China Indexes Extend Weekly Losses Amid Global Sell-off

Li Chen
02 Aug, 2024
Hong Kong

Stocks in Shanghai and Hong Kong dropped sharply and extended losses to the third week in a row amid a global market sell-off.

The Hang Seng index declined more than 2% and the CSI 300 index dropped nearly 1% after the U.S. economy data raised concerns about the health of the U.S. economy. 

The two widely held indexes nearly wiped out this year's gains as investors shift focus to the recession and turn risk-averse amid rising geopolitical uncertainty. 

Factory activities contracted for the third month in a row in July, and weekly initial jobless claims approached a one-year high at the end of the last week, the latest U.S. economic data suggested. 

Market indexes were also under pressure after Hong Kong Land reported a sharp jump in losses in its first half, stoking fears of a protracted property market slump. 

Investors stayed on the sidelines for the third week in a row amid persistent China deflation worries, a rising tide of capital outflows, and Beijing's reluctance to stimulate the economy amid faltering consumer confidence. 

China Stock Movers 

The Hang Seng index declined 2.3% to 16,915.69, and the CSI 300 index dropped 0.9% to 3,387.10.

Hong Kong Land Holdings decreased 1.3% to HK$3.20 after the residential property developer reported a net loss in the first half that jumped 150% amid a protracted property downturn in Hong Kong and the mainland. 

Net loss expanded to US$833 million from US$333 million, reflecting a non-cash property valuation adjustment. 

The underlying loss was US$7 million, excluding the non-cash provision of US$295 million for property development projects in mainland China, compared to US$288 million. 

The company plans to pay an interim dividend of US$6 per share, matching the payout in the previous year. 

China Vanke declined 1.5% to HK $4.05, China Resources Land decreased 2% to HK $22.20, and Henderson Land Development was unchanged at HK $21.90. 

India Movers: Infosys, ITC, Tata Motors, Zomato

Arun Goswami
02 Aug, 2024
Mumbai

India indexes plunged as much as 1% and halted an 8-week rally following a global market sell-off. 

World markets declined after key manufacturing and labor market data in the U.S. raised the prospect of a recession in the world's largest economy. 

The Sensex index increased by 0.8% to 81,212.63, and the Nifty index fell by 0.8% to 24,812.65. 

On the Mumbai stock exchange, 177 stocks traded at their 52-week highs, and 17 stocks traded at their 52-week lows.

Zomato rose 12.% to ₹262.66 after the delivery service company reported a jump in its June quarter revenue and earnings. 

Revenue increased 74% to ₹4,206, and net income soared multi-fold to ₹253 crore from ₹2 crore a year ago, respectively. 

Net income increased 44.5% from ₹175 crore in the previous quarter. 

Tata Motors declined 3.9% to ₹1,106.20 despite the company reporting revenue and earnings matching market expectations. 

Consolidated revenue increased 6% to 1.08 lakh crore from 1.02 lakh crore, and net income advanced 74% to 5,566 crore from 3,203 crore a year ago, respectively. 

The company's board also approved the spin-off of its UK-based JLR division as a separate company over the next 12 to 15 months. 

Revenue at its JLR division rose 5.4% to £7.3 billion, but its operating margin slipped 50 basis points to 15.8%. 

ITC declined 1.1% to ₹488.55 after the diversified conglomerate reported a decline in earnings in the June quarter. 

Consolidated revenue increased 7.5% to ₹20,029 crore from ₹18,639.5 crore, and net income declined 0.3% to ₹5,091 crore from ₹5,104 crore a year ago, respectively. 

Infosys declined 1.3% to ₹1,829.90 after the Karnataka state withdrew its preliminary request for goods and service tax for the period between 2017 and 2022, demanding 32,403 crore. 

Europe Movers: Arcelor Mittal, BMW, Barclays, Credit Agricole, Daimler Truck, Deutsche Post, Rolls Royce, Societe Generale, Smith & Nephews

Inga Muller
01 Aug, 2024
Frankfurt

Arcelor Mittal declined 4.5% to €19.99 after the French steelmaker reported a 73% decline in second quarter earnings. 

BMW decreased 3% to €83.20, and the German luxury automaker reported a decline in revenue, earnings, and deliveries in the second quarter. The company estimated a slight decline in fiscal year earnings. 

Revenue in the second quarter declined 0.7% to Є36.94 billion, net income fell 8.6% to Є2.71 billion from Є2.96 billion, and earnings per share fell 5.5% to Є4.15 from Є4.39 a year ago. 

Daimler Truck declined 3.2% to €34.60 after the German truck maker cut its fiscal-year annual outlook. 

Deutsche Post dropped 6.3% to €38.66 after the international parcel delivery company reported second-quarter results. 

Revenue increased 2.7% to €20.6 billion from €20.1 billion, operating income declined 24% to €744 million from €978 million, and diluted earnings per share fell to 63 cents from 80 cents a year ago. 

Societe Generale declined 9% to €21.83 after the French bank cut its annual outlook for its domestic retail activities. 

Credit Agricole declined 0.4% to €13.97 after the French lender posted a decline in second-quarter profit. 

Smith & Nephews advanced 6.8% to 1,199.0 pence after the UK-based prosthetic device maker reported better-than-expected first-half results. 

Barclays PLC declined 3.6% to 225.32 pence after the UK-based bank reported a decline in profit in the second quarter. 

Rolls Royce jumped 9.4% to 491.88 pence after the British aerospace and defense company reported higher profit, raised its annual income outlook, and held out for dividend reinstatement later in the year. 

Revenue in the first half increased to £8.2 billion from £7.2 billion, and underlying profit rose to £1.2 billion from £673 million a year ago, respectively. 

The company revised its annual profit range to between £2.1 billion and £2.3 billion from the previous estimate of between £1.7 billion and £2.0 billion. 

The maker of engines for Boeing and Airbus said it plans to reinstate a 30% dividend pay-out ratio of after-tax underlying profit. 

U.S. Stocks Turn Volatile After Factory Activities Contracts and Jobless Claims Rise

Barry Adams
01 Aug, 2024
New York City

Stocks on Wall Street turned volatile following sharp gains in the previous session as investors reviewed the latest batch of earnings and key economic data. 

The S&P 500 index and the Nasdaq Composite advanced 0.7% after Meta Platforms reported strong earnings and offered an upbeat outlook, but indexes turned down after the release of the manufacturing survey. 

The ISM Manufacturing PMI eased to 46.6 in July from 48.5 in the previous month, reflecting the sharpest decline in activities since November 2023. 

Market indexes jumped sharply in the afternoon on Wednesday after the Federal Reserve held the Fed Funds rate range between 5.25% and 5.50% for the eighth time in a row. 

Fed Chair Jerome Powell signaled that the central bank could see a possible scenario where rate cuts could begin as early as September if inflation continues to be on the downward slide and the employment market remains healthy. 

“If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September,” Powell said.

Traders bid up stocks after Powell's comments and factored in that at least two rate cuts are likely in the fourth quarter. 

Weekly Unemployment Claims Advance to One-year high

Initial jobless claims rose last week, and a measure of labor costs rose less than expected in the second quarter, according to economic data released Thursday. 

First-time jobless claims increased from 14,000 to 249,000 for the week ending July 27, the Labor Department reported Thursday. 

Initial weekly claims were the highest since August 2023, as the job market tightened over the last year. 

Continuing claims, which run one week behind, rose by 33,000 to 1.877 million in the week ending July 20. 

Unit labor costs Increase Slows In Second Quarter

Unit labor costs in the nonfarm business sector increased at an annual pace of 0.9% in the second quarter, following the downwardly revised 3.8% in the first quarter, the Bureau of Labor Statistics reported Thursday. 

Unit labor costs reflect a 3.3% increase in wages and a 2.3% rise in productivity. 

Over the last four quarters, unit labor costs increased by 0.5%, the lowest rate of increase since the third quarter of 2019. 

Unit labor costs in the manufacturing sector increased by 3.2%, and in the business sector, they rose by 2.2%. 

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.7% to 5,559.79, the Nasdaq Composite gained 0.8% to 17,753.70, and the Russell 2000 index rose 0.2% to 2,258.31.

The yield on 2-year Treasury notes edged lower to 4.24%, 10-year Treasury notes decreased to 4.0%, and 30-year Treasury bonds decreased to 4.29%.

WTI crude oil increased $0.44 to $78.35 a barrel, and natural gas prices edged up 5 cents to $2.09 a thermal unit.

Gold increased by $4.56 to $2,450.65 an ounce, and silver declined by $0.06 to $28.94. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.25.

U.S. Stock Movers 

Meta Platforms soared 7.6% to $510.66 after the parent company of Facebook and WhatsApp reported higher-than-expected quarterly results. 

The company guided third quarter revenue between $38.5 billion and $41 billion and capital expenditure for the full year between $37 billion and $40 billion, higher than the previous range between $35 billion and $40 billion. 

Arm Holdings PLC declined 8.3% to $132.30 after the UK-based advanced chip designer's fiscal second quarter earnings per share outlook of 23 cents to 27 cents fell short of market expectations. 

The company guided fiscal second quarter revenue between $780 million and $830 million, and non-GAAP diluted earnings per share between 23 cents and 27 cents. 

Ferrari NV increased 4% to $429.41, and the luxury sports car maker reported better-than-expected quarterly results and raised its full-year outlook. 

Sports car shipment increased by 2.7% from a year ago to 3,484. 

Ferrari estimated revenue in the financial year at Є6.55 billion from the previous estimate of Є6.4 billion, adjusted earnings before interest and taxes at Є1.82 billion from Є1.77 billion, and adjusted earnings per share at Є7.90 from Є7.50.  

Teladoc Health declined 18.7% to $7.67 after the online health service provider reported weaker-than-expected quarterly revenue in the second quarter. 

The company recorded a noncash goodwill impairment charge of $790 million, reflecting changes in future cash flows related to the company's BetterHelp segment. 

Microsoft Corp. declined 1.1% to $418.35 after the software company reported better-than-expected quarterly results, but cloud segment growth fell short of market expectations. 

Azure and cloud services revenue increased 29%, Microsoft cloud revenue rose 21%, Xbox content and services revenue soared 61%, and search and news advertising revenue advanced 19%. 

Advanced Micro Devices jumped 4.2% to $144.48 after the advanced chip maker reported better-than-expected quarterly results. 

U.S. Movers: AMD, Arm Holdings, Meta Platforms, Microsoft, Teladoc

Scott Peters
01 Aug, 2024
New York City

Meta Platforms soared 7.6% to $510.66 after the parent company of Facebook and WhatsApp reported higher-than-expected quarterly results. 

Revenue in the second quarter increased 22% to $39 billion from $32 billion, net income soared 73% to $13.5 billion from $7.8 billion, and diluted earnings per share advanced to $5.16 from $2.98 a year ago. 

The company guided third quarter revenue between $38.5 billion and $41 billion and capital expenditure for the full year between $37 billion and $40 billion, higher than the previous range between $35 billion and $40 billion. 

Arm Holdings PLC declined 8.3% to $132.30 after the UK-based advanced chip designer's fiscal second quarter earnings per share outlook of 23 cents to 27 cents fell short of market expectations. 

Revenue in the fiscal first quarter ending in June soared 39% to $939 million, net income more than doubled to $223 million from $105 million, and diluted earnings per share rose to 21 cents from 10 cents a year ago. 

The company guided fiscal second quarter revenue between $780 million and $830 million, and non-GAAP diluted earnings per share between 23 cents and 27 cents. 

Teladoc Health declined 18.7% to $7.67 after the online health service provider reported weaker-than-expected quarterly revenue in the second quarter. 

Revenue in the second quarter decreased 2% to $642.4 million, net loss increased to $837.7 million from $65.2 million, and diluted loss per share expanded to $4.92 from 40 cents a year ago. 

The company recorded a noncash goodwill impairment charge of $790 million, reflecting changes in future cash flows related to the company's BetterHelp segment. 

BetterHelp segment revenue fell 9% from a year ago to $265 million, with an adjusted EBITDA margin of 9%. 

Microsoft Corp. declined 1.1% to $418.35 after the software company reported better-than-expected quarterly results, but cloud segment growth fell short of market expectations. 

Revenue in the fiscal fourth quarter ending in June increased 15% to $64.7 billion from $56.2 billion, net income advanced 10% to $22.0 billion from $24.3 billion from $20.8 billion, and diluted earnings per share rose 10% to $2.95 from $2.69 a year ago. 

Azure and cloud services revenue increased 29%, Microsoft cloud revenue rose 21%, Xbox content and services revenue soared 61%, and search and news advertising revenue advanced 19%. 

Advanced Micro Devices jumped 4.2% to $144.48 after the advanced chip maker reported better-than-expected quarterly results. 

Revenue in the second quarter increased 9% to $5.8 billion from $5.4 billion, net income jumped nearly ninefold to $265 million from $27 million, and diluted earnings per share advanced to 16 cents from 2 cents a year ago. 

The company guided revenue in the third quarter to increase 16% from a year ago at $6.7 billion with a band of $300 million and a non-GAAP gross margin of 53.5%. 

Europe Movers: adidas, Airbus, Danone, GSK, HSBC, Ricardo, Schneider Electric, Siemens Helathineers, TeamViewer

Inga Muller
31 Jul, 2024
Frankfurt

Positive earnings announcements lifted market sentiment in Europe, and benchmark indexes rebounded. 

Consumer price inflation in the eurozone accelerated after elevated service inflation contributed to overall inflation. 

The DAX index increased by 0.5% to 18,495.32; the CAC-40 index rose by 1.3% to 7,568.71; and the FTSE 100 index increased by 1.2% to 8,374.17.

The yield on 10-year German bonds edged lower to 2.32%, French bonds inched lower to 3.02%, the UK gilts inched lower to 4.01%, and Italian bonds decreased to 3.66%.

Siemens Healthineers declined 6.6% to €49.70, and the medical technology company reported lower-than-expected quarterly earnings and sales. 

HSBC Holdings increased 3.3% to 699.25 pence after the UK- and Hong Kong-based bank reported stable earnings and announced a $3 billion stock buyback plan. 

GSK plc declined 2% to 1,511.77 pence after the UK-based pharmaceutical company reported second-quarter net income attributable to shareholders declined to £1.17 billion from £1.62 billion a year ago. 

TeamViewer SE surged 12.1% to €12.36 after the remote connectivity solution provider reported better-than-expected second quarter results and reiterated its annual outlook. 

adidas AG increased 0.2% to €237.0 after the sportwear maker backed its second quarter preliminary results and reiterated its annual outlook. 

Schneider Electric SE increased 3.2% to €223.05, and the French energy management and automation company lifted its annual outlook and reported better-than-expected first-half results. 

Airbus jumped 4.2% to €139.14, and the aviation company reported better-than-expected first-half results. 

Danone SA jumped 3.6% to €60.96, and the French yogurt maker said revenue in the second quarter rose more than expected. 

Ricardo plc climbed 4.2% to 512.0 pence after the engineering and environmental consulting firm said the company's performance is in line with management expectations. 

Revenue in the year ending in June increased 7% from a year ago, and new order inflow declined 5% to £495 million. 

New orders compared to the previous year, because of the timing of new large orders in its automotive and industrial orders and new program wins in the prior year. 

Positive Earnings Supported Market Rebound In Eurozone; Inflation Accelerated In July

Bridgette Randall
31 Jul, 2024
London

European markets advanced, supported by positive sentiment following a fresh batch of earnings and key economic data. 

Benchmark indexes in London, Paris, and Frankfurt advanced, and consumer price inflation in the eurozone unexpectedly rose in July. 

Consumer price inflation in the currency union accelerated to 2.6% from 2.5% in June, Eurostat reported Wednesday. 

The core rate of inflation, which excludes food, drinks, tobacco, and energy, held steady at 2.9%. 

The rise in service inflation dominated overall inflation and eased to 4.% from 4.1% in the previous month. 

Among the currency bloc's largest economies, the annual rate of inflation in France and Germany advanced to 2.6% from 2.5% in the previous month, increased in Italy to 1.7% from 0.9%, but eased in Spain to 2.9% from 3.6%. 

Europe Indexes and Yields

The DAX index increased by 0.5% to 18,495.32; the CAC-40 index rose by 1.3% to 7,568.71; and the FTSE 100 index increased by 1.2% to 8,374.17.

The yield on 10-year German bonds edged lower to 2.32%, French bonds inched lower to 3.02%, the UK gilts inched lower to 4.01%, and Italian bonds decreased to 3.66%.

The euro edged down to $1.08; the British pound inched lower to $1.282; and the U.S. dollar weakened to 88.01 Swiss cents.

Brent crude decreased $1.85 to $80.09 a barrel, and the Dutch TTF natural gas fell by €0.44 to €39.69 per MWh.

Europe Stock Movers

Siemens Healthineers declined 6.6% to €49.70, and the medical technology company reported lower-than-expected quarterly earnings and sales. 

HSBC Holdings increased 3.3% to 699.25 pence after the UK- and Hong Kong-based bank reported stable earnings and announced a $3 billion stock buyback plan. 

GSK plc declined 2% to 1,511.77 pence after the UK-based pharmaceutical company reported second-quarter net income attributable to shareholders declined to £1.17 billion from £1.62 billion a year ago. 

TeamViewer SE surged 12.1% to €12.36 after the remote connectivity solution provider reported better-than-expected second quarter results and reiterated its annual outlook. 

adidas AG increased 0.2% to €237.0 after the sportwear maker backed its second quarter preliminary results and reiterated its annual outlook. 

Schneider Electric SE increased 3.2% to €223.05, and the French energy management and automation company lifted its annual outlook and reported better-than-expected first-half results. 

Airbus jumped 4.2% to €139.14, and the aviation company reported better-than-expected first-half results. 

Danone SA jumped 3.6% to €60.96, and the French yogurt maker said revenue in the second quarter rose more than expected. 

Ricardo plc climbed 4.2% to 512.0 pence after the engineering and environmental consulting firm said the company's performance is in line with management expectations. 

Revenue in the year ending in June increased 7% from a year ago, and new order inflow declined 5% to £495 million. 

New orders compared to the previous year, because of the timing of new large orders in its automotive and industrial orders and new program wins in the prior year. 

BOJ Unexpectedly Raises Policy Rate and Announces Bond Tapering Plan

Akira Ito
31 Jul, 2024
Tokyo

Benchmark indexes in Tokyo jumped after the Bank of Japan increased rates for the second time this year. 

The Nikkei 225 and the Topix indexes advanced 1.5% after the Bank of Japan raised its key short-term uncollateralized rate to 0.2% from a range between zero and 0.1%. 

The central bank lifted its key rate for the second time this year following its previous rate hike in March and the ending of its negative interest rate regime in place since 2016. 

"Japan's economic activity and prices have been generally developing in line with the outlook," the Bank of Japan said in a policy statement released after the two-day meeting that ended on Wednesday. 

The interest rate move surprised most market participants, as the central bank did not want to encourage excessive currency speculation. 

The central bank also announced its plans to taper the monthly government bond purchase program to 3 trillion yen in the first quarter of 2026 from the current monthly purchase of 6 trillion yen. 

The Bank of Japan also indicated in a separate statement that policymakers are anticipating core consumer inflation to average 1.9% in the fiscal year 2025 and 2.1% in the fiscal year 2026. 

The BoJ policy statement also laid out a case for additional rate hikes in the months ahead, as the central bank plans a gradual increase in rates to reduce the yield gap between the U.S. and Japan. 

"Given that real interest rates are at significantly low levels, if the aforementioned outlook for economic activity and prices is realized, the Bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation," the central bank said in an accompanying statement. 

The Japanese yen strengthened 1.5% to 150.18 and rebounded to the level last seen on March 18. 

Japan Stock Movers 

The Nikkei 225 stock average jumped 1.5% to 39,101.82, and the Topix index advanced 1.5% to 2,794.26. 

Mitsubishi UFJ Financial Group soared 4.2% to ¥1,750.0, Mizuho Financial gained 5.2% to ¥3,448.0, and Sumitomo Mitsui Financial added 4.5% to ¥10,915.0. 

The Bank of Japan's rate path clarity supported the rise in leading exporters, despite the strengthening of the yen.

Canon, Sony, TDK, and Panasonic rebounded between 1.5% and 3.5%. 

Oriental Land declined 5.9% to ¥4,282.0, and the company reported weaker-than-expected quarterly results. 

Net sales increased 5.6% to 148.21 billion yen, driven by a 4.2% increase in theme park sales to 121.40 billion yen.

Net income advanced 11% from a year ago to 24.45 billion yen.

The company estimated net sales in the current fiscal year to increase to 684.76 billion yen and net income to rise to 120.52 billion yen. 

China Manufacturing Activity Index Contracts Third Consecutive Month, HSBC Announces Stock Buyback

Li Chen
31 Jul, 2024
Hong Kong

Benchmark indexes in Shanghai and Hong Kong soared after manufacturing activities contracted for the third month in a row. 

The Hang Seng and the CSI 300 indexes jumped 2% amid heightened speculation that policymakers may announce more specific measures to revive consumer confidence and market-supportive measures. 

In yesterday's trading, benchmark indexes dropped sharply after the Politburo statement offered vague support for economic reform but lacked specific details. 

However, the latest weakness in manufacturing activities supports the argument that policymakers will announce more support in the second half. 

The PMI manufacturing index in July eased to 49.4 from 49.5 in June, the National Bureau of Statistics reported Wednesday. 

A reading below indicates contraction in activities, and one above shows an increase. 

Manufacturing activities contracted for the third month in a row amid weak domestic demand growth. 

China's non-manufacturing PMI Index, which tracks service activities, dropped to an 8-month low of 50.2 in July from 50.4 in June, the official data showed. 

The selling price for services dropped for the tenth month in a row, but the rate of decrease was the softest in three months. 

China Stock Movers 

The Hang Seng index is set to close down more than 2% in July and extend losses to more than 11% from the peak reached in May, after investors lowered stimulus expectations despite fragile economic recovery. 

The Hang Seng index soared 2% to 17,348.39, and the CSI 300 index advanced 2.1% to 3,438.78. 

HSBC increased 3.2% to HK$68.95, and the financial services bank said it set aside $3 billion for a stock repurchase plan and announced better-than-expected quarterly results. 

Hang Seng Bank declined 4.2% to HK$97.50 after the bank trimmed its interim dividend from HK$0.18 to HK$0.12, payable on September 5 to shareholders on record on August 15. 

Hang Lung Properties rose 3.2% to HK $5.82 and rebounded from the previous day's loss of 15% following a sharp decline in earnings. 

Hang Lung, one of the largest developers in Hong Kong, reported that net income in the first half plunged 56% to HK $1.06 billion, or $136 million, and revenue rose 17% to HK $6.11 billion. 

The earnings dropped in the period largely because of a reversal in the fair value of its properties to a loss of HK $634 million from a gain of HK $251 million. 

The company also cited weak customer traffic at its Plaza 66 mall in Shanghai and a decline in leasing revenue because more shoppers prefer to shop abroad, taking advantage of the yen's weakness. 

Zhejiang Liju Thermal Equipment, a maker and distributor of heat equipment, soared more than 50% in its first trading day in Shanghai to 61.05 yuan. 

Liju Thermal priced its initial public offering at 40 yuan per share. 

India Movers: Dixon Technologies, GAIL, Indus Towers, Macrotech Developers, Torrent Power

Arun Goswami
31 Jul, 2024
Mumbai

Stocks in Mumbai traded higher amid positive earnings from leading corporations. 

Crude oil prices dropped to a seven-month low, and the Indian rupee held steady near a record low.   

The Sensex index increased by 0.2% to 81,607.96, and the Nifty index rose by 0.2% to 24,911.0. 

On the Mumbai stock exchange, 181 stocks traded at their 52-week highs, and 7 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched higher to 7.04%, and the Indian rupee edged lower to ₹83.71 against the U.S. dollar.

Torrent Power increased 5.6% to ₹1,694.10, and the electric power producer reported a surge in profit in the June quarter. 

Revenue increased 23.3% to ₹9,033.7 crore, and net income soared 87.2% to ₹996.3 crore from a year ago, respectively. 

The company said higher wholesale power sales from gas-power-based plants led to higher sales to commercial clients. 

Indus Towers decreased 0.8% to ₹443.70, and the company reported a slight increase in profit in the June quarter. 

Consolidated revenue advanced 4% to ₹7,439.4 crore from ₹7,132.4 crore, and net income rose 42% to ₹1,925.9 crore from ₹1,347.9 crore a year ago. 

Dixon Technologies jumped 2.2% to ₹12,249.95, and the electronics manufacturing services provider reported a surge in revenue and earnings in the June quarter. 

Consolidated revenue more than doubled to ₹6,579.80 crore from ₹3,271.50 crore, and net income advanced 94.3% to ₹133.7 crore from ₹68.8 crore a year ago.

GAIL India increased 4.3% to ₹244.73, and the natural gas transmission company said profit in the June quarter advanced. 

Consolidated net revenue advanced to ₹34,821.9 crore from ₹32,848.8 crore, and net profit soared 77.5% to ₹3,183 crore from ₹1,793 crore a year earlier. 

The company said the increase in net profit was supported by higher transmission and domestic marketing volumes and an improved gas marketing margin. 

Macrotech Developers increased 0.4% to ₹1,333.0, and the residential real estate developer reported sharp gains in revenue and earnings in the June quarter. 

Revenue increased 76% to ₹2,850 crore, and net income soared 166% to ₹476 crore from a year ago, respectively. 

U.S. Movers: F5, JetBlue, Merck, Pfizer, Woodward

Scott Peters
30 Jul, 2024
New York City

JetBlue jumped 21.6% to $7.21 after the regional airline unexpectedly reported profit in its latest quarter. 

Procter & Gamble plunged 6% to $159.73, and the household products maker reported weaker-than-expected revenue due to weak sales in China. 

Merck & Company dropped 8.6% to $116.61 after the pharmaceutical company reported stronger-than-expected quarterly results, but the company's annual guidance fell short of investor expectations. 

Pfizer declined 2.9% to $116.61 despite the pharmaceutical company reporting better-than-expected second quarter results and lifting its annual outlook.

F5 Inc. soared 10.7% to $196.71 after the cyber security network management software company reported better-than-expected revenue and earnings in the fiscal third quarter. 

Woodward Inc. dropped 16.5% to $152.91, and the aerospace company's revenue in the fiscal third quarter of $847.7 million fell short of market expectations. 

June Job Openings Held Steady, Hires and Total Separations Change Little

Brian Turner
30 Jul, 2024
Washington, D.C.

Job openings in June edged slightly lower to 8.18 million from 8.23 million in May, according to the Job Opening and Labor Turnover Survey by the U.S. Bureau of Labor Statistics. 

The hiring levels declined by 554,000 over the year to 5.3 million, and the hire rate as a share of the workforce eased to 3.4%, the lowest since October 2013, excluding pandemic-era layoffs in April 2020.

The number of people quitting their jobs eased to 3.3 million, the lowest since November 2020.  

Job openings increased in accommodation and food services by 120,000 and in state and local government, excluding education rose 94,000.

The number of job openings decreased in durable goods manufacturing by 88,000 and in federal government by 62,000. 

May employment data were also revised sharply after the statistical agency reviewed additional reports from businesses and government. 

The number of job openings for May was revised up by 90,000 to 8.2 million, the number of hires was revised down by 101,000 to 5.7 million, and the number of total separations was revised down by 25,000 to 5.4 million. 

Within separations, the number of quits was revised down by 56,000 to 3.4 million, and the number of layoffs and discharges was revised up by 24,000 to 1.7 million.

U.S. Major Averages Drop as Tech Selloff Deepens, Nvidia Drops 6%

Alexander Garcia
30 Jul, 2024
Miami

U.S. indexes erased early gains, and tech-heavy indexes dropped sharply after investors sold artificial intelligence stocks. 

The S&P 500 index and the Nasdaq Composite fluctuated around the flatline in early trading but accelerated the decline in the afternoon following the 6% plunge in Nvidia. 

The sudden and swift decline in Nvidia drove down other chip stocks, lowering the Nasdaq and the S&P 500 index. 

Nvidia stock is down more than 20% from its high of $135 on July 10 as investors reassess the surge in artificial intelligence-linked stocks. 

Earnings dominated market sentiment amid a flood of quarterly results, including updates from Merck, Pfizer, JetBlue, F5, Woodward, and Procter & Gamble. 

Microsoft, Starbucks, and AMD are scheduled to release their quarterly results after the close of regular market trading hours. 

The Federal Reserve is also scheduled to announce its monetary policy decisions on Wednesday, and investors are widely anticipating the central bank to hold Fed Funds rates steady between 52.5% and 5.50%. 

On the economic front this week, investors are also awaiting the release of June's nonfarm payroll data. 

Job openings in June edged slightly lower to 8.18 million from 8.23 million in May, according to the Job Opening and Labor Turnover Survey released by the U.S. Bureau of Labor Statistics. 

The hiring levels declined by 554,000 over the year to 5.3 million, and the hire rate as a share of the workforce eased to 3.4%, the lowest since October 2013, excluding pandemic-era layoffs in April 2020.

The number of people quitting their jobs eased to 3.3 million, the lowest since November 2020. 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.8% to 5,421.80, the Nasdaq Composite declined 1.5% to 17,118.65, and the Russell 2000 index fell 0.1% to 2,232.35.

The yield on 2-year Treasury notes edged lower to 4.38%, 10-year Treasury notes decreased to 4.16%, and 30-year Treasury bonds decreased to 4.41%.

WTI crude oil decreased $0.65 to $75.15 a barrel, and natural gas prices edged up 20 cents to $2.10 a thermal unit.

Gold increased by $11.04 to $2,392.32 an ounce, and silver rose by $0.27 to $28.09. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.75.

U.S. Stock Movers 

JetBlue jumped 21.6% to $7.21 after the regional airline unexpectedly reported profit in its latest quarter. 

Procter & Gamble plunged 6% to $159.73, and the household products maker reported weaker-than-expected revenue due to weak sales in China. 

Merck & Company dropped 8.6% to $116.61 after the pharmaceutical company reported stronger-than-expected quarterly results, but the company's annual guidance fell short of investor expectations. 

Pfizer declined 2.9% to $116.61 despite the pharmaceutical company reporting better-than-expected second quarter results and lifting its annual outlook.

F5 Inc. soared 10.7% to $196.71 after the cyber security network management software company reported better-than-expected revenue and earnings in the fiscal third quarter. 

Woodward Inc. dropped 16.5% to $152.91, and the aerospace company's revenue in the fiscal third quarter of $847.7 million fell short of market expectations. 

European Markets Struggled to Advance, Steady GDP Growth In Eurozone 

European markets were mixed as investors reviewed a slew of corporate results and key economic data and awaited monetary policy decisions from major central banks. 

Benchmark indexes in London, Paris, and Frankfurt traded around flatline ahead of the U.S. Federal Reserve's monetary policy decisions on Wednesday. 

The Euro Area gross domestic product expanded 0.3% on quarter in the second quarter, matching the rate in the first quarter, Eurostat reported Tuesday. 

On an annual basis, seasonally adjusted GDP in the second quarter rose by 0.6% and by 0.7% in the eurozone and European Union and accelerated from 0.5% and 0.6% in the first quarter, respectively. 

Seasonally adjusted GDP from a year ago contracted in Germany by 0.1%, rose by 2.9% in Spain, 1.1% in France, and expanded 0.9% in Italy. 

In a separate report released by the French statistical office INSEE, GDP in the second quarter rose 0.3% sequentially and matched the upwardly revised rate in the first quarter. 

Total production rebounded in the second quarter to 0.5% from a decline of 0.1%, and household consumption was stable after shrinking 0.1% in the previous quarter, respectively. 

Europe Indexes and Yields

The DAX index increased by 0.5% to 18,411.18; the CAC-40 index rose by 0.4% to 7,474.94; and the FTSE 100 index decreased by 0.2% to 8,274.11.

The yield on 10-year German bonds edged higher to 2.35%, French bonds inched higher to 3.06%, the UK gilts inched higher to 4.05%, and Italian bonds increased to 3.75%.

The euro edged lower to $1.08; the British pound inched lower to $1.284; and the U.S. dollar weakened to 88.59 Swiss cents.

Brent crude decreased $0.92 to $78.85 a barrel, and the Dutch TTF natural gas fell by €5.38 to €39.25 per MWh.

Europe Stock Movers

Standard Chartered Bank increased 6.2% to 771.60 pence after the Asia-focused financial services company reported stronger-than-expected second quarter results.

The bank also announced a $1.5 billion stock repurchase plan. 

BP plc rose 1.3% to 458.85 pence after the energy company reported better-than-expected second quarter profit. 

The company reiterated its plans to buyback its stocks and increase its dividend. 

Revenue in the second quarter declined to $48.2 billion from $49.9 billion, net income attributable to shareholders swung to a loss of $129 million from a profit of $1.8 billion, and diluted earnings per share were a loss of 0.78 cents compared to a profit of 10 cents. 

Diageo plc dropped 6.6% to 2,380.0 pence after the spirits and alcohol drink distributor reported lower-than-expected annual profit. 

Net sales declined 1.4% to $2.03 billion from $20.6 billion, net income attributable to shareholders fell to $3.9 billion from $4.4 billion, and basic earnings per share fell to $1.73 from $1.96 a year ago. 

Ocado Group declined 6.4% to 404.80 pence after the UK-based online supermarket and technology group extended its debt maturity to fund its growth plans. 

Japan's Jobless Rate Eased In June, Komatsu Reiterated Outlook 

Stocks in Tokyo struggled to find a clear direction as the Bank of Japan kicked off its two-day policy meeting. 

The Nikkei 225 increased by 0.4% and the Topix declined by 0.2% as investors debated the future rate path amid growing calls for the central bank to provide clarity about its plan to shore up the yen. 

The Bank of Japan is expected to leave its key lending rate range unchanged between zero and 0.1%, despite growing calls for a rate hike and demands to support the faltering yen. 

The yen closed at 154.88 against the U.S. dollar in Tokyo trading as investors dialed down expectations of an imminent rate cut. 

Policymakers are also expected to provide clarity about the central bank's plans to taper the government bond purchase program over the next two years. 

On the economic front, Japan's unemployment rate unexpectedly declined to 2.5% in June, an improvement from 2.6% in May, according to the Ministry of Internal Affairs and Communications reported Tuesday. 

The number of employed people increased from 370,000 to 68.2 million, a record high since record-keeping began in 1953. 

The total number of jobless fell 3.3% to a seasonally adjusted 1.76 million, as voluntary separations declined in the month. 

The job availability ratio eased by 0.01 percentage points to 1.23, the third monthly decline, according to a separate report released by the Ministry of Health, Labor, and Welfare. 

The latest update showed that there were 123 jobs available for every 100 job seekers. 

Japan Movers 

The Nikkei 225 stock average increased by 0.4% to 38,525.95, and the Topix decreased by 0.2% to 2,754.45. 

Advantest Corp. increased 0.7% to ¥5,772.0, Tokyo Electron advanced 0.8% to ¥28,880.0, and Screen Holdings rebounded from a 0.5% loss to close unchanged at ¥11,810.0. 

Disco Corp. declined 1.7% to ¥46,750.0, Rakuten Group fell 1.6% to ¥889.70, and Nippon Electric Glass decreased 3.7% to ¥3,528.0. 

Komatsu dropped 4.8% to ¥4,304.0 despite the construction machinery maker reporting an increase in revenue and earnings in the fiscal first quarter ending in June. 

Sales in the quarter increased to 959.8 billion yen from 899.5 billion yen, net income rose to 109.7 billion yen from 105.4 billion yen, and diluted earnings per share rose to 116.47 yen from 111.48 yen a year ago. 

The company reiterated full-year sales to ease 0.1% to 3.86 trillion yen, net income to fall 11.8% to 347 billion yen, and diluted earnings per share to 366.81 yen. 

The company estimated the full-year dividend to remain unchanged at 167 yen per share. 

China Stocks Reverse Previous Day's Gains Ahead of Factory Activity Data 

Investors sat on the sidelines ahead of the release of key economic data on Wednesday and the tepid policy response. 

Market sentiment was reversed after indexes soared as much as 2% following the rebound in corporate profits for industrial enterprises in the period between January and June. 

The Hang Seng and the CSI 300 indexes declined around 1% ahead of the release of factory activity surveys. 

The official manufacturing purchasing managers' index is expected to ease to 49.4 in June from 49.5 in May, largely because of weak domestic demand growth. 

The Hang Seng index is set to close down for the second month in a row as investors dial down expectations of market-supportive measures from policymakers. 

China FDI Plunged 29% In the First Half 

Foreign direct investment in China dropped 29.1% from a year ago to 498.9 billion yuan in the first six months of the year, according to the ministry of commerce. 

High-tech manufacturing increased 2.4 percentage points to 12.8% of foreign investments; medical equipment and instrument investments soared 87.5%; and professional and technical services investments jumped 43.4%. 

Germany accounted for 18.1% of total foreign investment, followed by Singapore with 10.5%. 

China Stock Movers 

The Hang Seng index declined 1.3% to 17,022.25, and the CSI 300 index dropped 0.9% to 3,359.23. 

Tech stocks, electric vehicle makers, and financial stocks led the decline in Hong Kong. 

Tencent Holdings declined 1.4% to HK $353.40, Alibaba Group decreased 0.2% to HK $76.40, and Baidu increased 0.3% to HK $87.05. 

Wuxi Apptec increased 4% to HK $29.85, and the biotech company said net profit declined 20% to 4.2 billion yuan. 

Wuxi Biologics dropped 0.8% to HK $10.48. 

Li Auto decreased 0.3% to HK $73.65, BYD dropped 3.3% to HK $223.60, and Xpeng declined 3.6% to HK $31.30. 

China Mengniu Dairy Company dropped 6.6% to HK $12.60, and Haidilao International dropped 3.3% to HK $12.18. 

U.S. Indexes Wavered as Investors Weigh Latest Earnings Ahead of Fed's Rate Decisions

Barry Adams
30 Jul, 2024
New York City

U.S. indexes wavered as investors reviewed a fresh batch of earnings and awaited the Fed's rate decisions on Wednesday. 

The S&P 500 index and the Nasdaq Composite fluctuated around the flatline, but the small company-focused Russell 2000 index added nearly 1%. 

Earnings dominated market sentiment amid a flood of earnings, including results from Merck, Pfizer, JetBlue, F5, Woodward, and Procter & Gamble. 

Investors also looked forward to earnings after the close today from Microsoft, Starbucks, and AMD. 

On the economic front this week, investors are also awaiting the release of June's nonfarm payroll data and reviewing the JOLT report indicating labor market conditions. 

Job openings in June edged slightly lower to 8.18 million from 8.23 million in May, according to the Job Opening and Labor Turnover Survey by the U.S. Bureau of Labor Statistics. 

The Federal Reserve is also scheduled to announce its monetary policy decisions on Wednesday, and investors are widely anticipating the central bank to hold Fed Funds rates steady between 52.5% and 5.50%. 

The hiring levels declined by 554,000 over the year to 5.3 million, and the hire rate as a share of the workforce eased to 3.4%, the lowest since October 2013, excluding pandemic-era layoffs in April 2020.

The number of people quitting their jobs eased to 3.3 million, the lowest since November 2020.  

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 5,467.97, the Nasdaq Composite declined 0.2% to 17,342.78, and the Russell 2000 index rose 0.9% to 2,255.77.

The yield on 2-year Treasury notes edged lower to 4.38%, 10-year Treasury notes decreased to 4.16%, and 30-year Treasury bonds decreased to 4.41%.

WTI crude oil decreased $0.96 to $74.84 a barrel, and natural gas prices edged up 13 cents to $2.03 a thermal unit.

Gold increased by $6.70 to $2,388.65 an ounce, and silver declined by $0.05 to $27.86. 

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.75.

U.S. Stock Movers 

JetBlue jumped 21.6% to $7.21 after the regional airline unexpectedly reported profit in its latest quarter. 

Procter & Gamble plunged 6% to $159.73, and the household products maker reported weaker-than-expected revenue due to weak sales in China. 

Merck & Company dropped 8.6% to $116.61 after the pharmaceutical company reported stronger-than-expected quarterly results, but the company's annual guidance fell short of investor expectations. 

Pfizer declined 2.9% to $116.61 despite the pharmaceutical company reporting better-than-expected second quarter results and lifting its annual outlook.

F5 Inc. soared 10.7% to $196.71 after the cyber security network management software company reported better-than-expected revenue and earnings in the fiscal third quarter. 

Woodward Inc. dropped 16.5% to $152.91, and the aerospace company's revenue in the fiscal third quarter of $847.7 million fell short of market expectations. 

Europe Movers: BP plc, Clariant, Covestro, Diego. Standard Chartered Bank

Inga Muller
30 Jul, 2024
Frankfurt

The Euro Area GDP growth rate in the second quarter matched the first quarter, and Spain led the region with an increase of 2.9%. German GDP contracted by 0.1%. 

The DAX index increased by 0.5% to 18,399.36; the CAC-40 index rose by 0.4% to 7,471.95; and the FTSE 100 index decreased by 0.1% to 8,282.93.

The yield on 10-year German bonds edged higher to 2.35%, French bonds inched higher to 3.06%, the UK gilts inched higher to 4.05%, and Italian bonds increased to 3.75%.

Standard Chartered Bank increased 6.2% to 771.60 pence after the Asia-focused financial services company reported stronger-than-expected second quarter results.

The bank also announced a $1.5 billion stock repurchase plan. 

BP plc rose 1.3% to 458.85 pence after the energy company reported better-than-expected second quarter profit. 

The company reiterated its plans to buy back its stocks and increase its dividend. 

Revenue in the second quarter declined to $48.2 billion from $49.9 billion, net income attributable to shareholders swung to a loss of $129 million from a profit of $1.8 billion, and diluted earnings per share were a loss of 0.78 cents compared to a profit of 10 cents. 

Diageo plc dropped 6.6% to 2,380.0 pence after the spirits and alcohol drink distributor reported lower-than-expected annual profit. 

Net sales declined 1.4% to $2.03 billion from $20.6 billion, net income attributable to shareholders fell to $3.9 billion from $4.4 billion, and basic earnings per share fell to $1.73 from $1.96 a year ago. 

Ocado Group declined 6.4% to 404.80 pence after the UK-based online supermarket and technology group extended its debt maturity to fund its growth plans. 

Clariant AG declined 6.5% to CHF 13.55 after the Swiss chemical company reported a decline in second quarter profit due to lower prices and the company trimmed its annual sales outlook. 

Covestro AG increased 1.6% to €54.74 despite the German chemical company lowering the upper end of the full-year earnings estimate.   

Revenue in the second quarter declined 0.8% to €3.69 billion from €3.72 billion, net income swung to a loss of €72 million from a profit of €46 million, and earnings per share were a loss of 38 cents from a profit of 24 cents a year ago.