Market Update
US Movers: Coca-Cola, Hasbro, JetBlue, Restaurant Brands, Zoominfo
Scott Peters
13 Feb, 2024
New York City
The Coca-Cola Company gained 1.1% to $60.40 after the beverage maker reported mixed quarterly results in the fourth quarter.
Revenue in the quarter rose 7% to $10.85 billion from $10.1 billion after the company passed on higher prices to customers and bottlers; net income declined 3% to $1.98 billion from $2.03 billion; and diluted earnings per share fell to 46 cents from 47 cents a year ago.
Unit case volume increased by 2% in the quarter, and organic revenue rose by 12%, largely driven by double-digit price increases in Europe and the Middle East, Latin America, and Asia Pacific.
JetBlue Airways soared 13.2% to $6.82 after activist investor Carl Icahn reported a 10% stake in the company and added that the company's stock is undervalued.
Zoominfo Technologies increased 16% to $18.40 after the market intelligence company reported better-than-expected quarterly results.
Revenue in the December quarter increased to $316.4 million from $301.7 million, net income swung to a loss of $5.5 million from a profit of $23.2 million, and diluted earnings per share were a loss of 1 cent compared to a profit of 8 cents a year ago.
During the year 2023, the company repurchased 22.6 million shares at an average price of $17.68 for an aggregate of $400.1 million.
The company guided fiscal first quarter 2024 revenue between $307 million and $310 million and full-year revenue between $1.26 billion and $1.28 billion.
Hasbro declined 5.8% to $48.30 after the toymaker reported sharply lower-than-expected earnings in the fourth quarter.
Revenue in the fourth quarter declined 23% to $1.29 billion from $1.7 billion, net loss soared to $1.06 billion from $128 million, and diluted loss per share expanded to $7.64 from 93 cents a year ago.
Revenue in the fourth quarter declined 23% after the growth in the Wizards of the Coast and Digital Gaming segments of 7%, which was more than offset by declines of 25% in the consumer products segment and a 49% plunge in the entertainment segment.
Operating loss of $1,912 million compared to an operating profit of $23 million in 2022. 2023 loss includes $1,846 million (non-cash) of goodwill and intangible asset impairment associated with the eOne Film and TV business and within Family Brands to align with a change in entertainment strategy.
Restaurant Brands International was nearly unchanged at $78.30 after the parent company of Tim Hortons reported better-than-expected quarterly results.
Revenue in the fourth quarter increased to $1.8 billion from $1.69 billion, net income advanced to $508 million from $229 million, and diluted earnings per share rose to $1.60 from 74 cents a year ago.
Systemwide sales across all restaurant brands rose 9.6%, slower than 11.4% in the quarter a year ago.
Consolidated comparable store sales increased 5.8%, including a 4.6% rise at international locations.
Comparable sales at Tim Hortons coffee chain rose 8.4%, Burger King increased 6.3%, Popeyes Louisiana Kitchen advanced 5.5%, and Firehouse Subs increased 3.5%.
Slower Decline In Inflation Sparked a Sharp Selloff On Wall Street
Barry Adams
13 Feb, 2024
New York City
Benchmark indexes on Wall Street turned lower after a hotter-than-expected inflation report.
The S&P 500 index and the Nasdaq Composite declined 0.5% after consumer prices rose at a faster-than-expected pace in January.
The yield on 2-year and 10-year Treasury notes advanced after inflation, and core inflation in January was ahead of market expectations.
Consumer price inflation in January eased to a 3.1% annual pace in January from 3.4% in December, the U.S. Bureau of Labor Statistics reported Thursday.
The decline in overall inflation was driven by the fall in energy price inflation by 4.6% from 2.0% in December, and food prices rose at a slower pace of 2.6% compared to 2.7% in the previous month.
Compared to the previous month, consumer price inflation rose by 0.3%, the fastest pace of increase in four months.
Core inflation, which excludes food and energy price inflation, held steady at an annual pace of 3.9% but rose to a monthly rate of 0.4%.
U.S. indexes and yields
The S&P 500 index decreased 1.5% to 4,969.35, and the Nasdaq Composite fell 1.8% to 15,632.51.
The yield on 2-year Treasury notes advanced to 4.60%, 10-year Treasury notes increased to 4.28%, and 30-year Treasury bonds edged up to 4.43%.
WTI crude oil increased $0.63 to $77.52 a barrel, and natural gas prices declined 2 cents to $1.76 a thermal unit, a low last seen in September 2020.
Gold increased by $8.85 to $2,025.52 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 103.97.
U.S. Stock Movers
The Coca-Cola Company gained 1.1% to $60.40 after the beverage maker reported mixed quarterly results in the fourth quarter.
Revenue in the quarter rose to $10.85 billion after the company passed on higher prices to customers and bottlers.
JetBlue Airways soared 13.2% to $6.82 after activist investor Carl Icahn reported a 10% stake in the company and added that the company's stock is undervalued.
Zoominfo Technologies increased 16% to $18.40 after the market intelligence company reported better-than-expected quarterly results.
Hasbro declined 5.8% to $48.30 after the toymaker reported sharply lower-than-expected earnings in the fourth quarter.
Restaurant Brands International was nearly unchanged at $78.30 after the parent company of Tim Hortons reported better-than-expected quarterly results.
Europe Movers: Randstad, Siltronic, TUI, Thyssenkrupp Nucera
Inga Muller
13 Feb, 2024
Frankfurt
Market indexes in Europe held steady, and investors reviewed the inflation update in Switzerland and jobless data from the UK and France.
The DAX index decreased 0.6% to 16,928.84, the CAC-40 index fell 0.3% to 7,664.90, and the FTSE 100 index inched lower by 0.1% to 7,564.79.
The yield on 10-year German bonds edged down to 2.35%; French bonds inched higher to 2.85%; the UK gilts edged higher to 4.07%; and Italian bonds inched higher to 3.90%.
TUI AG increased 2.7% to €7.03 after the tour operator reported a narrower loss in the fiscal first quarter and the company reiterated its annual outlook.
Higher demand for tour packages and improved prices and rates also helped the company cut its losses.
Revenue in the fiscal first quarter ending in December increased by 14.7% to €4.3 billion from €3.7 billion. group's loss shrank to €83.5 million from 231.8 million, and loss per share decreased to 24 cents from 89 cents a year ago.
During the quarter, the customer count increased by 6% to 3.5 million, and the average load factor increased by 1 percentage point to 86%.
The company estimated fiscal year 2024 sales to increase by 10% and underlying operating earnings to increase at least by 25%.
At the end of the quarter, net debt declined by 24% to €3.98 billion from €5.25 billion a year ago.
Thyssenkrupp Nucera increased 5.9% to €15.82 after the hydrogen company said its fiscal first quarter revenue increased by more than a third because of the rising demand for its electrolyser technology.
Randstad NV added 1.3% to €53.96 after the Dutch staffing company said it plans to return €632 million to shareholders, comprising of €2.28 in regular dividend and €1.27 in special dividend.
Organic revenue in the fourth quarter of 2023 declined 8.6%, with underlying operating earnings of €265 million, and cash flow increased 19% to €883 million.
Siltronic AG declined 7.9% to €84.95 after the German silicon wafer maker reported a weak sales outlook and lowered its dividend payout.
The German semiconductor company estimated sales in the current year to match €1.51 billion in 2023, a decline of 16% from €1.8 billion in 2022.
The company blamed the sales growth weakness on the high level of customer inventories and estimated first-half sales to match sales in the second-half of 2023.
Moreover, the company also lowered its 2023 dividend payout to €1.20 from €3.0 in the previous year.
The company also announced its plan to cut its capital expenditures by more than half.
French and UK Jobless Rates Diverge In Q4, Swiss Inflation Eased In January
Bridgette Randall
13 Feb, 2024
Frankfurt
European markets traded sideways as traders digested the latest economic data in the region and avoided taking positions ahead of the release of the U.S. inflation report later in the day.
Benchmark indexes in Frankfurt, Paris, and London edged slightly lower after lackluster trading in the previous session.
Investors are looking forward to the release of the U.S. consumer price inflation to slip below the 3% annual rate in January, easing pressure on the Federal Reserve to keep higher rates for longer.
Investors reacted to corporate results from TUI, the hydrogen company ThyssenKrupp Nucera, and Siltronic.
Closer to home, the French jobless rate held steady in the fourth quarter of 2023, and Swiss inflation eased in January.
The jobless rate in the UK in the fourth quarter of 2023 decreased to 3.8% from 3.9% in the third quarter, according to the data released by the Office for National Statistics.
A separate report by the agency showed UK regular wages rose 6.2% in the final quarter, the lowest increase in fourteen months.
The higher-than-expected increase in regular wages also supported the advance in the pound, easing the pressure on the Bank of England to lower rates.
French Jobless Rate Held Steady In Final Quarter of 2023
The French jobless rate held steady at 7.5% in the fourth quarter after rising in the previous two quarters in a row, the statistical office INSEE reported Tuesday.
The jobless rate in the fourth quarter matched the rate in the third quarter but rose 0.4 percentage points in the final quarter of 2022, when the rate was the lowest since 1982 and significantly lower than the peak of 10.5% in mid-2015.
The number of unemployed persons increased by 29,000 to 2.3 million, and the jobless rate
Over the quarter, the youth unemployment rate decreased by 0.2 points for 15–24 year olds to 17.5%, increasing by 0.6 percentage points from the previous year.
The unemployment rate for those between the ages of 25 and 49 increased by 0.2 points over the quarter, to 7.0%, and is 0.5 points above its level a year earlier.
Finally, the jobless rate for those aged 50 or over was almost stable over the quarter at 5.0%.
The activity rate for those between 15 and 64 old increased by 0.4 percentage points from a year ago to 74.1%, the highest level since record-keeping began in 1975.
Swiss Inflation Eased In January
The Swiss inflation rate dropped to the lowest level in January since October 2021, after inflation for housing and utilities eased, the Swiss Federal Statistics Office reported Tuesday.
Consumer price inflation eased to 1.3% in January from 1.7% in December, after housing and utility inflation decreased to 2.5% from 3.3% in the previous month.
Food and non-alcoholic beverage inflation slowed to 2.3% from 3.3%, and restaurant and hotel price inflation slowed to 2.3% from 2.8%.
The core rate of inflation, which excludes volatile food and energy prices, rose 1.2%.
On a monthly basis, prices rose 0.2% in January from December, reflecting higher electricity and hotel prices.
Europe Indexes and Yields
The DAX index decreased 0.6% to 16,928.84, the CAC-40 index fell 0.3% to 7,664.90, and the FTSE 100 index inched lower by 0.1% to 7,564.79.
The yield on 10-year German bonds edged down to 2.35%; French bonds inched higher to 2.85%; the UK gilts edged higher to 4.07%; and Italian bonds inched higher to 3.90%.
The euro edged lower to $1.076, the British pound inched higher to $1.264, and the U.S. dollar gained to 88.15 Swiss cents.
Brent crude increased $0.64 to $82.66 a barrel, and the Dutch TTF natural gas advanced by €0.30 to €26.03 per MWh.
Europe Stock Movers
TUI AG increased 2.7% to €7.03 after the tour operator reported a narrower loss in the fiscal first quarter and the company reiterated its annual outlook.
Higher demand for tour packages and improved prices and rates also helped the company cut its losses.
Thyssenkrupp Nucera increased 5.9% to €15.82 after the hydrogen company said its fiscal first quarter revenue increased by more than a third because of the rising demand for its electrolyser technology.
Randstad NV added 1.3% to €53.96 after the Dutch staffing company said it plans to return €632 million to shareholders and meet its capital allocation plan.
Tech Rally Drives Tokyo Indexes Higher 2%, India Stocks Rebound After Inflation Weakened
Arjun Pandit
13 Feb, 2024
Mumbai
Market indexes in Tokyo jumped after investors returned from a three-day weekend, and the rise in tech stocks led the gainers.
The Nikkei 225 index soared 2.4% to 37,798.89 and traded at a fresh 34-year high, and the yen weakened to 149.10 against the U.S. dollar.
Lasertec, Advantest, Screen Holdings, and Tokyo Electron gained between 1.5% and 2.5%, respectively.
SoftBank Group soared 6.1% to ¥8,479.0 following the surge in Arm Holdings in New York trading on Friday and Monday.
Market indexes in Seoul advanced 1%, but in Sydney, they struggled to stay above the flatline.
Elsewhere in the region, financial markets were closed in mainland China, Taiwan, Hong Kong, Malaysia, and Singapore to celebrate the Lunar New Year.
NMDC, Union Bank, Punjab National Bank, BHEL, and GMR Airports traded higher after MSCI added the companies to its MSCI India Standard index.
The index provider increased its India weight to 18.2%, a record high, only to be surpassed by the weight of China-based companies in its global index.
The independent research service provider removed 66 Chinese companies from its MSCI Global Standard Index and added five Indian and Chinese companies, but did not remove any Indian companies.
The revised weights will be reflected in the indexes after the close on February 29.
Crude oil and gold edged lower, and benchmark indexes in New York struggled to advance after lackluster trading in the morning.
In Mumbai, market sentiment was positive in Tuesday's trading, and investors reviewed the latest updates on inflation and industrial output.
The Sensex and the Nifty indexes advanced after consumer price inflation slowed in January and industrial production rebounded in December.
Consumer price inflation eased to 5.1% in January from 5.69% in December, after food price inflation softened to 8.3% from 9.53% in the previous month, according to the Ministry of Statistics and Programme Implementation.
Industrial output expanded 3.8% in December, faster than the 2.4% increase in November, a separate report from the agency showed.
Mining production expanded 5.1%, followed by a 3.9% rise in manufacturing production and a 1.2% increase in electricity output.
During the first nine months of the fiscal year 2024, industrial output rebounded 6.1% from a year ago due to sustained expansion in all three categories.
The Sensex index decreased 77.60 points to 71,087.45, and the Nifty index fell 17.70 points to 21,597.02.
Coal India advanced 2.2% to ₹442.20 after the mining company reported its quarterly results.
Revenue from operations increased 2.8% to ₹36,153.97 crore from ₹35,169.33 crore, and net profit rose 17.8% to ₹9,093.69 crore from ₹7,719.11 crore a year ago, respectively.
Coal production in the quarter increased to 199 million tons from 180 million tons a year ago.
The company also declared its second interim dividend of ₹5.25 per share to be payable on February 20.
India Movers: Bharat Forge, Coal India, HAL, HEG, NHPC, Motherson, Phoenix Mills, Tilaknagar Industries
Arun Goswami
13 Feb, 2024
Mumbai
Benchmark indexes in Mumbai edged higher after lackluster trading in the early morning following the easing of retail inflation in January and the acceleration of industrial production in December.
The Sensex index decreased 77.60 points to 71,087.45, and the Nifty index fell 17.70 points to 21,597.02.
On the Mumbai stock exchange, 229 stocks traded at their 52-week highs and 21 stocks traded at their 52-week lows.
One 97 Communications declined 4.5% to ₹403.0 after Reserve Bank of India Governor Das rejected pleas to review the central bank's against the company's banking subsidiary.
Governor Das said the central bank's action followed a comprehensive review of the company's operations and processes.
NMDC, Union Bank, Punjab National Bank, BHEL, and GMR Airports traded higher after MSCI added the companies to its India-focus index.
HEG Ltd. decreased 5.1% to ₹1,673.20 after the maker of graphite electrodes reported its quarterly results.
Revenue in the December quarter increased 3.3% to ₹585.62, but net income plunged 64% to 37.08 crore from a year ago, respectively.
Tilaknagar Industries rose 2.5% to ₹248.95 after the company reported its latest quarterly results.
Revenue in the December quarter rose 19.1% to ₹805.97 crore, but net income dropped 42.3% to ₹43.77 crore from ₹75.88 crore a year ago.
Hindustan Aeronautics added 0.7% to ₹2,858.30 after the company reported its latest quarterly results.
Revenue in the December quarter increased 7% to ₹6,061.28 crore from ₹5,665.54 crore, and after-tax net income advanced 9.2% to ₹,1261.40 crore from ₹1,155.19 crore a year ago, respectively.
Diluted earnings per share rose to ₹18.74 from ₹17.26 a year ago.
The company also declared an interim dividend of ₹22 per share.
Coal India advanced 2.2% to ₹442.20 after the mining company reported its quarterly results.
Revenue from operations increased 2.8% to ₹36,153.97 crore from ₹35,169.33 crore, and net profit rose 17.8% to ₹9,093.69 crore from ₹7,719.11 crore a year ago, respectively.
Coal production in the quarter increased to 199 million tons from 180 million tons a year ago.
The company also declared its second interim dividend of ₹5.25 per share to be payable on February 20.
Bharat Forge declined 3.5% to ₹1,091.90 after the company reported a weaker than expected increase in its quarterly sales.
Revenue in the December quarter posted its third quarter increased 15.3% to ₹3,866.41 crore from ₹3,353.36 crore, and net income rose 223.2% to ₹254.45 crore from ₹78.72 crore a year ago, respectively.
NHPC increased 3.4% to ₹83.90 after the hydroelectric power company reported a decline in profit in its latest quarter.
Revenue in the December quarter increased by 20.4% to ₹2,055.50 crore from ₹2,582.76 crore, and net income declined by 26.8% to ₹491.90 crore from ₹671.67 crore a year ago, respectively.
Samvardhana Motherson declined 1.3% to ₹113.35 after the automotive component maker reported a weaker-than-expected increase in quarterly sales.
Revenue in the December quarter increased 26.8% to ₹25,697.56 crore from ₹20,267.24 crore, and net income advanced 26.5% to ₹633.30 crore from ₹500.73 crore a year ago, respectively.
Phoenix Mills decreased 5.7% to ₹2,505.90, despite the retail mall operator reporting a rise in profit in its latest quarter.
Revenue in the December quarter increased 44.2% to ₹986.1 crore from ₹683.8 crore, and net profit jumped 58.4% to ₹279.4 crore from ₹176.4 crore a year ago, respectively.
U.S. Stocks Inch Higher After Morning Doldrums, Europe Indexes Close at New Record Highs
Barry Adams
12 Feb, 2024
New York City
Benchmark indexes hovered near the flatline amid optimism about economic growth, accommodating labor markets, and positive corporate earnings.
The S&P 500 and the Nasdaq 100 indexes hovered near their record highs, and traders generally refrained from making significant moves ahead of the release of the consumer price inflation report tomorrow.
Moreover, economists are looking to review the release of retail trade and industrial production data on Thursday and the producer price index on Friday.
Last week, U.S. stock markets continued to pull ahead following strong earnings, dovish monetary policy, and a resilient economy.
The S&P 500 index traded above 5,000 for the first time after reaching 4,000 on April 2, 2021.
Benchmark indexes extended weekly gains for the fifth week in a row after December’s U.S. consumer price inflation was revised slightly lower in a busy week of earnings.
last week, market sentiment was also bolstered following the decline in the U.S. trade deficit in 2023 after weak energy prices drove the decline in imports at a faster pace than the rise in exports.
This week the earnings season is entering into its fourth week, with leading companies including Airbnb, Applied Materials, Auto Nation, Cisco, Coca-Cola, Deere, DoorDash, Instacart, Kraft Heinz, and Lyft set to announce their results.
Russia's Trade Surplus Shrank In 2023
Russia's trade surplus in 2023 dropped 58.5% from a year ago to $140 billion, after exports to Europe plunged 68% to $84.9 billion but to Asia rose 5.6% to $306.6 billion.
Overall, goods exports dropped 28.3% to $425.1 billion, and imports declined 11.7% to $285.1 billion.
Exports to the Americas declined by 40.4%, but to Africa they soared by 42.9%.
Russia's imports from Europe also fell 12.3% to $78.5 billion as the country ramped up purchases from Asia by 29.2% to $187.5 billion, according to the state-run Interfax news agency, citing the federal customs agency.
U.S. indexes and yields
The S&P 500 index decreased 0.03% to 5,031.07, and the Nasdaq Composite fell 0.03% to 15,841.08.
The yield on 2-year Treasury notes decreased to 4.48%, 10-year Treasury notes eased to 4.18%, and 30-year Treasury bonds edged up to 4.39%.
WTI crude oil decreased $0.31 to $76.55 a barrel, and natural gas prices declined 3 cents to $1.83 a thermal unit, a low last seen in September 2020.
Gold decreased by $8.72 to $2,015.46 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 104.14.
U.S. Stock Movers
Diamondback Energy rose 3.1% to $156.36 after the company agreed to merge with Endeavor Energy Partners in a deal worth $26 billion.
After the completion of the deal, Diamondback shareholders are expected to hold 60.5% stake in the merged entity, and Endeavor shareholders are expected to hold the remaining stake.
After the merger, Diamondback will be the largest independent and third-largest shale gas producer in the Permian Basin, Texas, following Exxon Mobil and Chevron.
Endeavor Energy Partners is the largest independent shale gas producer in the prolific shale gas field in the Permian Basin, spanning western Texas and eastern New Mexico.
The merged company anticipated pumping 816,000 barrels of oil equivalent per day and saving annual operating costs by $550 million.
Diamondback said the Endeavor deal is expected to close in the fourth quarter.
The merger between Diamondback and Endeavor follows the largest deal in Permian region after Exxon Mobil announced to acquire Pioneer Natural Resource for $64 billion in October 2023.
European Markets Breakout After Lackluster Morning Trading
European markets advanced in Monday's trading and attempted to extend gains from the previous week.
Market indexes in London, Paris, and Frankfurt gained quiet trading, and investors prepared for a busy week of corporate results and earnings releases.
Financial markets in Japan were closed to celebrate a public holiday and Greater China, South Korea, Malaysia, and Singapore were closed for the Lunar New Year.
Investors are looking ahead to the release of GDP estimates in the Euro Area and the UK and employment, retail sales, and inflation data in the UK.
European markets struggled in the previous week's trading, and investors lowered their rate-cut expectations, but worries about domestic retail sales and export growth overshadowed market sentiment.
Last week, economic data from the Federal Statistics Office in Germany showed factory orders declined 1.5% in 2023 from a year ago and exports fell 1.4% from a year ago amid weak global demand.
Germany, the largest economy in the Euro Area, contracted 0.3% in 2023, and the economic weakness is likely to persist in the first and second quarters of 2024.
Moreover, the German economy is likely to enter a technical recession as the high cost of living and elevated interest rates are negatively impacting consumer demand and small and medium-sized businesses, the backbone of the German economy.
Despite the market jitters of the last three weeks, benchmark indexes are trading near record highs, and corporate earnings are ahead of market expectations.
Europe Indexes and Yields
The DAX index increased 0.6% to 17,028.81, the CAC-40 index rose 0.5% to 7,685.27, and the FTSE 100 index inched higher by 0.01% to 7,573.69.
The yield on 10-year German bonds edged down to 2.34%; French bonds inched lower to 2.84%; the UK gilts edged lower to 4.04%; and Italian bonds inched higher to 3.90%.
The euro edged lower to $1.077, the British pound inched higher to $1.262, and the U.S. dollar gained to 87.50 Swiss cents.
Brent crude increased $0.48 to $81.69 a barrel, and the Dutch TTF natural gas decreased by €1.34 to €25.78 per MWh.
Europe Stock Movers
Tod's SpA soared 18% to €42.92 after the LVMH-backed private equity group Catterton announced its plans to acquire a 36% stake in the Italian luxury fashion accessories maker.
Nordex SE increased 7.9% to €10.25 after the German wind turbine maker reported 2023 sales that surpassed its own estimate.
Consolidated revenue increased to €6.5 billion, exceeding its own target range between €5.6 billion and €6.1 billion.
Novo Nordisk A/S increased 0.3% to DKK 834.60 after the controlling shareholder in the company said it plans to invest up to $7 billion by 2030.
Tritax Big Box PLC decreased 2.5% to 156.0 pence after the UK-based real estate investment trust agreed to acquire UK Commercial Property REIT Ltd.
Tritax will exchange 0.444 of its own share for one share of UKCM.
Quiet Trading In Asian, Lunar New Year Holidays
Across Asia, markets in mainland China, Hong Kong, Taiwan, South Korea, Malaysia, and Singapore are close for the celebration of Lunar New Year, and in Japan, it is National Foundation Day.
In Friday's trading, market indexes in New York advanced as investors looked beyond interest rate uncertainty and shifted their focus to resilient consumer spending and a healthy labor market.
Surging Exports to Lift Japan's GDP Growth
Japan's economy is likely to show an expansion in rising exports of vehicles and electronic goods, according to the Tokyo-based Japan Center for Economic Research.
The independent research company estimated 0.8% growth in Japan's economy in December from the previous month, despite the persistent weakness in domestic consumption.
The center also estimated the GDP expanded by 2.6% in the December quarter from the previous quarter on a solid performance of exports.
The government is set to release its preliminary estimate on February 15.
India-based GMR Leads Manila Airport Project Bidding
India-based GMR is viewed as a front-runner for a $3.0 billion project to upgrade Manila's Ninoy Aquino International Airport, which currently handles 48 million passengers a year.
The government is set to announce the winner of the project on February 15, and GMR's bid is considered a top contender for the project, beating three other local consortiums of bidders, according to sources in transportation ministry of Philippines.
Philippines has short listed three out of the four qualified bids, and the winner of the project is scheduled to be announced on February.
If GMR wins the bid, this will be the third airport project in the Philippines, after winning the projects to develop and operate Cebu International Airport in 2014 and Clark International Airport in 2019.
France-based Airports de Paris, the operator of three large airports in France, is looking to acquire a 49% stake in GMR.
Market indexes in Mumbai struggled to advance in Monday's trading despite optimism about upcoming earnings releases and positive international market sentiment.
The Sensex and the Nifty indexes advanced, and investors are looking ahead to a busy week of earnings and economic data.
On the earnings front, Mahindra & Mahindra, IRCTC, Coal India, SAIL, and Bharat Forge are some of the leading companies scheduled to release their quarterly results this week.
Among economic releases, market participants are also looking forward to the release of the international trade balance, industrial output, and overall inflation.
The Sensex index decreased 122.22 points to 71,473.27, and the Nifty index fell 14.05 points to 21,768.45.
On the Mumbai stock exchange, 229 stocks traded at their 52-week highs and 21 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.08%, and the Indian rupee strengthened to ₹82.96 against the U.S. dollar.
Navin Fluorine International gained 0.7% to ₹3,049.35 after the Life Insurance Company, through its various funds, increased its stake in the company to 7.07% from 5.03%.
ONGC declined 2.3% to ₹261.40 after the energy explorer reported a decline in earnings in its latest quarter.
Net profit in the December quarter dropped 10% to ₹10,356 crore from ₹11,489 crore a year ago.
Diamondback Energy to Acquire Privately Held Endeavor for $26 Billion
Scott Peters
12 Feb, 2024
New York City
Diamondback Energy rose 3.1% to $156.36 after the company agreed to merge with Endeavor Energy Partners in a deal worth $26 billion.
After the completion of the deal, Diamondback shareholders are expected to hold 60.5% stake in the merged entity, and Endeavor shareholders are expected to hold the remaining stake.
After the merger, Diamondback will be the largest independent and third-largest shale gas producer in the Permian Basin, Texas, following Exxon Mobil and Chevron.
Endeavor Energy Partners is the largest independent shale gas producer in the prolific shale gas field in the Permian Basin, spanning western Texas and eastern New Mexico.
The merged company anticipated pumping 816,000 barrels of oil equivalent per day and saving annual operating costs by $550 million.
Diamondback said the Endeavor deal is expected to close in the fourth quarter.
The merger between Diamondback and Endeavor follows the largest deal in Permian region after Exxon Mobil announced to acquire Pioneer Natural Resource for $60 billion in late 2023.
U.S. Major Stock Averages Trade Near Record Levels, Treasury Yields Hovers at 2-month High
Barry Adams
12 Feb, 2024
New York City
Benchmark indexes hovered near the flatline amid optimism about economic growth, accommodating labor markets, and positive corporate earnings.
Last week, U.S. stock markets continued to pull ahead following strong earnings, dovish monetary policy, and a resilient economy.
The S&P 500 index traded above 5,000 for the first time after reaching 4,000 on April 2, 2021.
Benchmark indexes extended weekly gains for the fifth week in a row after December’s U.S. consumer price inflation was revised slightly lower in a busy week of earnings.
last week, market sentiment was also bolstered following the decline in the U.S. trade deficit in 2023 after weak energy prices drove the decline in imports at a faster pace than the rise in exports.
This week the earnings season is entering into its fourth week, with leading companies including Airbnb, Applied Materials, Auto Nation, Cisco, Coca-Cola, Deere, DoorDash, Instacart, Kraft Heinz, and Lyft set to announce their results.
Moreover, economists are looking to review the release of January consumer price inflation on Tuesday, retail trade and industrial production data on Thursday and the producer price index on Friday.
U.S. indexes and yields
The S&P 500 index decreased 0.03% to 5,031.07, and the Nasdaq Composite fell 0.03% to 15,841.08.
The yield on 2-year Treasury notes decreased to 4.46%, 10-year Treasury notes eased to 4.15%, and 30-year Treasury bonds edged up to 4.36%.
WTI crude oil decreased $0.75 to $76.12 a barrel, and natural gas prices declined 1 cent to $1.83 a thermal unit, a low last seen in September 2020.
Gold decreased by $2.82 to $2,021.26 an ounce and extended the previous week's gains 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 104.14.
U.S. Stock Movers
Diamondback Energy rose 3.1% to $156.36 after the company agreed to merge with Endeavor Energy Partners in a deal worth $26 billion.
After the completion of the deal, Diamondback shareholders are expected to hold 60.5% stake in the merged entity, and Endeavor shareholders are expected to hold the remaining stake.
After the merger, Diamondback will be the largest independent and third-largest shale gas producer in the Permian Basin, Texas, following Exxon Mobil and Chevron.
Endeavor Energy Partners is the largest independent shale gas producer in the prolific shale gas field in the Permian Basin, spanning western Texas and eastern New Mexico.
The merged company anticipated pumping 816,000 barrels of oil equivalent per day and saving annual operating costs by $550 million.
Diamondback said the Endeavor deal is expected to close in the fourth quarter.
The merger between Diamondback and Endeavor follows the largest deal in Permian region after Exxon Mobil announced to acquire Pioneer Natural Resource for $60 billion in late 2023.
Europe Movers: Nordex, Novo Nordisk, Tritax, Tod's, UK Commercial Property
Inga Muller
12 Feb, 2024
Frankfurt
European markets edged higher in Monday's trading after a week of listless trading and looked forward to the release of corporate quarterly results and economic updates from the Euro Area and the UK.
The DAX index increased 0.5% to 17,004.46, the CAC-40 index rose 0.6% to 7,690.85, and the FTSE 100 index inched lower by 0.1% to 7,565.23.
The yield on 10-year German bonds edged down to 2.34%; French bonds inched lower to 2.84%; the UK gilts edged lower to 4.04%; and Italian bonds inched higher to 3.90%.
Tod's SpA soared 18% to €42.92 after the LVMH-backed private equity group Catterton announced its plans to acquire a 36% stake in the Italian luxury fashion accessories maker.
Nordex SE increased 7.9% to €10.25 after the German wind turbine maker reported 2023 sales that surpassed its own estimate.
Consolidated revenue increased to €6.5 billion, exceeding its own target range between €5.6 billion and €6.1 billion.
Novo Nordisk A/S increased 0.3% to DKK 834.60 after the controlling shareholder in the company said it plans to invest up to $7 billion by 2030.
Tritax Big Box PLC decreased 2.5% to 156.0 pence after the UK-based real estate investment trust agreed to acquire UK Commercial Property REIT Ltd.
Tritax will exchange 0.444 of its own share for one share of UKCM.
UK Commercial Property jumped 5.7% to 67.45 pence.
European Stocks and Bonds Traded In a Tight Range Ahead of a Busy Week of Earnings and Economic Data
Bridgette Randall
12 Feb, 2024
Frankfurt
European markets advanced in Monday's trading and attempted to extend gains from the previous week.
Market indexes in London, Paris, and Frankfurt gained quiet trading, and investors prepared for a busy week of corporate results and earnings releases.
Financial markets in Japan were closed to celebrate a public holiday and Greater China, South Korea, Malaysia, and Singapore were closed for the Lunar New Year.
Investors are looking ahead to the release of GDP estimates in the Euro Area and the UK and employment, retail sales, and inflation data in the UK.
European markets struggled in the previous week's trading, and investors lowered their rate-cut expectations, but worries about domestic retail sales and export growth overshadowed market sentiment.
Last week, economic data from the Federal Statistics Office in Germany showed factory orders declined 1.5% in 2023 from a year ago and exports fell 1.4% from a year ago amid weak global demand.
Germany, the largest economy in the Euro Area, contracted 0.3% in 2023, and the economic weakness is likely to persist in the first and second quarters of 2024.
Moreover, the German economy is likely to enter a technical recession as the high cost of living and elevated interest rates are negatively impacting consumer demand and small and medium-sized businesses, the backbone of the German economy.
Despite the market jitters of the last three weeks, benchmark indexes are trading near record highs, and corporate earnings are ahead of market expectations.
Europe Indexes and Yields
The DAX index increased 0.5% to 17,004.46, the CAC-40 index rose 0.6% to 7,690.85, and the FTSE 100 index inched lower by 0.1% to 7,565.23.
The yield on 10-year German bonds edged down to 2.34%; French bonds inched lower to 2.84%; the UK gilts edged lower to 4.04%; and Italian bonds inched higher to 3.90%.
The euro edged lower to $1.077, the British pound inched higher to $1.262, and the U.S. dollar gained to 87.50 Swiss cents.
Brent crude decreased $0.79 to $81.38 a barrel, and the Dutch TTF natural gas decreased by €0.84 to €28.28 per MWh.
Europe Stock Movers
Tod's SpA soared 18% to €42.92 after the LVMH-backed private equity group Catterton announced its plans to acquire a 36% stake in the Italian luxury fashion accessories maker.
Nordex SE increased 7.9% to €10.25 after the German wind turbine maker reported 2023 sales that surpassed its own estimate.
Consolidated revenue increased to €6.5 billion, exceeding its own target range between €5.6 billion and €6.1 billion.
Novo Nordisk A/S increased 0.3% to DKK 834.60 after the controlling shareholder in the company said it plans to invest up to $7 billion by 2030.
Tritax Big Box PLC decreased 2.5% to 156.0 pence after the UK-based real estate investment trust agreed to acquire UK Commercial Property REIT Ltd.
Tritax will exchange 0.444 of its own share for one share of UKCM.
Exports to Lift Q3 GDP Growth In Japan, India Stocks Struggle
Arjun Pandit
12 Feb, 2024
Mumbai
Across Asia, markets in mainland China, Hong Kong, Taiwan, South Korea, Malaysia, and Singapore are close for the celebration of Lunar New Year, and in Japan, it is National Foundation Day.
In Friday's trading, market indexes in New York advanced as investors looked beyond interest rate uncertainty and shifted their focus to resilient consumer spending and a healthy labor market.
Surging Exports to Lift Japan's GDP Growth
Japan's economy is likely to show an expansion in rising exports of vehicles and electronic goods, according to the Tokyo-based Japan Center for Economic Research.
The independent research company estimated 0.8% growth in Japan's economy in December from the previous month, despite the persistent weakness in domestic consumption.
The center also estimated the GDP expanded by 2.6% in the December quarter from the previous quarter on a solid performance of exports.
The government is set to release its preliminary estimate on February 15.
India-based GMR Leads Manila Airport Project Bidding
India-based GMR is viewed as a front-runner for a $3.0 billion project to upgrade Manila's Ninoy Aquino International Airport, which currently handles 48 million passengers a year.
The government is set to announce the winner of the project on February 15, and GMR's bid is considered a top contender for the project, beating three other local consortiums of bidders, according to sources in transportation ministry of Philippines.
Philippines has short listed three out of the four qualified bids, and the winner of the project is scheduled to be announced on February.
If GMR wins the bid, this will be the third airport project in the Philippines, after winning the projects to develop and operate Cebu International Airport in 2014 and Clark International Airport in 2019.
France-based Airports de Paris, the operator of three large airports in France, is looking to acquire a 49% stake in GMR.
Market indexes in Mumbai struggled to advance in Monday's trading despite optimism about upcoming earnings releases and positive international market sentiment.
The Sensex and the Nifty indexes advanced, and investors are looking ahead to a busy week of earnings and economic data.
On the earnings front, Mahindra & Mahindra, IRCTC, Coal India, SAIL, and Bharat Forge are some of the leading companies scheduled to release their quarterly results this week.
Among economic releases, market participants are also looking forward to the release of the international trade balance, industrial output, and overall inflation.
The Sensex index decreased 122.22 points to 71,473.27, and the Nifty index fell 14.05 points to 21,768.45.
On the Mumbai stock exchange, 229 stocks traded at their 52-week highs and 21 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.08%, and the Indian rupee strengthened to ₹82.96 against the U.S. dollar.
Navin Fluorine International gained 0.7% to ₹3,049.35 after the Life Insurance Company, through its various funds, increased its stake in the company to 7.07% from 5.03%.
ONGC declined 2.3% to ₹261.40 after the energy explorer reported a decline in earnings in its latest quarter.
Net profit in the December quarter dropped 10% to ₹10,356 crore from ₹11,489 crore a year ago.
India Movers: Bandhan Bank, Easy Trip Planner, Navin Fluorine, Orient Press, IRCTC, Railtel
Arun Goswami
12 Feb, 2024
Mumbai
Stocks in Mumbai looked down in Monday's trading, and investors looked forward to a fresh batch of earnings and economic updates.
The Sensex index decreased 122.22 points to 71,473.27, and the Nifty index fell 14.05 points to 21,768.45.
On the Mumbai stock exchange, 229 stocks traded at their 52-week highs and 21 stocks traded at their 52-week lows.
Railtel Corporation of India advanced 0.2% to ₹394.10 after the company received a ₹18.2 crore order from the defense ministry.
Navin Fluorine International gained 0.7% to ₹3,049.35 after the Life Insurance Company, through its various funds, increased its stake in the company to 7.07% from 5.03%.
Easy Trip Planners increased 3.5% to ₹52.95 after the company's board lent its support for building a luxury hotel at a site near Ram Mandir in Ayodhya, Uttar Pradesh, through a ₹100 crore investment in Jeewani Hospitality Private Limited.
Indian Railway Catering and Tourism Corporation advanced 0.2% to ₹941.40 ahead of the company's quarterly results this week, and the company prepared to launch its online payment app.
Orient Press soared 14% to ₹124.95 after the company announced its plan to venture into the candle manufacturing business.
ONGC declined 2.3% to ₹261.40 after the energy explorer reported a decline in earnings in its latest quarter.
Net profit in the December quarter dropped 10% to ₹10,356 crore from ₹11,489 crore a year ago.
Apex Frozen Foods dropped 13.6% to ₹224.95 after the company reported a decline in profit in its latest quarterly results.
Bandhan Bank declined 5% to ₹205.0 after the financial services provider said net profit in the December quarter more than doubled from a year ago to ₹733 crore.