U.S. Stocks Trend Lower After Earnings Growth Worries Resurface

Barry Adams
02 Jan, 2024
New York City

Stocks faced selling pressure on the first day of trading in the new year, and Treasury yields edged slightly higher.

The tech-heavy Nasdaq Composite index dropped as much as 1.9% after mega-cap tech stocks eased following a surge in 2023 as investors worried about future earnings growth.

Apple Inc. dropped as much as 3%, Microsoft declined 3%, Amazon fell 1.6%, and Meta Platforms decreased 2.6%.

The broad rally lifted the S&P 500 index by 24% and the Nasdaq Composite by 44% in 2023, surprising many market analysts.

Stocks staged a strong recovery in 2023, powered by the fourth quarter rally in tech stocks and benchmark indexes, the S&P 500 index and the Nasdaq Composite, which gained for nine consecutive weeks in a row.

The surge in market indexes in 2023 has only increased the price-to-earnings multiple of stocks, reflecting slower earnings growth across many industries.

Despite the steady decline in overall inflation in the last nine months, prices are still rising at a faster pace than preferred by policymakers, raising the prospects of interest rates staying higher for longer in 2024.

In today's trading, oil complex stocks rose amid rising tensions in the Middle East, and attacks on merchant ships in the Red Seas stoked fears of a wider war in the region. and potentially disrupting oil supplies.

U.S. Indexes and Yields

In December, the S&P 500 advanced 4.7% and the Nasdaq Composite gained 6.1%, and in the fourth quarter, the indexes gained 11.6% and 14.2%, respectively.

The Nasdaq index was up 44.2% in 2023 before Friday's trading, its best annual gain since 2003.

The S&P 500 index decreased 0.7% to 4,734.76, and the Nasdaq Composite dropped 1.9% to 14,732.89.

The yield on 2-year Treasury notes increased to 4.32%, 10-year Treasury notes inched higher to 3.92%, and 30-year Treasury bonds eased to 4.06%.

WTI crude oil decreased $1.31 to $70.29 a barrel, and natural gas prices decreased 10 cents to $2.56 a thermal unit.

Gold decreased $5.11 to $2,068.22 an ounce, and the yellow metal price rose 13% in 2023.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.08.

U.S. Stock Movers

Tesla increased 0.03% to $248.57, and the electric vehicle maker shipped more than expected vehicles in the fourth quarter.

Vehicle shipments in the fourth quarter increased to 484,507, increasing the total for 2023 to 1,808,581.

Tesla shipped 405,278 electric vehicles in the fourth quarter of 2022 and delivered 1,313,851 in 2022.

Tech stocks were on the defensive after Barclays analyst Tim Long downgraded Apple Inc., citing weakening unit sales of iPhones, iPads, Macs, and wearable devices.

Apple declined 3.2% to $186.43 following the stock downgrade, which dragged down other leading tech companies.

Microsoft fell 1.9% to $368.87, Amazon.com decreased $148.90, and Meta dropped 3.3% to $342.10.

European Markets Trade Higher

European markets advanced on the first day of trading in the new year, and investors focused on rising tensions in the Red Sea and debated future interest rate paths.

Market indexes in Frankfurt, Paris, and London edged higher, and bond yields in the eurozone and in the UK increased.

Crude oil jumped as much as 1.5% after the U.S. Navy destroyed three boats operated by Houthi rebels and Iran dispatched warships in the region.

Moreover, tensions also rose between Israel and Hamas as both parties refused to negotiate a settlement.

Eurozone Bank Lending Growth Stayed Weak In November 

Bank lending to households slowed in November, but loans to non-financial institutions were unchanged, the European Central Bank reported Monday.

Household lending in the eurozone rose 0.5% from a year ago to Є6.87 trillion, the slowest pace since May 2015.

Lending to corporations was unchanged in the month after falling 0.3% in the previous month.

Overall lending, household and non-financial corporate lending, was steady at 0.4% in November, suggesting a significant slowdown after the European Central Bank launched its aggressive rate hike campaign.

Europe Indexes and Yields

The DAX index increased 0.1% to 16,769.39, the CAC-40 index fell 0.2% to 7,530.86, and the FTSE 100 index inched lower by 0.2% to 7,721.52.

The yield on 10-year German bonds increased to 2.07%; French bonds inched higher to 2.60%; the UK gilts edged up to 3.64%; and Italian bonds advanced to 3.74%.

The euro edged lower to $1.098, the British pound inched lower to $1.268, and the U.S. dollar eased to 84.87 Swiss cents.

Brent crude decreased $1.34 to $75.68 a barrel, and the Dutch TTF natural gas decreased by €1.78 to €30.58 per MWh.

Europe Stock Movers

Danone SA rose 0.8% to €59.16 after the French dairy company said it had agreed to sell its organic dairy business in the U.S. to a private equity firm, Platinum Equity.

Energy companies traded higher amid rising tensions in the Red Sea after Iran sent warships into the region after the U.S. Navy destroyed three Houthi rebel-controlled ships.

BP plc jumped 1% to 470.85 pence, and Shell PLC advanced 0.02% to 2,572.0 pence.

TotalEnergies SE increased 1.4% to €61.73, and the company said it commenced production at an offshore platform located in the Santos Basin off the coast of Rio de Janeiro, Brazil.

Hapag Llyod gained 1.6% to €138.90 after the German shipping company said on Friday that it plans to divert shipping away from Suez Canal Red Sea shipping lanes for security reasons.

AP Moeller-Maersk gained 4.5% to DKK 12,550.0, and the Danish shipping company temporarily suspended shipping through the Red Sea following an attack on one of its ships by Yemeni rebels.

Plexus Holdings PLC dropped 19.5% to 16.95 pence after the company expanded its license agreement with Schlumberger NV for $5.2 million.

The new intellectual property agreement provides a royalty-free perpetual-use license to Schlumberger for a wider set of  applications but also frees the company to pursue other clients and markets to license its metal seal technology while continuing to operate in the surface wellhead production sector.

Weak Tech Stocks Drag Nasdaq Down 1.8%, Crude Oil In Focus

Barry Adams
02 Jan, 2024
New York City

Stocks fell sharply on Wall Street on the first day of trading in the new year, and Treasury yields edged slightly higher.

The tech-heavy Nasdaq Composite index dropped as much as 1.8% after mega-cap tech stocks eased following a surge in 2023.

Apple Inc. dropped as much as 3%, Microsoft declined 3%, Amazon fell 1.6%, and Meta Platforms decreased 2.6%.

Stocks staged a strong recovery in 2023, powered by the rally in tech stocks in the fourth quarter. 

The S&P 500 index and the Nasdaq Composite gained for nine consecutive weeks in a row in the hopes that the Federal Reserve is more likely to lower rates before March. 

The broad rally lifted the S&P 500 index by 24% and the Nasdaq Composite by 44% in 2023, surprising many market analysts.

The surge in market indexes in 2023 has only increased the price-to-earnings multiple of stocks, reflecting slower earnings growth across many industries.

Despite the steady decline in overall inflation in the last nine months, prices are still rising at the faster pace than preferred by policymakers, raising the prospects of interest rates staying higher for longer in 2024.

In today's trading oil complex, stocks rose amid rising tensions in the Middle East and attacks on merchant ships in the Red Seas.

U.S. Indexes and Yields

In December, the S&P 500 advanced 4.7% and the Nasdaq Composite gained 6.1%, and in the fourth quarter, the indexes gained 11.6% and 14.2%, respectively.

The Nasdaq index was up 44.2% in 2023 before Friday's trading, its best annual gain since 2003.

The S&P 500 index decreased 0.8% to 4,733.50, and the Nasdaq Composite decreased 1.7% to 14,763.38.

The yield on 2-year Treasury notes increased to 4.32%, 10-year Treasury notes inched higher to 3.92%, and 30-year Treasury bonds eased to 4.06%.

WTI crude oil decreased $0.27 to $71.37 a barrel, and natural gas prices decreased 9 cents to $2.57 a thermal unit.

Gold decreased $5.11 to $2,068.22 an ounce, and the yellow metal price rose 13% in 2023.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.08.

U.S. Stock Movers

Tesla increased 0.03% to $248.57, and the electric vehicle maker shipped more than expected vehicles in the fourth quarter.

Vehicle shipments in the fourth quarter increased to 484,507, increasing the total for 2023 to 1,808,581.

Tesla shipped 405,278 electric vehicles in the fourth quarter of 2022 and delivered 1,313,851 in 2022.

Tech stocks were on the defensive after Barclays analyst Tim Long downgraded Apple Inc., citing weakening unit sales of iPhones, iPads, Macs, and wearable devices.

Apple declined 3.2% to $186.43 following the stock downgrade, which dragged down other leading tech companies.

Microsoft fell 1.9% to $368.87, Amazon.com decreased $148.90, and Meta dropped 3.3% to $342.10.

Europe Movers: Danone, Hapag-Llyod, Maersk, Plexus Holdings, TotalEnergies

Inga Muller
02 Jan, 2024
Frankfurt

European stocks traded higher on the first day of the new year, and oil complex stocks were in focus amid rising tensions in the Middle East and the Red Sea. 

The DAX index increased 0.5% to 16,832.64, the CAC-40 index advanced 0.2% to 7,554.32, and the FTSE 100 index inched higher by 0.01% to 7,733.74.

The yield on 10-year German bonds increased to 2.07%; French bonds inched higher to 2.60%; the UK gilts edged up to 3.64%; and Italian bonds advanced to 3.74%.

Danone SA rose 0.8% to €59.16 after the French dairy company said it had agreed to sell its organic dairy business in the U.S. to a private equity firm, Platinum Equity.

Energy companies traded higher amid rising tensions in the Red Sea after Iran sent warships into the region after the U.S. Navy destroyed three Houthi rebel-controlled ships.

BP plc jumped 1% to 470.85 pence, and Shell PLC advanced 0.02% to 2,572.0 pence.

TotalEnergies SE increased 1.4% to €61.73, and the company said it commenced production at an offshore platform located in the Santos Basin off the coast of Rio de Janeiro, Brazil.

Hapag Llyod gained 1.6% to €138.90 after the German shipping company said on Friday that it plans to divert shipping away from Suez Canal Red Sea shipping lanes for security reasons.

AP Moeller-Maersk gained 4.5% to DKK 12,550.0, and the Danish shipping company temporarily suspended shipping through the Red Sea following an attack on one of its ships by Yemeni rebels.

Plexus Holdings PLC dropped 19.5% to 16.95 pence after the company expanded its license agreement with Schlumberger NV for $5.2 million.

The new intellectual property agreement provides a royalty-free perpetual-use license to Schlumberger for a wider set of  applications but also frees the company to pursue other clients and markets to license its metal seal technology while continuing to operate in the surface wellhead production sector.

European Markets Trade Higher, Bank Lending Growth Stayed Weak In the Eurozone

Bridgette Randall
02 Jan, 2024
Frankfurt

European markets advanced on the first day of trading in the new year, and investors focused on rising tensions in the Red Sea and debated future interest rate paths.

Market indexes in Frankfurt, Paris, and London edged higher, and bond yields in the eurozone and in the UK increased.

Crude oil jumped as much as 1.5% after the U.S. Navy destroyed three boats operated by Houthi rebels and Iran dispatched warships in the region.

Moreover, tensions also rose between Israel and Hamas as both parties refused to negotiate a settlement.

Eurozone Bank Lending Growth Stayed Weak In November 

Bank lending to households slowed in November, but loans to non-financial institutions were unchanged, the European Central Bank reported Monday.

Household lending in the eurozone rose 0.5% from a year ago to Є6.87 trillion, the slowest pace since May 2015.

Lending to corporations was unchanged in the month after falling 0.3% in the previous month.

Overall lending, household and non-financial corporate lending, was steady at 0.4% in November, suggesting a significant slowdown after the European Central Bank launched its aggressive rate hike campaign.

Europe Indexes and Yields

The DAX index increased 0.5% to 16,832.64, the CAC-40 index advanced 0.2% to 7,554.32, and the FTSE 100 index inched higher by 0.01% to 7,733.74.

The yield on 10-year German bonds increased to 2.07%; French bonds inched higher to 2.60%; the UK gilts edged up to 3.64%; and Italian bonds advanced to 3.74%.

The euro edged lower to $1.098, the British pound inched lower to $1.268, and the U.S. dollar eased to 84.87 Swiss cents.

Brent crude increased $1.62 to $78.65 a barrel, and the Dutch TTF natural gas decreased by €0.63 to €31.73 per MWh.

Europe Stock Movers

Danone SA rose 0.8% to €59.16 after the French dairy company said it had agreed to sell its organic dairy business in the U.S. to a private equity firm, Platinum Equity.

Energy companies traded higher amid rising tensions in the Red Sea after Iran sent warships into the region after the U.S. Navy destroyed three Houthi rebel-controlled ships.

BP plc jumped 1% to 470.85 pence, and Shell PLC advanced 0.02% to 2,572.0 pence.

TotalEnergies SE increased 1.4% to €61.73, and the company said it commenced production at an offshore platform located in the Santos Basin off the coast of Rio de Janeiro, Brazil.

Hapag Llyod gained 1.6% to €138.90 after the German shipping company said on Friday that it plans to divert shipping away from Suez Canal Red Sea shipping lanes for security reasons.

AP Moeller-Maersk gained 4.5% to DKK 12,550.0, and the Danish shipping company temporarily suspended shipping through the Red Sea following an attack on one of its ships by Yemeni rebels.

Plexus Holdings PLC dropped 19.5% to 16.95 pence after the company expanded its license agreement with Schlumberger NV for $5.2 million.

The new intellectual property agreement provides a royalty-free perpetual-use license to Schlumberger for a wider set of  applications but also frees the company to pursue other clients and markets to license its metal seal technology while continuing to operate in the surface wellhead production sector.

Movers: Alembic Pharma, Bharti Airtel, Coal India, Eicher Motors, LIC, Lemon Tree, Zomato

Arun Goswami
02 Jan, 2024
Mumbai

Stocks in Mumbai traded down on valuation worries, and investors were also on the defensive after coronavirus cases rose across the nation.

The Sensex index decreased 610.37 points to 71,661.31, and the Nifty index eased 159.50 points to 21,582.40.

On the Mumbai stock exchange, 281 stocks traded at their 52-week highs and 12 stocks traded at their 52-week lows.

Life Insurance Corporation decreased 1.7% to ₹843.90 after the Mumbai tax office demanded a tax of ₹803 crore for the financial year 2018.

Zomato gained 1.9% to ₹126.80 after the delivery service company said it received record daily orders on New Year's Eve on its app.

Bharti Airtel increased 0.6% to ₹1,018.95, and the company agreed to acquire a 97.1% stake in Beetel Teletech.

Eicher Motors declined 3.2% to ₹3,909.0 after the company said sales of 2-wheeler vehicles declined in December.

Coal India increased 2.7% to ₹392.0 after the company said coal production increased 8.2% in December.

Alembic Pharmaceuticals soared 5% to ₹805.50 after the company received approval for various generic products from the U.S. Food and Drug Administration.

Lemon Tree Hotels soared 10.5% to a record high ₹131.55 on the expectations of higher earnings in the current fiscal year.  

JBM Auto advanced 4.5% to ₹1,692.0 and extended a 3-day advance to 25% after the company said it is on track to deliver 2,000 e-buses in the fiscal year 2024. 

Valuation Worries Drag Down Nifty and Sensex In New Year

Arjun Pandit
02 Jan, 2024
Mumbai

Stocks in Mumbai traded down on the first day of a new year, and benchmark indexes in Asia dropped as much as 1%.

The nifty and the Sensex indexes traded lower, and large-cap and mid-cap stocks were among the leading losers.

In Asia-wide trading, benchmark indexes traded down in cautious trading after diverging views on China's manufacturing sector growth.

The official index tracking China's manufacturing sector showed growth, but a private survey showed ongoing weakness in the sector.

The official index places higher emphasis on large and government-controlled companies, whereas the private index is more broadly diversified.

Market indexes in Shanghai and Hong Kong decreased 1%, and in Korea, they advanced 0.4%.

Japan's markets are shut for an extended holiday in the new year. 

India Indexes and Yields

The Sensex index decreased 610.37 points to 71,661.31, and the Nifty index eased 159.50 points to 21,582.40.

On the Mumbai stock exchange, 281 stocks traded at their 52-week highs and 12 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds held firm at 7.20%, and the Indian rupee hovered near ₹83.31 against the U.S. dollar.

The gold price increased by 0.2% to ₹63,448 per ten grams, and silver rose by 0.4% to ₹74,662 per kilo.

Crude oil increased by 1% to ₹6,088 per barrel, and natural gas fell by 4% to ₹225.20 per thermal unit.

India Stock Movers

Life Insurance Corporation decreased 1.7% to ₹843.90 after the Mumbai tax office demanded a tax of ₹803 crore for the financial year 2018.

Zomato gained 1.9% to ₹126.80 after the delivery service company said it received record daily orders on New Year's Eve on its app.

Bharti Airtel increased 0.6% to ₹1,018.95, and the company agreed to acquire a 97.1% stake in Beetel Teletech.

Eicher Motors declined 3.2% to ₹3,909.0 after the company said sales of 2-wheeler vehicles declined in December.

Coal India increased 2.7% to ₹392.0 after the company said coal production increased 8.2% in December.

Alembic Pharmaceuticals soared 5% to ₹805.50 after the company received approval for various generic products from the U.S. Food and Drug Administration.

U.S. Movers: Alphabet, Fisker, Nvidia

Scott Peters
29 Dec, 2023
New York City

Benchmark indexes struggled to keep momentum on the final day of the week and the year, but market indexes are set to log solid gains in December, in the fourth quarter, and in 2023.

In December, the S&P 500 advanced 4.7% and the Nasdaq Composite gained 6.1%, and in the fourth quarter, the indexes gained 11.6% and 14.2%, respectively.

The Nasdaq index was up 44.2% in 2023 before Friday's trading, its best annual gain since 2003.

In Thursday's trading, the S&P 500 index gained 0.04% to 4,783.35, and the Nasdaq Composite decreased 0.02% to 15,095.14.

The yield on 2-year Treasury notes increased to 4.30%, 10-year Treasury notes inched higher to 3.88%, and 30-year Treasury bonds eased to 4.02%.

Fisker Inc. jumped 13% to $1.70 after the company said vehicle deliveries soared 300% in the fourth quarter from the previous quarter on the rising demand for its electric SUV.

Total deliveries increased to 4,700 in the fourth quarter at an average price of $69,000, and the company produced 10,142 vehicles in 2023.

The company began deliveries in Canada in December, and the electric vehicle maker now operates in 12 countries.

Nvidia increased 0.8% to $499.26 after the chipmaker launched a slower version of its gamin chip that met U.S. regulations for deliveries to its customers in China.

Alphabet Inc. decreased 0.01% to $140.21 after the company's Google agreed to settle a lawsuit sought by customers alleging that the search engine secretly tracked users browsing in private mode.

On February 5, 2024, the lawyers of both parties are expected to present settlement terms are expected to be presented to U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California for his formal approval.

The lawsuit claimed to cover "millions" of users since June 1, 2016 and sought at least $5,000 damages per user for violating unauthorized federal wire tapping and privacy laws of California.

Mega-cap Stocks Powered U.S. Market Rally In 2023

Barry Adams
29 Dec, 2023
New York City

Stocks meandered on the final day of the week and 2023 in thin trading.

The S&P 500 index hovered near its record high, and the Nasdaq Composite edged higher, powered by the rise in mega-cap tech stocks.

Stocks on Wall Street staged a sharp turnaround in 2023 after the prospect of a much-foreseen recession faded and the Federal Reserve signaled the end of an aggressive rate hike.

over the last two months, market sentiment was further bolstered after several measures of inflation confirmed a steady decline following the weakening in crude oil prices from a year ago. 

Moreover, the Federal Reserve, at the end of its final meeting in December, signaled possible multiple rate cuts in 2024, provided inflation continues its downward path to the target rate of 2%.

Investors have grown more confident over the last nine weeks in the Federal Reserve's ability to maneuver the economy to a so-called soft landing after the economy continued to expand at a healthy pace and labor market conditions remained tight but not inflationary.

U.S. Indexes and Yields

Benchmark indexes continued their advance in December, in the fourth quarter, and throughout the year.

In December, the S&P 500 advanced 4.7% and the Nasdaq Composite gained 6.1%, and in the fourth quarter, the indexes gained 11.6% and 14.2%, respectively.

The Nasdaq index was up 44.2% in 2023 before Friday's trading, its best annual gain since 2003.

In Thursday's trading, the S&P 500 index gained 0.04% to 4,783.35, and the Nasdaq Composite decreased 0.02% to 15,095.14.

The yield on 2-year Treasury notes increased to 4.30%, 10-year Treasury notes inched higher to 3.88%, and 30-year Treasury bonds eased to 4.02%.

WTI crude oil increased $0.82 to $72.57 a barrel, and natural gas prices decreased 3 cents to $2.51 a thermal unit.

Gold decreased $5.50 to $2,061.45 an ounce and extended this year's gains to 13.0%.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 101.35.

U.S. Stock Movers

Fisker Inc. jumped 13% to $1.70 after the company said vehicle deliveries soared 300% in the fourth quarter from the previous quarter on the rising demand for its electric SUV.

Total deliveries increased to 4,700 in the fourth quarter at an average price of $69,000, and the company produced 10,142 vehicles in 2023.

The company began deliveries in Canada in December, and the electric vehicle maker now operates in 12 countries.

Nvidia increased 0.8% to $499.26 after the chipmaker launched a slower version of its gamin chip that met U.S. regulations for deliveries to its customers in China.

Alphabet Inc. decreased 0.01% to $140.21 after the company's Google agreed to settle a lawsuit sought by customers alleging that the search engine secretly tracked users browsing in private mode.

On February 5, 2024, the lawyers of both parties are expected to present settlement terms are expected to be presented to U.S. District Judge Yvonne Gonzalez Rogers in Oakland, California for his formal approval.

The lawsuit claimed to cover "millions" of users since June 1, 2016 and sought at least $5,000 damages per user for violating unauthorized federal wire tapping and privacy laws of California.

European Markets Register Solid Annual Gains In 2023

Bridgette Randall
29 Dec, 2023
Frankfurt

Market indexes across Europe advanced on the final day of trading in 2023.

Benchmark indexes in Frankfurt and Paris registered solid gains in 2023 on the hopes that major central banks in the U.S. and Europe are more likely to cut interest rates in 2024.

In thin trading, benchmark indexes advanced and extended weekly gains, led by a 0.4% rise in Frankfurt, a 0.3% gain in London, and a 0.02% increase in Paris.

In 2023, the DAX index gained 19%, the CAC-40 index jumped 14.6%, and the FTSE 100 index increased 2.5%.

On the economic front, Spain's overall consumer price index edged lower to 3.1% in December from 3.2% in the previous month, the National Statistics Institute reported Friday.

The core rate of inflation, which excludes food and energy prices, eased to 3.8% from 4.5% in the previous month and fell to the lowest level since March 2022.

Europe Indexes and Yields

The DAX index increased 0.3% to 16,747.17, the CAC-40 index advanced 0.3% to 7,558.56, and the FTSE 100 index inched higher by 0.2% to 7,734.97.

The yield on 10-year German bonds increased to 2.0%; French bonds inched higher to 2.62%; the UK gilts edged up to 3.57%; and Italian bonds advanced to 3.65%.

The euro edged lower to $1.10, the British pound inched lower to $1.27, and the U.S. dollar eased to 83.82 Swiss cents.

Brent crude increased $0.37 to $77.49 a barrel, and the Dutch TTF natural gas decreased by €0.15 to €32.95 per MWh.

Europe Stock Movers

Energy stocks advanced after crude oil prices rebounded in volatile trading.

Shell Plc, BP Plc, and TotalEnergies gained between 0.3% and 0.5%.

Banks traded mixed in the eurozone and in London.

UniCredit SpA and Deutsche Bank advanced 0.3%, but Societe Generale, Barclays, and Raiffeisen Bank declined between 0.2% and 0.4%, and UBS Group added 0.4%.

Automakers traded mixed, and investors debated how European automakers are likely to compete with rising global competition from leading Chinese electric vehicle makers.

China-based BYD is likely to lead global electric vehicle sales in 2024, surpassing the current leader, Tesla.

Volkswagen Group decreased 0.2%, Mercedes Benz Group added 0.6%, Renault SA declined 0.1%, Peugeot Invest dropped 0.4%, and Stellantis NV added 0.2%.

Movers: Oil Companies, RBL Bank, Railtel, Tata Coffee, Tata Consumer Products

Arun Goswami
29 Dec, 2023
Mumbai

Popular market indexes traded down on the final trading day of 2023, but the Sensex and the Nifty indexes are set to advance 18% in the calendar year.

The Sensex index decreased 302.07 points to 72,108.31, and the Nifty index eased 89.25 points to 21,690.45.

On the Mumbai stock exchange, 152 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.

Tata Coffee Limited, Tata Consumer Products Limited, and its wholly owned subsidiary Tata Consumer Products Beverages and Food are expected to be effective January 1, 2024.

TCPL will exchange one share for every 22 shares held in TCL for the company's plantation business.

For the remaining businesses, TCPL will issue 14 shares for every 55 shares held in TCL.

After the completion of the merger, TCL shareholders will effectively receive 10 shares of TCPL in exchange for every three shares held.

Tata Coffee increased 3.7% to ₹319.70, and Tata Consumer Products advanced 3.5% to ₹1,077.45.

RBL Bank increased 2.5% to ₹274.85 after the Reserve Bank of India granted mutual funds controlled by ICICI Prudential to acquire as much as a 10% stake in the lender.

Oil companies were in focus after crude oil prices dropped as much as 3% in the international markets and on speculation that the central government is looking to lower retail prices at petrol pump stations.

Reliance Industries decreased 0.6% to ₹2,589.10, Indian Oil declined 2.3% to ₹130.10, Bharat Petroleum fell 2.4% to ₹453.75, and Hindustan Petroleum dropped 4% to ₹399.80.

Railtel Corporation jumped 5.5% to ₹309.40 after the company won a 120 crore order from the South Central Railway Company.

Stocks Turn Lower, RBI Releases Bank Stress Test Review

Arjun Pandit
29 Dec, 2023
Mumbai

Stocks in Mumbai faced selling pressure after rising for five days in a row amid mixed global market sentiment.

The Sensex and the Nifty indexes declined 0.4%, and investors avoided small and mid-cap stocks in Friday's trading.

The two popular indexes are still up 1.5% for the week and advanced for the eighth week in a row after positive economic growth and weakening inflation supported investor enthusiasm.

Market indexes are set to rise for the eighth week in the last nine weeks as the year 2023 closes, and the Sensex index advanced 18% and the Nifty index gained 19.3% in 2023.

Investors also reviewed the latest financial stability report released by the Reserve Bank of India. 

RBI Stress Test Shows Resilient Domestic Banking System

"The Indian economy and the domestic financial system remain resilient after the completion of their stress test ending in September.

"Strong macroeconomic fundamentals, healthy balance sheets of financial institutions, moderating inflation, improving external sector position, and continuing fiscal consolidation" are supporting the resilience of the domestic financial system.

The gross non-performing asset ratio continued to decline to a multi-year low of 3.2%, and the net non-performing asset ratio eased to 0.8% at the end of September.

The capital to risk-weighted assets ratio, or CRAR, and the common equity tier 1 ratio,or CET 1, of commercial banks stood at 16.8% and 13.7%, respectively.

India Indexes and Yields

The Sensex index decreased 302.07 points to 72,108.31, and the Nifty index eased 89.25 points to 21,690.45.

On the Mumbai stock exchange, 152 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds held firm at 7.20%, and the Indian rupee hovered near ₹83.27 against the U.S. dollar.

The gold price decreased by 0.2% to ₹63,250 per ten grams, and silver fell by 0.98% to ₹74,228 per kilo.

Crude oil decreased by 0.8% to ₹5,999 per barrel, and natural gas fell by 0.3% to ₹211.60 per thermal unit.

India Stock Movers

Tata Coffee Limited, Tata Consumer Products Limited, and its wholly owned subsidiary Tata Consumer Products Beverages and Food are expected to be effective January 1, 2024.

TCPL will exchange one share for every 22 shares held in TCL for the company's plantation business.

For the remaining businesses, TCPL will issue 14 shares for every 55 shares held in TCL.

After the completion of the merger, TCL shareholders will effectively receive 10 shares of TCPL in exchange for every three shares held.

Tata Coffee increased 3.7% to ₹319.70, and Tata Consumer Products advanced 3.5% to ₹1,077.45.

RBL Bank increased 2.5% to ₹274.85 after the Reserve Bank of India granted mutual funds controlled by ICICI Prudential to acquire as much as a 10% stake in the lender.

Oil companies were in focus after crude oil prices dropped as much as 3% in the international markets and on speculation that the central government is looking to lower retail prices at petrol pump stations.

Reliance Industries decreased 0.6% to ₹2,589.10, Indian Oil declined 2.3% to ₹130.10, Bharat Petroleum fell 2.4% to ₹453.75, and Hindustan Petroleum dropped 4% to ₹399.80.

Railtel Corporation jumped 5.5% to ₹309.40 after the company won a 120 crore order from the South Central Railway Company.

S&P 500 Index Trades Near Record High as Mega Cap Tech Stocks Powered Rally Continues

Barry Adams
28 Dec, 2023
New York City

Stock market indexes on Wall Street were little changed in Thursday's trading, and investors reviewed the latest job market and pending home sales data.

The S&P 500 index is trading near its record high, and the Nasdaq Composite is set to register its best annual gain since 2003.

Stocks have been on the upswing for the last eight weeks in a row on the bets that the federal reserve has wider latitude in navigating inflation to its target level of 2% while keeping the economy growing at a healthy annual pace of near 2%.

The tricky maneuver, known as soft landing, is hard to achieve, but the Federal Reserve is more likely to engineer such a feat in 2024 because consumer spending is resilient and labor market conditions are still healthy.

Moreover, the steady economic expansion is also powering corporate earnings growth and supporting the stock market advance.

Initial Weekly Jobless Claims Rise 

Initial jobless claims for the week ending on December 23 rose by 12,000 to 218,000, the U.S. Department of Labor reported Thursday.

The previous week's level was revised up by 1,000 to 206,000 and the 4-week moving average was 212,000, a decrease of 250 from the previous week's revised average.

The previous week's average was revised up by 250 from 212,000 to 212,250.

Continuing claims during the week ending December 16 were 1,875,000, an increase of 14,000 from the previous week's revised level.

The previous week's level was revised down by 4,000 from 1,865,000 to 1,861,000. The 4-week moving average was 1,864,500, a decrease of 12,500 from the previous week's revised average.

The previous week's average was revised down by 1,000 from 1,878,000 to 1,877,000.

Pending Home Sales Declined In November 

Pending home sales in November were unchanged from the previous month, the National Association of Realtors reported Thursday.

The pending home sales index declined 1.2% in November, matching the revised rate in October, indicating a weak rebound in demand for homes despite the easing of mortgage rates in the month.

Pending transactions were down 5.2% from a year ago.

The Northeast, Midwest, and West posted monthly gains in transactions, while the South recorded a loss.

All four U.S. regions registered year-over-year declines in transactions.

U.S. Indexes and Yields

Benchmark indexes continued their advance in December, in the fourth quarter, and throughout the year.

In December, the S&P 500 advanced 4.0% and the Nasdaq Composite gained 6%, and in the fourth quarter, the indexes gained 12% and 14%, respectively.

The Nasdaq index is up 44%, its best annual gain since 2003.

In Wednesday's trading, the S&P 500 index gained 0.03% to 4,768.13, and the Nasdaq Composite increased 0.02% to 15,041.07.

The yield on 2-year Treasury notes increased to 4.26%, 10-year Treasury notes inched higher to 3.81%, and 30-year Treasury bonds eased to 3.97%.

WTI crude oil decreased $0.91 to $73.19 a barrel, and natural gas prices increased 2 cents to $2.46 a thermal unit.

Gold decreased $1.03 to $2,076.13 an ounce and extended this year's gains to 14.6%.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 100.83.

U.S. Stock Movers

Apple Inc. increased 0.3% to $193.65 after the popular electronic gadget maker won temporary relief from the U.S. government ban on the sale of some Apple Watch models.

General Motors declined 0.2% to $36.0, and the automaker sued the San Francisco government to recover $108 million paid over the last seven years despite having no presence or employees in the city.

Europe Movers: Banks, Energy Stocks, Mining Stocks, Skanska, Vestas

Inga Muller
28 Dec, 2023
Frankfurt

European markets rested near their recent highs, and investors debated the rate path, the economic outlook in the currency union, and the prospects of global export growth amid a weak economic rebound in China.

The DAX index decreased 0.2% to 16,714.39, the CAC-40 index declined 0.2% to 7,562.36, and the FTSE 100 index inched lower by 0.07% to 7,718.97.

The yield on 10-year German bonds decreased to 1.92%; French bonds inched lower to 2.44%; the UK gilts inched lower to 3.48%; and Italian bonds inched higher to 3.52%.

Banks, financial services, and automakers struggled in the final week of trading.

Renault, Mercedes-Benz, Volkswagen, and Stellantis declined between 0.1% and 0.7%.

UniCredit, Deutsche Bank, Banco Santander, Societe Generale, and Barclays Bank declined between 0.2% and 0.6%.

Energy companies declined after Brent crude oil prices eased below $80 a barrel and leading shipping companies returned to the Red Sea shipping lanes despite the elevated tensions in the Middle East.

BP Plc declined 0.3% to 465.83 pence, Shell Plc decreased 0.3% to 2,548.0 pence, TotalEnergies dropped 1.3% to €61.64, and Repsol SA eased 1.4% to €13.61.

Mining companies lacked direction in thin trading, and base metal prices showed little movement on the persistent demand growth worries in China.

Glencore, Antofagasta, and Anglo American traded sideways in a tight trading range.

Vestas Wind System rose 1.8% to DKK 213.85 and extended gains for the sixth session in a row after the company won an order to supply 1.1 GW of wind turbines in the United States.

Skanska AB jumped 0.4% to SEK 183.40 after the company won a $147 million contract from the U.S. Navy for the National Oceanic and Atmospheric Administration.

European Markets Hover Near Recent Highs, Brent Oil Price Drops Below $80

Bridgette Randall
28 Dec, 2023
Frankfurt

European markets witnessed marginal losses in thin trading, and the euro edged higher against the U.S. dollar.

Benchmark indexes traded near recent highs as investors supported the bets for rate cuts by major central banks in the U.S. and Europe early next year.

The Federal Reserve has indicated the possibility of rate cuts in 2024, but the European Central Bank has pushed back, citing elevated and persistent inflation.

Despite policymakers at the European Central Bank indicating the need for higher rates for longer, investors have been bidding up stocks in the hope that the steady decline in inflation over the last nine months may convince central bankers to cut rates earlier than expected.

The euro and the pound continued to edge higher against the U.S. dollar, and both currencies traded at five-month highs.

The DAX index is up 19%, and the CAC 40 index has gained 14.7% in the year so far, despite the sluggish economic outlook and elevated inflation across the currency union and in the U.K.

Europe Indexes and Yields

The DAX index decreased 0.2% to 16,714.39, the CAC-40 index declined 0.2% to 7,562.36, and the FTSE 100 index inched lower by 0.07% to 7,718.97.

The yield on 10-year German bonds decreased to 1.92%; French bonds inched lower to 2.44%; the UK gilts inched lower to 3.48%; and Italian bonds inched higher to 3.52%.

The euro traded higher to $1.11, the British pound inched higher to $1.28, and the U.S. dollar eased to 83.49 Swiss cents.

Crude oil prices declined for the second day in a row and extended the 2-day loss to 2.5% after U.S. oil inventories rose more than expected to 1.84 million barrels last week, the largest increase in five weeks.

Moreover, U.S.-led maritime patrolling also facilitated the return of major oil companies to Red Sea shipping lanes.

Brent crude decreased $0.20 to $79.34 a barrel, and the Dutch TTF natural gas decreased by €1.92 to €33.60 per MWh.

Europe Stock Movers

Banks, financial services, and automakers struggled in the final week of trading.

Renault, Mercedes-Benz, Volkswagen, and Stellantis declined between 0.1% and 0.7%.

UniCredit, Deutsche Bank, Banco Santander, Societe Generale, and Barclays Bank declined between 0.2% and 0.6%.

Energy companies declined after Brent crude oil prices eased below $80 a barrel and leading shipping companies returned to the Red Sea shipping lanes despite the elevated tensions in the Middle East.

BP Plc declined 0.3% to 465.83 pence, Shell Plc decreased 0.3% to 2,548.0 pence, TotalEnergies dropped 1.3% to €61.64, and Repsol SA eased 1.4% to €13.61.

Mining companies lacked direction in thin trading, and base metal prices showed little movement on the persistent demand growth worries in China.

Glencore, Antofagasta, and Anglo American traded sideways in a tight trading range.

Vestas Wind System rose 1.8% to DKK 213.85 and extended gains for the sixth session in a row after the company won an order to supply 1.1 GW of wind turbines in the United States.

Skanska AB jumped 0.4% to SEK 183.40 after the company won a $147 million contract from the U.S. Navy for the National Oceanic and Atmospheric Administration.

Movers: Azad Engineering, HUDCO, KPI Green, RBZ Jewellers, Zomato

Arun Goswami
28 Dec, 2023
Mumbai

Benchmark indexes on Dalal Street traded at new intra-day highs in a broad rally. 

The Sensex index increased 137.95 points to 72,176.38, and the Nifty index rose 41.40 points to 21,696.15.

On the Mumbai stock exchange, 266 stocks traded at their 52-week highs and 13 stocks traded at their 52-week lows.

Among the widely held stocks, Asian Paints, Bajaj Auto, and Dr. Reddy's Labs were among the decliners.

Reliance Industries, HDFC Bank, Coal India, Trent, Bajaj FinServ, Mahindra &Mahindra, SBI Life, Hero Motocorp, and NTPC traded higher.

Zomato decreased 3% to ₹123.20 after the delivery company received ₹402 crore demand for unpaid GST from the regulatory authorities.

Housing & Urban Development Corp. soared 17% to ₹134.15 after the company signed an investment agreement worth 14,500 crore with the Gujarat government.

Azad Engineering increased to ₹714.20 after the company priced its initial public offering at ₹524 per share.

KPI Green Energy advanced 4.9% to ₹1,341.45 after the company board is scheduled to meet on December 30 to consider a bonus share issue to shareholders.

RBZ Jewellers Ltd. gained 5% to ₹110.23 after the company listed on Wednesday its initial public offering at ₹100 per share and raised ₹100 crore.