Market Update
India Movers: Adani Power, Bharti Airtel, IEX, IndusInd Bank, One 97 Communications, Shree Cements, Zydus
Arun Goswami
05 Feb, 2024
Mumbai
Stocks in Mumbai looked up, and market indexes advanced ahead of the Reserve Bank's rate decision on Thursday.
The central bank is widely expected to hold rates for the sixth time in a row and shift its stance to neutral to lower inflation to its target range of between 2% and 4%.
IndusInd Bank decreased 0.3% to ₹1,530.70, and the Reserve Bank of India approved HDFC Bank Group acquiring as much as a 9.5% stake in the bank.
HDFC Bank decreased 0.3% to ₹1,440.55.
Bharti Airtel eased 3.3% to ₹1,113.60 after the wireless telecom carrier reported its latest quarterly results.
Consolidated revenue in the December quarter increased 5.8% to ₹37,988.5 crore, and net income soared 54% to ₹2,442 crore from a year ago, respectively.
One 97 Communications dropped 5.6% to ₹413.90, and the company denied that neither the company nor its banking subsidiary is under investigation for violating foreign exchange rules.
Shree Cement declined 5.3% to ₹26,950.0 after the company denied a report that the Income Tax Department is seeking ₹4,000 crore in payment.
Indian Energy Exchange increased 0.4% to ₹146.60 after the company reported an increase of 26% from a year ago in energy units traded in January.
The exchange traded 10.89 billion units, record monthly trading on the exchange.
Zydus Life Sciences decreased 0.5% to ₹757.50, and the company's board of directors is scheduled to meet on December 9 to consider share buyback plans.
Adani Power rose 0.7% to ₹550.0 after CRISIL Ratings upgraded the company's debt to "AA-" from "A," citing "strong improvement" in the company's financial and business risk profile.
Investors Reassess Rate Path Outlook, U.S. and Global Markets Trade Sideways
Barry Adams
05 Feb, 2024
New York City
Market indexes remained depressed in Monday's trading, and Treasury yields spiked on the rate-path worries.
Federal Chair Jerome Powell reiterated the need to keep interest rates higher until policymakers are more confident about the sustainable downward path of inflation.
"We want to see more evidence that inflation is moving down to 2%" and "our confidence is rising, before we take that important step of cutting interest rates," said Powell during an interview with the CBS 60 Minutes show aired on Sunday.
"It is not likely that this committee will reach that level of confidence in March" to cut the interest rate at the next policy meeting.
However, Powell also stressed that the committee is ready to cut interest rates later in the year without giving a specific timetable, size, or number of rate cuts.
At the end of the last policy meeting in 2023, investors had factored in four to six cuts totaling as much as 1.5%, but that calculation is likely to be proven to be too optimistic.
Powell also clarified that while inflation is likely to slow down to the central bank's target rate of 2%, price levels are not expected to decline.
"We do not expect to see a decline in overall price level; that does not happen in economies except in very negative circumstances," said Powell, indicating that higher prices for automobiles, homes, and other goods and services are here to stay.
All the Fed can expect is that these prices are rising at a slower pace of 2%, not faster.
The U.S. economy added 5 million jobs over the last two years when interest rates were raised 11 times from zero to 5.50%, proving most economists wrong who were forecasting an economic slowdown or a recession.
While inflation has been slowing down over the last nine months, the slowdown is largely because of the decline in energy prices and the easing of supply chain disruptions; neither of these two forces is impacted by the Fed's policy.
Powell's comments added to market anxieties after the non-farm payroll expanded at a faster pace in January and wage gains were ahead of inflation over the last twelve months, stoking fears of a rebound in inflation.
On the earnings front, investors reviewed the latest earnings from McDonald's, and about 400 leading companies are scheduled to release their quarterly results this week.
U.S. Indexes and Yields
The S&P 500 index increased 0.5% to 4,958.27, and the Nasdaq Composite rose 1.1% to 15,462.68.
The yield on 2-year Treasury notes increased to 4.45%. 10-year Treasury notes declined to 4.10%, and 30-year Treasury bonds edged down to 4.29%.
WTI crude oil increased $0.18 to $72.08 a barrel, and natural gas prices decreased 2 cents to $2.05 a thermal unit.
Gold decreased by $15.19 to $2,023.21 an ounce and extended the previous week's gains after the U.S. dollar drifted slightly lower in international trading.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.30.
U.S. Stock Movers
Elanco Animal Health soared 8% to $16.0 after the company agreed to sell its aqua business for $1.3 billion to Merck's animal health division.
Elanco plans to use most of the proceeds to pay down its debt and lower it by 20%.
Catalent jumped 9.9% to $59.90 after the healthcare company agreed to be acquired by Novo Holdings for $63.50 a share in cash.
McDonald's decreased 0.6% to $295.0 after the fast food restaurant chain reported weaker-than-expected quarterly results.
Net sales in the fourth quarter increased 8% to $6.41 billion, net income rose to $2.04 billion from $1.9 billion, and diluted earnings per share advanced to $2.80 from $2.59 a year ago.
Global same-store sales rose 3.4%, driven by a 4.3% increase in U.S. domestic sales, but comparable sales lagged in the Middle East to 0.7%, weighed by the Israel-Hamas conflict.
The company said it plans to spend between $2.5 billion and $2.7 billion in capital expenditure and allocate more than half of its spending to open 2,100 new stores in the U.S. and international markets in 2024.
Week Ahead
This week, world investors are looking ahead to the release of earnings from major U.S.-listed corporations, including Alibaba, ARM Holdings, Caterpillar, Eli Lilly, Ford Motor, PayPal, PepsiCo, and Uber.
In Europe, investors are looking ahead to the release of Germany’s factory orders and the final reading on inflation.
Across the Pacific, China is expected to release its inflation and current account data for the fourth quarter.
In addition, the central banks of India, the Philippines, and Australia are expected to keep rates unrevised.
European Markets Traded Near Recent Highs
European markets trended lower in Monday's trading, and investors reviewed the latest update on the eurozone service sector and German international trade data.
The service sector in the eurozone showed a slight decrease, and the PMI index eased to 48.4 in January from 48.8 in December, according to the data released by S&P Global on Monday.
In other economic news in the region, the service sector in Italy expanded for the sixth month in a row and in Spain for the fifth month in a row in January.
Crude oil traded volatile after the price of the commodity was under pressure following the rise in the dollar and ongoing demand growth worries in China.
German Trade Surplus Expands in December
Germany's exports and imports declined in December, but trade surplus rose for the fourth month in a row, the Federal Statistics Office, or Destatis, reported Monday.
Seasonally adjusted exports declined 4.6% from the previous month to €125.3 billion in December, and imports fell 6.7% to €103.1 billion.
From a year ago, exports fell 4.6% and imports dropped 12.4%, reflecting a weakness in non-EU demand and a sharp fall in energy import prices.
In the year 2023, exports decreased 1.4% to €1.56 trillion and imports plunged 9.7% to €1.35 trillion, resulting in a trade surplus of €209.6 billion.
In December, exports to the EU-member nations fell 5.5% to €67.5 billion and to the non-EU nations decreased 3.5% to €57.8 billion.
The shipments to the U.S. led all other nations and declined by 5.5% in December to €12.7 billion, followed by a decline of 7.9% to €7.5 billion to China and a fall of 4.3% to €7.4 billion to the U.K.
Imports from the People's Republic of China led all incoming goods arrivals and declined 8.5% to €11.6 billion, followed by a 1.9% decline to €8.2 billion from the U.S. and a fall of 10% to €2.6 billion from the U.K.
Europe Indexes and Yields
The DAX index decreased 0.1% to 16,898.04, the CAC-40 index fell 0.1% to 7,583.23, and the FTSE 100 index inched higher by 0.1% to 7,606.92.
The yield on 10-year German bonds edged up to 2.28%; French bonds inched higher to 2.78%; the UK gilts edged lower to 3.98%; and Italian bonds inched lower to 3.84%.
The euro edged lower to $1.075, the British pound inched higher to $1.260, and the U.S. dollar gained to 87.0 Swiss cents.
Brent crude decreased $0.09 to $77.42 a barrel, and the Dutch TTF natural gas decreased by €1.04 to €28.09 per MWh.
Europe Stock Movers
UniCredit SpA soared 10% to €29.36 after the largest Italian bank reported higher-than-expected profit and announced its plan to increase shareholder payout.
CMC Markets PLC soared 15% to 152.84 pence after the online trading platform announced its plan to cut 200 jobs to reduce its overall operating costs.
Vodafone Group fell 0.5% to 68.25 pence, despite the wireless telecom operator reporting higher-than-expected sales in the fiscal third quarter.
Societe Generale declined 0.6% to €22.97 after the French lender announced organization changes at its headquarters that would lead to 900 voluntary departures.
Caution Prevailed In Asia Trading, Yen Extended Recent Losses
Market indexes in Tokyo, China, and India edged higher in volatile trading, but the indexes in Seoul and Sydney fell.
Global market sentiment was cautious in Monday's trading after the U.S. dollar perked up, crude oil prices fell, and tensions in the Middle East stayed elevated.
In addition, rate-cut expectations were also dashed after the U.S. economy added 353,000 jobs in January, surpassing expectations by a wide margin.
Federal Reserve Chairman Powell confirmed in an interview on Sunday that policymakers may wait after the next meeting in March to cut interest rates.
The U.S. dollar index jumped to an 8-week high against the basket of currencies after comments from Powell suggested that rates are likely to stay higher longer than expected.
Crude oil dropped 0.5% before recovering in late afternoon trading across Asia after the U.S. dollar rebounded and China's regulatory announcement fell short of market expectations.
On the economic front, Australia's December exports increased 1.8% to A$47.1 billion, imports rose 4.8% to A$36.2 billion, resulting in a trade surplus of A$10.95 billion, the Australian Bureau of Statistics reported Monday.
Nikkei Extended Gains on Yen Weakness and Positive Earnings
The Nikkei 225 average jumped 0.6% to 36,373.16 and inched closer to the high of the year so far, and the KOSPI index fell 0.6% to 2,598.68.
Export-sensitive stocks advanced after the Japanese yen fell sharply following the strength in the U.S. dollar.
Canon, Panasonic, Seiko Epson, and Fujitsu advanced between 2% and 7%.
Isetan Mitsukoshi soared 6.5% to ¥1,933.50 after the retailer reported better-than-expected financial results, increased its interim dividend, and announced a stock buyback.
China Stocks Rebound In Volatile Trading
Market indexes in China dropped in early trading following comments from Chairman Powell and a lack of specific stimulus from the government.
Stocks in afternoon trading erased morning losses after the China Regulatory Commission pledged to stabilize financial markets and crack down on market speculators in a statement released on Sunday.
But the regulatory agency fell short of announcing concrete steps in the near future.
The CSI 300 index advanced 1.2% to 3,184.64, and the Hang Seng index rebounded 0.3% to 3,184.64.
The Hang Seng index extended its 2024 loss to 9%, the worst-performing index among the leading markets around the world.
Small-cap stock indexes on the mainland China dropped around 5% after the unwinding of structured products linked to small capitalization stocks triggered the sale of underlying securities.
Baidu, Tencent, Alibaba Group, and JD.com traded volatile and fell as low as 2% before rebounding to a 1.0% gain.
Property developers also lacked direction and traded volatile.
Longfor Group, China Overseas Land and Development, Country Garden, and Sun Hung Kai Properties traded between a decline of 3% and a gain of 1.2%.
India Indexes Turned Lower Ahead of Rate Decision
Stocks in Mumbai opened lower amid weak markets in Asia and ahead of rate decisions from the RBI later in the week.
The Reserve Bank of India is expected to hold its key lending rates steady for the sixth time in a row on Thursday.
The central bank is widely anticipated to hold rates, tracking the rate decisions made by the U.S., UK, and Euro Area.
The Sensex index decreased 50.06 points to 72,035.57, and the Nifty index gained 5.90 points to 21,859.70.
The State Bank of India declined 1.1% to ₹642.65 after the largest lender in the country reported a decline in net profit in the latest quarter.
Net profit in the December quarter plunged 35.5% to ₹9,164 crore from ₹14,205 crore a year ago after the bank set aside ₹7,100 crore for its pension liabilities.
Tata Motors gained 6.5% to ₹936.50 after the Jaguar and Land Rover maker reported a surge in its latest quarter profit.
Consolidated profit in the December quarter soared 137.5% to ₹7,025 crore from a year ago.
Wall Street Stocks Under Pressure After Powell Comments
Barry Adams
05 Feb, 2024
New York City
Stocks on Wall Street turned lower as worries about a higher-for-longer rate were reignited.
Federal Reserve Chair Jerome Powell reiterated the need to keep interest rates higher until policymakers are more confident about the sustainable downward path of inflation towards the target rate of 2%.
Powell commented during an interview with the CBS 60 Minutes show that aired on Sunday.
Powell also clarified that while inflation is likely to slow down to the central bank's target rate of 2%, price levels are not expected to decline.
While inflation is on a downward path, the slowdown is largely because of the decline in energy prices and the easing of supply chain disruptions; neither of these two forces is impacted by the Fed's policy.
Powell's comments added to market anxieties after the non-farm payroll expanded at a faster pace in January and wage gains were ahead of inflation over the last twelve months, stoking fears of a rebound in inflation.
On the earnings front, investors reviewed the latest earnings from McDonald's, and about 400 leading companies are scheduled to release their quarterly results this week.
U.S. Indexes and Yields
The S&P 500 index increased 0.5% to 4,958.27, and the Nasdaq Composite rose 1.1% to 15,462.68.
The yield on 2-year Treasury notes increased to 4.45%. 10-year Treasury notes declined to 4.10%, and 30-year Treasury bonds edged down to 4.29%.
WTI crude oil increased $0.19 to $72.09 a barrel, and natural gas prices decreased 1 cent to $2.07 a thermal unit.
Gold decreased by $15.19 to $2,023.21 an ounce and extended the previous week's gains after the U.S. dollar drifted slightly lower in international trading.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.30.
U.S. Stock Movers
Elanco Animal Health soared 8% to $16.0 after the company agreed to sell its aqua business for $1.3 billion to Merck's animal health division.
Elanco plans to use most of the proceeds to pay down its debt and lower it by 20%.
Catalent jumped 9.9% to $59.90 after the healthcare company agreed to be acquired by Novo Holdings for $63.50 a share in cash.
McDonald's decreased 0.6% to $295.0 after the fast food restaurant chain reported weaker-than-expected quarterly results.
Net sales in the fourth quarter increased 8% to $6.41 billion, net income rose to $2.04 billion from $1.9 billion, and diluted earnings per share advanced to $2.80 from $2.59 a year ago.
Global same-store sales rose 3.4%, driven by a 4.3% increase in U.S. domestic sales, but comparable sales lagged in the Middle East to 0.7%, weighed by the Israel-Hamas conflict.
The company said it plans to spend between $2.5 billion and $2.7 billion in capital expenditure and allocate more than half of its spending to open 2,100 new stores in the U.S. and international markets in 2024.
Week Ahead
This week, world investors are looking ahead to the release of earnings from major U.S.-listed corporations, including Alibaba, ARM Holdings, Caterpillar, Eli Lilly, Ford Motor, PayPal, PepsiCo, and Uber.
In Europe, investors are looking ahead to the release of Germany’s factory orders and the final reading on inflation.
Germany's exports and imports declined in December, but trade surplus rose for the fourth month in a row, the Federal Statistics Office, or Destatis, reported Monday.
Seasonally adjusted exports declined 4.6% from the previous month to €125.3 billion in December, and imports fell 6.7% to €103.1 billion.
In December, exports to the EU-member nations fell 5.5% to €67.5 billion and to the non-EU nations decreased 3.5% to €57.8 billion.
The shipments to the U.S. led all other nations and declined by 5.5% in December to €12.7 billion, followed by a decline of 7.9% to €7.5 billion to China and a fall of 4.3% to €7.4 billion to the U.K.
Across the Pacific, China is expected to release its inflation and current account data for the fourth quarter.
In addition, the central banks of India, the Philippines, and Australia are expected to keep rates unrevised.
Europe Movers: CMC Markets, Porvair, Societe Generale, UniCredit, Vodafone
Inga Muller
05 Feb, 2024
Frankfurt
European markets flatlined near recent highs, the service sector in Spain and Italy expanded, and Germany's merchandise trade surplus soared after imports fell at a faster pace than exports in December.
The DAX index decreased 0.1% to 16,902.94, the CAC-40 index fell 0.2% to 7,579.41, and the FTSE 100 index inched higher by 0.1% to 7,624.42.
The yield on 10-year German bonds edged up to 2.28%; French bonds inched higher to 2.78%; the UK gilts edged lower to 3.98%; and Italian bonds inched lower to 3.84%.
UniCredit SpA soared 10% to €29.36, an 8-year high, after the largest Italian bank reported a higher-than-expected profit and announced its plan to increase shareholder payout.
Total revenue in the fiscal year 2023 increased 17.3% to 23.8 billion from 20.3 billion, net profit surged 53.8% to €8.6 billion from €5.6 billion, and earnings per share soared 74% to €4.71.
The company plans to increase its shareholder distribution to at least 90% payout net profit in 2024, with an estimated distribution of €10 billion through dividends and stock repurchases.
The bank confirmed its plan to distribute 100% of its 2023 profit in the form of €5.6 billion in stock repurchases and €3.0 billion in dividends.
Moreover, Unicredit said it completed the €1.4 billion stock repurchase commenced in October by the end of 2023.
CMC Markets plc soared 15% to 152.84 pence after the online trading platform announced its plan to cut 200 jobs to reduce its overall operating costs.
Vodafone Group fell 0.5% to 68.25 pence, despite the wireless telecom operator reporting higher-than-expected sales in the fiscal third quarter.
Societe Generale declined 0.6% to €22.97 after the French lender announced organization changes at its headquarters that would lead to 900 voluntary departures.
Delivery Hero decreased 4.5% to €15.93 despite the German food delivery platform meeting its fiscal year 2023 targets.
Porvair plc increased 1.5% to 669.90 pence after the UK-based filtration company reported higher fiscal year 2023 earnings and the company lifted its dividend.
2023 revenue increased 2% from a year ago to £176.0 million from £172.6 million, an increase of 1% on a constant currency basis.
Profit before tax rose 7% to £20.1 million from £18.7 million, and basic earnings per share advanced 8% to 34.8 pence from 32.1 pence a year ago, respectively.
European Markets Mixed, Faster Decline in Imports Drives German Trade Surplus Higher
Bridgette Randall
05 Feb, 2024
Frankfurt
European markets trended lower in Monday's trading, and investors reviewed the latest update on the eurozone service sector and German international trade data.
The service sector in the eurozone showed a slight decrease, and the PMI index eased to 48.4 in January from 48.8 in December, according to the data released by S&P Global on Monday.
In other economic news in the region, the service sector in Italy expanded for the sixth month in a row and in Spain for the fifth month in a row in January.
Crude oil traded volatile after the price of the commodity was under pressure following the rise in the dollar and ongoing demand growth worries in China.
German Trade Surplus Expands in December
Germany's exports and imports declined in December, but trade surplus rose for the fourth month in a row, the Federal Statistics Office, or Destatis, reported Monday.
Seasonally adjusted exports declined 4.6% from the previous month to €125.3 billion in December, and imports fell 6.7% to €103.1 billion.
From a year ago, exports fell 4.6% and imports dropped 12.4%, reflecting a weakness in non-EU demand and a sharp fall in energy import prices.
In the year 2023, exports decreased 1.4% to €1.56 trillion and imports plunged 9.7% to €1.35 trillion, resulting in a trade surplus of €209.6 billion.
In December, exports to the EU-member nations fell 5.5% to €67.5 billion and to the non-EU nations decreased 3.5% to €57.8 billion.
The shipments to the U.S. led all other nations and declined by 5.5% in December to €12.7 billion, followed by a decline of 7.9% to €7.5 billion to China and a fall of 4.3% to €7.4 billion to the U.K.
Imports from the People's Republic of China led all incoming goods arrivals and declined 8.5% to €11.6 billion, followed by a 1.9% decline to €8.2 billion from the U.S. and a fall of 10% to €2.6 billion from the U.K.
Europe Indexes and Yields
The DAX index decreased 0.1% to 16,902.94, the CAC-40 index fell 0.2% to 7,579.41, and the FTSE 100 index inched higher by 0.1% to 7,624.42.
The yield on 10-year German bonds edged up to 2.28%; French bonds inched higher to 2.78%; the UK gilts edged lower to 3.98%; and Italian bonds inched lower to 3.84%.
The euro edged lower to $1.075, the British pound inched higher to $1.260, and the U.S. dollar gained to 87.0 Swiss cents.
Brent crude decreased $0.36 to $76.96 a barrel, and the Dutch TTF natural gas decreased by €0.44 to €28.86 per MWh.
Europe Stock Movers
UniCredit SpA soared 10% to €29.36 after the largest Italian bank reported higher-than-expected profit and announced its plan to increase shareholder payout.
CMC Markets PLC soared 15% to 152.84 pence after the online trading platform announced its plan to cut 200 jobs to reduce its overall operating costs.
Vodafone Group fell 0.5% to 68.25 pence, despite the wireless telecom operator reporting higher-than-expected sales in the fiscal third quarter.
Societe Generale declined 0.6% to €22.97 after the French lender announced organization changes at its headquarters that would lead to 900 voluntary departures.
Positive Earnings and Weaker Yen Drive Nikkei Higher, China Stocks Struggled to Rebound
Arjun Pandit
05 Feb, 2024
Mumbai
Market indexes in Tokyo, China, and India edged higher in volatile trading, but the indexes in Seoul and Sydney fell.
Global market sentiment was cautious in Monday's trading after the U.S. dollar perked up, crude oil prices fell, and tensions in the Middle East stayed elevated.
In addition, rate-cut expectations were also dashed after the U.S. economy added 353,000 jobs in January, surpassing expectations by a wide margin.
Federal Reserve Chairman Powell confirmed in an interview on Sunday that policymakers may wait after the next meeting in March to cut interest rates.
The U.S. dollar index jumped to an 8-week high against the basket of currencies after comments from Powell suggested that rates are likely to stay higher longer than expected.
Crude oil dropped 0.5% before recovering in late afternoon trading across Asia after the U.S. dollar rebounded and China's regulatory announcement fell short of market expectations.
On the economic front, Australia's December exports increased 1.8% to A$47.1 billion, imports rose 4.8% to A$36.2 billion, resulting in a trade surplus of A$10.95 billion, the Australian Bureau of Statistics reported Monday.
Nikkei Extended Gains on Yen Weakness and Positive Earnings
The Nikkei 225 average jumped 0.6% to 36,373.16 and inched closer to the high of the year so far, and the KOSPI index fell 0.6% to 2,598.68.
Export-sensitive stocks advanced after the Japanese yen fell sharply following the strength in the U.S. dollar.
Canon, Panasonic, Seiko Epson, and Fujitsu advanced between 2% and 7%.
Isetan Mitsukoshi soared 6.5% to ¥1,933.50 after the retailer reported better-than-expected financial results, increased its interim dividend, and announced a stock buyback.
China Stocks Rebound In Volatile Trading
Market indexes in China dropped in early trading following comments from Chairman Powell and a lack of specific stimulus from the government.
Stocks in afternoon trading erased morning losses after the China Regulatory Commission pledged to stabilize financial markets and crack down on market speculators in a statement released on Sunday.
But the regulatory agency fell short of announcing concrete steps in the near future.
The CSI 300 index advanced 1.2% to 3,184.64, and the Hang Seng index rebounded 0.3% to 3,184.64.
The Hang Seng index extended its 2024 loss to 9%, the worst-performing index among the leading markets around the world.
Small-cap stock indexes on the mainland China dropped around 5% after the unwinding of structured products linked to small capitalization stocks triggered the sale of underlying securities.
Baidu, Tencent, Alibaba Group, and JD.com traded volatile and fell as low as 2% before rebounding to a 1.0% gain.
Property developers also lacked direction and traded volatile.
Longfor Group, China Overseas Land and Development, Country Garden, and Sun Hung Kai Properties traded between a decline of 3% and a gain of 1.2%.
India Indexes Turned Lower Ahead of Rate Decision
Stocks in Mumbai opened lower amid weak markets in Asia and ahead of rate decisions from the RBI later in the week.
The Reserve Bank of India is expected to hold its key lending rates steady for the sixth time in a row on Thursday.
The central bank is widely anticipated to hold rates, tracking the rate decisions made by the U.S., UK, and Euro Area.
The Sensex index decreased 50.06 points to 72,035.57, and the Nifty index gained 5.90 points to 21,859.70.
On the Mumbai stock exchange, 272 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
The State Bank of India declined 1.1% to ₹642.65 after the largest lender in the country reported a decline in net profit in the latest quarter.
Net profit in the December quarter plunged 35.5% to ₹9,164 crore from ₹14,205 crore a year ago after the bank set aside ₹7,100 crore for its pension liabilities.
Tata Motors gained 6.5% to ₹936.50 after the Jaguar and Land Rover maker reported a surge in its latest quarter profit.
Consolidated profit in the December quarter soared 137.5% to ₹7,025 crore from a year ago.
U.S. Economy Adds 353,000 Jobs In January Defying Slowdown Expectations
Brian Turner
02 Feb, 2024
New York City
Total non-farm payroll employment increased to 353,000 in January, the U.S. Bureau of Labor Statistics reported on Friday.
The jobless rate remained at 3.7% in January, and the number of unemployed people was little changed at 6.1 million.
The labor force participation rate, at 62.5%, was unchanged in January, and the employment-population ratio, at 60.2%, was little changed.
Professional business services added 74,000 jobs, followed by gains in healthcare by 70,000, retail trade by 45,000, and social assistance by 30,000.
On the other hand, the mining, quarrying, and oil and gas extraction industries lost 5,000 jobs.
Net job gains in December were upwardly revised by 117,000 to 333,000 and in November by 9,000 to 183,00.
In January, average hourly earnings for all employees on a private nonfarm payrolls rose by 19 cents, or 0.6%, to $34.55.
Over the past 12 months, average hourly earnings have increased by 4.5%, suggesting tight labor market conditions are likely to persist.
U.S. Movers: Amazon.com, Apple, Chevron, Exxon Mobil, Meta
Scott Peters
02 Feb, 2024
New York City
Amazon.com jumped 6.4% to $169.35 after the online retailer reported better-than-expected quarterly results.
Revenue in the fourth quarter increased 14% to $170 billion from $149.2 billion, net income rose to $10.6 billion from $0.3 billion, and diluted earnings per share advanced to $1.0 from 3 cents a year ago.
The company estimated net sales in the first quarter between $138 billion and $143.5 billion, an increase between 8% and 13% from a year ago.
Operating income is expected between $8 billion and $12 billion, compared to $4.8 billion in the quarter a year ago.
Apple declined 2.9% to $181.87 after the computer device maker reported better-than-expected sales in the latest quarter, but the company's struggle in China overshadowed overall results.
Net sales in the fourth quarter increased to $119.6 billion from $117.1 billion, net income jumped to $33.9 billion from $29.99 billion, and diluted earnings per share rose to $2.18 from $1.88 a year ago.
Sales in Greater China declined to $20.8 billion from $23.9 billion; in the Americas, sales increased to $50.4 billion from $49.3 billion; and in Japan, sales rose to $7.7 billion from $6.7 billion.
Meta jumped 17% to $461.50 after the online networking platform operator reported a sharp rise in revenue and earnings and announced its first dividend.
Revenue in the fourth quarter soared 25% to $40.1 billion from $32.2 billion, net income advanced to $14.0 billion from $4.6 billion, and diluted earnings per share jumped to $5.33 from $1.76 a year ago.
The company repurchased $6.32 billion and $20.03 billion of its common stock in the fourth quarter and full year 2023, respectively.
As of the end of 2023, the company had $30.93 billion available and authorized for stock repurchases, and the company announced a $50 billion increase in its share repurchase authorization today.
The company declared its first-ever quarterly cash dividend of 50 cents per share payable on March 26 to shareholders on record on February 22.
Exxon Mobil jumped 1% to $103.39 after the largest U.S. oil company reported better-than-expected quarterly results, but profit fell sharply because of a sharp decline in crude oil prices.
Total revenue in the fourth quarter declined to $84.3 billion from $95.4 billion, net income dropped to $7.6 billion from $12.7 billion, and diluted earnings per share fell to $1.91 from $3.09 a year ago.
The company declared a first-quarter dividend of 95 cents per share payable on March 11 to shareholders on record on February 14.
For the full year, the company distributed in 2023 to shareholders $32.4 billion, including $14.9 billion in dividends and $17.4 billion in stock repurchases.
The company also announced its plan to produce lithium through a mining operation in southwest Arkansas, with the potential to supply one million electric vehicles per year.
Chevron increased 1.2% to $149.70 after the second-largest U.S. oil company reported a decline in earnings in its latest quarter but also rewarded its shareholders with record dividends and stock buybacks in 2023.
Total revenue in the fourth quarter decreased to $47.2 billion from $56.5 billion, net income plunged to $2.2 billion from $6.4 billion, and diluted earnings per share fell to $1.22 from $3.33 a year ago.
The company's annual worldwide net oil-equivalent production in 2023 surpassed 3.1 million barrels, driven by a 14% rise in production in the U.S.
Cash returned to shareholders increased 18% to $26 billion, including a dividend of $11.3 billion and a stock repurchase of $14.9 billion.
“In 2023, we returned more cash to shareholders and produced more oil and natural gas than any year in the company’s history,” said Mike Wirth, Chevron’s chairman and chief executive officer.
Amazon Meta, and Exxon Earnings Fuel Wall Street Advance
Barry Adams
02 Feb, 2024
New York City
Stocks on Wall Street looked up and extended weekly gains after investors reviewed another batch of earnings and awaited the release of the jobs report.
The S&P 500 index and the Nasdaq Composite advanced more than 0.5% after investors looked past the latest comments from the Federal Reserve.
Investors stepped up to increase high-growth and tech stocks and increased bets that the U.S. economy will stay stronger in 2024, driven by rising consumer spending and a resilient economy.
Investors are hoping that earnings growth will remain stable or may pick up in the year if the Federal Reserve decides to cut rates in the second half.
U.S. Indexes and Yields
The S&P 500 index increased 0.5% to 4,958.27, and the Nasdaq Composite rose 1.1% to 15,462.68.
The yield on 2-year Treasury notes increased to 4.23%. 10-year Treasury notes declined to 3.88%, and 30-year Treasury bonds edged down to 4.11%.
WTI crude oil increased $0.25 to $74.07 a barrel, and natural gas prices decreased 1 cent to $2.06 a thermal unit.
Gold increased by $0.93 to $2,055.75 an ounce and extended the previous week's gains after the U.S. dollar drifted slightly lower in international trading.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.97.
U.S. Stock Movers
Amazon.com jumped 6.4% to $169.35 after the online retailer reported better-than-expected quarterly results.
Apple declined 2.9% to $181.87 after the computer device maker reported better-than-expected sales in the latest quarter, but the company's struggle in China overshadowed overall results.
Meta jumped 17% to $461.50 after the online networking platform operator reported a sharp rise in revenue and earnings and announced its first dividend.
Exxon Mobil jumped 1% to $103.39 after the largest U.S. oil company reported better-than-expected quarterly results, but profit fell sharply because of a sharp decline in crude oil prices.
Chevron increased 1.2% to $149.70 after the second-largest U.S. oil company reported a decline in earnings in its latest quarter but also rewarded its shareholders with record dividends and stock buybacks in 2023.