Market Update
U.S. and European Markets Approach Record Highs
Alexander Garcia
09 May, 2024
Miami
Stocks in New York traded higher after investors overcame morning jitters amid mixed quarterly results.
The S&P 500 index and the Nasdaq Composite edged lower by 0.2% in early trading, the yield on 10-year Treasury notes edged lower, and crude oil prices advanced.
Initial jobless claims for the week ending May 4 rose from 22,000 to 231,000, the U.S. Labor Department reported Thursday.
The initial claims for unemployment benefits rose to their highest levels since August 2023, indicating tight labor market conditions may be moderating as economic growth slows down.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,208.16, and the Nasdaq Composite rose 0.26% to 16,354,82.
The yield on 2-year Treasury notes edged lower to 4.85%, 10-year Treasury notes inched lower to 4.45%, and 30-year Treasury bonds edged lower to 4.65%.
Natural gas futures rose 5% to a four-month high on the expectations of the sustained rise in demand in the next two weeks.
Natural gas supplies has declined by 2.3 billion cubic feet over the past six days, dropping to a four-month low of 95.5 bcfd, according to the data released by the U.S. Energy Information Administration.
At the same time, electric power utilities added fewer-than-expected natural gas storage build, 79 billion cubic feet, last week.
WTI crude oil increased $0.33 to $79.31 a barrel, and natural gas prices increased 9 cents to $2.27 a thermal unit.
Gold increased by $22.58 to $2,331.26 an ounce, and silver rose 81 cents to $28.12.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.31.
U.S. Stock Movers
Warner Bros. Discovery declined 4% to $7.49 after the media company reported weaker-than-expected quarterly results.
Uber Technologies rose 0.8% to $66.90 after the company reported a loss in its latest quarter on Wednesday.
Uber stock dropped as much as 7% after the quarterly results fell short of market expectations.
Airbnb dropped 7.8% to $145.51 after the short-term rental platform operator reported better-than-expected first-quarter results, but the company's second-quarter revenue growth outlook fell short of investors' expectations.
Arm Holdings PLC declined 6.6% to $99.08 after the advanced chip designer estimated full-year revenue to range between $3.8 billion and $4.1 billion.
Robinhood Markets rose 6.7% to $19.02 after the trading platform operator reported revenue in the first quarter of $618 million and earnings per share of 18 cents, ahead of analysts' expectations.
European Markets Pause 4-day Rally. BOE Holds Rates Steady
European markets rested after advancing for consecutive sessions in a row as investors digested the latest batch of corporate results and awaited the Bank of England's rate decision.
The Bank of England held its interest rates steady for the eighth time in a row at 5.25% as the country battles persistent fuel and food price inflation and elevated service inflation.
The Bank of England estimated U.K.'s economy to grow by 0.4% in the first quarter and advance 0.2% in the second quarter, and the consumer price inflation is expected to ease to 2% in the "near term."
The projections provided by the central bank also estimated interest rate to ease to 4.5% by the second quarter of 2025.
Investors have been bidding up stocks in hopes that the European Central Bank is ready to announce its first rate cut decision at its next meeting, overlooking the weakness in consumer spending and weakening business sentiment.
The euro is likely to face more selling pressure as rate paths in the U.S. and the eurozone diverge.
Investors also reviewed the increase in China's imports in April, supporting the expectations of rising exports from the eurozone to the world's second-largest economy.
Europe Indexes and Yields
The DAX index increased by 0.9% to 18,679.71; the CAC-40 index rose by 0.7% to 8,187.65; and the FTSE 100 index inched higher by 0.3% to a new intraday record of 8,381.35.
The yield on 10-year German bonds edged down to 2.49%; French bonds inched lower to 2.99%; the UK gilts edged lower to 4.17%; and Italian bonds inched higher to 3.84%.
The euro edged higher to $1.073; the British pound inched higher to $1.249; and the U.S. dollar edged higher to 90.94 Swiss cents.
Brent crude increased $0.66 to $84.24 a barrel, and the Dutch TTF natural gas fell by €0.67 to €31.36 per MWh.
BBVA Makes Hostile Offer for Sabadell
Banco de Sabadell jumped 3.5% to €1.86 after BBVA proposed a €12.2 billion hostile takeover of the company.
BBVA declined 5.8% to €9.68 after Sabadell's board rejected the company's all-cash merger offer earlier this week.
Resource and Luxury Stocks In Focus
Telefonica increased 0.1% to €4.19 after the Spanish telecom network operator reported better-than-expected quarterly results.
Nexi increased 5.8% to €6.04 after the Italian payment processor reported better-than-expected first quarter results and launched its stock buyback program.
China-linked luxury goods makers declined despite the second-largest economy reporting rising imports in April.
LVMH fell 0.9% to €780.60, Hermes declined 0.8% to €2,287.0, and Kering SA dropped 0.9% to €328.20.
ITV gained 1.6% to 75.55 pence despite the UK-based broadcasting company reporting a decline in first quarter revenue.
BAE Systems rose 0.8% to 1,392.50 pence after the defense contractor reiterated its fiscal year 2024 outlook and delivered strong performance in the year so far.
John Wood Group was nearly unchanged at 192.90 pence after the oil services company confirmed its outlook for fiscal years 2024 and 2025.
BOJ Reiterates Accommodative Policy
Benchmark indexes in Japan lacked direction, and the yen traded in a tight range after the release of the summary of the policy meeting held in April.
Policy committee members highlighted the inflation risks from rising wages but reiterated their commitment to keeping the accommodative stance in purchasing Japanese government bonds.
Real Wages Fall In Japan for the 27th Consecutive Month
On the wage front, Japan's inflation-adjusted real wages declined for the 24th month in a row in March, according to the latest data released by the Ministry of Health, Labor, and Welfare.
Nominal cash wages, including overtime pay, increased 0.6% to 301,193 yen, or $1,940.
Nominal wages rose for the 27th month in a row, but after adjusting for inflation, they continued to decline.
The consumer price tracked for determining real wages rose 3.1% in March, significantly higher than the 0.6% rise in nominal wages.
The full-time worker's average nominal wage increased by 0.8% to 386,795 yen, and the part-time worker's advanced by 2.5% to 108,036 yen.
The total working hours per worker decreased by 2.7% from a year ago to 136.2 yen.
The latest data excludes the spring wage gains negotiated between the large companies and labor unions, and the government data showed only 20% of small and medium-sized businesses increased wages by more than 5%.
The so-called "shunto" wage negotiations, representing annual wage negotiations between the largest Japanese corporations and labor unions, generally set the tone for wage adjustments for other companies in Japan.
The Japanese yen traded around 155.70 against the dollar, slightly higher than in the previous session.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 0.1% to 38,146.21, and the Topix index added 0.4% to 2,716.69.
Leading tech companies traded sideways in choppy trading.
SoftBank fell 2.5% to ¥7,736.0, Advantest declined 0.9% to ¥5,106.0, Screen Holdings advanced 0.6% to ¥17,600.0, and Tokyo Electron dropped 3% to ¥35,210.0.
Sumitomo Mitsui Financial advanced 1.3% to ¥8,913.0, Mizuho Financial added 1.2% to ¥3,033.0, and Mitsubishi UFJ Financial gained 2.2% to ¥1,583.50.
Earnings update lifted stocks of Omron and Orix but lowered Yamato Holdings.
Omron Corp. rose 6.5% to ¥6,013.0, Orix advanced 6.5% to ¥3,426.0, and IHI jumped 8.3% to ¥4,119.0.
Yamato Holdings dropped 11.8% to ¥1,777.0.
China Markets Rebound 1%, Trim Weekly Losses
Benchmark indexes in Shanghai and Hong Kong drifted higher after China's exports rose more than expected, and investors pinned hopes regulators would follow through on promises of support measures for financial markets.
China Trade Surplus Shrinks In April
China's goods and services exports in April rose 1.5% to $292.5 billion, and imports advanced 8.4% to $220.1 billion from a year ago, respectively.
The trade surplus in April fell to $72.4 billion, compared to $86.5 billion a year ago and $58.6 billion in March.
Exports declined 7.5% and imports edged slightly lower from the previous month, respectively, the General Administration of Customs reported Thursday.
China's exports are likely to rebound in 2024 after slumping 4.6% in the previous year, indicating rising demand from the U.S. and ASEAN regions.
However, imports are still struggling amid a fragile domestic economic recovery.
Exports to the U.S. declined 1.6% in April, dropped 3.3% to the European Union, but rose 20.4% to the ASEAN region from a year ago, respectively.
China's international trade balance for the first four months was $255.7 billion, compared to $266 billion in the same period a year ago.
Exports rose 1.5% to $1.1 trillion, and imports advanced 3.2% to $842.9 billion in the first four months of 2024.
China Stock Movers
The CSI 300 index gained 1% to 3,667.50, and the Hang Seng index advanced 1.1% to 18,538.57.
The market mood was also bolstered in the hopes that more cities across China are likely to relax curb measures in support of the property market.
Hangzhou eliminated several buyer qualification requirements imposed several years ago on home purchases following a similar move by the southwest city of Chengdu.
In addition, as many as 55 cities have allowed the lowering of mortgage rates to support home sales, following the Politburo meeting in April.
Longfor Group advanced 5.7% to HK$12.16, China Vanke jumped 8.8% to HK$4.84, and China Resources Land added 3.4% to HK$30.15.
Automakers traded mixed in the hopes that rising exports will support the growth in electric vehicle makers' sales growth in the current quarter.
BYD increased 0.4% to HK$225.20, Li Auto declined 1.1% to HK$107.80, Nio added 0.4% to HK$42.25, and Xpeng advanced 0.4% to HK$32.40.
Benchmark indexes in Hong Kong soared more than 7% in April and extended gains by 4% in May in the hopes that regulatory reforms and supportive measures by the People's Bank of China will improve market confidence.
However, measures announced by the local authorities are likely to fall short of market expectations, and consumer confidence remains weak amid an uneven economic recovery and a weakening job market.
U.S. Movers: Airbnb, Arm Holdings, Robinhood Markets, Warner Bros, Wynn Resorts, Uber
Scott Peters
09 May, 2024
New York City
Warner Bros. Discovery declined 4% to $7.49 after the media company reported weaker-than-expected quarterly results.
Uber Technologies rose 0.8% to $66.90 after the company reported a loss in its latest quarter on Wednesday.
Uber stock dropped as much as 7% after the quarterly results fell short of market expectations.
Airbnb dropped 7.8% to $145.51 after the short-term rental platform operator reported better-than-expected first-quarter results, but the company's second-quarter revenue growth outlook fell short of investors' expectations.
Arm Holdings PLC declined 6.6% to $99.08 after the advanced chip designer estimated full-year revenue to range between $3.8 billion and $4.1 billion.
Robinhood Markets rose 6.7% to $19.02 after the trading platform operator reported revenue in the first quarter of $618 million and earnings per share of 18 cents, ahead of analysts' expectations.
Indexes On Wall Street Meander Amid Lackluster Corporate Results
Barry Adams
09 May, 2024
New York City
Benchmark indexes on Wall Street lacked direction after investors turned cautious following a string of weak quarterly results.
The S&P 500 index and the Nasdaq Composite edged lower by 0.2% in early trading, the yield on 10-year Treasury notes edged lower, and crude oil prices advanced.
Initial jobless claims for the week ending May 4 rose from 22,000 to 231,000, the U.S. Labor Department reported Thursday.
The initial claims for unemployment benefits rose to their highest levels since August 2023, indicating tight labor market conditions may be moderating as economic growth slows down.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.2% to 5,175.81, and the Nasdaq Composite fell 0.26% to 16,282,07.
The yield on 2-year Treasury notes edged lower to 4.85%, 10-year Treasury notes inched lower to 4.45%, and 30-year Treasury bonds edged lower to 4.65%.
WTI crude oil increased $0.55 to $79.53 a barrel, and natural gas prices increased 2 cents to $2.20 a thermal unit.
Gold increased by $14.09 to $2,322.96 an ounce, and silver rose 51 cents to $27.84.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.48.
U.S. Stock Movers
Warner Bros. Discovery declined 4% to $7.49 after the media company reported weaker-than-expected quarterly results.
Uber Technologies rose 0.8% to $66.90 after the company reported a loss in its latest quarter on Wednesday.
Uber stock dropped as much as 7% after the quarterly results fell short of market expectations.
Airbnb dropped 7.8% to $145.51 after the short-term rental platform operator reported better-than-expected first-quarter results, but the company's second-quarter revenue growth outlook fell short of investors' expectations.
Arm Holdings PLC declined 6.6% to $99.08 after the advanced chip designer estimated full-year revenue to range between $3.8 billion and $4.1 billion.
Robinhood Markets rose 6.7% to $19.02 after the trading platform operator reported revenue in the first quarter of $618 million and earnings per share of 18 cents, ahead of analysts' expectations.
Europe Movers: BAE, Banco de Sabadell, BBVA, ITV, John Wood, Nexi, Telefonica
Inga Muller
09 May, 2024
Frankfurt
European markets paused a 4-day rally, and benchmark indexes in Paris, London, and Frankfurt hovered near record highs.
The Bank of England is expected to hold interest rates amid elevated food and service sector inflation. Resource stocks advanced after China's imports rose in April.
The DAX index increased by 0.3% to 18,547.88; the CAC-40 index fell by 0.1% to 8,124.01; and the FTSE 100 index inched higher by 0.04% to a new intraday record of 8,357.51.
The yield on 10-year German bonds edged down to 2.49%; French bonds inched lower to 2.99%; the UK gilts edged lower to 4.17%; and Italian bonds inched higher to 3.84%.
Banco de Sabadell jumped 3.5% to €1.86 after BBVA proposed a €12.2 billion hostile takeover of the company.
BBVA declined 5.8% to €9.68 after Sabadell's board rejected the company's all-cash merger offer earlier this week.
Telefonica increased 0.1% to €4.19 after the Spanish telecom network operator reported better-than-expected quarterly results.
Nexi increased 5.8% to €6.04 after the Italian payment processor reported better-than-expected first quarter results and launched its stock buyback program.
Revenue in the first quarter increased 6% to €781.6 million from €737.6 million, and operating earnings rose 8.6% to €361.7 million from €333.1 million, a year ago, respectively.
The company estimated 2024 revenue to increase in mid-single digit and operating earnings to advance in mid-to-high single-digit.
The payment processing company also estimated free cash flow of €700 million in the fiscal year 2024.
China-related luxury goods makers declined despite the second-largest economy reporting rising imports in April.
LVMH fell 0.9% to €780.60, Hermes declined 0.8% to €2,287.0, and Kering SA dropped 0.9% to €328.20.
ITV gained 1.6% to 75.55 pence despite the UK-based broadcasting company reporting a decline in first quarter revenue.
BAE Systems rose 0.8% to 1,392.50 pence after the defense contractor reiterated its fiscal year 2024 outlook and delivered strong performance in the year so far.
Full-year 2024 sales are expected to rise between 10% and 12% from £25.28 billion, underlying earnings per share to advance between 6% and 8% to 63.2 pence, and free cash flow is expected to exceed £1.3 billion.
The company said it plans to pay 2023 final dividend of 18.5 pence per share, subject to shareholder approval, on June 3.
The company said it has completed over 90% of the three-year share buyback program of up to £1.5 billion, which commenced in July 2022, and the company plans to launch its next £1.5 billion stock repurchase program at the end of the current plan.
John Wood Group was nearly unchanged at 192.90 pence after the oil services company confirmed its outlook for fiscal years 2024 and 2025.
European Markets Pause 4-day Rally, Resource and Luxury Stocks In Focus
Bridgette Randall
09 May, 2024
Frankfurt
European markets rested after advancing for consecutive sessions in a row as investors digested the latest batch of corporate results and awaited the Bank of England's rate decision.
The Bank of England is widely anticipated to hold interest rates steady for the eighth time in a row as the country battles persistent fuel and food price inflation and elevated service inflation.
Investors are likely to focus on comments from Governor Andrew Bailey and the central bank's inflation outlook.
Investors have been bidding up stocks in hopes that the European Central Bank is ready to announce its first rate cut decision at its next meeting, overlooking the weakness in consumer spending and weakening business sentiment.
The euro is likely to face more selling pressure as rate paths in the U.S. and the eurozone diverge.
Investors also reviewed the increase in China's imports in April, supporting the expectations of rising exports from the eurozone to the world's second-largest economy.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,547.88; the CAC-40 index fell by 0.1% to 8,124.01; and the FTSE 100 index inched higher by 0.04% to a new intraday record of 8,357.51.
The yield on 10-year German bonds edged down to 2.49%; French bonds inched lower to 2.99%; the UK gilts edged lower to 4.17%; and Italian bonds inched higher to 3.84%.
The euro edged higher to $1.073; the British pound inched higher to $1.249; and the U.S. dollar edged higher to 90.94 Swiss cents.
Brent crude increased $0.66 to $84.24 a barrel, and the Dutch TTF natural gas fell by €0.67 to €31.36 per MWh.
Europe Stock Movers
Banco de Sabadell jumped 3.5% to €1.86 after BBVA proposed a €12.2 billion hostile takeover of the company.
BBVA declined 5.8% to €9.68 after Sabadell's board rejected the company's all-cash merger offer earlier this week.
Telefonica increased 0.1% to €4.19 after the Spanish telecom network operator reported better-than-expected quarterly results.
Nexi increased 5.8% to €6.04 after the Italian payment processor reported better-than-expected first quarter results and launched its stock buyback program.
China-linked luxury goods makers declined despite the second-largest economy reporting rising imports in April.
LVMH fell 0.9% to €780.60, Hermes declined 0.8% to €2,287.0, and Kering SA dropped 0.9% to €328.20.
ITV gained 1.6% to 75.55 pence despite the UK-based broadcasting company reporting a decline in first quarter revenue.
BAE Systems rose 0.8% to 1,392.50 pence after the defense contractor reiterated its fiscal year 2024 outlook and delivered strong performance in the year so far.
John Wood Group was nearly unchanged at 192.90 pence after the oil services company confirmed its outlook for fiscal years 2024 and 2025.
Real Wages Fall In Japan for the 27th Consecutive Month; BOJ Reiterates Accommodative Policy
Akira Ito
09 May, 2024
Tokyo
Benchmark indexes in Japan lacked direction, and the yen traded in a tight range after the release of the summary of the policy meeting held in April.
Policy committee members highlighted the inflation risks from rising wages but reiterated their commitment to keeping the accommodative stance in purchasing Japanese government bonds.
On the wage front, Japan's inflation-adjusted real wages declined for the 24th month in a row in March, according to the latest data released by the Ministry of Health, Labor, and Welfare.
Nominal cash wages, including overtime pay, increased 0.6% to 301,193 yen, or $1,940.
Nominal wages rose for the 27th month in a row, but after adjusting for inflation, they continued to decline.
The consumer price tracked for determining real wages rose 3.1% in March, significantly higher than the 0.6% rise in nominal wages.
The full-time worker's average nominal wage increased by 0.8% to 386,795 yen, and the part-time worker's advanced by 2.5% to 108,036 yen.
The total working hours per worker decreased by 2.7% from a year ago to 136.2 yen.
The latest data excludes the spring wage gains negotiated between the large companies and labor unions, and the government data showed only 20% of small and medium-sized businesses increased wages by more than 5%.
The so-called "shunto" wage negotiations, representing annual wage negotiations between the largest Japanese corporations and labor unions, generally set the tone for wage adjustments for other companies in Japan.
The Japanese yen traded around 155.70 against the dollar, slightly higher than in the previous session.
The Nikkei 225 Stock Average decreased 0.1% to 38,146.21, and the Topix index added 0.4% to 2,716.69.
Leading tech companies traded sideways in choppy trading.
SoftBank fell 2.5% to ¥7,736.0, Advantest declined 0.9% to ¥5,106.0, Screen Holdings advanced 0.6% to ¥17,600.0, and Tokyo Electron dropped 3% to ¥35,210.0.
Sumitomo Mitsui Financial advanced 1.3% to ¥8,913.0, Mizuho Financial added 1.2% to ¥3,033.0, and Mitsubishi UFJ Financial gained 2.2% to ¥1,583.50.
Earnings update lifted stocks of Omron and Orix but lowered Yamato Holdings.
Omron Corp. rose 6.5% to ¥6,013.0, Orix advanced 6.5% to ¥3,426.0, and IHI jumped 8.3% to ¥4,119.0.
Yamato Holdings dropped 11.8% to ¥1,777.0.
China's International Trade Highlights Uneven Recovery at Home and Abroad, Stock Indexes Advance
Li Chen
09 May, 2024
Hong Kong
Benchmark indexes in Shanghai and Hong Kong drifted higher after China's exports rose more than expected.
China's goods and services exports in April rose 1.5% to $292.5 billion, and imports advanced 8.4% to $220.1 billion from a year ago, respectively.
The trade surplus in April fell to $72.4 billion, compared to $86.5 billion a year ago and $58.6 billion in March.
Exports declined 7.5% and imports edged slightly lower from the previous month, respectively, the General Administration of Customs reported Thursday.
China's exports are likely to rebound in 2024 after slumping 4.6% in the previous year, indicating rising demand from the U.S. and ASEAN regions.
However, imports are still struggling amid a fragile domestic economic recovery.
Exports to the U.S. declined 1.6% in April, dropped 3.3% to the European Union, but rose 20.4% to the ASEAN region from a year ago, respectively.
China's international trade balance for the first four months was $255.7 billion, compared to $266 billion in the same period a year ago.
Exports rose 1.5% to $1.1 trillion, and imports advanced 3.2% to $842.9 billion in the first four months of 2024.
The CSI 300 index gained 1% to 3,667.50, and the Hang Seng index advanced 1.1% to 18,538.57.
The market mood was also bolstered in the hopes that more cities across China are likely to relax curb measures in support of the property market.
Hangzhou eliminated several buyer qualification requirements imposed several years ago on home purchases following a similar move by the southwest city of Chengdu.
In addition, as many as 55 cities have allowed the lowering of mortgage rates to support home sales, following the Politburo meeting in April.
Longfor Group advanced 5.7% to HK$12.16, China Vanke jumped 8.8% to HK$4.84, and China Resources Land added 3.4% to HK$30.15.
Automakers traded mixed in the hopes that rising exports will support the growth in electric vehicle makers' sales growth in the current quarter.
BYD increased 0.4% to HK$225.20, Li Auto declined 1.1% to HK$107.80, Nio added 0.4% to HK$42.25, and Xpeng advanced 0.4% to HK$32.40.
Benchmark indexes in Hong Kong soared more than 7% in April and extended gains by 4% in May in the hopes that regulatory reforms and supportive measures by the People's Bank of China will improve market confidence.
However, measures announced by the local authorities are likely to fall short of market expectations, and consumer confidence remains weak amid an uneven economic recovery and a weakening job market.
Shanghai Indexes Jump 1% After Investors Return from 5-day Holidays
Li Chen
06 May, 2024
Hong Kong
After a week of holidays, investors retuned with a positive mood and bid up stocks in Shanghai.
Stock market indexes in Shanghai advanced more than 1% after investors played catch with a flood of earnings, rising global markets, and improving market sentiment in Asia.
Investors also bid up stocks in the hopes that Chinese regulators, the People's Bank of China, and governments will follow through with market-supportive measures released last month.
The CSI 300 index soared 1.4% to 3,654.68, and the Hang Seng Index increased 0.2% to 18,513.01.
The Hang Seng index advanced for the ninth month in a row as bargain hunters and state-controlled entities stepped up buying stocks.
Tencent Holdings added 1.1% to HK$3,654.68, Baidu Inc. advanced 1.5% to HK$113.41, and Alibaba Group jumped 0.05% to HK$79.20.
Financial stocks declined and did not participate in the market rally in Hong Kong.
Ping An, Bank of China, China Construction Bank, ICBC, and Hong Kong Shanghai Bank fell between 0.3% and 1.4%.
Electric vehicle markers were among the most actively traded stocks in Monday's trading.
Li Auto, Xpeng, and BYD declined between 1% and 4%, but Nio rose 2.5%.
Elsewhere in Asia, market indexes in Mumbai lacked direction amid a flood of positive earnings, and in Sydney, they advanced 0.7%, tracking gains in Friday's trading.
Late evening on Friday, the U.S. monthly net new job gains slowed in April to 175,000 from the revised gain of 315,000 as the job market cooled.
In Europe, market indexes advanced after the jobless rate held steady at 6.5% for the third month in a row in March.
In Monday's trading, Asian markets opened higher, but after three hours of trading, they traded sideways, tracking gains in Friday's trading in New York.
Financial markets in Tokyo and Seoul are closed for a holiday.
U.S. Nonfarm Payrolls Expanded at a Slower Pace In April
Brian Turner
03 May, 2024
Washington, D.C.
The U.S. economy added 175,000 net new jobs in April, the Bureau of Labor Statistics reported Friday.
In April, employment expanded in healthcare by 56,000, social assistance by 31,000, transportation and warehousing by 22,000, retail trade by 20,000, and construction by 9,000.
The government, at all levels, added only 8,000 jobs after averaging an increase of 55,000 over the last 12 months.
The total nonfarm payroll employment for February was revised down by 34,000, from 270,000 to 236,000, and for March, it was revised up by 12,000, from 303,000 to 315,000.
With these revisions, employment in February and March combined is 22,000 lower than previously reported.
Average hourly earnings in April increased by 0.2% to 7 cents to $34.75, and over the last 12 months, average hourly earnings rose by 3.9%.
The annual pace of wage gains has been slowing since a 4.5% rise in January, 4.3% in February, and 4.1% in March.
The U.S. economy added an average of 254,000 net new jobs in the first quarter, significantly higher than the long-term average addition of 170,000.
U.S. Movers: Apple, Amgen, Expedia
Scott Peters
03 May, 2024
New York City
Apple Inc. soared 6% to $183.44 after the maker of popular iPhone devices reported better-than-expected sales and earnings in its fiscal second quarter.
Revenue in the fiscal second quarter ending in March declined to $90.7 billion from $94.8 billion, net income fell to $23.6 billion from $24.2 billion, and diluted earnings per share increased to $1.53 from $1.52 a year ago.
Net sales in the Americas declined to $37.3 billion from $37.8 billion; in the European Union, they rose to $24.1 billion from $23.9 billion; in Greater China, they decreased to $16.3 billion from $17.8 billion; in Japan, they fell to $6.2 billion from $7.2 billion; and in the rest of Asia Pacific, they eased to $6.7 billion from $8.2 billion a year ago, respectively.
The company's board of directors increased its quarterly cash dividend by 4% to 25 cents per share, payable on May 16 to shareholders on record on May 13.
The company also announced a whopping $110 billion stock repurchase plan.
Expedia decreased 12% to $119.52 after the online travel booking platform reported better-than-expected revenue in the first quarter.
However, stock fell sharply after the company estimated full-year revenue growth in the range of mid- to high single-digits, disappointing some investors.
Amgen soared 14% to $316.11 after the biotech company reported better-than-expected quarterly results and said it would no longer pursue the development of an experimental weight-loss pill.
However, the company plans to take injectable obesity drugs into a phase 3 trial, following the encouraging results in phase two.
U.S. Averages Jump 1% After Softer Jobs Report In April
Barry Adams
03 May, 2024
New York City
Benchmark indexes on Wall Street advanced in early trading as investors reacted positively to the softer jobs report in April.
The S&P 500 index and the Nasdaq Composite advanced 0.2% in Friday's trading as investors looked forward to the release of April's nonfarm payroll data later in the day.
The U.S. economy added 175,000 net new jobs in April, the Bureau of Labor Statistics reported Friday.
In April, employment expanded in healthcare by 56,000, social assistance by 31,000, transportation and warehousing by 22,000, retail trade by 20,000, and construction by 9,000.
The total nonfarm payroll employment for February was revised down by 34,000, from 270,000 to 236,000, and for March, it was revised up by 12,000, from 303,000 to 315,000.
With these revisions, employment in February and March combined is 22,000 lower than previously reported.
Average hourly earnings in April increased by 0.2% to 7 cents to $34.75, and over the last 12 months, average hourly earnings rose by 3.9%.
The U.S. economy added an average of 254,000 net new jobs in the first quarter, significantly higher than the long-term average addition of 170,000.
Benchmark indexes are likely to close higher in the week after volatile trading when the Federal Reserve held its interest rate steady.
The central bank ruled out rate increases but stressed that more evidence of cooler inflation is needed before rates could be lowered.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,071.59, and the Nasdaq Composite rose 0.2% to 15,863,16.
The yield on 2-year Treasury notes edged higher to 4.88%, 10-year Treasury notes inched lower to 4.55%, and 30-year Treasury bonds edged lower to 4.71%.
WTI crude oil increased $0.41 to $79.36 a barrel, and natural gas prices increased 3 cents to $2.06 a thermal unit.
Gold decreased by $6.96 to $2,297.05 an ounce, and silver fell 23 cents to $26.44.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.18.
U.S. Stock Movers
Apple Inc. soared 6% to $183.44 after the maker of popular iPhone devices reported better-than-expected sales and earnings in its fiscal second quarter.
Revenue in the fiscal second quarter ending in March declined to $90.7 billion from $94.8 billion, net income fell to $23.6 billion from $24.2 billion, and diluted earnings per share increased to $1.53 from $1.52 a year ago.
Net sales in the Americas declined to $37.3 billion from $37.8 billion; in the European Union, they rose to $24.1 billion from $23.9 billion; in Greater China, they decreased to $16.3 billion from $17.8 billion; in Japan, they fell to $6.2 billion from $7.2 billion; and in the rest of Asia Pacific, they eased to $6.7 billion from $8.2 billion a year ago, respectively.
The company's board of directors increased its quarterly cash dividend by 4% to 25 cents per share, payable on May 16 to shareholders on record on May 13.
The company also announced a whopping $110 billion stock repurchase plan.
Expedia decreased 12% to $119.52 after the online travel booking platform reported better-than-expected revenue in the first quarter.
However, stock fell sharply after the company estimated full-year revenue growth in the range of mid- to high single-digits, disappointing some investors.
Amgen soared 14% to $316.11 after the biotech company reported better-than-expected quarterly results and said it would no longer pursue the development of an experimental weight-loss pill.
However, the company plans to take injectable obesity drugs into a phase 3 trial.
Europe Movers: Credit Agricole, Daimler Truck, Future. Krones, Henkel, Societe Generale, Trainline
Inga Muller
03 May, 2024
Frankfurt
European markets edged higher in Friday's trading and trimmed weekly losses in the hopes of multiple rate cuts in 2024.
The DAX index increased by 0.5% to 17,988.51; the CAC-40 index rose by 0.6% to 7,965.24; and the FTSE 100 index inched higher by 0.5% to a new intraday record of 8,214.37.
The yield on 10-year German bonds edged down to 2.53%; French bonds inched lower to 3.03%; the UK gilts edged lower to 4.28%; and Italian bonds inched higher to 3.85%.
Henkel AG increased 6.6% to €78.78 after the German household products maker lifted its sales and earnings outlook for 2024.
Daimler Truck Holding decreased 4.9% to €40.49 after the German truck maker reported a decline in global sales in the first quarter.
Krones AG declined 1.6% to €122.60 despite the German packaging and bottling equipment maker reporting an increase in first-quarter profit and confirming its full-year 2024 outlook.
Societe Generale declined 3.8% to €24.80 after the French bank reported a smaller-than-expected 22% decline in earnings and reiterated its 2024 outlook.
Credit Agricole rose 3.3% to €15.10 after the French bank reported a 55% surge in first-quarter earnings, beating market expectations by a wide margin.
Future plc increased 1.5% to 708.74 pence, and the UK-based publishing company appointed Sharjeel Suleman as the company's chief financial officer.
Trainline jumped 6.6% to 320.97 pence after an online train and bus ticketing platform operator reported an increase in earnings and announced its plans to expand its stock buyback activities over the next year.
European Indexes Trimmed Weekly Losses, Eurozone Unemployment Held Steady at Record Low
Bridgette Randall
03 May, 2024
Frankfurt
European markets advanced in Friday's trading and trimmed weekly losses after investors debated future rate paths and reacted to the latest corporate quarterly results.
Benchmark indexes in Frankfurt and Paris edged after European Central Bank policymaker Yannis Stournaras estimated three rate cuts in the remainder of 2024.
Moreover, benchmark indexes in London advanced after service sector growth accelerated in April, S&P Global reported in its final estimate on Friday.
Eurozone Jobless Rate Held Steady at Record Low
The jobless rate in the eurozone held at a record low of 6.5% in March, matching the rate in the previous three months, Eurostat reported Friday.
The number of jobless declined by 94,000 to 11.09 million, and the youth unemployment rate, those younger than 25 seeking jobs, decreased to 14.1% from 14.4% in February.
Among the four largest economies in the currency union, Spain led with the highest jobless rate of 11.7%, followed by France with 7.3%, Italy with 72%, and Germany with 3.2%.
UK Service Growth Accelerated In April
The UK Service Purchasing Managers' Index increased to 55.0 in April from 53.1 in March, higher than the preliminary estimate of 54.9.
Investors also overlooked the decline in industrial output in France, mainly because of the decline in food and beverage manufacturing.
France's Industrial Output Edged Lower
France's industrial output declined 0.3% from the previous month in March, reversing the 0.2% increase in February, the statistical agency INSEE reported Friday.
France's industrial production declined in six of the last twelve months, indicating an uneven economic recovery amid elevated inflation and weak export demand.
However, industrial production rose 0.7% from a year ago in March.
Europe Indexes and Yields
The DAX index increased by 0.5% to 17,988.51; the CAC-40 index rose by 0.6% to 7,965.24; and the FTSE 100 index inched higher by 0.5% to a new intraday record of 8,214.37.
The yield on 10-year German bonds edged down to 2.53%; French bonds inched lower to 3.03%; the UK gilts edged lower to 4.28%; and Italian bonds inched higher to 3.85%.
The euro edged higher to $1.074; the British pound inched higher to $1.255; and the U.S. dollar edged higher to 90.69 Swiss cents.
Brent crude increased $0.23 to $83.90 a barrel, and the Dutch TTF natural gas fell by €0.33 to €30.57 per MWh.
Europe Stock Movers
Henkel AG increased 6.6% to €78.78 after the German household products maker lifted its sales and earnings outlook for 2024.
Daimler Truck Holding decreased 4.9% to €40.49 after the German truck maker reported a decline in global sales in the first quarter.
Krones AG declined 1.6% to €122.60 despite the German packaging and bottling equipment maker reporting an increase in first-quarter profit and confirming its full-year 2024 outlook.
Societe Generale declined 3.8% to €24.80 after the French bank reported a smaller-than-expected 22% decline in earnings and reiterated its 2024 outlook.
Credit Agricole rose 3.3% to €15.10 after the French bank reported a 55% surge in first-quarter earnings, beating market expectations by a wide margin.
Future plc increased 1.5% to 708.74 pence, and the UK-based publishing company appointed Sharjeel Suleman as the company's chief financial officer.
Trainline jumped 6.6% to 320.97 pence after an online train and bus ticketing platform operator reported an increase in earnings and announced its plans to expand its stock buyback activities over the next year.
Hang Seng Index Extends to Bull Territory Amid Hopes of Supportive Measures
Li Chen
03 May, 2024
Hong Kong
Market indexes in Hong Kong advanced and inched further into bull territory as investors searched for bargains in tech and financial services stocks.
The Hang Seng index increased 1.1% to 18,413.79, and the Hang Seng Tech index jumped 2% after Apple announced a $100 billion stock repurchase plan.
Financial markets in mainland China are closed for a holiday, and markets are scheduled to reopen on Monday after the end of the Golden Week holidays.
The Hang Seng index is up more than 20% from its low reached on January 22, amid a slew of positive earnings and regulatory measures to revive market sentiment.
Market sentiment was further bolstered after China's top policymakers announced additional measures in a meeting held on April 30.
Policymakers are looking for banks to lower reserve ratios, encourage the People's Bank of China to lower rates, and provide additional financing to top property developers.
Policymakers are seeking to take steps that support real economic activities, such as increasing lending to small and medium businesses, which could lead to more job creation.
The Hang Seng index extended weekly gains to 6% and extended this year's increase to close to 10%, leading other large financial markets.
Tech stocks extended gains following the rally in tech stocks in overnight trading in New York.
Tencent Holdings gained 1% to HK$363.20, Alibaba Group advanced 3.5% to HK$78.75, and Meituan jumped 0.8% to HK$119.30.
Banks and financial services stocks traded mixed but extended this week's gains.
Bank of China decreased 0.3% to HK$119.30, China Construction Bank added 0.8% to HK$5.17, and HSBC Bank was unchanged at HK$69.25.
Chinese automakers generally traded higher, and electric vehicle makers inched higher after reporting mixed vehicle sales in April two days ago.
BYD added 0.6% to HK$226.40, Li Auto jumped 2.7% to $110.50, Xpeng increased 4.2% to HK$35.60, and Geely Automotive added 1.1% to HK$9.91.