Market Update
U.S. Movers: Cloudflare, Ingles Markets, PepsiCo, Ralph Lauren
Scott Peters
09 Feb, 2024
New York City
Cloudflare jumped 25.3% to $113.50 after the cyber security online content distribution network company reported quarterly results and estimates that surpassed market expectations.
Total revenue increased 33% to $362.4 million from $274.7 million, net loss shrank to $27.9 million from $45.9 million, and diluted loss per share dropped to 8 cents from 14 cents a year ago.
The company won larger deals from existing and new customers, driving its annual contact value to record highs.
Ingles Markets declined 4.2% to $78.38 after the discount grocery store operator reported a slight decline in quarterly sales and a sharp decline in earnings.
Revenue in the fiscal first quarter ending on December 30 declined 0.8% to $1.48 billion from $1.49 billion in the quarter ending on December 24, 2023; net income dropped to $43.4 million from $69.4 million; and diluted earnings per share fell to $2.28 from $3.65 a year ago.
PepsiCo decreased 1% to $172.20 after the food and beverage maker reported mixed quarterly results and said food and beverage volumes declined in its North American unit.
Net revenue in the fourth quarter declined 0.5% to $27.85 billion from $27.99 billion, net income advanced to $1.3 billion from $518 million, and diluted earnings per share rose to 94 cents from 37 cents a year ago.
Volumes in the fourth quarter in its beverage unit declined 6%, Quaker Foods fell 8%, and Frito-Lay eased 2%.
PepsiCo hiked its quarterly dividend by 10% to $1.265 per share, payable to shareholders of record on March 1 and on April 1.
PepsiCo has paid consecutive quarterly dividends since 1965, and 2023 marked the 51st consecutive annual dividend increase.
In 2024, the company plans to return $8.2 billion to shareholders, comprised of $7.2 billion in dividends and $1.0 billion in stock repurchases.
The beverage and food maker also estimated that organic revenue in 2024 will increase by 4%, with at least an 8% increase in constant currency earnings per share.
Based on the company's assumptions and guidance, core earnings per share in 2024 are estimated to increase by 7% to $8.15 from $7.62 a year ago.
Ralph Lauren increased 1.8% to $175.01 after the fashion apparel and accessories maker reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending in December increased 6% to $1.9 billion from $1.8 billion, net income advanced to $276.6 million from $216.5 million, and diluted earnings per share rose to $4.19 from $3.20 a year ago.
Inventories at the end of the third quarter declined 15% to $1.1 billion, with the planned decline in North America and Europe offsetting the slight increase in Asia to support growth initiatives.
Sales struggled in North America, rebounded in Europe after the lapping of wholesale discounts offered last year, and surged in Asia.
North American sales were flat at $993 million, and comparable store sales at retail outlets increased by 5%, driven by a 6% increase in physical store sales and a 4% rise in online sales.
Revenue in Europe surged 11% to $522 million, driven by 11% in comparable store sales after physical stores rose 11% and online sales advanced 12%.
Revenue in Asia increased 16% to $446 million, driven by a 14% advance in comparable store sales, a 13% rise in physical store sales, and a 25% surge in online sales.
The company reiterated its full-year fiscal 2024 outlook of low-single-digit revenue growth and returned $425 million to shareholders through dividends and stock repurchases in the fiscal year to date.
U.S. Major Averages Extend Weekly Gains
Barry Adams
09 Feb, 2024
New York City
Benchmark indexes on Wall Street rested in Friday's trading after a busy week of earnings.
The S&P 500 index and the Nasdaq Composite gained 0.3% in early trading, and investors looked beyond rate uncertainty and focused on a resilient economy and disinflation.
Market indexes are expected to extend gains for the fifth week in a row after more than half of the companies included in the S&P 500 reported better-than-expected earnings.
The S&P 500 index last closed above the 4,000 mark on April 1, 2021, and it took another three years to add the next 1,000 points.
For the week, the WS&P 500 index is up 0.8%, and the Nasdaq Composite is trading higher by 1.1%.
Tech stocks are expected to lead the market indexes higher in Friday's trading.
U.S. indexes and yields
The S&P 500 index decreased 0.3% to 5,034.12, and the Nasdaq Composite rose 0.4% to 15,864.48.
The yield on 2-year Treasury notes increased to 4.48%, 10-year Treasury notes rose to 4.17%, and 30-year Treasury bonds edged up to 4.37%.
Natural gas prices dropped to a 3-year low after the latest weekly report from the Energy Information Administration indicated smaller-than-expected inventory withdrawals last week.
WTI crude oil decreased $0.19 to $76.01 a barrel, and natural gas prices declined 6 cents to $1.85 a thermal unit, a low last seen in September 2020.
Gold decreased by $6.58 to $2,026.81 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 104.19.
U.S. Stock Movers
Cloudflare jumped 25.3% to $113.50 after the cyber security online content distribution network company reported quarterly results and estimates that surpassed market expectations.
The company won larger deals from existing and new customers, driving its annual contact value to record highs.
PepsiCo decreased 1% to $172.20 after the food and beverage maker reported mixed quarterly results and said food and beverage volumes declined in its North American unit.
Volumes in its beverage unit declined 6%, Quaker Foods fell 8%, and Frito-Lay eased 2%.
Europe Movers: Bellway, Carl Zeiss, Ceconomy, Hermes, LOreal, Orange, Tesco, Ubisoft
Inga Muller
09 Feb, 2024
Frankfurt
European markets extended weekly gains in quiet trading on Friday after a busy week of earnings results.
The DAX index increased 0.05% to 16,973.47, the CAC-40 index fell 0.2% to 7,653.92, and the FTSE 100 index inched higher by 0.1% to 7,605.52.
The yield on 10-year German bonds edged up to 2.35%; French bonds inched higher to 2.86%; the UK gilts edged higher to 4.05%; and Italian bonds inched higher to 3.93%.
Tesco PLC rose 1% to 283.30 pence after the UK-based grocery retailer said it agreed to sell its banking and financial services operation to Barclays.
Hermes SCA jumped 4.4% to €2,166.50 after the luxury fashion accessories retailer reported fourth-quarter sales surged 17.5% and announced plans to raise prices.
L'Oreal decreased 5.7% to €427.05 after the French personal care product maker reported lower-than-expected fourth-quarter sales.
Orange SA declined 0.1% to €10.58 after the French wireless telecom carrier swung to a pre-tax loss of 2.2 million in 2023 from a profit of 81.6 million a year ago.
Bellway plc edged up 0.1% to 2,812.0 pence after the UK-based home builder reported weak revenue in the first half, reflecting lower home prices and fewer completions.
Total housing revenue in the period declined to £1.25 billion from £1,804.9 million a year ago.
Total housing completions fell to 4,092 homes from 5,695 at an average selling price of £309,300 compared to £316,929.
At the end of January, the company's order backlog of homes was 3,970 compared to 5,108, with a value of £1,012.5 million compared to £1,386.8 million a year ago, respectively.
The home builder estimated home completions of around 7,500 homes at the end of the financial year in July, lower than 10,945 homes a year ago.
"Affordability steadily improved throughout the period, driven by wage increases, the easing of consumer price inflation and a gradual reduction in mortgage interest rates," the company said in a statement to investors.
Ubisoft Entertainment soared 18% to €23.53 after the French video game publisher reported fiscal third quarter sales ahead of its own target.
Carl Zeiss Meditec jumped 5.4% to €111.65, despite the German company reporting a decline in pre-tax operating earnings in the first quarter.
Revenue in the fiscal first quarter increased 1% to €475.0 million from €470.3 million a year ago.
The order backlog normalized to around €315 million.
Earnings before interest and taxes declined to around €43.5 million from €60.3 million, and the EBIT margin eased to 9.2% from 12.8% a year ago.
Ceconomy declined 2.4% to €2.06 after the German electronics retailer reported that fiscal first quarter sales slightly declined to €7 billion.
European Markets Rest as Investors Review Earnings, Bond Yields Rebound to 2-month High
Bridgette Randall
09 Feb, 2024
Frankfurt
European markets traded in a tight range after a busy week of earnings and economic updates.
Benchmark indexes in Frankfurt, Paris, and London edged higher in Friday's trading, and bond yields hovered near a 2-month high after investors unwound expectations of an imminent rate cut in the U.S. and the Euro Area.
Crude oil traded volatile amid elevated tensions in the Middle East after a week ago the US and UK struck down several targets controlled by groups allied with Iran.
On the earnings front, L'Oreal, Hermes, Orange, Tesco, and Carl Zeiss Meditec were in focus after the companies released their earnings.
German Inflation Confirmed at a 30-month Low
Germany's consumer price inflation in January was confirmed at 2.9%, the Federal Statistics Office or Destatis, reported Friday.
Overall inflation in January eased from 3.7% in December, and matched the initial estimate released on January 31.
Inflation declined to the lowest level since June 2021, when prices rose 2.4%.
Europe Indexes and Yields
The DAX index increased 0.05% to 16,973.47, the CAC-40 index fell 0.2% to 7,653.92, and the FTSE 100 index inched higher by 0.1% to 7,605.52.
The yield on 10-year German bonds edged up to 2.35%; French bonds inched higher to 2.86%; the UK gilts edged higher to 4.05%; and Italian bonds inched higher to 3.93%.
The euro edged lower to $1.076, the British pound inched higher to $1.260, and the U.S. dollar gained to 87.55 Swiss cents.
Brent crude decreased $0.10 to $81.52 a barrel, and the Dutch TTF natural gas decreased by €0.50 to €27.52 per MWh.
Europe Stock Movers
Tesco PLC rose 1% to 283.30 pence after the UK-based grocery retailer said it agreed to sell its banking and financial services operation to Barclays.
Hermes SCA jumped 4.4% to €2,166.50 after the luxury fashion accessories retailer reported fourth-quarter sales surged 17.5% and announced plans to raise prices.
L'Oreal decreased 5.7% to €427.05 after the French personal care product maker reported lower-than-expected fourth-quarter sales.
Orange SA declined 0.1% to €10.58 after the French wireless telecom carrier swung to a pre-tax loss of 2.2 million in 2023 from a profit of 81.6 million a year ago.
Nikkei at New 34-year High, Hong Kong Stocks Extend Losses Ahead of Lunar New Year Holidays
Arjun Pandit
09 Feb, 2024
Mumbai
In Asia, market indexes in Japan advanced 1%, and the benchmark indexes surpassed 37,000, a new 34-year high, in the hopes that the Bank of Japan is not ready to hike interest rates.
The Bank of Japan Deputy Governor Shinchi Uchida clarified that the central bank is not ready to increase rates aggressively even when the monetary stance is revised and the rate hike campaign begins.
The Nikkei 225 index gained 0.2% to 36,951.38 and cross 37,000 in intra-day trading for the first time since 1990.
The Nikkei index advanced 2.5% this week and extend its gain for the year so far to 11%.
SoftBank soared 9% to ¥8,016.0 after the company's US-listed British chipmaker Arm Holdings reported revenue in its latest quarter that surpassed the company's expectations.
SoftBank owns about 90% of Arm Holdings.
Tech stocks in Tokyo trading advanced following the surge in SoftBank, and Renesas Electronics, Screen Holdings, and Keyence jumped between 0.5% and 5.5%.
Nissan Motor plunged 11.3% to ¥554.40 after the Japanese automaker highlighted its business difficulties in China and lowered its annual unit sales estimate.
Nissan retained its fiscal year operating income to 620 billion yen, and a more profitable product mix is expected to offset its decline in annual vehicle sales outlook to 3.55 million from 3.7 million.
The Japanese automaker is facing intense price competition in China, and vehicle sales dropped 26% in the first nine months of the fiscal year, offset by a 19% increase in sales to 247,000 in the final quarter ending in December after the company improved regional focus to improve electric vehicle sales.
Hong Kong Indexes Extend 3-Day Losses Ahead of Lunar New Year Holidays
Markets in mainland China, Taiwan, South Korea, and Indonesia are closed for Lunar New Year holidays.
The Hang Seng index in Hong Kong declined 1% and extended losses for the third day after a short-lived market enthusiasm fizzled following the market reform announcements and intervention by China.
Financial markets will be closed Friday and all next week in mainland China, and markets in Hong Kong will close after mid-day Friday and resume trading on Wednesday, February 14.
Alibaba Group, Baidu, JD.com, Tencent, and Meituan declined between 1% and 2.5% amid weakness in tech stocks ahead of the long weekend.
Longfor Group, China Resources Land, and China Vanke dropped between 2.5% and 7%.
India Indexes Trim Weekly Gains
Stocks in Mumbai traded down, and investors reacted to the latest batch of mixed earnings.
The Sensex and the Nifty indexes turned lower and extended weekly losses a day after the Reserve Bank of India held its key lending rates.
Market sentiment was weak after the central bank cited underlying inflation risks and cautioned that prices could flare up because of the ongoing conflicts in the Middle East impacting ocean freight traffic in the Red Sea Lanes.
Investors also reacted to mixed earnings from LIC, JK Lakshmi, Grasim, SKF India, Apollo Hospitals, Balrampur Chini Mills, and Zomato.
Telecom stocks were in focus after the Union Cabinet approved the auction of wireless spectrum amounting to a cumulative reserve price of ₹96,317 crore.
The Sensex index decreased 108.11 points to 71,317.57, and the Nifty index fell 63.40 points to 21,655.55.
On the Mumbai stock exchange, 297 stocks traded at their 52-week highs and 28 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 ₹82.96 against the U.S. dollar.
Life Insurance Corp. gained 6.5% to ₹1,112.0 after the company reported its quarterly results.
Net premium income in the December quarter increased 4.6% to ₹1.16 lakh crore, and net profit rose 49.10% to ₹9,444 crore.
Zomato Ltd. added 1.4% to ₹142.0 after the food delivery company reported its latest quarterly results.
Total revenue in the December quarter jumped 69% to ₹3,288 crore, and the company swung to a consolidated net profit of ₹138 crore from a loss of ₹90.98 crore a year ago.
India Movers: JSW Steel, JK Lakshmi, LIC, Lupin, Power Finance, United Breweries, Zomato
Arun Goswami
09 Feb, 2024
Mumbai
Stocks in Mumbai struggled to advance in Friday's trading, and bond yields held firm a day after the Reserve Bank of India held its key lending rates steady.
The Sensex index increased 321.42 points to 72,473.42, and the Nifty index gained 79.15 points to 22,009.85.
On the Mumbai stock exchange, 194 stocks traded at their 52-week highs and 5 stocks traded at their 52-week lows.
Life Insurance Corp. gained 6.5% to ₹1,112.0 after the company reported its quarterly results.
Net premium income in the December quarter increased 4.6% to ₹1.16 lakh crore, and net profit rose 49.10% to ₹9,444 crore.
JSW Steel declined 1.8% to ₹822.0, and the company finalized its 50:50 joint venture with the Japan-based JFE in JSW Electrical Steel Pvt. Ltd.
Zomato Ltd. added 1.4% to ₹142.0 after the food delivery company reported its latest quarterly results.
Total revenue in the December quarter jumped 69% to ₹3,288 crore, and the company swung to a consolidated net profit of ₹138 crore from a loss of ₹90.98 crore a year ago.
JK Lakshmi declined 1.1% to ₹915.0 after the cement maker reported quarterly results.
Consolidated profit in the December quarter increased 93.9% to ₹150.2 crore, and the company declared an interim dividend of ₹21 per share to shareholders on record on February 21.
Power Finance decreased 8.1% to ₹430.40 after the company reported quarterly results and declared an interim dividend.
Revenue in the December quarter rose 20% to ₹23,571.8 crore from ₹19,639 crore, and net income soared 23% to ₹4,727.4 crore from ₹3,860.3 crore a year ago.
The company also announced its second interim dividend of ₹3.50 per share.
Lupin Ltd. increased 1.8% to ₹1,636.35 after the company reported its latest quarterly results.
Revenue from operations in the December quarter increased 20.2% to ₹5,197.4 crore from ₹4,322.2 crore, and net income soared 300% to ₹613.1 crore from ₹153.4 crore a year ago, respectively.
United Breweries increased 2.5% to ₹1,799.95 after the alcoholic beverage company reported its quarterly results.
Revenue in the December quarter increased 12.2% to ₹4,155 crore and net income swung to a profit of ₹85.34 crore compared to a loss of ₹1.97 core in the corresponding period a year ago.
Aster DM Healthcare decreased 1.3% to ₹435.20 after the healthcare company active in India and the Middle East reported its quarterly results.
Consolidated profit in its December quarter rose 28.6% from a year ago to ₹179.2 crore.
Bombay Dyeing and Manufacturing declined 6% to ₹174.45 after the ready-to-use textile company reported quarterly results.
Consolidated revenue in the December quarter declined to ₹386.4 crore from ₹658.2 crore, net income soared to ₹3,053 crore from a loss of ₹100.8 crore, and diluted earnings per share were ₹147.7 compared to a loss of ₹4.88 per share a year ago.
The company booked a profit of ₹3,880 crore ($467 million) from the 20-acre land sale to Japan-based Goisu Realty, a group company of Sumitomo Realty & Development.
The 20-acre property was sold for 79.5 billion yen or $532.2 million at the current exchange rate of 149.38 yen to one U.S. dollar.
U.S. Stocks Lack Direction and Momentum, Natural Gas Drops to a 3-year Low
Barry Adams
08 Feb, 2024
New York City
Stock market indexes flatlined on Wall Street after extending weekly and monthly gains in the previous session.
The S&P 500 index and the Nasdaq Composite flirted with near-record highs as investors focused beyond lingering interest rate uncertainty.
Despite the ongoing debate about the future rate path and levels, the U.S. economy is expanding at a steady clip of more than 2%, and the job market has added 255,000 monthly jobs over the last year.
Moreover, inflation has been falling steadily from a high of 9% to near 3%, keeping consumer spending growth intact, driven in part by wage increases.
With the positive economic backdrop and resilient consumer and labor markets, corporate earnings have been largely ahead of market expectations for the second year in a row.
Moreover, the latest jobless claims indicated persistently tight labor market conditions.
Initial jobless claims declined by 9.000 to 218,000 in the week ending on February 2, the U.S. Department of Labor reported Thursday.
However, continuing claims eased by 23,000 to 1.871 million in the previous week.
U.S. indexes and yields
The S&P 500 index decreased 0.001% to 4,995.06, and the Nasdaq Composite rose 0.3% to 15,804.74.
The yield on 2-year Treasury notes increased to 4.43%, 10-year Treasury notes rose to 4.13%, and 30-year Treasury bonds edged up to 4.35%.
Natural gas prices dropped to a 3-year low after the latest weekly report from the Energy Information Administration indicated smaller-than-expected inventory withdrawals last week.
Utility companies pulled 75 billion cubic feet of natural gas, slightly less than expected but significantly lower than the 217 billion cubic feet withdrawn in the same week a year ago.
Additionally, LNG exports from the Freeport LNG plant near Houston are not likely to be fully operational for months, and milder weather over the next two weeks is also expected to keep demand for natural gas low.
WTI crude oil increased $2.03 to $75.89 a barrel, and natural gas prices declined 4 cents to $1.92 a thermal unit, a low last seen in September 2020.
Gold decreased by $10.93 to $2,023.20 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 104.34.
U.S. Stock Movers
Walt Disney Co. soared 7.9% to $107.0 after the media and entertainment company reported better-than-expected revenue, earnings, and full-year outlook.
The media company announced a $1.5 billion stake in Epic Games, the creator and developer of Fortnite.
Disney confirmed that the company is on track to launch its ESPN streaming service in 2025.
The company also said it is on track to cut $7.5 billion in costs by the end of fiscal 2024.
PayPal Holdings declined 9.5% to $57.35 after the payments services provider estimated weaker-than-estimated earnings in the first quarter and full year.
However, the company reported fourth-quarter results that were ahead of consensus estimates.
Spirit Airlines jumped 4.2% to $7.24 after the deep discount airline reported better-than-expected quarterly results.
Revenue in the fourth quarter declined to $1.32 billion from $1.39 billion, net loss shrank 32% to $183.6 million from $1270.6 million, and diluted loss per share fell to $1.68 from $2.49 a year ago.
Total revenue per passenger flight segment declined 15.3% to $114.84, driven by a 25% decrease in fare revenue to 48.24 and a 6.6% fall in non-ticket revenue to $66.60.
Arm Holdings soared 27.9% to $98.45 after the advanced chip designer reported sharply higher revenue and earnings in its latest quarter.
The UK-based chipmaker reported fiscal third quarter revenue rose 14% to $824 million from $724 million, net income fell 52% to $87 million from $184 million, and diluted earnings per share decreased to 8 cents from 18 cents a year ago.
The company exceeded its fiscal third-quarter revenue estimate of between $720 million and $800 million.
The company estimated fiscal fourth quarter revenue between $850 million and $900 million and lifted its full-year revenue estimate range to between $3.155 billion and $3.205 million from the previous range between $2.96 billion and $3.08 billion.
European Markets Rest Near Record High
European markets advanced, and investors looked overseas in the absence of domestic economic news.
Benchmark indexes in Frankfurt, Paris, and London edged higher despite the U.S. interest rate uncertainty, wean consumer sentiment in the eurozone, and elevated geopolitical tensions.
China's consumer price inflation declined for the fourth month in a row, and producer prices fell for the sixteenth consecutive month, citing persistent deflation risks.
Investors also reviewed the latest batch of earnings, and Maersk, AstraZeneca, BAT, Societe Generale, and Siemens were in focus after reporting their quarterly results.
Europe Indexes and Yields
The DAX index increased 0.3% to 16,963.83, the CAC-40 index rose 0.7% to 7,664.40, and the FTSE 100 index inched lower by 0.5% to 7,594.21.
The yield on 10-year German bonds edged up to 2.29%; French bonds inched higher to 2.80%; the UK gilts edged lower to 3.97%; and Italian bonds inched higher to 3.87%.
The euro edged lower to $1.078, the British pound inched higher to $1.263, and the U.S. dollar gained to 87.30 Swiss cents.
Brent crude increased $2.01 to $81.22 a barrel, and the Dutch TTF natural gas decreased by €0.44 to €27.45 per MWh.
Europe Stock Movers
ArcelorMittal rose 2.6% to €25.86 despite the France-based global steel company reporting a net loss of $2.9 billion.
Adyen NV soared 19.1% to €1,413.80 after the Dutch payment service provider reported a sharp jump in its net profit in the second half of fiscal 2023.
AP Moeller-Maersk Class B dropped 13.1% to DKK 11,080.0 after the ocean freight shipping company reported a net loss of $442 million in the fourth quarter of 2023.
AstraZeneca declined 3.2% to 10,152.0 pence after the British drug company reported a lower-than-expected profit in its latest period.
BAT soared 7.6% to 2,492.50 pence after the company said it plans to lower its stake in India-based hotel-to-tobacco conglomerate ITC.
In Asia China and India Face Two Different Price Pressures
In Asia, the benchmark indexes in Japan advanced, tracking gains in New York, but indexes struggled in Shanghai and Hong Kong due to the protracted downturn in the property market and persistent selling by foreign investors.
In overnight trading, market indexes on Wall Street advanced after companies reported better-than-expected earnings and investors looked beyond rate uncertainty.
Elsewhere in the region, market indexes in India, Sydney, and Seoul traded higher.
The ASX 200 index increased 0.3% to 7,639.20, the KOSPI index edged up 0.2% to 7,639.20, and the Sensex index inched down 0.8% to 71,557.82 after erasing early morning gains.
Japan Stocks Trade Higher, SoftBank Soars 10%
Market indexes in Tokyo extended recent gains and approached multi-decade highs, and investors reacted to the latest batch of earnings and the gains in the U.S. markets.
The Nikkei 225 increased 2.2% to 36,904.10, and the benchmark index advanced following a string of positive earnings and stable interest rate expectations, at least for the next two months.
SoftBank Group soared 10.9% to ¥7,332.0 after the company's U.S.-listed ARM Holdings soared nearly 20% in after-hours trading in New York following the earnings release.
Other leading semiconductor industry companies advanced as well.
Tokyo Electron, Advantest, Screen Holdings, and Renesas Electronics jumped between 1% and 5%.
Vehicle makers also participated in the market rally, and Toyota Motor, Honda Motor, Nissan, and Subaru advanced between 1% and 3%.
Japan's Current Account Stays in Surplus for the Eleventh Consecutive Month
Japan's current account surplus sharply rebounded to 744.5 billion yen from 0.095 billion yen a year ago, the Ministry of Finance reported Thursday.
The current account was in surplus for the eleventh month in a row in December after merchandise trade swung to a surplus of 115.5 billion yen from a deficit of 1,238.9 billion.
China's January Inflation Data Prompts Deflation Worries
China stocks were under pressure, and market indexes trimmed weekly gains after consumer and producer price inflation declined in January.
The CSI 300 index added 0.3% to 3,354.95, and the Hang Seng index dropped 1% to 15,925.10.
Consumer price inflation declined at an annual rate of 0.8% in January, a fourth monthly decline in a row and the largest fall since September 2009.
Producer price inflation fell 2.5% in the month, a 16th monthly decline in a row.
The National Bureau of Statistics reported both inflation updates in a separate report.
Consumer prices fell partly because of a higher base after the start of the spring festival in January, driving prices of food and energy higher.
In stock trading, tech stocks were under pressure after Alibaba Group reported a 70% decline in quarterly earnings and revenue rose less than expected (5.1%).
Alibaba Group fell 6.5% to HK$70.05, and the company expanded its stock repurchase plan by $25 billion to $35.3 billion.
Baidu, JD.com, Tencent, and Meituan fell between 0.5% and 2.0%.
Property developers continue to slide amid no signs of government measures to revive the moribund market and support the overleveraged property companies.
Longfor, China Resources Land, Sun Hung Kai, and China Vanke traded mixed.
India Stocks Sell Off On Inflation Forecast
Stocks in Mumbai declined, and bond yields held firm after the central bank held its key lending rate steady.
The Nifty and the Sensex indexes edged lower, and the Reserve Bank of India held the repo rate at 6.5%, as widely expected.
Market sentiment turned negative after the central bank estimated a 5.4% inflation rate for the financial year 2024 ending in March and estimated inflation to rebound to 5.0% in the final quarter.
The Sensex index decreased 0.8% to 71,574.55, and the Nifty index fell 0.7% to 21,756.0.
On the Mumbai stock exchange, 458 stocks traded at their 52-week highs and 13 stocks traded at their 52-week lows.
Adani Ports and SEZ declined 1.3% to ₹1,256.25, and the company won a bid to operate a container terminal at Tanzania's main port, Dar Es Salaam.
Adani will operate the larger of the two terminals, with a capacity of 660,000 twenty-foot equivalent units of containers.
Zomato gained 0.6% to ₹140.85 after the delivery service provider confirmed the closing of its businesses in the Czech Republic and Vietnam.
U.S. Movers: Arm Holdings, PayPal, Spirit Airlines, Walt Disney
Scott Peters
08 Feb, 2024
New York City
Walt Disney Co. soared 7.9% to $107.0 after the media and entertainment company reported better-than-expected revenue, earnings, and full-year outlook.
The media company announced a $1.5 billion stake in Epic Games, the creator and developer of Fortnite.
Disney confirmed that the company is on track to launch its ESPN streaming service in 2025.
The company also said it is on track to cut $7.5 billion in costs by the end of fiscal 2024.
PayPal Holdings declined 9.5% to $57.35 after the payments services provider estimated weaker-than-estimated earnings in the first quarter and full year.
However, the company reported fourth-quarter results that were ahead of consensus estimates.
Revenue in the fourth quarter increased 9% to $8.0 billion from $7.4 billion, net income soared 52% to $1.4 billion from $521 million, and diluted earnings per share rose 61% to $1.29 from 81 cents a year ago.
The company estimated revenue in the first quarter of 2024 to increase between 6.5% and 7%, and diluted earnings per share are expected to increase "mid-single-digit" from 70 cents a year ago.
For the full-year 2024, earnings per share are expected to be between $3.60 and $3.80, lower than $3.84 in 2023.
Spirit Airlines jumped 4.2% to $7.24 after the deep discount airline reported better-than-expected quarterly results.
Revenue in the fourth quarter declined to $1.32 billion from $1.39 billion, net loss shrank 32% to $183.6 million from $1270.6 million, and diluted loss per share fell to $1.68 from $2.49 a year ago.
Total revenue per passenger flight segment declined 15.3% to $114.84, driven by a 25% decrease in fare revenue to 48.24 and a 6.6% fall in non-ticket revenue to $66.60.
Arm Holdings soared 27.9% to $98.45 after the advanced chip designer reported sharply higher revenue and earnings in its latest quarter.
The UK-based chipmaker reported fiscal third quarter revenue rose 14% to $824 million from $724 million, net income fell 52% to $87 million from $184 million, and diluted earnings per share decreased to 8 cents from 18 cents a year ago.
The company exceeded its fiscal third-quarter revenue estimate of between $720 million and $800 million.
The company estimated fiscal fourth quarter revenue between $850 million and $900 million and lifted its full-year revenue estimate range to between $3.155 billion and $3.205 million from the previous range between $2.96 billion and $3.08 billion.