Market Update
U.S. Movers: American Airlines, Abercrombie & Fitch, Cava, Chewy, ConocoPhillips, Dicks' Sporting Goods
Scott Peters
29 May, 2024
New York City
Chewy jumped 6.5% to 18.0 after the online pet food store reported better-than-expected fiscal first quarterly results.
Revenue in the fiscal first quarter increased to $2.9 billion from $2.8 billion, net income to $67.3 million from $22.8 million, and diluted earnings per share advanced to 15 cents from 5 cents a year ago.
Chewy also announced today that its board has authorized a share repurchase program of up to $500 million of its Class A and/or Class B common stock.
The company's active customer base in the quarter edged slightly lower to 20.0 million from 20.4 million a year ago, and net sales per active customer increased to $562 from $513 a year ago.
The company estimated net sales in the fiscal second quarter to range between $2.84 billion and $2.86 billion, an increase of between 2% and 3% from a year ago.
The company estimated fiscal year 2024 sales to range between $11.6 billion and $11.8 billion, an increase of between 4% and 6% from the previous year.
Marathon Oil jumped 8.3% to $28.64 after the company agreed to be acquired by ConocoPhillips for $22.5 billion, and assuming the company's $5.4 billion of debt.
Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock, representing a 14.7% premium to the closing share price of Marathon Oil on May 28, 2024, and a 16.0% premium to the prior 10-day volume-weighted average price.
The deal is expected to be immediately accretive to earnings to ConocoPhillips shareholders.
After the transaction, the third-largest U.S. oil company plans to increase its dividend by 34% to 78 cents per share starting in the fourth quarter of 2024.
Upon closing of the transaction, ConocoPhillips expects share buybacks to be over $20 billion in the first three years, with over $7 billion in the first full year, at recent commodity prices.
The oil industry has experienced a wave of transactions in recent months. Exxon Mobil agreed to acquire Pioneer Natural Resources for $60 billion, and Hess' shareholders approved the merger of the company with Chevron.
Dick's Sporting Goods jumped 10.2% to $214.75 after the specialty retailer reported better-than-expected quarterly earnings and comparable sales rose 5.3%.
Increase in customer visits, more customer transactions, and a larger average ticket size drove sales higher.
The specialty retailer said revenue in the quarter ending on May 4 rose 6% to $3.02 billion from $2.84 billion, net income fell to $275 million from $303 million, and diluted earnings per share eased to $3.30 from $3.40 a year ago.
The retailer estimated full-year earnings per share to range between $13.35 and $13.75, higher than the previous estimate between $12.85 and $13.25.
Abercrombie & Fitch soared 10.4% to $170.59 after the company reported record first-quarter sales.
Revenue in the quarter ending on May 4 rose 22.1% to $1.02 billion, driven by an Abercrombie sales increase of 31.1% to $571.1 million and Hollister sales growth of 12.3% to $449.2 million.
Net income in the quarter advanced to $113.9 million from $16.6 million, and diluted earnings per share rose to $2.14 from 32 cents a year ago, respectively.
Cava Group dropped 8.5% to $75.50 after the salad restaurant chain reported better-than-expected quarterly results.
The stock declined after the Mediterranean fast-casual restaurant chain operator reported a decline in customer traffic.
Revenue increased 30.3% to $256.3 million, driven by a 2.3% increase in same-store sales. The sales increase was also driven by a 3.5% increase in menu prices, offset by a 1.2% decrease in store traffic.
Net income swung to a profit of $14.0 million from a loss of $2.1 million, and diluted earnings per share were 12 cents compared to a loss of $1.30 a year ago.
The company estimated new store openings between 50 and 54 from the previous estimate between 48 and 52, and the same store sales growth range between 4.5% and 6.5% from the previous estimate between 3.0% and 5.0%.
American Airlines Group declined 14.5% to $11.47 after the company said in a regulatory filing that it plans to slow its capacity growth in the second half and that its Chief Commercial Officer, Vasu Raja, will depart the airline in June.
The company lowered its adjusted operating margin guidance by 1 percentage point to between 8.5% and 10.5% from the previous estimate of between 9.5% and 10.5%.
The airline also lowered its fiscal second-quarter adjusted earnings per share to between $1.0 and $1.15 from the previous estimate of between $1.15 and $1.45.
The airline said its capacity growth in the second quarter will slow to 3.5% from 8.5% in the first half of fiscal 2024.
ConocoPhillips Agreed to Acquire Marathon Oil In All-Stock $22.5 Billion Deal
Scott Peters
29 May, 2024
New York City
Marathon Oil jumped 8.3% to $28.64 after the company agreed to be acquired by ConocoPhillips for $17.1 billion and assume $5.4 billion in debt.
Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock, representing a 14.7% premium to the closing share price of Marathon Oil on May 28, 2024, and a 16.0% premium to the prior 10-day volume-weighted average price.
The deal is expected to be immediately attractive to ConocoPhillips shareholders.
After the transaction, the third-largest U.S. oil company plans to increase its dividend by 34% to 78 cents per share starting in the fourth quarter of 2024.
Upon closing of the transaction, ConocoPhillips expects share buybacks to be over $20 billion in the first three years, with over $7 billion in the first full year, at recent commodity prices.
The oil industry has experienced a wave of transactions in recent months. Exxon Mobil agreed to acquire Pioneer Natural Resources for $60 billion, and Hess' shareholders approved the merger of the company with Chevron.
U.S. Stocks Turn Lower as Treasury Yields Inch Higher
Barry Adams
29 May, 2024
New York City
Stocks and benchmark indexes slipped in early trading on Wednesday, and the yield on U.S. Treasury notes advanced for the second day in a row.
The S&P 500 index and the Nasdaq Composite edged down 0.2%, and megacap technology stocks struggled near recent levels.
Nvidia attempted to extend gains after rising more than 20% following the company's earnings report last week, which exceeded the most optimistic outlook.
Investors are betting that the company at the center of the artificial intelligence technology wave is likely to continue to deliver earnings growth that is ahead of market expectations as the large data center operators ramp up the purchase of servers with advanced chips.
Most investors are anticipating Nvidia to deliver at least $23 per share in earnings in the fiscal year ending in January 2025, and the AI chipmaker's earnings in the next fiscal year could range between $30 and $36 per share.
The bond market sold off after the Treasury Department auction for 2-year and 5-year notes fell short of expectations, driving the yield on 10-year Treasury notes above the critical level of 4.5%.
U.S. Indexes and Treasury Yields
The S&P 500 index fell 0.7% to 5,286.19, and the Nasdaq Composite dropped 0.9% to 16,731.52.
The yield on 2-year Treasury notes edged higher to 4.97%, 10-year Treasury notes increased to 4.57%, and 30-year Treasury bonds edged lower to 4.59%.
WTI crude oil increased $0.09 to $80.37 a barrel, and natural gas prices eased 6 cents to $2.77 a thermal unit.
Gold decreased by $16.75 to $2,343.14 an ounce, and silver fell 9 cents to $31.96.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.73.
U.S. Stock Movers
Chewy jumped 6.5% to 18.0 after the online pet food store reported better-than-expected quarterly results.
Marathon Oil jumped 8.3% to $28.64 after the company agreed to be acquired by ConocoPhillips for $17.1 billion and assume $5.4 billion in debt.
Marathon Oil shareholders will receive 0.2550 shares of ConocoPhillips common stock for each share of Marathon Oil common stock, representing a 14.7% premium to the closing share price of Marathon Oil on May 28, 2024, and a 16.0% premium to the prior 10-day volume-weighted average price.
The deal is expected to be immediately attractive to ConocoPhillips shareholders.
After the transaction, the third-largest U.S. oil company plans to increase its dividend by 34% to 78 cents per share starting in the fourth quarter of 2024.
Upon closing of the transaction, ConocoPhillips expects share buybacks to be over $20 billion in the first three years, with over $7 billion in the first full year, at recent commodity prices.
The oil industry has experienced a wave of transactions in recent months. Exxon Mobil agreed to acquire Pioneer Natural Resources for $60 billion, and Hess' shareholders approved the merger of the company with Chevron.
Europe Movers: Anglo American, BHP, Oil Stocks, IDS
Inga Muller
29 May, 2024
Frankfurt
European stock market indexes declined, bond yields rose, and crude oil prices jumped ahead of the OPEC meeting this Sunday.
The DAX index decreased by 0.6% to 18,571.37; the CAC-40 index fell by 0.9% to 7,985.61; and the FTSE 100 index decreased by 0.2% to 8,234.89.
The yield on 10-year German bonds edged up to 2.62%; French bonds inched higher to 3.11%; the UK gilts edged lower to 4.35%; and Italian bonds inched higher to 3.93%.
International Distributions Services advanced 4% to 334.0 after the parent company of Royal Mail accepted a £3.57 billion takeover proposal from EP Group, controlled by Czech billionaire Daniel Kretinsky.
BHP Group gained 2.1% to 2,384.0 pence on a report that the mining company has requested Anglo American to extend the deadline for a final takeover proposal worth £39 billion.
Anglo American decreased 1.9% to 2,511.50 pence.
Oil explorers and refiners extended gains for the second day in a row amid rising tensions in the Middle East, and traders hoped that the OPEC member nations would extend production cuts at the next meeting this Sunday.
BP plc gained 1.6% to 493.60 pence, Shell PLC jumped 1.7% to 2,827.0, and TotalEnergies SE gained 0.4% to €66.43.
European Stocks Face Selling Pressure After Bond Yields Advance
Bridgette Randall
29 May, 2024
Frankfurt
The sharp selloff in the bond market weighed on stock market indexes, and the euro held its ground.
Bonds in the Euro Area sold off after the U.S. Treasury auction of 2-year and 5-year notes was weaker than anticipated.
The U.S. Treasury yields jumped following the unexpected weakness in the auction and sparked a selloff in worldwide bonds.
The yield on the 10-year German Bund increased to a 6-month high, the French bond yield advanced to a one-month high, and the UK 10-year government bond yield jumped to a three-week high.
Investors also pared back rate-cut expectations amid slow progress on disinflation and hawkish comments from policymakers in the U.S. and Europe.
Investors are also looking forward to the release of Germany's consumer price inflation data later in the day.
Benchmark indexes in London, Paris, and Frankfurt traded down, and crude oil prices advanced amid rising tensions in the Middle East.
Spain's Retail Sales Growth Slowed In April
Spain's retail sales increase slowed for the third month in a row, according to the data released by the statistical agency INE.
Retail sales in April rose 0.3% from a year ago, after an upwardly revised 0.9% increase in the previous month.
Retail sales rose at the slowest pace since November 2022, after spending on food and non-food items rose at a significantly slower pace.
On a monthly basis, Spain's retail sales rose 0.8%, reversing a 0.4% fall in the previous month.
In the first four months to April 2024, retail sales rose from a year ago by 0.9%.
Europe Indexes and Yields
The DAX index decreased by 0.6% to 18,571.37; the CAC-40 index fell by 0.9% to 7,985.61; and the FTSE 100 index decreased by 0.2% to 8,234.89.
The yield on 10-year German bonds edged up to 2.62%; French bonds inched higher to 3.11%; the UK gilts edged lower to 4.35%; and Italian bonds inched higher to 3.93%.
The euro edged higher to $1.084; the British pound inched higher to $1.274; and the U.S. dollar gained to 91.34 Swiss cents.
The euro approached a record high against the Japanese yen on the speculation that the European Central Bank is likely to take a slower approach to lowering its interest rate compared to the U.S. Federal Reserve.
The yen fell to this month's low of 170.44 and approached a record low of 171.56 against the euro.
Brent crude increased $0.17 to $84.75 a barrel, and the Dutch TTF natural gas fell by €0.21 to €33.31 per MWh.
Europe Stock Movers
International Distributions Services advanced 4% to 334.0 after the parent company of Royal Mail accepted a £3.57 billion takeover proposal from EP Group, controlled by Czech billionaire Daniel Kretinsky.
BHP Group gained 2.1% to 2,384.0 pence on a report that the mining company has requested Anglo American to extend the deadline for a final takeover proposal worth £39 billion.
Oil explorers and refiners extended gains for the second day in a row amid rising tensions in the Middle East, and traders hoped that the OPEC member nations would extend production cuts at the next meeting this Sunday.
BP plc gained 1.6% to 493.60 pence, Shell PLC jumped 1.7% to 2,827.0, and TotalEnergies SE gained 0.4% to €66.43.
The Rise In Global Bond Yields Weighs On Japanese Stocks and Yen
Akira Ito
29 May, 2024
Tokyo
Weak yen and global interest rate worries weighed on market sentiment in Tokyo ahead of the release of the inflation update.
The Nikkei and the Topix fell as much as 1%, and the yield on Japanese government bonds inched higher than 1% to a 12-year high after hawkish comments from non-voting members of the Federal Reserve's policymaker.
Market sentiment in Tokyo was also on the defensive after the U.S. Treasury yields unexpectedly rose following the weaker-than-expected auction of 2-year and 5-year Treasury notes.
The widening yield gap between the U.S. and Japan dragged the Japanese yen lower, and the currency traded at 157.86 against the U.S. dollar in late afternoon trading in Tokyo.
Investors are also looking ahead to the release of the Tokyo area's inflation data for April, and the city's inflation is generally seen as a bellwether of the nationwide price trends.
Japan Stock Movers
The Nikkei 225 stock average dropped 0.8% to 38,556.87, and the Topix index declined 1% to 2,741.62.
Stocks in Tokyo traded down on the ongoing monetary policy uncertainty and the weakness in the yen.
Mitsubishi UFJ rose 0.6% to ¥1,637.0 and traded at an 18-year high on the expectations of the company benefiting from the weaker yen and rising bond yields.
Last week, Mitsubishi UFJ reported a record profit of 1.5 trillion yen in the financial year 2024 and announced a stock repurchase program of 50 billion yen.
The company also announced the CET1 ratio, a measure of risk capital, to range between 9.5% and 10.5%, and a dividend payout ratio of around 40%.
Utilities and heavy industry-linked stocks were among the leading decliners.
Tokyo Electric Power dropped 8.3% to ¥926.30, Mitsubishi Heavy Industries declined 3.6% to ¥1,308.0, and Teijin Ltd. fell 5.5% to ¥1,519.0.
Diversified exporters and financial services were among the leading gainers.
Sompo Holding, the diversified insurance group, rose 4.2% to ¥3,306.0; Hoya Corp., the maker of optical products for the semiconductor industry, gained ¥18,635.0; and Konami Group, the video game publisher, gained 3.3% to ¥10,905.0.
China Indexes Extend Losses, Yuan Weakens to a 6-month Low
Li Chen
29 May, 2024
Hong Kong
Market indexes headed lower and extended recent losses as investors assessed the impact of policymakers' plans to revive property market transactions and stabilize economic growth.
Shenzhen and Guangzhou joined other top-tier cities to ease restrictions on home purchases, following efforts by the politburo and the People's Bank of China to encourage more activities in the sector.
Investors are increasingly worried that policymakers' focus on encouraging real estate purchases may fall flat amid a lack of consumer confidence, a lack of credibility among real estate developers, and elevated home prices.
Despite the added incentives to buy real estate, most families are parking their money in bank savings or purchasing precious metals, avoiding the purchase of new and unfinished houses.
Investors are also looking ahead to the release of purchasing managers' index data on Friday, and expectations are high that the manufacturing sector will remain in expansion.
China's top leadership has emphasized advanced manufacturing as one of the key drivers of economic growth, and exports of electric vehicles, renewable energy, and advanced electronics are expected to contribute to job market expansion.
The Chinese yuan drifted to a six-month low of 7.2658 against the U.S. dollar ahead of the release of the manufacturing sector update on Friday.
The People's Bank of China also set the exchange rate near the bottom of its trading range to facilitate exports and stem the growing tide of capital outflow.
Currency traders are bracing for more devaluation of the yuan amid persistent weakness in the Japanese yen, pressuring already narrow margins for exported goods.
China Stock Movers
The CSI 300 index increased 0.1% to 3,614.27, and the Hang Seng index dropped 1.8% to 18,491.92.
Property developers traded with a downward bias on the worry that the recent measures announced by the government are likely to fall short in reviving the fortunes of companies.
China Resources Land decreased 1.6% to HK$30.0, China Vanke declined 3% to $5.70, and Longfor Group fell 1% to HK$13.24.
Property developer stocks have rebounded about 30% in the last three weeks of trading, but stocks in the sector are still down more than 70% from the peak in April 2021.
Lenovo Group declined 1.9% to HK$11.60 after the personal computer maker signed a deal with Saudi Arabia's sovereign wealth fund to sell $2 billion of convertible bonds.
Stock declined on the worry that a higher share count would dilute earnings per share.
BYD soared 5.3% to HK$217.60 after the electric vehicle maker announced an upgrade that could extend the driving range of its hybrid electric vehicle.
India Movers: Amara Raja Energy, Aditya Birla Fashion, GNFC, Hindalco Industries, IRCTC, NBCC
Arun Goswami
29 May, 2024
Mumbai
Stocks in Mumbai headed lower and market indexes declined as the Lok Sabha election results date approached next week.
Market sentiment was also on the defensive amid rising tensions in the Middle East and in the Taiwan Strait.
The Sensex index decreased by 0.5% to 74,766.10, and the Nifty index fell by 0.5% to 22,764.60.
On the Mumbai stock exchange, 74 stocks traded at their 52-week highs, and 32 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.01%, and the Indian rupee edged lower at ₹83.25 against the U.S. dollar.
Gujarat Narmada Valley Fertilizers and Chemicals dropped 1.9% to ₹658.0 after the company reported a decline in revenue and earnings in the March quarter.
Consolidated revenue declined 7.1% to ₹2,110 crore from ₹2,271 crore, and net income plunged 61.3% to ₹130 crore from ₹663 crore a year ago, respectively.
Amara Raja Energy decreased 0.4% to ₹1,242.45 despite the battery maker reporting higher revenue and earnings in the March quarter.
Revenue increased 19.5% to ₹2,908 crore from ₹2,433.2 crore, and net income soared 61.4% to ₹229.8 crore from ₹142 crore a year ago, respectively.
Aditya Birla Fashion & Retail eased 1.4% to ₹282.0 after the apparel retail company reported a wider loss in the March quarter.
Consolidated revenue in the quarter rose 18.3% to ₹3,407 crore from ₹2,880 crore, and net loss widened to ₹266 crore from ₹195 crore a year ago, respectively.
IRCTC decreased 4.3% to ₹1,034.95 after the food services provider reported weaker-than-expected earnings growth in the March quarter.
Revenue advanced 19.7% to ₹1,154.8 crore from ₹965 crore, and net income inched up 1.9% to ₹284.2 crore from ₹278.8 crore a year ago, respectively.
Hindalco Industries inched up 0.6% to ₹686.40 after the company's subsidiary is set to list its share on the New York Stock Exchange.
Novelis is planning to raise as much as $945 million through the sale of 45 million shares at prices between $18 and $21 a share, according to a filing with the U.S. securities regulator.
NBCC rose 2.4% to ₹142.05 after the construction company reported a rise in revenue and earnings in the March quarter.
Revenue soared 43.1% to ₹4,025 crore from ₹2,813 crore, and net income advanced 24.5% to ₹141 crore from ₹114 crore, a year ago, respectively.
Momentum In Nvidia Powers Nasdaq's Rise Above 17,000
Alexander Garcia
28 May, 2024
Miami
Stocks on Wall Street inched higher as investors looked ahead to the release of inflation data later in the week.
Market sentiment was subdued after Minneapolis Fed President Neal Kashkari said that policymakers will like to see sustained slowdown in inflation for several months before interest rates could be lowered.
Market sentiment was subdued after Minneapolis Fed President Neal Kashkari said that policymakers would like to see a sustained slowdown in inflation for several months before interest rates could be lowered.
Kashkari's comments echo comments from other participants in the rate-setting committee and minutes from the latest policy meeting.
“Many more months of positive inflation data, I think, to give me confidence that it’s appropriate to dial back,” Kashkari said in an interview with the CNBC.
Kashkari is not a voting member of the rate-setting committee in 2024, but he does participate in the policy decision.
Kashkari said that the Federal Reserve could potentially hike interest rates if inflation fails to weaken further in the coming months.
Tech stocks advanced after investors returned from a 3-day weekend amid ongoing interest rate jitters and worries of a consumer pullback.
The Nasdaq Composite advanced by 0.7%, and traded above 17,000 for the first time after Nvidia surged 5.5%.
This month, the S&P 500 index has advanced more than 5% and the Nasdaq Composite has gained about 8%, and the two popular market indexes are set to extend gains in this holiday-shortened week of trading.
Investors are looking forward to the release of the persona income and outlay report, which includes the persona consumption expenditure index, on Friday.
The PCE index, the preferred measure of inflation by Federal Reserve policymakers, is likely to provide fresh insights into the inflationary forces and how consumers are adjusting to the sustained increase in prices of food, fuel, and shelter.
U.S. Indexes and Treasury Yields
The S&P 500 index rose 0.1% to 5,308.81, and the Nasdaq Composite jumped 0.5% to 17,006.51.
The yield on 2-year Treasury notes edged lower to 4.93%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds edged lower to 4.55%.
WTI crude oil increased $1.07 to $79.68 a barrel, and natural gas prices advanced 2 cents to $2.53 a thermal unit.
Gold increased by $8.61 to $2,361.14 an ounce, and silver rose 7 cents to $31.53.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.36.
U.S. Stock Movers
GameStop jumped 21% to $23.30 after the specialty retailer said it raised $933.4 million through the sale of 45 million in a secondary offering.
United States Cellular Corp. jumped 10.3% to $47.50 after the wireless services provider agreed to be acquired by T-Mobile.
Deutsche Telekom-controlled T-Mobile agreed to pay $4.4 billion for the wireless operation of U.S. Cellular and 30% of its wireless spectrum assets.
The deal is expected to be completed in the second quarter of 2025, and T-Mobile will also enter into a new licensing agreement on more than 2,000 towers.
European Indexes Struggled to Advance
European market indexes struggled to rise above the flatline as investors awaited the release of inflation surveys in the eurozone and in the U.S.
Benchmark indexes in Frankfurt, Paris, and London as investors reviewed the latest economic updates.
The Euro Area consumer expectations' for the next 12 months eased to 2.9% in April from 3.0% in March, according to the survey from the European Central Bank released on Tuesday.
Inflation expectations fell to their lowest level since September 2021.
The U.K. shop price inflation slowed to an annual increase of 0.6% in May after an increase of 0.8% in April, the British Retail Consortium and the market research company NielsenIQ reported Tuesday.
The shop price inflation rose at the slowest pace since November 2021.
Germany's Wholesale Price Decline slowed In April
Germany's wholesale prices declined and slowed in April, according to the Federal Statistical Office, or Destastis.
The wholesale price index decline slowed to an annual pace of 1.8% in April, after falling 2.7% in March and 2.6% in February.
The latest wholesale price index is based on a new series that reflects the revised base rate for 2021 from 2015 and changes in baskets of goods and weights for individual items.
On a monthly basis, wholesale prices rose 0.4% in April from the previous month.
The main reason for the overall decline in wholesale prices was the drop in prices in the wholesale trade in chemical products (17.9%), grain, raw tobacco, seeds, and animal feed (12.2%), ores, metals, and semi-finished metal products (7.2%), scrap and residues (6.8%), and milk, milk products, eggs, edible oils, and food fats (6.3%).
Meanwhile, wholesale prices for coffee, tea, cocoa, and spices rose (9.3%), sugar, confectionery, and baked goods (7.2%), and tobacco products (5.0%).
Europe Indexes and Yields
The DAX index decreased by 0.6% to 18,664.33; the CAC-40 index fell by 1.0% to 8,046.34; and the FTSE 100 index decreased by 0.8% to 8,253.64.
The yield on 10-year German bonds edged down to 2.56%; French bonds inched higher to 3.05%; the UK gilts edged lower to 4.23%; and Italian bonds inched higher to 3.87%.
The euro edged higher to $1.087; the British pound inched higher to $1.277; and the U.S. dollar gained to 91.06 Swiss cents.
Brent crude increased $1.20 to $84.05 a barrel, and the Dutch TTF natural gas fell by €1.42 to €33.51 per MWh.
Europe Stock Movers
Rheinmetall AG increased 0.3% to €533.80 after the German automotive and arms company won an order from a European government for the supply of 35 mm AHEAD ammunition for the Skynex air defense system.
Cadeler AS decreased 1.7% to €5.80 after the offshore wind turbine installation vessel reported a loss in the first quarter.
Revenue in the first quarter was €19 million, matching the level in the period a year ago, and operating income swung to a loss of €10 million compared to a gain of €8 million a year ago.
The company reiterated its 2024 revenue to range between €225 million and €245 million and its operating income between €105 million and €125 million.
The company's order book swelled to €1.8 billion.
In addition, the company completed a successful private placement on February 15 and sold 39.5 million shares at a price of NOK 44.50 per share, raising €155 million before transaction costs.
Softcat PLC declined 0.9% to 1,700.0 pence despite the IT infrastructure company reiterating its full-year outlook.
ThyssenKrupp AG rose 1.9% to €4.82 after the company's material services unit's chairman, Martin Stillger, decided to resign effective May 31.
Intermediate Capital Group rose 2.7% to 2,382.0 pence after the private equity group reported record management fees and assets under management.
Management fees in the financial year increased 5% to £505 million, and fund management profit before tax soared 21% to £375 million.
Total fee earnings and assets under management rose 11% to £70 billion at the end of the financial year 2024.
The company declared a total ordinary dividend of 79 pence per share, increasing its annual dividend for the 14th year in a row.
Japan Stocks Lack Direction Amid Rate Path and Yen Uncertainties
Stocks in Tokyo traded sideways amid ongoing interest rate jitters and uncertainty surrounding the Bank of Japan's policy response.
The Nikkei 225 and the Topix index edged lower in a choppy trading session as investors parsed comments from Bank of Japan Deputy Governor Shinichi Uchida.
On Monday, Deputy Governor Uchida suggested that Japan's persistent battle against deflation is nearing an end amid sustained price increases driven by the increase in energy prices and that estimated wages are likely to keep rising in the near future.
Moreover, investors also reviewed the latest comments from the European Central Bank's policymakers, suggesting that the first interest rate cut may be announced as early as next week after the next policy meeting.
The Japanese yen traded at 156.87 against the U.S. dollar in late afternoon trading in Tokyo as currency traders bet that the Bank of Japan will keep its accommodative stance intact amid the large rate gap between the U.S. and Japan.
Japan Stock Movers
The Nikkei 2225 Stock Average declined 0.1% to 38,864.32, and the Topix index advanced 0.1% to 2,768.73.
Technology stocks traded mixed, and Tokyo Electron, Advantest, and Screen Holdings declined, but Socionext and Renesas Electronics fell as much as 1.0%.
Financial stocks also traded mixed for the second session in a row, with Sumitomo Mitsui Financial and Mitsubishi Financial advancing 1% and Mizuho Financial falling about 0.8%.
Power generators and distributors led the gainers in Tokyo trading.
Toray Industries, Furukawa Electric, and Kansai Electric Power advanced between 3% and 7%.
Shanghai Announces Measures to Support Property Market Amid Weak Demand and High Prices
Benchmark indexes in Shanghai and Hong Kong attempted to trade higher after the Shanghai government announced measures to support local property market transactions.
Shanghai authorities announced several measures to revive property market transactions and became the first tier-1 city as the central government offers financial incentives for regional governments as a part of a national plan.
Shanghai lowered down-payment requirements and mortgage interest rates for first-time home buyers, permitted families with more than one child to purchase additional houses, and eased property purchase restrictions for out-of-city residents.
The moves are designed to encourage buyers to acquire additional properties and increase liquidity for property developers.
However, these measures are likely to fall short as buyers struggle with affordability issues amid sky-high house prices and job market uncertainty.
The CSI 300 index and the Hang Seng index jumped nearly 1% in early trading but lost momentum in afternoon trading.
China Stock Movers
The CSI 300 index decreased 0.4% to 3,620.25, and the Hang Seng index edged up 0.04% to 18,829.03.
China Vanke declined 1.3% to HK$6.03 after the state-controlled residential property developer agreed to sell an unfinished project for 2.24 billion yuan, or $309 million, and the company is likely to take a loss of 1.8 billion yuan.
China Vanke sold the plot of land to its largest shareholder, Shenzhen Metro, and Baishuo Investment, and the land was acquired in December 2017 with the plan to build the company's headquarters for 3.1 billion yuan.
Longfor Group decreased 1% to HK$13.48, and China Resources Land was nearly unchanged at HK$30.55.
Semiconductor stocks traded higher after Beijing announced the setting up of a $47.5 billion investment plan to achieve self-sufficiency in advanced semiconductor production.
SMIC gained 0.5% to HK$16.36, and Hua Hon Semiconductors jumped 0.4% to HK$19.86.
Alibaba Health Information Technology soared 10.4% to HK$3.40 after the company reported annual income rose 65% from a year ago in its latest financial year ending in March.
U.S. Movers: GameStop, U.S. Cellular, T-Mobile U.S., Texas Instruments
Scott Peters
28 May, 2024
New York City
GameStop jumped 21% to $23.30 after the specialty retailer said it raised $933.4 million through the sale of 45 million in a secondary offering.
United States Cellular Corp. jumped 10.3% to $47.50 after the wireless services provider agreed to be acquired by T-Mobile.
Deutsche Telekom-controlled T-Mobile agreed to pay $4.4 billion for the wireless operation of U.S. Cellular and 30% of its wireless spectrum assets.
The deal is expected to be completed in the second quarter of 2025, and T-Mobile will also enter into a new licensing agreement on more than 2,000 towers.
Texas Instruments increased 0.4% to $199.97 after activist investor Elliott Management acquired a $2,5 billion stake in the semiconductor company.
The activist investor said in a letter to the company that it should improve its cash flow to $9 a share by 2026 and urged the company to take a more flexible approach to its capital expenditure plan.
The news was first reported by CNBC, and ticker.com has viewed the electronic copy of the 13-page letter signed by several members of Elliott Management.