nvidia Corp. edged down 1.1% to $125.05, and investors are estimating that the company will deliver another quarter of strong revenue and earnings growth and surpass earnings per share expectations of 64 cents.
Cava Group declined 8.2% to $115.60 after several corporate insiders and a key investor disclosed their plans in regulatory filings to trim their holdings.
Apple Inc. decreased 0.8% after the company said chief financial officer Luca Maestri will step down on January 1, 2025, and be replaced by the current vice president for financial planning and analysis, Kaven Parekh.
Maestri will continue to lead a group responsible for real estate development, information technology systems, and security.
European Markets Brave Higher Despite Weak Economic Data
In cautious trading across Europe, stocks struggled to advance as investors reviewed the latest batch of economic updates on Tuesday.
Benchmark indexes in Frankfurt and Paris edged up 0.5%; in London, they advanced 0.3% after Germany's GDP in the second quarter shrank as expected.
Meanwhile, the hopes of a second-half economic recovery led by consumers in Germany got another hit after consumer morale weakened significantly.
The seasonally adjusted GDP in the second quarter contracted by 0.1% from the previous quarter and advanced by 0.3% from a year ago, the Federal Statistics Office, or Destatis, reported Tuesday.
As initially estimated, weak household spending and investment negatively impacted activities in the second quarter, following a 0.2% rise in the first quarter.
German Consumer Sentiment Index Weakened
Overall consumer spending was stable compared to the previous quarter, increasing slightly by 0.1% after adjusting for price, seasonal, and calendar effects.
Private consumption decreased by 0.2% after increasing at the beginning of the year; however, government spending rose significantly by 1.0%.
German consumer morale is expected to weaken in September as fears of mounting job losses, rising insolvencies, and weakening economic activities weigh.
The forward-looking consumer sentiment index dropped to -22.0 from -18.6 in August, according to a joint survey published by GfK and Nuremberg Institute for Market Decisions on Tuesday.
UK Shop Prices Eased In August
UK shop prices eased for the first time in nearly three years in August, according to data released by the British Retail Consortium on Tuesday.
The shop price index dropped 0.3% in August, reversing the 0.2% increase in July, after retailers enlarged discounts to clear summer stocks and pushed down overall non-food prices.
Europe Indexes and Yields
The DAX index increased by 0.4% to 18,681.81; the CAC-40 index fell by 0.3% to 7,565.78; and the FTSE 100 index advanced by 0.2% to 8,345.46.
The yield on 10-year German bonds edged higher to 2.28%, French bonds inched up to 3.01%, the UK gilts edged higher to 3.98%, and Italian bonds increased to 3.67%.
The euro edged down to $1.12; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.65 Swiss cents.
Brent crude decreased $1.63 to $79.79 a barrel, and the Dutch TTF natural gas fell by €0.95 to €38.70 per MWh.
Europe Stock Movers
Flughafen Zurich AG decreased after the Swiss airport operator reported weaker-than-expected first-half results.
Sandvik AB decreased 0.2% to DKK 214.0, and the Swedish engineering company agreed to acquire Universal Field Robots.
Mining companies advanced in London after copper futures prices advanced to a six-week high in the hopes of a rate cut by the U.S. Federal Reserve next week.
Antofagasta increased 1.3% to 1,901.50 pence, Anglo American increased 2.3% to 2,302.50 pence, and Glencore added 0.4% to 412.80 pence.
Rheinmetall AG decreased 0.4% to €532.80, and the arms and automotive company said it won an order to build exhaust gas recirculation valves for a "renowned car manufacturer."
Bunzl plc jumped 7% to 3,440.0 pence and traded at a new record high after the diversified distribution and outsourcing group reported better-than-expected first-half results and announced a stock buyback plan.
Revenue in the first half decreased 3.3% to £5.7 billion from £5.9 billion; pre-tax profit dropped 11.9% to £279.4 million from £317.1 million; and earnings per share fell 16.4% to 59.2 pence from 70.8 pence a year ago.
The company also launched a £250 million stock repurchase plan to be completed before March 3, 2025.
The diversified conglomerate increased its interim dividend by 10.4% to 21.1 pence from 18.2 pence a year earlier.
Japan's Nikkei Rebounds Following the Yen's Decline Ahead of Key Economic Updates
Market indexes in Tokyo rebounded following a pullback in the yen.
The Nikkei 225 gained 0.5% and the broader Topix index increased 0.7% in Tuesday's trading and erased losses from the previous session after the yen edged slightly lower.
Stocks have lacked direction and danced around following the volatility in the yen amid rate path uncertainty and ongoing anxieties about the appropriate level of the currency.
Investors are hoping the yen will be less volatile in the months ahead if the U.S. Federal Reserve embarks on its rate-cut cycle while the Bank of Japan lifts its rates higher.
The moves in the opposite direction by two central banks would accelerate the unwinding of the yen carry trade, lowering yen volatility and stabilizing market sentiment.
Japan Stock Movers
The Nikkei 225 Stocks Average rose 0.5% to 38,288.62, and the Topix index advanced 0.7% to 2,680.80.
Semiconductor equipment makers were in focus ahead of the release of Nvidia's earnings after the close on Wednesday in New York.
Tokyo Electron, Advantest, Lasertec, Disco Corp., and Screen Holdings decreased between 0.5% and 4.5%.
Export-driven stocks closed higher after the yen edged lower but traded in a tight range and stabilized.
Toyota Motor added 1.8% to ¥2,644.0, Honda Motor gained 1.8% to ¥1,561.0, and Nissan Motor increased 1.7% to ¥430.50.
Retailers were in focus for the second week in a row as foreign tourists took advantage of the weak yen and drove retail sales higher at department stores and luxury boutiques.
Isetan Mitsukoshi added 0.5% to ¥2,187.50, Seven & I jumped 4.2% to ¥2,122.0, Fast Retailing Co jumped 0.6% to ¥46,620.0, Aeon Co fell 0.7% to ¥3,743.0, and Nitori Holdings declined 0.2% to ¥22,340.0.
China Indexes Extend Losses; PDD Holdings, Trip.com, and Petro China in Focus
Stocks in China faced selling pressure amid ongoing worries about weak economic growth and earnings outlooks.
Benchmark indexes in Hong Kong edged lower by 0.2%, and in mainland China, they declined by 0.3%.
Stocks faced selling pressure after the parent company of Temu, PDD Holdings, said the current rate of sales growth is unsustainable and lowered its earnings outlook.
Last week, Walmart sold its stake in JD.com at a discount of $3.6 billion and ended its 8-year-long partnership.
Investors have been selling stocks in Hong Kong after a reversal in sentiment amid a growing worry about an earnings slowdown.
Moreover, investors in China have been allocating new capital to luxury residences in Shanghai and Beijing as property values continue to appreciate in top-tier cities, seeking safety in Chinese government bonds, and investing in ETFs focused on Japanese and U.S. stocks.
China Stock Movers
The Hang Seng index decreased 0.2% to 17,835.44, and the CSI 300 index fell 0.6% to 3,304.46.
PDD Holdings dropped 29% to $98.70 after the parent company of China-based Temu lowered its revenue and earnings growth expectations for the current quarter amid intensifying competition and the need for higher capital expenditure on new projects.
Revenue rose 86% to $13.4 billion, or 97.1 billion yuan, and adjusted earnings per ADS rose to $3.20, or 23.24 yuan, from 10.157 yuan a year ago.
Trip.com Group soared 9.4% to HK $366.40 after the dominant online travel platform reported better-than-expected second quarter revenue and earnings.
Revenue increased 13.% to 12.8 billion yuan from 11.2 billion yuan, and earnings rose to 3.83 billion yuan, or 5.57 yuan per share, compared to 0.63 billion yuan, or 0.94 per share, a year earlier.
Excluding items, the company reported adjusted earnings of 4.99 billion yuan, or 7.25 yuan per share, for the period.
PetroChina jumped 4.5% to HK $7.18, and the oil and natural gas exploration company reported record operating profit in the first half amid rising energy production.
Net income rose 3.9% to 88.6 billion yuan, or $12.6 billion, benefiting from higher international oil prices, but weak domestic demand kept processed crude oil production increasing to 3%, while refined crude production advanced only 2.1% from a year ago.
Jet fuel production soared 42% from a year ago, following a rebound in demand for air travel.