ticker

U.S. Movers: Applied Materials, Coinbase, DoorDash, Trade Desk, Toast

Scott Peters
16 Feb, 2024
New York City

DoorDash declined 7.4% to $116.92 after the delivery company reported a wider-than-expected quarterly loss.

Revenue in the fourth quarter increased 27% to $2.3 billion from $1.8 billion, net loss shrank to $154 million from $640 million, and diluted loss per share fell to 39 cents from $1.65 a year ago.

Applied Materials soared 13.1% to $212.16 after the semiconductor equipment maker reported better-than-expected quarterly results.

Net revenue in the fiscal first quarter was flat at $6.7 billion, net income rose 18% to $2.0 billion from $1.7 billion, and diluted earnings per share increased 19% to $2.41 from $2.03 a year ago.

Trade Desk jumped 17.6% to $89.50 after the digital advertising company reported better-than-expected quarterly sales and estimated a stronger-than-expected fiscal first quarter.

Coinbase Global soared 14.5% to $189.25 after the crypto trading firm reported better-than-expected fourth-quarter results.

Revenue in the fourth quarter rose to $953.8 million from $$629.1 million, net income swung to a profit of $275.7 million from a loss of $557.8 million, and diluted earnings per share were $1.04 compared to ($2.46) a year ago.

Toast soared 9% to $20.93 after the restaurant point-of-sale system developer reported fourth-quarter revenue of $1.04 billion and a net loss of 7 cents per share.

Revenue in the fourth quarter increased 35% to $1.0 billion from $769 million, net loss shrank to $36 million from $99 million, and diluted loss per share fell to 7 cents from 19 cents a year ago.

Europe Movers: Hella, Metso, NatWest Group, Segro, Swiss Re, Umicore, Volkswagen

Inga Muller
16 Feb, 2024
Frankfurt

European markets advanced in Friday's trading and extended weekly gains, bond yields held firm and the euro and the pound edged slightly lower.

The DAX index increased by 0.8% to 17,176.04, the CAC-40 index rose 0.6% to 7,789.81, and the FTSE 100 index inched higher by 0.7% to 7,653.85.

The yield on 10-year German bonds edged up to 2.38%; French bonds inched higher to 2.85%; the UK gilts edged lower to 4.09%; and Italian bonds inched higher to 3.8%.

Swiss Re declined 2.2% to CHF 101.35 despite the reinsurance company reporting a sharply higher profit in 2023, driven by improvements in its property and casualty segments.

Metso Oyj soared 11.7% to €10.66 after the Finnish mining company reported better-than-expected fourth-quarter earnings, and the company also guided an upbeat outlook.

Volkswagen Group increased 0.9% to €120.24 after the German vehicle maker signed an agreement with India's Mahindra & Mahindra to supply key electric components for its electric vehicles.

Segro plc increased 1% to 842.0 pence after the warehousing group narrowed its fiscal 2023 loss driven by rent growth and higher occupancy.

Hella declined 0.9% to €80.70 despite the German automotive supplier reporting improved adjusted sales and operating income in fiscal 2023.

NatWest Group soared 6% to 226.70 pence after the UK-based financial service group reported its best annual profit in 2023 since the financial crisis of 2007.

Umicore SA declined 2.2% to €20.50 after the Belgian mineral and battery company reported lower-than-expected sales and outlook.

Earnings before taxes, interest, depreciation, and amortization declined 18% to €472 million due to lower metals prices and investment costs.

European Markets Extend Weekly Gains, German Wholesale Prices Fall for 10th Month

Bridgette Randall
16 Feb, 2024
Frankfurt

Benchmark indexes in Europe extended weekly gains, and investors looked beyond interest rate uncertainty.

Market indexes in Paris, Frankfurt, and London inched higher by 0.7% as investors focused on earnings growth and overlooked interest rate jitters.

German Wholesale Prices Decline Extends to 10th Consecutive Month

Germany's wholesale prices declined in January from a year ago by 2.7%, the Federal Statistics Office reported Friday.

The annual pace of wholesale prices declined for the tenth month in a row following the 7.2% decline in mineral oil prices and the 16.3% fall in chemical product prices.

However, prices for fruits, vegetables, and potatoes rose 11.8%, beverages increased 6.5%, and sugar, confectionary, and baked goods rose 7.0%.

On a monthly basis, wholesale prices rose by 0.1% in January, the first increase in four months.

UK Retail Sales Rebounded In January

UK retail sales rebounded more than expected in January, the Office for National Statistics reported Friday.

Retail sales volume rebounded 3.4% from the previous month in January after dropping 3.3% in December.

The sales rebound was the largest since April 2021, and sales rose in all categories except apparel stores.

Food store sales rose 3.4%, and non-food store sales increased 3.0% in the month.

Sales at household goods stores advanced 1.8%, mainly because of the rebound in sales at hardware stores, but sales at apparel stores declined 1.4%.

On an annual basis, sales increased by 0.7%, the largest increase since March 2022.

Europe Indexes and Yields

The DAX index increased by 0.8% to 17,176.04, the CAC-40 index rose 0.6% to 7,789.81, and the FTSE 100 index inched higher by 0.7% to 7,653.85.

The yield on 10-year German bonds edged up to 2.38%; French bonds inched higher to 2.85%; the UK gilts edged lower to 4.09%; and Italian bonds inched higher to 3.8%.

The euro edged lower to $1.076, the British pound inched higher to $1.258, and the U.S. dollar gained to 88.12 Swiss cents.

Brent crude decreased $0.81 to $82.06 a barrel, and the Dutch TTF natural gas rose by €0.11 to €25.08 per MWh.

Europe Stock Movers

Swiss Re declined 2.2% to CHF 101.35 despite the reinsurance company reporting a sharply higher profit in 2023, driven by improvements in its property and casualty segments.

Metso Oyj soared 11.7% to €10.66 after the Finnish mining company reported better-than-expected fourth-quarter earnings, and the company also guided an upbeat outlook.

Volkswagen Group increased 0.9% to €120.24 after the German vehicle maker signed an agreement with India's Mahindra & Mahindra to supply key electric components for its electric vehicles.

Segro plc increased 1% to 842.0 pence after the warehousing group narrowed its fiscal 2023 loss driven by rent growth and higher occupancy.

Hella declined 0.9% to €80.70 despite the German automotive supplier reporting improved adjusted sales and operating income in fiscal 2023.

NatWest Group soared 6% to 226.70 pence after the UK-based financial service group reported its best annual profit in 2023 since the financial crisis of 2007.

Umicore SA declined 2.2% to €20.50 after the Belgian mineral and battery company reported lower-than-expected sales and outlook.

Earnings before taxes, interest, depreciation, and amortization declined 18% to €472 million due to lower metals prices and investment costs.

Nikkei Index Nears 34-year Record High, Bargain Hunters Return to Hong Kong

Arjun Pandit
16 Feb, 2024
Mumbai

Asian markets traded higher tracking gains in overnight trading in New York, and the Nikkei index in Japan soared 1.8% and inched closer to its all-time high of 38,957.44 in December 1989.

In Tokyo, the Nikkei index added 1% to 38,555.28; in Hong Kong, the Hang Seng index rose 2.4% to 16,323.13; and in Seoul, the KOSPI index added 1.2% to 2,644.27.

Nikkei In Tokyo Nears 1989 Record High

Trading in Tokyo dominated Asian markets, and the Nikkei index advanced on the hope that the Bank of Japan will keep intact its ultra-loose monetary policy after Japan entered into a technical recession and slipped behind Germany as the fourth largest economy in the world.

Tech stocks led the gainers in Tokyo after the S&P 500 index notched a new record high in overnight trading.

Tokyo Electron, Advantest, Screen Holdings, and Renesas Electronics gained between 0.5% and 5.5%.

Rakuten Group soared 6.6% to ¥779.90 after the technology conglomerate and mobile phone service provider reported a smaller annual loss.

Net loss in the year ending in December declined to ¥339.4 billion from ¥377.2 billion, and the company said it plans to skip its dividend for the first time in 23 years.

The company said it plans to increase its mobile phone subscriber base to 8 million from 6.09 million at the end of 2023, the level needed to turn the division profitable.

The technology conglomerate is struggling with its finances as ¥800 billion of bonds are maturing in 2024 and 2025, but the company plans to buy back bonds maturing in November using the $1.8 billion raised from the sale of a new bond maturing in February 2027.

Hang Seng Index Advanced After Bargain Hunters Returned

The Hang Seng index in Hong Kong surged more than 2% and extended its weekly gain to 2.2% after bargain hunters returned to increase their holdings of tech companies.

Alibaba Group, Baidu, Tencent, JD.com, and Meituan advanced between 0.2% and 4.5%.

The Hang Seng Index Company, the benchmark index manager, is scheduled to release its quarterly review of constituents later, after the close of index revisions effective March 4.

JD Logistics, Xpeng, and Kuaishou advanced on speculation that they will be included in the index starting next month.

Financial markets in mainland China are scheduled to reopen on Monday after investors return from a week-long Lunar New Year holiday.

India Stocks Extend Weekly Gains

Stocks in Mumbai looked up in early trading, and investors reviewed the last batch of earnings results.

The Sensex and the Nifty indexes advanced 0.2%, and construction, engineering, and transportation companies were in focus.

Oil and gas producers were in focus after the government hiked its windfall tax on petroleum crude oil and diesel.

The Sensex index increased 188.06 points to 72,238.44, and the Nifty index rose 67.30 points to 21,978.05.

For the week, the Sensex advanced 1.4% and the Nifty index rose 1.0%.

On the Mumbai stock exchange, 162 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds held steady at 7.08%, and the Indian rupee strengthened to ₹83.01 against the U.S. dollar.

Philippines Awards Manila Airport Contract to SMC-led Consortium

GMR Airports lost its bid to develop and operate Manila, the Philippines main airport.

The Philippines Transportation Department awarded the project to develop Ninoy Aquino International Airport to a San Miguel-led consortium.

The SMC consortium, headed by tycoon Ramon Ang, offered the central government 82% of revenue if it won the airport project privatization deal.

NAIA is ranked as the worst international airport worldwide, is one of the oldest airports in the Philippines, and has suffered from severe congestion and frequent power failures.

India's Overall Trade Deficit Shrinks in January

Overall exports in January rose to $69.7 billion from $63.80 billion, and overall imports advanced to $70.5 billion from $67.6 billion, resulting in a decline in the overall deficit to $0.7 billion from $3.9 billion a year ago.

Petroleum products, engineering goods, iron ore, electronic goods, drugs, and pharmaceuticals were the main drivers of merchandise exports in January.

India's merchandise trade deficit increased to $17.5 billion in January from $16 billion in December, the Commerce Department said today.

Exports rose 3% to $36.9 billion and imports advanced 4.2% to $54.4 billion, and falling commodity prices and weaker demand in Europe and the U.S. weighed on export shipments.

Service exports rose 17% to $32.8 billion, and imports advanced 8.3% to $16.1 billion, resulting in a traded surplus of $16.8 billion.

U.S. Averages Struggle to Advance, European Markets Closed Higher

Barry Adams
15 Feb, 2024
New York City

Stocks retained an upward bias but gains were muted after retail sales in January fell short of market expectations.

Benchmark indexes advanced for the second day in a row after falling sharply in Tuesday's trading following hotter-than-expected inflation in January.

Investors reacted to the latest earnings from Cisco Systems, Tripadvisor, Twilio, Stellantis, and Shake Shack.

Retail and Food Services Sales Declined In January

On the economic front, retail and food services sales declined in January from December, the Census Bureau announced Thursday.

Preliminary retail and food services sales, adjusted for calendar and seasonal factors but not for prices, decreased 0.8% from the previous month but were up 0.6% from a year ago.

December sales were revised lower to 0.4% from the previous estimate of 0.6%.

Retail trade sales were down 1.1% from December 2023 and 0.2% below last year.

Nonstore retailers were up 6.4% from last year, while food services and drinking places were up 6.3% from January 2023.

Jobless Claims Edged Slightly Lower

Seasonally adjusted initial jobless claims for the week ending on February 10 declined by 8,000 to 212,000 from the previous week's revised level.

The previous week's level was revised up by 2,000 from 218,000 to 220,000. The 4-week moving average was 218,500, an increase of 5,750 from the previous week's revised average.

U.S. indexes and yields

The S&P 500 index increased 0.3% to 5,013.42, and the Nasdaq Composite fell 0.1% to 15,847.21.

The yield on 2-year Treasury notes declined to 4.55%, 10-year Treasury notes decreased to 4.22%, and 30-year Treasury bonds edged down to 4.40%.

WTI crude oil increased $1.51 to $78.15 a barrel, and natural gas prices declined 3 cents to $1.57 a thermal unit, a low last seen in September 2020.

Gold increased by $10.78 to $2,003.05 an ounce after the U.S. dollar gained in international trading.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.38.

U.S. Stock Movers

Cisco Systems declined 4.1% to $48.20 after the company reported a decline in sales and earnings in the fiscal second quarter and also issued a weaker-than-expected current quarter sales and earnings outlook.

Stellantis NV, the parent of Fiat and Chrysler, increased 5.1% to $25.64 after the automobile company announced its Є3 billion stock repurchase plan and hiked its annual dividend by 16% to Є1.55 per share.

The company plans to increase shareholder return by 26% from a year ago to Є7.7 billion in 2024.

Tripadvisor gained 4.9% to $26.56 after the travel information provider reported better-than-expected quarterly results.

Twilio dropped 11.7% to $64.20 after the email delivery service provider estimated weaker-than-expected revenue in the fiscal fourth quarter.

Apple declined 0.5% to $183.13 after Berkshire Hathaway trimmed several holdings in the fourth quarter, including Apple and HP, according to regulatory filings released on Wednesday.

Earnings Drive European Markets Higher, EC Lowered GDP Growth Outlook

European markets traded higher, and investors reviewed the latest batch of corporate results and comments from ECB president Christine Lagarde.

Benchmark indexes in Paris, Frankfurt, and London advanced after upbeat earnings from Airbus, Commerzbank, Safran, Orange, Renault, and Stellantis.

Restrictive interest rates and the impact of energy price shocks fade, and inflation in the eurozone is expected to moderate in 2024, ECB President Lagarde said to the committee of the European Parliament.

Lagarde acknowledges that activities are subdued across a broad spectrum of the economy and labor market conditions are tight, but wage pressures are moderating and energy price inflation is also weakening.

The European Commission lowered its economic growth outlook for the eurozone by 0.4 percentage points to 0.8%, citing broad weaknesses in activities.

The commission said all member states are likely to expand in 2024, with Germany at 0.3%, France at 0.9%, and Italy at 0.7%.

The inflation outlook for the Euro Area was lowered to 2.7% in 2024 and 2.2% in 2025 from 3.2% in 2023.

The Eurozone merchandise trade balance swung to a surplus of €65.9 billion from a deficit of €332.2 billion in 2022.

Exports in the year dropped 1.2% to €2.83 trillion and imports dropped 13.5% to €2.77 trillion from a year ago, respectively.

The UK Economy Dips Into Recession

The UK economy entered into a technical recession after GDP contracted 0.3% from the previous quarter in the fourth quarter, the Office for National Statistics reported Thursday.

On an annual basis, the UK economy contracted 0.2% in the fourth quarter of 2023.

The UK economy contracted in the fourth quarter amid broad weakness in household consumption, net international contribution, services, and industrial production.

For the full-year 2023, GDP in the UK edged slightly higher by 0.1% after expanding by 4.3% in 2022 and 8.7% in 2021.

The Bank of England forecasts the UK economy to expand by 0.25% in 2024 and 0.75% in 2025.

Europe Indexes and Yields

The DAX index increased by 0.6% to 17,046.69, the CAC-40 index rose 0.9% to 7,743.42, and the FTSE 100 index inched higher by 0.4% to 7,597.53.

The yield on 10-year German bonds edged down to 2.31%; French bonds inched higher to 2.81%; the UK gilts edged lower to 4.02%; and Italian bonds inched higher to 3.83%.

The euro edged lower to $1.073, the British pound inched higher to $1.255, and the U.S. dollar gained to 88.32 Swiss cents.

Brent crude decreased $1.30 to $82.95 a barrel, and the Dutch TTF natural gas rose by €0.11 to €24.97 per MWh.

Europe Stock Movers

Commerzbank surged 3.8% to €10.88 after the German bank said it plans to return about one billion euros to shareholders after the company reported a 55% surge in its annual profit in 2023.

The financial services company also reported fourth-quarter earnings that were ahead of market expectations.

Schneider Electric gained 3% to €201.30 after the French company specializing in energy management lifted its dividend and estimated higher earnings and revenue in the current year.

Renault SA jumped 6.6% to €40.19 after the French automaker and parent of Nissan returned to profitability in 2023 on the back of gains in sales and improvements in margins.

Stellantis increased 4.3% to €23.61 after the parent company of Italian automaker Fiat announced its plan to buyback its own shares.

Continental AG increased 0.8% to €76.72, and the German tiremaker announced its plans to eliminate 7,150 jobs worldwide by 2025.

Yen Remains Under Pressure, Japan Stocks Dominate Asia Markets

Market indexes in Asia drifted sideways after Japan unexpectedly fell into a technical recession and Japan's economy slipped to fourth place, lagging the German economy by a small margin.

The Nikkei index advanced 1% to 38,073.91, and the Topix index added 0.2% to 2,589.88.

The yen traded above 150 against the U.S. dollar for the second day in a row this week and for the first time since November, prompting more verbal intervention from Japanese officials.

The yen has declined more than 6% against the U.S. dollar so far in 2024.

Investors have been selling the Japanese yen on the worry that U.S. interest rates are likely to stay higher for longer after the release of the latest inflation data, expanding the yawning yield gap between Japanese government bonds and U.S. Treasury bonds.

Renesas Electronics Corp. decreased 1.2% to ¥2,568.50 after the Japanese chip maker announced the acquisition of the Australian-listed software firm Altium for $5.9 billion.

Japan Falls Behind Germany

Japan's economy unexpectedly shrank by 0.1% from the previous quarter in the fourth quarter of 2023.

The GDP in the third quarter was revised to a contraction of 0.3%, the Cabinet Office reported Thursday.

For the full year 2023, Japan's economy expanded 1.9% after rising 1.0% in 2022.

The economy dipped into a recession after private consumption, which accounts for more than half of the economy, declined for the third quarter in a row on elevated costs.

The weakness of government spending and capital expenditure overcame the net positive contribution from international trade.

The GDP data from Japan is generally not that reliable and is subject to sharp revisions. Most likely, the GDP will be revised higher in the second estimate because the business conditions index is signaling rising activity.

Japan's GDP slipped to the fourth largest in the world, trailing the U.S., China, and Germany.

Nominal GDP of Japan in 2023 rose 5.7% to 591.48 trillion yen, or $4.3 trillion, based on the average exchange rate in 2023.

Meanwhile, Germany's nominal GDP expanded 6.3% to €4.21 trillion, or $4.46 trillion, when calculated average exchange rate in 2023.

China's GDP surpassed Japan's in 2010, and India's economy is forecasted to surpass the economies of Japan and Germany by as early as 2028.

Hong Kong Stocks Face Persistent Downward Pressure

Investors remained hesitant about investing in Chinese stocks, and most regional investors are looking to trim holdings with any sign of a rebound, according to a survey published by Bank of America on February 13.

The global bank conducted a survey of institutions managing about $313 billion between February 2 and 8.

The Hang Seng index increased 0.4% to 15,947.63, and stocks advanced for the second day in a row in the hopes that Chinese government-controlled funds will step up buying.

Market sentiment reversed in the afternoon session after indexes dropped as much as 0.6% in early trading.

Alibaba Group, JD.com, Tencent, Baidu, and Meituan jumped between 0.1% and 3.0%.

Property developers struggled in trading, and Longfor Group, China Vanke, and China Resources Land declined between 1% and 2.5%.

Financial markets in mainland China are closed this week to celebrate the Lunar New Year.

Chinese stocks have lost about $5 trillion in market capitalization over the three years to 2023, and indexes have extended losses by another 5% in 2024.

India Stocks Lacked Direction In Volatile Trading

Stocks in Mumbai opened higher in early trading and extended the previous day's gains.

The Sensex and the Nifty indexes advanced by 0.2% following the rebound in market indexes in overnight trading in New York and Europe after bond yields eased.

The Sensex index increased 73.58 points to 71,891.62, and the Nifty index rose 32.35 points to 21,866.65.

On the Mumbai stock exchange, 124 stocks traded at their 52-week highs and 13 stocks traded at their 52-week lows.

India's Current Account Deficit to Moderate

India's current account deficit moderated after the service sector surplus rose at a healthy pace, the Reserve Bank of India reported on Wednesday.

The service trade surplus in the fiscal third quarter ending in December rose 16% to $44.9 billion, helping the current account to shrink further.

Service exports in the quarter rose 5.2% to $87.7 billion, and imports advanced 4.2% to $42.8 billion from a year ago, respectively.

India's current account deficit in the fiscal first half ending in September moderated to 1.0% from 2.9% after the merchandise trade deficit shrank and the service sector surplus rose.

The steady growth in service sector surpluses and foreign remittances has helped the country lower its current account deficit over the last decade.

Retail and Food Services Sales Declined In January

Brian Turner
15 Feb, 2024
New York City

On the economic front, retail and food services sales declined in January from December, the Census Bureau announced Thursday.

Preliminary retail and food services sales, adjusted for calendar and seasonal factors but not for prices, decreased 0.8% from the previous month but were up 0.6% from a year ago.

December sales were revised lower to 0.4% from the previous estimate of 0.6%.

Retail trade sales were down 1.1% from December 2023 and 0.2% below last year.

Nonstore retailers were up 6.4% from last year, while food services and drinking places were up 6.3% from January 2023.

U.S. Stocks Retain Upward Bias, January Retail Sales Fall

Barry Adams
15 Feb, 2024
New York City

Stocks in early trading retained an upward bias, and investors digested a fresh batch of earnings and reviewed economic updates.

Benchmark indexes are set to advance for the second day in a row after falling sharply in Tuesday's trading following hotter-than-expected inflation in January.

Investors reacted to the latest earnings from Cisco Systems, Tripadvisor, Twilio, Stellantis, and Shake Shack.

Retail and Food Services Sales Declined In January

On the economic front, retail and food services sales declined in January from December, the Census Bureau announced Thursday.

Preliminary retail and food services sales, adjusted for calendar and seasonal factors but not for prices, decreased 0.8% from the previous month but were up 0.6% from a year ago.

December sales were revised lower to 0.4% from the previous estimate of 0.6%.

Retail trade sales were down 1.1% from December 2023 and 0.2% below last year.

Nonstore retailers were up 6.4% from last year, while food services and drinking places were up 6.3% from January 2023.

Jobless Claims Edged Slightly Lower

Seasonally adjusted initial jobless claims for the week ending on February 10 declined by 8,000 to 212,000 from the previous week's revised level.

The previous week's level was revised up by 2,000 from 218,000 to 220,000. The 4-week moving average was 218,500, an increase of 5,750 from the previous week's revised average.

Japan Economy Dips Into a Recession

Japan's economy slipped into a recession in the fourth quarter after GDP shrank by 0.1% from the previous quarter, when the economy contracted by 0.3%.

The weakness of government spending and capital expenditure overshadowed the net positive contribution from international trade.

For the full year 2023, Japan's economy expanded 1.9% after rising 1.0% in 2022.

Japan's GDP slipped to the fourth largest in the world, trailing the U.S., China, and Germany.

China's GDP surpassed Japan's in 2010, and India's economy is forecast to surpass the economies of Japan and Germany by as early as 2028.

U.S. indexes and yields

The S&P 500 index increased 0.4% to 4,971.38, and the Nasdaq Composite rose 0.4% to 15,723.63.

The yield on 2-year Treasury notes declined to 4.55%, 10-year Treasury notes decreased to 4.22%, and 30-year Treasury bonds edged down to 4.40%.

WTI crude oil decreased $0.54 to $76.10 a barrel, and natural gas prices declined 6 cents to $1.62 a thermal unit, a low last seen in September 2020.

Gold increased by $5.53 to $1,997.93 an ounce after the U.S. dollar gained in international trading.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.55.

U.S. Stock Movers

Cisco Systems declined 4.1% to $48.20 after the company reported a decline in sales and earnings in the fiscal second quarter and also issued a weaker-than-expected current quarter sales and earnings outlook.

Stellantis NV, the parent of Fiat and Chrysler, increased 5.1% to $25.64 after the automobile company announced its Є3 billion stock repurchase plan and hiked its annual dividend by 16% to Є1.55 per share.

The company plans to increase shareholder return by 26% from a year ago to Є7.7 billion in 2024.

Tripadvisor gained 4.9% to $26.56 after the travel information provider reported better-than-expected quarterly results.

Twilio dropped 11.7% to $64.20 after the email delivery service provider estimated weaker-than-expected revenue in the fiscal fourth quarter.

Apple declined 0.5% to $183.13 after Berkshire Hathaway trimmed several holdings in the fourth quarter, including Apple and HP, according to regulatory filings released on Wednesday.

U.S. Movers: Cisco, Nvidia, Stellantis, TSMC

Scott Peters
15 Feb, 2024
New York City

Cisco Systems declined 4.7% to $47.94 after the company issued a quarterly and full-year outlook that fell short of some investors' expectations.

Total revenue in the fiscal second quarter ending in January declined 6% to $12.8 billion, net income dropped 5% to $2.6 billion from $2.8 billion, and diluted earnings per share fell 3% to 65 cents from 67 cents a year ago.

Overall revenue declined, driven by a 9% fall in product revenue and a 4% increase in service revenue.

Geographically, revenue in the Americas fell 4%, in Europe and the Middle East decreased 7%, and in Asia Pacific, Japan and China declined 12%.

The company said revenue in the fiscal third quarter is expected to fall between $12.1 billion and $12.3 billion and earnings per share between 51 cents and 56 cents.

The networking gear maker's chief executive, Chuck Robbins, said in an interview with CNBC that customers are taking longer to work through inventories, and demand from its telecom and cable companies remained weak, with orders down 40% in the quarter.

Nvidia added 0.1% to $739.35 after Morgan Stanley lifted its price target to $750 from $603, citing continued strength in demand for AI chips.

TSMC, which makes advanced chips for more than 4,000 customers, including Apple and Nvidia, soared 1.1% to $130.75 after Nvidia's price upgrade.

TSMC surged 8% to NT$697 and soared as much as NT$709 in Thursday's trading after investors returned from a long holiday celebrating Lunar New Year.

Stellantis NV, the parent of Chrysler and Jeep, jumped 4.5% to $25.45 after the automaker announced a stock buyback plan of €3 billion.

Net revenue in 2023 increased 6% to €189.5 billion, and consolidated shipment volumes rose 7% to 6.17 million units.

Net profit in the year rose 11% to €18.6 billion, and adjusted operating income advanced 1% to €24.3 billion, with an adjusted operating income margin of 12.8%.

The company's market share in North America declined 130 basis points to 9.4%, with gains in Mexico more than offset by declines in the U.S. and Canada.

Europe Movers: BHP, Centrica, Commerzbank, Continental, Pernod Ricard, Renault, Safran, Schneider Electric, Stellantis

Inga Muller
15 Feb, 2024
Frankfurt

European markets rebounded, bond yields edged lower, and the pound edged lower after the UK economy entered into a technical recession.

The DAX index increased by 0.6% to 17,040.08, the CAC-40 index rose 0.9% to 7,744.96, and the FTSE 100 index inched higher by 0.2% to 7,584.95.

The yield on 10-year German bonds edged down to 2.31%; French bonds inched higher to 2.81%; the UK gilts edged lower to 4.02%; and Italian bonds inched higher to 3.83%.

Commerzbank surged 3.8% to €10.88 after the German bank said it plans to return about one billion euros to shareholders after the company reported a 55% surge in its annual profit in 2023.

The financial services company also reported fourth-quarter earnings that were ahead of market expectations.

Schneider Electric gained 3% to €201.30 after the French company specializing in energy management lifted its dividend and estimated higher earnings and revenue in the current year.

Renault SA jumped 6.6% to €40.19 after the French automaker and parent of Nissan returned to profitability in 2023 on the back of gains in sales and improvements in margins.

Stellantis increased 4.3% to €23.61 after the parent company of Italian automaker Fiat announced its plan to buyback its own shares but the automaker reported a 10% decline in operating profit in the second-half due to strikes in North America.

Continental AG increased 0.8% to €76.72, and the German tiremaker announced its plans to eliminate 7,150 jobs worldwide by 2025.

Centrica gained 3% to 138.45 pence despite the UK-based utility reporting a decline in annual profit in 2023.

Safran jumped 3.3% to €181.76 after the jet engine maker reported higher revenue and operating profit in 2023.

BHP Group declined 1.5% to 2,336.0 pence after the Australia-based mining company signaled additional $3.2 billion impairment charge linked to the failure of Samarco dam in Brazil and a $2.5 billion charge in its nickel business in Western Australia.

Pernod Ricard jumped 3.4% to €160.05 after the French spirit and wine company lowered its fiscal 2024 sales outlook but estimated demand improvement in the second-half in its key Chinese and the U.S. markets.

Airbus SE declined 1.9% to €147.34 despite the aviation company announcing a special dividend supported by strong results in 2023.

European Markets Rebound Supported by Positive Earnings, UK Economy Dips Into Recession

Bridgette Randall
15 Feb, 2024
Frankfurt

European markets traded higher, and investors reviewed the latest batch of corporate results and comments from ECB president Christine Lagarde.

Benchmark indexes in Paris, Frankfurt, and London advanced after upbeat earnings from Airbus, Commerzbank, Safran, Orange, Renault, and Stellantis.

Restrictive interest rates and the impact of energy price shocks fade, and inflation in the eurozone is expected to moderate in 2024, ECB President Lagarde said to the committee of the European Parliament.

Lagarde acknowledges that activities are subdued across a broad spectrum of the economy and labor market conditions are tight, but wage pressures are moderating and energy price inflation is also weakening.

The European Commission lowered its economic growth outlook for the eurozone by 0.4 percentage points to 0.8%, citing broad weaknesses in activities.

The commission said all member states are likely to expand in 2024, with Germany at 0.3%, France at 0.9%, and Italy at 0.7%.

The inflation outlook for the Euro Area was lowered to 2.7% in 2024 and 2.2% in 2025 from 3.2% in 2023.

The UK Economy Dips Into Recession

The UK economy entered into a technical recession after GDP contracted 0.3% from the previous quarter in the fourth quarter, the Office for National Statistics reported Thursday.

On an annual basis, the UK economy contracted 0.2% in the fourth quarter of 2023.

The UK economy contracted in the fourth quarter amid broad weakness in household consumption, net international contribution, services, and industrial production.

For the full-year 2023, GDP in the UK edged slightly higher by 0.1% after expanding by 4.3% in 2022 and 8.7% in 2021.

The Bank of England forecasts the UK economy to expand by 0.25% in 2024 and 0.75% in 2025.

Europe Indexes and Yields

The DAX index increased by 0.6% to 17,040.08, the CAC-40 index rose 0.9% to 7,744.96, and the FTSE 100 index inched higher by 0.2% to 7,584.95.

The yield on 10-year German bonds edged down to 2.31%; French bonds inched higher to 2.81%; the UK gilts edged lower to 4.02%; and Italian bonds inched higher to 3.83%.

The euro edged lower to $1.073, the British pound inched higher to $1.255, and the U.S. dollar gained to 88.32 Swiss cents.

Brent crude decreased $0.19 to $81.43 a barrel, and the Dutch TTF natural gas fell by €0.49 to €25.25 per MWh.

Europe Stock Movers

Commerzbank surged 3.8% to €10.88 after the German bank said it plans to return about one billion euros to shareholders after the company reported a 55% surge in its annual profit in 2023.

The financial services company also reported fourth-quarter earnings that were ahead of market expectations.

Schneider Electric gained 3% to €201.30 after the French company specializing in energy management lifted its dividend and estimated higher earnings and revenue in the current year.

Renault SA jumped 6.6% to €40.19 after the French automaker and parent of Nissan returned to profitability in 2023 on the back of gains in sales and improvements in margins.

Stellantis increased 4.3% to €23.61 after the parent company of Italian automaker Fiat announced its plan to buyback its own shares.

Continental AG increased 0.8% to €76.72, and the German tiremaker announced its plans to eliminate 7,150 jobs worldwide by 2025.

Japan Unexpectedly Slips Into Recession; India's Current Account Deficit Shrinks

Arjun Pandit
14 Feb, 2024
Mumbai