Market Update
U.S. Movers: Block, Carvana, Intuit, Live Nation, Warner Bros. Discovery
Scott Peters
23 Feb, 2024
New York City
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.
Europe Movers: ABB, Allianz, Chemring, Deutsche Telekom, Lufthansa, Standard Chartered
Inga Muller
23 Feb, 2024
Frankfurt
European market indexes traded around recent highs, and the euro and bond yields advanced.
The DAX index increased by 0.04% to 17,375.48, the CAC-40 index rose 0.2% to 7,928.72, and the FTSE 100 index inched higher by 0.1% to 7,689.65.
For the week, the DAX increased 1.7%, the CAC-40 index advanced 2.6%, and the FTSE 100 index decreased 0.4%.
Standard Chartered rose 7.7% to 652.0 pence after the UK-based and emerging-markets-focused bank announced a $1 billion stock buyback program.
The bank said annual profit in 2023 increased 18% to $3.47 billion from $2.95 billion a year ago.
Credit impairment charges related to its exposure to China's commercial real estate sector declined to $282 million from $582 million in 2022, suggesting that the overall picture may be less gloomy than expected.
Still, the bank has taken about $1.2 billion in charges related to its exposure to China's commercial property sector.
The bank's net interest margin increased to 1.67% in 2023 from 1.41% in 2022, and the wider net margin increased net interest income by 23% to $9.6 billion.
Allianz decreased 3% to €248.80 after the German insurance company reported slightly lower-than-expected fourth-quarter earnings.
Chemring decreased 1.5% to 357.0 pence after the aerospace and defense group reiterated its fiscal 2024 outlook.
ABB declined 1.7% to CHF 39.93, and the Swiss engineering company appointed Morten Wierod as its new chief executive officer.
Deutsche Telekom declined 2.5% to €21.78 after the German telecom operator reported a loss of €1.04 billion, or 21 euro cents, in the fourth quarter.
Deutsche Lufthansa dropped 4% to €7.20 after the German airline reshuffled its board.
European Markets Extended Weekly Gains, Germany's Economy Contracted In Fourth Quarter
Bridgette Randall
23 Feb, 2024
Frankfurt
European markets struggled to advance on the final day of the week as investors debated the future rate path and reacted to domestic corporate results.
Benchmark indexes in Germany and France hovered near the new record highs, and the index in the UK lacked direction.
In other economic news in the region, the Hungarian jobless rate increased to 4.6% in the three-month period ending in January from 4.4% in the three-month period ending in December, the statistical office reported Friday.
UK consumer confidence eased in February on weak economic conditions, the GfK survey indicated on Friday.
The consumer sentiment index decreased to -21 in February from -19 in January, and four of the five components of the index registered a decline in the month.
Germany's Q4 Economic Contraction Confirmed
Germany's fourth-quarter GDP declined 0.3% from the previous quarter after stagnating in the third quarter, confirmed Destatis in its second review released Friday.
The statistical office confirmed the data released on January 30.
The weakness in capital investment kept the overall economic growth in check after consumer spending rose by 0.2% and government spending advanced by 0.3%.
For all of 2023, GDP contracted by 0.3% or fell 0.1% when adjusted for calendar from the previous year, as estimated in the preliminary estimate released at the end of January.
Labor participation rose to 46.2 million in Germany, an increase of 216,000 or 0.5% from the previous year.
However, 0.5% fewer working hours were worked per employed person than i the fourth quarter of 2022, due to one fewer working day in the calendar year from the previous year, the Institute for Labor Market and Occupational Research of the Federal Employment Agency reported Friday.
German Business Morale Stayed Near Pre-war Low
The Ifo Business Climate Index improved to 85.5 in February from 85.2 in January, when it reached a three-and-a-half-year low.
High interest rates, weak consumer spending, and geopolitical uncertainties weighed on the sentiment of business owners, and their assessment of the current business situation stayed at the lowest level since July 2020.
Europe Indexes and Yields
The DAX index increased by 0.04% to 17,375.48, the CAC-40 index rose 0.2% to 7,928.72, and the FTSE 100 index inched higher by 0.1% to 7,689.65.
For 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 2.46%; French bonds inched higher to 2.93%; the UK gilts edged higher to 4.13%; and Italian bonds inched higher to 3.95%.
The euro edged higher to $1.082, the British pound inched higher to $1.265, and the U.S. dollar gained to 88.15 Swiss cents.
The natural gas price in Europe dropped 8% this week and approached the pre-Ukraine war crisis level of May 2021.
Brent crude increased $1.02 to $82.51 a barrel, and the Dutch TTF natural gas declined by €0.58 to €22.61 per MWh.
Europe Stock Movers
Standard Chartered rose 7.7% to 652.0 pence after the UK-based and emerging-markets-focused bank announced a $1 billion stock buyback program.
The bank said annual profit in 2023 increased 18% to $3.47 billion from $2.95 billion a year ago.
Credit impairment charges related to its exposure to China's commercial real estate sector declined to $282 million from $582 million in 2022, suggesting that the overall picture may be less gloomy than expected.
Still, the bank has taken about $1.2 billion in charges related to its exposure to China's commercial property sector.
The bank's net interest margin increased to 1.67% in 2023 from 1.41% in 2022, and the wider net margin increased net interest income by 23% to $9.6 billion.
Allianz decreased 3% to €248.80 after the German insurance company reported slightly lower-than-expected fourth-quarter earnings.
Chemring decreased 1.5% to 357.0 pence after the aerospace and defense group reiterated its fiscal 2024 outlook.
ABB declined 1.7% to CHF 39.93, and the Swiss engineering company appointed Morten Wierod as its new chief executive officer.
Deutsche Telekom declined 2.5% to €21.78 after the German telecom operator reported a loss of €1.04 billion, or 21 euro cents, in the fourth quarter.
Deutsche Lufthansa dropped 4% to €7.20 after the German airline reshuffled its board.
China New Home Price Decline Extends to 7th Month, China and India Register Weekly Gains
Arjun Pandit
23 Feb, 2024
Mumbai
Markets in China traded down but gained in India, Korea, and Australia after investors reassessed the global rate outlook, China's property market slump, and a string of positive earnings in Japan, the U.S., and Europe.
In overnight trading, the S&P 500 index and the tech-heavy Nasdaq Composite in New York jumped more than 2% after the closely watched semiconductor company and maker of graphics cards reported a sharp jump in revenue and earnings, surpassing market expectations.
Nvidia's solid earnings fueled a rally in artificial intelligence-linked stocks and rippled around the world, lifting market indexes to new highs in Japan, Germany, and France in Thursday's trading.
The Nikkei 225 index soared 2.2% to 39,098.68 and jumped to a new record high in Thursday's trading.
Financial markets in Japan are closed on Friday to celebrate the Emperor's Birthday holiday.
The Kospi index in Seoul added 0.3% and trimmed the weekly decline to 0.4%, and the ASX 200 index advanced 0.4% and cut the weekly losses to 0.3%.
China Stocks Halt Weeklong Rally
China indexes traded down in Friday's trading, and investors booked profit following a worldwide surge after Nvidia's results and current-year outlook for its AI chip-powered cards and servers surpassed market expectations.
The CSI 300 index, the popular index with institutional investors tracking mainland stocks, halted its eight-day rally, the longest market stretch since July 2020.
The CSI 300 index decreased 0.2% to 3,479.51, and the Hang Seng Index declined 0.4% to 16,680.17, but extended the weekly gain to over 2.4%.
Benchmark indexes in Shanghai and Hong Kong traded down after new home prices in the 70 largest cities declined 0.7% from a year ago in January.
Home prices declined for the seventh month in a row and fell at the fastest pace since March 2023, the National Bureau of Statistics reported Friday.
Home prices in the two largest cities, Beijing and Shanghai, advanced, defying the national trend.
The annual home price increase in Beijing moderated to 1.3% from 1.7% and in Shanghai to 4.2% from 4.7% a year ago, respectively.
However, investors bid up property developers' stocks after fewer cities recorded a monthly price decline. New home prices fell 0.3% in January from the previous month, after falling 0.4% in December.
Longfor Group, China Resources Land, China Vanke, and Sun Hung Kai Properties advanced between 1% and 4%.
Tech stocks rallied and participated in the global surge in semiconductor and artificial intelligence-linked stocks after Nvidia's blowout earnings.
However, Alibaba Group, Tencent, and JD.com declined around 1%, but Baidu and Trip.com jumped more than 3%.
India Stocks Extend Weekly Gain, Nifty Trades at New Record High
Stocks in Mumbai advanced in early trading amid positive global market sentiment, and the rupee strengthened.
The Nifty and the Sensex indexes advanced as investors reviewed the latest minutes of the RBI's policy meeting.
Committee members voiced caution about lowering the interest rate too soon amid volatile and rising food price inflation.
Members also discussed the difficulty of lowering inflation from near 5% to below the target rate of 4%.
The Sensex index increased 236.20 points to 73,394.44, and the Nifty index rose 72.55 points to 22,290.03.
On the Mumbai stock exchange, 101 stocks traded at their 52-week highs and 3 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds decreased to 7.06%, and the Indian rupee strengthened to ₹82.85 against the U.S. dollar.
Olectra Greentech increased 1.9% to ₹2,102.95 after the company, in collaboration with Evey Trans, received a ₹4,000 crore award to supply and maintain 2,400 buses by BEST in Mumbai.
Brihanmumbai Electric Supply and Transport Undertaking, or BEST, is the sole operator of local bus services in Mumbai.
India Movers: Angel One, Gujarat Ambuja, Jana SFB, Olectra, Texmaco Rail, Vodafone Idea
Arun Goswami
22 Feb, 2024
Mumbai
Gujarat Ambuja Exports decreased 0.3% to ₹402.50 after the company set March 8 as the record date for a 1-to-1 bonus stock issue.
Texmaco Rail & Engineering added 4.7% to ₹191.0 after the company announced a board meeting on February 27 to evaluate fund-raising options.
Bandhan Bank increased 1.5% to ₹203.50 after the company appointed former Citi India executive and veteran banker Rajeev Mantri as chief financial officer as of February 22.
Angel One decreased 0.5% to ₹3,072.35 after the stock brokerage firm plans to raise ₹2,000 crore to expand beyond mutual funds to fintech apps and services.
Olectra Greentech increased 1.9% to ₹2,102.95 after the company, in collaboration with Evey Trans, received a ₹4,000 crore award to supply and maintain 2,400 buses by BEST in Mumbai.
Brihanmumbai Electric Supply and Transport Undertaking, or BEST, is the sole operator of local bus services in Mumbai.
Jana Small Finance Bank decreased 1.7% to ₹454.80 after the bank reported a rise in profit and net interest income in the December quarter.
Net interest income in the quarter increased 24.4% to 548.5 crore and net income advanced 12.8% to 134.6 crore from a year ago, respectively.
Vodafone Idea increased 6.5% to ₹16.35, and the company announced a board meeting on February 27 to evaluate fund-raising proposals.
Nvidia Earnings Lift Indexes In the U.S., Germany, France, and Japan to New Record Highs
Barry Adams
22 Feb, 2024
New York City
Benchmark indexes on Wall Street advanced after Nvidia's quarterly results surpassed elevated expectations.
The S&P 500 index increased 1.6%, and the Nasdaq Composite advanced 2.4%.
Nvidia said revenue in the fourth quarter soared 265% from a year ago to $22.1 billion, driven by a surge in demand for artificial intelligence-driven applications.
“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” said Jensen Huang, founder and CEO of Nvidia.
Nvidia's blowout results boosted other semiconductor stocks, and ASML, AMD, TSMC, Intel, and Qualcomm jumped between 2% and 4%.
Nvidia stock has jumped 61% so far this year and soared 274% in the last 52- weeks of trading.
Treasury yields edged higher after the latest policy meeting minutes showed that policymakers are worried that lowering the interest rate too soon may prolong higher inflation.
Initial Jobless claims decreased to 201,000 in the week ending February 17 from 213,000 in the previous week, the U.S. Department of Labor reported Thursday.
Existing Home Sales Rebounded In January
Existing home sales rose 3.1% from the previous month to a seasonally adjusted annual rate of 4 million in January, the National Association of Realtors reported Thursday.
Sales declined 1.7% from the previous year in January.
Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.
"While home sales remain sizably lower than a couple of years ago, January's monthly gain is the start of more supply and demand," said NAR Chief Economist Lawrence Yun.
The median existing-home price for all housing types in January was $379,100, an increase of 5.1% from $360,800 a year ago.
All four U.S. regions posted price increases.
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 4.70%, 10-year Treasury notes inched up to 4.33%, and 30-year Treasury bonds edged up to 4.49%.
WTI crude oil increased $0.65 to $78.57 a barrel, and natural gas prices decreased 10 cents to $1.66 a thermal unit and rebounded from a low last seen in September 2020.
Gold increased by $3.76 to $2,021.23 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 104.08.
U.S. Stock Movers
Nvidia Corp. jumped 15.1% to $778.54 after the advanced semiconductor chipmaker reported a 265% jump in revenue in its latest quarter.
Revenue in the fourth quarter increased to $22.1 billion from $6.2 billion, net income soared 769% to $12.3 billion from $1.4 billion, and diluted earnings per share jumped to $4.93 from 57 cents a year ago.
For the fiscal year, revenue jumped 126% to $60.9 billion, net income soared 581% to $29.7 billion from $4.93 billion, and diluted earnings per share advanced to $11.93 from $1.74 a year ago.
The closely watched Data Center business' sales soared fivefold to $18.4 billion from $3.6 billion. The business segment includes the company's popular H100 graphics card used for powering generative artificial intelligence apps.
Lucid Group declined 8.1% to $3.40 after the electric vehicle maker reported weaker-than-expected revenue in its latest quarter as losses widened.
Rivian Automotive dropped 17.2% to $12.74 after the company reported weaker-than-expected quarterly results and said electric vehicle production in 2024 was 57,000, lower than 57,232 a year ago.
Revenue in the fourth quarter was $1.32 billion, a net loss of $1.52 billion from $1.72 billion a year ago.
Moderna increased 4.4% to $91.50 after the vaccine maker reported larger-than-expected revenue in the fourth quarter and an unexpected profit.
Market Indexes In Germany and France Reach New Highs
European markets advanced in Thursday's trading as investors awaited the release of the latest policy meeting minutes later in the day.
Benchmark indexes in Frankfurt, Paris, and London advanced, and bond yields edged higher as investors scaled back hopes of a rate in the near future.
Market sentiment was also bolstered after a private survey of the service sector showed the smallest decline in eight months in February.
Moreover, positive earnings from AXA, Zurich Insurance, Lloyds Banking Group, and Rolls Royce supported the advance in indexes.
Eurozone Private Sector Contraction Slowed In February
The HCOB Eurozone Composite PMI rose to 48.9 in February from 47.9 in the previous month, according to a preliminary estimate released by S&P Global.
Overall activities declined for the ninth month in a row after the downturn in manufacturing was offset by a stable level of activity in the service sector.
New order inflow continued to decline, but employment levels rose for the second month in a row.
The services purchasing managers' index increased to a seven-month high of 50.0 from 48.4 in January, while the index for manufacturing eased to 46.1 from 46.6 in the previous month.
Europe Indexes and Yields
The DAX index increased by 1.5% to 17,374.81, the CAC-40 index rose 1.3% to 7,912.15, and the FTSE 100 index inched higher by 0.3% to 7,684.49.
The yield on 10-year German bonds edged up to 2.45%; French bonds inched higher to 2.92%; the UK gilts edged higher to 4.11%; and Italian bonds inched higher to 3.94%.
The euro edged higher to $1.085, the British pound inched higher to $1.267, and the U.S. dollar gained to 87.74 Swiss cents.
Brent crude increased $0.49 to $83.52 a barrel, and the Dutch TTF natural gas declined by €0.93 to €23.05 per MWh.
Europe Stock Movers
Zurich Insurance gained 3.3% to CHF 461.20 after the Swiss reinsurance company announced a stock repurchase plan.
Nestle SA declined 4.4% to CHF 94.69 after the largest packaged food maker in the world reported weaker-than-expected organic sales growth in its latest fiscal year.
Repsol SA increased 4.5% to €14.32 after the Spanish energy company committed to returning 4.6 billion in cash dividends to shareholders between 2024 and 2027.
WPP PLC declined 2.7% to 759.60 pence, despite the UK-based global advertising firm reporting full-year revenue and earnings in line with market expectations.
Accor SA increased 5.1% to €39.86 after the French hotel group reported a better-than-expected annual core profit.
Lloyds Banking Group rose 2.2% after the UK-based bank reported a rise in its annual profit.
AXA increased 2.8% to €32.05 after the French insurance group reported an increase in its underlying profit in the fiscal year 2023.
The insurance company also announced a stock buyback plan.
Rolls Royce soared 8.8% to 358.40 pence after the aviation and power engineering firm reported a sharp rise in its annual profit in fiscal year 2023 and estimated a higher profit in 2024.
Japan's Nikkei 225 Surpassed Record High After 34 Years
Markets in Asia generally traded higher, and investors reassessed the latest policy meeting minutes from the Federal Reserve.
Benchmark indexes in Tokyo advanced, and tech stocks led the gainers following the strong quarterly results from Nvidia.
The Nikkei 225 advanced 2.2% to 39,098.68 and closed above its record high 38,915.87, set on December 29, 1989.
The price-driven index, which favors higher-priced stocks over market caps, has surged over 17% in the year so far, and the index has advanced the most among the largest 15 financial markets in the world.
The benchmark index has been flirting around the record high level for weeks after strong interest from foreign investors supported the gain in the index for the second year in a row.
The Nikkei index had fallen to as low as 8,200 in 2011 after a string of natural disasters following the tsunami and earthquake, leading to the meltdown of the Fukushima nuclear power plant.
The broader Topix index, which is favored by financial professionals, is still trading 8.5% below its record high in 1989.
Tech stocks were among the leading gainers after Nvidia reported a three-fold increase in its quarterly revenue on the back of solid demand for its AI chips.
Disco Corp., Tokyo Electron, Advantest, SoftBank, and Screen Holdings increased between 4% and 10%.
The Au Jibun Bank Japan Manufacturing PMI Index unexpectedly declined to 47.2 in February from 48.0 in January, according to the preliminary estimate released by the bank.
The decline in the index was the deepest since August 2020, following the decline in new orders and export sales.
The Au Jibun Bank Japan Services PMI Index decreased to 52.5 in February from a four-month high of 53.1 in January.
The Japanese yen traded above 150 against the U.S. dollar after the release of the U.S. Federal Reserve's January policy meeting minutes.
Policymakers noted that interest rates may be nearing their peak in the current tightening cycle, but it may be too soon to lower rates because that could prolong higher inflation for a longer period.
China Indexes Rebound on Property Reform Hopes
Market indexes in Shanghai and Hong Kong continued to advance and extend weekly gains in the hopes that the Chinese government would follow through with meaningful and solid stimulus and policy measures.
So far, the Chinese government and policymakers have treated the 3-year decline in stock market indexes as market volatility driven by speculators and not rooted in economic fundamentals.
The CSI 300 index increased 0.5% to 3,474.63, and the Hang Seng index added 0.6% to 16,609.96.
Property developers extended gains, and Henderson Land, China Resources Land, Sun Hung Kai Properties, China Vanke, and Longfor Group advanced between 1.5% and 4%.
trip.com Group soared 7% to HK$355.0 after the online travel booking site reported better-than-expected fourth quarter financial results.
Banks were under pressure for the second day in a row after HSBC Bank reported weaker-than-expected results in its fourth-quarter results.
China Merchants Bank declined, but the Industrial and Commercial Bank of China and the Agriculture Bank of China advanced.
India Stocks Extend Weekly Losses
Stocks in Mumbai traded down and extended weekly losses as investors debated the future rate path, state of the economy, and stock valuation.
The Nifty and Sensex indexes declined in Thursday's trading on the worry that global interest rates will stay higher for longer after the latest Federal Reserve's policy meeting minutes showed resistance to lower rates too soon.
Stocks were also under pressure amid worries about stretched valuations, and banks, tech services exporters, and automotive vehicle makers were among the leading decliners.
The Sensex index decreased 405.63 points to 72,201.35, and the Nifty index fell 133.50 points to 21,935.55.
On the Mumbai stock exchange, 214 stocks traded at their 52-week highs and 11 stocks traded at their 52-week lows.
Mishra Dhatu Nigam rose 9.3% to ₹440.85 after the central government permitted 100% foreign direct investment in projects making satellite components.
U.S. Movers: Lucid Group, Moderna, Nvidia, Rivian Automotive
Scott Peters
22 Feb, 2024
New York City
Nvidia Corp. jumped 13.1% to $762.86 after the advanced semiconductor chipmaker reported a 265% jump in revenue in its latest quarter.
Revenue in the fourth quarter increased to $22.1 billion from $6.2 billion, net income soared 769% to $12.3 billion from $1.4 billion, and diluted earnings per share jumped to $4.93 from 57 cents a year ago.
For the fiscal year, revenue jumped 126% to $60.9 billion, net income soared 581% to $29.7 billion from $4.93 billion, and diluted earnings per share advanced to $11.93 from $1.74 a year ago.
The closely watched Data Center business' sales soared fivefold to $18.4 billion from $3.6 billion. The business segment includes the company's popular H100 graphics card, used for powering generative artificial intelligence apps.
Lucid Group declined 8.1% to $3.40 after the electric vehicle maker reported weaker-than-expected revenue in its latest quarter as losses widened.
Revenue in the fourth quarter declined to $157.1 million from $257.7 million; net loss increased to $653.7 million from $472.6 million; and diluted loss per share expanded to 29 cents from 28 cents a year ago.
The company produced 2,391 vehicles in the fourth quarter and 8,428 vehicles in 2023, meeting the higher end of 2023 annual production guidance of 8,000 to 8,500 vehicles.
The company delivered 1,734 vehicles in the fourth quarter and 6,001 vehicles in 2023, up 37% compared to full-year 2022.
Rivian Automotive dropped 17.2% to $12.74 after the company reported weaker-than-expected quarterly results and lowered its 2024 electric vehicle production estimate to 57,000, compared to 57,232 in 2023.
Revenue in the fourth quarter increased to $1.32 billion from $0.66 billion, net loss declined to $1.52 billion from $1.72 billion, and diluted loss per share shrank to $1.58 from $1.87 a year ago.
Moderna increased 4.4% to $91.50 after the vaccine maker reported larger-than-expected revenue in the fourth quarter and an unexpected profit.
S&P 500 and Nasdaq Soar After Nvidia's Blowout Earnings
Barry Adams
22 Feb, 2024
New York City
Benchmark indexes on Wall Street advanced after Nvidia's quarterly results surpassed elevated expectations.
The S&P 500 index increased 1%, and the Nasdaq Composite advanced 2%.
Nvidia said revenue in the fourth quarter soared 265% from a year ago to $22.1 billion, driven by a surge in demand for artificial intelligence-driven applications.
“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” said Jensen Huang, founder and CEO of Nvidia.
Nvidia's blowout results boosted other semiconductor stocks, and ASML, AMD, TSMC, Intel, and Qualcomm jumped between 2% and 4%.
Nvidia stock has jumped 40% so far this year and soared 225% in the last 52- weeks of trading.
Investors are also awaiting the release of the weekly jobless claims update and existing home sales data later today.
Treasury yields edged higher after the latest policy meeting minutes showed that policymakers are worried that lowering the interest rate too soon may prolong higher inflation.
U.S. indexes and yields
The S&P 500 index increased 1.2% to 5,030.81, and the Nasdaq Composite advanced 2.1% to 15,830.84.
The yield on 2-year Treasury notes increased to 4.70%, 10-year Treasury notes inched up to 4.33%, and 30-year Treasury bonds edged up to 4.49%.
WTI crude oil increased $0.19 to $77.72 a barrel, and natural gas prices decreased 7 cents to $1.69 a thermal unit and rebounded from a low last seen in September 2020.
Gold increased by $2.91 to $2,027.72 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 103.78.
U.S. Stock Movers
Nvidia Corp. jumped 13.1% to $762.86 after the advanced semiconductor chipmaker reported a 265% jump in revenue in its latest quarter.
Revenue in the fourth quarter increased to $22.1 billion from $6.2 billion, net income soared 769% to $12.3 billion from $1.4 billion, and diluted earnings per share jumped to $4.93 from 57 cents a year ago.
For the fiscal year, revenue jumped 126% to $60.9 billion, net income soared 581% to $29.7 billion from $4.93 billion, and diluted earnings per share advanced to $11.93 from $1.74 a year ago.
The closely watched Data Center business' sales soared fivefold to $18.4 billion from $3.6 billion. The business segment includes the company's popular H100 graphics card used for powering generative artificial intelligence apps.
Lucid Group declined 8.1% to $3.40 after the electric vehicle maker reported weaker-than-expected revenue in its latest quarter as losses widened.
Rivian Automotive dropped 17.2% to $12.74 after the company reported weaker-than-expected quarterly results and said electric vehicle production in 2024 was 57,000, lower than 57,232 a year ago.
Revenue in the fourth quarter was $1.32 billion, a net loss of $1.52 billion from $1.72 billion a year ago.
Moderna increased 4.4% to $91.50 after the vaccine maker reported larger-than-expected revenue in the fourth quarter and an unexpected profit.
Europe Movers: Accor, AXA, Lloyds Banking, Mercedes-Benz, Nestle, Repsol, Rolls Royce, WPP, Zurich Insurance
Inga Muller
22 Feb, 2024
Frankfurt
Benchmark indexes in Paris and Frankfurt traded at new record highs after a slew of positive earnings supported market enthusiasm.
The DAX index increased by 1.1% to 17,310.18, the CAC-40 index rose 0.8% to 7,870.45, and the FTSE 100 index inched higher by 0.1% to 7,666.60.
The yield on 10-year German bonds edged up to 2.45%; French bonds inched higher to 2.92%; the UK gilts edged higher to 4.11%; and Italian bonds inched higher to 3.94%.
Zurich Insurance gained 3.3% to CHF 461.20 after the Swiss reinsurance company announced a stock repurchase plan.
Nestle SA declined 4.4% to CHF 94.69 after the largest packaged food maker in the world reported weaker-than-expected organic sales growth in its latest fiscal year.
Repsol SA increased 4.5% to €14.32 after the Spanish energy company committed to returning 4.6 billion in cash dividends to shareholders between 2024 and 2027.
WPP PLC declined 2.7% to 759.60 pence, despite the UK-based global advertising firm reporting full-year revenue and earnings in line with market expectations.
Accor SA increased 5.1% to €39.86 after the French hotel group reported a better-than-expected annual core profit.
Lloyds Banking Group rose 2.2% after the UK-based bank reported a rise in its annual profit.
AXA increased 2.8% to €32.05 after the French insurance group reported an increase in its underlying profit in the fiscal year 2023.
The insurance company also announced a stock buyback plan.
Rolls Royce soared 8.8% to 358.40 pence after the aviation and power engineering firm reported a sharp rise in its annual profit in fiscal year 2023 and estimated a higher profit in 2024.
Mercedes-Benz Group jumped 5.1% to €71.54 after the German automobile company lifted its dividend and estimated stable revenue in 2024.
Full-year 2023 revenue increased by 2% to €153.2 billion from €150.0 billion, and earnings before interest and taxes decreased to €19.7 billion from €20.5 billion.
Mercedes-Benz cars and vans sales increased 1.5% to 2,491,800 vehicles; battery-operated electric vehicles sales surged 61% to 240,700 units from 149,200; and eVans sales soared 51% to 22,700 units from 15,000 a year ago.
The company proposed to increase its dividend to €5.30 per share, up from €5.20 in 2022.
The company also proposed a stock repurchase plan of €3 billion, to commence immediately after the conclusion of the current stock buyback plan and be completed before the annual general meeting in 2025.
Market Indexes In Germany and France Reach New Highs
Bridgette Randall
22 Feb, 2024
Frankfurt
European markets advanced in Thursday's trading as investors awaited the release of the latest policy meeting minutes later in the day.
Benchmark indexes in Frankfurt, Paris, and London advanced, and bond yields edged higher as investors scaled back hopes of a rate in the near future.
Market sentiment was also bolstered after a private survey of the service sector showed the smallest decline in eight months in February.
Moreover, positive earnings from AXA, Zurich Insurance, Lloyds Banking Group, and Rolls Royce supported the advance in indexes.
Eurozone Private Sector Contraction Slowed In February
The HCOB Eurozone Composite PMI rose to 48.9 in February from 47.9 in the previous month, according to a preliminary estimate released by S&P Global.
Overall activities declined for the ninth month in a row after the downturn in manufacturing was offset by a stable level of activity in the service sector.
New order inflow continued to decline, but employment levels rose for the second month in a row.
The services purchasing managers' index increased to a seven-month high of 50.0 from 48.4 in January, while the index for manufacturing eased to 46.1 from 46.6 in the previous month.
Europe Indexes and Yields
The DAX index increased by 1.1% to 17,310.18, the CAC-40 index rose 0.8% to 7,870.45, and the FTSE 100 index inched higher by 0.1% to 7,666.60.
The yield on 10-year German bonds edged up to 2.45%; French bonds inched higher to 2.92%; the UK gilts edged higher to 4.11%; and Italian bonds inched higher to 3.94%.
The euro edged higher to $1.085, the British pound inched higher to $1.267, and the U.S. dollar gained to 87.74 Swiss cents.
Brent crude increased $0.42 to $83.45 a barrel, and the Dutch TTF natural gas declined by €0.11 to €23.87 per MWh.
Europe Stock Movers
Zurich Insurance gained 3.3% to CHF 461.20 after the Swiss reinsurance company announced a stock repurchase plan.
Nestle SA declined 4.4% to CHF 94.69 after the largest packaged food maker in the world reported weaker-than-expected organic sales growth in its latest fiscal year.
Repsol SA increased 4.5% to €14.32 after the Spanish energy company committed to returning 4.6 billion in cash dividends to shareholders between 2024 and 2027.
WPP PLC declined 2.7% to 759.60 pence, despite the UK-based global advertising firm reporting full-year revenue and earnings in line with market expectations.
Accor SA increased 5.1% to €39.86 after the French hotel group reported a better-than-expected annual core profit.
Lloyds Banking Group rose 2.2% after the UK-based bank reported a rise in its annual profit.
AXA increased 2.8% to €32.05 after the French insurance group reported an increase in its underlying profit in the fiscal year 2023.
The insurance company also announced a stock buyback plan.
Rolls Royce soared 8.8% to 358.40 pence after the aviation and power engineering firm reported a sharp rise in its annual profit in fiscal year 2023 and estimated a higher profit in 2024.
Japan's Nikkei 225 Surpassed Record High After 34 Years, China Stocks Waver
Arjun Pandit
22 Feb, 2024
Mumbai
Markets in Asia generally traded higher, and investors reassessed the latest policy meeting minutes from the Federal Reserve.
Benchmark indexes in Tokyo advanced, and tech stocks led the gainers following the strong quarterly results from Nvidia.
The Nikkei 225 advanced 2.2% to 39,098.68 and closed above its record high 38,915.87, set on December 29, 1989.
The price-driven index, which favors higher-priced stocks over market caps, has surged over 17% in the year so far, and the index has advanced the most among the largest 15 financial markets in the world.
The benchmark index has been flirting around the record high level for weeks after strong interest from foreign investors supported the gain in the index for the second year in a row.
The Nikkei index had fallen to as low as 8,200 in 2011 after a string of natural disasters following the tsunami and earthquake, leading to the meltdown of the Fukushima nuclear power plant.
The broader Topix index, which is favored by financial professionals, is still trading 8.5% below its record high in 1989.
Tech stocks were among the leading gainers after Nvidia reported a three-fold increase in its quarterly revenue on the back of solid demand for its AI chips.
Disco Corp., Tokyo Electron, Advantest, SoftBank, and Screen Holdings increased between 4% and 10%.
The Au Jibun Bank Japan Manufacturing PMI Index unexpectedly declined to 47.2 in February from 48.0 in January, according to the preliminary estimate released by the bank.
The decline in the index was the deepest since August 2020, following the decline in new orders and export sales.
The Au Jibun Bank Japan Services PMI Index decreased to 52.5 in February from a four-month high of 53.1 in January.
The Japanese yen traded above 150 against the U.S. dollar after the release of the U.S. Federal Reserve's January policy meeting minutes.
Policymakers noted that interest rates may be nearing their peak in the current tightening cycle, but it may be too soon to lower rates because that could prolong higher inflation for a longer period.
China Indexes Rebound on Property Reform Hopes
Market indexes in Shanghai and Hong Kong continued to advance and extend weekly gains in the hopes that the Chinese government would follow through with meaningful and solid stimulus and policy measures.
So far, the Chinese government and policymakers have treated the 3-year decline in stock market indexes as market volatility driven by speculators and not rooted in economic fundamentals.
The CSI 300 index increased 0.5% to 3,474.63, and the Hang Seng index added 0.6% to 16,609.96.
Property developers extended gains, and Henderson Land, China Resources Land, Sun Hung Kai Properties, China Vanke, and Longfor Group advanced between 1.5% and 4%.
trip.com Group soared 7% to HK$355.0 after the online travel booking site reported better-than-expected fourth quarter financial results.
Banks were under pressure for the second day in a row after HSBC Bank reported weaker-than-expected results in its fourth-quarter results.
China Merchants Bank declined, but the Industrial and Commercial Bank of China and the Agriculture Bank of China advanced.
India Stocks Extend Weekly Losses
Stocks in Mumbai traded down and extended weekly losses as investors debated the future rate path, state of the economy, and stock valuation.
The Nifty and Sensex indexes declined in Thursday's trading on the worry that global interest rates will stay higher for longer after the latest Federal Reserve's policy meeting minutes showed resistance to lower rates too soon.
Stocks were also under pressure amid worries about stretched valuations, and banks, tech services exporters, and automotive vehicle makers were among the leading decliners.
The Sensex index decreased 405.63 points to 72,201.35, and the Nifty index fell 133.50 points to 21,935.55.
On the Mumbai stock exchange, 214 stocks traded at their 52-week highs and 11 stocks traded at their 52-week lows.
Mishra Dhatu Nigam rose 9.3% to ₹440.85 after the central government permitted 100% foreign direct investment in projects making satellite components.
India Movers: Bank of Baroda, Bharti Airtel, Eureka Forbes, Grasim, Midhani, NBCC, Spicejet, Shree Renuka
Arun Goswami
22 Feb, 2024
Mumbai
Stocks in Mumbai extended weekly losses, and banks, industrial, and consumer products companies were among the leading decliners.
The Sensex index decreased 405.63 points to 72,201.35, and the Nifty index fell 133.50 points to 21,935.55.
On the Mumbai stock exchange, 214 stocks traded at their 52-week highs and 11 stocks traded at their 52-week lows.
Grasim Industries declined 1.6% to ₹2,159.55, and the company announced the launch of its paint business and commenced production at three facilities in Haryana, Punjab, and Tamil Nadu.
Earlier, the company estimated a total investment of ₹10,000 crore and said it planned to produce pain in five plants with a total capacity of 1.3 billion liters per year.
NBCC increased 3.3% to ₹143.85 after the company won several approvals to redevelop properties worth ₹10,000 crore.
Mishra Dhatu Nigam rose 9.3% to ₹440.85 after the central government permitted 100% foreign direct investment in projects making satellite components.
Midhani is controlled by the Department of Defense, and the company is the only titanium producer in India.
Bharti Airtel declined 3.2% to ₹1,102.35 after the Uttar Pradesh GST office fined the company a ₹13.25 lakh penalty.
The company said it plans to appeal the penalty decision.
Spicejet increased 4.3% to ₹68.74 after the company's board approved the ₹316 crore fund raising through a preferential issue.
Bank of Baroda declined 1.4% to ₹271.15 after the bank raised ₹2,500 crore through a Basel II-compliant bond offering.
Eureka Forbes declined 0.7% to ₹506.45 after 1.79 crore shares, or 9.3% of all outstanding shares of the company, changed hands in a block trade.
Balrampur Chini Mills declined 1% to ₹377.35 after the government hiked the price of sugarcane paid to farmers to ₹340 per quintal.
Shree Renuka Sugars declined 2.2%, and EID Parry dropped 1.4% to ₹628.85.