Market Update
U.S. Indexes Rebound as Wall Street Reviews Earnings; Tesla Jumps 11% On Outlook
Barry Adams
24 Apr, 2024
New York City
Benchmark indexes on Wall Street were little changed as investors reviewed the latest batch of mixed earnings.
The S&P 500 index and the Nasdaq Composite hovered near previous closes, yields on Treasury notes edged slightly lower, and crude oil prices struggled to stay above the flatline.
Boeing reported a narrower-than-expected loss in the first quarter; Tesla said in a call with investors that second-quarter results are likely to be better than the first quarter; and Texas Instruments projected higher revenue in the second quarter.
Investors have been on the defensive for the last three weeks amid interest rate uncertainty and strong economic data.
Investors have dialed down their interest rate cut expectations after recent data on nonfarm payrolls and factory orders, home construction, and retail sales indicated resilient economic conditions.
U.S. indexes and yields
The S&P 500 index increased 0.3% to 5,084.03, and the Nasdaq Composite advanced 0.7% to 15,816,82.
The yield on 2-year Treasury notes edged lower to 4.95%, 10-year Treasury notes inched down to 4.63%, and 30-year Treasury bonds edged lower to 4.73%.
WTI crude oil decreased $0.44 to $83.02 a barrel, and natural gas prices decreased 1 cent to $1.80 a thermal unit.
Gold decreased by $8.23 to $2,315.46 an ounce, and silver fell 16 cents to $26.11.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.82.
U.S. Stock Movers
Tesla jumped 12.4% to $162.25 after the electric vehicle maker reported a decline in sales and earnings, but the company's outlook supported market expectations.
Revenue in the first quarter declined 9% to $21.3 billion, net income dropped 55% to $1.13 billion from $2.51 billion, and diluted earnings per share fell to 34 cents from 73 cents a year ago.
In a statement released to investors, Tesla said the volume growth rate in 2024 "may be notably lower than the growth rate achieved in 2023."
The company said it plans to launch "new vehicles, including more affordable models," manufactured on the same production lines without needing additional investment.
The company aims to achieve a 50% increase in annual vehicle production before investing in new plants and equipment.
Boeing Co. increased 3.3% to $174.60 after the aviation company reported a narrower-than-expected loss and a smaller-than-expected cash outflow in the first quarter.
Revenue in the first quarter declined 8% to $16.5 billion, net loss shrank to $355 million from $425 million, and diluted loss per share eased to 56 cents from 69 cents a year ago.
Visa Inc. rose 2.4% to $280.80 after the payment processor reported stronger-than-expected quarterly results.
Texas Instruments jumped 6.7% to $176.69 after the advanced semiconductor company reported better-than-expected first-quarter revenue.
Revenue declined 16% to $3.66 billion from $4.4 billion, net income fell 35% to $1.1 billion from $1.7 billion, and diluted earnings per share dropped to $1.20 from $1.85 a year ago.
The company also estimated second-quarter revenue in the range of $3.65 billion to $3.95 billion and earnings per share between $1.05 and $1.25.
Europe Movers: ASM, Air Liquide, Filtronic, Handelsbanken, Kering, Reckitt Benckiser, Roche, Volvo
Inga Muller
24 Apr, 2024
Frankfurt
European market indexes edged slightly higher in cautious trading amid growing uncertainty about the level of interest rates after a possible rate cut in June.
The DAX index increased by 0.3% to 18,194.82; the CAC-40 index rose by 0.3% to 8,126.60; and the FTSE 100 index inched higher by 0.5% to a new intraday record high of 8,084.75.
The yield on 10-year German bonds edged up to 2.54%; French bonds inched higher to 3.04%; the UK gilts edged higher to 4.30%; and Italian bonds inched higher to 3.88%.
ASM International soared 9.9% to €584.40 after the water processing equipment maker reported better-than-expected first quarter results and raised its sales outlook for the second quarter.
Volvo AB increased 0.4% to SEK 283.70, and the Swedish automaker reported first quarter revenue below market expectations but adjusted operating profit rose sharply.
Svenska Handelsbanken AB dropped 9.5% to SEK 123.0 after the Swedish bank reported a decline in earnings in the first quarter.
Net income declined to SEK 6.6 billion from SEK 6.81 billion a year ago, after expenses rose faster than income in the quarter.
Net interest income advanced to SEK 11.59 billion from SEK 11.49 billion, and the bank's common equity Tier 1 ratio, a measure of the bank's financial strength, eased to 18.8% from 19.4% a year ago.
Roche Holding AG decreased 2.8% to CHF 223.20 after the Swiss pharmaceutical company said first-quarter sales declined 6%.
Evotec SE plunged 37% to €8.86 after the German biotech company reported full-year results and appointed a new chief executive.
Revenue increased 4% to €781 million from €751.4 million a year ago.
The company registered an operating loss of €47.5 million compared to a profit of €20.85 million a year ago.
Excluding one-time items related to restructuring, adjusted operating earnings plunged 35% to €66 million from €101.5 million.
The biotech company said business conditions are not likely to improve until the end of 2024, and a simplified business structure is expected to improve operating earnings by €40 million on an annual basis.
Kering SA plunged 8% to €321.85 after the parent company of Gucci projected a 40% to 50% decline in operating profit in the first half.
Casino Guichard-Perrachon increased 3% to €0.031 after the troubled French grocery retailer said it has launched a transformation plan that is aligned with the company's new vision.
Filtronic soared 52% to 50.19 pence after the company announced a strategic partnership with Space Exploration Technologies Group.
Reckitt Benckiser Group advanced 4.5% to 4,442.50 pence after the consumer products company said comparable revenue in the first quarter rose 1.5%.
Air Liquide declined 1.6% to €187.54 after the French industrial gas provider said revenue in the first quarter declined 7.3% to €6.6 billion.
On a comparable basis, revenue rose 2.1% from a year ago.
As a part of its cost reduction goals, the company cut its costs by €112 million in the first quarter, and the gas company is on track to meet its annual cost reduction goal of €400 million.
The company reiterated its annual target of increasing its operating margin and delivering "recurring net profit growth" when measured at a constant currency exchange rate.
Muted Gains In European Indexes Amid Mixed Earnings Reports
Bridgette Randall
24 Apr, 2024
Frankfurt
Stocks in European financial markets bounced higher, but gains were limited as investors debated the future rate path and level as corporate results rolled in.
Benchmark indexes in Frankfurt, Paris, and London edged higher, and bond yields advanced after comments from Bundesbank president Joachim Nagle.
The European Central Bank may not follow up with a series of rate cuts after the June rate cut, Nagle said at an industry conference in Berlin.
Investors are anticipating the ECB to lower its rate cut in June amid a weakening of inflation in the last ten months, but core inflation is still above the central bank's target rate of 2%.
Investors also reviewed the latest update on German business morale index released by the Ifo Institute.
The business confidence index increased to 89.4 in April from 87.8 in March and advanced to the highest level since May 2023.
Business morale is still weak but recovering in the hopes that the European Central Bank will lower the interest rate in June.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,194.82; the CAC-40 index rose by 0.3% to 8,126.60; and the FTSE 100 index inched higher by 0.5% to a new intraday record high of 8,084.75.
The yield on 10-year German bonds edged up to 2.54%; French bonds inched higher to 3.04%; the UK gilts edged higher to 4.30%; and Italian bonds inched higher to 3.88%.
The euro edged higher to $1.068; the British pound inched higher to $1.242; and the U.S. dollar edged higher to 91.42 Swiss cents.
Brent crude decreased $0.34 to $88.10 a barrel, and the Dutch TTF natural gas fell by €0.10 to €28.55 per MWh.
Europe Stock Movers
ASM International soared 9.9% to €584.40 after the water processing equipment maker reported better-than-expected first quarter results and raised its sales outlook for the second quarter.
Volvo AB increased 0.4% to SEK 283.70, and the Swedish automaker reported first quarter revenue below market expectations but adjusted operating profit rose sharply.
Svenska Handelsbanken AB dropped 9.5% to SEK 123.0 after the Swedish bank reported a decline in earnings in the first quarter.
Net income declined to SEK 6.6 billion from SEK 6.81 billion a year ago, after expenses rose faster than income in the quarter.
Net interest income advanced to SEK 11.59 billion from SEK 11.49 billion, and the bank's common equity Tier 1 ratio, a measure of the bank's financial strength, eased to 18.8% from 19.4% a year ago.
Roche Holding AG decreased 2.8% to CHF 223.20 after the Swiss pharmaceutical company said first-quarter sales declined 6%.
Evotec SE plunged 37% to €8.86 after the German biotech company reported full-year results and appointed a new chief executive.
Revenue increased 4% to €781 million from €751.4 million a year ago.
The company registered an operating loss of €47.5 million compared to a profit of €20.85 million a year ago.
Excluding one-time items related to restructuring, adjusted operating earnings plunged 35% to €66 million from €101.5 million.
The biotech company said business conditions are not likely to improve until the end of 2024, and a simplified business structure is expected to improve operating earnings by €40 million on an annual basis.
Kering SA plunged 8% to €321.85 after the parent company of Gucci projected a 40% to 50% decline in operating profit in the first half.
Nikkei Index In Tokyo Soars 2% After Tech Stocks Rebound
Akira Ito
24 Apr, 2024
Tokyo
Indexes in Tokyo led the gainers in Asia with a rise of 2%, and markets in Seoul and Hong Kong jumped around 1.5%, tracking gains in overnight trading in New York.
Benchmark indexes in Tokyo advanced for the third session in a row following a sharp rise in tech stocks in overnight trading in New York.
In New York, stocks advanced for the second day in a row following positive earnings from General Motors, GE Aerospace, UPS, and PepsiCo.
The Nikkei 225 Stock Average soared 2.3% to 38,425.64, and the Topix index jumped 1.7% to 2,710.69.
In addition, investors are looking forward to the Bank of Japan's rate decisions on Friday amid persistent weakness in the Japanese yen.
The Japanese yen traded at a new 34-year low against the U.S. dollar and hovered at 154.82 at 11:30 a.m. local Tokyo time.
The Japanese yen has lost 50% of its value against the U.S. dollar since December 15, 2020.
Tech stocks led the gainers in Tokyo, and Tokyo Electron, Advantest, Socionext, Disco Corp., and Lasertec advanced between 3% and 8%.
Nidec Corp. plunged as much as 3% before recovering to a gain of 0.5% to ¥6,779.0 after the maker of small electric motors announced a surprise loss in its latest quarter.
The company is battling intense price pressure as price competition heats up in the electric vehicle market in China.
Asahi Kasei Corp. decreased 1% to ¥1,088.0, and the company said it plans to build a $1.3 billion battery component plant in Canada, according to Nikkei News.
The company plans to invest about 200 billion yen, or about $1.3 billion, with a target to start production in 2027 and supply mainly Honda's electric vehicle plant in the nation.
Asahi plans to make lithium-ion battery separators, a key component in electric vehicle batteries.
Hang Seng Index Soar 1.7%, Weakness In IPOs Highlight Cautious Sentiment
Li Chen
24 Apr, 2024
Hong Kong
Stocks in Shanghai struggled to stay above the flatline, but market indexes in Hong Kong advanced for the second consecutive day.
Market sentiment was cautiously optimistic in the hopes that Chinese companies are likely to meet or exceed lowered earnings expectations, supporting the advance indexes from the current depressed levels.
The CSI 300 index decreased 0.01% to 3,505.81, and the Hang Seng Index rose 1.7% to 17,110.21.
Stocks in Hong Kong soared following the rally in Asian markets after advances in New York for the second consecutive day.
Positive earnings by General Motors, GE Aerospace, UPS, and PepsiCo supported the market gains in New York.
Closer to home, Ping An Insurance gained 3.3% to HK$34.05 after the largest insurance company in China reported a smaller-than-expected decline in quarterly earnings.
New Business Value, a measure of revenue and future profitability, was ahead of market expectations and rose 21% from a year ago.
Hong Kong Exchanges & Clearings advanced HK$234.80 ahead of the company's release of earnings later this week.
SenseTime Group soared 31% to HK$0.80 after the company released its latest version of the SenseNova generative AI model used for creative writing.
Investor sentiment continues to be weak for the second day this week as new issues struggle to gain traction.
Mobvoi, the speech recognition software developer, plunged 15% to HK$3.18 after the company listed its share on the Hong Kong Stock Exchange in an initial public offering.
The company sold 84.6 million shares in an initial public offering and priced its shares at HK$3.80 per share, near the lower end of its filing range between HK$3.70 and HK$4.0.
Sichuan Baicha Baidao, the operator of the tea store chain, extended its decline for the second consecutive day and fell 10% to HK$11.52 after the stock plunged 35% on the first day of trading on the Hong Kong Stock Exchange.
On Tuesday, the tea store chain operator sold 174.4 million shares in an initial public offering and priced its shares at HK$17.50 per share.
Elsewhere In Asia, market indexes gained following the advances in overnight trading in New York.
Indexes in Tokyo led the gainers in Asia with a rise of 2%, and markets in Seoul and Hong Kong jumped around 1.5%, tracking gains in overnight trading in New York.
In addition, investors are looking forward to the Bank of Japan's rate decisions on Friday amid persistent weakness in the Japanese yen.
The Japanese yen traded at a new 34-year low against the U.S. dollar and hovered at 154.82 at 11:30 a.m. local Tokyo time.
The Japanese yen has lost 50% of its value against the U.S. dollar since December 15, 2020.
India Movers: Gokaldas, ICICI Prudential, Puravankara, Tata Consumer Products
Arun Goswami
24 Apr, 2024
Mumbai
Stocks in Mumbai opened higher as investors reviewed the latest batch of earnings.
Positive market sentiment was also bolstered by overnight gains in New York for the second day in a row.
The Sensex index increased by 0.1% to 73,810.07, and the Nifty index rose by 0.15% to 22,484.14.
On the Mumbai stock exchange, 105 stocks traded at their 52-week highs, and 3 stocks traded at their 52-week lows.
Gokaldas Exports declined 0.9% to ₹808.15, and the company's board approved an institutional offering to raise as much as ₹775 crore.
Puravankara Ltd. gained 0.2% to ₹356.05 after the company was appointed to develop the Pali Hill project in Mumbai, spanning 10 acres of land.
ICICI Prudential Life Insurance rose 3% to ₹597.85, and the financial service company reported weak quarterly results.
After-tax net income in the March quarter decreased by 26% to ₹173.6 crore, and the value of new business, a measure of revenue, dropped by 26.4% to ₹776 crore from a year ago, respectively.
The margin for new business also declined to 21.4% from 32% in the December quarter.
Tata Consumer Products increased 0.1% to ₹1,172.0, and the company reported a decline in March quarter profit.
Revenue in the quarter increased 8.5% to ₹3,927 crore, and after-tax net profit decreased 19.3% to 217 crore from a year ago, respectively.
New Home Sales Advanced in March
Brian Turner
23 Apr, 2024
New York City
Single-family new home sales increased 8.8% to 693,000 in March from 637,000 in February, the U.S. Census Bureau and the Department of Housing and Urban Development reported Tuesday.
Sales from a year ago increased by 8.3%.
New home sales increased to the highest level in six months from an upwardly revised 5.1% decrease in February.
The median sales price of new houses sold in March was $430,700, and the average sales price was $524,800.
At the end of March, about 477,000 homes were listed for sale, representing about 8.3 months of supply at the current sales rate.
Sales in the Northeast jumped 27% to an annual rate of 46,000, in the Midwest, 5.3% to a 79,000 rate, in the South, 7.7% to 391,000, and in the West, 8.6% to 177,000.
New homes sold in 2023 totaled 666,000, and sales in the first quarter of 2024 increased 4.4% to 181,000 from 174,000 in the period a year ago.
Positive Earnings Support Market Gains Across Atlantic
Alexander Garcia
23 Apr, 2024
Miami
Benchmark indexes on Wall Street advanced as investors reviewed a fresh batch of earnings.
The S&P 500 index and the Nasdaq Composite advanced more than 0.3% in early trading, crude oil prices lacked direction, and gold extended its recent losses.
Earnings were in focus, and investors reacted to the latest results from General Motors, GE Aerospace, PepsiCo, UPS, and JetBlue.
After the close today, Tesla is scheduled to release its quarterly results, and on Wednesday, Meta Platforms is expected to release its results, and on Thursday, Microsoft and Alphabet are expected to report their results.
Later in the week, investors are also awaiting the release of the first-quarter GDP growth and personal consumption expenditure index data.
On the economic front, investors reacted to new home sales and business activity survey data.
U.S. business activity in April rose at the slowest pace since December, the latest survey from S&P Global showed Tuesday.
The U.S. Composite PMI rose to 50.9 in April from 52.1 in the previous month, after both manufacturing and service sectors expanded at a slower pace.
New Home Sales Advanced in March
Single-family new home sales increased 8.8% to 693,000 in March from 637,000 in February, the U.S. Census Bureau and the Department of Housing and Urban Development reported Tuesday.
Sales from a year ago increased by 8.3%.
New home sales increased to the highest level in six months from an upwardly revised 5.1% decrease in February.
The median sales price of new houses sold in March was $430,700, and the average sales price was $524,800.
At the end of March, about 477,000 homes were listed for sale, representing about 8.3 months of supply at the current sales rate.
Sales in the Northeast jumped 27% to an annual rate of 46,000, in the Midwest, 5.3% to a 79,000 rate, in the South, 7.7% to 391,000, and in the West, 8.6% to 177,000.
New homes sold in 2023 totaled 666,000, and sales in the first quarter of 2024 increased 4.4% to 181,000 from 174,000 in the period a year ago.
U.S. indexes and yields
The S&P 500 index increased 1.1% to 5,066.37, and the Nasdaq Composite advanced 1.5% to 15,689,42.
The yield on 2-year Treasury notes edged higher to 5.0%, 10-year Treasury notes inched up to 4.64%, and 30-year Treasury bonds edged lower to 4.74%.
WTI crude oil rose $0.64 to $82.75 a barrel, and natural gas prices decreased 1 cent to $1.77 a thermal unit.
Gold decreased by $9.94 to $2,323.93 an ounce, and silver fell 4 cents to $27.26.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.72.
U.S. Stock Movers
UPS increased 1.6% to $147.30 after the parcel delivery company reported better-than-expected quarterly earnings.
Revenue in the first quarter declined 5.3% to $21.7 billion from $22.9 billion, net income plunged 41.3% to $1.1 billion from $1.9 billion, and diluted earnings per share dropped to $1.30 from $2.19 a year ago.
The company reiterated its 2024 outlook and said consolidated revenue would range from approximately $92.0 billion to $94.5 billion and consolidated operating margin would fall between 10.0% and 10.6%.
General Motors increased 4.9% to $45.35 after the vehicle maker reported sharply higher revenue and earnings in the first quarter.
Revenue increased 7.6% to $43.3 billion from $39.0 billion, net income attributable to shareholders rose 24.4% to $2.98 billion to $2.35 billion, and diluted earnings per share advanced to $2.56 from $1.69 a year ago.
The vehicle maker updated its full-year 2024 earnings outlook to a new range between $10.1 billion and $11.5 billion from the previous estimated range between $9.8 billion and $11.2 billion.
JetBlue dropped 10.5% to $6.75 after the regional airline reported a wider loss in the first quarter.
Revenue in the quarter declined 5.1% to $2.2 billion from $2.3 billion, net loss expanded to $716 million from $192 million, and diluted loss per share increased to $2.11 from 58 cents a year ago, respectively.
The company estimated second-quarter revenue to fall between 6.5% and 10.5% and capital expenditures of $550 million.
European Markets Rebound, FTSE 100 Index Hits Record New High
European markets advanced after geopolitical tensions eased, crude oil prices continued to drift lower, and there was growing optimism about corporate earnings.
Benchmark indexes in Frankfurt and Paris rebounded, and the key index in the UK rose to a new record high in hopes of improving corporate results.
Eurozone Private Sector Activity Growth Picks Up
On the economic front, the eurozone business activity growth outlook improved for the fourth month in a row, and activities expanded for the second consecutive month.
The HCOB Eurozone Composite PMI increased to 51.4 in April from 50.3 in March, the fastest increase since March 2023, S&P Global noted in its preliminary estimate on Tuesday.
Manufacturing output continued to contract, but at the slowest pace in a year, and service sector output expanded at the fastest pace in 11 months.
Among the leading economies of the currency union, business activities in Germany returned to growth after contracting for nine months in a row, and output declined at the slowest pace in 11 months in France.
UK Service Growth Offsets Manufacturing Downturn
Elsewhere in the region, the UK's composite purchasing manager's index rose to an 11-month high in April to 54.0 from 52.8, S&P Global reported Tuesday.
The preliminary business activity estimates are likely to be revised after the second assessment.
The flash manufacturing PMI fell to 48.7 in April from 50.3 in the previous month, reflecting lower customer demand and inventory destocking.
The flash service PMI rose to 54.9 in April from 53.1 in the previous month, indicating a sustained increase in activities in the sector driven by rising demand.
The business activity growth results are based on a survey conducted among 650 manufacturers and 650 service providers between April 11 and 19.
Europe Indexes and Yields
The DAX index increased by 1.3% to 18,100.51; the CAC-40 index rose by 0.7% to 8,094.36; and the FTSE 100 index inched higher by 0.2% to a new record of 8,046.73.
The yield on 10-year German bonds edged down to 2.48%; French bonds inched lower to 2.97%; the UK gilts edged lower to 4.21%; and Italian bonds inched higher to 3.79%.
The euro edged higher to $1.066; the British pound inched higher to $1.236; and the U.S. dollar edged higher to 91.16 Swiss cents.
Brent crude increased $0.09 to $87.89 a barrel, and the Dutch TTF natural gas fell by €0.61 to €28.55 per MWh.
Europe Stock Movers
SAP AG increased 4.4% to €173.10 after the German software and cloud services provider reaffirmed its 2024 outlook and said cloud services revenue rose 24% to €3.93 billion.
JD Sports Fashion PLC rose 5.4% to 125.20 pence after the company proposed to acquire the U.S.-based Hibbett for $1.08 billion.
Anglo American declined 1.9% to 2,119.0 pence after the mining company lowered its diamond production outlook.
Kuehne & Nagle declined 2.8% to CHF 247.30 after the Swiss logistics company reported first-quarter earnings declined 40%.
Novartis AG rose 4.4% to CHF 91.18 after the Swiss drugmaker raised its full-year outlook.
Renault SA decreased 0.7% to €47.11 after the French automaker reported a slight increase in revenue in the first quarter.
Associated British Foods plc soared 9.3% to 2,737.89 pence after the diversified conglomerate said first-half profit increased by 39%.
The increase in profit was driven by the strength of the sugar and retail businesses at Primark.
Taylor Wimpey rose 0.9% to 133.30 pence after the homebuilder reaffirmed its 2024 outlook, easing worries that higher interest rates may negatively impact sales.
Japan Stocks Extend Gains
Stocks in Tokyo advanced for the second day in a row amid easing tensions in the Middle East, and investors reviewed the latest update on the manufacturing industry.
The Nikkei 225 Stock Average rose 0.5% to 37,607.78, and the Topix index advanced 0.2% to 2,668.53.
Moreover, the Japanese yen dropped to a new 34-year low of 154.85, prompting another verbal intervention from Finance Minister Shunichi Suzuki.
Most traders in Tokyo are looking for the yen to drop as low as 170 before the government steps up currency market intervention.
Manufacturing Contraction Slows but Service Expansion Accelerates
The au Jibun Bank Japan Manufacturing Purchasing Manager's Index increased to 49.9 in April from 48.2 in March, S&P Global reported Tuesday.
Manufacturing activities contracted for the eleventh month in a row but fell at the slowest pace in April.
The rising cost of inputs forced the average selling price to increase at the fastest pace in nine months.
The au Jibun Bank flash Japan Services Purchasing Manager's Index increased to 54.6 in April from a final 54.1 in the previous month, S&P Global reported Tuesday.
The service sector expanded for the 20th consecutive month and at the strongest pace since May 2023.
Japan Stock Movers
The market in Asia advanced for the second consecutive day this week, tracking gains in overnight trading on Wall Street.
Benchmark indexes in Seoul rose 0.1%, and in Sydney they advanced 0.4%.
The market index in Shanghai declined 0.4%, but the reference index in Hong Kong advanced 0.6% following an increase of 1.8% in the previous session.
In Tokyo stock trading, tech stocks led the decliners, with Advantest, Tokyo Electron, and Screen Holdings falling between 0.5% and 1.5%.
SoftBank fell 0.3% to ¥7,490.0, and Uniqlo parent Fast Retailing jumped 1.6% to ¥42,120.0.
Financial stocks led gainers ahead of the Bank of Japan's monetary policy decisions on Friday.
Sumitomo Mitsui Financial, Mitsubishi UFJ Financial, and Mizuho Financial gained between 0.2% and 0.6%.
Among the leading automakers, Toyota Motor decreased ¥3,510.0, Honda Motor declined 0.6% to ¥1,763.0, and Nissan Motor rose 0.07% to ¥550.80.
Honda Motor is nearing an agreement with the Canadian government to set up an electric vehicle manufacturing plant, according to Nikkei.
Honda is likely to invest as much as C$14 billion over the years and manufacture electric batteries at a plant, following the lead of other automakers, Volkswagen and Stellantis.
China Indexes Lacked Direction
The market index in Shanghai declined 0.4%, but the reference index in Hong Kong advanced 0.6% following an increase of 1.8% in the previous session.
Market sentiment was positive for the second day in a row after China's financial regulatory agency announced supportive measures to facilitate the listing of mainland Chinese companies on the Hong Kong Stock Exchange.
Moreover, the market sentiment was bolstered by gains in overnight trading in New York on the hopes of better-than-expected quarterly results from leading tech companies including Apple, Microsoft, Meta Platforms, and Alphabet.
The market in Asia advanced for the second consecutive day this week, tracking gains in overnight trading on Wall Street.
Benchmark indexes in Tokyo edged up 0.2%, in Seoul they rose 0.1%, and in Sydney they advanced 0.4%.
The CSI index fell 0.6% to 3,511.05, and the Hang Seng index rose 1.6% to 16,782.71.
Tech companies led the gainers in Hong Kong: Tencent Holdings rose 3.1% to HK$330.20, Baidu jumped 1.7% to HK$95.55, and JD.com advanced 6% to HK$106.60.
WH Group advanced 5.5% to HK$5.78 after China's largest meat processor and pork producer said operating profit soared 37% in the first quarter.
Li Ning Quarterly Sales Rise
Li Ning Co. gained 5.1% to HK$18.38 after the sports equipment and sportswear company said overall sales rose by a low single-digit in the first quarter.
Retail and wholesale sales declined in the "low single-digit," with retail sales increasing in the mid-single-digit and wholesale sales declining by the "mid single-digit."
Online sales soared in the "low twenties" in the quarter.
Same-store sales across the network of stores, excluding Li Ning Young stores, declined by "mid-single-digit" from a year ago.
The company's sales in 2023 increased to 27.6 billion yuan from 35.8 billion yuan, and profit attributable to shareholders declined to 3.2 billion yuan from 4.1 billion yuan a year ago, respectively.
Baicha Baidao IPO Plunges 35%
The two newly listed companies still faced headwinds on the first day of trading in Hong Kong.
Tianjing Construction Development Group plunged 25% to HK$1.85, and Sichuan Baicha Baidao Industrial dropped 35% to HK$11.20.
Sichuan Baicha Baidao, the bubble tea store retail chain, priced its offering at HK$17.50 per share and raised HK$2.5 billion, or $330 million, in the largest Hong Kong's initial public offering in 2024 so far.
The Chengdu-based tea store chain's ChaPanda stores saw rapid expansion of its network to 8.000 locations in 2023 from 500 in 2019.
U.S. Movers: GE Aerospace, General Motors, JetBlue, PepsiCo, UPS
Scott Peters
23 Apr, 2024
New York City
UPS increased 1.6% to $147.30 after the parcel delivery company reported better-than-expected quarterly earnings.
Revenue in the first quarter declined 5.3% to $21.7 billion from $22.9 billion, net income plunged 41.3% to $1.1 billion from $1.9 billion, and diluted earnings per share dropped to $1.30 from $2.19 a year ago.
The company reiterated its 2024 outlook and said consolidated revenue would range from approximately $92.0 billion to $94.5 billion and consolidated operating margin would fall between 10.0% and 10.6%.
General Motors increased 4.9% to $45.35 after the vehicle maker reported sharply higher revenue and earnings in the first quarter.
Revenue increased 7.6% to $43.3 billion from $39.0 billion, net income attributable to shareholders rose 24.4% to $2.98 billion to $2.35 billion, and diluted earnings per share advanced to $2.56 from $1.69 a year ago.
The vehicle maker updated its full-year 2024 earnings outlook to a new range between $10.1 billion and $11.5 billion from the previous estimated range between $9.8 billion and $11.2 billion.
JetBlue dropped 10.5% to $6.75 after the regional airline reported a wider loss in the first quarter.
Revenue in the quarter declined 5.1% to $2.2 billion from $2.3 billion, net loss expanded to $716 million from $192 million, and diluted loss per share increased to $2.11 from 58 cents a year ago, respectively.
The company estimated second-quarter revenue to fall between 6.5% and 10.5% and capital expenditures of $550 million.
PepsiCo decreased 0.3% to $175.90 after the beverage and food maker reported mixed quarterly results.
Revenue in the first quarter increased 2% to $18.3 billion from $17.8 billion, net income rose to $2.0 billion from $1.94 billion, and diluted earnings per share advanced to $148 from $1.40 a year ago.
The company reiterated its full-year 2024 organic revenue growth of 4% and at least an 8% rise in core constant currency earnings per share.
The company also projected total cash returns to shareholders of $8.2 billion, consisting of $7.2 billion in dividends and a stock repurchase of $1.0 billion.
General Electric Aerospace soared 4% to $156.32 after the company reported better-than-expected quarterly results.
GE Aerospace revenue in the first quarter increased 15% to $8.1 billion, and diluted earnings per share were 92 cents.
Consolidated revenue in the quarter, which included GE Vernova prior to its spinoff, rose 11% to $16.1 billion, and diluted earnings per share rose to $1.38.
Free cash flow in the quarter was $1.7 billion.
GE Aerospace reported new orders increased by 34% to $11 billion, reflecting strong demand for commercial engines and services.
For the full fiscal year 204, the company estimated free cash flow to exceed $5 billion and adjusted diluted earnings per share in the range of $3.80 and $4.05.
The company also estimated commercial jet engines and services revenue to increase in the mid-to-high teens and defense and propulsion technologies revenue to rise in the mid-to-high single-digits.
Wall Street Stocks Trade Higher as Earnings Season Gathers Momentum
Barry Adams
23 Apr, 2024
New York City
Benchmark indexes on Wall Street advanced as investors reviewed a fresh batch of earnings.
The S&P 500 index and the Nasdaq Composite advanced more than 0.3% in early trading, crude oil prices edged lower, and gold extended its recent losses.
General Motors and Novartis raised their full-year guidance; Pepsi Co. and UPS reported better-than-expected quarterly results; but JetBlue's quarterly revenue fell.
Tesla is scheduled to report its quarterly results after the close today; Meta Platforms is scheduled to release its earnings on Wednesday; and Microsoft and Alphabet are expected to report their results on Thursday.
Later in the week, investors are also awaiting the release of the first-quarter GDP growth and personal consumption expenditure index data.
U.S. indexes and yields
The S&P 500 index increased 0.5% to 5,040.08, and the Nasdaq Composite advanced 0.3% to 15,502,27.
The yield on 2-year Treasury notes edged higher to 5.0%, 10-year Treasury notes inched up to 4.64%, and 30-year Treasury bonds edged lower to 4.74%.
WTI crude oil decreased $0.93 to $81.91 a barrel, and natural gas prices decreased 1 cent to $1.80 a thermal unit.
Gold decreased by $31.98 to $2,301.79 an ounce, and silver fell 38 cents to $26.91.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 106.02.
U.S. Stock Movers
UPS increased 1.6% to $147.30 after the parcel delivery company reported better-than-expected quarterly earnings.
Revenue in the first quarter declined 5.3% to $21.7 billion from $22.9 billion, net income plunged 41.3% to $1.1 billion from $1.9 billion, and diluted earnings per share dropped to $1.30 from $2.19 a year ago.
The company reiterated its 2024 outlook and said consolidated revenue would range from approximately $92.0 billion to $94.5 billion and consolidated operating margin would fall between 10.0% and 10.6%.
General Motors increased 4.9% to $45.35 after the vehicle maker reported sharply higher revenue and earnings in the first quarter.
Revenue increased 7.6% to $43.3 billion from $39.0 billion, net income attributable to shareholders rose 24.4% to $2.98 billion to $2.35 billion, and diluted earnings per share advanced to $2.56 from $1.69 a year ago.
The vehicle maker updated its full-year 2024 earnings outlook to a new range between $10.1 billion and $11.5 billion from the previous estimated range between $9.8 billion and $11.2 billion.
JetBlue dropped 10.5% to $6.75 after the regional airline reported a wider loss in the first quarter.
Revenue in the quarter declined 5.1% to $2.2 billion from $2.3 billion, net loss expanded to $716 million from $192 million, and diluted loss per share increased to $2.11 from 58 cents a year ago, respectively.
The company estimated second-quarter revenue to fall between 6.5% and 10.5% and capital expenditures of $550 million.