Market Update
Movers: Alkem Labs, Adani Ports, Indian Oil, Reliance Industries, Salasar Techno, Tata Power
Arun Goswami
04 Dec, 2023
Mumbai
Stocks surged following the state election results, which solidified the ruling party's prospects of winning the national election in 2024.
The Sensex index increased 982.45 points to 68,463.64, and the Nifty index rose 297.0 points to 20,566.30.
On the Mumbai stock exchange, 253 stocks traded at their 52-week highs and 15 stocks traded at their 52-week lows.
Reliance Industries advanced 0.9% to ₹2,416.40 and Indian Oil Corporation added 3.7% to ₹115.35 on a report that Venezuela has resumed shipments to India following the easing of the U.S. sanctions.
India is the second-largest export destination for Venezuelan crude oil after China, but shipments from the OPEC member have been inconsistent because of a lack of production stability.
Adani Ports & Special Economic Zone jumped 5.5% to ₹873.90 after the cargo volume jumped 42% in November from a year ago, according to filings with exchanges.
Alkem Laboratories decreased 0.4% to ₹4,629.05 after the company received three observations from the U.S. Food and Drug Administration after its latest inspection at the facility located in Mandva, Maharashtra.
Tata Power Company added 1.9% to ₹281.15 after the company won a bidding auction to acquire Bikaner-III Neemrana-II Transmission Ltd., a transmission project special purpose vehicle set up by PFC Consulting Ltd.
Salasar Techno Engineering added 3.2% to ₹52.90 after the company won a contract of ₹364 crore from Tamil Nadu Generation and Distribution Corp.
India Indexes at Record New Highs after State Election Results
Arjun Pandit
04 Dec, 2023
Tokyo
Stocks on Dalal Street surged following the results of the state elections.
The Sensex index and the Nifty index jumped more than 1% in early trading after the ruling party, the BJP, clinched a solid majority in three of the five state elections.
The BJP is set to form government in Rajasthan, Madhya Pradesh, and Chhattisgarh but trailed Congress in Telangana and local parties in Mizoram.
Market sentiment was further bolstered by the decline in U.S. Treasury yields in Friday's trading, supporting the view that the U.S. Federal Reserve is likely to hold rates at its next meeting ending on December 13.
Closer to home, the Reserve Bank of India is widely expected to hold rates at the end of its policy meeting on December 8.
India Indexes and Yields
The Sensex index increased 982.45 points to 68,463.64, and the Nifty index rose 297.0 points to 20,566.30.
On the Mumbai stock exchange, 253 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 7.27%, and the Indian rupee weakened to ₹83.32 against the U.S. dollar.
Gold advanced in Mumbai trading and soared as much as 3% in international trading following the decline in the U.S. dollar in the hopes that the U.S. Federal Reserve is likely to leave rates unchanged on December 13.
The gold price increased by 0.6% to touch a record high of ₹63,934 per ten grams, and silver advanced by 0.2% to ₹78,244 per kilo.
Crude oil decreased by 1.9% to ₹6,162 per barrel, and natural gas fell by 3.7% to ₹227.60 per thermal unit.
Both the WTI and Brent crude oil prices are down 6.5% and 7.0% in the year so far.
India Stock Movers
Reliance Industries advanced 0.9% to ₹2,416.40 and Indian Oil Corporation added 3.7% to ₹115.35 on a report that Venezuela has resumed shipments to India following the easing of the U.S. sanctions.
India is the second-largest export destination for Venezuelan crude oil after China, but shipments from the OPEC member have been inconsistent because of a lack of production stability.
Adani Ports & Special Economic Zone jumped 5.5% to ₹873.90 after the cargo volume jumped 42% in November from a year ago, according to filings with exchanges.
U.S. Movers: Disney, Samsara, Ulta Beauty
Scott Peters
01 Dec, 2023
New York City
Walt Disney increased 0.2% to $92.92 after the theme park and movie studio operator reinstated its 30 cents per share dividend.
The company is battling a proxy fight challenge from activist investor Nelson Peltz, and his fund is seeking multiple board seats.
Ulta Beauty soared 11.4% to $474.48 after the company reported strong third-quarter results and tightened its full-year revenue outlook.
Revenue in the third quarter ending in October increased to $2.5 billion from $2.3 billion, comparable store sales growth plunged to 4.5% from 14.6%, and the company opened a net of 12 new stores compared to 18 a year ago.
Net income decreased to $249.5 million from $274.5 million, and diluted earnings per share fell to $5.07 from $5.34 a year ago.
The company estimated a full-year revenue range between $11.10 billion and $11.15 billion, up from the previous estimate between $11.05 billion and $11.15 billion.
The company reiterated its net new store opening estimate between 25 and 30, and its diluted earnings per share estimate was revised to a new range between $25.20 and $25.60 from the previous estimate between $25.10 and $25.60.
Comparable sales are estimated to fall between 5.0% and 5.5% from the previous estimate between 4.5% and 5.5%.
Samsara jumped 13.1% to $31.15 after the IoT company reported quarterly results.
Revenue in the third quarter ending in October rose 40% to $237.5 million from $169.8 million, net loss shrank to $45.5 million from $58.6 million, and diluted loss per share eased to 8 cents from 11 cents a year ago.
The company forecasted revenue in the fourth quarter to fall between $257 million and $259 million and for the full-year 2024 to range between $918 million and $920 million.
Revenue in the fourth quarter is expected to rise between 38% and 39%, and in the full-year advance, 41% from a year ago.
S&P 500 and Nasdaq Composite Rally Five Consecutive Weeks
Barry Adams
01 Dec, 2023
New York City
Stock market indexes traded mixed in early trading on Friday as investors await comments from Fed Chair Powell.
Benchmark indexes are set to extend the market rally to the fifth week in a row as investors support the view that the Federal Reserve is more likely to hold rates and may even lay the groundwork for cutting interest rates as early as the second quarter of 2024.
Two popular indexes jumped sharply and registered their best monthly gains in November since July 2022 as investors bid up high-growth stocks on interest rate hopes.
The S&P 500 index jumped 8.9%, and the Nasdaq Composite index advanced 11% in November.
Federal Reserve Chair Jerome Powell is set to deliver his comments at 11:00 a.m. ET at Spelman College later today.
Investors are looking forward to Powell's comments on the inner workings of the economy, job market health, and the future direction of interest rates.
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 4.70%, 10-year Treasury notes inched higher to 4.33%, and 30-year Treasury bonds were unchanged at 4.51%.
Crude oil decreased $0.25 to $75.20 a barrel, and natural gas prices fell 3 cents to $2.77 a thermal unit.
Gold decreased $1.75 to $2,037.45 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 103.43.
U.S. Stock Movers
Walt Disney increased 0.2% to $92.92 after the theme park and movie studio operator reinstated its 30 cents per share dividend.
The company is battling a proxy fight challenge from activist investor Nelson Peltz, and his fund is seeking multiple board seats.
Ulta Beauty soared 11.4% to $474.48 after the company reported strong third-quarter results and tightened its full-year revenue outlook.
Revenue in the third quarter ending in October increased to $2.5 billion from $2.3 billion, comparable store sales growth plunged to 4.5% from 14.6%, and the company opened a net of 12 new stores compared to 18 a year ago.
Net income decreased to $249.5 million from $274.5 million, and diluted earnings per share fell to $5.07 from $5.34 a year ago.
The company estimated a full-year revenue range between $11.10 billion and $11.15 billion, up from the previous estimate between $11.05 billion and $11.15 billion.
The company reiterated its net new store opening estimate between 25 and 30, and its diluted earnings per share estimate was revised to a new range between $25.20 and $25.60 from the previous estimate between $25.10 and $25.60.
Comparable sales are estimated to fall between 5.0% and 5.5% from the previous estimate between 4.5% and 5.5%.
Europe Movers: AstraZeneca, Bechtle, Capgemini, Mining Stocks, Viaplay, Swiss Re
Inga Muller
01 Dec, 2023
Frankfurt
European stocks advanced and extended weekly gains after the manufacturing sector downturn improved.
The DAX index increased 0.8% to 16,345.26, the CAC-40 index rose 0.7% to 7,358.70, and the FTSE 100 index added 0.8% to 7,512.42.
The yield on 10-year German bonds decreased to 2.42%; French bonds traded lower to 2.98%; the UK gilts declined to 4.17%; and Italian bonds inched lower to 4.16%.
Mining stocks advanced on China's hopes after the manufacturing index unexpectedly expanded in November.
Antofagasta gained 4.5% to 1,471.50 pence, Anglo American added 7% to 2,293.50 pence, and Glencore jumped 3.5% to 457.35 pence.
Viaplay Group plunged 73 to kr6.39 after the Swedish video streaming company announced its plan to restructure its debt and raise additional capital through a stock offering.
Bechtle AG decreased 4.5% to €43.39 after the information technology company announced a convertible bond offering.
The company plans to sell up to $300 million of unsecured bonds maturing in seven years with an annual interest rate between 1.75% and 2.25%.
The initial conversion price is expected to be set at a premium of between 30% and 35% above the reference share price, equal to the share price determined in a concurrent placement of existing shares from hedging transactions of individual convertible bond investors.
AstraZeneca increased 0.7% to 10,196.0 pence after the company said it was discontinuing two phase III trials into hyperkalaemia treatment.
Capgemini decreased 0.6% to €186.90 after the company said its chief financial officer, Carole Ferrand, plans to resign and pursue other career opportunities.
Swiss Re dropped 1.7% to CHF 101.55, and the reinsurance company set a new net income target ahead of its accounting standard transition to IFRS from U.S. GAAP.
The company set a new IFRS net income target of $3.6 billion, and the life and health insurance segment is expected to contribute $1.5 billion to the target.
The company's property and casualty reinsurance division is targeting a combined ration of less than 87%.
European Markets Advanced after Manufacturing Downturn Improved, Swiss GDP Expanded In Third Quarter
Bridgette Randall
01 Dec, 2023
Frankfurt
European markets extended weekly gains, and investors reviewed the latest update on manufacturing in the Euro Area and in China.
Benchmark indexes in Frankfurt, Paris, and London gained after the manufacturing downturn eased in the eurozone.
The HCOB Eurozone Manufacturing PMI improved to 44.2 in November from 43.1 in the previous month, S&P Global reported on Friday.
The manufacturing industry struggled with high inflation and slow demand, but the decline in orders, inventories, and production eased.
The Caixin China General Manufacturing PMI unexpectedly advanced to 50.7 in November from 49.5 in October. S&P Global reported Friday.
The reading above 50 indicates expansion, and the reading below 50 shows contraction.
The unexpected expansion in the sector was welcomed by investors, and the index jumped to a three-month high after production output and buying levels returned to growth.
Swiss Economy Regains Growth
The Swiss economy expanded in the third quarter by 0.3% from the previous quarter, when it shrank by 0.1%, the State Secretariat for Economic Affairs reported Friday.
The economy in the third quarter advanced 0.3% from a year ago.
The service sector drove the expansion in the quarter, and health and social care services rose 0.7% compared to 0.8% in the second quarter. Trade services edged higher by 1.1% compared to 1.9%, but business services swung to 0.1% lower from a 0.6% increase.
Swiss exports soared 6.2% after falling 2.7%, and imports rose 1.5% after falling 6.7% in the previous quarter, respectively.
UK Home Prices Index Registers the Smallest Decline In Nine Months
UK home prices rose for the third month in a row in November, the latest Nationwide House Price Index showed.
House prices rose 0.2% in the month after rising 0.9% in October and 0.1% in September.
But home prices fell 2% from a year ago and declined for the tenth month in a row.
The decline in house prices was the smallest since February, as buyers struggled with affordability amid elevated home prices and rising interest rates over the last thirteen months.
Europe Indexes and Yields
The DAX index increased 0.8% to 16,345.26, the CAC-40 index rose 0.7% to 7,358.70, and the FTSE 100 index added 0.8% to 7,512.42.
The yield on 10-year German bonds decreased to 2.42%; French bonds traded lower to 2.98%; the UK gilts declined to 4.17%; and Italian bonds inched lower to 4.16%.
The euro held at $1.089, the British pound inched lower to $1.266, and the U.S. dollar eased to 87.37 Swiss cents.
Brent crude decreased $0.03 to $80.81 a barrel, and the Dutch TTF natural gas increased by €0.11 to €42.11 per MWh.
Europe Stock Movers
Resource and mining stocks advanced on China's hopes after the manufacturing index unexpectedly expanded in November.
Antofagasta gained 4.5% to 1,471.50 pence, Anglo American added 7% to 2,293.50 pence, and Glencore jumped 3.5% to 457.35 pence.
Viaplay Group plunged 73 to kr6.39 after the Swedish video streaming company announced its plan to restructure its debt and raise additional capital through a stock offering.
Bechtle AG decreased 4.5% to €43.39 after the information technology company announced a convertible bond offering.
The company plans to sell up to $300 million of unsecured bonds maturing in seven years with an annual interest rate between 1.75% and 2.25%.
The initial conversion price is expected to be set at a premium of between 30% and 35% above the reference share price, equal to the share price determined in a concurrent placement of existing shares from hedging transactions of individual convertible bond investors.
AstraZeneca increased 0.7% to 10,196.0 pence after the company said it was discontinuing two phase III trials into hyperkalaemia treatment.
Capgemini decreased 0.6% to €186.90 after the company said its chief financial officer, Carole Ferrand, plans to resign and pursue other career opportunities.
Swiss Re dropped 1.7% to CHF 101.55, and the reinsurance company set a new net income target ahead of its accounting standard transition to IFRS from U.S. GAAP.
The company set a new IFRS net income target of $3.6 billion, and the life and health insurance segment is expected to contribute $1.5 billion to the target.
The company's property and casualty reinsurance division is targeting a combined ration of less than 87%.
Movers: Bajaj Auto, Flair Writing, ITD Cementation, Kesoram Industries, Mahindra & Mahindra
Arun Goswami
01 Dec, 2023
Mumbai
Stocks in Mumbai advanced after the economy expanded at a faster-than-expected pace in the fiscal second quarter ending in September.
The Sensex index increased 262.28 points to 66,436.58, and the Nifty index rose 122.95 points to 20,012.60.
On the Mumbai stock exchange, 181 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.
ITD Cementation India increased 6.5% to ₹286.90 after the civil construction company won an order for the construction of a 500 MW hydropower project worth ₹1,001 crore in Andhra Pradesh.
ONGC rose 0.7% to ₹196.35 and Reliance Industries advanced 0.3% to ₹196.35 after the central government lowered the windfall tax on crude oil by ₹1,300 to ₹5,000 per ton.
The windfall tax on jet fuel was lowered to 1.01 lakh per kiloliter from 1.1 lakh per kiloliter.
Flair Writing Industries traded at ₹452.70 after the office products company listed its stock at ₹503 and priced its initial public offering at ₹304 per share.
Tata Technologies declined 5.9% to ₹1,247.40 on the second day of trading after investors booked profit following the surge in the previous session.
Tata Technologies raised ₹3,040 crore and priced its stock at the upper end of its price range, ₹500 per share.
Gandhar Oil declined 5.4% to ₹283.80 on the second day of its trading after investors took profit following a sharp rise on its debut on stock exchanges.
Gandhar Oil Refinery priced its 500.7 crore offering at 169 per share.
Mahindra & Mahindra declined 0.03% to ₹1,647.10, and the vehicle maker reported a strong rise in sales in November.
Total vehicle sales rose 21% to 70,576 units, and the sale of SUVs jumped 32% to 39,981 units from a year ago, the company said in a filing with the stock exchanges.
Bajaj Auto decreased 0.8% to ₹6,039.05, and the vehicle maker said unit sales jumped 31% from a year ago.
Vehicle sales advanced to 403,003 units from 306,719 units a year ago, despite the worries of a slowdown in rural demand.
Two-wheeler domestic sales jumped 77% from a year ago to 218,597, but exports decreased 6% to 138,630.
H.G. Infra Engineering rose 2.2% to ₹868.40 after the company won a 1,303 crore order from the NHAI for the construction of the Varanasi-Ranchi-Kolkata highway.
Kesoram Industries surged 4.9% to ₹146.35 after the company agreed to sell its cement manufacturing unit valued at an enterprise value of ₹7,600 crore to Ultratech.
Aster DM Healthcare jumped 5% to ₹402.30 a day after the company struck a deal to sell its Middle East operations to a consortium of promoters and a private equity group.
Nifty and Sensex Power Ahead after Economic Growth Surpassed Expectations
Arjun Pandit
01 Dec, 2023
Mumbai
Stocks in Mumbai advanced after the Indian economy expanded at a faster than expected pace by a wide margin.
The Sensex index and the Nifty index advanced more than 0.5% after the release of the economic growth data, and stocks in power, manufacturing, and financial services led the gainers.
The total output of eight key infrastructure sectors jumped 12.1% in October from 0.7% in the same month a year ago.
September GDP Growth Surpassed Estimates
GDP in the September quarter soared 7.6% from a year ago, the Ministry of Statistics and Programme Implementation reported Thursday.
Economists were anticipating GDP to rise by around 6.3%, and the Reserve Bank of India had estimated the economy to expand at a rate of 6.5% in its latest update.
GDP expanded to ₹41.74 lakh crore from ₹38.78 lakh crore in the quarter a year ago, driven largely by an increase in government spending.
The economy expanded at a 7.7% rate in the first half, reflecting a 7.8% increase in the June quarter and 7.6% in the September quarter.
But the rate of growth is expected to slow down in the second half with the lagged effects of rate hikes, and kharif production is expected to decrease by 4.6% because of El Nino.
In the quarter, the manufacturing sector soared by 13.9%, construction by 13.3%, utilities by 10.1%, mining by 10%, and financial, real estate, and professional services by 6%.
The farming sector expanded by 1.2% because of weaker and erratic monsoon rain, negatively impacting output.
Weakness in the growth in the private sector was visible again in the latest quarter statistics.
Government spending rebounded to 12.4% from the decline of 0.7% from the previous quarter; private sector spending growth slowed to 3.1% from 6.0%; exports rebounded to 4.3% from the decrease of 7.7%; but imports increased by 16.5% from 10.1%.
India Indexes and Yields
The Sensex index increased 262.28 points to 66,436.58, and the Nifty index rose 122.95 points to 20,012.60.
On the Mumbai stock exchange, 181 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds edged up to 7.29%, and the Indian rupee weakened to ₹83.27 against the U.S. dollar.
The gold price decreased by 0.06% to ₹62,605 per ten grams, and silver increased by 0.05% to ₹77,550 per kilo.
Crude oil decreased by 1.2% to ₹6,325 per barrel, and natural gas fell by 0.2% to ₹234.20 per thermal unit.
Crude oil prices lacked direction after the OPEC+ members agreed to a collective production cut of one million barrels a day, and Saudi Arabia is expected to announce its voluntary production cut of one million barrels a day.
WTI crude oil increased $0.82 to $78.68 a barrel, and natural gas prices rose 2 cents to $2.82 a thermal unit.
WTI crude oil prices declined 6% in November and extended the 9.4% loss in September after uneven recovery in China, global economic uncertainties, and a lack of clarity of oil supplies from U.S.-sanctioned Iran and Venezuela weighed on the commodity prices.
Both the WTI and Brent crude oil prices are down 6.5% and 7.0% in the year so far.
Brazil is set to join the influential OPEC+ group of oil-producing nations in 2024, according to Brazilian Energy Minister Alexandre Silveira.
Gold decreased $4.40 to $2,039.90 an ounce after the U.S. dollar eased, but increased 2.8% in November and extended gains for the second month in a row.
The price of yellow metal jumped 13.1% in the year so far, and silver prices have advanced 10.2% in the month and 10.8% in the year so far.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.23.
India Stock Movers
ITD Cementation India increased 6.5% to ₹286.90 after the civil construction company won an order for the construction of a 500 MW hydropower project worth ₹1,001 crore in Andhra Pradesh.
ONGC rose 0.7% to ₹196.35 and Reliance Industries advanced 0.3% to ₹196.35 after the central government lowered the windfall tax on crude oil by ₹1,300 to ₹5,000 per ton.
The windfall tax on jet fuel was lowered to 1.01 lakh per kiloliter from 1.1 lakh per kiloliter.
Flair Writing Industries traded at ₹452.70 after the office products company listed its stock at ₹503 and priced its initial public offering at ₹304 per share.
Stocks and Precious Metals Surged In November, Crude Oil Eased
Barry Adams
30 Nov, 2023
New York City
Benchmark indexes lacked direction on the final day of November, and investors reviewed the latest batch of economic reports and earnings updates.
The S&P 500 index and the Nasdaq Composite are set to close November with strong gains, primarily driven by optimism about future interest rate direction.
The S&P 500 index is up 8.5% and the Nasdaq Composite is ahead by 11%, and those gains were the best monthly gains since July 2022.
Moreover, market indexes are inching closer to their 2023 highs, and the indexes are expected to retain an upward bias in the two months ahead.
Market optimism was bolstered by the latest update on personal consumption expenditure. Prices are rising at a slower pace, and personal income and spending after adjusting for inflation are still rising.
In other economic news, initial jobless claims for the week ending on November 25th rose by 7,000 to 218,000 from the revised 211,000 claims in the prior week, the Department of Labor reported Thursday.
Pending home sales declined 1.5% from the previous month in October, the National Association of Realtors reported Thursday.
Home sales dropped to the lowest level since record-keeping began in 2001, as higher mortgage rates, elevated home prices, and limited home inventory kept buyers away.
Pending home sales dropped 8.5% from a year ago in the month, following an upwardly revised 11.2% decline in September.
Investors also reacted to the fresh batch of earnings, and Salesforce, Pure Storage, Snowflake, and Five Below were in focus.
Inflation Gauge: PCE Price Index Slowed in October
The personal consumption expenditure price index was flat on a monthly basis in October, the Bureau of Economic Analysis reported Thursday.
The alternative watered-down measure of inflation was the weakest since July 2022, after rising 0.4% in September and August.
The inflation measure understates inflation because it considers buyer behavior after consumers substitute high-priced goods for cheaper alternatives, but the inflation measure is one of the most closely watched indicators by the Federal Reserve's policymakers.
The annual rate also slowed to 3.0% from 3.4% in September, a low level not seen since March 2021.
Moreover, the annual core PCE inflation, which excludes food and energy, eased to 3.5% from 3.7%, a new low in 27 months.
Personal income and spending inched up 0.2% from the previous month, the monthly report showed.
U.S. Indexes and Yields
The S&P 500 index edged up 0.2% to 4,574.18, and the Nasdaq Composite increased 0.2% to 14,282.09.
The yield on 2-year Treasury notes decreased to 4.67%, 10-year Treasury notes inched higher to 4.30%, and 30-year Treasury bonds were unchanged at 4.47%.
Crude oil prices lacked direction after the OPEC+ members agreed to a collective production cut of one million barrels a day, and Saudi Arabia is expected to announce its voluntary production cut of one million barrels a day.
WTI crude oil increased $0.82 to $78.68 a barrel, and natural gas prices rose 2 cents to $2.82 a thermal unit.
WTI crude oil prices declined 6% in November and extended the 9.4% loss in October after uneven recovery in China, global economic uncertainties, and a lack of clarity of oil supplies from U.S.-sanctioned Iran and Venezuela weighed on the commodity prices.
Both the WTI and Brent crude oil prices are down 6.5% and 7.0% in the year so far.
Brazil is set to join the influential OPEC+ group of oil-producing nations in 2024, according to Brazilian Energy Minister Alexandre Silveira.
Gold decreased $4.40 to $2,039.90 an ounce after the U.S. dollar eased, but increased 2.8% in November and extended gains for the second month in a row.
The price of yellow metal jumped 13.1% in the year so far, and silver prices have advanced 10.2% in the month and 10.8% in the year so far.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.23.
U.S. Stock Movers
Five Below was nearly unchanged at $188.0 after the deep discount retailer reported its third-quarter results.
Revenue in the third quarter increased 14.2% to $736.4 million from $645.0 million, and comparable store sales rose 2.5% from a year ago.
Net income in the quarter declined to $14.6 million from $16.1 million, and diluted earnings per share fell to 26 cents from 29 cents a year ago.
The company repurchased 500,000 shares in the third quarter at a cost of $80 million.
The company estimated net sales in the fourth quarter to be in the range of $1.32 billion to $1.35 billion, including an additional 60 stores, based on a 2% to 3% rise in comparable store sales.
Net income in the fourth quarter is estimated to be in the range of $201 million and $211 million.
Pure Storage plunged 15.7% to $32.17 after the data storage company estimated a lower-than-expected current quarter and annual revenue.
Revenue in the third quarter increased 13% to $762.8 million from $676.1 million; the company swung to net income of $70.4 million from a loss of $0.7 million; and diluted earnings per share were 21 cents compared to breakeven.
Subscription services revenue increased by 26% to $309.6 million, and subscription annual recurring revenue also increased by 26% to $1.3 billion.
Salesforce soared 9.2% to $251.53 after the customer contact management software company reported better-than-expected earnings.
Revenue in the third quarter increased 11% to $8.7 billion from $7.8 billion, net income soared to $1.2 billion from $210 million, and diluted earnings per share rose to $1.25 from 21 cents a year ago.
The company repurchased $1.9 billion of its stock in the third quarter.
The software company estimated fourth-quarter revenue to increase 10% and fall in the range of $9.18 billion and $9.23 billion and narrowed its full-year fiscal 2024 revenue outlook to an increase of 11% to between $34.75 billion and $35.8 billion.
European Markets Advanced, Bond Yields and Euro Eased
European markets edged higher after investors digested the latest inflation report in the eurozone.
Bond yields in the euro area decreased after consumer price inflation in the eurozone slowed to 2.4% in November, largely because of the higher comparison base in the previous year.
The latest inflation report confirmed the declining inflation trend, and Spain's inflation eased to 3.2% in November from 3.5%, while Germany's import price inflation declined for the eighth month in a row and fell 13% in November.
Despite the cooling inflation trend, market participants remained nervous after the U.S. GDP growth estimate in the third quarter was revised higher to 5.2% from the previous estimate of 4.9%, stoking fears that the Federal Reserve may consider keeping higher rates for longer in 2024.
Bond yields eased to new three-month lows, and the euro hovered near its two-month high against the U.S. dollar.
German Jobless Rate Increased In November.
Moreover, Germany's seasonally adjusted jobless rate rose to 5.9% in November from 5.8% in the previous month, the Federal Employment Agency reported Thursday.
The unemployment rate rose to the highest level since May 2021, after the number of job seekers increased by 22,000 to 2.702 million.
The number of unemployed rose by 175,000, but the number of job openings declined by 90,000 from a year ago.
Eurozone Inflation Eased in November
The consumer price inflation rate in the Euro Area declined to 2.4% from a year ago in November, Eurostat reported Thursday.
Overall inflation declined to the lowest level since July 2021 and eased from 2.9% in October, reflecting weakening energy prices from a year ago.
Meanwhile, the core rate of inflation, which excludes volatile energy and food prices, declined to 3.6% from 4.2% in the previous month, the lowest since April 2022.
Energy prices dropped at a faster pace of 11.5% compared to 11.2% in October; food, alcohol, and tobacco inflation slowed to 6.9% from 7.4%; service inflation eased to 4.0% from 4.6%; and non-energy industrial goods inflation inched lower to 2.9% from 3.5%.
Europe Indexes and Yields
The DAX index increased 0.4% to 16,234.86, the CAC-40 index rose 0.7% to 7,320.56, and the FTSE 100 index added 0.3% to 7,444.79.
In November, the DAX index increased 9.5%, the CAC-40 index advanced 4.5%, and the FTSE 100 index gained 1.5%.
The yield on 10-year German bonds decreased to 2.41%; French bonds traded lower to 3.0%; the UK gilts declined to 4.14%; and Italian bonds inched higher to 4.19%.
The euro held at $1.091, the British pound inched lower to $1.264, and the U.S. dollar eased to 87.47 Swiss cents.
Brent crude increased $2.57 to $80.25 a barrel, and the Dutch TTF natural gas increased by €1.70 to €42.06 per MWh.
Europe Stock Movers
Mining stocks advanced, tracking higher commodity prices.
Glencore jumped 1.1% to 448.90 pence, Anglo American edged up a fraction to 2,145.20 pence, and Antofagasta rose 0.1% to 1,419.50 pence.
Energy stocks gained in London trading as OPEC+ members meet to discuss production quotas and support higher prices in international markets.
BP gained 2.4% to 485.74 pence, Shell advanced 1.2% to 2,584.50 pence, Repsol inched higher 1.4% to €14.23, and TotalEnergies jumped 1.6% to €62.79.
Banks traded higher after rate hike worries following the easing of inflation in the currency union.
Banco Santander rose 1.0% to €3.84, Deutsche Bank gained 2.1% to €11.50, UniCredit eased 0.2% to €25.26, Barclays added 0.3% to 140.84 pence, and HSBC advanced 0.8% to 599.50 pence.
German industrial engineering and vehicle makers were in focus after the jobless rate eased in November.
Volkswagen Group decreased 0.8% to €105.98, BMW gained 0.1% to €96.18, and Mercedes-Benz Group eased 0.01% to €59.28.
Siemens gained 0.5% to €153.64, ThyssenKrupp eased 1% to €6.95, and MTU Aero Engines decreased 0.6% to €186.65.
PCE Price Index Slowed In October
Brian Turner
30 Nov, 2023
New York City
The personal consumption expenditure price index was flat on a monthly basis in October, the Bureau of Economic Analysis reported Thursday.
The alternative watered-down measure of inflation, preferred by policymakers, was the weakest since July 2022, after rising 0.4% in September and August.
The annual rate also slowed to 3.0% from 3.4% in September, a low level not seen since March 2021.
Services prices and food prices rose 0.2% on the month, but goods prices declined 0.3% and energy prices fell 2.6%, weakening the price increase in the month.
Moreover, the annual core PCE inflation, which excludes food and energy, eased to 3.5% from 3.7%, a new low in 27 months.
Personal income and spending inched up 0.2% from the previous month, the monthly report showed.