Market Update
U.S. Movers: 3M, Netflix, Charles Schwab, Interactive Brokers, United Airlines
Scott Peters
22 Jan, 2025
New York City
Charles Schwab Corp surged 6% to $80.98 after the investment services firm said fourth-quarter revenue increased 20% to $5.3 billion from a year ago.
Net income jumped 76% to $1.8 billion, or 94 cents a share, compared to $1.1 billion or 51 cents a share in the same quarter a year ago.
Total client assets increased 19% year-over-year to $10.10 trillion.
For the full-year 2024, revenue jumped 4% to $19.61 billion from $18.8 billion, net income surged 17% to $5.94 billion from $5.5 billion, and diluted earnings per share rose to $2.99 from $2.54 a year ago.
3M gained 4.8% to $147.84 after the industrial conglomerate said fourth-quarter revenue increased 1.5% to $6.07 billion from the same period last year.
Quarterly earnings came in at $1.33 per share, compared to $1.14 a share a year ago.
For the full year 2024, the company returned $3.8 billion to shareholders via dividends and share repurchases.
3M estimated fiscal 2025 adjusted sales to rise between 0.5% to 1.5%, and earnings per share in the range of $7.60 to $7.90.
Netflix gained 1.4% to $869.68 after the streaming services provider reported record client subscriptions in the fourth quarter.
Revenue increased by 16% to $10.25 billion from the same quarter a year ago.
Diluted earnings per share rose 102.4% to $4.27 from $2.11 a year ago.
The free cash flow declined 12.7% to $1.38 billion due to more investments in content and technology.
The company conducted stock buybacks amounting to $6.2 billion in the quarter.
A possible stock split announcement may help Netflix to push out an increase in its service prices.
Looking ahead for fiscal year 2025, Netflix anticipated revenue between $43.5 billion and $44.5 billion, indicating an increase of 12% to 14%.
Interactive Brokers Group added 1.4% to $192.83 after the global electronic broker reported steady fourth-quarter results.
Revenue reached $1.4 billion, compared to $1.2 billion in the same quarter in 2023.
Earnings per share rose to $1.99 from $1.48 in the year-ago period.
Reported income before taxes was $1,040 million for the current quarter, compared to $816 million a year ago.
Commission revenue increased 37% to $477 million as customer accounts grew 30% to 3.34 million.
United Airlines Holdings Inc surged 2.9% to $110.5 after the airline reported strong fourth-quarter financials.
Revenue increased 7.8% to $14.7 billion, net income soared 64.2% to $985 million from $600 million, and diluted earnings rose to $2.95 per share from $1.81 per share a year earlier.
Free cash flow clocked in at $549 million in the quarter, equivalent to a 3.7% margin.
U.S. Movers: 3M, Netflix, Charles Schwab, Interactive Brokers, United Airlines
Scott Peters
22 Jan, 2025
New York City
Charles Schwab Corp surged 6% to $80.98 after the investment services firm said fourth-quarter revenue increased 20% to $5.3 billion from a year ago.
Net income jumped 76% to $1.8 billion, or 94 cents a share, compared to $1.1 billion or 51 cents a share in the same quarter a year ago.
Total client assets increased 19% year-over-year to $10.10 trillion.
For the full-year 2024, revenue jumped 4% to $19.61 billion from $18.8 billion, net income surged 17% to $5.94 billion from $5.5 billion, and diluted earnings per share rose to $2.99 from $2.54 a year ago.
3M gained 4.8% to $147.84 after the industrial conglomerate said fourth-quarter revenue increased 1.5% to $6.07 billion from the same period last year.
Quarterly earnings came in at $1.33 per share, compared to $1.14 a share a year ago.
For the full year 2024, the company returned $3.8 billion to shareholders via dividends and share repurchases.
3M estimated fiscal 2025 adjusted sales to rise between 0.5% to 1.5%, and earnings per share in the range of $7.60 to $7.90.
Netflix gained 1.4% to $869.68 after the streaming services provider reported record client subscriptions in the fourth quarter.
Revenue increased by 16% to $10.25 billion from the same quarter a year ago.
Diluted earnings per share rose 102.4% to $4.27 from $2.11 a year ago.
The free cash flow declined 12.7% to $1.38 billion due to more investments in content and technology.
The company conducted stock buybacks amounting to $6.2 billion in the quarter.
A possible stock split announcement may help Netflix to push out an increase in its service prices.
Looking ahead for fiscal year 2025, Netflix anticipated revenue between $43.5 billion and $44.5 billion, indicating an increase of 12% to 14%.
Interactive Brokers Group added 1.4% to $192.83 after the global electronic broker reported steady fourth-quarter results.
Revenue reached $1.4 billion, compared to $1.2 billion in the same quarter in 2023.
Earnings per share rose to $1.99 from $1.48 in the year-ago period.
Reported income before taxes was $1,040 million for the current quarter, compared to $816 million a year ago.
Commission revenue increased 37% to $477 million as customer accounts grew 30% to 3.34 million.
United Airlines Holdings Inc surged 2.9% to $110.5 after the airline reported strong fourth-quarter financials.
Revenue increased 7.8% to $14.7 billion, net income soared 64.2% to $985 million from $600 million, and diluted earnings rose to $2.95 per share from $1.81 per share a year earlier.
Free cash flow clocked in at $549 million in the quarter, equivalent to a 3.7% margin.
Big Business Optimism Extends Big Rally On Wall Street
Barry Adams
22 Jan, 2025
New York City
Stock market indexes on Wall Street approached or reached record highs amid growing optimism about the weakening of the regulatory regime for big businesses.
The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.4% after stocks in the energy, technology, and banking sectors continued to advance for the third month in a row.
Strong economic growth data and labor market conditions have supported the market advance over the last six weeks.
Moreover, the optimism about the possible changes in the regulatory framework for big companies in the technology, energy sectors, and financial services has also contributed to the current market enthusiasm.
U.S. Indexes and Treasury Yields
The S&P 500 indexed increased 0.5% to 6,079.14, the Nasdaq Composite rose 1% to 19,952.92, and the Russell 2000 index edged up by 1.8% to 2,317.97.
The yield on 2-year Treasury notes edged higher to 4.28%, 10-year Treasury notes increased to 4.58%, and 30-year Treasury bonds declined to 4.80%.
WTI crude oil increased $0.35 to $75.55 a barrel, and natural gas prices edged down $0.01 to $3.79 a thermal unit.
Gold increased by $12.89 to 2,757.43 an ounce, and silver rose by $0.04 to $30.78.
The dollar index, which weighs the US currency against a basket of foreign currencies, increased by 0.10 to 108.07 and traded at a two-year high.
U.S. Stock Movers
United Airlines jumped 5.6% to $116.70 after the company reported better-than-expected results for the fourth quarter.
Procter & Gamble jumped 3.3% to $167.10 after the consumer goods company reported better-than-expected fiscal second quarter results.
The company also reiterated its annual earnings outlook.
Netflix soared 14.5% to $996.01 after the streaming media company reported better-than-expected revenue and earnings in the fourth quarter and increased paid membership to 300 million.
The company also raised its revenue outlook for 2025.
Halliburton decreased 1.9% to $29.10 after the energy company reported weaker-than-expected revenue in its latest quarter.
Charles Schwab edged slightly lower to $80.83 and the company reported better-than-expected fourth-quarter results a day ago.
Big Business Optimism Extends Big Rally On Wall Street
Barry Adams
22 Jan, 2025
New York City
Stock market indexes on Wall Street approached or reached record highs amid growing optimism about the weakening of the regulatory regime for big businesses.
The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.4% after stocks in the energy, technology, and banking sectors continued to advance for the third month in a row.
Strong economic growth data and labor market conditions have supported the market advance over the last six weeks.
Moreover, the optimism about the possible changes in the regulatory framework for big companies in the technology, energy sectors, and financial services has also contributed to the current market enthusiasm.
U.S. Stock Movers
United Airlines jumped 5.6% to $116.70 after the company reported better-than-expected results for the fourth quarter.
Procter & Gamble jumped 3.3% to $167.10 after the consumer goods company reported better-than-expected fiscal second quarter results.
The company also reiterated its annual earnings outlook.
Netflix soared 14.5% to $996.01 after the streaming media company reported better-than-expected revenue and earnings in the fourth quarter and increased paid membership to 300 million.
The company also raised its revenue outlook for 2025.
Halliburton decreased 1.9% to $29.10 after the energy company reported weaker-than-expected revenue in its latest quarter.
Charles Schwab edged slightly lower to $80.83 and the company reported better-than-expected fourth-quarter results a day ago.
Europe Movers: Adidas, Alstom, Barry Callebaut, EasyJet, Porsche, Renault, Schaeffler
Inga Muller
22 Jan, 2025
Frankfurt
European markets extended weekly gains ahead of the widely expected rate cut decisions next week, and the euro and the bond yields in the eurozone edged lower ahead of the expected rate cuts next week.
The DAX index moved higher by 1.02% to 21,256.10; the CAC-40 index jumped 0.67% to 7,823.06; and the FTSE 100 index rose by 0.38% to 8,580.43.
The yield on 10-year German bonds inched lower to 2.48%, French bonds eased to 3.25%, the UK gilts declined to 4.60%, and Italian bonds edged lower to 3.57%.
Adidas Group gained 6.5% to €259.20 after the German sportswear company reported a surge in fourth-quarter sales and swung to a profit from a loss a year ago.
The German sportswear company reported a 24% increase in fourth-quarter revenue to €5.97 billion.
The company's operating income swung to a profit of €57 million from a loss of €377 million last year.
Adidas said it will post fiscal 2024 audited statements and 2025 guidance on March 5.
In a preliminary report on its website, the company said full-year 2024 revenue increased 11% to €23.68 billion, while profit increased by more than €1 billion to €1.34 billion.
Schaeffler AG plunged 12.4% to €3.97 after the German car parts supplier said fiscal year 2024 results fell short of the company's estimates.
The German automobile parts maker said fiscal year 2024 sales increased to €18.2 billion from €16.3 billion in 2023, but the result is short of the company’s previous guidance and consensus expectations.
Barry Callebaut AG slumped 6% to CHF 1,083 as the Swiss-Belgian chocolate maker and cocoa processor expects annual sales volume to fall by a low single-digit percentage, after previously forecasting flat cocoa sales volume for the year.
In the three months ended November 30, the company’s revenue reached CHF 3.45 billion, or $3.81 billion, an increase of 63.1% in local currencies from the same period in 2023.
EasyJet Plc dropped 4.4% to 488.89 pence after the UK-based discount airline posted a slight decline in losses in the fiscal first quarter despite an increase of 7% in passenger count.
Despite passenger growth of 7%, the company lost £61 million before tax, which is an improvement of £65 million from a year ago.
The current winter operational difficulties are expected to be adjusted for the timing of Easter, helped also by favorable fuel prices.
Passenger revenue was up by 11% to £1,255 million, while holiday revenue surged by 36% to £247 million.
The company registered 21.2 million passengers in the quarter, up from 19.8 million a year earlier.
Six new A320neo family aircraft were delivered and taken into ownership; a seventh aircraft was delivered in January, and another two are expected to be operational by peak summer.
Alstom fell 0.5% to €20.71 despite the French railroad engineering company achieving an 8% increase in new orders totaling €4.3 billion in the latest quarter.
The French railroad engineering company achieved strong third-quarter growth with €4.3 billion in new orders and €4.7 billion in sales, marking a 7.9% increase compared to the previous year.
Rolling stock production output totaled 1,098 cars in the third quarter and 3,101 cars for the nine months from April to December.
Despite supply chain challenges, the company is "confident about its fiscal year" due to a strong backlog of €94.7 billion and ongoing operational efficiencies.
Porsche Automobil Holding SE added 0.3% to €37.11 after the German sports car maker reiterated its profit margin range between 14% and 15% while working to reduce its footprint in China.
The company expects sales volume to decline this year because of the withdrawal of the combustion-engine Macan and 718 from the European Union from the end of June, as well as possible further supply chain issues for the 911 model.
Porsche will post financial results on March 12.
Renault SA traded unchanged at €48.17 after the French carmaker named Duncan Minto as its new chief financial officer, elevating the executive who has overseen finances at its Alpine sports-car brand since October 2023.
Alpine’s growth has helped the French vehicle maker stand out from its competitors, many of which issued profit warnings last year.
Renault is facing challenges in relation to weaker demand for electric vehicles, supply chain disruptions, and a slump in China sales that have hit the industry.
Intermediate Capital Group Plc gained 6% to 2,252 pence after the London-based private equity investment firm said third-quarter assets under management increased 27.5% to $106.6 billion at constant currency from a year ago.
The company raised $7.2 billion in the third quarter and $22 billion over the past year, doubling from a year ago.
Europe Movers: Adidas, Alstom, Barry Callebaut, EasyJet, Porsche, Renault, Schaeffler
Inga Muller
22 Jan, 2025
Frankfurt
European markets extended weekly gains ahead of the widely expected rate cut decisions next week.
The euro and the bond yields in the eurozone edged lower ahead of the expected rate cuts next week.
The DAX index moved higher by 1.02% to 21,256.10; the CAC-40 index jumped 0.67% to 7,823.06; and the FTSE 100 index rose by 0.38% to 8,580.43.
The yield on 10-year German bonds inched lower to 2.48%, French bonds eased to 3.25%, the UK gilts declined to 4.60%, and Italian bonds edged lower to 3.57%.
Adidas Group gained 6.5% to €259.20 after the German sportswear company reported a surge in fourth-quarter sales and swung to a profit from a loss a year ago.
The German sportswear company reported a 24% increase in fourth-quarter revenue to €5.97 billion.
The company's operating income swung to a profit of €57 million from a loss of €377 million last year.
Adidas said it will post fiscal 2024 audited statements and 2025 guidance on March 5.
In a preliminary report on its website, the company said full year 2024 revenue increased 11% to €23.68 billion, while proft increased by more than €1 billion to €1.34 billion.
Schaeffler AG plunged 12.4% to €3.97 after the German car-parts supplier said fiscal year 2024 results fell short of company's estimates.
The German automobile parts maker said fiscal year 2024 sales increased to €18.2 billion from €16.3 billion in 2023, but the result is short of the company’s previous guidance and consensus expectations.
Barry Callebaut AG slumped 6% to CHF1.08 as the Swiss-Belgian chocolate maker and cocoa processor expects annual sales volume to fall by a low single-digit percentage, after previously forecasting flat cocoa sales volume for the year.
In the three months ended November 30, the company’s revenue reached CHF3.45 billion or $3.81 billion, an increase of 63.1% in local currencies from the same period in 2023.
EasyJet Plc dropped 4.4% to £488.89 pence after the UK-based discount airline posted a slight decline in losses in the fiscal first quarter despite an increase of 7% in passenger count.
Despite passenger growth of 7%, the company lost £61 million before tax, which is an improvement of £65 million from a year ago.
The current winter operational difficulties are expected to be adjusted for the timing of Easter, helped also by favorable fuel prices.
Passenger revenue was up by 11% to £1,255 million, while holiday revenue surged by 36% to £247 million.
The company registered 21.2 million passengers in the quarter, up from 19.8 million a year earlier.
Six new A320neo family aircraft were delivered and taken into ownership, a seventh aircraft was delivered in January and another two are expected to be operational by peak summer.
Alstom fell 0.5% to €20.71 despite the French railroad engineering company achieved 8% increase in new orders totaling €4.3 billion in the latest quarter.
The French railroad engineering company achieved strong third-quarter growth with €4.3 billion in new orders and €4.7 billion in sales, marking a 7.9% increase compared to the previous year.
Rolling stock production output totaled 1,098 cars in the third quarter and 3,101 cars for the nine months from April to December.
Despite supply chain challenges, the company is "confident about its fiscal year" due to a strong backlog of €94.7 billion and ongoing operational efficiencies.
Porsche Automobil Holding SE added 0.3% to €37.11 after the German sports car maker reiterated its profit margin range between 14% and 15% while working to reduce its footprint in China.
The company expects sales volume to decline this year because of the withdrawal of the combustion-engine Macan and 718 from the European Union from the end of June, as well as possible further supply chain issues for the 911 model.
Porsche will post financial results on March 12.
Renault SA traded unchanged at €48.17 after the French car maker named Duncan Minto as its new chief financial officer, elevating the executive who has overseen finances at its Alpine sports-car brand since October 2023.
Alpine’s growth has helped the French vehicle maker stand out from its competitors, many of which issued profit warnings last year.
Renault is facing challenges in relation to weaker demand for electric vehicles, supply chain disruptions and slump in China sales that have hit the industry.
Intermediate Capital Group Plc gained 6% to 224.6 pence after the London-based private equity investment firm said third-quarter assets under management increased 27.5% to $106.6 billion at constant currency from a year ago.
The company raised $7.2 billion in the third quarter and $22 billion over the past year, doubling from a year ago.
European Markets Extended Weekly Ahead of Rate Decisions Despite Weak Corporate Results
Bridgette Randall
22 Jan, 2025
London
European markets advanced in Wednesday's trading and extended weekly gains ahead of rate decisions by the European Central Bank next week.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged higher amid a rate cut of at least 25 basis points at the end of the policy meeting on January 30.
The policy committee lowered its key lending rate range by 100 basis points in 2024, and investors are anticipating additional rate cuts totaling 100 basis points in 2025.
However, any rate cut after the imminent meeting is not certain amid rising geopolitical uncertainty and trade tensions with the U.S. and China.
Moreover, inflation outlook in the eurozone is likely to be revised higher as the services sector inflation is likely to accelerate in the months ahead, and last year's lower energy price base is also going to contribute to inflationary forces.
Europe Indexes and Yields
The DAX index moved higher by 1.02% to 21,256.10; the CAC-40 index jumped 0.67% to 7,823.06; and the FTSE 100 index rose by 0.38% to 8,580.43.
The yield on 10-year German bonds inched lower to 2.48%, French bonds eased to 3.25%, the UK gilts declined to 4.60%, and Italian bonds edged lower to 3.57%.
The euro edged up to $1.04; the British pound inched higher to $1.23; and the U.S. dollar was lower to 90.59 Swiss cents.
Brent crude increased $0.33 to $79.71 a barrel, and the Dutch TTF natural gas fell by €0.90 to €46.23 per MWh.
Europe Stock Movers
Adidas Group gained 6.5% to €259.20 after the German sportswear company reported a surge in fourth-quarter sales and swung to a profit from a loss a year ago.
Schaeffler AG plunged 12.4% to €3.97 after the German car parts supplier said fiscal year 2024 results fell short of the company's estimates.
Barry Callebaut AG slumped 6% to CHF 1,080 as the Swiss-Belgian chocolate maker and cocoa processor expects annual sales volume to fall by a low single-digit percentage, after previously forecasting flat cocoa sales volume for the year.
EasyJet Plc dropped 4.4% to 488.89 pence after the UK-based discount airline posted a slight decline in losses in the fiscal first quarter despite an increase of 7% in passenger count.
Alstom fell 0.5% to €20.71 despite the French railroad engineering company achieving an 8% increase in new orders totaling €4.3 billion in the latest quarter.
Porsche Automobil Holding SE added 0.3% to €37.11 after the German sports car maker reiterated its profit margin range between 14% and 15% while working to reduce its footprint in China.
Porsche will post financial results on March 12.
Renault traded unchanged at €48.17 after the French carmaker named Duncan Minto as its new chief financial officer, elevating the executive who has overseen finances at its Alpine sports-car brand since October 2023.
European Markets Extended Weekly Gains Despite Weak Earnings
Bridgette Randall
22 Jan, 2025
London
European markets advanced in Wednesday's trading and extended weekly gains ahead of rate decisions by the European Central Bank next week.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged higher amid a rate cut of at least 25 basis points at the end of the policy meeting on January 30.
The policy committee lowered its key lending rate range by 100 basis points in 2024, and investors are anticipating additional rate cuts totaling 100 basis points in 2025.
However, any rate cut after the imminent meeting is not certain amid rising geopolitical uncertainty and trade tensions with the U.S. and China.
Moreover, inflation outlook in the eurozone is likely to be revised higher as the services sector inflation is likely to accelerate in the months ahead, and last year's lower energy price base is also going to contribute to inflationary forces.
Europe Indexes and Yields
The DAX index moved higher by 1.02% to 21,256.10; the CAC-40 index jumped 0.67% to 7,823.06; and the FTSE 100 index rose by 0.38% to 8,580.43.
The yield on 10-year German bonds inched lower to 2.48%, French bonds eased to 3.25%, the UK gilts declined to 4.60%, and Italian bonds edged lower to 3.57%.
The euro edged up to $1.04; the British pound inched higher to $1.23; and the U.S. dollar was lower to 90.59 Swiss cents.
Brent crude increased $0.33 to $79.71 a barrel, and the Dutch TTF natural gas fell by €0.90 to €46.23 per MWh.
Europe Stock Movers
Adidas Group gained 6.5% to €259.20 after the German sportswear company reported a surge in fourth-quarter sales and swung to a profit from a loss a year ago.
Schaeffler AG plunged 12.4% to €3.97 after the German car-parts supplier said fiscal year 2024 results fell short of company's estimates.
Barry Callebaut AG slumped 6% to CHF1.08 as the Swiss-Belgian chocolate maker and cocoa processor expects annual sales volume to fall by a low single-digit percentage, after previously forecasting flat cocoa sales volume for the year.
EasyJet Plc dropped 4.4% to £488.89 pence after the UK-based discount airline posted a slight decline in losses in the fiscal first quarter despite an increase of 7% in passenger count.
Alstom fell 0.5% to €20.71 despite the French railroad engineering company achieved 8% increase in new orders totaling €4.3 billion in the latest quarter.
Porsche Automobil Holding SE added 0.3% to €37.11 after the German sports car maker reiterated its profit margin range between 14% and 15% while working to reduce its footprint in China.
Porsche will post financial results on March 12.
Renault traded unchanged at €48.17 after the French car maker named Duncan Minto as its new chief financial officer, elevating the executive who has overseen finances at its Alpine sports-car brand since October 2023.
European Markets Extended Weekly Ahead of Rate Decisions Despite Weak Corporate Results
Bridgette Randall
22 Jan, 2025
London
European markets advanced in Wednesday's trading and extended weekly gains ahead of rate decisions by the European Central Bank next week.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged higher amid a rate cut of at least 25 basis points at the end of the policy meeting on January 30.
The policy committee lowered its key lending rate range by 100 basis points in 2024, and investors are anticipating additional rate cuts totaling 100 basis points in 2025.
However, any rate cut after the imminent meeting is not certain amid rising geopolitical uncertainty and trade tensions with the U.S. and China.
Moreover, inflation outlook in the eurozone is likely to be revised higher as the services sector inflation is likely to accelerate in the months ahead, and last year's lower energy price base is also going to contribute to inflationary forces.
Europe Indexes and Yields
The DAX index moved higher by 1.02% to 21,256.10; the CAC-40 index jumped 0.67% to 7,823.06; and the FTSE 100 index rose by 0.38% to 8,580.43.
The yield on 10-year German bonds inched lower to 2.48%, French bonds eased to 3.25%, the UK gilts declined to 4.60%, and Italian bonds edged lower to 3.57%.
The euro edged up to $1.04; the British pound inched higher to $1.23; and the U.S. dollar was lower to 90.59 Swiss cents.
Brent crude increased $0.33 to $79.71 a barrel, and the Dutch TTF natural gas fell by €0.90 to €46.23 per MWh.
Europe Stock Movers
Adidas Group gained 6.5% to €259.20 after the German sportswear company reported a surge in fourth-quarter sales and swung to a profit from a loss a year ago.
Schaeffler AG plunged 12.4% to €3.97 after the German car-parts supplier said fiscal year 2024 results fell short of company's estimates.
Barry Callebaut AG slumped 6% to CHF1.08 as the Swiss-Belgian chocolate maker and cocoa processor expects annual sales volume to fall by a low single-digit percentage, after previously forecasting flat cocoa sales volume for the year.
EasyJet Plc dropped 4.4% to £488.89 pence after the UK-based discount airline posted a slight decline in losses in the fiscal first quarter despite an increase of 7% in passenger count.
Alstom fell 0.5% to €20.71 despite the French railroad engineering company achieved 8% increase in new orders totaling €4.3 billion in the latest quarter.
Porsche Automobil Holding SE added 0.3% to €37.11 after the German sports car maker reiterated its profit margin range between 14% and 15% while working to reduce its footprint in China.
Porsche will post financial results on March 12.
Renault traded unchanged at €48.17 after the French car maker named Duncan Minto as its new chief financial officer, elevating the executive who has overseen finances at its Alpine sports-car brand since October 2023.
Tech Stock Surge Powered 1.6% Rebound In Japan's Nikkei 225 Index
Akira Ito
22 Jan, 2025
Tokyo
Stock market indexes in Tokyo advanced to two-week highs amid recovering sentiment ahead of rate decisions on Friday.
The Nikkei 225 index soared 1.6%, and the broader TOPIX advanced about 1% following the rise in overnight trading in tech stocks.
Artificial intelligence-linked stocks were in focus again after Softbank announced it would be part of a joint venture to develop data centers for artificial intelligence infrastructure in the U.S.
Stargate, a joint venture of OpenAI, Softbank, and Oracle, announced its plans to invest $100 billion to build and develop a network of data centers across the U.S.
The news received widespread publicity in the U.S., but leading tech companies, including Google, Microsoft, Amazon, and Meta Platforms, are already working on similar projects with deeper financial and technological resources.
Tech companies in Silicon Valley were skeptical, citing the shaky nature of the alliance with limited technological resources.
Softbank chief executive Masayoshi Son, prone to hyperbole, has not always been reliable in following up with his grand announcements in the past.
Investors are widely anticipating the Bank of Japan to hold interest rates steady at the end of the policy meeting on Friday.
The Japanese yen traded in a tight range and closed nearly unchanged at 155.61 against the U.S. dollar.
Japan Stock Movers
The Nikkei 225 Stock Average increased 1.6% to 39,646.25, and the broader TOPIX advanced 0.9% to 2,737.19.
Tokyo Electron advanced 1.7% to ¥27,490.0, Advantest Corp. gained 4% to ¥9,819.0, Disco Corp. soared 11.5% to ¥52,140.0, and SoftBank Group jumped 10.5% to ¥10,230.0.
Diversified trading companies approached one-year lows amid worries about the slowing exports and weakening yen over the last nine months.
Marubeni Corp. declined 0.2% to ¥2,249.50, Mitsui & Co. decreased 0.3% to ¥3,055.0, Itochu Corp. dropped 1% to ¥7,075.0, and Mitsubishi Corp. fell 0.4% to ¥2,452.0.
Shipping companies extended recent losses to 18% and dropped to four-month lows.
Mitsui O.S.K. Lines Ltd. fell 1.5% to ¥5,003.0, Kawasaki Kisen Kaisha Ltd. decreased 1.1% to ¥1,931.0, and Nippon Yusen KK dropped 1.7% to ¥4,705.0.
Tech Stock Surge Powered 1.6% Rebound In Japan's Nikkei 225 Index
Akira Ito
22 Jan, 2025
Tokyo
Stock market indexes in Tokyo advanced to two-week highs amid recovering sentiment ahead of rate decisions on Friday.
The Nikkei 225 index soared 1.6%, and the broader TOPIX advanced about 1% following the rise in overnight trading in tech stocks.
Artificial intelligence-linked stocks were in focus again after Softbank announced it would be part of a joint venture to develop data centers for artificial intelligence infrastructure in the U.S.
Stargate, a joint venture of OpenAI, Softbank, and Oracle, announced its plans to invest $100 billion to build and develop a network of data centers across the U.S.
The news received widespread publicity in the U.S., but leading tech companies, including Google, Microsoft, Amazon, and Meta Platforms, are already working on similar projects with deeper financial and technological resources.
Tech companies in Silicon Valley were skeptical, citing the shaky nature of the alliance with limited technological resources.
Softbank chief executive Masayoshi Son, prone to hyperbole, has not always been reliable in following up with his grand announcements in the past.
Investors are widely anticipating the Bank of Japan to hold interest rates steady at the end of the policy meeting on Friday.
The Japanese yen traded in a tight range and closed nearly unchanged at 155.61 against the U.S. dollar.
Japan Stock Movers
The Nikkei 225 Stock Average increased 1.6% to 39,646.25, and the broader TOPIX advanced 0.9% to 2,737.19.
Tokyo Electron advanced 1.7% to ¥27,490.0, Advantest Corp. gained 4% to ¥9,819.0, Disco Corp. soared 11.5% to ¥52,140.0, and SoftBank Group jumped 10.5% to ¥10,230.0.
Diversified trading companies approached one-year lows amid worries about the slowing exports and weakening yen over the last nine months.
Marubeni Corp. declined 0.2% to ¥2,249.50, Mitsui & Co. decreased 0.3% to ¥3,055.0, Itochu Corp. dropped 1% to ¥7,075.0, and Mitsubishi Corp. fell 0.4% to ¥2,452.0.
Shipping companies extended recent losses to 18% and dropped to four-month lows.
Mitsui O.S.K. Lines Ltd. fell 1.5% to ¥5,003.0, Kawasaki Kisen Kaisha Ltd. decreased 1.1% to ¥1,931.0, and Nippon Yusen KK dropped 1.7% to ¥4,705.0.
China and Hong Kong Indexes Dropped 1% In Volatile Trading
Li Chen
22 Jan, 2025
Hong Kong
Stock market indexes in China and Hong Kong turned lower amid uncertainties linked to trade tensions with the U.S. and Europe.
The Hang Seng index plunged 1.6%, and the CSI index declined 1% after Internet and artificial intelligence-linked companies dropped between 2% and 8%.
Market sentiment was on the decline after the U.S. unveiled a private sector initiative to build and develop infrastructure for the rapid escalation to implement artificial intelligence technologies.
Stargate, a joint venture between OpenAI, Oracle, and SoftBank, announced its plan to invest at least $100 billion to build data centers.
The announcement garnered widespread publicity in the tech world, but similar joint ventures in the past have failed to live up to the promises and generally end up unwinding with no measurable results.
However, JD.com, Alibaba Group, NetEase, Tencent Holdings, Baidu.com, and Bilibili plunged between 2% and 6%.
Stock market indexes in China and Hong Kong are likely to be volatile in the months ahead, as the incoming U.S. presidential administration is expected to announce several policies to thwart fast-rising China's advanced technology exports.
Despite the tough talk, trade sanctions and trade barriers have generally failed to stem exports from Japan, South Korea, and China over the last two decades.
China Stock Movers
The Hang Seng index plunged 1.6% to 19,787.49, and the mainland-focused CSI 300 index decreased 1% to 3,792.61.
Country Garden Holdings dropped 14% to HK $0.49 and erased nearly half of the gain in the previous session after the financially troubled residential property developer resumed trading.
China Vanke decreased 3.3% to HK $5.22, China Resources Land fell 2.2% to HK $23.25, Henderson Land Development dropped 1.6% to HK $22.0, and Sun Hung Kai Properties eased 1% to HK $70.75.
China and Hong Kong Indexes Dropped 1% In Volatile Trading
Li Chen
22 Jan, 2025
Hong Kong
Stock market indexes in China and Hong Kong turned lower amid uncertainties linked to trade tensions with the U.S. and Europe.
The Hang Seng index plunged 1.6%, and the CSI index declined 1% after Internet and artificial intelligence-linked companies dropped between 2% and 8%.
Market sentiment was on the decline after the U.S. unveiled a private sector initiative to build and develop infrastructure for the rapid escalation to implement artificial intelligence technologies.
Stargate, a joint venture between OpenAI, Oracle, and SoftBank, announced its plan to invest at least $100 billion to build data centers.
The announcement garnered widespread publicity in the tech world, but similar joint ventures in the past have failed to live up to the promises and generally end up unwinding with no measurable results.
However, JD.com, Alibaba Group, NetEase, Tencent Holdings, Baidu.com, and Bilibili plunged between 2% and 6%.
Stock market indexes in China and Hong Kong are likely to be volatile in the months ahead, as the incoming U.S. presidential administration is expected to announce several policies to thwart fast-rising China's advanced technology exports.
Despite the tough talk, trade sanctions and trade barriers have generally failed to stem exports from Japan, South Korea, and China over the last two decades.
China Stock Movers
The Hang Seng index plunged 1.6% to 19,787.49, and the mainland-focused CSI 300 index decreased 1% to 3,792.61.
Country Garden Holdings dropped 14% to HK $0.49 and erased nearly half of the gain in the previous session after the financially troubled residential property developer resumed trading.
China Vanke decreased 3.3% to HK $5.22, China Resources Land fell 2.2% to HK $23.25, Henderson Land Development dropped 1.6% to HK $22.0, and Sun Hung Kai Properties eased 1% to HK $70.75.