Market Update
Inflation Views and AI Optimism Lifted S&P 500 and Nasdaq 1%, ECB Held Rates Steady
Barry Adams
07 Mar, 2024
New York City
Benchmark indexes on Wall Street extended 2-day gains after struggling to advance in the previous three sessions.
Semiconductor stocks led the gainers amid the continuing enthusiasm about the boom related to artificial intelligence applications.
The market rally also gained steam after the European Central Bank lowered its view on inflation in 2024.
Treasury yields held steady ahead of the release of nonfarm payroll data on Friday, and investors reviewed the slight decline in the number of job openings to 8.9 million at the end of January, released on Wednesday.
Initial jobless claims in the week ending on March 2 held steady at 217,000, up from the previous week's revised level, the Department of Labor reported Thursday.
Market indexes are trading near record highs, and sentiment remains positive despite the growing consensus that interest rates are likely to stay higher for at least three more months.
The four-week moving average eased from 750 to 212,250 from the previous week's revised level of 213,000.
U.S. Trade Gap Rebounds to 9-month High
The U.S. goods and services trade deficit increased to $67.4 billion in January from the revised $64.2 billion in December, the Bureau of Economic Analysis reported Thursday.
The trade deficit in goods and services was the widest in nine months, after exports struggled to advance and imported energy rebounded.
Exports edged up 0.1% to $257.2 billion, and imports advanced 1.1% to $324.6 billion.
The goods and services deficit decreased $2.9 billion from a year ago, or 4.1%, after exports fell 0.4%, or $1.0 billion, and imports decreased 1.2%, or $3.9 billion.
The January increase in the goods and services deficit reflected an increase in the goods deficit of $3.0 billion to $91.6 billion and a decrease in the services surplus of $0.3 billion to $24.2 billion.
The U.S. recorded a goods deficit with China of $22.9 billion, the European Union $18.1 billion, Mexico $12.7 billion, Vietnam $8.5 billion, Japan $7.3 billion, Germany $6.3 billion, Ireland $6.0 billion, Canada $5.7 billion, South Korea $5.5 billion, Taiwan $4.8 billion, Italy $3.8 billion, and India $3.7 billion.
U.S. Indexes and Yields
The S&P 500 index increased 0.9% to 5,147.90, and the Nasdaq Composite advanced 1.2% to 16,229.52.
The yield on 2-year Treasury notes decreased to 4.55%, 10-year Treasury notes inched down to 4.08%, and 30-year Treasury bonds edged down to 4.22%.
WTI crude oil decreased $0.16 to $78.96 a barrel, and natural gas prices decreased 6 cents to $1.86 a thermal unit.
Gold increased by $7.50 to $2,155.90 an ounce, and silver rose 23 cents to $24.39.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.23.
U.S. Stock Movers
American Eagle jumped 11.7% to $26.20 after the specialty apparel retailer reported better-than-expected quarterly results.
The company also took on an impairment and restructuring charge of $98.3 million related to its internal logistics business, Quiet Platform, which the company put together through various acquisitions during the COVID-19 pandemic years between 2020 and 2022.
Revenue in the holiday quarter increased 12% to $1.68 billion from $1.5 billion, net income plunged to $6.3 million from $54.6 million, and diluted earnings per share dropped to 3 cents from 28 cents a year ago.
Novo Nordisk increased 6.7% to $133.22 after the Danish pharmaceutical company announced positive Phase 1 trial data for its experimental obesity drug, amycretin.
New York Community Bancorp advanced 1.1% to $3.50 after the company announced a $1 billion capital raise on Wednesday.
Victoria's Secret dropped 27.4% to $18.60 after the specialty apparel retailer reported mixed quarterly results and announced an outlook that fell short of market expectations.
ECB Holds Rates and Lowers Inflation and Growth Outlook
European markets rebounded, and investors reacted positively to the monetary policy decisions from the European Central Bank and comments from President Christine Lagarde.
Benchmark indexes in Frankfurt, Paris, and London lacked direction in subdued trading as investors focused on rate decisions, the growth outlook, and inflation views from the European Central Bank.
The European Central Bank as widely expected held rates steady for the fourth time in a row, and policymakers lowered economic growth outlook and inflation expectations.
The central bank acknowledged that inflation is falling faster than anticipated, but policymakers signaled that rates are likely to stay higher as long needed.
“We are in the disinflationary process and we are making progress,” ECB President Lagarde said during a press conference on Thursday.
President Lagarde also signaled rate cut is likely after June meeting added that market view "seems to be converging better" with the policymakers at the ECB.
The main refinancing operation stayed at 22-year high of 4.5%, and deposit facility rate unchanged at 4%.
The central bank also lowered its 2024 estimate of inflation to 2.3% from 2.7%, and economic growth outlook was lowered to 0.6% from 0.8% estimated in December.
Market indexes are trading near record highs in Paris and Frankfurt as investors react positively to rising corporate earnings despite the weak economic backdrop.
German Factory Orders Dropped In January
On the economic front, German factory orders declined sharply in January following a high volume of large orders in the previous month.
New manufacturing orders adjusted for seasonal and calendar factors decreased 11.3% from the previous month, and December orders were revised to a jump of 12%, Destatis reported Thursday.
On an annual basis, factory orders declined 6.0%.
In all three main groups, orders declined, capital goods fell 13.1%, intermediate goods declined 9.3%, and consumer goods eased 5.7%.
Domestic and foreign orders fell during the month.
Foreign orders fell by 11.4%, and orders from the Eurozone decreased by 25.7%. Orders from outside the eurozone, however, rose by 1.6%.
Domestic orders fell by 11.2%, largely because of the higher base effect in the previous month.
UK Home Price Growth Slowed In February
Home prices rose at a slower pace in February, signaling relatively stable home prices at the start of 2024, according to the mortgage lender Halifax.
The Halifax House Price Index rose 1.7% in February, slower than the revised 2.3% growth in the previous month.
On a monthly basis, home prices rose 0.4%, an increase for the fifth month in a row, supported by a decline in mortgage rates and rising wages.
The home price in London led all regions with an average price of £536,996.
Europe Indexes and Yields
The DAX index increased by 0.8% to 17,856.26, the CAC-40 index rose by 0.8% to 8,018.42, and the FTSE 100 index inched higher by 0.2% to 7,692.46.
The yield on 10-year German bonds edged down to 2.31%; French bonds inched lower to 2.76%; the UK gilts edged lower to 4.01%; and Italian bonds inched lower to 3.64%.
The euro edged higher to $1.089, the British pound inched higher to $1.276, and the U.S. dollar weakened to 88.09 Swiss cents.
Brent crude decreased $0.08 to $82.87 a barrel, and the Dutch TTF natural gas decreased by €0.47 to €26.11 per MWh.
Europe Stock Movers
Stellantis NV increased 0.04%, and the Italian automaker said it plans to invest €5.6 billion in South America between 2025 and 2030.
Grafton Group decreased 0.8% to 957.50 pence after home improvement retailer reported 2023 pre-tax profit declined 27% from the previous year.
Aviva plc rose 2.3% to 465.40 pence after the UK-based insurance company reported a 9% increase in annual operating profit.
Hugo Boss dropped 17.4% to €52.24 after the German fashion house warned that 2024 operating profit is likely to lag market expectations.
Deutsche Lufthansa declined 0.3% to €7.02 after the German airline signaled a subdued outlook for the fiscal year 2024.
Continental AG decreased 3% to €70.56 after the German tire maker reported annual operating results that fell short of market expectations.
Virgin Money UK jumped 37% to 216.20 pence after the Nationwide Building Society agreed to acquire the lender for £2.9 billion.
Earning Worries In China and Rate Jitters in Japan Dominate Asian Trading
Asian markets traded mixed amid rate uncertainties, rising geopolitical tensions between China and the U.S., and growing worries of deflation in China.
U.S. Federal Reserve Chairman Jerome Powell reiterated the central bank's stance to hold interest rates but confirmed that rates are likely to go down later in the year.
Powell added that it is too early to discuss a rate cut until there are signs of a sustained decline in inflation to 2%.
In addition, later in the day, the European Central Bank is set to announce its rate decision and growth outlook.
Investors are looking for the central bank to hold rates steady, which may provide insights into the future direction of interest rates.
Nikkei In Tokyo Turned Lower Amid BoJ Rate Decision Speculations
Benchmark indexes in Tokyo traded at a new intra-day high before receding after the yen fell below 149 against the dollar in the hopes that the Bank of Japan is likely to end its ultra-loose monetary policy as early as this month.
Investors also reacted negatively to the real wage decline of 0.6% in February. Real wages fell for the 22nd month in a row, but the decrease was the smallest in eleven months amid weakening goods and service prices in the economy.
The Nikkei 225 Stock Average declined 1.3% to 39,593.69, and the Topix index fell 0.4% to 2,718.23.
Financial stocks trimmed gains in the afternoon trading, and Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial Group rose between 1% and 3%.
Tech stocks were among the leading decliners, and Advantest, Tokyo Electron, Screen Holdings, and Disco Corp. dropped between 3% and 6%.
SoftBank bucked the trend and gained 1.4% to ¥8,997.0.
China Stocks Extend Weekly Losses
Stocks in Shanghai and Hong Kong struggled to stay above the flatline amid rising geopolitical tensions.
Market sentiment was dented after lawmakers in the annual parliamentary session failed to announce specific stimulus to stabilize financial markets.
Investors overlooked stronger-than-expected exports in the January–February months, and the smaller-than-expected increase in imports suggested persistent broader economic weakness.
The U.S. Senate committee advanced a bill that will prevent federal agencies from doing business with certain Chinese biotech companies linked to "foreign adversaries."
The CSI 300 index decreased 0.4% to 3,536.13, and the Hang Seng index fell 0.6% to 16,339.12.
Wuxi Biologics plunged 21.2% to HK$17.12 and Wuxi AppTec plunged 17% to HK$46.85, extending this year's losses to 40% and 38%, respectively.
JD.com jumped 6% to HK$95.30 after the e-commerce company reported better-than-expected earnings.
BYD declined 1.9% to HK$190.0 after the electric vehicle maker announced its plan to buyback 400 million yuan, or $55.5 million, of its shares.
China's Goods Exports Surpass Estimates
China's exports and imports rose more than expected during the January–February period.
China's exports soared 7.1% to $528 billion in the two-month period, following a 2.3% increase in December, the General Administration of Customs reported Thursday.
China's trade surplus in the two-month period soared to $125.2 billion from $104.4 billion in December.
In 2023, China's exports eased 4.6% to $3.38 trillion and imports declined 5.5% to $2.56 trillion, resulting in a trade surplus of $823 billion.
India's Economic Growth Likely to Surpass Target Rate
Stocks in Mumbai opened higher tracking gains in overnight trading in New York.
The Sensex and the Nifty indexes danced around the flatline as investors debated interest rate outlooks at home and abroad.
Market sentiment was positive after Reserve Bank of India Governor Shaktikanta Das, in an interview with ETNow on Wednesday, said fiscal fourth quarter economic growth is likely to surpass the 5.9% estimate suggested by the statistical agency.
Governor Das added that there is a "good chance" that fiscal year 2024 economic growth will be "close to 8.0%," but he reiterated the fiscal 2025 outlook at 7.0%.
The Sensex index increased 0.02% to 74,108.98, and the Nifty index rose 0.03% to 22,482.90.
On the Mumbai stock exchange, 61 stocks traded at their 52-week highs and 21 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.05%, and the Indian rupee strengthened to ₹82.82 against the U.S. dollar.
U.S. Movers: American Eagle, New York Community Bancorp, Novo Nordisk, Victoria's Secret
Scott Peters
07 Mar, 2024
New York City
American Eagle jumped 11.7% to $26.20 after the specialty apparel retailer reported better-than-expected quarterly results.
The company also took on an impairment and restructuring charge of $98.3 million related to its internal logistics business, Quiet Platform, which the company put together through various acquisitions during the COVID-19 pandemic years between 2020 and 2022.
Revenue in the holiday quarter increased 12% to $1.68 billion from $1.5 billion, net income plunged to $6.3 million from $54.6 million, and diluted earnings per share dropped to 3 cents from 28 cents a year ago.
Novo Nordisk increased 6.7% to $133.22 after the Danish pharmaceutical company announced positive Phase 1 trial data for its experimental obesity drug, amycretin.
New York Community Bancorp advanced 1.1% to $3.50 after the company announced a $1 billion capital raise on Wednesday.
Victoria's Secret dropped 27.4% to $18.60 after the specialty apparel retailer reported mixed quarterly results and announced an outlook that fell short of market expectations.
Tech Stocks Power S&P 500 and Nasdaq Gains
Barry Adams
07 Mar, 2024
New York City
Benchmark indexes on Wall Street attempted to rebound for the second day in a row after struggling to advance in the previous three sessions.
Semiconductor stocks led the gainers amid the continuing enthusiasm about the boom related to artificial intelligence applications.
Treasury yields held steady ahead of the release of nonfarm payroll data on Friday, and investors reviewed the slight decline in the number of job openings to 8.9 million at the end of January.
Market indexes are trading near record highs, and sentiment remains positive despite the growing consensus that interest rates are likely to stay higher for at least three more months.
U.S. Indexes and Yields
The S&P 500 index increased 0.7% to 5,140.89, and the Nasdaq Composite advanced 0.9% to 16,163.79.
The yield on 2-year Treasury notes decreased to 4.55%, 10-year Treasury notes inched down to 4.08%, and 30-year Treasury bonds edged down to 4.22%.
WTI crude oil decreased $0.39 to $78.73 a barrel, and natural gas prices decreased 1 cent to $1.93 a thermal unit.
Gold increased by $10.46 to $2,158.89 an ounce, and silver rose 9 cents to $24.25.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.23.
U.S. Stock Movers
American Eagle jumped 11.7% to $26.20 after the specialty apparel retailer reported better-than-expected quarterly results.
The company also took on an impairment and restructuring charge of $98.3 million related to its internal logistics business, Quiet Platform, which the company put together through various acquisitions during the COVID-19 pandemic years between 2020 and 2022.
Revenue in the holiday quarter increased 12% to $1.68 billion from $1.5 billion, net income plunged to $6.3 million from $54.6 million, and diluted earnings per share dropped to 3 cents from 28 cents a year ago.
Novo Nordisk increased 6.7% to $133.22 after the Danish pharmaceutical company announced positive Phase 1 trial data for its experimental obesity drug, amycretin.
New York Community Bancorp advanced 1.1% to $3.50 after the company announced a $1 billion capital raise on Wednesday.
Victoria's Secret dropped 27.4% to $18.60 after the specialty apparel retailer reported mixed quarterly results and announced an outlook that fell short of market expectations.
Europe Movers: Aviva, Continental, Grafton, Hugo Boss, Lufthansa, Stellantis, Virgin Money
Inga Muller
07 Mar, 2024
Frankfurt
European markets tread water ahead of monetary policy announcements by the European Central Bank.
Investors are widely anticipating policymakers holding rates and may signal about the possible rate cut timing later in the year.
The DAX index decreased by 0.3% to 17,670.55, the CAC-40 index rose by 0.3% to 7,938.50, and the FTSE 100 index inched higher by 0.3% to 7,658.65.
The yield on 10-year German bonds edged down to 2.31%; French bonds inched lower to 2.76%; the UK gilts edged lower to 4.01%; and Italian bonds inched lower to 3.64%.
Stellantis NV increased 0.04%, and the Italian automaker said it plans to invest €5.6 billion in South America between 2025 and 2030.
Grafton Group decreased 0.8% to 957.50 pence after home improvement retailer reported 2023 pre-tax profit declined 27% from the previous year.
Aviva plc rose 2.3% to 465.40 pence after the UK-based insurance company reported a 9% increase in annual operating profit.
Hugo Boss dropped 17.4% to €52.24 after the German fashion house warned that 2024 operating profit is likely to lag market expectations.
Deutsche Lufthansa declined 0.3% to €7.02 after the German airline signaled a subdued outlook for the fiscal year 2024.
Continental AG decreased 3% to €70.56 after the German tire maker reported annual operating results that fell short of market expectations.
Virgin Money UK jumped 37% to 216.20 pence after the Nationwide Building Society agreed to acquire the lender for £2.9 billion.
German Factory Orders Plunged, Nationwide Building Society Agreed to Buy Virgin Money
Bridgette Randall
07 Mar, 2024
Frankfurt
European markets lacked direction, and investors awaited monetary policy decisions from the European Central Bank and comments from President Christine Lagarde later in the day.
Benchmark indexes in Frankfurt, Paris, and London lacked direction in subdued trading as investors focused on rate decisions, the growth outlook, and inflation views from the European Central Bank.
The European Central Bank is widely expected to hold rates steady for the fourth time in a row, and policymakers may signal future rate cut timing.
Market indexes are trading near record highs in Paris and Frankfurt as investors react positively to rising corporate earnings despite the weak economic backdrop.
German Factory Orders Dropped In January
On the economic front, German factory orders declined sharply in January following a high volume of large orders in the previous month.
New manufacturing orders adjusted for seasonal and calendar factors decreased 11.3% from the previous month, and December orders were revised to a jump of 12%, Destatis reported Thursday.
On an annual basis, factory orders declined 6.0%.
In all three main groups, orders declined, capital goods fell 13.1%, intermediate goods declined 9.3%, and consumer goods eased 5.7%.
Domestic and foreign orders fell during the month.
Foreign orders fell by 11.4%, and orders from the Eurozone decreased by 25.7%. Orders from outside the eurozone, however, rose by 1.6%.
Domestic orders fell by 11.2%, largely because of the higher base effect in the previous month.
UK Home Price Growth Slowed In February
Home prices rose at a slower pace in February, signaling relatively stable home prices at the start of 2024, according to the mortgage lender Halifax.
The Halifax House Price Index rose 1.7% in February, slower than the revised 2.3% growth in the previous month.
On a monthly basis, home prices rose 0.4%, an increase for the fifth month in a row, supported by a decline in mortgage rates and rising wages.
The home price in London led all regions with an average price of £536,996.
Europe Indexes and Yields
The DAX index decreased by 0.3% to 17,670.55, the CAC-40 index rose by 0.3% to 7,938.50, and the FTSE 100 index inched higher by 0.3% to 7,658.65.
The yield on 10-year German bonds edged down to 2.31%; French bonds inched lower to 2.76%; the UK gilts edged lower to 4.01%; and Italian bonds inched lower to 3.64%.
The euro edged higher to $1.089, the British pound inched higher to $1.276, and the U.S. dollar weakened to 88.09 Swiss cents.
Brent crude decreased $0.38 to $82.58 a barrel, and the Dutch TTF natural gas increased by €0.02 to €26.55 per MWh.
Europe Stock Movers
Stellantis NV increased 0.04%, and the Italian automaker said it plans to invest €5.6 billion in South America between 2025 and 2030.
Grafton Group decreased 0.8% to 957.50 pence after home improvement retailer reported 2023 pre-tax profit declined 27% from the previous year.
Aviva plc rose 2.3% to 465.40 pence after the UK-based insurance company reported a 9% increase in annual operating profit.
Hugo Boss dropped 17.4% to €52.24 after the German fashion house warned that 2024 operating profit is likely to lag market expectations.
Deutsche Lufthansa declined 0.3% to €7.02 after the German airline signaled a subdued outlook for the fiscal year 2024.
Continental AG decreased 3% to €70.56 after the German tire maker reported annual operating results that fell short of market expectations.
Virgin Money UK jumped 37% to 216.20 pence after the Nationwide Building Society agreed to acquire the lender for £2.9 billion.
Rate Worries Drag Down Nikkei 1%, China's Surge In Exports Fail to Halt Market Slide
Arjun Pandit
07 Mar, 2024
Mumbai
Asian markets traded mixed amid rate uncertainties, rising geopolitical tensions between China and the U.S., and growing worries of deflation in China.
U.S. Federal Reserve Chairman Jerome Powell reiterated the central bank's stance to hold interest rates but confirmed that rates are likely to go down later in the year.
Powell added that it is too early to discuss a rate cut until there are signs of a sustained decline in inflation to 2%.
In addition, later in the day, the European Central Bank is set to announce its rate decision and growth outlook.
Investors are looking for the central bank to hold rates steady, which may provide insights into the future direction of interest rates.
Nikkei In Tokyo Turned Lower Amid BoJ Rate Decision Speculations
Benchmark indexes in Tokyo traded at a new intra-day high before receding after the yen fell below 149 against the dollar in the hopes that the Bank of Japan is likely to end its ultra-loose monetary policy as early as this month.
Investors also reacted negatively to the real wage decline of 0.6% in February. Real wages fell for the 22nd month in a row, but the decrease was the smallest in eleven months amid weakening goods and service prices in the economy.
The Nikkei 225 Stock Average declined 1.3% to 39,593.69, and the Topix index fell 0.4% to 2,718.23.
Financial stocks trimmed gains in the afternoon trading, and Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial Group rose between 1% and 3%.
Tech stocks were among the leading decliners, and Advantest, Tokyo Electron, Screen Holdings, and Disco Corp. dropped between 3% and 6%.
SoftBank bucked the trend and gained 1.4% to ¥8,997.0.
China Stocks Extend Weekly Losses
Stocks in Shanghai and Hong Kong struggled to stay above the flatline amid rising geopolitical tensions.
Market sentiment was dented after lawmakers in the annual parliamentary session failed to announce specific stimulus to stabilize financial markets.
Investors overlooked stronger-than-expected exports in the January–February months, and the smaller-than-expected increase in imports suggested persistent broader economic weakness.
The U.S. Senate committee advanced a bill that will prevent federal agencies from doing business with certain Chinese biotech companies linked to "foreign adversaries."
The CSI 300 index decreased 0.4% to 3,536.13, and the Hang Seng index fell 0.6% to 16,339.12.
Wuxi Biologics plunged 21.2% to HK$17.12 and Wuxi AppTec plunged 17% to HK$46.85, extending this year's losses to 40% and 38%, respectively.
JD.com jumped 6% to HK$95.30 after the e-commerce company reported better-than-expected earnings.
BYD declined 1.9% to HK$190.0 after the electric vehicle maker announced its plan to buyback 400 million yuan, or $55.5 million, of its shares.
China's Goods Exports Surpass Estimates
China's exports and imports rose more than expected during the January–February period.
China's exports soared 7.1% to $528 billion in the two-month period, following a 2.3% increase in December, the General Administration of Customs reported Thursday.
China's trade surplus in the two-month period soared to $125.2 billion from $104.4 billion in December.
In 2023, China's exports eased 4.6% to $3.38 trillion and imports declined 5.5% to $2.56 trillion, resulting in a trade surplus of $823 billion.
India's Economic Growth Likely to Surpass Target Rate
Stocks in Mumbai opened higher tracking gains in overnight trading in New York.
The Sensex and the Nifty indexes danced around the flatline as investors debated interest rate outlooks at home and abroad.
Market sentiment was positive after Reserve Bank of India Governor Shaktikanta Das, in an interview with ETNow on Wednesday, said fiscal fourth quarter economic growth is likely to surpass the 5.9% estimate suggested by the statistical agency.
Governor Das added that there is a "good chance" that fiscal year 2024 economic growth will be "close to 8.0%," but he reiterated the fiscal 2025 outlook at 7.0%.
The Sensex index increased 0.02% to 74,108.98, and the Nifty index rose 0.03% to 22,482.90.
On the Mumbai stock exchange, 61 stocks traded at their 52-week highs and 21 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.05%, and the Indian rupee strengthened to ₹82.82 against the U.S. dollar.
India Movers: Hindustan Aeronautics, IIFL, Jupiter Wagons, LIC, Mukka Proteins, NLC, Subex, Zomato
Arun Goswami
07 Mar, 2024
Mumbai
LIC decreased 1.5% to ₹1,011.50, and the largest insurance company in India increased its stake in its mutual funds subsidiary.
LIC increased its stake in LIC Mutual Fund Asset Management to 44.61% from 40.93% through a private placement.
NLC India decreased 0.1% to ₹226.0, and the central government plans to sell as much as a 7% stake in the coal mining company and raise ₹2,000 crore.
Hindustan Aeronautics declined 0.2% to ₹3,229.90, and the company said its light combat aircraft Tejas contract has been revised to ₹5,077.95 crore from ₹2,700.87 crore.
IIFL Finance plunged 20% to ₹382.20 after the Reserve Bank of India banned the company from issuing loans against gold.
The company said Fairfax India Holdings has agreed to provide $200 million of liquidity after the Reserve Bank's ban.
Zomato declined 2.6% to ₹161.70, and Morgan Stanley Asia acquired ₹909.5 crore in stake in the online food ordering and delivery company after Antfin sold its stake in the company.
Tata Motors increased 0.3% to ₹1,025.0, and Moody's Investors Service reaffirmed Tata Motor's corporate debt rating at "Ba3" and issued a positive outlook after the vehicle maker plans to split its passenger and commercial vehicle businesses.
Subex increased 4.5% to ₹38.0, and the company won an order to provide fraud management and business assurance software for a telecom company in Southeast Asia.
Jupiter Wagons soared 9.9% to ₹398.0 after the company won a ₹956 crore order to supply 2,237 wagons to the Ministry of Railways.
Mukka Proteins is set to list its stock on Thursday after the company raised ₹244 crore in an initial public offering and priced its share at ₹28 per share.
U.S. Job Openings Held Steady In January
Brian Turner
06 Mar, 2024
New York City
The number of job openings decreased by 86,000 to 8.9 million in January from the previous month, the U.S. Bureau of Labor Statistics reported Wednesday in its monthly Job Openings and Labor Turnover Survey.
The job openings measure is down from a series high of 12.2 million in March 2022.
In January, job openings increased in nondurable goods manufacturing by 82,000 but decreased in private educational services by 41,000.
Over the month, the number of hires and total separations were little changed, at 5.7 million and 5.3 million, respectively.
The number of job openings for December was revised down by 137,000 to 8.9 million, the number of hires was revised up by 166,000 to 5.8 million, and the number of total separations was revised up by 54,000 to 5.4 million.
In 2023, the annual average job opening level was 9.4 million, a decrease of 1.8 million from 2022. The annual average job opening rate was 5.7 percent in 2023, compared to 6.8 percent in 2022.
S&P 500 and Nasdaq Advanced 1%, World Markets Look Beyond Rate Jitters
Barry Adams
06 Mar, 2024
New York City
Stocks on Wall Street edged higher after two losing sessions in a row, and investors reviewed updates on the labor market.
The S&P 500 index and the Nasdaq Composite advanced, and semiconductor and large-cap tech stocks led the gainers.
Investors also reviewed Federal Reserve Chairman Jerome Powell's prepared comments to be delivered to lawmakers on Capitol Hill.
Fed Chair Powell reiterated the central bank's stand to keep interest rates restrictive and not ease inflation too early.
“The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” Powell added in his comments.
Despite the Fed's tough talk, the central bank has expanded the broad money supply by 45% during the three years of the COVID-19 pandemic between 2020 and 2022, driving up food, automobile, and home prices by more than 100%.
U.S. Job Openings Held Steady
The number of job openings decreased by 86,000 to 8.9 million in January from the previous month, the U.S. Bureau of Labor Statistics reported Wednesday in its monthly Job Openings and Labor Turnover Survey.
The job openings measure is down from a series high of 12.2 million in March 2022.
In January, job openings increased in nondurable goods manufacturing by 82,000 but decreased in private educational services by 41,000.
Over the month, the number of hires and total separations were little changed, at 5.7 million and 5.3 million, respectively.
The number of job openings for December was revised down by 137,000 to 8.9 million, the number of hires was revised up by 166,000 to 5.8 million, and the number of total separations was revised up by 54,000 to 5.4 million.
In 2023, the annual average job opening level was 9.4 million, a decrease of 1.8 million from 2022. The annual average job opening rate was 5.7 percent in 2023, compared to 6.8 percent in 2022.
U.S. Private Payrolls Expanded In February
Private payrolls expanded in February by 140,000 after growing by an upwardly revised 111,000 in January, payroll processing company ADP reported Wednesday.
In the month, leisure and hospitality led job increases across all industries with a gain of 41,000, followed by construction with 28,000, utilities with 27,000, and financial services with 17,000.
U.S. Indexes and Yields
The S&P 500 index decreased 0.9% to 5,085.84, and the Nasdaq Composite decreased 1.5% to 15,963.81.
The yield on 2-year Treasury notes decreased to 4.58%, 10-year Treasury notes inched down to 4.14%, and 30-year Treasury bonds edged down to 4.28%.
WTI crude oil decreased $1.01 to $79.13 a barrel, and natural gas prices decreased 1 cent to $1.97 a thermal unit.
Gold increased by $8.53 to $2,136.23 an ounce, and silver rose 11 cents to $23.79.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.88.
U.S. Stock Movers
Nordstrom plunged 9.2% to $18.87 after the department store chain reported better-than-expected results in the fiscal fourth quarter, but the company's 2024 guidance for the current year fell short of market expectations.
CrowdStrike Holdings soared 22.5% to $364.59 after the cyber security company reported better-than-expected quarterly results.
Box jumped 4.6% to $28.50 after the cloud storage company reported revenue in line with analysts' estimates.
Foot Locker plunged 11.1% to $30.50 after the athletic footwear retailer reported a loss in its latest quarter and the company guided weaker-than-expected sales in the current year.
Abercrombie & Fitch declined 2% to $137.01 despite the apparel retailer reporting better-than-expected sales in the holiday quarter and the company's positive outlook for the current year.
Sales in the quarter ending on January 28 increased 21% to $1.45 billion from $1.2 billion, net income advanced to $158.4 million from $38.3 million, and diluted earnings per share rose to $2.97 from 75 cents a year ago.
The retailer estimated sales in the current quarter to rise by a low double-digit percentage and increase between 4% and 6% in the fiscal year.
European Markets Edged Higher Awaiting Rate Decisions and Growth Outlook
Stock market indexes in Europe edged higher, and investors reviewed the latest economic updates and awaited the release of the UK's general budget.
Benchmark indexes in Frankfurt, Paris, and London inched higher ahead of the European Central Bank's rate decisions on Thursday.
Eurozone Retail Sales Barely Advanced in January
Retail sales in the eurozone increased by 0.1% in January from the previous month, following a revised 0.6% contraction in December, Eurostat reported Wednesday.
Retail sales adjusted for the calendar decreased 1.0% from a year ago, and fell for the sixteenth month in a row.
Volume of food, drinks, and tobacco from a year ago declined by 0.6%, automotive fuel increased by 0.8%, and nonfood products declined by 1.4%.
German Trade Surplus Expands to Record High In January
German exports rose faster than imports, driving the trade surplus to a record high in January, indicating a strong demand for German goods.
Exports rose 6.3% monthly and edged up 0.3% annually to €135.6 billion, and imports rose 3.6% monthly but dropped 8.3% annually to €108 billion.
Most German exports were shipped to the U.S., followed by transactions with the People's Republic of China and the U.K.
Exports to the U.S. decreased 1.7% monthly to 12.5 billion, to China increased 7.8% to 8.1 billion, and to the U.K. decreased 8.1% to 6.8 billion.
Meanwhile, most imports arrived from China, followed by shipments from the U.S. and the U.K.
Imports from China decreased 11.1% to €10.4 billion, from the U.S. fell 5.2% to €7.8 billion, and from the U.K. increased 18.4% to €3.1 billion.
Calendar and seasonally adjusted goods exports to the European Union member states increased 8.9% to €75.8 billion, and imports rose 10.8% to €61.2 billion.
The goods trade surplus in January widened to €27.5 billion from €23.3 billion in December and €16.9 billion a year ago.
Europe Indexes and Yields
The DAX index increased by 0.05% to 17,708.60, the CAC-40 index rose by 0.3% to 7,955.77, and the FTSE 100 index inched higher by 0.3% to 7,671.70.
The yield on 10-year German bonds edged down to 2.35%; French bonds inched lower to 2.81%; the UK gilts edged lower to 4.05%; and Italian bonds inched lower to 3.72%.
The euro edged higher to $1.087, the British pound inched higher to $1.272, and the U.S. dollar weakened to 88.45 Swiss cents.
Brent crude increased $1.99 to $84.03 a barrel, and the Dutch TTF natural gas increased by €0.67 to €26.80 per MWh.
Europe Stock Movers
Legal & General Group declined 2.2% to 239.91 pence after the UK-based insurance company reported flat operating profit in 2023.
DS Smith increased 0.5% to 321.90 pence after the paperboard and packaging company reported better-than-expected fiscal third quarter profit and the company estimated a positive outlook in the current quarter.
Deutsche Post declined 5.8% to €39.27 after the parent company of DHL cautioned against flat annual earnings in the current fiscal year.
Symrise advanced 4.9% to €100.90 after the German flavor and fragrance company reported a better-than-expected core annual profit in 2023.
Tullow Oil fell 0.5% to 28.11 pence after the independent energy company reported a decline in pre-tax profit on lower crude oil prices and impairment charges.
Total revenue in 2023 declined to $1.6 billion from $1.8 billion, net income from continuing activities swung to a loss of $110 million from a profit of $49 million, and basic earnings per share were 7.6 cents a loss compared to 3.4 cents a profit a year ago.
Energy production in the quarter increased to 55,754 from 55,170, but the realized oil price fell to $77.50 from $88.0 a year ago.
China Struggle with Growth Initiatives, Australian Economy Barely Expanded
Stock markets in Asia moderately declined amid a lack of economic news, and investors focused on China's annual gathering of lawmakers.
Elsewhere in the region, Australia's economy expanded 0.2% in the fourth quarter from the previous quarter, its ninth quarterly expansion in a row, the Australian Bureau of Statistics reported Wednesday.
Australia's economy expanded at an annual pace of 1.5% in the fourth quarter, the slowest pace of growth in three years.
For all of 2023, Australia clocked a 1.5% increase, largely driven by a rise in net exports, and consumer spending barely rose 0.1%.
When counting the rising population in Australia, GDP per person actually shrank 1.0% in 2023.
Japan Indexes Hold Steady Near Record Highs
Stocks in Japan lacked direction following the weakness in New York in overnight trading.
Tech stocks struggled for the second day in a row but traded near record highs as investors increased allocations to semiconductor-related companies that are likely to benefit from the boom in artificial intelligence applications.
The Nikkei 225 Stock Average held steady at 40,098.24, and the Topix index gained 0.4% to 2,730.81.
Tokyo Electron, Disco Corp., Screen Holdings, SoftBank, and Renesas Electronics decreased between 1% and 2%.
Fast Retailing declined 0.7%, but Isetan Mitsukoshi advanced 2.9%.
Among large banks, Mizuho Financial and Sumitomo Mitsui Financial advanced more than 1%, while Mitsubishi UFJ Financial added 0.5%.
China Stocks Struggle as Lawmakers Discuss Broader Issues
Stocks in Shanghai advanced in cautious trading as investors held out for more targeted financial and property market reforms.
However, market indexes in Hong Kong rebounded on speculation that the latest property reforms in the city are enough to revive the moribund local property market and rising interest from mainland buyers.
Investors are more focused on corporate earnings than the big-picture discussions by policymakers during the 7-day gathering of the rubber-stamp parliament and Chinese leaders.
Investors are generally disappointed with the lack of specific stimulus measures at the annual parliamentary meeting, arbitrary implementation at local levels, and rising debt levels at the central and local levels.
Foreign investors are still lowering their allocation to Chinese stocks on the grounds of inconsistent economic reforms, a lack of earnings visibility, and expanded anti-espionage and anti-national security laws that could endanger intellectual property.
Despite the gains in today's trading, the benchmark index in Hong Kong is the worst-performing market among the largest ten financial markets in the world.
The CSI 300 index edged up a fraction to 3,568.20, and the Hang Seng index rebounded 2.3% to 16,539.01.
Tech stocks advanced in Hong Kong ahead of JD.com's financial results in the hopes that the e-commerce company is set to announce earnings gains of at least 50% later today.
Alibaba.com Group, Tencent, Meituan, and Baidu.com gained between 2% and 4%.
Banks also participated in the rally, and HSBC and China Merchants Bank gained 2% and 4%, respectively.
India Indexes Struggle to Advance Amid Valuation Worries and Higher Interest Rates
Stocks in Mumbai faced selling pressure, and valuation worries kept investors on the sidelines for the second week in a row.
The Sensex and the Nifty indexes traded down amid moderate weakness in Asian markets and a lower closing in the U.S. for the second day in a row.
Stocks in Mumbai are facing headwinds, and benchmark indexes are up about 2% in the year so far, lagging behind gains in Japan, the U.S., Germany, and France.
Moreover, international rate jitters also compounded market anxieties ahead of the European Central Bank's rate decision on Thursday.
The central bank is widely expected to hold its interest rates steady, but it may provide clues to future rate paths.
International investors are struggling to increase their exposure to Indian stocks as higher interest rates in the U.S. and Europe provide tough comparisons, and earnings results in India have lagged market expectations.
At the same time, stocks in India and Japan have benefited from foreign investors switching their investments from China following the protracted decline in the property market and the weaker-than-expected rebound in China's economy after the ending of zero COVID restrictions.
The Sensex index decreased 0.2% to 73,551.08, and the Nifty index fell 0.3% to 22,294.60.
On the Mumbai stock exchange, 75 stocks traded at their 52-week highs and 34 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.05%, and the Indian rupee strengthened to ₹82.85 against the U.S. dollar.
Tech Stocks Halt Two-day Selloff, Powell Reiterates Interest Rate Stance
Barry Adams
06 Mar, 2024
New York City
Stocks on Wall Street edged higher after two losing sessions in a row.
The S&P 500 index and the Nasdaq Composite inched higher, and semiconductor stocks resumed their advance.
Investors also reviewed Federal Reserve Chairman Jerome Powell's prepared comments to be delivered to lawmakers on Capitol Hill.
Fed Chair Powell reiterated the central bank's stand to keep interest rates restrictive and not ease inflation too early.
“The Committee does not expect that it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent,” Powell added in his comments.
Despite the Fed's tough talk, the central bank has expanded the broad money supply by 45% during the three years of the COVID-19 pandemic between 2020 and 2022, driving up food, automobile, and home prices by more than 100%.
Private payrolls expanded in February by 140,000 after growing by an upwardly revised 111,000 in January, payroll processing company ADP reported Wednesday.
Job gains in the month were driven by leisure and hospitality, adding 41,000, followed by construction expanding by 28,000, utilities by 27,000, and financial services by 17,000.
U.S. Indexes and Yields
The S&P 500 index decreased 0.9% to 5,085.84, and the Nasdaq Composite decreased 1.5% to 15,963.81.
The yield on 2-year Treasury notes decreased to 4.58%, 10-year Treasury notes inched down to 4.14%, and 30-year Treasury bonds edged down to 4.28%.
WTI crude oil decreased $1.01 to $79.13 a barrel, and natural gas prices decreased 1 cent to $1.97 a thermal unit.
Gold increased by $8.53 to $2,136.23 an ounce, and silver rose 11 cents to $23.79.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.88.
U.S. Stock Movers
Nordstrom plunged 9.2% to $18.87 after the department store chain reported better-than-expected results in the fiscal fourth quarter, but the company's 2024 guidance for the current year fell short of market expectations.
CrowdStrike Holdings soared 22.5% to $364.59 after the cyber security company reported better-than-expected quarterly results.
Box jumped 4.6% to $28.50 after the cloud storage company reported revenue in line with analysts' estimates.
Foot Locker plunged 11.1% to $30.50 after the athletic footwear retailer reported a loss in its latest quarter and the company guided weaker-than-expected sales in the current year.
Abercrombie & Fitch declined 2% to $137.01 despite the apparel retailer reporting better-than-expected sales in the holiday quarter and the company's positive outlook for the current year.
Sales in the quarter ending on January 28 increased 21% to $1.45 billion from $1.2 billion, net income advanced to $158.4 million from $38.3 million, and diluted earnings per share rose to $2.97 from 75 cents a year ago.
The retailer estimated sales in the current quarter to rise by a low double-digit percentage and increase between 4% and 6% in the fiscal year.
Movers: Abercrombie & Fitch, Box, CrowdStrike, Foot Locker, Nordstrom
Scott Peters
06 Mar, 2024
New York City
Nordstrom plunged 9.2% to $18.87 after the department store chain reported better-than-expected results in the fiscal fourth quarter, but the company's 2024 guidance for the current year fell short of market expectations.
CrowdStrike Holdings soared 22.5% to $364.59 after the cyber security company reported better-than-expected quarterly results.
Box jumped 4.6% to $28.50 after the cloud storage company reported revenue in-line with analysts' estimates.
Foot Locker dropped 11.1% to $30.50 after the athletic footwear retailer reported a loss in its latest quarter and the company guided weaker-than-expected sales in the current year.
Abercrombie & Fitch declined 2% to $137.01 despite the apparel retailer reporting better-than-expected sales in the holiday quarter and the company's positive outlook for the current year.
Sales in the quarter ending on January 28 increased 21% to $1.45 billion from $1.2 billion, net income advanced to $158.4 million from $38.3 million, and diluted earnings per share rose to $2.97 from 75 cents a year ago.
The retailer estimated sales in the current quarter to rise by a low double-digit percentage and increase between 4% and 6% in the fiscal year.
Europe Movers: DS Smith, Deutsche Post, Legal & General, Symrise, Tullow Oil
Inga Muller
06 Mar, 2024
Frankfurt
European markets struggled to advance ahead of the European Central Bank's rate decisions, inflation, and growth outlook.
Eurozone annual retail sales in January declined for the sixteenth month in a row, and Germany's trade surplus rose to a record January high after exports rose and imports declined.
The DAX index increased by 0.2% to 17,744.54, the CAC-40 index rose by 0.3% to 7,955.50, and the FTSE 100 index inched higher by 0.3% to 7,668.28.
The yield on 10-year German bonds edged down to 2.35%; French bonds inched lower to 2.81%; the UK gilts edged lower to 4.05%; and Italian bonds inched lower to 3.72%.
Legal & General Group declined 2.2% to 239.91 pence after the UK-based insurance company reported flat operating profit in 2023.
DS Smith increased 0.5% to 321.90 pence after the paperboard and packaging company reported better-than-expected fiscal third quarter profit and the company estimated a positive outlook in the current quarter.
Deutsche Post declined 5.8% to €39.27 after the parent company of DHL cautioned flat annual earnings in the current fiscal year.
Symrise advanced 4.9% to €100.90 after the German flavor and fragrance company reported a better-than-expected core annual profit in 2023.
Tullow Oil fell 0.5% to 28.11 pence after the independent energy company reported a decline in pre-tax profit on lower crude oil prices and impairment charges.
Total revenue in 2023 declined to $1.6 billion from $1.8 billion, net income from continuing activities swung to a loss of $110 million from a profit of $49 million, and basic earnings per share were 7.6 cents a loss compared to 3.4 cents a profit a year ago.
Energy production in the quarter increased to 55,754 from 55,170, but the realized oil price fell to $77.50 from $88.0 a year ago.