Market Update
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billion cubic feet of natural gas, slightly less than expected but significantly lower than the 217 billion cubic feet withdrawn in the same week a year ago.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.
S&P 500 and Nasdaq Composite Rest Near Record Highs
Barry Adams
08 Feb, 2024
New York City
Stock market indexes rested 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.
U.S. indexes and yields
The S&P 500 index decreased 0.2% to 4,945.02, and the Nasdaq Composite fell 0.2% to 15,725.56.
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%.
WTI crude oil increased $0.93 to $74.79 a barrel, and natural gas prices were nearly unchanged at $1.98 a thermal unit.
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.
Europe Movers: Adyen, ArcelorMittal, BAT, Credit Agricole, Compass, Ipsen, Maersk, Unibail-Rodamco, Unilever
Inga Muller
08 Feb, 2024
Frankfurt
European stock market indexes advanced, bond yields edged lower, and the euro and the pound retained a downward bias against the U.S. dollar.
The DAX index increased 0.2% to 16,956.58, the CAC-40 index rose 0.7% to 7,662.40, and the FTSE 100 index inched higher by 0.3% to 7,649.20.
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%.
ArcelorMittal rose 2.6% to €25.86 despite the France-based global steel company reporting a net loss of $2.9 billion in the December quarter.
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.
Compass Group jumped 3.3% to 2,215.20 pence after the catering company reported fiscal first quarter profit increased by 11.7% and reiterated its full-year 2024 outlook.
Credit Agricole declined 5.6% to €12.29, despite the French lender reporting strong fourth-quarter earnings.
Unilever plc increased 2.9% to 4,014.0 pence after the consumer products company announced a €1.5 billion stock buyback plan.
Ipsen decreased 4.5% to €102.30 after the bio-pharmaceutical company reported a nearly flat profit of €647.2 million in fiscal 2023.
Unibail-Rodamco-Westfield increased 5.4% to €70.54 after the commercial real estate company forecasted a profit in fiscal 2024.
Fiscal year 2023 revenue decreased 0.6% to €2.21 billion from €2.22 billion, net income swung to a loss of €1.6 billion from €178 million, and adjusted recurring earnings per share increased to €9.62 from €9.31 a year ago, respectively.
The company estimated 2024 average recurring earnings per share between €9.65 and €9.80, citing strong underlying performance.
The company proposed a cash distribution of €2.50 per share, to be approved by the board of directors on April 30 and paid on May 16.
European Markets Hovered Near Recent Highs with Earnings In Focus
Bridgette Randall
08 Feb, 2024
Frankfurt
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 0.2% to 16,956.58, the CAC-40 index rose 0.7% to 7,662.40, and the FTSE 100 index inched higher by 0.3% to 7,649.20.
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 $0.30 to $79.51 a barrel, and the Dutch TTF natural gas decreased by €0.04 to €28.15 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.
China Deflation Risks Rise, India Holds Rates Steady
Arjun Pandit
08 Feb, 2024
Mumbai
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.
India Movers: Adani Ports, Ashoka Buildcon, PetroNet, Power Grid, SJVN, NTPC, Zomato
Arun Goswami
08 Feb, 2024
Mumbai
Stocks in Mumbai advanced, and bond yields held firm ahead of the interest rate decisions.
The Reserve Bank of India is expected to hold rates steady, and investors are hoping that the central bank may signal a possible rate cut as early as in the second half of this year.
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.
Adani Ports and SEZ declined 0.3% to ₹1,259.15, 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 1.9% to ₹143.05 after the delivery service provider confirmed the closing of its businesses in the Czech Republic and Vietnam.
PetroNet LNG added 0.4% to ₹283.95 after the company completed a long-term purchase agreement of 7.5 MMTPA liquified natural gas with Qatar Energy.
Ashoka Buildcon fell 5.8% to ₹181.30 after the company won a project from the National Highway Authority of India in Bihar.
SJVN rose 4.7% to ₹153.80 after the company won a project to set up a 200 MW solar power plant worth 1,100 crore from Gujarat Urja Vikas Nigam.
NTPC advanced 0.5% to ₹332.45 after the company signed an agreement with ONGC to set up offshore wind energy projects.
Separately, the company said it plans to raise as much as $750 million through the sale of debt from foreign investors.
Power Grid rose 5.2% to ₹281.75 after the company released its latest quarterly results.
Total revenue in the December quarter increased to ₹11,819.70 crore from ₹11,530.22 in the quarter a year ago.
Consolidate net profit in the December quarter rose 10.5% to ₹4,028.50 crore from ₹3,645.29 crore, and diluted earnings per share rose to ₹4.33 from ₹3.92 a year ago.
Company also announced its second interim dividend of ₹4.50 per share to be paid on March 5.
U.S. International Trade Gap Drops to a 3-yer Low
Brian Turner
07 Feb, 2024
New York City
The U.S. international trade deficit in goods and services dropped to the lowest level in three years after energy import costs fell and exports edged higher on global demand for capital goods and vehicles.
Exports in 2023 rose 1.2% to $3.05 trillion, and imports decreased 3.6% to $3.8 trillion, the U.S. Bureau of Economic Analysis reported Wednesday.
The trade deficit in 2023 dropped to a three-year low of $773.4 billion, a decline of 19% from the previous year.
The 2023 decrease in the goods and services deficit reflected a decrease in the goods deficit of $121.3 billion, or 10.3%, to $1,061.7 billion and an increase in the services surplus of $56.4 billion, or 24.3%, to $288.2 billion.
The deficit with China decreased from $102.9 billion to $279.4 billion in 2023 as more Chinese companies relocated to Vietnam and Mexico.
However, the deficit with Mexico increased by $21.9 billion to $152.4 billion, and the deficit with Vietnam rose to $104.6 billion.
SP 500 Nears 5000 Mark After Broad Rally Lifts Stocks
Barry Adams
07 Feb, 2024
New York City
Market indexes rebounded in Wednesday's trading, and investors reviewed another batch of corporate earnings.
The S&P 500 index and the Nasdaq Composite edged higher following lackluster trading in the previous session.
The S&P 500 index approached the 5,000 mark, a record high, as investors increased their bet on the resilient economy and overlooked ongoing interest rate uncertainty.
Investors have bid up stocks, and market indexes have extended their rally to the fourth month in a row following a string of positive earnings and the expectations of interest rate cuts.
However, those expectations were dented after Fed Chairman Jerome Powell confirmed that the rate cut in March is not likely, and stronger-than-estimated job gains in March also suggested that the U.S. economy is resilient even after eleven interest rate increases over the last two years.
Alibaba Group, Uber, Chipotle Mexican Grill, Ford, Pandora, and Yum Brands were in focus after the release of financial results.
New York Community Bank soared 10.6% to $4.65 and traded volatile after Moody's Investors Service lowered the regional bank's debt rating two notches to junk level.
U.S. indexes and yields
The S&P 500 index increased 0.7% to 4,988.36, and the Nasdaq Composite added 0.7% to 15,724.99.
The yield on 2-year Treasury notes decreased to 4.42%, 10-year Treasury notes rose to 4.13%, and 30-year Treasury bonds edged up to 4.33%.
WTI crude oil increased $0.63 to $73.95 a barrel, and natural gas prices increased 0.1 cent to $2.01 a thermal unit.
Gold decreased by $3.22 to $2,032.55 an ounce and extended the previous week's gains after the U.S. dollar rebounded in international trading.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.09.
U.S. Stock Movers
Alibaba Group decreased 0.4% to $77.90 after the China-based e-commerce platform operator reported sharply lower quarterly earnings.
Revenue in the December quarter slowed to 5% to 260.35 billion yuan, or $36.67 billion, and net income plunged 77% to 10.7 billion yuan, or $1.5 billion, from a year ago, respectively.
The e-commerce giant also expanded its stock repurchase program by $25 billion to $35.3 billion through March 2027.
Chipotle Mexican Grill jumped 2.5% to $2,550.0 after the fast food restaurant operator reported sharply higher quarterly earnings following a surge in store traffic.
Net sales in the quarter increased 15.4% to $2.52 billion, net income rose to $282.1 million from $223.7 million, and diluted earnings per share advanced to $10.21 from $8.02 a year ago.
The restaurant chain operator said foot traffic increased 7.4% and comparable same-store sales advanced 8.4% from a year ago.
For the full year 2024, the company estimated a same-store sales increase in the "mid-single-digit" range and plans to open between 285 and 315 new stores.
U.S. International Trade Gap Drops to a 3-yer Low
The U.S. international trade deficit in goods and services dropped to the lowest level in three years after energy import costs fell and exports edged higher on global demand for capital goods and vehicles.
Exports in 2023 rose 1.2% to $3.05 trillion, and imports decreased 3.6% to $3.8 trillion, the U.S. Bureau of Economic Analysis reported Wednesday.
The trade deficit in 2023 dropped to a three-year low of $773.4 billion, a decline of 19% from the previous year.
The 2023 decrease in the goods and services deficit reflected a decrease in the goods deficit of $121.3 billion, or 10.3%, to $1,061.7 billion and an increase in the services surplus of $56.4 billion, or 24.3%, to $288.2 billion.
The deficit with China decreased from $102.9 billion to $279.4 billion in 2023 as more Chinese companies relocated to Vietnam and Mexico.
However, the deficit with Mexico increased by $21.9 billion to $152.4 billion, and the deficit with Vietnam rose to $104.6 billion.
Mixed Markets In Europe, Bond Yields Retreat
European markets traded sideways as investors lowered hopes of rate cuts and reacted to another batch of corporate financial results.
Benchmark indexes in Frankfurt, London, and Paris struggled to gain traction after bond yields edged lower and the euro and the pound weakened.
Investors also reviewed January vehicle sales and passenger car sales in China, and sales faltered after the ending of government incentives.
German Industrial Activities Shrank In 2023
Closer to home, German industrial production fell 1.6% from the previous month in December, the fourth month of contraction in a row.
Industrial activity declined 1.8% in the fourth quarter and dropped 1.5% in 2023.
French Trade Deficit Shrank In 2023
France's trade deficit widened in December after imports rose at a faster pace than exports, a report from the customs office showed on Wednesday.
The trade deficit in December rose to €6.8 billion from €5.9 billion in November but fell sharply from €14.7 billion in the month a year ago.
For the entire year 2023, the trade deficit shrank to €99.6 billion from €162.6 billion in 2022, after exports advanced 1.5% and imports declined 7.1%.
UK Home Prices Rise Fourth Consecutive Month
UK home prices rose for the fourth month in a row, according to a survey conducted by Lloyds Bank subsidiary Halifax and S&P Global.
The Halifax House Price Index increased 2.5% from a year ago in January, from the upwardly revised 1.8% increase in December.
A typical UK home now costs £291,029, an increase of £3,900 from the last month.
The average house price in London decreased 0.4% from a year ago to £529,528, the highest across all regions in the UK.
“For those looking to buy a first home, the average deposit raised is now £53,414, around 19% of the purchase price. It’s not surprising that almost two-thirds (63%) of new buyers getting a foot on the ladder are now buying in joint names," said Kim Kinnaird, Director of Halifax Mortgages.
"Looking ahead, affordability challenges are likely to remain, and further modest falls should not be ruled out, against a backdrop of broader uncertainty in the economic environment," Kinnard added.
Europe Indexes and Yields
The DAX index decreased 0.7% to 16,913.25, the CAC-40 index fell 0.4% to 7,611.21, and the FTSE 100 index inched lower by 0.7% to 7,628.75.
The yield on 10-year German bonds edged down to 2.28%; French bonds inched lower to 2.79%; the UK gilts edged lower to 3.98%; and Italian bonds inched lower to 3.85%.
The euro edged lower to $1.076, the British pound inched higher to $1.263, and the U.S. dollar gained to 87.15 Swiss cents.
Brent crude increased $0.36 to $78.95 a barrel, and the Dutch TTF natural gas decreased by €0.45 to €28.15 per MWh.
Europe Stock Movers
Vestas Wind Systems soared 5.9% to DKK 199.30 after the Danish manufacturer of wind turbines swung to a full-year pre-tax profit on the back of strong gains in orders.
Pandora declined 1% to DKK 1,019.50, and the fashion jewelry retailer announced a stock repurchase plan.
TotalEnergies SE declined 2.5% to €58.77 after the French energy company reported lower-than-expected adjusted earnings per share.
TeamViewer SE jumped 4.5% to €14.37 after the German software company reported higher-than-expected sales in the fourth quarter.
Earnings Dominate Asia-wide Trading
Asian markets advanced tracking gains in overnight trading in New York as investors reassessed interest rate expectations and reacted to the latest batch of earnings.
In overnight trading, markets in New York edged higher as investors shifted their focus from rate uncertainty to the latest corporate results.
Nikkei Lacked Direction, KDDI Pursues Lawson
Market indexes in Japan edged higher, and those in China advanced for the second day in a row in the hopes that policymakers will provide more support and the sovereign wealth fund will continue to purchase stocks and stabilize markets.
The Nikkei 225 average declined 0.2% to 36,076.22, and market indexes trimmed losses amid positive corporate earnings.
Toyota Motor jumped 3.9% to ¥3,260.0 after the largest automotive company in the world by unit sales reported better-than-expected fiscal third-quarter sales.
The vehicle manufacturer also increased its full-year revenue outlook on the back of the strength in hybrid sales.
GS Yuasa soared 20% to ¥2,541.0 after the maker of lead acid and lithium-ion batteries reported sales in the nine-month ending in December rose 9.8% to ¥411 billion and net income more rose 124% to ¥17.7 billion.
The company forecasted fiscal year sales to increase 8% to ¥560 billion and net income attributable to shareholders to jump 51% to ¥21 billion.
Lawson jumped 13% to ¥10,280.0 after the retailer received a tender offer from KDDI for ¥500 billion or $3.4 billion, and after the deal, Mitsubishi Corp. and KDDI will jointly own the company with an equal stake of 50% each.
KDDI, the telecom company plans to use data from convenience store to promote its banking and insurance and offer Lawson products to customers of its 2,200 'au' mobile phone outlets across Japan.
China Vehicle Sales Plunged in January
Total vehicle sales, including exports, surged 47.9% from the previous year and dropped 22.7% from a year ago to 2.44 million units, according to a report from the China Association of Automobile Manufacturers.
Exports accounted for 18.2%, or 443,000 vehicles, and new energy vehicles soared 78.8% and accounted for 29.9% of total vehicle sales.
China Indexes Rebounded On Stimulus Hopes
Market indexes in Shanghai and Hong Kong advanced for the second day in a row amid optimism that policymakers are working on additional steps to stabilize financial markets.
The Chinese regulators also banned securities lending to brokers for selling short, arresting the market decline in the short term.
Benchmark indexes in the previous session jumped 4% in Hong Kong and 3% in Shanghai after a unit of China's sovereign wealth fund confirmed purchasing index-focused exchange-traded funds.
The CSI index advanced 0.5% to 3,326.57, and the Hang Seng index edged down 0.1% to 16,124.92.
China's stock markets are expected to resume their selling as the government struggles to devise plans to support overleveraged property developers and plunging property prices.
Over the years, Chinese local governments relied on the sale of land to property developers to fund rapid but wasteful infrastructure buildup, which came to a screeching halt during the pandemic-era lockdowns.
Residential buyers also walked away from making additional purchases after several large developers failed to complete housing projects, adding to the price declines.
Travel and entertainment-related stocks were in focus ahead of the start of the Lunar New Year holidays.
Chinese hotpot restaurant chain Haidilao jumped 1% to HK$13.28.
Yum China added 13.8% to HK$330.0 after the fast food company reported rising sales and announced its plan to buy back its shares.
Alibaba Group declined 1.8% to HK$75.0 ahead of the company releasing its quarterly results later in the day.
Longfor, China Resources Land, and China Vanke decreased between 0.3% and 2.5%.
India Indexes Extended Gains Following Steady Fund Flows and Positive Earnings
Stocks in Mumbai opened higher, and investors reacted to the latest batch of earnings.
Benchmark indexes advanced in early trading amid earnings optimism and a steady flow of new funds from domestic and international investors.
Banks, financial services providers, food product makers, and tech services were among the leading gainers.
The Reserve Bank of India is widely anticipated to hold rates steady at the end of its policy meeting on Thursday.
The Sensex index increased 152.47 points to 72,338.57, and the Nifty index gained 52.40 points to 21,981.80.
On the Mumbai stock exchange, 311 stocks traded at their 52-week highs and 16 stocks traded at their 52-week lows.