ticker

Movers: Adani Group, Patanjali Foods, SBC Export, Somany Ceramics, Zee Learn

Arun Goswami
06 Dec, 2023
Mumbai

Stocks in Mumbai advanced for the third day this week after investors bid up infrastructure and government-controlled companies following the state election results.

The Sensex index increased 275.08 points to 69,571.22, and the Nifty index rose 77.55 points to 20,932.65.

On the Mumbai stock exchange, 198 stocks traded at their 52-week highs and 15 stocks traded at their 52-week lows.

Adani Group stocks advanced and led gainers in the 3-day market rally after the Supreme Court's decision last week to conclude a hearing related to allegations of financial misconduct.

Adani Power jumped 8% to ₹582.50, Adani Ports and Special Economic Zone advanced 4% to ₹1,053.75, Adani Enterprises increased 2.3% to ₹3,029.0, and Adani Wilmar soared 6.5% to ₹405.75.

SBC Exports increased 1.1% to ₹32.15 after the company board approved the bonus issue ratio of 1 to 2.

Somany Ceramics jumped 3.5% to ₹720.30, and the company set December 15 as the stock buyback record date.

Zee Learn decreased 1.5% to ₹6.90, and Axis Bank initiated a corporate insolvency proceeding against the company's wholly owned subsidiary, Digital Ventures Private Limited.

Patanjali Foods gained 3.5% to a new record ₹1,570.0 after the company said it plans to increase market share in food segments by keeping its focus on masala and biscuit product lines.

Hindustan Zinc gained 0.3% to ₹326.0 after the company's board approved a second interim dividend of ₹6 per share to shareholders on record on December 14.

The total dividend payment would be ₹2,533.19 crore.

India Markets Rally Extends to Third Day Post Election Results

Arjun Pandit
06 Dec, 2023
Mumbai

Stocks advanced for the third day in a row this week amid lingering optimism following the state election results.

The Sensex and the Nifty indexes jumped 0.3% and stretched weekly gains over 1.3%, and stocks in power, real estate, chemicals, and manufacturing sectors were among the leading gainers.

In overnight trading, benchmark indexes in New York closed mixed after a job openings report showed a cooling trend in the labor market.

Crude oil prices dropped to a five-month low after U.S. crude exports were estimated at a record 5.7 million barrels per day to Europe and Asia, according to a report by ship-tracking firms Kpler and Votrexa.

Just a month ago, U.S. crude oil exports were running at 4 million barrels per day, surpassing exports from any of the OPEC cartel, except Saudi Arabia.

The additional supply in global markets is putting more pressure on doubts about the impact of OPEC+'s decision to cut production by one million barrels a day.

India Indexes and Yields

The Sensex index increased 275.08 points to 69,571.22, and the Nifty index rose 77.55 points to 20,932.65.

On the Mumbai stock exchange, 198 stocks traded at their 52-week highs and 15 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds edged up to 7.25%, and the Indian rupee weakened to ₹83.32 against the U.S. dollar.

The gold price increased by 0.2% to ₹62,283 per ten grams, and silver advanced by 0.3% to ₹75,515 per kilo.

Crude oil decreased by 0.6% to ₹6,045 per barrel, and natural gas fell by 1.2% to ₹225.30 per thermal unit.

India Stock Movers

Adani Group stocks advanced and led gainers in the 3-day market rally after the Supreme Court's decision last week to conclude a hearing related to allegations of financial misconduct.

Adani Power jumped 8% to ₹582.50, Adani Ports and Special Economic Zone advanced 4% to ₹1,053.75, Adani Enterprises increased 2.3% to ₹3,029.0, and Adani Wilmar soared 6.5% to ₹405.75.

SBC Exports increased 1.1% to ₹32.15 after the company board approved the bonus issue ratio of 1 to 2.

Somany Ceramics jumped 3.5% to ₹720.30, and the company set December 15 as the stock buyback record date.

Zee Learn decreased 1.5% to ₹6.90, and Axis Bank initiated a corporate insolvency proceeding against the company's wholly owned subsidiary, Digital Ventures Private Limited.

U.S. Stocks Struggled after Job Openings Report and Ahead of Nonfarm Payrolls Update

Barry Adams
05 Dec, 2023
New York City

Benchmark indexes lacked direction, and investors reviewed the latest job openings report and reassessed the economic outlook and the appropriate level of interest rates in early 2024.

Investors stayed on the sidelines ahead of the widely anticipated rate-pause decision next week, but the ongoing debate raged on Wall Street centered on the direction of interest rates.

Investors also reviewed the latest job openings report, indicating a cooling labor market, but new hires and separations were little changed in October.

Market participants are looking ahead to the nonfarm payrolls report on Friday, and five economists surveyed by Ticker.com are anticipating payrolls to expand by about 175,000 after growing by 150,000 in October.

Policymakers are closely watching the job market, and the latest job openings report confirmed the cooling trend over the last several months, but the overall job market is healthy.

One group of investors is supporting the view that interest rates are near peak rates and the Federal Reserve is more likely to cut rates as early as the second quarter of 2024.

The other group of investors is looking for the central bank to hold higher rates for longer, but many are worried that despite the eleven rate hikes between March 2022 and June 2023, prices are still rising faster than the 2% target rate set by the Federal Reserve.

Federal Reserve Chairman Jerome Powell stressed last Friday that talks of rate cuts are "premature" and inflation has a long way to go.

The Federal Reserve is engaged in a delicate balancing act of keeping economic growth intact while lowering inflation to 2% with a minimal impact on the labor market.

Overall inflation declined from a high of 9% in late 2022 to below 3% in recent months, largely because of the decline in energy prices and not because of multiple rate hikes by the central bank.

October Job Openings Dropped to 30-month Low

Job openings declined sharply in October after employers across the nation in several industries curtailed announcements for new hires.

The number of job openings declined by 617,000 to 8.7 million, the U.S. Bureau of Labor Statistics reported Tuesday.

Over the month, job openings decreased in health care and social assistance by 236,000.finance and insurance by 168,000, and real estate and rental and leasing by 49,000.

But job openings increased in information by 39,000.

The widespread decline in job vacancies lowered the ratio of openings to available workers to 1.3 to 1 from around 2 to 1 earlier in the year.

U.S. Indexes and Yields

The S&P 500 index declined 0.2% to 4,565.03, and the Nasdaq Composite decreased 0.3% to 14,240.12.

The yield on 2-year Treasury notes increased to 4.63%, 10-year Treasury notes inched lower to 4.23%, and 30-year Treasury bonds decreased to 4.39%.

Crude oil decreased $0.04 to $72.98 a barrel, and natural gas prices rose 2 cents to $2.71 a thermal unit.

Gold decreased $4.15 to $2,025.87 an ounce on the expectation of a decline in interest rates as early as in the second quarter of 2024 and a weakening of the U.S. dollar.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.79.

U.S. Stock Movers

Gitlab soared 14.2% to $60.44 after the software developer reported better-than-expected quarterly results and the company reported adjusted operating profit for the first time.

Lands End rose 1.5% after dropping as much as 9% to $6.75 after the apparel retailer reported weaker-than-expected quarterly results.

J.M. Smucker advanced 2.6% to $115.34, and the stock lacked direction after the food maker lowered its annual expectations after revenue plunged 12% from a year ago.

The company tightened the upper end of its comparable sales estimate and lowered its view of free cash flow and adjusted earnings per share.

European Market Indexes Traded at 4-month Highs

European markets inched to a four-month high, and investors debated the rate path and the economic health of the eurozone.

Benchmark indexes in Frankfurt and Paris advanced to a four-month high amid mixed worries about the European Central Bank's next move, energy price-driven inflation, and consumer spending.

On Monday. Germany reported a larger-than-expected trade surplus, and today France reported industrial production declining for the third month in a row.

French Industrial Production Eased In October

France's industrial production fell 0.3% in October from the previous month's upwardly revised 0.6% decline in September, the INSEE, the statistical office of France, reported Tuesday.

The weakness in mining, energy, and construction sector activities offset the slight rebound in manufacturing activities.

A year ago, industrial production rose 1.9% in October after falling 0.3% in September.

In other economic news, service sector activities in Spain and Italy shrank in October, two separate reports from S&P Global showed Tuesday.

The HCOB Italy Service PMI decreased to 49.5 in November, a decline for the fourth month in a row, but rose from a one-year low of 47.7 in October.

The HCOB Spain Service PMI eased to a three-month low of 49.8 in November from 50.0 in October.

Europe Indexes and Yields

The DAX index increased 0.8% to 16,533.11, the CAC-40 index rose 0.7% to 7,386.99, and the FTSE 100 index decreased 0.3% to 7,489.84.

The yield on 10-year German bonds decreased to 2.30%; French bonds traded lower to 2.86%; the UK gilts declined to 4.14%; and Italian bonds inched lower to 4.04%.

The euro traded lower to $1.083, the British pound inched lower to $1.263, and the U.S. dollar eased to 87.39 Swiss cents.

Brent crude increased $0.25 to $77.72 a barrel, and the Dutch TTF natural gas decreased by €1.98 to €38.13 per MWh.

Europe Stock Movers

Nokia declined 8.8% to €2.75 after AT&T said it plans to use telecom technology developed by Ericsson, which relies on cloud computing and non-proprietary off-shelf equipment developed by other companies.

Ericsson increased 4.9% to kr56.97.

AT&T said its telecom network equipment spending could reach as much as $14 billion over the next five years.

Job Openings Declined to 30-month Low In October

Brian Turner
05 Dec, 2023
New York City

Job openings declined sharply in October after employers across the nation in several industries curtailed announcements for new hires.

The number of job openings declined by 617,000 to 8.7 million, the U.S. Bureau of Labor Statistics reported Tuesday.

Over the month, job openings decreased in health care and social assistance by 236,000.finance and insurance by 168,000, and real estate and rental and leasing by 49,000.

But job openings increased in information by 39,000.

The widespread decline in job vacancies lowered the ratio of openings to available workers to 1.3 to 1 from around 2 to 1 earlier in the year.

On a regional basis, job openings fell in the South by 289,000, the Midwest by 193,000, the West by 83,000, and the Northeast by 52,000.

Over the month, the number of hires and total separations changed little, at 5.9 million and 5.6 million, respectively.

Within separations, quits were 3.6 million, and layoffs and discharges were 1.6 million, and both changed little.

While job openings fell, the number of hires fell slightly, and quits, the measure of workers confidence in finding another job, declined little.

U.S. Movers: Gitlab, Lands End, J M Smucker

Scott Peters
05 Dec, 2023
New York City

Stocks paused for the second day in a row after benchmark indexes rallied for five consecutive weeks following speculation that interest rates were near peak rates.

The S&P 500 index declined 0.2% to 4,565.03, and the Nasdaq Composite decreased 0.3% to 14,240.12.

The yield on 2-year Treasury notes increased to 4.63%, 10-year Treasury notes inched lower to 4.23%, and 30-year Treasury bonds decreased to 4.39%.

Gitlab soared 14.2% to $60.44 after the software developer reported better-than-expected quarterly results and the company reported adjusted operating profit for the first time.

Revenue in the third quarter increased 32% to $149.7 million from $113.0 million, net loss expanded to $285.2 million from $48.5 million, and diluted loss per share increased to $1.84 from 33 cents a year ago.

The company estimated fourth-quarter revenue to fall between $157 million and $158 million, non-GAAP operating income between $5 million and $6 million, and non-GAAP diluted earnings per share between 8 cents and 9 cents.

The company estimated revenue in the fiscal year 2024 to range between $573 million and $574 million, non-GAAP-adjusted losses between $8 million and $9 million, and non-GAAP-adjusted diluted earnings per share between 12 cents and 13 cents.

Lands End fell 3.5% to $6.45 after the apparel retailer reported weaker-than-expected quarterly results.

Revenue in the third quarter declined 12.5% to $324.7 million from $371 million, and revenue fell 9.5% excluding Land's End Japan, which closed at the end of fiscal 2022.

Net loss expanded to $112.4 million from $4.7 million, and diluted loss per share rose to $3.52 from 14 cents a year ago.

In the fourth quarter, the company estimated revenue to range between $490 million and $520 million, net income to range between $4 million and $7 million, and diluted earnings per share between 13 cents and 22 cents.

The company guided revenue in fiscal 2023 to be between $1.45 billion and $1.48 billion, net loss between $115 million and $118 million, and diluted loss per share between $3.60 and $3.70.

J.M. Smucker advanced 2.6% to $115.34, and the stock lacked direction after the food maker lowered its annual expectations after revenue plunged 12% from a year ago.

Revenue in the fiscal second quarter ending in October declined 12% to $1.94 billion from $2.2 billion, net income increased 2% to $194.9 million from $191.1 million, and diluted earnings per share rose to $1.90 from $1.79 a year ago.

The company tightened the upper end of its comparable sales estimate and lowered its view of free cash flow and adjusted earnings per share.

The comparable sales outlook range for fiscal 2024 was tightened to between 8.9% and 9% from the previous range of 8.5% and 9.5%, and the adjusted earnings per share range was between $9.25 and $9.65 from the previous estimate of between $9.45 and $9.85.

The company also sharply lowered its full-year free cash flow estimate to $530 million from $650 million, but its capital expenditure to increase to $610 million from the previous estimate of $550 million.

U.S. Indexes Slip Second Day as 5-week Strong Market Rally Paused

Barry Adams
05 Dec, 2023
New York City

Benchmark indexes rested for the second day in a row as investors reassessed the economic outlook and the appropriate level of interest rates in early 2024.

Investors stayed on the sidelines ahead of the widely anticipated rate-pause decision next week, but the ongoing debate raged on Wall Street centered on the direction of interest rates.

One group of investors is supporting the view that interest rates are near peak rates and the Federal Reserve is more likely to cut rates as early as the second quarter of 2024.

The other group of investors is looking for the central bank to hold higher rates for longer and worries that despite the eleven rate hikes between March 2022 and June 2023, prices are still rising faster than the 2% target rate set by the Federal Reserve.

Federal Reserve Chairman Jerome Powell stressed last Friday that talks of rate cuts are "premature" and inflation has a long way to go.

The Federal Reserve is engaged in a delicate balancing act of keeping economic growth intact while lowering inflation to 2% with a minimal impact on the labor market.

Overall inflation declined from a high of 9% in late 2022 to below 3% in recent months, largely because of the decline in energy prices and not because of multiple rate hikes by the central bank.

U.S. Indexes and Yields

The S&P 500 index declined 0.2% to 4,565.03, and the Nasdaq Composite decreased 0.3% to 14,240.12.

The yield on 2-year Treasury notes increased to 4.63%, 10-year Treasury notes inched lower to 4.23%, and 30-year Treasury bonds decreased to 4.39%.

Crude oil decreased $0.04 to $72.98 a barrel, and natural gas prices rose 2 cents to $2.71 a thermal unit.

Gold decreased $4.15 to $2,025.87 an ounce on the expectation of a decline in interest rates as early as in the second quarter of 2024 and a weakening of the U.S. dollar.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.79.

U.S. Stock Movers

Gitlab soared 14.2% to $60.44 after the software developer reported better-than-expected quarterly results and the company reported adjusted operating profit for the first time.

Lands End rose 1.5% after dropping as much as 9% to $6.75 after the apparel retailer reported weaker-than-expected quarterly results.

J.M. Smucker advanced 2.6% to $115.34, and the stock lacked direction after the food maker lowered its annual expectations after revenue plunged 12% from a year ago.

The company tightened the upper end of its comparable sales estimate and lowered its view of free cash flow and adjusted earnings per share.

Europe Movers: Ericsson, Luxury Stocks, Nokia, Resource Stocks, Spotify

Inga Muller
05 Dec, 2023
Frankfurt

European stocks advanced and extended the previous three weeks' gains after rate hike anxieties.

The DAX index increased 0.3% to 16,446.07, the CAC-40 index rose 0.4% to 7,359.99, and the FTSE 100 index decreased 0.3% to 7,490.18.

The yield on 10-year German bonds decreased to 2.30%; French bonds traded lower to 2.86%; the UK gilts declined to 4.14%; and Italian bonds inched lower to 4.04%.

Nokia declined 8.8% to €2.75 after AT&T said it plans to use telecom technology developed by the rival Ericsson.

The ORAN technology developed by Ericsson relies on cloud computing and non-proprietary and widely available equipment developed by other companies, cutting the cost significantly.

Ericsson increased 4.9% to kr56.97.

AT&T said its telecom network equipment spending could reach as much as $14 billion over the next five years.

Spotify Technology jumped 0.1% to €179.20 after soaring 15% in the previous session after the company said it plans to cut more staff.

Earlier in the year, the music streaming service provider announced its plan to cut 6% of its staff, followed by another 2% job cut in June and the latest 17%, or about 1,500 payrolls cut ahead of holidays.

Energy complex stocks traded mixed on worries about the OPEC+ production quota, and crude oil prices advanced 0.3%.

BP increased 0.2% to 472.85 pence, Shell fell 0.5% to Є29.89, Repsol gained 0.2% to €13.94, and TotalEnergies added 0.3% to €61.60.

Mining stocks declined after Moody's cut China's credit outlook to negative, citing the ongoing worries about the country's property sector.

Glencore declined 1.8% to 449.40 pence, Antofagasta fell 0.7% to 1,446.0 pence, and Anglo American declined 2.5% to 2,170.0 pence.

Luxury stocks in Paris rebounded for the second day in a row in the hopes that the sustained demand growth in the U.S. is likely to offset the demand weakness in China.

LVMH added 0.5% to €702.20, Kering fell 0.2% to €399.30, Richemont decreased 0.2% to CHF 110.35, and Salvatore Ferragamo advanced 0.2% to €11.77.

Automobile stocks traded mixed, and luxury vehicle makers were under pressure from the growing demand uncertainties in China and the negative impact of higher interest rates in 2024.

Volkswagen Group declined 0.4% to €107.44, Mercedes-Benz Group rose 0.4% to €60.75, BMW rose 0.5% to €96.59, Ferrari increased 0.8% to €329.50, and Renault dropped 0.9% to €35.87.

Financial stocks traded mixed after bond yields drifted lower and the euro and the British pound held firm against the U.S. dollar.

Barclays fell 2.5% to 139.52 pence, HSBC fell 1.0% to 597.60 pence, Deutsche Bank inched higher 0.01% to €11.54, UniCredit declined 0.4% to €25.11, Societe Generale advanced 0.6% to €23.22, and UBS Group fell 1.7% to CHF 24.36.

European Markets Approached 4-month highs, French Industrial Production Eased

Bridgette Randall
05 Dec, 2023
Frankfurt

European markets inched to a four-month high, and investors debated the rate path and the economic health of the eurozone.

Benchmark indexes in Frankfurt and Paris advanced to a four-month high amid mixed worries about the European Central Bank's next move, energy price-driven inflation, and consumer spending.

On Monday. Germany reported a larger-than-expected trade surplus, and today France reported industrial production declining for the third month in a row.

French Industrial Production Eased In October

France's industrial production fell 0.3% in October from the previous month's upwardly revised 0.6% decline in September, the INSEE, the statistical office of France, reported Tuesday.

The weakness in mining, energy, and construction sector activities offset the slight rebound in manufacturing activities.

A year ago, industrial production rose 1.9% in October after falling 0.3% in September.

In other economic news, service sector activities in Spain and Italy shrank in October, two separate reports from S&P Global showed Tuesday.

The HCOB Italy Service PMI decreased to 49.5 in November, a decline for the fourth month in a row, but rose from a one-year low of 47.7 in October.

The HCOB Spain Service PMI eased to a three-month low of 49.8 in November from 50.0 in October.

Europe Indexes and Yields

The DAX index increased 0.3% to 16,446.07, the CAC-40 index rose 0.4% to 7,359.99, and the FTSE 100 index decreased 0.3% to 7,490.18.

The yield on 10-year German bonds decreased to 2.30%; French bonds traded lower to 2.86%; the UK gilts declined to 4.14%; and Italian bonds inched lower to 4.04%.

The euro traded lower to $1.083, the British pound inched lower to $1.263, and the U.S. dollar eased to 87.39 Swiss cents.

Brent crude increased $0.45 to $78.45 a barrel, and the Dutch TTF natural gas decreased by €0.23 to €49.88 per MWh.

Europe Stock Movers

Nokia declined 8.8% to €2.75 after AT&T said it plans to use telecom technology developed by Ericsson, which relies on cloud computing and non-proprietary off-shelf equipment developed by other companies.

Ericsson increased 4.9% to kr56.97.

AT&T said its telecom network equipment spending could reach as much as $14 billion over the next five years.

Movers: Brigade Enterprises, Gulshan Polyols, HCL Technologies, JSW Infrastructure, Mahindra & Mahindra Financial, Shriram Properties

Arun Goswami
05 Dec, 2023
Mumbai

India stocks advanced for the second day this week after the ruling Bhartiya Janata Party won state elections in three populous states.

The Sensex index increased 121.96 points to 68,992.24, and the Nifty index rose 40.10 points to 20,731.45.

On the Mumbai stock exchange, 179 stocks traded at their 52-week highs and 14 stocks traded at their 52-week lows.

JSW Infrastructure soared 4.7% to ₹227.85 after the company's unit signed a deal with Shapoorji Pallonji Group Company to acquire 50% plus one share of PNP Maritime for ₹270 crore.

Brigade Enterprises increased 3.5% to ₹873.0 after the company signed a deal with land owners to develop a residential project in Kurubarahalli, Mysuru.

The company plans to build 400,000 square feet of residential space spread over four acres.

Gulshan Polyols gained 4.8% to ₹233.40 after the company won a ₹572 crore order to supply ethanol.

Shriram Properties rose 1.5% to ₹120.80, and the stock rebounded from morning losses after multiple block transactions.

Mahindra & Mahindra Financial fell 1.7% to ₹272.95 after the company said its net new loans in November increased 16% to ₹5,300 crore.

HCL Technologies declined 1.7% to ₹1,317.30, and the company's UK subsidiary agreed to sell its entire 49% stake in a joint venture with State Street International for $170 million.

Broad Rally Lifts India Indexes

Arjun Pandit
05 Dec, 2023
Mumbai

Stocks in India extended gains for the second day in a row this week following the results of state elections.

The Sensex index and the Nifty index advanced more than 0.4% on the hopes that the success of the BJP in state elections may help the ruling party in national elections in 2024.

In a broad-based rally, stocks advanced in financial, real estate, manufacturing, pharmaceutical, and government-controlled companies, which were among the leading gainers.

In overseas trading, market indexes rested in overnight trading in New York after rallying for five consecutive weeks, but indexes in Europe advanced.

Gold drifted lower from its record high reached in Friday's trading, and crude oil traded down on the uncertainties related to the implementation of the latest production quota agreed by the OPEC+ members.

Closer to home, investors are anticipating the Reserve Bank of India to hold interest rates and drain financial liquidity on Friday after the last policy meeting of 2023.

India Indexes and Yields

The Sensex index increased 121.96 points to 68,992.24, and the Nifty index rose 40.10 points to 20,731.45.

On the Mumbai stock exchange, 179 stocks traded at their 52-week highs and 14 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds edged up to 7.27%, and the Indian rupee weakened to ₹83.38 against the U.S. dollar.

The gold price increased by 0.4% to ₹62,615 per ten grams, and silver advanced by 0.09% to ₹76,235 per kilo.

Crude oil decreased by 0.6% to ₹6,120 per barrel, and natural gas rose by 0.7% to ₹225.50 per thermal unit.

India Stock Movers

JSW Infrastructure soared 4.7% to ₹227.85 after the company's unit signed a deal with Shapoorji Pallonji Group Company to acquire 50% plus one share of PNP Maritime for ₹270 crore.

Brigade Enterprises increased 3.5% to ₹873.0 after the company signed a deal with land owners to develop a residential project in Kurubarahalli, Mysuru.

The company plans to build 400,000 square feet of residential space spread over four acres.

Gulshan Polyols gained 4.8% to ₹233.40 after the company won a ₹572 crore order to supply ethanol.

Shriram Properties rose 1.5% to ₹120.80, and the stock rebounded from morning losses after multiple block transactions.

Stretched Valuation Worries Keep Stocks In Check, Factory Orders Sank In October

Barry Adams
04 Dec, 2023
New York City

Market indexes fell on Monday after rising for five weeks in a row amid positive sentiment and optimism about the interest rate path, which met the worries of stretched valuations.

The S&P 500 index and the Nasdaq Composite declined after two popular indexes advanced for five consecutive weeks in a row, and investors worried that stock valuations were running ahead of market fundamentals.

In economic news, factory orders declined 3.6% in October after rising for two months in a row, the U.S. Census Bureau reported Monday.

New orders for all manufactured goods increased by 0.5% from a year ago, but durable goods orders fell 5.4% from the previous month and rose 4.0% from a year ago.

Orders for manufactured goods excluding transportation declined 1.2%, and orders excluding defense dropped 4.2% from the previous month, fell 1.4%, and rose 0.2% from a year ago.

Volatile transportation orders declined 14.7% from the previous month but rose 11.1% from a year ago.

On Friday, the S&P 500 index closed at a new 2023 high and surpassed the high seen in March 2022 after investors supported the view that interest rates are near peak rates and the Federal Reserve may begin to cut rates in early 2024.

Federal Reserve Chairman Jerome Powell stressed that talks of rate cuts are "premature," but investors still bid up stocks in anticipation of another rate pause decision by policymakers at the end of a two-day meeting on December 13.

Market participants widely believe that interest rates are likely to stay on hold following the recent string of inflation data suggesting a steady decline over the last eight months, largely driven by a decline in the energy price and comparison with a higher base.

Despite the Federal Reserve talking tough on inflation and lifting rates by 11 times between March 2022 and July 2023, the economy is still expanding and wages are still gaining at rates that are inconsistent with the central bank's target rate of 2%.

Looking ahead, investors are awaiting nonfarm payroll data to be released on Friday, and economists are expecting the economy to add at least 175,000 net new jobs in November.

The November JOLT report is also scheduled to be released on Tuesday, and investors are anticipating job openings of 9.6 million, still higher than the pre-Covid high of 6.5 million in 2019.

U.S. Indexes and Yields

The S&P 500 index declined 0.6% to 4,564.36, and the Nasdaq Composite decreased 1.1% to 14,153.88.

The yield on 2-year Treasury notes increased to 4.62%, 10-year Treasury notes inched higher to 4.25%, and 30-year Treasury bonds were unchanged at 4.43%.

Crude oil decreased $0.74 to $73.38 a barrel, and natural gas prices fell 14 cents to $2.67 a thermal unit.

Gold decreased $46.34 to $2,024.09 an ounce after the U.S. dollar eased.

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.34.

U.S. Stock Movers

Spotify Technology jumped 6.4% to $192.30 after the music streaming company announced its plan to lay off 1,500 employees, or 17% of its staff.

The company said it hired too many people in 2020 and 2021, and it needs to control its costs and adjust to new market realities.

Alaska Air Group declined 13.5% to $34.27 after the regional airline agreed to rival Hawaiian Airlines in a deal worth $1.9 billion.

Alaska Air agreed to pay $18 a share to the airline and assume $900 million of the company's debt.

Hawaii Airlines parent Hawaiian Holdings surged 181% to $13.65 in early trading, and cautious investors worried about the steep regulatory hurdles faced by the merger.

Coinbase Global jumped 9.2% to $146.10, and MicroStrategy advanced 8.2% to $571.0 after bitcoin surpassed the $40,000 level.

The surge in bitcoin also lifted the stock prices of other cryptocurrency-linked companies.

Marathon Digital Holdings soared 13% to $15.53, and Rio Platforms advanced 11.1% to $15.30.

European Markets Declined After Rallying Three Consecutive Weeks

Stock market indexes in Europe struggled to advance in Monday's trading, and the euro edged slightly lower.

Benchmark indexes in Germany, France, and the U.K. lacked direction, and investors reviewed the latest economic data from Spain and Germany.

Moreover, Swiss consumer price inflation in November slowed to 1.4% from a year ago, the Swiss Federal Statistics Office reported Monday.

Overall inflation slowed from 1.7% in October and dropped to a two-year low after inflation slowed for food and beverages, transportation, and healthcare.

The core rate of inflation, which excludes food and energy prices, slowed to 1.4% from 1.5% in the previous month.

Unemployed People Decline In Spain

The number of people registered as jobless decreased by 24,573 or 0.9% to 2.73 million in November, the Ministry of Employment and Social Security reported Monday.

The total count of unemployed declined to the lowest for a November month since 2007 after unemployment fell by 17,335 in services, by 2,654 in industry, by 2,175 in agriculture, and by 1,072 in construction.

A separate report by the ministry showed the net increase in employment in November rose by 10,350, increasing the total number of jobs to 20.75 million.

Germany's October Trade Surplus Soared

The German trade surplus rose more than expected after imports fell at a faster pace than exports in October, the Federal Statistics Office, or DeStatis, reported Monday.

Seasonally adjusted exports declined 8.1% to Є126.4 billion and imports declined 16.3% to Є108.6 billion.

Exports declined 0.2% and imports fell 1.2% from the previous month, largely because of the weakness in energy prices.

Trade surplus in October rose to Є17.8 billion from Є16.7 billion in September and Є7.8 billion a year ago.

Calendar and seasonally adjusted exports to the member states of the European Union declined by 2.7% to Є67.9 billion, and imports fell by 2.8% to Є56.9 billion.

Exports to countries outside the European Union increased by 2.9% to Є58.5 billion, and imports rose 0.8% to Є51.8 billion.

Germany's exports to the United States, its largest market, rose 5.7% to Є13.5 billion; to the People's Republic of China, they increased 1.5% to Є7.9 billion; and to the U.K., they advanced 5.6% to Є6.6 billion.

Europe Indexes and Yields

The DAX index increased 0.04% to 16,404.76, the CAC-40 index fell 0.2% to 7,332.59, and the FTSE 100 index decreased 0.2% to 7,512.96.

The yield on 10-year German bonds decreased to 2.36%; French bonds traded lower to 2.93%; the UK gilts declined to 4.17%; and Italian bonds inched lower to 4.13%.

The euro traded lower to $1.087, the British pound inched lower to $1.267, and the U.S. dollar eased to 87.21 Swiss cents.

Brent crude decreased $0.49 to $78.35 a barrel, and the Dutch TTF natural gas increased by €3.39 to €40.10 per MWh.

Europe Stock Movers

Energy complex stocks declined on worries about the OPEC+ production quota, and crude oil prices dropped as much as 0.5%.

BP decreased 1.9% to 469.15 pence, Shell dropped 1.7% to Є29.85, Repsol fell 1.7% to €13.94, and TotalEnergies dropped 2% to €61.06.

Mining stocks lacked direction on the ongoing worries about China's property sector.

Glencore declined 1.8% to 449.40 pence, Antofagasta fell 1.5% to 1,473.0 pence, and Anglo American dropped 2.9% to 2,244.50 pence.

Luxury stocks in Paris rebounded after dropping the previous week in the hopes that the U.S. Federal Reserve will keep rates steady at the end of its policy meeting next week.

LVMH added 0.6% to €699.50, Kering jumped 2.7% to €403.65, Richemont increased 0.8% to CHF 110.80, and Salvatore Ferragamo advanced 1.4% to €11.86.

Automobile stocks traded mixed, and investors are worried that higher interest rates for longer may negatively impact demand for vehicles in 2024.

Volkswagen Group added 0.1% to €107.14, Mercedes-Benz Group fell 0.2% to €60.0, BMW fell 0.9% to €95.35, Ferrari decreased 0.9% to €325.90, and Renault dropped 0.2% to €36.18.

Financial stocks traded mixed after bond yields drifted lower and the euro and the British pound held firm against the U.S. dollar.

Barclays added 0.5% to 142.48 pence, HSBC fell 0.3% to 602.50 pence, Deutsche Bank eased 0.1% to €11.51, UniCredit declined 0.2% to €11.51, Societe Generale rose 0.7% to €23.05, and UBS Group declined 0.2% to CHF 24.78.

U.S. Movers: Alaska Air, Coinbase, Hawaii Airlines, MicroStrategy, Spotify

Scott Peters
04 Dec, 2023
New York City

Spotify Technology jumped 6.4% to $192.30 after the music streaming company announced its plan to lay off 1,500 employees, or 17% of its staff.

The company said it hired too many people in 2020 and 2021, and it needs to control its costs and adjust to new market realities.

Alaska Air Group declined 13.5% to $34.27 after the regional airline agreed to rival Hawaiian Airlines in a deal worth $1.9 billion.

Alaska Air agreed to pay $18 a share to the airline and assume $900 million of the company's debt.

Hawaii Airlines parent Hawaiian Holdings surged 181% to $13.65 in early trading, and cautious investors worried about the steep regulatory hurdles faced by the merger.

Coinbase Global jumped 9.2% to $146.10, and MicroStrategy advanced 8.2% to $571.0 after bitcoin surpassed the $40,000 level.

The surge in bitcoin also lifted the stock prices of other cryptocurrency-linked companies.

Marathon Digital Holdings soared 13% to $15.53, and Rio Platforms advanced 11.1% to $15.30.

U.S. Averages Pause After Rallying Five Weeks, Alaska Air to Acquire Hawaii Airlines

Barry Adams
04 Dec, 2023
New York City

Market indexes struggled to extend the rally of the previous week amid positive sentiment and optimism about the interest rate path.

The S&P 500 index and the Nasdaq Composite edged lower in early trading after two popular indexes advanced for five consecutive weeks in a row.

On Friday, the S&P 500 index closed at a new 2023 high and surpassed the high seen in March 2022 after investors supported the view that interest rates are near peak rates and the Federal Reserve may begin to cut rates in early 2024.

Federal Reserve Chairman Jerome Powell stressed that talks of rate cuts are "premature," but investors still bid up stocks in anticipation of another rate pause decision by policymakers at the end of a two-day meeting on December 13.

Market participants widely believe that interest rates are likely to stay on hold following the recent string of inflation data suggesting a steady decline over the last eight months, largely driven by a decline in the energy price and comparison with a higher base.

Despite the Federal Reserve talking tough on inflation and lifting rates by 11 times between March 2022 and July 2023, the economy is still expanding and wages are still gaining at rates that are inconsistent with the central bank's target rate of 2%.

Looking ahead, investors are awaiting nonfarm payroll data to be released on Friday, and economists are expecting the economy to add at least 175,000 net new jobs in November.

The November JOLT report is also scheduled to be released on Tuesday, and investors are anticipating job openings of 9.6 million, still higher than the pre-Covid high of 6.5 million in 2019.

U.S. Indexes and Yields

The S&P 500 index declined 0.2% to 4,565.03, and the Nasdaq Composite decreased 0.3% to 14,240.12.

The yield on 2-year Treasury notes increased to 4.62%, 10-year Treasury notes inched higher to 4.25%, and 30-year Treasury bonds were unchanged at 4.43%.

Crude oil decreased $0.84 to $73.23 a barrel, and natural gas prices fell 10 cents to $2.71 a thermal unit.

Gold decreased $1.25 to $2,070.05 an ounce after the U.S. dollar eased.