ticker

U.S. Movers: FedEx, Nvidia, Rivian, Volkswagen, Whirlpool

Scott Peters
26 Jun, 2024
New York City

FedEx rose 12.9% to $289.63, and the parcel delivery company reported better-than-expected revenue and adjusted earnings in its latest quarter.

Rivian soared 29% to $15.38 after the electric vehicle struck a deal with the German automaker Volkswagen AG.

Volkswagen plans to invest $1 billion in a joint venture with Rivian and increase its investment to as much as $5 billion over the next several years.

Whirlpool Corporation rose 12.8% to $98.33 on a Reuters report that the German company Bosch is considering making an offer for the home appliance maker.

Nvidia Corp. jumped 1.3% to $127.15, and the artificial intelligence chip maker extended its previous session gain of 7%.

Nvidia's market value briefly surpassed Microsoft's market cap of $3.1 trillion before edging down in last week's trading.

U.S. Major Averages Lacked Direction On Wall Street Ahead of Inflation Update

Barry Adams
26 Jun, 2024
New York City

Benchmark indexes in early trading lacked direction, and tech stocks extended gains for the second day in a row.

The S&P 500 index edged lower, but the Nasdaq Composite advanced after Nvidia extended the previous session's gain of 7%.

Broader averages have been overshadowed by the movement in Nvidia stock because the market cap-weighted S&P 500 index has been dominated by the chipmaker's $3.1 trillion valuation.

Single-family new home sales in May declined 16.5% from a year ago to an annual pace of 619,000, the U.S. Census Bureau reported Wednesday.

The home sale rate declined to the lowest pace in six months after high home prices and mortgage rates negatively affected home affordability.

On the economic front, investors are looking ahead to the release of consumer spending, income, and PCE price inflation indicator updates for May.

Investors in the U.S. are looking forward to the release of international trade balances, durable goods orders, and the third and final estimate for first quarter GDP growth.

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.03% to 5,466.33, and the Nasdaq Composite rose 0.5% to 17,775.40.

The yield on 2-year Treasury notes edged lower to 4.73%, 10-year Treasury notes increased to 4.29%, and 30-year Treasury bonds edged higher to 4.42%.

WTI crude oil decreased $0.04 to $80.78 a barrel, and natural gas prices fell 2 cents to $2.79 a thermal unit.

Gold decreased by $17.47 to $2,302.27 an ounce, and silver declined 9 cents to $28.77.

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 106.05.

U.S. Stock Movers

FedEx rose 12.9% to $289.63, and the parcel delivery company reported better-than-expected revenue and adjusted earnings in its latest quarter.

Rivian soared 29% to $15.38 after the electric vehicle struck a deal with the German automaker Volkswagen AG.

Volkswagen plans to invest $1 billion in a joint venture with Rivian and increase its investment to as much as $5 billion over the next several years.

Whirlpool Corporation rose 12.8% to $98.33 on a Reuters report that the German company Bosch is considering making an offer for the home appliance maker.

Nvidia Corp. jumped 1.3% to $127.15, and the artificial intelligence chip maker extended its previous session gain of 7%.

Nvidia's market value briefly surpassed Microsoft's market cap of $3.1 trillion before edging down in last week's trading.

Europe Movers: Checkit, Deliveroo, Energy Explorers, Gelion

Inga Muller
26 Jun, 2024
Hong Kong

European markets looked beyond election jitters and the expected dramatic shift in political power balance in the UK and France in the next eleven days.

The DAX index increased by 0.3% to 18,238.42; the CAC-40 index fell by 0.3% to 7,639.42; and the FTSE 100 index rose by 0.1% to 8,259.77.

The yield on 10-year German bonds edged higher to 2.43%. French bonds inched lower to 3.13%; the UK gilts edged higher to 4.10%; and Italian bonds increased to 3.92%.

Gelion PLC surged 51% to 28.0 pence after the Anglo-Australian battery company struck a joint development agreement with Glencore International AG.

Volkswagen AG declined 2.7% to €103.65, and the German vehicle maker announced a $5 billion investment in a joint venture with the struggling electric vehicle maker Rivian.

Checkit plc declined 3.3% to 22.25 pence after the automated monitoring system developer decided not to make an offer to acquire Crimson Tide.

Deliveroo jumped 2.7% to 130.90 pence on reports suggesting that the U.S.-based delivery company DoorDash may be interested in acquiring the company.

Energy explorers turned lower following the more than expected increase in U.S. inventories.

Shell PLC decreased 0.4% to 2,796.0 pence, and BP plc declined 0.4% to 473.65 pence.

European Bond Yields In Focus Ahead of Elections in France and the UK

Bridgette Randall
26 Jun, 2024
Frankfurt

European markets jumped higher amid election jitters, rate uncertainty, and a weak economic outlook.

Benchmark indexes in Paris, London, and Frankfurt advanced despite the growing anxieties about the upcoming elections over the next week.

Investors are bracing for a shift in the balance of power in France, as the party controlled by President Emmanuel Macron is likely to suffer significant losses.

The shift in power in the legislative assembly is also likely to slow down economic reforms and delay France's goal of lowering its budget deficit below 5% of GDP by 2027.

France's national debt is already hovering above 110% of GDP, one of the highest deficits in the world, and above the European Union average of 88.6%.

In the UK, the Conservative Party is likely to suffer severe losses in the upcoming parliamentary election scheduled for July 4.

The next government in the UK is also facing a severe jump in national debt after Prime Minister Rishi Sunak's government ramped up spending during the pandemic era, lifting the debt to 101.3% of GDP.

Europe Indexes and Yields

The DAX index increased by 0.3% to 18,238.42; the CAC-40 index fell by 0.3% to 7,639.42; and the FTSE 100 index rose by 0.1% to 8,259.77.

The yield on 10-year German bonds edged higher to 2.43%. French bonds inched lower to 3.13%; the UK gilts edged higher to 4.10%; and Italian bonds increased to 3.92%.

The euro edged lower to $1.088; the British pound inched higher to $1.266; and the U.S. dollar advanced to 89.80 Swiss cents.

Brent crude decreased $0.57 to $85.43 a barrel, and the Dutch TTF natural gas rose by €0.58 to €35.10 per MWh.

Europe Stock Movers

Gelion PLC surged 51% to 28.0 pence after the Anglo-Australian battery company struck a joint development agreement with Glencore International AG.

Volkswagen AG declined 2.7% to €103.65, and the German vehicle maker announced a $5 billion investment in a joint venture with the struggling electric vehicle maker Rivian.

Checkit plc declined 3.3% to 22.25 pence after the automated monitoring system developer decided not to make an offer to acquire Crimson Tide.

Deliveroo jumped 2.7% to 130.90 pence on reports suggesting that the U.S.-based delivery company DoorDash may be interested in acquiring the company.

Energy explorers turned lower following the more than expected increase in U.S. inventories.

Shell PLC decreased 0.4% to 2,796.0 pence, and BP plc declined 0.4% to 473.65 pence.

Nikkei 225 Index Rebounds Second Consecutive Day as Weak Yen Raises Intervention Risk

Akira Ito
26 Jun, 2024
Tokyo

Japan's two popular indexes traded higher for the second consecutive day following the rebound in tech stocks in New York.

The Nikkei 225 and the Topix indexes closed higher after the rally in tech stocks overshadowed weakness in other sectors.

Nvidia rebounded more than 6% in overnight trading in New York, supporting the advance in tech stocks in Tokyo.

The yen's weakness also contributed to the market advance, as weak currency provides an additional boost to market indexes.

The yen traded at 159.32 against the dollar, approaching a 34-year low and close to the mark that generally prompts intervention from the central bank.

Currency traders are bracing for the yen to drop to as low as 170 over the next few months, as the Bank of Japan show little urgency in lifting rates.

On the economic front, investors are looking ahead to the release of industrial output, retail sales, and the jobless rate later in the week.

Japan Stock Movers

The Nikkei 225 stock average rose 1.4% to 39,719.05, and the Topix index advanced 0.9% to 2,803.19.

Tech stocks were among the leading gainers in Tokyo following the rebound in artificial intelligence-linked stocks in New York.

Screen Holdings, SoftBank, and Tokyo Electron gained between 3% and 5%.

Advantest jumped 7.2% to ¥6,222.0, and the company said it is planning to generate annual revenue between 560 billion and 700 billion yen over the next two financial years.

Toyota Motor and Nissan Motor declined more than 1%, but Honda Motor gained 1.9%.

The weaker yen supported another advance in exporting companies, and Sony, Panasonic, Mitsubishi Electric, and Canon gained between 0.5% and 1.3%.

The yield on a 10-year Japanese government bond traded at 1.02% amid uncertain interest rates and the Bank of Japan's reluctance to raise rates in the near term.

Mitsubishi UFJ, Mizuho Financial Group, and Sumitomo Mitsui advanced between 0.3% and 1.2%.

Rising Trade Tensions with the West Weigh On China Indexes

Li Chen
26 Jun, 2024
Hong Kong

Stocks in Shanghai and Hong Kong declined amid rising tensions between the second-largest economy and the European Union.

The CSI 300 and the Hang Seng index edged lower to a four-month low as investors remained cautious ahead of the Communist Party's third plenum next week.

Foreign investors have been reducing their stakes in China-based companies after policymakers and central bankers failed to provide concrete and far-reaching measures to revive consumer and investor sentiment.

Chinese stocks are expected to trade in a tight range amid a lack of catalysts, an uneven economic recovery, rising trade tensions with the West, and a weak earnings growth outlook.

China Stock Movers

The CSI 300 index decreased 0.2% to 3,449.20, and the Hang Seng index eased 0.01% to 18,069.75.

Game developers traded higher after China permitted the release of 104 new online games in June, higher than fewer than 100 games in the previous two months.

NetEase soared 5.1% to HK $149.0, but Tencent Holdings decreased 0.6% to HK $379.80.

Property developers were in focus after a court in Hong Kong granted Shimao Group a four-week period to secure a restructuring agreement with its creditors.

Shimao Group gained 0.8% to HK$0.78.

Electric vehicle makers were in focus after Canada announced plans to start a public hearing to impose import tariffs on passenger cars made in China. The move is likely to hit BYD the hardest.

BYD Group decreased 1.5% to HK $238.40.

Among the new listings, two companies made a strong debut in Shanghai.

Aidite Technology, the maker of dental material, soared more than 90% to 85.95 yuan in Shenzhen on the first day of its trading, and Yonz Technology, the maker of photovoltaic products, jumped 55% to 35.80 yuan in Shanghai.

India Movers: CE Infosystems, DEE Development, Mazagon Dock, Sanghi Industries, UltraTech Cement, Yes Bank

Arun Goswami
26 Jun, 2024
Mumbai

Market indexes hovered near record highs amid a positive economic outlook, a stable rupee, and optimism about financial reforms in the upcoming national budget.

The Sensex index increased by 0.3% to 78,002.52, and the Nifty index fell by 0.1% to 23,696.25.

On the Mumbai stock exchange, 212 stocks traded at their 52-week highs, and 22 stocks traded at their 52-week lows.

The 5G wireless spectrum auction attracted ₹11,000 crore worth of bids from telecom operators on the first day of bidding.

UltraTech Cement jumped 1.8% to ₹11,040.75, and the company said it plans to acquire a 25% stake in the UAE-based RAKWCT, lower than the previously mentioned 31.6%.

Yes Bank decreased 0.2% to ₹23.98, and the company plans to raise additional capital through the sale of debt on August 23.

Sanghi Industries declined 4% to ₹98.15 after promoter Ravi Sanghi and Ambuja Cements planned to sell up to a 3.52% stake in the company with a floor price of ₹90 per share.

DEE Development Engineers is likely to list the company's share today, and the company's public offering of 418 crore was oversubscribed by nearly 100 times.

Mazagon Dock Shipbuilders jumped 5.4% to ₹4,195.0, and the company said that the Department of Public Enterprises awarded the company "Navratna" status, the 18th public sector company to achieve the distinction.

CE Infosystems increased 3.7%to ₹2,322.35 after reports suggested that the promoter Rakesh Kumar Varma plans to sell 0.9% stake in the company for ₹114.6 crore.

Tech Rebound Lifts Broader Market Indexes On Wall Street

Alexander Garcia
25 Jun, 2024
Miami

Investors returned to add tech stock exposure, driving the market indexes higher, and investors adjust allocations ahead to corporate quarterly results in two weeks.

Major averages on Wall Street rebounded in Tuesday's trading a day after investors rotated out of semiconductor stocks into the energy and financial services sectors.

The S&P 500 index and the Nasdaq Composite inched higher in early trading, and investors debated their corporate earnings outlook ahead of the end of the quarter this week.

Tech stocks turned volatile after Nvidia dropped 6% in the previous session and extended the 3-day selloff to more than 13%.

However, some investors are still looking for the stock to reach as high as $155 and beyond, as the company's earnings continue to surge at a rapid pace as Microsoft, Meta, Google, and Amazon make multi-billion-dollar investments in artificial intelligence infrastructure.

The Case-Shiller index, the controversial index tracking home prices in the 20 largest metropolitan areas, showed U.S. home price increase slowed to a 7.2% annual pace in April from 7.5% in March.

S&P Global reported the update on the metropolitan home price index.

Later in the week, investors are looking forward to the release of international trade balances, durable goods orders, and the third and final estimate for first quarter GDP growth.

Investors are also awaiting the release of consumer spending and income and the PCE price indicator for May, the preferred measure of inflation by the Fed’s policymakers.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 5,451.35, and the Nasdaq Composite rose 1.1% to 17,687.46.

The yield on 2-year Treasury notes edged lower to 4.74%, 10-year Treasury notes decreased to 4.25%, and 30-year Treasury bonds edged higher to 4.39%.

WTI crude oil decreased $0.56 to $81.08 a barrel, and natural gas prices fell 2 cents to $2.75 a thermal unit.

Gold decreased by $12.53 to $2,318.32 an ounce, and silver declined 63 cents to $28.18.

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 105.65.

U.S. Stock Movers

Pool Corp. declined 7.3% to $313.10 after the wholesale pool supply distributor lowered its full-year earnings outlook.

Sea Limited decreased 2.8% to $73.75, and the Singapore-based online games developer was downgraded to "neutral" from "overweight" by J.P. Morgan.

SolarEdge Technologies declined 15.8% to $28.07 after the company said it plans to raise $300 million through the sale of convertible notes expiring in 2029.

Carnival Corp. rose 5.3% to $17.27 after the cruise line operator reported stronger-than-estimated second quarter results, and the company lifted its net yield and adjusted its net income outlook for the year.

The largest cruise company also said bookings for 2025 are ahead of those for 2024.

Nvidia rebounded 3% to $121.67 after falling more than 13% in the last three trading sessions and briefly surpassing Microsoft's market cap.

In yesterday's trading, Nvidia declined more than 6%, its worst one-day decline since April, dragging down with it other semiconductor stocks and the Nasdaq Composite.

Microsoft increased 0.2% to $448.52, and the European Commission, the executive arm of the European Union, said that the software company is "abusive" bundling its office productivity software, Office 365, with messaging and collaboration software, Team.

European Markets Turn Lower Amid Rising Election Jitters In France and the UK

European markets turned lower amid election anxieties and a weak economic outlook.

Benchmark indexes in Paris and London traded down nearly 1% as the two European nations headed for elections.

The U.K.'s Conservative Party is likely to suffer significant losses as voter sentiment swings in favor of the Labour Party after running the government since 2010.

In France, the far-right and far-left parties are expected to make significant gains in the snap elections scheduled for June 30 and July 7, altering the balance of power in the legislative assembly.

Prime Minister Emmanuel Macron confirmed in a letter to the French people that he plans to stay in office and complete his term until 2027, regardless of the election outcome.

On the light day of economic news, Spain's statistical agency confirmed the economy expanded at a faster-than-estimated pace of 0.8% in the first quarter compared to the previous quarter.

In the initial estimate, Spain's GDP growth was estimated to grow at a rate of 0.7%.

Europe Indexes and Yields

The DAX index decreased by 0.8% to 18,177.62; the CAC-40 index fell by 0.6% to 7,662.43; and the FTSE 100 index fell by 0.4% to 8,247.79.

The yield on 10-year German bonds edged lower to 2.38%. French bonds inched lower to 3.09%; the UK gilts edged lower to 4.05%; and Italian bonds increased to 3.90%.

The euro edged lower to $1.071; the British pound inched higher to $1.268; and the U.S. dollar advanced to 89.39 Swiss cents.

Brent crude decreased $0.84 to $85.17 a barrel, and the Dutch TTF natural gas fell by €0.7 to €34.52 per MWh.

Europe Stock Movers

Novo Nordisk added 2.1% to DKK 1,008.80, and the Danish pharmaceutical company said it plans to invest $4.1 billion, or 27 billion Danish kroner, to build a new manufacturing plant in Clayton, North Carolina.

Airbus declined 12.3% to €130.44 after the aerospace company lowered its 2024 financial targets and announced a one-time charge of €900 million because of supply chain difficulties and unexpected costs in its space division.

After the Airbus announcement, MTU Aerospace declined 3.5% to €216.80, and Rolls Royce fell 4.5% to 450.20 pence.

Merck KGaA dropped 8.5% to €153.15 after the German pharmaceutical company canceled a late-stage trial for a cancer drug.

Saga PLC jumped 1.6% to 114.70 pence after the cruise line operator focused on the 50-year-old and older age group of adults, saying revenue in the first four months to April was strong and met management expectations.

The Yen's Decline Raises the Risk of Another Market Intervention

The weakness in the yen supported the broader market advance for the second consecutive session on an improved profit outlook for the companies in the export sector.

The Topix index soared nearly 2%, and the Nikkie 225 index advanced 1%.

Investors also looked ahead to the release of retail sales, industrial output, and jobless rate data later in the busy week of economic updates.

Market indexes in Tokyo have faced persistent selling pressure amid growing uncertainty about the Tokyo Stock Exchange's drive to convince its member companies to accelerate corporate governance reforms.

Moreover, the persistent decline in the yen is also weighing on the market. While the cheaper yen is likely to boost the bottom line of exporting companies, in the long run, the yen's weakness is likely to fuel inflation and dampen consumer spending.

The yen edged down to 159.43 against the U.S. dollar, the level that generally prompts the Bank of Japan to conduct market intervention.

The yen drifted lower after the latest Bank of Japan's policy meeting minutes showed members are divided about the future course of the rate path.

In addition, the Bank of Japan is committed to keeping purchasing Japanese government bonds at the current rate until the next meeting in July.

About a month ago, the Bank of Japan spent near $62 billion on forcing the yen back to 153 after the currency dropped to 158, a three-decade low in late April.

However, the central bank is not likely to conduct market intervention in the near future and may let the currency find its lower low, which could be around 163.

Japan Stock Movers

The Nikkei 225 stock average added 1% to 39,186.38, and the Topix index advanced 1.8% to 2,788.22.

Automobile exporters were among the leading gainers after the yen approached a 34-year low.

Toyota Motor, Nissan Motor, and Honda Motor advanced between 1% and 3%.

Mitsubishi UFJ, Mizuho Financial, and Sumitomo Mitsui Financial gained between 1% and 5%.

SoftBank, Advantest, Tokyo Electron, and Screen Holdings declined between a loss of 0.3% and a gain of 0.4%.

Bargain Hunter Returned to China Markets with Modest Expectations

Bargain hunters returned in search of attractive stocks after market indexes in Hong Kong and Shanghai declined for three days in a row.

The CSI 300 and the Hang Seng indexes retained upward bias, and investors looked for bargains in the technology, banking, and real estate sectors.

Investors have been on the defensive in the last two months amid a weak economic outlook and a lack of earnings visibility after indexes ran up in the first quarter.

Moreover, market confidence has been waning after policymakers failed to announce substantial and deep reforms that could improve consumer and investor confidence.

Foreign investors have been net sellers of Chinese stocks this month as investors lose confidence that Beijing policymakers have run out of options for reviving market confidence amid a fragile economic recovery and persistent real estate market decline.

Investors are looking forward to the Communist Party's third plenum next week, but most investors are not hoping for concrete measures to be announced after the meeting.

Chinese premier Li Qiang, in a speech delivered at an international forum in the northeast city of Dalian, reiterated the annual economic growth target of 5%.

Premier Qiang also dismissed talks of industrial overcapacity and highlighted the risks of economic decoupling from the West.

China Stock Movers

The CSI 300 index decreased 0.2% to 3,471.75 and the Hang Seng Index rose 0.5% to 18,124.80.

China Resources Land jumped 3.5% to HK$27.40, China Vanke jumped 2.2% to HK$4.97, and Longfor Group jumped 3.5% to HK$11.54.

Li Auto edged up 0.7% to HK$70.50, BYD gained 1.3% to HK$240.60, and Xpeng added 0.6% to HK$30.60.

Tencent Holdings jumped 0.4% to HK$382.0, Alibaba Group Holdings advanced 0.7% to $72.75, and Meituan jumped 2% to HK$117.80.

U.S. Major Averages Rebounded Amid High Tech Stock Valuation Worries

Barry Adams
25 Jun, 2024
New York City

Major averages on Wall Street rebounded in Tuesday's trading a day after investors rotated out of semiconductor stocks into the energy and financial services sectors.

The S&P 500 index and the Nasdaq Composite inched higher in early trading, and investors debated their corporate earnings outlook ahead of the end of the quarter this week.

The Case-Shiller index, the controversial index tracking home prices in the 20 largest metropolitan areas, showed home prices slowed to a 7.2% annual pace in April from 7.5% in March.

S&P Global reported the update on the metropolitan home price index.

Later in the week, investors are looking forward to the release of international trade balances, durable goods orders, and the third and final estimate for first quarter GDP growth.

Investors are also awaiting the release of consumer spending and income and the PCE price indicator for May, the preferred measure of inflation by the Fed’s policymakers.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.3% to 5,461.39, and the Nasdaq Composite rose 0.8% to 17,638.86.

The yield on 2-year Treasury notes edged lower to 4.74%, 10-year Treasury notes decreased to 4.25%, and 30-year Treasury bonds edged higher to 4.39%.

WTI crude oil decreased $0.46 to $81.18 a barrel, and natural gas prices fell 2 cents to $2.75 a thermal unit.

Gold decreased by $9.03 to $2,321.27 an ounce, and silver declined 39 cents to $29.15.