ticker

The yield on 2-year Treasury notes edged higher to 4.20%, 10-year Treasury notes inched higher to 4.30%, and 30-year Treasury bonds inched higher to 4.50%.

Microsoft Corp. declined 4.8% to $411.89 after the software company reported strong quarterly results, but the company's revenue outlook for the current quarter fell short of investor expectations.

Microsoft estimated revenue in the fiscal second quarter to range between $68.1 billion and $69.1 billion.

Booking Holdings increased 6.3% to $4,745.43 after the online reservation company's adjusted earnings in the latest quarter surpassed market expectations.

Starbucks Corp. increased 2.4% to $95.94 after the coffee chain operator reported sharply lower-than-expected revenue and earnings in its latest quarter amid demand weakness in the U.S. and China.

Global comparable same-store sales plunged 7% in the fiscal fourth quarter.

Uber Technologies dropped 9.9% to $71.77 after the ride-hailing service provider reported strong quarterly earnings but gross bookings disappointed investors.

Carvana Co. jumped 20.4% to $249.39 after the used car dealer reported sharply higher sales and earnings.

The company also lifted its full-year earnings outlook, and added results are expected to surpass the high end of its previous estimate.

S&P 500 and Nasdaq Between 1% and 2% After Big Tech Outlook Disappoints Investors

Barry Adams
31 Oct, 2024
New York City

Stock market indexes on Wall Street eased after big tech earnings fell short of market expectations.

The S&P 500 index fell 0.8% and the Nasdaq Composite declined 1.3% following disappointing announcements from Microsoft and Meta Platforms.

Investors also reacted to the latest quarter results from Uber Technologies, eBay, Roku, Starbucks, Carvana, and Booking Holdings.

On the economic front, the Personal Consumption Expenditure Price Index rose by 0.2% from the previous month in September, following a 0.1% increase in the previous month, the U.S. Bureau of Economic Analysis reported Thursday.

The Core PCE index, which excludes food and energy prices, accelerated to a five-month high of 0.3% from the upwardly revised 0.2% in the previous month.

On an annual basis, the alternative measure of inflation fell to 2.1%, the lowest since February 2021, from an upwardly revised 2.3% in the previous month.

The annual core rate of inflation was steady at 2.7%, highlighting the stubborn and well-anchored inflation into the economy.

Despite eleven interest rate hikes over 2022 and 2024, the Fed has failed to bring down inflation to its target rate of 2%, and prices are still rising at a faster rate as many businesses and service providers are looking to pass on higher costs to consumers.

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.8% to 5,768.24, the Nasdaq Composite fell 1.3% to 18,365.20, and the Russell 2000 index declined 0.2% to 2,233.04.

The yield on 2-year Treasury notes edged higher to 4.20%, 10-year Treasury notes inched higher to 4.30%, and 30-year Treasury bonds inched higher to 4.50%.

WTI crude oil increased $0.69 to $69.33 a barrel, and natural gas prices edged down 7 cents to $2.77 a thermal unit.

Gold fell by $18.82 to $2,766.72 an ounce, and silver decreased by $0.47 to $33.25.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.94.

U.S. Stock Movers

Microsoft Corp. declined 4.8% to $411.89 after the software company reported strong quarterly results, but the company's revenue outlook for the current quarter fell short of investor expectations.

Microsoft estimated revenue in the fiscal second quarter to range between $68.1 billion and $69.1 billion.

Booking Holdings increased 6.3% to $4,745.43 after the online reservation company's adjusted earnings in the latest quarter surpassed market expectations.

Starbucks Corp. increased 2.4% to $95.94 after the coffee chain operator reported sharply lower-than-expected revenue and earnings in its latest quarter amid demand weakness in the U.S. and China.

Global comparable same-store sales plunged 7% in the fiscal fourth quarter.

Uber Technologies dropped 9.9% to $71.77 after the ride-hailing service provider reported strong quarterly earnings but gross bookings disappointed investors.

Carvana Co. jumped 20.4% to $249.39 after the used car dealer reported sharply higher sales and earnings.

The company also lifted its full-year earnings outlook, and added results are expected to surpass the high end of its previous estimate.

Europe Movers: AB InBev, Airbus, BNP Paribas, Dansk Bank, Shell, Societe Generale, TotalEnergies

Inga Muller
31 Oct, 2024
Frankfurt

Benchmark indexes in Paris, London, and Frankfurt extended losses in the month.

Investors reacted to the latest earnings from Societe Generale, BNP, Airbus, AB InBev, and TotalEnergies.

The DAX index decreased by 0.5% to 19,161.70; the CAC-40 index fell by 0.9% to 7,360.22; and the FTSE 100 index fell by 0.8% to 8,093.66.

The yield on 10-year German bonds edged higher to 2.40%, French bonds inched higher to 3.13%, the UK gilts edged higher to 4.41%, and Italian bonds increased to 3.65%.

Airbus SE increased 1.6% to €142.04 after the commercial aviation company reaffirmed its target to deliver 770 aircraft in the current year.

TotalEnergies SE declined 2.9% to €57.43 after the French energy company reported lower-than-expected adjusted earnings in the third quarter.

Societe Generale increased 9.3% to €25.92 after the French lender reported strong quarterly results and a broad management shakeup.

BNP Paribas SA declined 5.5% to €61.92 after the French bank reported weaker-than-expected third quarter earnings.

Revenue increased 3.1% to 11.9 billion from €11.6 billion, and net income increased 7.8% from a year ago to €2.87 billion from €2.66 billion.

Equities trading division revenue rose 13% to €820 million, and revenue from trading of bonds, currencies, and commodities advanced 12% to €1.2 billion.

Corporate and institutional banking divisions reported an increase of 9% in revenue.

However, revenue from the Commercial, Personal Banking, and Services division, the largest division by revenue, decreased 2.6% from a year earlier, largely because of weakness in the automobile lease segment.

Last month, the company agreed to acquire the German private banking operation of HSBC as the company looked for ways to strengthen its wealth management unit in Germany and increase its asset under management to €40 billion.

The company retained its full-year net income target of €11.2 billion.

Anheuser-Busch InBev SA declined 4.9% to €55.52 after the brewery reported a decline in beer sales volume due to weakness in China and Argentina.

Danske Bank AS increased 3.3% to DKK.202.70 after the Danish bank raised its annual earnings outlook.

Shell PLC increased 1.5% to 2,526.50 pence after energy explorer launched a new stock repurchase plan of $3.5 billion to be completed by January 30, 2025.

Revenue in the third quarter declined to $71.1 billion from $73.3 billion, net income declined to $4.2 billion from $7.2 billion, and diluted earnings per share fell to 68 cents from $1.05 a year earlier.

The company also announced an interim cash dividend of 34.4 cents per share payable on December 19 to shareholders on record on November 15.

European Market Indexes Extended October Losses; Eurozone Inflation Rebounded In October

Bridgette Randall
31 Oct, 2024
London

European stock market indexes turned lower for the third session in a row as investors reviewed the latest batch of earnings and the economic releases.

Benchmark indexes in Paris, Milan, Frankfurt, and London headed lower and extended losses for the month.

The eurozone consumer price inflation rebounded to 2.0% in October from 1.7% in September, which was the lowest since April 2021, Eurostat reported on Thursday.

The rebound in inflation was expected because of the base effects of last year, as last year's sharp declines in energy prices are no longer impacting annual calculations.

Germany's retail sales unexpectedly rose in September, driven by a larger-than-expected increase in non-food sales.

Retail sales rose on an annual basis by 3.8% and on a monthly basis by 1.2% in September, the Federal Statistical Office, or Destatis, reported Thursday.

Europe Indexes and Yields

The DAX index decreased by 0.5% to 19,161.70; the CAC-40 index fell by 0.9% to 7,360.22; and the FTSE 100 index fell by 0.8% to 8,093.66.

The yield on 10-year German bonds edged higher to 2.40%, French bonds inched higher to 3.13%, the UK gilts edged higher to 4.41%, and Italian bonds increased to 3.65%.

The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar weakened to 86.60 Swiss cents.

Brent crude increased $0.38 to $72.55 a barrel, and the Dutch TTF natural gas fell by €1.26 to €40.26 per MWh.

Europe Stock Movers

Airbus SE increased 1.6% to €142.04 after the commercial aviation company reaffirmed its target to deliver 770 aircraft in the current year.

TotalEnergies SE declined 2.9% to €57.43 after the French energy company reported lower-than-expected adjusted earnings in the third quarter.

Societe Generale increased 9.3% to €25.92 after the French lender reported strong quarterly results and a broad management shakeup.

BNP Paribas SA declined 5.5% to €61.92 after the French bank reported weaker-than-expected third quarter earnings.

Revenue increased 3.1% to 11.9 billion from €11.6 billion, and net income increased 7.8% from a year ago to €2.87 billion from €2.66 billion.

Equities trading division revenue rose 13% to €820 million, and revenue from trading of bonds, currencies, and commodities advanced 12% to €1.2 billion.

Corporate and institutional banking divisions reported an increase of 9% in revenue.

However, revenue from the Commercial, Personal Banking, and Services division, the largest division by revenue, decreased 2.6% from a year earlier, largely because of weakness in the automobile lease segment.

Last month, the company agreed to acquire the German private banking operation of HSBC as the company looked for ways to strengthen its wealth management unit in Germany and increase its asset under management to €40 billion.

The company retained its full-year net income target of €11.2 billion.

Anheuser-Busch InBev SA declined 4.9% to €55.52 after the brewery reported a decline in beer sales volume due to weakness in China and Argentina.

BoJ Holds Rates Steady; Advantest, Hitachi, and Renesas In Focus After Earnings

Akira Ito
31 Oct, 2024
Tokyo

Stock market indexes in Tokyo headed lower, tracking losses in overnight trading in New York.

The Nikkei 225 stock average declined 0.9% and the Topix index fell 0.7% as investors reviewed the latest earnings from domestic corporations.

The Bank of Japan held its key lending rate at 0.25%, as widely expected, and retained its inflation and growth outlooks for the current fiscal year.

The policy committee, after a two-day meeting, left its lending rate unrevised and cited weakening inflationary forces following the recent decline in energy prices.

The central bank also kept its core inflation, which excludes fresh food prices, estimate at 2.5% but lowered its overall inflation outlook to 1.9% from the previous estimate of 2.1%.

The BoJ retained its fiscal 2026 inflation estimate at 1.6%.

The central bank held its real economic growth estimate at 0.6% in fiscal 2024 and 1.0% in fiscal 2026, but lifted its fiscal 2025 estimate to 1.1% from the previous estimate of 1.0% in July.

Policymakers are struggling to understand the impact of the results of the recent national election amid rising political instability as the central bank prepares to lay the groundwork to normalize interest rates and decades of negative interest rates.

The Bank of Japan ended its negative rate policy in March with the first rate increase in 17 years, followed by another rate hike in July, after decades of unconventional monetary policy.

Japan Stock Movers

The Nikkei 225 stock average decreased 0.9% to 38,942.64, and the broader Topix index fell 0.7% to 2,685.25.

The yen was relatively unchanged at 152.77 against the U.S. dollar after the Bank of Japan announced its policy decisions.

Tech stocks in Tokyo were under pressure following the weaker-than-expected results from Microsoft and Meta Platforms, and investors questioned the level of investment in artificial intelligence infrastructure.

Advantest Corp. jumped 6.4% to ¥9,148.0 after the company raised its annual earnings outlook for the surge in demand for its AI-related testing tools.

Net sales in the first half ending in September increased 51.4% to 329.2 billion yen, net income surged 167.3% to 69.3 billion yen, and diluted earnings per share increased to 93.64 yen from 35.06 a year ago.

The company estimated revenue in the fiscal year 2024 to increase 31.6% to 640 billion yen, net income to rise 96% to 122 billion yen, and basic earnings per share to increase to 165.01.

Hitachi Ltd. declined 5.6% to ¥3,924.0 after the company reported weaker-than-expected financial results.

Revenue in the first half ending in September decreased 92% to 4.54 trillion yen from 4.96 trillion yen, net income increased to 315.4 billion yen from 232.3 billion yen, and diluted earnings per share rose to 63.22 yen from 44.78 yen.

Renesas Electronics dropped 5% to ¥2,110.0 after the advanced chip maker reported weaker-than-expected financial results.

Revenue in the third quarter declined to 345.3 billion yen from 379.4 billion, and net income fell to 86 billion yen from 108.3 billion yen from a year earlier, respectively.

The company retained its estimate of the full-year revenue range between 1.326 trillion yen and 1.341 trillion yen.

China Indexes Rebound After Factory Activities Resume Expansion

Li Chen
31 Oct, 2024
Hong Kong

Stock market indexes wavered in China and Hong Kong, and investors awaited the outcome of a key policy legislative meeting to decide the possible fiscal measures.

The Hang Seng index gained 0.5%, the CSI 300 index added 0.2%, and the yuan traded around 7.13 against the U.S. dollar.

Investors are hoping that lawmakers will approve the increase in the central government deficit level, which could provide additional funding to local government after the meeting of the legislative committee of the National People's Congress next week.

The latest official survey of the manufacturing sector showed a slight improvement in activities in October as the recent string of monetary measures and the easing of restrictions to buy residential property began to impact economic conditions.

The official manufacturing PMI in China increased to 50.1 in October from 49.8 in September, according to the National Bureau of Statistics.

Factory activities increased for the first time since April, ending five months of contraction, after output growth reached a six-month high and the growth in new orders stabilized.

The reading above 50 indicates expansion, and below shows contraction in the sector.

The official non-manufacturing PMI in China, which tracks both service and construction sectors, also returned to growth amid rising activities in both sectors.

The construction sector subindex eased to 50.4 in October from 50.7 in September, while the service sector subindex expanded to 50.1 from 49.9 in the previous month.

The service sector activities picked up during the National Day holiday earlier in the month as demand for parcel delivery and air and rail transportation rose.

The shift in policy stance is finally beginning to impact the manufacturing and service sectors, but the construction sector continues to struggle amid weak demand and falling home prices.

The composite PMI, which includes manufacturing and non-manufacturing activities, rose to 50.8 from 50.4 in the previous month.

China Stock Movers

The Hang Seng index increased 0.5% to 20,478.37, and the mainland-focused CSI 300 index advanced 0.2% to 3,897.90.

China Construction Bank increased 0.6% to HK $6.0 after the company reported a 4.5% increase in profit from a year ago in the third quarter.

China Life Insurance rose 2.1% to $16.70 after the insurance company reported a 17-fold increase in income from a year ago in the third quarter following investment gains in stocks.

Industrial and Commercial Bank of China increased 0.7% to HK $4.65 after the bank reported 4% increase in third quarter profit.

Electric vehicle makers struggled with the worry that intense price competition would weigh on profitability.

Li Auto increased 0.6% to HK $109.30, BYD fell 3.3% to HK $285.40, and Geely Automobile Holdings dropped 2.5% to HK $14.06.

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