Market Update
Eurozone Retail Sales Extends Fall to Sixteenth Month, German Trade Surplus Jumps to Record January High
Bridgette Randall
06 Mar, 2024
Frankfurt
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 0.2% 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%.
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 $0.45 to $82.50 a barrel, and the Dutch TTF natural gas increased by €0.92 to €28.39 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 Policymakers Struggle with Growth Initiatives, Australian Economy Barely Expanded In December Quarter
Arjun Pandit
05 Mar, 2024
Mumbai
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.
India Movers: Aavas Financiers, Bharti Airtel, IRCTC, JM Financial, Mahanagar Gas, NHPC, Wipro, Zomato
Arun Goswami
05 Mar, 2024
Mumbai
Stocks in Mumbai edged lower following the weakness in Asian markets tracking the U.S. market decline in overnight trading.
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.
JM Financial decreased 2.0% to ₹95.50 after the Reserve Bank of India barred the financial broker from providing loans against various financial securities.
Aavas Financiers increased 1.3% to ₹1,375.95 after Singapore-based Amansa Capital and funds controlled by SBI acquired a stake in the company worth ₹1,186 crore.
Wipro declined 1.5% to ₹512.95, and the tech services outsourcing company is set to acquire a 27% stake in software-driven vehicle and cloud-based engineering service provider SDVerse LLC by the end of March.
Mahanagar Gas rose 1.4% to ₹1,563.70, and the natural gas distribution company announced a price reduction of ₹2.50 per kilo for compressed natural gas in the metropolitan Mumbai region.
Bharti Artel advanced 3.2% to ₹1,169.0 after the company approved the transfer of 56.8 lakh to foreign currency convertible bonds, or FCCB holders, at a price of ₹518 per share.
IRCTC declined 0.3% to ₹935.50, and the catering company partnered with an online food ordering and delivery company to deliver pre-ordered meals at four railway stations.
Zomato decreased 2.1% to ₹164.40 after the China-based Alibaba Group's affiliate Antfin Singapore is set to sell a 2% stake in the company in a block deal, according to a report by CNBC TV18.
Antfin is looking to sell 17.65 crore shares in the online food ordering and delivery company with a floor price of 159.40 per share, a 3.5% discount to the last closing price on Tuesday.
NHPC increased 1.8% to ₹94.10 after the company launched a solar power plant project in Jalaun, Uttar Pradesh, with an investment of ₹796.9 crore.
World Markets Pause Amid Growing Valuation Worries
Barry Adams
05 Mar, 2024
New York City
Stocks turned lower, and volatile tech stocks faced resistance after surging in previous weeks on valuation worries ahead of the release of non-farm payroll and JOLT reports.
The S&P 500 index and the Nasdaq Composite eased, extending losses in the previous session.
Investors debated the future direction of interest rates amid moderating but tight labor market conditions and better-than-expected earnings despite multiple rate hikes over the last eighteen months.
Market participants have generally bid up high-growth tech stocks linked to the expected boom in artificial intelligence applications across the economy.
Energy stocks were also in focus after crude oil prices traded volatile because of the elevated tensions in the Middle East and rising Houthi rebel activities in the Red Sea.
Moreover, drought conditions in Panama have slowed down the passage of container ships from Asia to the U.S. East Coast, as the canal operator has restricted the flow of daily vessels by half.
U.S. Factory Orders Decline Accelerated
New orders for manufactured goods in January, down three of the last four months, decreased $21.5 billion or 3.6% to $569.7 billion, the U.S. Census Bureau reported today.
This followed a 0.3% decline in December.
The monthly decline was the largest since April 2020, driven by 16.2% fall in transportation orders, and orders excluding transportation orders decreased 0.8%.
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 increased to 4.58%, 10-year Treasury notes inched down to 4.17%, and 30-year Treasury bonds edged down to 4.31%.
WTI crude oil decreased $0.39 to $78.33 a barrel, and natural gas prices decreased 1 cent to $1.91 a thermal unit.
Gold increased by $15.27 to $2,130.27 an ounce, and silver fell 11 cents to $23.76.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.88.
U.S. Stock Movers
Apple decreased 2.2% to $171.25 after a research report from Counter Point estimated the company's iPhone sales in China dropped as much as 24% in the first six weeks of 2024, facing tougher competition from Huawei.
Target Corp. soared 8.2% to $162.99 after the retailer reported better-than-expected holiday-quarter sales and earnings.
Revenue in the fiscal fourth quarter ending on February 3 rose to $31.9 billion from $31.4 billion, net income soared 58% to $1.38 billion from $0.87 billion, and diluted earnings per share advanced to $2.98 from $1.89 a year ago.
Operating margin in the quarter improved to 5.8% from 3.7% a year ago after consumers returned to buy higher-margin items like apparel and beauty products.
For the first quarter of 2024, the company expects comparable sales to fall between 3% and 5%, and first quarter GAAP and adjusted EPS are both expected to range from $1.70 to $2.10.
For the full year, the company expects a modest increase in comparable sales in a range from flat to 2%, and GAAP EPS and adjusted EPS are both expected to range from $8.60 to $9.60.
GitLab plunged 23.8% to $56.75 after the database developer estimated weaker-than-expected sales in the current year.
AMD decreased 1.9% to $201.55 after a Bloomberg News report suggested that the company's sales in China hit the U.S. regulatory hurdles that will prevent the company from selling advanced semiconductors to process artificial intelligence applications.
European Markets On Hold Ahead of Rate Decisions
European markets headed lower ahead of the European Central Bank's interest rate decision on Thursday and the UK's general budget on Wednesday.
Benchmark indexes in Frankfurt, Paris, and London decreased on the ongoing rate path worries compounded by China's lack of stimulus measures to tackle the protracted downturn in the property market.
Spain's Private Sector Expanded Third Consecutive Month
Spain's private sector showed notable expansion for the third month in a row in February, according to the latest survey released by S&P Global.
The HCOB Spain PMI increased to 53.9 in February from 51.5 in the previous month, after the service sector expanded at the fastest pace in nine months and the manufacturing sector rebounded.
Rising operating costs forced businesses to pass on the largest increase in prices to their customers.
France's Industrial Output Eased in January
France's industrial production declined from the previous month but rose from a year ago in January, the statistical agency INSEE reported Tuesday.
Industrial production decreased 1.1% monthly and increased 0.8% from the previous year after manufacturing output declined 1.6% compared to a rise of 0.5%, construction activity growth slowed to 0.3% from 1.8%, and mining and quarrying rebounded to 1.6% from the decline of 0.3% in the previous month, respectively.
On a yearly basis, industrial output rose 0.8% after rising 0.9% in December.
China's Economic Measures Fall Short of Expectations
The Chinese government set 2024 economic growth, inflation, and unemployment targets that are likely to push the country's already high den to new record levels.
The second-largest economy in the world is aiming to expand its economy by "around 5%," retail inflation at 3%, and create 12 million urban jobs to keep urban unemployment level at 5.5%.
The Chinese government has little room to provide financial stimulus and fund wasteful infrastructure projects as the country's official debt-to-GDP ratio hovers at 286%, the largest among the top 20 economies in the world.
The government is also planning to sell special Treasury bonds to raise one trillion yuan, or $139 billion.
Chinese policymakers are struggling to balance economic growth above 5% with weak productivity growth and a shrinking and aging labor force.
The government's plan failed to quell investor anxieties, and investors resumed selling in Hong Kong.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 17,698.40, the CAC-40 index fell 0.3% to 7,932.82, and the FTSE 100 index inched higher by 0.1% to 7,646.16.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched lower to 2.84%; the UK gilts edged lower to 4.08%; and Italian bonds inched lower to 3.77%.
The euro edged higher to $1.085, the British pound inched higher to $1.268, and the U.S. dollar weakened to 88.60 Swiss cents.
Brent crude decreased $0.54 to $82.32 a barrel, and the Dutch TTF natural gas increased by €0.57 to €27.47 per MWh.
Europe Stock Movers
Energy explorer Shell, BP. Repsol, and TotalEnergies traded volatile after crude oil extended losses for the second day in a row despite OPEC+ nations extending voluntary production quotas to June.
The two-month-long crude oil price rally has stalled on the lack of demand growth from China and the steady supply growth in the U.S.
Thales SA increased 8.2% to €149.70 after the defense electronics maker increased its dividend and estimated organic sales growth between 4% and 6%.
Ashtead Group declined 5.5% to 5,412.0 pence after the power equipment rental company narrowed its full-year growth outlook, citing weak demand in North America.
Spirent Communication soared 59% to 172.64 pence after the UK-based telecom company agreed to be acquired by telecom equipment company Vivavi Solutions for £1.01 billion.
Bayer AG decreased 1.7% to €27.77 after the biotechnology and pharmaceutical company reported a decline in sales in the fourth quarter.
Schaeffler AG declined 3.75 to €6.32 after the precision bearing product maker reported lower fiscal year earnings.
Net earnings attributable to shareholders in 2023 decreased to €310 million from €557 million a year ago.
Inchcape plc dropped 11.1% to 605.50 pence after the vehicle distribution company estimated moderate revenue growth in the current fiscal year.
Lindt & Spruengli dropped 1.8% to CHF 105,800.0 after the Swiss chocolate maker reported higher profit despite cost headwinds in fiscal year 2023.
Greggs plc jumped 3.9% to 2,817.91 pence after the UK-based bakery chain reported a 13% increase in its annual profit in 2023.
Asian Stock and Commodities Markets Turn Lower After China Disappointments
Stock market sentiment in Asia was mixed as investors remained cautious after China set economic targets and failed to provide specific measures to tackle the protracted property market slump.
Market indexes in Japan eased following the weakness in New York, and indexes in India declined on valuation worries.
Nikkei 225 In Tokyo Edged Lower
Market indexes in Japan edged lower following the weakness in tech stocks in overnight trading in New York.
In domestic economic news, the Tokyo area's core inflation rate rose to 2.5% in February from 1.8% in the previous month, crossing above the target rate of 2% set by the Bank of Japan.
Also, Japan's service purchasing managers' index was revised higher to 52.9 in February from 52.6 in January, a four-month low, S&P Global reported Tuesday.
The Nikkei 225 Stock Average fell 0.06% to 40,083.37, and the Topix index rose 0.5% to 2,719.07.
Stock market sentiment remained positive in the hopes of a stronger-than-expected rebound in corporate earnings in the March quarter because of the economic strength in the U.S. and the sharply lower yen in the year.
SoftBank, Advantest, Tokyo Electron, and Disco declined between 1.2% and 1.7%.
Leading conglomerates, also known as Sogo Shosha, Marubeni, Sumitomo, Mitsubishi, Mitsui, and Itochu, gained between 0.3% and 1.6%.
China's Economic Measures Fall Short of Expectations
The Chinese government set 2024 economic growth, inflation, and unemployment targets that are likely to push the country's already high den to new record levels.
The second-largest economy in the world is aiming to expand its economy by "around 5%," retail inflation at 3%, and create 12 million urban jobs to keep urban unemployment level at 5.5%.
The Chinese government has little room to provide financial stimulus and fund wasteful infrastructure projects as the country's official debt-to-GDP ratio hovers at 286%, the largest among the top 20 economies in the world.
The government is also planning to sell special Treasury bonds to raise one trillion yuan, or $139 billion.
Chinese policymakers are struggling to balance economic growth above 5% with weak productivity growth and a shrinking and aging labor force.
The government's plan failed to quell investor anxieties, and investors resumed selling in Hong Kong.
The CSI index increased 0.4% to 3,556.97, and the Hang Seng index dropped 2.5% to 16,189.27.
Moreover, foreign investors are still lowering their holdings in China, and foreign direct investment has plunged by 90% over the last two years after tensions between the nation and the U.S. rose.
Tech stocks led the decliners, with Alibaba Group, JD.com, Tencent, and Baidu declining between 2% and 4%.
Chinese property developers plunged after a lack of specific measures to revise the protracted slump in the property market.
China Resources Land, China Vanke, Henderson Land, and Longfor Group dropped between 2% and 6%.
India Stocks Trend Lower
Stocks in Mumbai traded sideways as investors looked abroad in the absence of domestic economic news.
The Sensex and the Nifty indexes traded down in early trading amid weak global sentiment, and market indexes in the U.S., Japan, India, Germany, and France traded near record highs.
Crude oil continued to advance as Houthi rebels stepped up attacks in the Red Sea, with no end in sight of the conflict between Israel and Palestine.
Precious metals, such as gold and silver, edged higher after investors bid up prices in the hopes of a rate cut in the U.S. and the Euro Area and rising demand from China and India.
Closer to home, market sentiment remained positive after India's economic growth accelerated in the December quarter, driven in part by sustained infrastructure spending by the government.
Moreover, foreign investors are still lowering their holdings in China, and foreign direct investment has plunged by 90% over the last two years after tensions between the nation and the U.S. rose.
The Sensex index decreased 0.2% to 73,730.21, and the Nifty index fell 0.1% to 22,373.35.
On the Mumbai stock exchange, 116 stocks traded at their 52-week highs and 25 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.06%, and the Indian rupee strengthened to ₹82.91 against the U.S. dollar.
U.S. Movers: AMD, Apple, GitLab, Target
Scott Peters
05 Mar, 2024
New York City
Apple decreased 2.2% to $171.25 after a research report from Counter Point estimated the company's iPhone sales in China dropped as much as 24% in the first six weeks of 2024, facing tougher competition from Huawei.
Target Corp. soared 8.2% to $162.99 after the retailer reported better-than-expected holiday-quarter sales and earnings.
Revenue in the fiscal fourth quarter ending on February 3 rose to $31.9 billion from $31.4 billion, net income soared 58% to $1.38 billion from $0.87 billion, and diluted earnings per share advanced to $2.98 from $1.89 a year ago.
Operating margin in the quarter improved to 5.8% from 3.7% a year ago after consumers returned to buy higher-margin items like apparel and beauty products.
For the first quarter of 2024, the company expects comparable sales to fall between 3% and 5%, and first quarter GAAP and adjusted EPS are both expected to range from $1.70 to $2.10.
For the full year, the company expects a modest increase in comparable sales in a range from flat to 2%, and GAAP EPS and adjusted EPS are both expected to range from $8.60 to $9.60.
GitLab plunged 23.8% to $56.75 after the database developer estimated weaker-than-expected sales in the current year.
AMD decreased 1.9% to $201.55 after a Bloomberg News report suggested that the company's sales in China hit the U.S. regulatory hurdles that will prevent the company from selling advanced semiconductors to process artificial intelligence applications.
U.S. Stocks On Hold Ahead of Two Critical Job Reports
Barry Adams
05 Mar, 2024
New York City
Stocks in early trading meandered, and investors took a wait-and-see approach ahead of the release of non-farm payrolls and JOLT reports.
The S&P 500 index decreased 0.2% and the Nasdaq Composite eased 0.3%, extending losses in the previous session.
Investors debated the future direction of interest rates amid moderating but tight labor market conditions and better-than-expected earnings despite multiple rate hikes over the last eighteen months.
Market participants have generally bid up high-growth tech stocks linked to the expected boom in artificial intelligence applications across the economy.
Energy stocks were also in focus after crude oil prices traded volatile because of the elevated tensions in the Middle East and rising Houthi rebel activities in the Red Sea.
Moreover, drought conditions in Panama have slowed down the passage of container ships from Asia to the U.S. East Coast, as the canal operator has restricted the flow of daily vessels by half.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 5,123.76, and the Nasdaq Composite decreased 0.4% to 16,156.63.
The yield on 2-year Treasury notes increased to 4.58%, 10-year Treasury notes inched down to 4.17%, and 30-year Treasury bonds edged down to 4.31%.
WTI crude oil decreased $0.79 to $77.75 a barrel, and natural gas prices decreased 2 cents to $1.89 a thermal unit.
Gold increased by $11.26 to $2,126.22 an ounce, and silver rose 14 cents to $24.02.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.88.
U.S. Stock Movers
Apple decreased 2.2% to $171.25 after a research report from Counter Point estimated the company's iPhone sales in China dropped as much as 24% in the first six weeks of 2024, facing tougher competition from Huawei.
Target Corp. soared 8.2% to $162.99 after the retailer reported better-than-expected holiday-quarter sales and earnings.
Revenue in the fiscal fourth quarter ending on February 3 rose to $31.9 billion from $31.4 billion, net income soared 58% to $1.38 billion from $0.87 billion, and diluted earnings per share advanced to $2.98 from $1.89 a year ago.
Operating margin in the quarter improved to 5.8% from 3.7% a year ago after consumers returned to buy higher-margin items like apparel and beauty products.
For the first quarter of 2024, the company expects comparable sales to fall between 3% and 5%, and first quarter GAAP and adjusted EPS are both expected to range from $1.70 to $2.10.
For the full year, the company expects a modest increase in comparable sales in a range from flat to 2%, and GAAP EPS and adjusted EPS are both expected to range from $8.60 to $9.60.
GitLab plunged 23.8% to $56.75 after the database developer estimated weaker-than-expected sales in the current year.
AMD decreased 1.9% to $201.55 after a Bloomberg News report suggested that the company's sales in China hit the U.S. regulatory hurdles that will prevent the company from selling advanced semiconductors to process artificial intelligence applications.
Europe Movers: Ashtead, BP, Bayer, Greggs, Spruengli, Schaeffler, Spirent, Thales
Inga Muller
05 Mar, 2024
Frankfurt
European markets were on hold ahead of the European Central Bank's rate decision on Thursday and the U.K.'s general budget on Wednesday.
The DAX index decreased by 0.2% to 17,683.01, the CAC-40 index fell 0.2% to 7,945.10, and the FTSE 100 index inched lower by 0.1% to 7,629.88.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched lower to 2.84%; the UK gilts edged lower to 4.08%; and Italian bonds inched lower to 3.77%.
Energy explorer Shell, BP. Repsol, and TotalEnergies traded volatile after crude oil extended losses for the second day in a row despite OPEC+ nations extending voluntary production quotas to June.
The two-month-long crude oil price rally has stalled on the lack of demand growth from China and the steady supply growth in the U.S.
Thales SA increased 8.2% to €149.70 after the defense electronics maker increased its dividend and estimated organic sales growth between 4% and 6%.
Ashtead Group declined 5.5% to 5,412.0 pence after the power equipment rental company narrowed its full-year growth outlook, citing weak demand in North America.
Spirent Communication soared 59% to 172.64 pence after the UK-based telecom company agreed to be acquired by telecom equipment company Vivavi Solutions for £1.01 billion.
Bayer AG decreased 1.7% to €27.77 after the biotechnology and pharmaceutical company reported a decline in sales in the fourth quarter.
Schaeffler AG declined 3.75 to €6.32 after the precision bearing product maker reported lower fiscal year earnings.
Net earnings attributable to shareholders in 2023 decreased to €310 million from €557 million a year ago.
Inchcape plc dropped 11.1% to 605.50 pence after the vehicle distribution company estimated moderate revenue growth in the current fiscal year.
Lindt & Spruengli dropped 1.8% to CHF 105,800.0 after the Swiss chocolate maker reported higher profit despite cost headwinds in fiscal year 2023.
Sales in 2023 increased 4.6% to CHF 5.2 billion from CHF 4.97 billion, and net income advanced 17.9% to CHF 671.4 million from CHF 569.7 million.
The company hiked dividend per share by 7.7% to CHF 1,400 from CHF 1,300 a year ago.
Greggs plc jumped 3.9% to 2,817.91 pence after the UK-based bakery chain reported a 13% increase in its annual profit in 2023.
2023 total sales increased to £1.8 billion from £1.5 billion, and diluted earnings per share rose to 139.2 pence from 117.5 pence.
The company declared a regular dividend of 62 pence and a special dividend of 40 pence per share.
France's Industrial Output Eased, Spain's Private Sector Expanded Third Consecutive Month
Bridgette Randall
05 Mar, 2024
Frankfurt
European markets headed lower ahead of the European Central Bank's interest rate decision on Thursday and the UK's general budget on Wednesday.
Benchmark indexes in Frankfurt, Paris, and London decreased on the ongoing rate path worries compounded by China's lack of stimulus measures to tackle the protracted downturn in the property market.
Spain's Private Sector Expanded Third Consecutive Month
Spain's private sector showed notable expansion for the third month in a row in February, according to the latest survey released by S&P Global.
The HCOB Spain PMI increased to 53.9 in February from 51.5 in the previous month, after the service sector expanded at the fastest pace in nine months and the manufacturing sector rebounded.
Rising operating costs forced businesses to pass on the largest increase in prices to their customers.
France's Industrial Output Eased in January
France's industrial production declined from the previous month but rose from a year ago in January, the statistical agency INSEE reported Tuesday.
Industrial production decreased 1.1% monthly and increased 0.8% from the previous year after manufacturing output declined 1.6% compared to a rise of 0.5%, construction activity growth slowed to 0.3% from 1.8%, and mining and quarrying rebounded to 1.6% from the decline of 0.3% in the previous month, respectively.
On a yearly basis, industrial output rose 0.8% after rising 0.9% in December.
China's Economic Measures Fall Short of Expectations
The Chinese government set 2024 economic growth, inflation, and unemployment targets that are likely to push the country's already high den to new record levels.
The second-largest economy in the world is aiming to expand its economy by "around 5%," retail inflation at 3%, and create 12 million urban jobs to keep urban unemployment level at 5.5%.
The Chinese government has little room to provide financial stimulus and fund wasteful infrastructure projects as the country's official debt-to-GDP ratio hovers at 286%, the largest among the top 20 economies in the world.
The government is also planning to sell special Treasury bonds to raise one trillion yuan, or $139 billion.
Chinese policymakers are struggling to balance economic growth above 5% with weak productivity growth and a shrinking and aging labor force.
The government's plan failed to quell investor anxieties, and investors resumed selling in Hong Kong.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 17,683.01, the CAC-40 index fell 0.2% to 7,945.10, and the FTSE 100 index inched lower by 0.1% to 7,629.88.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched lower to 2.84%; the UK gilts edged lower to 4.08%; and Italian bonds inched lower to 3.77%.
The euro edged higher to $1.085, the British pound inched higher to $1.268, and the U.S. dollar weakened to 88.60 Swiss cents.
Brent crude decreased $0.12 to $82.92 a barrel, and the Dutch TTF natural gas increased by €1.47 to €28.35 per MWh.
Europe Stock Movers
Energy explorer Shell, BP. Repsol, and TotalEnergies traded volatile after crude oil extended losses for the second day in a row despite OPEC+ nations extending voluntary production quotas to June.
The two-month-long crude oil price rally has stalled on the lack of demand growth from China and the steady supply growth in the U.S.
Thales SA increased 8.2% to €149.70 after the defense electronics maker increased its dividend and estimated organic sales growth between 4% and 6%.
Ashtead Group declined 5.5% to 5,412.0 pence after the power equipment rental company narrowed its full-year growth outlook, citing weak demand in North America.
Spirent Communication soared 59% to 172.64 pence after the UK-based telecom company agreed to be acquired by telecom equipment company Vivavi Solutions for £1.01 billion.
Bayer AG decreased 1.7% to €27.77 after the biotechnology and pharmaceutical company reported a decline in sales in the fourth quarter.
Schaeffler AG declined 3.75 to €6.32 after the precision bearing product maker reported lower fiscal year earnings.
Net earnings attributable to shareholders in 2023 decreased to €310 million from €557 million a year ago.
Inchcape plc dropped 11.1% to 605.50 pence after the vehicle distribution company estimated moderate revenue growth in the current fiscal year.
Lindt & Spruengli dropped 1.8% to CHF 105,800.0 after the Swiss chocolate maker reported higher profit despite cost headwinds in fiscal year 2023.
Greggs plc jumped 3.9% to 2,817.91 pence after the UK-based bakery chain reported a 13% increase in its annual profit in 2023.
China's Ambitious Economic Targets Fall Short of Expectations
Arjun Pandit
05 Mar, 2024
Mumbai
Stock market sentiment in Asia was mixed as investors remained cautious after China set economic targets and failed to provide specific measures to tackle the protracted property market slump.
Market indexes in Japan eased following the weakness in New York, and indexes in India declined on valuation worries.
Nikkei 225 In Tokyo Edged Lower
Market indexes in Japan edged lower following the weakness in tech stocks in overnight trading in New York.
In domestic economic news, the Tokyo area's core inflation rate rose to 2.5% in February from 1.8% in the previous month, crossing above the target rate of 2% set by the Bank of Japan.
Also, Japan's service purchasing managers' index was revised higher to 52.9 in February from 52.6 in January, a four-month low, S&P Global reported Tuesday.
The Nikkei 225 Stock Average fell 0.06% to 40,083.37, and the Topix index rose 0.5% to 2,719.07.
Stock market sentiment remained positive in the hopes of a stronger-than-expected rebound in corporate earnings in the March quarter because of the economic strength in the U.S. and the sharply lower yen in the year.
SoftBank, Advantest, Tokyo Electron, and Disco declined between 1.2% and 1.7%.
Leading conglomerates, also known as Sogo Shosha, Marubeni, Sumitomo, Mitsubishi, Mitsui, and Itochu, gained between 0.3% and 1.6%.
China's Economic Measures Fall Short of Expectations
The Chinese government set 2024 economic growth, inflation, and unemployment targets that are likely to push the country's already high den to new record levels.
The second-largest economy in the world is aiming to expand its economy by "around 5%," retail inflation at 3%, and create 12 million urban jobs to keep urban unemployment level at 5.5%.
The Chinese government has little room to provide financial stimulus and fund wasteful infrastructure projects as the country's official debt-to-GDP ratio hovers at 286%, the largest among the top 20 economies in the world.
The government is also planning to sell special Treasury bonds to raise one trillion yuan, or $139 billion.
Chinese policymakers are struggling to balance economic growth above 5% with weak productivity growth and a shrinking and aging labor force.
The government's plan failed to quell investor anxieties, and investors resumed selling in Hong Kong.
The CSI index increased 0.4% to 3,556.97, and the Hang Seng index dropped 2.5% to 16,189.27.
Moreover, foreign investors are still lowering their holdings in China, and foreign direct investment has plunged by 90% over the last two years after tensions between the nation and the U.S. rose.
Tech stocks led the decliners, with Alibaba Group, JD.com, Tencent, and Baidu declining between 2% and 4%.
Chinese property developers plunged after a lack of specific measures to revise the protracted slump in the property market.
China Resources Land, China Vanke, Henderson Land, and Longfor Group dropped between 2% and 6%.
India Stocks Trend Lower
Stocks in Mumbai traded sideways as investors looked abroad in the absence of domestic economic news.
The Sensex and the Nifty indexes traded down in early trading amid weak global sentiment, and market indexes in the U.S., Japan, India, Germany, and France traded near record highs.
Crude oil continued to advance as Houthi rebels stepped up attacks in the Red Sea, with no end in sight of the conflict between Israel and Palestine.
Precious metals, such as gold and silver, edged higher after investors bid up prices in the hopes of a rate cut in the U.S. and the Euro Area and rising demand from China and India.
Closer to home, market sentiment remained positive after India's economic growth accelerated in the December quarter, driven in part by sustained infrastructure spending by the government.
Moreover, foreign investors are still lowering their holdings in China, and foreign direct investment has plunged by 90% over the last two years after tensions between the nation and the U.S. rose.
The Sensex index decreased 0.2% to 73,730.21, and the Nifty index fell 0.1% to 22,373.35.
On the Mumbai stock exchange, 116 stocks traded at their 52-week highs and 25 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.06%, and the Indian rupee strengthened to ₹82.91 against the U.S. dollar.
India Movers: Au Small Finance Bank, Biocon, Macrotec Developers, NBCC, NTPC, Tata Motors
Arun Goswami
05 Mar, 2024
Mumbai
Major averages in Mumbai edged lower as investors reassessed interest paths and market valuation amid weak foreign investor sentiment.
The Sensex index decreased 0.2% to 73,730.21, and the Nifty index fell 0.1% to 22,373.35.
On the Mumbai stock exchange, 116 stocks traded at their 52-week highs and 25 stocks traded at their 52-week lows.
Tata Motors jumped 4% to ₹1,027.0 after the vehicle maker said it plans to separate its passenger car and commercial vehicle businesses.
NBCC gained 2.2% to ₹135.30 after the company won a ₹92 crore construction order from the Post Graduate Institute of Medical Research in Chandigarh.
Biocon Ltd., after the company's subsidiary Biocon Biologics settled with Bayer and Regeneron Pharmaceuticals, paving the way for the launch of biosimilar Yesafili to Eyela for the treatment of various eye diseases in Canada.
Macrotech Developers advanced 1.6% to ₹1,204.15 after the residential property developer launched its institutional offering to raise ₹3,300 crore.
NTPC increased 0.3% to ₹354.90 after the company's green energy subsidiary formed a joint venture with Uttar Pradesh to develop renewable energy projects in the state.
AU Small Finance Bank decreased 0.4% to ₹578.05 after the company's merger with Fincare Small Finance Bank with a combined balance sheet of ₹1.16 lakh crore.
IIFL dropped 20% to ₹477.75 after the Reserve Bank of India barred the non-bank finance company to process new gold loans because of severe compliance weakness and "material supervisory concerns."
World Markets Trade Near Peaks, Chinese Policymakers Struggle to Adjust to Slower Growth
Barry Adams
04 Mar, 2024
New York City
Benchmark indexes lacked direction in Monday's trading after extending gains in the previous week as investors remained focused on earnings and overlooked ongoing interest rate uncertainties.
The S&P 500 index and the Nasdaq Composite traded near record highs reached last week after markets extended a five-month rally following the enthusiasm surrounding artificial intelligence and sharp gains in semiconductor industry stocks.
Investors bid up stocks after better-than-expected earnings contributed to the market's enthusiasm, and investors embraced the hotter-than-expected inflation report last week.
The personal consumption expenditures price index, an alternative measure of inflation that accounts for product substitution by consumers, increased by 0.3% on the month and by 2.4% from a year ago.
The inflation data met investors’ expectations, but the report also signaled that policymakers most likely will wait for another three months before lowering rates.
Seasonally adjusted new home sales in January rose 1.5% to 661,000, driven by lower mortgage rates in the month, the U.S. Census Bureau reported Monday.
The median sales price of new houses sold in January was $420,700, higher than $413,100 in December but lower than 432,100 a year ago.
The housing market report confirmed that affordability issues and tight market conditions are not likely to go away anytime soon.
The U.S. economic growth was revised downward in the fourth quarter to 3.2% from the preliminary estimate of 3.3%, following the 4.9% annual pace of increase in the third quarter, the U.S. Bureau of Economic Analysis reported Wednesday.
For the full-year 2023, the GDP growth in the second estimate was unrevised at 2.5%, compared to 1.9% in 2022.
This week, investors are expecting non-farm payrolls on Friday to expand by 190,000 in January, slower than the 353,000 job gains in December.
The unemployment rate is expected to hold steady at 3.7%, and wage growth is expected to cool to 0.2%.
Moreover, the JOLTs report on Wednesday is expected to show job openings shrank to 8.9 million, following two months of increases in a row.
U.S. indexes and Yields
The S&P 500 index decreased 0.1% to 5,131.86, and the Nasdaq Composite decreased 0.1% to 16,260.71.
The yield on 2-year Treasury notes decreased to 4.57%, 10-year Treasury notes inched down to 4.21%, and 30-year Treasury bonds edged down to 4.37%.
WTI crude oil increased $0.46 to $79.50 a barrel, and natural gas prices decreased 13 cents to $1.97 a thermal unit.
Gold increased by $1.21 to $2,082.22 an ounce, and silver fell 7 cents to $22.70.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.93.
U.S. Stock Movers
Apple decreased 1.7% to $177.14 after the European Commission fined the popular iPhone maker Є1.8 billion for its alleged "abusive" app store practices for streaming music service providers.
Cryptocurrency-linked stocks advanced after Bitcoin surged 3.5% to 65,367.20, only 5% shy of its record high of $69,000.
Coinbase advanced 6% to $219.32, MicroStrategy soared 9.2% to $1,183.0, Marathon Digital gained 4.5% to $28.09, Robinhood Markets inched up 3.2% to $17.11, and Riot Platforms traded up 4.4% to $17.11.
Super Micro and Deckers Outdoor advanced after the two companies were selected to be added later in the month to the popular benchmark S&P 500 index managed by S&P Dow Jones Indices.
Zions Bancorp and Whirlpool will be moved from the S&P 500 to the S&P MidCap 400 index.
Super Micro Computer jumped 15.96% to $1,050.02, and Deckers Outdoor jumped 4.3% to $942.0.
Spirit Airlines plunged 14% to $5.55 and JetBlue gained 4% to $6.70 after the two companies canceled their merger plans, facing antitrust regulatory hurdles.
European Markets Rest Near Record Peaks Ahead of Rate Decisions
European markets hovered near record highs as investors digested a flood of inflation data last week and awaited more clarity from central bankers.
The European Central Bank is set to announce its monetary decision on Wednesday, and the central bank is widely anticipated to keep rates steady but may clarify the rate path ahead.
Last week, inflation eased in the eurozone, Germany, France, and Spain but stayed above the 2% target set by the European Central Bank.
Retail sales in Germany decreased, and the jobless rate edged up to 5.9%, but payrolls in France held steady in the fourth quarter.
Swiss GDP growth slowed for the third year in a row to 0.8% in 2023, and UK home prices rose in February after falling in the previous eleven months in a row.
Swill annual inflation rate eased to 1.2% in February from 1.3% in January, the lowest level since October 2021, the Swiss Federal Statistical Office reported Monday.
Core inflation rate, which excludes fresh food and energy, in the month eased to 1.1% from 1.2% in the previous month.
Investors are also looking forward to the release of fourth-quarter GDP in the eurozone and international trade data for France and Germany.
In addition, retail sales in the eurozone are expected to rebound in January after falling at the fastest pace in one year in December.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 17,704.17, the CAC-40 index gained 0.1% to 7,940.28, and the FTSE 100 index inched lower by 0.6% to 7,638.03.
For the week, the DAX index advanced 1.8%, the CAC 40 decreased 0.4%, and the FTSE 100 index dropped 0.5%.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched lower to 2.86%; the UK gilts edged lower to 4.09%; and Italian bonds inched lower to 3.84%.
The euro edged higher to $1.085, the British pound inched higher to $1.267, and the U.S. dollar weakened to 88.32 Swiss cents.
Brent crude decreased $0.41 to $83.15 a barrel, and the Dutch TTF natural gas increased by €1.10 to €26.19 per MWh.
Europe Stock Movers
BNP Paribas increased 1.7% to €57.03 after the financial services company launched a €1.055 billion stock repurchase plan.
Evonik Industries inched up 0.3% to €17.22 after the German chemical company announced plans to cut 2,000 jobs around the world by 2026 to streamline costs.
The company offered a muted business outlook in 2024.
Aviva decreased 0.1% to 447.20 pence after the insurance company agreed to acquire underwriting syndicate Probitas for £242 million.
Henkel declined 4.8% to €67.04 after the chemical and German consumer products company estimated slower organic sales growth between 2% and 4% in the current year.
Delivery Hero added 0.9% to €67.04 after the online food ordering and delivery company announced it extended its €1.1 billion loan facility by two years to August 2029 and raised a new debt of €500 million to repurchase convertible bonds and cover general corporate expenses.
The company also reiterated the previously announced growth in gross market volume between 7% and 9% in constant currency.
Nikkei 225 In Tokyo Closed at New Record High
In Asia, bench market indexes in Japan advanced on the speculation that the government is ready to declare the end of deflation, Chinese lawmakers gathered for their annual legislative meeting, and India's market looked higher.
The benchmark Nikkei index crossed 40,000 for the first time in the hopes of more support from the government and enthusiasm about the artificial intelligence boom lifting the sale of semiconductor chip-making equipment.
The Nikkei 225 average gained 0.5% to 40,099.09, and the TOPIX edged slightly lower by 0.07% to 2,707.47.
Tokyo Electron, Disco Corp., Screen Holdings, and Softbank gained between 1.3% and 3%.
The current market rally in benchmark indexes in Japan is largely driven by the hopes of sustained corporate governance reforms, a 34-year low yen, and the Nippon Individual Savings Account for individual investors.
Global funds' allocation to Japanese equities is still lower than benchmark weights, suggesting there is room for increasing allocation to Japan if corporate results continue to outperform expectations.
The Nikkei Stock Average has gained 19% in the year so far, following a 28% rally in 2023, and surpassed the previous high set in December 1989.
Japanese stocks are still viewed as reasonably priced, with a price-to-earnings ratio just above 17 and significantly lower than 60 at the height of the market bubble 34 years ago.
The weakening yen has also supported earnings growth at Japanese companies, but the rapid decline in the yen could become a negative factor for foreign investors, the main drivers of the current market rally.
China's Policy Uncertainties Keep Indexes Down
Market indexes in China drifted lower after trading mixed in the previous week as investors looked ahead to the release of economic targets for the current year and policies to revive property markets and stabilize financial markets.
Chinese lawmakers gather in Beijing this week for their annual legislative meetings, widely known as "Two Sessions" or "lianghui."
Lawmakers are likely to finalize the annual economic growth target, announce high-level personnel appointments, and ramp up national security rhetoric involving China's commitment to taking control of Taiwan.
Investors are also awaiting clarity on the government stimulus plans to revive the faltering economic rebound and step up market intervention to arrest falling market indexes.
Policymakers are expected to announce an annual economic growth target rate of at least 5% and a budget deficit of around 3% of gross domestic product.
The Chinese government's economic growth targets are perceived with deep skepticism, reflecting a widespread practice of managing figures to satisfy the leadership's objectives.
The CSI 300 index added 0.2% to 3,544.10, and the Hang Seng index declined 0.2% to 16,552.81.
Tech stocks were among the leading decliners in Monday's trading, and Tencent, Alibaba Group, and Trip.com declined between 1% and 3%.
EV makers were on the slide amid growing price competition in China's crowded EV market.
Li Auto fell 5%, BYD declined 1.5%, and Geely Automotive fell 1.2%.
India Indexes Traded Around Record Highs
Stocks in Mumbai opened higher in Monday's trading as investors digested the economic updates of last week and reassessed the economic growth and interest rate outlook.
The Sensex and the Nifty indexes edged higher by 0.1% and extended the previous week's gains, and investors focused on large-cap stocks in power, retail, consumer products, and financial services companies.
The faster-than-expected increase in economic growth of 8.4% in the December quarter overshadowed the muted increase in core industrial production in January.
Market sentiment remained positive despite the net investment outflow by foreign investors in January, as investors estimated higher economic growth would support growth in corporate earnings in the March quarter.
The Sensex index increased 0.1% to 73,875.02, and the Nifty index rose 0.2% to 22,413.0.
On the Mumbai stock exchange, 229 stocks traded at their 52-week highs and 18 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.06%, and the Indian rupee strengthened to ₹82.87 against the U.S. dollar.
U.S. Movers: Apple, Crypto Stocks, Deckers Outdoor, Jet Blue, Spirit Airlines, Super Micro
Scott Peters
04 Mar, 2024
New York City
Apple decreased 1.7% to $177.14 after the European Commission fined the popular iPhone maker Є1.8 billion for its alleged "abusive" app store practices for streaming music service providers.
Cryptocurrency-linked stocks advanced after Bitcoin surged 3.5% to 65,367.20, only 5% shy of its record high of $69,000.
Coinbase advanced 6% to $219.32, MicroStrategy soared 9.2% to $1,183.0, Marathon Digital gained 4.5% to $28.09, Robinhood Markets inched up 3.2% to $17.11, and Riot Platforms traded up 4.4% to $17.11.
Super Micro and Deckers Outdoor advanced after the two companies were selected to be added later in the month to the popular benchmark S&P 500 index managed by S&P Dow Jones Indices.
Zions Bancorp and Whirlpool will be moved from the S&P 500 to the S&P MidCap 400 index.
Super Micro Computer jumped 15.96% to $1,050.02, and Deckers Outdoor jumped 4.3% to $942.0.
Spirit Airlines plunged 14% to $5.55 and JetBlue gained 4% to $6.70 after the two companies canceled their merger plans, facing antitrust regulatory hurdles.
Semiconductor Stocks Powered Market Rally Continues to March Ahead
Barry Adams
04 Mar, 2024
New York City
Stocks in early trading lacked direction, and benchmark indexes edged slightly lower in Monday's trading.
The S&P 500 index and the Nasdaq Composite traded near record highs reached last week after markets extended a five-month rally following the enthusiasm surrounding artificial intelligence and sharp gains in semiconductor industry stocks.
Investors bid up stocks after better-than-expected earnings contributed to the market's enthusiasm, and investors embraced the hotter-than-expected inflation report last week.
The personal consumption expenditures price index, an alternative measure of inflation that accounts for product substitution by consumers, increased by 0.3% on the month and by 2.4% from a year ago.
The inflation data met investors’ expectations, but the report also signaled that policymakers most likely will wait for another three months before lowering rates.
Seasonally adjusted new home sales in January rose 1.5% to 661,000, driven by lower mortgage rates in the month, the U.S. Census Bureau reported Monday.
The median sales price of new houses sold in January was $420,700, higher than $413,100 in December but lower than 432,100 a year ago.
The housing market report confirmed that affordability issues and tight market conditions are not likely to go away anytime soon.
The U.S. economic growth was revised downward in the fourth quarter to 3.2% from the preliminary estimate of 3.3%, following the 4.9% annual pace of increase in the third quarter, the U.S. Bureau of Economic Analysis reported Wednesday.
For the full-year 2023, the GDP growth in the second estimate was unrevised at 2.5%, compared to 1.9% in 2022.
This week, investors are expecting non-farm payrolls to expand by 190,000 in January, slower than the 353,000 job gains in December.
The unemployment rate is expected to hold steady at 3.7%, and wage growth is expected to cool to 0.2%.
Moreover, the JOLTs report is expected to show job openings shrank to 8.9 million, following two months of increases in a row.
U.S. indexes and Yields
The S&P 500 index decreased 0.1% to 5,131.86, and the Nasdaq Composite decreased 0.1% to 16,260.71.
The yield on 2-year Treasury notes decreased to 4.57%, 10-year Treasury notes inched down to 4.21%, and 30-year Treasury bonds edged down to 4.37%.
WTI crude oil increased $0.46 to $79.50 a barrel, and natural gas prices decreased 13 cents to $1.97 a thermal unit.
Gold increased by $1.21 to $2,082.22 an ounce, and silver fell 7 cents to $22.70.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.93.
U.S. Stock Movers
Apple decreased 1.7% to $177.14 after the European Commission fined the popular iPhone maker Є1.8 billion for its alleged "abusive" app store practices for streaming music service providers.
Cryptocurrency-linked stocks advanced after Bitcoin surged 3.5% to 65,367.20, only 5% shy of its record high of $69,000.
Coinbase advanced 6% to $219.32, MicroStrategy soared 9.2% to $1,183.0, Marathon Digital gained 4.5% to $28.09, Robinhood Markets inched up 3.2% to $17.11, and Riot Platforms traded up 4.4% to $17.11.
Super Micro and Deckers Outdoor advanced after the two companies were selected to be added later in the month to the popular benchmark S&P 500 index managed by S&P Dow Jones Indices.
Zions Bancorp and Whirlpool will be moved from the S&P 500 to the S&P MidCap 400 index.
Super Micro Computer jumped 15.96% to $1,050.02, and Deckers Outdoor jumped 4.3% to $942.0.
Spirit Airlines plunged 14% to $5.55 and JetBlue gained 4% to $6.70 after the two companies canceled their merger plans, facing antitrust regulatory hurdles.
Europe Movers: Aviva, BNP Paribas, Delivery Hero, Evonik, Henkel, senior, Software One
Inga Muller
04 Mar, 2024
Frankfurt
European markets traded near record highs ahead of the interest rate decisions by the European Central Bank on Thursday.
The central bank is widely anticipated to hold rates steady and may provide insights into rate paths in the near future.
The DAX index increased by 0.05% to 17,786.77, the CAC-40 index gained a fraction to 7,934.74, and the FTSE 100 index inched lower by 0.3% to 7,658.12.
BNP Paribas increased 1.7% to €57.03 after the financial services company launched a €1.055 billion stock repurchase plan.
Evonik Industries inched up 0.3% to €17.22 after the German chemical company announced plans to cut 2,000 jobs around the world by 2026 to streamline costs.
The company offered a muted business outlook in 2024.
Aviva decreased 0.1% to 447.20 pence after the insurance company agreed to acquire underwriting syndicate Probitas for £242 million.
Henkel declined 4.8% to €67.04 after the chemical and German consumer products company estimated slower organic sales growth between 2% and 4% in the current year.
Delivery Hero added 0.9% to €67.04 after the online food ordering and delivery company announced it extended its €1.1 billion loan facility by two years to August 2029 and raised a new debt of €500 million to repurchase convertible bonds and cover general corporate expenses.
The company also reiterated the previously announced growth in gross market volume between 7% and 9% in constant currency.
Senior Plc increased 0.1% to 159.60 pence after the aerospace parts supplier reported strong annual results for the year 2023, and met targets set by the company.
SoftwareOne decreased 3.6% to CHF 15.97 after the company's founders terminated their negotiations with the private equity group Bain Capital to take company private.
European Markets Rest Near Record Peaks Ahead of Rate Decisions
Bridgette Randall
04 Mar, 2024
Frankfurt
European markets hovered near record highs as investors digested a flood of inflation data last week and awaited more clarity from central bankers.
The European Central Bank is set to announce its monetary decision on Wednesday, and the central bank is widely anticipated to keep rates steady but may clarify the rate path ahead.
Last week, inflation eased in the eurozone, Germany, France, and Spain but stayed above the 2% target set by the European Central Bank.
Retail sales in Germany decreased, and the jobless rate edged up to 5.9%, but payrolls in France held steady in the fourth quarter.
Swiss GDP growth slowed for the third year in a row to 0.8% in 2023, and UK home prices rose in February after falling in the previous eleven months in a row.
Swill annual inflation rate eased to 1.2% in February from 1.3% in January, the lowest level since October 2021, the Swiss Federal Statistical Office reported Monday.
Core inflation rate, which excludes fresh food and energy, in the month eased to 1.1% from 1.2% in the previous month.
Investors are also looking forward to the release of fourth-quarter GDP in the eurozone and international trade data for France and Germany.
In addition, retail sales in the eurozone are expected to rebound in January after falling at the fastest pace in one year in December.
Europe Indexes and Yields
The DAX index increased by 0.05% to 17,786.77, the CAC-40 index gained a fraction to 7,934.74, and the FTSE 100 index inched lower by 0.3% to 7,658.12.
For the week, the DAX index advanced 1.8%, the CAC 40 decreased 0.4%, and the FTSE 100 index dropped 0.5%.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched lower to 2.86%; the UK gilts edged lower to 4.09%; and Italian bonds inched lower to 3.84%.
The euro edged higher to $1.085, the British pound inched higher to $1.267, and the U.S. dollar weakened to 88.32 Swiss cents.
Brent crude decreased $0.11 to $83.45 a barrel, and the Dutch TTF natural gas increased by €0.60 to €25.21 per MWh.
Europe Stock Movers
BNP Paribas increased 1.7% to €57.03 after the financial services company launched a €1.055 billion stock repurchase plan.
Evonik Industries inched up 0.3% to €17.22 after the German chemical company announced plans to cut 2,000 jobs around the world by 2026 to streamline costs.
The company offered a muted business outlook in 2024.
Aviva decreased 0.1% to 447.20 pence after the insurance company agreed to acquire underwriting syndicate Probitas for £242 million.
Henkel declined 4.8% to €67.04 after the chemical and German consumer products company estimated slower organic sales growth between 2% and 4% in the current year.
Delivery Hero added 0.9% to €67.04 after the online food ordering and delivery company announced it extended its €1.1 billion loan facility by two years to August 2029 and raised a new debt of €500 million to repurchase convertible bonds and cover general corporate expenses.
The company also reiterated the previously announced growth in gross market volume between 7% and 9% in constant currency.