Market Update
U.S. Movers: Autozone, Expedia, Macy's, Lowe's, Norwegian Cruise, Zoom Video
Scott Peters
27 Feb, 2024
New York City
AutoZone rose 2% to $2,825.0 after the automotive parts retailer reported better-than-expected revenue and earnings in its fiscal second quarter.
Revenue in the fiscal second quarter rose 4.6% to $3.85 billion from $3.69 billion, net income increased to $515.03 million from $476.5 million, and diluted earnings per share advanced to $28.89 from $24.64 a year ago.
Same-store sales increased 3.0%, driven by a 0.3% increase in domestic sales and a 23.9% rise in sales at international locations.
AutoZone repurchased 84,000 shares of its common stock at an average price per share of $2,676, for a total of $223.8 million.
At the end of the fiscal second quarter ending on February 10, the company had $2.1 billion remaining under its current share repurchase authorization.
During the quarter, AutoZone opened 19 new stores and closed three in the U.S., opened six new stores in Mexico, and opened four in Brazil, for a total of 26 net new stores.
As of February 10, the retailer had 6,332 stores in the U.S., 751 in Mexico, and 108 in Brazil, for a total store count of 7,191.
Macy's declined 1.9% to $19.0 after the apparel retailer reported slightly lower-than-expected revenue in the fourth quarter and offered a cautious sales outlook in the current quarter.
The retailer reported revenue in the fourth quarter decreased to $8.12 billion from $8.26 billion, net income swung to a loss of $71 million from a profit of $508 million, and diluted earnings per share were a loss of 26 cents compared to a profit of $1.83 a year ago.
Revenue in the fourth quarter of 2023 included 14 weeks, compared to 13 weeks in the quarter a year ago.
Macy's estimated full-year revenue ranges between $22.2 billion and $22.9 billion, and comparable sales across all channels range between a decline of 1.5% and 1.5% compared to a year ago.
Macy's also said it plans to close about 150 underperforming stores and expand its small-format stores.
Lowe's Companies decreased 0.6% to $230.01 after the home improvement retailer reported better-than-expected fourth-quarter results.
Revenue in the fourth quarter declined to $18.6 billion from $22.4 billion, net income increased to $1.02 billion from $957 million, and diluted earnings per share rose to $1.77 from $1.58 a year ago.
Prior-year quarterly sales included approximately $1.4 billion from the additional 53rd week, as well as $958 million generated from the sale of its Canadian retail business.
Comparable sales for the quarter decreased 6.2% due to a slowdown in home renovation demand and unfavorable January winter weather, while pro-customer comparable sales were flat for the quarter.
The retailer also estimated full-year revenue in the current fiscal year to decline between $84 billion and $85 billion, from $86.4 billion in the fiscal year 2023.
During the quarter, the company repurchased approximately 1.9 million shares for $404 million, and it repurchased 29.9 million shares for $6.3 billion in the year.
The company also paid $633 million in dividends in the fourth quarter and $2.5 billion in dividends for the year.
In total, the company returned $8.9 billion to shareholders through share repurchases and dividends in the fiscal year 2023.
Zoom Video Communications rose 9% to $68.80 after the online communication platform reported slightly better-than-expected quarterly revenue.
Revenue in the fourth quarter decreased to $1.14 billion from $1.11 billion, net income swung to $298.8 million from a loss of $104 million, and diluted earnings per share were 95 cents compared to a loss of 36 cents.
The company estimated total revenue in the first quarter at $1.125 billion, and revenue in constant currency is expected to be approximately $1.125 billion.
Non-GAAP income from operations is expected to be between $410.0 million and $415.0 million.
First quarter non-GAAP diluted earnings per share is expected to be between $1.18 and $1.20, with approximately 316 million non-GAAP weighted average shares outstanding.
Expedia Group increased 0.2% to $135.25, and the company said it plans to lay off about 1,500 people, or 9% of its staff, as the company battles slowing demand growth after a breakneck rebound over the previous two years.
Norwegian Cruise Line soared 10% to $17.55 after the travel company reported wider-than-expected fourth-quarter results, but the company guided a strong 2024 outlook.
Revenue in the fourth quarter increased to $1.98 billion from $1.52 billion, net loss shrank to $1106.5 million from $482.8 million, and diluted loss per share shrank to 25 cents from $1.14 a year ago.
The company's cost-cutting initiatives were helped by a higher passenger count in the quarter.
Gross cruise costs per capacity day were approximately $280 in the fourth quarter, compared to $311 last quarter.
Adjusted net cruise costs, excluding fuel per capacity day, in the fourth quarter of 2023 were approximately $151, in line with the company's prior guidance.
U.S. Stocks Hold Near Record Highs, Steep Decline In Durable Goods Orders
Barry Adams
27 Feb, 2024
New York City
Stocks traded in a narrow range for the second day in a row, and benchmark indexes hovered near highs as investors prepared for a barrage of economic releases later this week.
The S&P 500 index and the Nasdaq Composite edged slightly lower, and Treasury yields edged down as investors digested the release of factory orders and new home sales data.
Durable Goods Orders Decline in January
Seasonally adjusted factory orders decreased 6.1% from the previous month in January, the U.S. Census Bureau reported Tuesday.
The orders declined 0.8% from a year ago, and the monthly decline in orders was the steepest decline since April 2020.
Excluding large-ticket transportation, orders declined 0.3%, and excluding defense, new orders fell 7.3% from the previous month.
New orders of non-defense capital goods, excluding volatile aircraft orders, which provides a better insight into capital expenditure by businesses, increased 0.1% from the previous month but fell 0.2% from a year ago.
U.S. indexes and Yields
The S&P 500 index decreased 0.3% to 5,074.64, and the Nasdaq Composite declined 0.02% to 15,992.80.
The yield on 2-year Treasury notes increased to 4.70%, 10-year Treasury notes inched down to 4.29%, and 30-year Treasury bonds edged down to 4.41%.
WTI crude oil decreased $0.10 to $77.41 a barrel, and natural gas prices increased 0.1 cent to $1.74 a thermal unit.
Gold increased by $7.60 to $2,038.26 an ounce, and silver added 16 cents to $22.68.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.69.
U.S. Stock Movers
AutoZone rose 2% to $2,825.0 after the automotive parts retailer reported better-than-expected revenue and earnings in its fiscal second quarter.
Revenue in the fiscal second quarter rose to $3.85 billion, and earnings advanced to $28.89 per share.
Macy's declined 1.9% to $19.0 after the apparel retailer reported slightly lower-than-expected revenue in the fourth quarter and offered a cautious sales outlook in the current quarter.
The retailer reported revenue in its latest quarter of $8.12 billion and estimated full-year revenue between $22.2 billion and $22.9 billion.
Lowe's Companies decreased 0.6% to $230.01 after the home improvement retailer reported better-than-expected fourth-quarter results.
The retailer also estimated full-year revenue in the current fiscal year to decline between $84 billion and $85 billion, from $86.4 billion in the fiscal year 2023.
Zoom Video Communications rose 9% to $68.80 after the online communication platform reported slightly better-than-expected quarterly revenue.
Europe Movers: Abrdn, Casino Guichard, PUMA, SEB, Schaeffler, Smith & Nephew
Inga Muller
27 Feb, 2024
Frankfurt
European markets struggled to advance, bond yields edged higher, and the euro held firm against the U.S. dollar.
The DAX index increased by 0.5% to 17,503.79, the CAC-40 index was nearly unchanged at 7,929.66, and the FTSE 100 index inched higher by 0.03% to 7,686.67.
The yield on 10-year German bonds edged up to 2.41%; French bonds inched higher to 2.89%; the UK gilts edged lower to 4.13%; and Italian bonds inched lower to 3.87%.
SEB SA declined 6% to €107.0 after Peugeot Invest sold its stake in the consumer appliance maker.
Abrdn PLC declined 1.8% to 158.65 pence after the company narrowed its full-year losses and announced its plan to cut 500 jobs as part of its cost reduction program.
Smith & Nephew increased 1.2% to 1,139.50 pence after the company reported improving financial results in the fourth quarter and in full-year 2023.
Casino Guichard Perrachon soared 29% to €0.68 after a French court approved the company's restructuring plan.
Bouygues SA advanced 5.9% to €35.98 after the diversified construction conglomerate reported core annual profit ahead of its own target.
Schaeffler AG gained 2.2% to €6.47 after the company announced its plan to build a new manufacturing plant for e-mobility solutions in the U.S.
PUMA SE increased 0.8% to €42.75 after the sportswear maker signaled softer revenue conditions in the first half of 2024, but the company reiterated its full-year 2024 outlook.
Consumer Confidence Remains Weak In Germany and France; UK Retail Inflation Eases
Bridgette Randall
27 Feb, 2024
Frankfurt
European markets struggled to extend gains as investors reviewed the latest update on consumer confidence in Germany and France.
The forward-looking consumer confidence indicator improved slightly in March as consumers battled high prices and weak economic conditions persisted.
The GfK Consumer Climate Indicator for Germany improved to 29.0 in March from an 11-month low of 2.6 in February, said the survey company GfK Group.
However, France's consumer confidence declined unexpectedly in February, the statistical agency INSEE reported Tuesday.
The consumer sentiment index decreased to 89 from 91 in January as more consumers were pessimistic about the outlook for their standard of living and their financial situation.
Also, more consumers worried about the inflation outlook and losing their jobs and felt now was not the best time to make a major purchase.
Eurozone Overall Private Sector Credit Growth Stalled
Elsewhere in the eurozone, bank lending to households increased by 0.3% to €6.87 trillion, the slowest pace of increase since March 2015, the European Central Bank reported Tuesday.
Moreover, lending to non-financial corporations increased by 0.2% in January, following an upwardly revised 0.5% rise in December.
The overall private sector credit growth, including corporations and households, increased by 0.4%, matching the rate in the previous month.
UK Retail Price Inflation Eased
Separately, the UK's retail trade association said retail price inflation dropped to a near two-year low in February.
The retail shop price index increased 2.5% from a year ago in February, slower than 2.9% in January, and the lowest since March 2022, the British Retail Consortium reported Tuesday.
Europe Indexes and Yields
The DAX index increased by 0.5% to 17,503.79, the CAC-40 index was nearly unchanged at 7,929.66, and the FTSE 100 index inched higher by 0.03% to 7,686.67.
The yield on 10-year German bonds edged up to 2.41%; French bonds inched higher to 2.89%; the UK gilts edged lower to 4.13%; and Italian bonds inched lower to 3.87%.
The euro edged higher to $1.085, the British pound inched higher to $1.268, and the U.S. dollar gained to 87.99 Swiss cents.
The natural gas price in Europe dropped 8% last week and approached the pre-Ukraine war crisis level of May 2021.
Brent crude decreased $0.11 to $82.41 a barrel, and the Dutch TTF natural gas increased by €0.74 to €23.27 per MWh.
Europe Stock Movers
SEB SA declined 6% to €107.0 after Peugeot Invest sold its stake in the consumer appliance maker.
Abrdn PLC declined 1.8% to 158.65 pence after the company narrowed its full-year losses and announced its plan to cut 500 jobs as part of its cost reduction program.
Smith & Nephew increased 1.2% to 1,139.50 pence after the company reported improving financial results in the fourth quarter and in full-year 2023.
Casino Guichard Perrachon soared 29% to €0.68 after a French court approved the company's restructuring plan.
Bouygues SA advanced 5.9% to €35.98 after the diversified construction conglomerate reported core annual profit ahead of its own target.
Japan's Core Inflation Eases at a Slower Pace, Hong Kong Awaits Annual Budget
Arjun Pandit
27 Feb, 2024
Mumbai
Financial markets in Asia reacted to local news, and inflation in Japan dropped after food prices rose at the slowest pace in more than 15 months.
Crude oil edged higher in international trading due to rising tensions in the Middle East and a lack of additional tankers to cover longer routes, as merchants have no plans to use Red Sea shipping lanes in the near future.
Japan's Inflation Drops to a 22-month Low
Stocks in Tokyo edged lower, and the annual inflation rate in Japan edged lower in January.
The Nikkei 225 Average decreased 0.2% to 39,163.85, and the Topix index gained 0.1% to 2,676.96.
Retail inflation decreased to 2.2% in January from 2.4% in December, the Ministry of Internal Affairs and Communications reported Tuesday.
Core inflation, which excludes fresh food but includes energy, fell to 2.0% from 2.3% in December and fell to within the target rate set by the Bank of Japan after staying above for 21 months in a row.
Tech stocks and large-cap companies were among the leading gainers in Tuesday's trading.
Tokyo Electron, Screen Holdings, SoftBank Group, Nippon Steel, and Mitsubishi UFJ gained between 0.5% and 4%.
China Stocks Extend Losses, Hong Kong Awaits Annual Budget
China stocks extended losses to the third day as government intervention faded and investors focused on weak economic fundamentals and the ongoing property market malaise.
The CSI 300 index increased 0.9% to 3,483.13, and the Hang Seng index edged up 0.6% to 16,645.29.
Benchmark indexes in Hong Kong extended losses to the third day after advancing 0.7% in the previous two sessions.
Hong Kong stocks were also under pressure ahead of the release of the city's budget on Wednesday, and investors are looking for incentives for property transactions, tourism, and capital inflow.
Property developers were among the leading decliners, and Sun Hung Kai, China Resources Land, China Vanke, Longfor Group, and Hang Lung Properties fell between 0.8% and 4%.
Tech stocks traded sideways, and Baidu, Meituan, Alibaba Group, JD.com, and Tencent declined between 2% and 4%.
Valuation Worries Keep India Indexes Under Pressure
Stocks in Mumbai struggled to get traction as investors debated the future rate path, economic growth drivers, and earnings results.
The Sensex and the Nifty indexes traded down but hovered near record highs after indexes extended gains in the previous weeks.
Both the Sensex and Nifty indexes have advanced for five consecutive weeks, driven by steady fund flows from domestic and international investors.
However, market participants are increasingly worried about stock valuations ahead of election jitters, and banks have faced selling pressure.
Moreover, investors have avoided tech service exporters because of uncertainties related to the impact of artificial intelligence on future growth rates, and higher interest rates have dampened the present value of future earnings.
The Sensex index decreased 66.60 points to 72,723.53, and the Nifty index fell 31.85 points to 22,090.20.
On the Mumbai stock exchange, 187 stocks traded at their 52-week highs and 11 stocks traded at their 52-week lows.
India Movers: Andhra Cements, Canara Bank, Grauer & Weil, Hind Rectifiers, MCX, Paytm, TVS Motor
Arun Goswami
26 Feb, 2024
Mumbai
Stocks in Mumbai meandered in early trading, and bond yields held firm as investors debated future rate paths and stretched market valuation.
The Sensex index decreased 66.60 points to 72,723.53, and the Nifty index fell 31.85 points to 22,090.20.
On the Mumbai stock exchange, 187 stocks traded at their 52-week highs and 11 stocks traded at their 52-week lows.
One 97 Communication, the parent company of Paytm, increased 4.5% to ₹449.0 after the company said Paytm Payments Bank plans to reorganize its board and the company founder, Vijay Shekhar Sharma, has resigned from the bank's board.
Canara Bank advanced 1% to ₹577.30 after the company announced a 1-to-5 stock split plan.
Andhra Cements decreased 3.5% to ₹106.40, and the company's promoter, Sagar Cement, plans to sell a 5% stake in the company.
The company's promotor plans to sell its stake through an open offer for sale on February 27 and 28, with a set floor price of ₹90 per share.
TVS Motor Company decreased 0.1% to ₹2,154.20 after the company's Singapore subsidiary plans to raise its stake in electric vehicle component maker Killwatt GmbH to 49% from 39.3% for ₹35 crore, or 4 million euros.
MCX increased 2.2% to ₹3,745.20 after the commodity exchange operator signed a collaboration agreement with Indonesia's largest commodity exchange, Jakarta Futures Exchange.
Hind Rectifiers soared 10% to ₹618.25 after the company received a ₹200 crore order from the Indian Railways.
Power Mech Projects jumped 1.5% to ₹5,284.0 after the company received a 396 crore order from South East Central Railway.
Grauer & Weil gained 1.9% to ₹198.0 after the company's board approved a 1-to-1 stock bonus.
U.S. and World Markets Hold Near Record Highs Ahead of Inflation Reports
Barry Adams
26 Feb, 2024
New York City
Stocks on Wall Street zig-zagged around the flatline, following a rise of more than 1% in the previous week of trading.
The S&P 500 index and the Nasdaq Composite flatlined in trading, and investors took a wait-and-see approach ahead of the release of economic data later this week.
This week, investors are looking forward to the release of the PCE Price Index, personal income and outlays, durable goods orders, the second estimate of fourth-quarter GDP data, and the goods trade balance.
Durable goods orders are scheduled to be released on Thursday, and investors are looking to get more clues about the demand for large-ticket items from businesses.
On the corporate front, investors are looking ahead to the release of earnings from Dell, HP, TJX Companies, and Lowe’s.
Investors have ignore the hawkish tone of Federal Reserve policymakers and benchmark indexes have advanced more than 30% since October.
Moreover, investors are increasingly comfortable with higher interest rates because corporations have generally been successful in passing on higher operating costs to their customers and delivering earnings growth.
Investors may not be sure about the timing of the interest rate cut, but most investors anticipate that the Federal Reserve will lower interest rates sometimes before the end of the first half.
New Home Sales Edged Higher in January
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.
Seasonally adjusted new home sales advanced for the second month in a row, after dropping to an annual pace of 607,000 in November.
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 average sales price was $534,300, higher than $493,400 from December and more than 495,600 a year ago.
The seasonally‐adjusted estimate of new houses for sale at the end of January was 456,000, a supply of 8.3 months at the current sales rate.
U.S. Indexes and Yields
The S&P 500 index decreased 0.3% to 5,074.64, and the Nasdaq Composite declined 0.02% to 15,992.80.
The yield on 2-year Treasury notes increased to 4.71%, 10-year Treasury notes inched down to 4.26%, and 30-year Treasury bonds edged down to 4.37%.
WTI crude oil decreased $0.07 to $76.41 a barrel, and natural gas prices increased 11 cents to $1.72 a thermal unit.
Gold decreased by $5.89 to $2,029.83 an ounce.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.82.
U.S. Stock Movers
Domino's Pizza increased 6.3% to $461.0, after the restaurant chain operator announced its $1 billion stock repurchase plan and increased its dividend by 25%.
Berkshire Hathaway Class B increased 1.6% to $424.0 after the diversified conglomerate's fourth-quarter operating profit increased by 30% from a year ago.
Amer Sports jumped 3% to $15.91 after several analysts made positive comments in their research notes, citing opportunities for revenue growth and margin expansion.
European Markets Flatlined, Bond Yields Advanced
European markets rested in quiet trading in Monday's trading, and investors looked ahead to the release of economic data.
This week, inflation and employment data are set to be released for the eurozone; GDP data in Italy; retail sales in Switzerland; and home price updates in the UK are also anticipated.
Germany, France, and Spain are set to release their inflation reports on Thursday.
Moreover, investors are looking forward to comments from European Central Bank President Christine Lagarde.
Market indexes hovered around their highs in France and Germany, and investors lowered rate-cut expectations in the near term.
The euro advanced after the European Central Bank's Yannis Stournaras ruled out the possibility of rate cuts in March.
In Asia, the Nikkei index closed at a new record high, but benchmark indexes in Shanghai and Hong Kong fell for the second day on the protracted property market downturn and persistent selling by foreign investors.
Market indexes in Mumbai closed down, but indexes hovered near record highs as investors reviewed a mixed batch of earnings results released last week.
Producer Prices In Spain Extended Decline to 11th Month
Spain's producer prices declined 3.8% from a year ago in January, the National Statistics Institute, or INE, reported Monday.
The measure of wholesale prices declined for the eleventh month in a row and extended the 6.3% decline in the previous month.
The energy price decline eased to 12.6% from 20.6%, and intermediate goods prices fell 5.7% after easing 4.9% in the previous month, respectively.
Producer prices, excluding energy prices, rose 0.2% in January, compared to a 0.3% decline in December.
Europe Indexes and Yields
The DAX index increased by 0.02% to 17,423.23, the CAC-40 index fell 0.5% to 7,929.82, and the FTSE 100 index inched lower by 0.3% to 7,684.30.
In the previous week, the DAX increased 1.7%, the CAC-40 index advanced 2.6%, and the FTSE 100 index decreased 0.4%.
The yield on 10-year German bonds edged up to 2.37%; French bonds inched higher to 2.83%; the UK gilts edged lower to 4.09%; and Italian bonds inched higher to 3.81%.
The euro edged higher to $1.084, the British pound inched higher to $1.264, and the U.S. dollar gained to 87.93 Swiss cents.
The natural gas price in Europe dropped 8% last week and approached the pre-Ukraine war crisis level of May 2021.
Brent crude advanced $1.28 to $82.82 a barrel, and the Dutch TTF natural gas increased by €1.01 to €24.08 per MWh.
Europe Stock Movers
Pagero Group AB declined 0.2% to SEK 49.60 after Thomson Reuters Corp. announced the acquisition of the company for $800 million of 8.1 billion Swedish kronor.
Ryanair Holdings gained as much as 1% before easing 0.9% to €20.42 on local reports that the Ireland-based discount airline may increase peak summer air fares by as much as 10%.
Stellantis NV decreased 1.9% to €24.13, and the vehicle maker announced a deal with leasing and fleet management company Ayvens for 500,000 by 2026.
Persimmon declined 3.7% to 1,359.75 pence, Barratt Developments fell 1.7% to 470.20 pence, and Taylor Wimpey dropped 3.7% to 140.53 pence after the antitrust regulator opened an investigation into the sector.
Japan Pulls Ahead, China and India Indexes Closed Down
Across Asia, the Nikkei index in Tokyo edged higher, but the CSI 300 and Hang Seng indexes turned lower on the ongoing property market worries and the lack of government measures to stabilize financial markets.
In Friday's trading, the U.S. markets gained and extended their weekly rise following another AI-powered advance in tech stocks.
Meanwhile, European markets extended weekly gains following a string of positive earnings and stock buyback announcements from Standard Chartered Bank, HSBC Bank, Mercedes-Benz, Rolls Royce, and Repsol.
Nikkei Trades at a New Record High Ahead of the Inflation Report
Benchmark indexes in Japan advanced after investors returned from a three-day holiday.
The Nikkei index advanced 0.4% to 39,259.69 and traded at new highs, tracking the advance in New York in Friday's trading.
Tech stocks led the gainers following a surge in Nvidia's earnings and an optimistic outlook.
Investors also awaited the release of the inflation update on Tuesday, followed by the release of retail sales, industrial production, and unemployment data later in the week.
Tech stocks led the gainers in Monday's trading, and SoftBank, Screen Holdings, Tokyo Electron, Advantest, and Renesas Electronics jumped between 0.5% and 1.5%.
Financial stocks also participated in the market rally for the second day in a row, and Sumitomo Mitsui, Mitsubishi UFJ Financial, and Mizuho Financial gained between 0.6% and 1.2%.
Sumco, Marubeni, Mitsubishi, Itochu, Chugai Pharmaceuticals, and Nintendo jumped between 2% and 6%.
China Stocks Resume Downward Slide
Market indexes in Shanghai and Hong Kong traded lower for the second day in a row after indexes advanced in the previous week, and investors awaited earnings from Baidu, NetEase, and Li Auto.
The CSI 300 index decreased 05% to 3,470.86, and the Hang Seng index fell 0.5% to 16,630.30.
Alibaba Group, Baidu, NetEase, JD.com, and Meituan decreased between 0.5% and 2.5%.
Li Auto edged up 0.5% ahead of the release of quarterly earnings later today, and the larger rival BYD advanced 1.8%.
Hong Kong Exchanges and Clearing decreased 1.3% ahead of its quarterly earnings later in the week.
Investors have been selling China stocks for the third year in a row due to waning confidence in the authoritarian regime, the protracted property market slump, and foreign investors reallocating capital away from China to Japan and India.
India Stocks Hover Near Record Highs
Stocks struggled in early trading on Dalal Street as investors reassessed the interest rate path.
The Reserve Bank of India's January policy meeting last week confirmed that members are not ready to lower rates in the near future, citing volatile and elevated food inflation, dashing hopes of a rate cut as early as May.
Investors were also cautious after the Nifty index traded at a new high last week after leading corporations generally met or exceeded earnings expectations in the December quarter.
The Sensex index decreased 137.45 points to 73,005.35, and the Nifty index fell 40.75 points to 22,171.95.
On the Mumbai stock exchange, 187 stocks traded at their 52-week highs and 11 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds decreased to 7.04%, and the Indian rupee strengthened to ₹82.89 against the U.S. dollar.
U.S. Major Averages Rested After Setting Records In Previous Week
Barry Adams
26 Feb, 2024
New York City
Stocks on Wall Street were in no hurry to go anywhere in Monday's trading, following a week of AI-powered surges.
The S&P 500 index and the Nasdaq Composite flatlined in early trading, and investors took a wait-and-see approach ahead of the release of economic data later this week.
This week, investors are looking forward to the release of the PCE Price Index, personal income and outlays, durable goods orders, the second estimate of fourth-quarter GDP data, and the goods trade balance.
Durable goods orders are scheduled to be released on Thursday, and investors are looking to get more clues about the demand for large-ticket items from businesses.
On the corporate front, investors are looking ahead to the release of earnings from Dell, HP, TJX Companies, and Lowe’s.
Investors have ignore the hawkish tone of Federal Reserve policymakers and benchmark indexes have advanced more than 30% since October.
Moreover, investors are increasingly comfortable with higher interest rates because corporations have generally been successful in passing on higher operating costs to their customers and delivering earnings growth.
Investors may not be sure about the timing of the interest rate cut, but most investors anticipate that the Federal Reserve will lower interest rates sometimes before the end of the first half.
U.S. Indexes and Yields
The S&P 500 index increased 0.1% to 5,094.76, and the Nasdaq Composite advanced 0.2% to 16,023.43.
The yield on 2-year Treasury notes increased to 4.71%, 10-year Treasury notes inched down to 4.26%, and 30-year Treasury bonds edged down to 4.37%.
WTI crude oil decreased $0.07 to $76.41 a barrel, and natural gas prices increased 11 cents to $1.72 a thermal unit.
Gold decreased by $5.89 to $2,029.83 an ounce.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.82.
U.S. Stock Movers
Domino's Pizza increased 6.3% to $461.0, after the restaurant chain operator announced its $1 billion stock repurchase plan and increased its dividend by 25%.
Berkshire Hathaway Class B increased 1.6% to $424.0 after the diversified conglomerate's fourth-quarter operating profit increased by 30% from a year ago.
Amer Sports jumped 3% to $15.91 after several analysts made positive comments in their research notes, citing opportunities for revenue growth and margin expansion.
Europe Movers: Bunzl, Pagero, Ryanair, Stellantis, UK Home Builders
Inga Muller
26 Feb, 2024
Frankfurt
European stock markets struggled for direction, and bond yields edged higher after investors lowered rate-cut expectations in the near future.
The DAX index increased by 0.05% to 17,428.20, the CAC-40 index fell 0.4% to 7,933.15, and the FTSE 100 index inched lower by 0.4% to 7,681.13.
In the week, the DAX increased 1.7%, the CAC-40 index advanced 2.6%, and the FTSE 100 index decreased 0.4%.
The yield on 10-year German bonds edged up to 2.37%; French bonds inched higher to 2.83%; the UK gilts edged lower to 4.09%; and Italian bonds inched higher to 3.81%.
The euro edged higher to $1.084, the British pound inched higher to $1.264, and the U.S. dollar gained to 87.93 Swiss cents.
Pagero Group AB declined 0.2% to SEK 49.60 after Thomson Reuters Corp. announced the acquisition of the company for $800 million of 8.1 billion Swedish kronor.
Ryanair Holdings gained as much as 1% before easing 0.9% to €20.42 on local reports that the Ireland-based discount airline may increase peak summer air fares by as much as 10%.
Stellantis NV decreased 1.9% to €24.13, and the vehicle maker announced a deal with leasing and fleet management company Ayvens for 500,000 by 2026.
Persimmon declined 3.7% to 1,359.75 pence, Barratt Developments fell 1.7% to 470.20 pence, and Taylor Wimpey dropped 3.7% to 140.53 pence after the antitrust regulator opened an investigation into the sector.
Bunz plc declined 4.7% to 3,150.0 pence after the international distribution group announced plans to acquire Nisbets in the UK and Pamark in Finland.
Bunzl agreed to acquire an 80% stake in Nisbets Group for £339 million in cash, and additional earnings may be payable based on financial performance in 2024.
In full-year 2023, Nisbets generated revenue of £498 million and pre-tax income of £40.2 million, and the company has an asset base of £242 million.
In January, Bunzl signed an agreement to acquire its first business in Finland, Pamark, and increase its operations in 33 countries.
Pamark distributes cleaning and hygiene, healthcare, foodservice, and safety products to a broad range of private and public sector customers in Finland.
The company generated revenue of €56 million, or about £49 million, in 2023.
European Bond Yields Edge Higher, Spain Producer Price Extends Decline to 11th Month
Bridgette Randall
26 Feb, 2024
Frankfurt
European markets rested in quiet trading in Monday's trading, and investors looked ahead to the release of economic data.
This week, inflation and employment data are set to be released for the eurozone; GDP data in Italy; retail sales in Switzerland; and home price updates in the UK are also anticipated.
Germany, France, and Spain are set to release their inflation reports on Thursday.
Moreover, investors are looking forward to comments from European Central Bank President Christine Lagarde.
Market indexes hovered around their highs in France and Germany, and investors lowered rate-cut expectations in the near term.
The euro advanced after the European Central Bank's Yannis Stournaras ruled out the possibility of rate cuts in March.
In Asia, the Nikkei index closed at a new record high, but benchmark indexes in Shanghai and Hong Kong fell for the second day on the protracted property market downturn and persistent selling by foreign investors.
Market indexes in Mumbai closed down, but indexes hovered near record highs as investors reviewed a mixed batch of earnings results released last week.
Producer Prices In Spain Extended Decline to 11th Month
Spain's producer prices declined 3.8% from a year ago in January, the National Statistics Institute, or INE, reported Monday.
The measure of wholesale prices declined for the eleventh month in a row and extended the 6.3% decline in the previous month.
The energy price decline eased to 12.6% from 20.6%, and intermediate goods prices fell 5.7% after easing 4.9% in the previous month, respectively.
Producer prices, excluding energy prices, rose 0.2% in January, compared to a 0.3% decline in December.
Europe Indexes and Yields
The DAX index increased by 0.05% to 17,428.20, the CAC-40 index fell 0.4% to 7,933.15, and the FTSE 100 index inched lower by 0.4% to 7,681.13.
In the week, the DAX increased 1.7%, the CAC-40 index advanced 2.6%, and the FTSE 100 index decreased 0.4%.
The yield on 10-year German bonds edged up to 2.37%; French bonds inched higher to 2.83%; the UK gilts edged lower to 4.09%; and Italian bonds inched higher to 3.81%.
The euro edged higher to $1.084, the British pound inched higher to $1.264, and the U.S. dollar gained to 87.93 Swiss cents.
The natural gas price in Europe dropped 8% last week and approached the pre-Ukraine war crisis level of May 2021.
Brent crude decreased $0.42 to $81.20 a barrel, and the Dutch TTF natural gas increased by €0.52 to €23.45 per MWh.
Europe Stock Movers
Pagero Group AB declined 0.2% to SEK 49.60 after Thomson Reuters Corp. announced the acquisition of the company for $800 million of 8.1 billion Swedish kronor.
Ryanair Holdings gained as much as 1% before easing 0.9% to €20.42 on local reports that the Ireland-based discount airline may increase peak summer air fares by as much as 10%.
Stellantis NV decreased 1.9% to €24.13, and the vehicle maker announced a deal with leasing and fleet management company Ayvens for 500,000 by 2026.
Persimmon declined 3.7% to 1,359.75 pence, Barratt Developments fell 1.7% to 470.20 pence, and Taylor Wimpey dropped 3.7% to 140.53 pence after the antitrust regulator opened an investigation into the sector.
Nikkei 225 In Japan Extends Gains, China Stocks Decline Ahead of Baidu and Li Auto Earnings
Arjun Pandit
26 Feb, 2024
Mumbai
Across Asia, the Nikkei index in Tokyo edged higher, but the CSI 300 and Hang Seng indexes turned lower on the ongoing property market worries and the lack of government measures to stabilize financial markets.
In Friday's trading, the U.S. markets gained and extended their weekly rise following another AI-powered advance in tech stocks.
Meanwhile, European markets extended weekly gains following a string of positive earnings and stock buyback announcements from Standard Chartered Bank, HSBC Bank, Mercedes-Benz, Rolls Royce, and Repsol.
Nikkei Trades at a New Record High Ahead of the Inflation Report
Benchmark indexes in Japan advanced after investors returned from a three-day holiday.
The Nikkei index advanced 0.4% to 39,259.69 and traded at new highs, tracking the advance in New York in Friday's trading.
Tech stocks led the gainers following a surge in Nvidia's earnings and an optimistic outlook.
Investors also awaited the release of the inflation update on Tuesday, followed by the release of retail sales, industrial production, and unemployment data later in the week.
Tech stocks led the gainers in Monday's trading, and SoftBank, Screen Holdings, Tokyo Electron, Advantest, and Renesas Electronics jumped between 0.5% and 1.5%.
Financial stocks also participated in the market rally for the second day in a row, and Sumitomo Mitsui, Mitsubishi UFJ Financial, and Mizuho Financial gained between 0.6% and 1.2%.
Sumco, Marubeni, Mitsubishi, Itochu, Chugai Pharmaceuticals, and Nintendo jumped between 2% and 6%.
China Stocks Resume Downward Slide
Market indexes in Shanghai and Hong Kong traded lower for the second day in a row after indexes advanced in the previous week, and investors awaited earnings from Baidu, NetEase, and Li Auto.
The CSI 300 index decreased 05% to 3,470.86, and the Hang Seng index fell 0.5% to 16,630.30.
Alibaba Group, Baidu, NetEase, JD.com, and Meituan decreased between 0.5% and 2.5%.
Li Auto edged up 0.5% ahead of the release of quarterly earnings later today, and the larger rival BYD advanced 1.8%.
Hong Kong Exchanges and Clearing decreased 1.3% ahead of its quarterly earnings later in the week.
Investors have been selling China stocks for the third year in a row due to waning confidence in the authoritarian regime, the protracted property market slump, and foreign investors reallocating capital away from China to Japan and India.
India Stocks Hover Near Record Highs
Stocks struggled in early trading on Dalal Street as investors reassessed the interest rate path.
The Reserve Bank of India's January policy meeting last week confirmed that members are not ready to lower rates in the near future, citing volatile and elevated food inflation, dashing hopes of a rate cut as early as May.
Investors were also cautious after the Nifty index traded at a new high last week after leading corporations generally met or exceeded earnings expectations in the December quarter.
The Sensex index decreased 137.45 points to 73,005.35, and the Nifty index fell 40.75 points to 22,171.95.
On the Mumbai stock exchange, 187 stocks traded at their 52-week highs and 11 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds decreased to 7.04%, and the Indian rupee strengthened to ₹82.89 against the U.S. dollar.
India Movers: Ashok Leyland, JSW Infra, HDFC Bank, Kotak Mahindra, Skipper
Arun Goswami
26 Feb, 2024
Mumbai
Kotak Mahindra declined 1.7% to ₹1,720.0, and Zurich Insurance agreed to acquire a 70% stake in Kotak Mahindra General Insurance for ₹5,560 crore.
Early in the month, the bank received regulatory approval for the transaction.
Infibeam Avenues decreased 1.4% to ₹34.50, and the company acquired a 20% stake in the U.S.-based AI developer XDuce for $10 million, or about ₹83 crore.
JSW Infrastructure soared 7.3% to ₹261.30 after the company was awarded a project to mechanize the dry cargo handling facility at V. O. Chidambaranar Port under a public-private partnership arrangement.
Transformers and Rectifiers inched lower by 0.8% to ₹342.0 after the company won orders worth ₹232 crore from Power Grid Corporation.
Skipper soared 4.8% to ₹354.0 after the company won a ₹737 crore order to build a 765 kV transmission line from Power Grid.
Ashok Leyland increased 0.5% to ₹173.90 after the company acquired a 49.9% stake in TVS Truck for ₹25 crore.
HDFC Bank declined a fraction to ₹1,419.45 after the company received approval from the Reserve Bank of India to sell a 90% stake in its education loan subsidiary, HDFC Credila Financial Service, to a consortium of private equity firms, including ChrysCapital Group.
AI Boom Extends U.S. Market Rally, Treasury Yields Edge Higher
Barry Adams
23 Feb, 2024
New York City
Stocks opened higher in New York, and benchmark indexes extended weekly gains in a week dominated by the Nvidia-powered market rally.
Global markets extended weekly gains after Nvidia surpassed the highest expectations set by analysts, and the company's outlook also fueled more optimism about the company's sales in the current quarter and the entire ecosystem supporting the rapid adoption of artificial intelligence.
Nvidia jumped 4% in Friday's trading and extended this year's gain to 70% and the 52-week gain to 247%.
The yield on U.S. Treasury notes inched higher after investors reassessed their interest rate outlook following hawkish comments from Fed officials on Thursday.
For the week, the S&P 500 and the Nasdaq are up 2%.
U.S. Indexes and Yields
The S&P 500 index increased 1.7% to 5,065.91, and the Nasdaq Composite advanced 2.5% to 15,963.40.
The yield on 2-year Treasury notes increased to 4.72%, 10-year Treasury notes inched up to 4.32%, and 30-year Treasury bonds edged up to 4.45%.
WTI crude oil decreased $1.57 to $77.04 a barrel, and natural gas prices decreased 12 cents to $1.60 a thermal unit and rebounded from a low last seen in September 2020.
Gold increased by $2.42 to $2,026.42 an ounce, tracking lower yields on U.S. Treasury notes.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.86.
U.S. Stock Movers
Intuit declined 1.2% to $650.0 after the accounting software developer reported mixed quarterly results.
Live Nation Entertainment soared 5.4% to $98.50 after the entertainment company reported strong revenue in the fourth quarter after business picked up around the world.
Booking Holdings decreased 7.3% to $3,625.0 after the online travel company reported stronger-than-expected quarterly results, and the company said it plans to launch a quarterly cash dividend of $8.75 per share.
Carvana soared 24.5% to $65.50 after the user-car marketplace operator reported its first-ever annual profit.
In the fourth quarter, Carvana sold 76,090 vehicles and generated sales of $2.4 billion.
In 2023, Carvana sold 312,847 vehicles for a total revenue of $10.7 billion and swung to a net income of $150 million, partly due to gains on debt reduction.
Warner Bros. Discovery dropped 8.6% to $8.75 after the media conglomerate reported weaker-than-expected fourth-quarter results.
Block soared 17% to $79.60 after the company reported better-than-expected revenue of $5.7 billion in the fourth quarter and an unexpected profit.
In the quarter, the company swung to a net income of $178 million from a loss of $114 million.
Full-year revenue rose to $7.5 billion from $6 billion, net income soared to $10 million from a loss of $541 million, and diluted earnings per share rose to 2 cents from a loss of 93 cents a year ago.