Market Update
U.S. Stocks Struggle to Extend an 8-Week Rally, Nike Drops 12%
Barry Adams
22 Dec, 2023
New York City
Stocks struggled in early trading, and benchmark indexes attempted to extend the market rally to eight consecutive weeks.
The yield on 10-year Treasury notes declined marginally, and investors generally stayed on the sidelines ahead of the holidays.
Crude oil prices advanced for the third week in a row on the growing worry of Houthi militant attacks on ships traveling in the Red Sea.
Moreover, Angola announced its plan to leave the OPEC+ after 16 years over a disagreement on the 2024 production quota and record U.S. daily crude oil production.
U.S. Indexes and Yields
The S&P 500 index gained 0.8% to 4,718.03, and the Nasdaq Composite increased 0.6% to 14,863.01.
The yield on 2-year Treasury notes decreased to 4.33%, 10-year Treasury notes inched lower to 3.85%, and 30-year Treasury bonds eased to 4.0%.
Crude oil prices dropped below $74 a barrel after U.S. daily production surged to a record high of 13.3 million barrels a day last week, the Energy Information Administration reported Thursday.
WTI crude oil increased $0.51 to $74.40 a barrel, and natural gas prices increased 4 cents to $2.61 a thermal unit.
Gold advanced $16.31 to $2,061.56 an ounce and extended this year's gains to 13.5%.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 101.57 and extended the previous week's loss of 1.4% and the loss of 0.9% in the year so far.
U.S. Stock Movers
Nike Inc. dropped 12.7% to $106.90 after the athletic shoe and sportswear maker lowered its annual sales growth outlook.
Revenue in the fiscal second quarter ending in November increased 1% to $13.4 billion from $13.3 billion, net income advanced $1.6 billion from $1.3 billion, and diluted earnings per share rose to $1.03 from 85 cents a year ago.
Inventories declined 14% from a year ago to $8.0 billion, reflecting a decrease in units and a sharp reversal from elevated inventories a year ago after the company discounted heavily old-style products to make way for new merchandise.
The company repurchased 11.9 million shares for $1.2 billion as a part of its $18 billion stock repurchase program for four years, starting in June 2022.
As of the end of November, the company had repurchased 65.9 million shares for $7.1 billion.
The company also announced its plan to cut $2 billion in costs over the next three years.
Foot Locker, the retailer that relies heavily on Nike products, dropped 8.9% to $29.49 after the announcement of the Nike results.
Karuna Therapeutics soared 47.4% to $317.22 after Bristol Myers agreed to pay $330 per share, or $14 billion, to acquire the maker of the schizophrenia drug KarXT.
The U.S. Food and Drug Administration has accepted KarXT for a review.
Bristol-Myers declined 1.7% to $50.36.
Europe Movers: Adidas, Air France KLM, Enquest, Hapag Lloyd, Klockner, Puma, Vinci
Inga Muller
22 Dec, 2023
Frankfurt
Benchmark indexes in Paris and Frankfurt edged lower but held firm in London.
The DAX index decreased 0.2% to 16,657.0, the CAC-40 index decreased 0.1% to 7,562.92, and the FTSE 100 index inched higher by 0.05% to 7,698.79.
The yield on 10-year German bonds decreased to 1.97%; French bonds inched lower to 2.48%; the UK gilts inched lower to 3.52%; and Italian bonds inched lower to 3.60%.
Adidas AG declined 6.5% to €182.52 and Puma SE decreased 5.9% to €50.60 after the U.S. rival Adidas lowered its revenue outlook and announced a plan to trim costs by $2 billion over the next three years.
Hapag Lloyd increased 1% to €144.30 after the shipping company said it plans to reroute 25 ships by the year's end to avoid Red Sea water lanes.
Air France KLM decreased 0.9% to €13.61 after the company said it would consider appealing the cancellation by the European Court of French state aid during the COVID-19 pandemic approved by the European Union.
Klockner & Company rose 2.8% to €6.76 after the German steel and metal distributing company said it plans to sell segments of its European commodity distribution business.
Vinci SA increased 0.4% to €114.14 after the French engineering construction company confirmed that its subsidiary Seymour Whyte was awarded a contract to modernize Cressbrook Dam in the Toowoomba region near Brisbane.
Enquest Plc soared 12.4% to 16.0 pence after the independent energy company said it agreed to sell 15% each of its Bressay field and floating production vessel in the North Sea to a unit of Viaro Energy.
European Bond Yields Hover Near One-year Low, UK Economy Shrink In Third Quarter
Bridgette Randall
22 Dec, 2023
Frankfurt
European markets traded down on the final day of the week, and investors avoided taking larger bets ahead of the Christmas holidays.
Benchmark indexes in Frankfurt and Paris edged lower but rose in London after a volatile week of trading.
Bond yields held near a one-year low, and the euro edged higher against the dollar on speculation that the U.S. Federal Reserve is more likely to cut rates before the European Central Bank pivots to a rate cut.
UK passenger Car Production Rises In November
The UK passenger car production rose 14.8% from a year ago to 91,923 units in November, the Society of Motor Manufacturers and Traders reported on Friday.
The increase in November followed the 31.6% surge in October after supply chain issues eased and the European Union delayed the tariff on electric vehicles produced in the UK until 2027.
Electric vehicles—hybrids, plug-in hybrids, and battery-operated vehicles—increased by 20% to 35,169 units and accounted for 38% of total production.
The UK economy contracted in the third quarter.
The UK economy shrank 0.1% in the third quarter from the previous quarter, the Office for National Statistics reported Friday.
The economic growth was revised downward in the second estimate after the service sector decline was revised to 0.2% from the 0.1% fall in the first estimate.
Meanwhile, manufacturing growth was revised to 0.1% from no growth and construction to 0.4% from 0.1%.
Household spending declined more than expected by 0.5% from the previous estimate of a 0.4% fall, but business investment declined by less than expected by 3.2% compared to 4.2%, and government spending was revised higher to 0.8% from the decline of 0.5%.
The decline in exports was revised lower to 0.6% from 0.5% and imports to 1% from the previous estimate of a 0.8% fall.
On an annual basis, third-quarter GDP growth was trimmed to 0.3% from the 0.6% estimate, matching the revised growth rate in the second quarter.
Europe Indexes and Yields
The DAX index decreased 0.2% to 16,657.0, the CAC-40 index decreased 0.1% to 7,562.92, and the FTSE 100 index inched higher by 0.05% to 7,698.79.
The yield on 10-year German bonds decreased to 1.97%; French bonds inched lower to 2.48%; the UK gilts inched lower to 3.52%; and Italian bonds inched lower to 3.60%.
The euro traded higher to $1.10, the British pound inched higher to $1.267, and the U.S. dollar eased to 85.56 Swiss cents.
Brent crude increased $0.71 to $80.10 a barrel, and the Dutch TTF natural gas decreased by €0.65 to €33.55 per MWh.
Europe Stock Movers
Adidas AG declined 6.5% to €182.52 and Puma SE decreased 5.9% to €50.60 after the U.S. rival Adidas lowered its revenue outlook and announced a plan to trim costs by $2 billion over the next three years.
Hapag Lloyd increased 1% to €144.30 after the shipping company said it plans to reroute 25 ships by the year's end to avoid Red Sea water lanes.
Air France KLM decreased 0.9% to €13.61 after the company said it would consider appealing the cancellation by the European Court of French state aid during the COVID-19 pandemic approved by the European Union.
Klockner & Company rose 2.8% to €6.76 after the German steel and metal distributing company said it plans to sell segments of its European commodity distribution business.
Vinci SA increased 0.4% to €114.14 after the French engineering construction company confirmed that its subsidiary Seymour Whyte was awarded a contract to modernize Cressbrook Dam in the Toowoomba region near Brisbane.
Enquest Plc soared 12.4% to 16.0 pence after the independent energy company said it agreed to sell 15% each of its Bressay field and floating production vessel in the North Sea to a unit of Viaro Energy.
India Movers: Allcargo Logistics, Allcargo Gati, GMR Infrastructure, Railtel
Arun Goswami
22 Dec, 2023
Mumbai
Stocks in Mumbai rebounded and trimmed weekly losses and investors reacted to domestic corporate news in the absence of economic releases.
The Sensex index increased 233.80 points to 71,188.05, and the Nifty index rose 113.45 points to 21,368.45.
For the week, the Sensex eased 0.2% and the Nifty decreased 0.4%.
GMR Airports Infrastructure gained 4.6% to ₹76.44 after the company signed an agreement to invest ₹675 crore in the planned airport at Bhogapuram, Andhra Pradesh.
Railtel Corporation increased 3.2% to ₹301.10 after the company won an order of ₹66.8 crore.
Allcargo Logistics gained 8.3% to ₹306.50 and Allcargo Gati advanced 1.4% to ₹140.0 after the boards of two companies agreed to restructure businesses.
Allcargo Logistics will manage the express and contract logistics business, and the international business will be spun off as a separate business as Allcargo ECU Ltd.
Allcargo Logostics shareholders will receive one-to-one additional shares in Allcargo ECU Ltd.
Allcargo Gati shareholders will receive 63 shares in Allcargo Logistics for every 10 shares held.
The latest restructuring scheme will take into account the 3-to-1 bonus approved by Allcargo Logistics shareholders.
Zomato Ltd. increased 2% to ₹129.95 after the delivery company confirmed that the company is not looking to acquire Shiprocket valued at ₹17,000 crore rupees.
Tata Motor gained 2.8% to ₹729.15, and Tata Motor DVR added 2.9% to ₹488.45 after the BSE and NSE approved the company's plan to exchange shares of Tata Motor DVR for Tata Motor.
Life Insurance Company of India, or LIC, jumped 5.4% to ₹805.0 after the Ministry of Finance granted an exemption until 2032 to meet the 25% minimum public shareholding rule.
Rebound In India Stocks Trim Weekly Losses in Sensex and Nifty
Arjun Pandit
22 Dec, 2023
Mumbai
Benchmark indexes in Mumbai and Asia advanced following the rebound in New York in overnight trading.
Market indexes were on the rise after U.S. GDP growth in the third quarter was revised slightly lower to 4.9% from the previous estimate of 5.1%.
Moreover, the weekly jobless claims increased by 2,000 to 215,000, confirming tight U.S. labor market conditions.
U.S. market indexes rebounded on speculation that weakening economic growth and a slight increase in jobless claims may convince policymakers to cut rates in 2024.
Moreover, crude oil prices are set to increase for the third week in a row due to elevated security tensions in the Red Sea, forcing more shipping companies to reroute shipments around South Africa.
The Saudi Arabia-led OPEC+ was also in the spotlight after Angola announced its plan to leave the oil cartel over a 2024 production quota disagreement.
Japan's consumer price inflation eased to 2.8% in November from 3.3% in October, the Ministry of Internal Affairs and Communication reported Friday.
Overall inflation eased to the lowest level since July 2022 after food and transportation price inflation slowed.
Meanwhile, core inflation, which excludes food but includes energy prices, slowed to 2.5% from 2.9% in the previous month but stayed above the 2% target set by the Bank of Japan.
The yen edged up slightly in Tokyo trading and traded at 142.51 against the U.S. dollar.
India Indexes and Yields
The Sensex index increased 233.80 points to 71,188.05, and the Nifty index rose 113.45 points to 21,368.45.
For the week, the Sensex eased 0.2% and the Nifty decreased 0.4%.
On the Mumbai stock exchange, 82 stocks traded at their 52-week highs and 5 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.18%, and the Indian rupee hovered near ₹83.25 against the U.S. dollar.
The gold price increased by 0.7% to ₹62,720 per ten grams, and silver edged up by 0.4% to ₹75,680 per kilo.
Crude oil increased by 1.5% to ₹6,223 per barrel, and natural gas fell by 0.1% to ₹206.80 per thermal unit.
India Stock Movers
GMR Airports Infrastructure gained 4.6% to ₹76.44 after the company signed an agreement to invest ₹675 crore in the planned airport at Bhogapuram, Andhra Pradesh.
Railtel Corporation increased 3.2% to ₹301.10 after the company won an order of ₹66.8 crore.
Allcargo Logistics gained 8.3% to ₹306.50 and Allcargo Gati advanced 1.4% to ₹140.0 after the boards of two companies agreed to restructure businesses.
Allcargo Logistics will manage the express and contract logistics business, and the international business will be spun off as a separate business as Allcargo ECU Ltd.
Allcargo Logostics shareholders will receive one-to-one additional shares in Allcargo ECU Ltd.
Allcargo Gati shareholders will receive 63 shares in Allcargo Logistics for every 10 shares held.
The latest restructuring scheme will take into account the 3-to-1 bonus approved by Allcargo Logistics shareholders.
Zomato Ltd. increased 2% to ₹129.95 after the delivery company confirmed that the company is not looking to acquire Shiprocket valued at ₹17,000 crore rupees.
Tata Motor gained 2.8% to ₹729.15, and Tata Motor DVR added 2.9% to ₹488.45 after the BSE and NSE approved the company's plan to exchange shares of Tata Motor DVR for Tata Motor.
Life Insurance Company of India, or LIC, jumped 5.4% to ₹805.0 after the Ministry of Finance granted an exemption until 2032 to meet the 25% minimum public shareholding rule.
Wall Street Stocks Rebound, U.S. Crude Oil Production Surges to a Record High, Angola Leaves OPEC+
Barry Adams
21 Dec, 2023
New York City
Stocks advanced, benchmark indexes rebounded from sharp losses in the previous session, and crude oil prices were in focus after Angola said it plans to leave the OPEC+.
Benchmark indexes rebounded more than 0.4% in Thursday's trading after weekly jobless claims held steady and third-quarter GDP growth was revised slightly lower.
The S&P 500 index and the Nasdaq Composite fell 1.5% in Wednesday's trading as investors reacted negatively to FedEx's business outlook.
Moreover, investors also booked profit ahead of the year's end after the S&P 500 index gained more than 23% and the Nasdaq Composite advanced more than 42% in the year so far.
Investors reviewed the release of the third quarter GDP growth report and the weekly jobless claim update.
Weekly Jobless Claims Hold Steady
Initial jobless claims increased by 2,000 to 205,000 in the week ending on December 16, the U.S. Bureau of Labor Statistics reported Thursday.
Moreover, continuing claims decreased by 1,000 to 1.865 million in the previous week ending on December 9.
Initial claims are near a two-month low of 203,000, indicating tight labor market conditions, and the four-week moving average decreased by 1,500 to 212,000.
Third Quarter GDP Growth Revised Lower to 4.9%
Real gross domestic product increased at an annual rate of 4.9% in the third quarter, according to the third estimate from the Bureau of Economic Analysis.
The economic growth estimate was downwardly revised from 5.2%, but ahead of the 2.1% increase in the second quarter.
The U.S. economy expanded at the fastest pace since the fourth quarter of 2021, and the latest revision was driven by the downward revision to consumer spending and imports.
Consumer spending rose at a slower pace of 3.1% from the previous estimate of 3.6%, and the increase in imports was revised lower to 4.2% from 5.2% estimated in the second quarter.
However, residential investment growth was revised higher to 6.7% from 6.2%, and government spending increase was revised higher to 5.8% from 5.5%.
U.S. Indexes and Yields
The S&P 500 index gained 0.8% to 4,718.03, and the Nasdaq Composite increased 0.6% to 14,863.01.
The yield on 2-year Treasury notes increased to 4.35%, 10-year Treasury notes inched lower to 3.86%, and 30-year Treasury bonds eased to 4.0%.
Crude oil prices dropped below $74 a barrel after U.S. daily production surged to a record high of 13.3 million barrels a day last week, the Energy Information Administration reported Thursday.
Moreover, Anglo announced it is leaving OPEC+ after disagreement with the 2024 production quota.
Angola's departure raised doubts about the oil cartel's ability to control crude oil prices in 2024 as member nations struggle with rising global supplies amid stable demand from China.
WTI crude oil decreased $0.92 to $72.39 a barrel, and natural gas prices increased 10 cents to $2.55 a thermal unit.
Gold advanced $10.86 to $2,041.79 an ounce and extended this year's gains to 13.5%.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.06 and extended the previous week's loss of 1.4% and the loss of 0.9% in the year so far.
U.S. Stock Movers
Micron Technology advanced 7.4% to $84.47 after the advanced semiconductor chipmaker reported better-than-estimated revenue and a smaller-than-expected loss in its latest quarter.
The company's forward-looking quarterly revenue outlook was also ahead of some investors' estimates.
CarMax jumped 8.5% to $80.98 after the used car retailer reported better-than-expected quarterly results.
Boeing Company increased 1.7% to $264.70 after receiving approval from a Chinese aviation regulator to resume 737 Max deliveries to Chinese airlines.
Boeing still needs approval from China's National Development and Reform Commission, according to the trade publication Air Current.
Warner Bros. Discovery increased 0.1% to $11.70, Paramount Global decreased 1.4% to $15.28, and two companies were engaged in preliminary merger talks, according to a report by CNBC.
European Bond Yields Ease to One-year Low
European markets lacked direction with a downward bias, and investors booked profit ahead of the yearend.
The DAX index and the CAC-40 index edged down 0.5% in Thursday's session but gained above 18% and 14%, respectively, in the year so far.
Investors also reviewed the latest economic data from France and the government finance update from the UK.
France Business Confidence Indicator Rises to a 5-month High
The manufacturing climate indicator in France rose to 100 in December from 99 in November, the statistical agency INSEE reported Thursday.
The index rose to a five-month high since July, after inflation continued to ease and consumer spending remained resilient.
The opinion for finished goods inventory and past production showed improvement, but the opinion on overall new orders remained unchanged.
Meanwhile, the outlook for selling prices showed a slight deterioration, and the indicator measuring perceived economic uncertainty showed a slight improvement.
UK Public Sector Borrowing Remains Elevated
Public sector borrowing in November declined from a year ago and from the previous month, but the November month borrowing was still the fourth-largest since record-keeping began in 1993, the Office for National Statistics reported Thursday.
Borrowings, excluding public sector banks, eased to £14.33 billion, a decline of £0.9 billion from a year ago and eased from £16.0 billion in October.
The central government's spending rose from £0.7 billion to a record high of £87.6 billion.
Government spending on goods and services was £33.6 billion, net social benefits were £24.2 billion, subsidies were £2.2 billion, and the interest payable on central government debt was £7.7 billion.
The central government's receipts were £77.6 billion, an increase of £3.6 billion from a year ago and the highest in November since monthly records began in 1993.
Of this £77.6 billion, tax receipts were £58.2 billion, £2.7 billion more than in November 2022, with value-added tax (VAT) receipts and income tax receipts both increasing by £1.4 billion.
Borrowing in the financial year-to-November 2023 was £116.4 billion, £24.4 billion more than in the same eight-month period last year and the second highest financial year-to-November borrowing on record, the ONS release noted.
Public sector net debt rose 1.8% to £2.67 trillion at the end of November and rose to 97.5% of the UK's gross domestic product.
Excluding the Bank of England, debt was £2.42 trillion, or about 88.3% of GDP, or £252.8 billion (or 9.2 percentage points) lower than the wider measure.
Europe Indexes and Yields
The DAX index decreased 0.3% to 16,687.42, the CAC-40 index fell 0.2% to 7,571.40, and the FTSE 100 index declined 0.3% to 7,694.73.
The yield on 10-year German bonds decreased to 1.97%; French bonds inched lower to 2.48%; the UK gilts inched lower to 3.54%; and Italian bonds inched lower to 3.60%.
The euro traded higher to $1.094, the British pound inched higher to $1.262, and the U.S. dollar eased to 86.18 Swiss cents.
Brent crude decreased $1.01 to $78.69 a barrel, and the Dutch TTF natural gas decreased by €1.02 to €34.20 per MWh.
Europe Stock Movers
Swisscom AG decreased 0.6% to CHF 505.60 after reports suggested that the telecom operator is looking to bid for Vodafone Italia.
Alstom SA declined 0.6% to €12.12, and the company emerged as the winning bidder for a €900 million contract to maintain regional rolling stock in Victoria, Australia.
Sanofi SA dropped 0.4% to €88.80 after the company said it was ending the global clinical development program of tusamitamab ravtansine to treat certain types of lung cancer after the phase 3 trial did not meet its criteria.
Eni SpA decreased 0.05% after the Italian energy company announced an investment agreement with Switzerland-based Energy Infrastructure Partners AG.
The Swiss investment company agreed to invest €0.7 billion in Eni Plentude SpA, which focuses on gas and energy distribution and manages the electric vehicle charging station network.
Artemis Alpha Trust fell 1.0% to 338.56 pence after the company reported a fiscal first-half pre-tax loss of £11.4 million.
HICL Infrastructure PLC decreased 0.5% to 136.30 pence after the investment company announced it had agreed to acquire a 3.1% stake in the A63 highway concession in France for £20 million from another shareholder.
U.S. Movers: Boeing, CarMax, Micron Technology, Paramount Global, Warner Bros Discovery
Scott Peters
21 Dec, 2023
New York City
Micron Technology advanced 7.4% to $84.47 after the advanced semiconductor chipmaker reported better-than-estimated revenue and a smaller-than-expected loss in its latest quarter.
Revenue in the fiscal first quarter ending in November increased to $4.7 billion from $4.1 billion; net loss expanded to $1.2 billion from $195 million; and diluted loss per share expanded to $1.12 from 18 cents a year ago.
The company's forward-looking quarterly revenue outlook was also ahead of some investors' estimates.
The company guided fiscal second quarter revenue around $5.3 billion and diluted loss per share around 45 cents.
CarMax jumped 8.5% to $80.98 after the used car retailer reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending in November declined 5.5% to $6.1 billion, net earnings advanced to $82 million from $37.6 million, and diluted earnings per share rose to 52 cents from 24 cents a year ago.
Total retail used vehicle unit sales declined 2.9% to 174,766 and comparable store used unit sales declined 4.1% from the prior year’s third quarter, respectively.
Higher car prices and elevated interest rates continue to make vehicle affordability challenging.
Total retail used vehicle revenues decreased 7.2% compared with the prior year’s third quarter, driven by the decrease in average retail selling price, which declined approximately $1,300 per unit, or 4.6%, as well as the decrease in retail used units sold.
Boeing Company increased 1.7% to $264.70 after receiving approval from a Chinese aviation regulator to resume 737 Max deliveries to Chinese airlines.
Boeing still needs approval from China's National Development and Reform Commission, according to the trade publication Air Current.
Warner Bros. Discovery increased 0.1% to $11.70, Paramount Global decreased 1.4% to $15.28, and two companies were engaged in preliminary merger talks, according to a report by CNBC.
Third Quarter GDP Growth Revised Lower to 4.9%
Brian Turner
21 Dec, 2023
New York City
Real gross domestic product increased at an annual rate of 4.9% in the third quarter, according to the third estimate from the Bureau of Economic Analysis.
The economic growth estimate was downwardly revised from 5.2%, but ahead of the 2.1% increase in the second quarter.
The U.S. economy expanded at the fastest pace since the fourth quarter of 2021, and the latest revision was driven by the downward revision to consumer spending and imports.
Consumer spending rose at a slower pace of 3.1% from the previous estimate of 3.6%, and the increase in imports was revised lower to 4.2% from 5.2% estimated in the second quarter.
However, residential investment growth was revised higher to 6.7% from 6.2%, and government spending increase was revised higher to 5.8% from 5.5%.
U.S. Stocks Rebounded, Real Third Quarter GDP Growth Revised Lower
Barry Adams
21 Dec, 2023
New York City
Stocks attempted a rebound after benchmark indexes fell sharply in the previous session.
The S&P 500 index and the Nasdaq Composite fell 1.5% in Wednesday's trading as investors reacted negatively to FedEx's business outlook.
Moreover, investors also booked profit ahead of the year's end after the S&P 500 index gained more than 23% and the Nasdaq Composite advanced more than 42% in the year so far.
Investors reviewed the release of the third quarter GDP growth report and the weekly jobless claim update.
Weekly Jobless Claims Hold Steady
Initial jobless claims increased by 2,000 to 205,000 in the week ending on December 16, the U.S. Bureau of Labor Statistics reported Thursday.
Moreover, continuing claims decreased by 1,000 to 1.865 million in the previous week ending on December 9.
Initial claims are near a two-month low of 203,000, indicating tight labor market conditions, and the four-week moving average decreased by 1,500 to 212,000.
Third Quarter GDP Growth Revised Lower to 4.9%
Real gross domestic product increased at an annual rate of 4.9% in the third quarter, according to the third estimate from the Bureau of Economic Analysis.
The economic growth estimate was downwardly revised from 5.2%, but ahead of the 2.1% increase in the second quarter.
The U.S. economy expanded at the fastest pace since the fourth quarter of 2021, and the latest revision was driven by the downward revision to consumer spending and imports.
Consumer spending rose at a slower pace of 3.1% from the previous estimate of 3.6%, and the increase in imports was revised lower to 4.2% from 5.2% estimated in the second quarter.
However, residential investment growth was revised higher to 6.7% from 6.2%, and government spending increase was revised higher to 5.8% from 5.5%.
U.S. Indexes and Yields
The S&P 500 index gained 0.1% to 4,740.31, and the Nasdaq Composite increased 0.4% to 14,950.07.
The yield on 2-year Treasury notes increased to 4.35%, 10-year Treasury notes inched lower to 3.86%, and 30-year Treasury bonds eased to 4.0%.
Crude oil decreased $1.34 to $72.86 a barrel, and natural gas prices increased 4 cents to $2.49 a thermal unit.
Gold advanced $7.36 to $2,036.47 an ounce and extended this year's gains to 13.5%.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.06 and extended the previous week's loss of 1.4% and the loss of 0.9% in the year so far.
U.S. Stock Movers
Micron Technology advanced 7.4% to $84.47 after the advanced semiconductor chipmaker reported better-than-estimated revenue and a smaller-than-expected loss in its latest quarter.
The company's forward-looking quarterly revenue outlook was also ahead of some investors' estimates.
CarMax jumped 8.5% to $80.98 after the used car retailer reported better-than-expected quarterly results.
Boeing Company increased 1.7% to $264.70 after receiving approval from a Chinese aviation regulator to resume 737 Max deliveries to Chinese airlines.
Boeing still needs approval from China's National Development and Reform Commission, according to the trade publication Air Current.
Warner Bros. Discovery increased 0.1% to $11.70, Paramount Global decreased 1.4% to $15.28, and two companies were engaged in preliminary merger talks, according to a report by CNBC.
Europe Movers: Alstom, Artemis Alpha, Eni, HICL Infrastructure, Sanofi, Swisscom
Inga Muller
21 Dec, 2023
Frankfurt
European market indexes traded down ,and bond yields eased to 9-month lows as investors debated the future rate path and economic outlook.
The DAX index decreased 0.5% to 16,651.01, the CAC-40 index decreased 0.5% to 7,549.27, and the FTSE 100 index declined 0.4% to 7,681.78.
The yield on 10-year German bonds decreased to 1.97%; French bonds inched lower to 2.48%; the UK gilts inched lower to 3.54%; and Italian bonds inched lower to 3.60%.
Swisscom AG decreased 0.6% to CHF 505.60 after reports suggested that the telecom operator is looking to bid for Vodafone Italia.
Alstom SA declined 0.6% to €12.12, and the company emerged as the winning bidder for a €900 million contract to maintain regional rolling stock in Victoria, Australia.
Sanofi SA dropped 0.4% to €88.80 after the company said it was ending the global clinical development program of tusamitamab ravtansine to treat certain types of lung cancer after the phase 3 trial did not meet its criteria.
Eni SpA decreased 0.05% after the Italian energy company announced an investment agreement with Switzerland-based Energy Infrastructure Partners AG.
The Swiss investment company agreed to invest €0.7 billion in Eni Plentude SpA, which focuses on gas and energy distribution and manages the electric vehicle charging station network.
Artemis Alpha Trust fell 1.0% to 338.56 pence after the company reported a fiscal first-half pre-tax loss of £11.4 million.
HICL Infrastructure PLC decreased 0.5% to 136.30 pence after the investment company announced it had agreed to acquire a 3.1% stake in the A63 highway concession in France for £20 million from another shareholder.
French Business Confidence Improved, UK Debt-GDP Ratio Increased to 97.5%
Bridgette Randall
21 Dec, 2023
Frankfurt
European markets lacked direction with a downward bias, and investors booked profit ahead of the yearend.
The DAX index and the CAC-40 index edged down 0.5% in Thursday's session but gained above 18% and 14%, respectively, in the year so far.
Investors also reviewed the latest economic data from France and the government finance update from the UK.
French Business Confidence Indicator Rises to a 5-month High
The manufacturing climate indicator in France rose to 100 in December from 99 in November, the statistical agency INSEE reported Thursday.
The index rose to a five-month high since July, after inflation continued to ease and consumer spending remained resilient.
The opinion for finished goods inventory and past production showed improvement, but the opinion on overall new orders remained unchanged.
Meanwhile, the outlook for selling prices showed a slight deterioration, and the indicator measuring perceived economic uncertainty showed a slight improvement.
UK Public Sector Borrowing Remains Elevated
Public sector borrowing in November declined from a year ago and from the previous month, but the November month borrowing was still the fourth-largest since record-keeping began in 1993, the Office for National Statistics reported Thursday.
Borrowings, excluding public sector banks, eased to £14.33 billion, a decline of £0.9 billion from a year ago and eased from £16.0 billion in October.
The central government's spending rose from £0.7 billion to a record high of £87.6 billion.
Government spending on goods and services was £33.6 billion, net social benefits were £24.2 billion, subsidies were £2.2 billion, and the interest payable on central government debt was £7.7 billion.
The central government's receipts were £77.6 billion, an increase of £3.6 billion from a year ago and the highest in November since monthly records began in 1993.
Of this £77.6 billion, tax receipts were £58.2 billion, £2.7 billion more than in November 2022, with value-added tax (VAT) receipts and income tax receipts both increasing by £1.4 billion.
Borrowing in the financial year-to-November 2023 was £116.4 billion, £24.4 billion more than in the same eight-month period last year and the second highest financial year-to-November borrowing on record, the ONS release noted.
Public sector net debt rose 1.8% to £2.67 trillion at the end of November and rose to 97.5% of the UK's gross domestic product.
Excluding the Bank of England, debt was £2.42 trillion, or about 88.3% of GDP, or £252.8 billion (or 9.2 percentage points) lower than the wider measure.
Europe Indexes and Yields
The DAX index decreased 0.5% to 16,651.01, the CAC-40 index decreased 0.5% to 7,549.27, and the FTSE 100 index declined 0.4% to 7,681.78.
The yield on 10-year German bonds decreased to 1.97%; French bonds inched lower to 2.48%; the UK gilts inched lower to 3.54%; and Italian bonds inched lower to 3.60%.
The euro traded higher to $1.094, the British pound inched higher to $1.262, and the U.S. dollar eased to 86.18 Swiss cents.
Brent crude decreased $0.06 to $79.66 a barrel, and the Dutch TTF natural gas decreased by €1.82 to €35.35 per MWh.
Europe Stock Movers
Swisscom AG decreased 0.6% to CHF 505.60 after reports suggested that the telecom operator is looking to bid for Vodafone Italia.
Alstom SA declined 0.6% to €12.12, and the company emerged as the winning bidder for a €900 million contract to maintain regional rolling stock in Victoria, Australia.
Sanofi SA dropped 0.4% to €88.80 after the company said it was ending the global clinical development program of tusamitamab ravtansine to treat certain types of lung cancer after the phase 3 trial did not meet its criteria.
Eni SpA decreased 0.05% after the Italian energy company announced an investment agreement with Switzerland-based Energy Infrastructure Partners AG.
The Swiss investment company agreed to invest €0.7 billion in Eni Plentude SpA, which focuses on gas and energy distribution and manages the electric vehicle charging station network.
Artemis Alpha Trust fell 1.0% to 338.56 pence after the company reported a fiscal first-half pre-tax loss of £11.4 million.
HICL Infrastructure PLC decreased 0.5% to 136.30 pence after the investment company announced it had agreed to acquire a 3.1% stake in the A63 highway concession in France for £20 million from another shareholder.
Movers: Allcargo Logistics, Cochin Shipyard, DOMS, Inox India, India Shelter Finance, Indian Bank, Mazagon Dock, Praveg, UltraTech Cement
Arun Goswami
21 Dec, 2023
Mumbai
Stocks in Mumbai struggled to advance after benchmark indexes plunged 1.5% in the previous session on the twin worries of rising coronavirus cases and the rate-path outlook.
The Sensex index decreased 233.80 points to 70,272.51, and the Nifty index fell 41.05 points to 21,085.09.
On the Mumbai stock exchange, 33 stocks traded at their 52-week highs and 20 stocks traded at their 52-week lows.
Zee Entertainment Enterprises rose 4.5% to ₹263.30 after Sony India agreed to discuss a possible merger extension deadline with the company.
Mazagon Dock Shipbuilders added 3.7% to ₹263.30 after the company won a ₹1,615 crore order to build six vessels from the defense ministry for coast guards.
Cochin Shipyard increased 2.9% to ₹1,266.85 after the company won a ₹488 crore contract from the defense ministry.
UltraTech Cement edged down 0.3% to ₹9,861.90 after the company agreed to acquire a 26% stake in Clean Max Terra.
Allcargo Logistics gained 3.7% to ₹282.60 after the company scheduled a 3-to-1 bonus to shareholders on record on January 2.
DOMS Industries Ltd. jumped 1.1% to ₹1,341.0 after the stationary products and arts supplies maker listed its stock and priced its initial public offering on Wednesday at v790 per share.
Inox India, or Inox CVA, priced its initial public offering at ₹660 per share and raised about ₹1,459 crore.
Inox India surged 44% to 949.70 on the first day of its trading on Thursday.
India Shelter Finance Corporation increased 1.1% to ₹549.70. The home financing company priced its initial public offering at ₹493 per share and raised ₹1,200 crore on Wednesday.
Indian Bank decreased for the second day in a row and fell 4.5% to ₹410.35 after the state-controlled bank completed the sale of 10.15 crore of institutional shares today.
Praveg Limited increased 1.4% to ₹658.0 after the company won a government order to build and manage 50 tents in the union territory of Lakshwadeep.
The company scheduled a board meeting on December 26 to evaluate fund-raising alternatives.