Market Update
India Movers: Godavari Refineries, IRB Developers, Larsen & Toubro, Tata Power
Arun Goswami
31 Oct, 2024
Mumbai
Stocks in Mumbai struggled to advance as foreign investors continued to trim their holdings amid a batch of mixed earnings.
Global investors dialed down aggressive rate-cut expectations after the U.S. and the eurozone reported third quarter GDP growth rates.
The Sensex index decreased by 0.2% to 79,780.81, and the Nifty index fell by 0.1% to 24,309.45.
On the Mumbai stock exchange, 56 stocks traded at their 52-week highs, and 11 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.83%, and the Indian rupee eased to 84.08 against the U.S. dollar.
Larsen & Toubro increased 0.6% to ₹3,402.0 after the infrastructure services provider reported September quarter results.
Consolidated income increased to ₹62,655.85 crore from ₹52,157.02 crore, and net income advanced 5% to ₹3,395 crore.
Tata Power increased 0.4% to ₹431.85 after the company reported a net income increase for the 20th quarter in a row.
Consolidated revenue in the September quarter increased to ₹16,210.80 crore from ₹16,029.5 crore, net income advanced to ₹1,093.08 crore from ₹1,014.4 crore, and diluted earnings per share rose to ₹2.90 from ₹2.74 from a year earlier.
The company said its order inflow in the solar EPC unit swelled to ₹15,900 crore.
Godavari Biorefineries traded at ₹343.90, and the company listed its share at ₹308 and priced its offering at ₹352 per share, respectively.
IRB Infrastructure Developers declined 2% to ₹52.90 after the company reported a decline in revenue in the September quarter.
Consolidated revenue decreased to ₹1,751.16 crore from ₹1,874.50 crore, and net income rose 4% to ₹99.86 crore from a year earlier, respectively.
U.S. and Global Investors Lower Aggressive Rate-Cut Expectations
Alexander Garcia
30 Oct, 2024
Miami
Stock market indexes on Wall Street fluctuated around the flatline as investors weighed slower GDP growth and a flood of earnings from leading corporations.
The S&P 500 index gained 0.05% and the tech-heavy Nasdaq Composite gained 0.1% in choppy trading.
The tech-heavy index jumped to a new intraday record high after Google-parent Alphabet Inc. reported a sharp jump in revenue and earnings in the third quarter.
On the economic front, the annual pace of GDP growth in the third quarter slowed to 2.8% from 3.0% in the second quarter, the U.S. Bureau of Economic Analysis reported Wednesday.
The private sector added jobs at the fastest pace in more than a year, according to the October update from ADP.
Private payrolls expanded to 233,000 in October, faster than the upwardly revised 159,000 in September.
Businesses added employees at the fastest pace since July 2023, despite the two devastating hurricanes, strikes at ports on the Eastern Seaboard and Boeing, and a round of layoffs at tech companies in the Silicon Valley.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,838.58, the Nasdaq Composite rose 0.1% to 18,725.65, and the Russell 2000 index advanced 0.4% to 2,248.03.
The yield on 2-year Treasury notes edged lower to 4.14%, 10-year Treasury notes inched lower to 4.25%, and 30-year Treasury bonds inched lower to 4.47%.
WTI crude oil increased $1.45 to $68.64 a barrel, and natural gas prices edged down 1 cent to $2.84 a thermal unit.
Gold fell by $12.84 to $2,788.12 an ounce, and silver decreased by $0.55 to $33.92.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.32.
U.S. Stock Movers
Advanced Micro Devices dropped 8.9% to $151.43 after the company's quarterly results and guidance fell short of investor expectations.
Third quarter revenue increased 18% to $6.8 billion from $5.8 billion, net income advanced 158% to $771 million from $299 million, and diluted earnings per share rose to 47 cents from 18 cents a year ago.
The company estimated a fourth quarter revenue increase of 22% from a year ago to $7.5 billion and a non-GAAP gross margin of 54%.
Super Micro Computer plunged 31% to $33.95 after the company's auditors, Ernst & Young, resigned, citing material weakness in internal control.
The company has still not released its financial statements for this year, and the company is reportedly under federal investigation.
“We are resigning due to information that has recently come to our attention, which has led us to no longer be able to rely on management’s and the Audit Committee’s representations,” Ernst & Young said in their resignation letter.
Chipotle Mexican Grill declined 7% to $56.24 after the fast food chain operator reported weaker-than-expected same store sales growth and revenue in the third quarter.
Third quarter revenue increased 13% to $2.8 billion from $2.5 billion, net income advanced to $387.4 million from $313.2 million, and diluted earnings per share rose to 28 cents from 23 cents a year ago.
Same-store sales growth in the quarter slowed sharply to 6% from 11.2% in the previous quarter.
During the third quarter, the company repurchased $488.1 million of stock at an average price per share of $54.55, and $1.1 billion remained available at the end of the period.
Visa Inc. increased 3.3% to $291.02 after the payment processor reported better-than-expected quarterly results.
Net revenue in the fiscal fourth quarter ending in September increased 12% to $9.6 billion from $8.6 billion, net income advanced 14% to $5.3 billion from $4.7 billion, and diluted earnings per share rose 17% to $2.65 from $2.27 a year earlier.
In the quarter, payment volume jumped 8%, processed transactions rose 10%, and cross-border volume advanced 13% from a year ago, respectively.
The company declared a cash dividend of 59 cents per share payable on December 2 to all shareholders on record on November 12.
During the quarter, the company repurchased 22 million of its Class A common stocks for an average price of $270.85, or $5.8 billion.
Alphabet Inc. Class A increased 6.3% to $180.40 after the search and cloud computing company reported better-than-expected revenue growth.
Consolidated revenue in the third quarter increased 15% to $88.3 billion from $76.7 billion, net income advanced to $26.3 billion from $19.7 billion, and diluted earnings per share rose to $2.12 from $1.55 a year ago.
The company said cloud segment revenue increased 35% to $11.4 billion, led by accelerated growth in its core products and artificial intelligence-driven products and services.
Eurozone GDP Growth Accelerated, Standard Chartered and UBS In Focus After Earnings
Stock market indexes in the eurozone traded down as investors reviewed the latest batch of corporate results.
Benchmark indexes in Paris, Milan, Frankfurt, and London traded in a tight range with a downward bias after investors scaled back rate-cut expectations following stronger-than-expected economic growth in the eurozone.
Eurozone GDP growth accelerated in the third quarter, and all four leading economies of the region reported better-than-expected quarterly updates.
A mixed batch of corporate earnings also weighed on the market sentiment after Volkswagen, Moncler, Capgemini, Campari Milano, and GSK reported results.
Eurozone GDP Growth Accelerated In the Third Quarter
Seasonally adjusted third quarter GDP growth accelerated to 0.9% from a year ago, Eurostat reported on Wednesday.
The estimate is preliminary, based on incomplete data, and subject to significant revisions.
From the previous quarter, seasonally adjusted growth increased 0.4%, after expanding 0.2% in the previous quarter.
GDP expanded 0.2% in Germany, 0.4% in France, and 0.8% in Spain but stalled in Italy from the previous quarter, respectively.
From a year ago, GDP contracted in Germany by 0.2% but rose 0.4% in Italy, 1.3% in France, and 3.4% in Spain.
GDP Growth In France and Germany Diverges In the Third Quarter
Separately, Germany and France reported their estimates of economic growth in the third quarter.
Seasonally adjusted real GDP growth decreased 0.2% from a year ago in the third quarter, according to the Federal Statistics Office, or Destatis.
The statistical office also revised the second quarter GDP contraction estimate to 0.3% from the previous estimate of 0.1%.
However, seasonally adjusted third quarter real GDP growth accelerated to 0.4% from 0.2% in the second quarter, stimulated by the Paris Olympics and Paralympic games, according to France's statistical office, INSEE.
Europe Indexes and Yields
The DAX index decreased by 1.1% to 19,257.34; the CAC-40 index fell by 1.1% to 7,428.36; and the FTSE 100 index fell by 0.7% to 8,159.63.
The yield on 10-year German bonds edged lower to 2.30%, French bonds inched higher to 3.05%, the UK gilts edged down to 4.22%, and Italian bonds increased to 3.56%.
The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar strengthened to 86.72 Swiss cents.
Brent crude increased $1.40 to $72.52 a barrel, and the Dutch TTF natural gas fell by €0.79 to €41.52 per MWh.
Europe Stock Movers
UBS AG declined 1.9% to CHF 27.92 despite the Swiss bank reporting higher-than-expected third quarter earnings of $1.4 billion, driven by cost cutting and higher loan income.
Standard Chartered PLC increased 3.2% to 904.0 pence after the UK-based bank upgraded its 2024 net income outlook after profit increased in the third quarter.
SKF AB Class B increased 2.5% to SEK 208.40 after the Swedish bearings maker agreed to sell its Hanover, Pennsylvania, plant for SEK 2.6 billion, or $216 million.
Moncler SpA declined 2.4% to €51.74 after the Italian outdoor fashion company reported a fall in revenue in the third quarter.
Revenue in the nine-month period increased 6% on a constant currency basis to €1.87 billion from €1.81 billion a year ago.
Third quarter revenue decreased 3%, driven by a 9% decline in the wholesale channel.
Sales in Asia led the rise across all regions and increased 11%, followed by a 6% rise in the wider region of Europe, the Middle East, and Africa, and a modest rise of 3% in the Americas.
Capgemini SA decreased 6.7% to €164.25 after the technology services provider lowered its 2024 revenue outlook for the second time this year.
Volkswagen AG increased 1.4% to €93.65 after the German vehicle maker reported slightly higher-than-expected revenue but operating profit plunged 42%.
The vehicle maker also reiterated its annual revenue outlook.
Schneider Electric SE decreased 0.3% to €240.20 despite the energy management and automation company reporting record revenue in the third quarter and reiterating its annual sales outlook.
Sales in the third quarter increased 8% to €9.31 billion, driven by strong performance in its systems and services segments.
Japan Indexes Extended Rally to Third Day, Hino Motor Plunged 11%
Market indexes in Tokyo advanced and extended gains for the third session in a row following gains in tech stocks in overnight trading in New York.
The Nikkei 225 stock average increased 1%, and the Topix index edged up 0.8%, powered by the increase in advanced semiconductor equipment makers.
Despite the three-day market gains, investors are on edge amid heightened political instability as leading political parties struggle to form the next government.
The ruling Liberal Democratic Party and Komeito coalition is searching for additional partners and seeking alliances with independent candidates to reach the required majority of 233 members in the lower house of the parliament.
The Bank of Japan is scheduled to announce its rate decisions on Thursday, and the central bank is widely expected to hold steady interest rates.
Japan's policymakers are struggling to wean off the economy from its reliance on negative interest rates for decades and fight deflationary conditions amid stagnant wages.
For nearly three decades, large Japanese corporations have preferred to invest in foreign countries and not repatriate overseas profits, the root cause of two decades of stagnant wages in Japan.
Moreover, the current weakness in the Japanese yen has contributed to capital flight, sucking more capital from the domestic economy.
Japan Stock Movers
The Nikkei 225 Stock Average increased 1% to 39,277.39, and the broader Topix index advanced 0.8% to 2,703.72.
Advanced semiconductor equipment makers led the gainers on the Tokyo Stock Exchange.
Disco Corp. soared 11.2% to ¥45,320.0, Advantest gained 3.5% to ¥8,595.0, and Tokyo Electron increased 0.1% to ¥24,010.0.
Mitsubishi UFJ Financial Group increased 1.2% to ¥1,629.0, Sumitomo Mitsui Financial Group advanced 0.9% to ¥3,270.0, and Mizuho Financial gained 0.7% to ¥3,223.0.
Crude oil and natural prices drifted towards the 2024 low, driving stocks of electric utility companies higher.
Furukawa Electric jumped 3.9% to ¥3,864.0, Kansai Electric Power advanced 4.7% to ¥2,607.0, Chubu Electric Power gained 3% to ¥1,756.50.
Hino Motors plunged 13.4% to ¥406.10 after the scandal-hit vehicle maker reported a huge loss and revised its annual outlook.
The truck maker admitted that fuel emission data have been tampered with dating as far back as 2003 and not since 2016, as reported previously.
The company in the first-half reported a net loss of 219 billion yen, or $1.4 billion, after it took an extraordinary loss of 230 billion yen linked to its legacy certification issues in the U.S. and class action settlement in Canada, which were discovered in 2022.
The company estimated a full-year net loss of 220 billion yen and forecast additional losses linked to the emission data falsification scandal.
China Indexes Fall 1% Amid Fiscal Measures Uncertainty and Weak Earnings Growth Outlook
Stock market indexes in China and Hong Kong turned lower ahead of a key legislative meeting that could pave the way for a large fiscal stimulus package.
The Hang Seng index dropped nearly 2% and the CSI 300 index fell more than 1% ahead of the National People's Congress Standing Committee meeting next week.
Investors have priced in expectations of at least 2 trillion yuan in additional government spending to revive the housing market after four years of malaise.
Stock market indexes in China are likely to tread water in the near term amid earnings-season uncertainty, and rising trade tensions with the European Union are adding to market anxiety.
Moreover, the U.S. presidential election is also raising tensions, as both leading candidates have pledged to impose punitive tariffs on Chinese goods shipped from China, Mexico, Malaysia, and Vietnam.
China Stock Movers
The Hang Seng index dropped 1.8% to 20,337.01, and the mainland-focused CSI 300 index declined 1.4% to 3,870.12.
China Merchants Bank declined 3.8% to HK $37.85, and the largest retail bank said net income in the first nine months in 2024 increased 0.6%.
Haier Smart Home declined 2.9% to HK $28.95 after the home appliance maker reported weaker-than-expected profit in the third quarter.
WH Group Ltd. rose 1.0% to HK $6.34 after the pork processor reported net income surged 97% in the nine months to September in 2024.
Electric vehicle makers traded down after the European Union imposed tariffs between 18% and 20% on Chinese vehicles shipped to the region.
Geely Automobile declined 2.7% to HK $14.46, Li Auto fell 3% to HK $108.10, and BYD fell 0.5% to HK $295.40.
Jiangsu Lopal Tech dropped 7% to HK $5.01 after the new energy material company priced its initial public offering and listed its share on the Hong Kong Stock Exchange.
The company priced its offering of 100 million shares at HK $5.50 per share and raised HK $495 million.
The international tranche of 90 million shares was oversubscribed 3.2 times, and the domestic tranche of 10 million shares received applications for nearly 4 times the offered shares.
U.S. Third Quarter GDP Growth Slowed to 2.8%, Private Sector Hiring Picked Up Pace In October
Barry Adams
30 Oct, 2024
New York City
Stock market indexes on Wall Street retained upward bias as investors reviewed the latest batch of positive earnings and economic releases.
The S&P 500 index gained 0.2% and the tech-heavy Nasdaq Composite gained 0.1% in choppy trading.
The tech-heavy index jumped to a new intraday record high after Google-parent Alphabet Inc. reported a sharp jump in revenue and earnings in the third quarter.
On the economic front, the annual pace of GDP growth in the third quarter slowed to 2.8% from 3.0% in the second quarter, the U.S. Bureau of Economic Analysis reported Wednesday.
The private sector added jobs at the fastest pace in more than a year, according to the October update from ADP.
Private payrolls expanded to 233,000 in October, faster than the upwardly revised 159,000 in September.
Businesses added employees at the fastest pace since July 2023, despite the two devastating hurricanes, strikes at ports on the Eastern Seaboard and Boeing, and a round of layoffs at tech companies in the Silicon Valley.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,843.07, the Nasdaq Composite rose 0.2% to 18,748.21, and the Russell 2000 index advanced 0.7% to 2,254.91.
The yield on 2-year Treasury notes edged lower to 4.14%, 10-year Treasury notes inched lower to 4.25%, and 30-year Treasury bonds inched lower to 4.47%.
WTI crude oil increased $1.05 to $68.27 a barrel, and natural gas prices edged down 5 cents to $2.79 a thermal unit.
Gold fell by $8.80 to $2,783.86 an ounce, and silver decreased by $0.57 to $33.90.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.34.
U.S. Stock Movers
Advanced Micro Devices dropped 8.9% to $151.43 after the company's quarterly results and guidance fell short of investor expectations.
Third quarter revenue increased 18% to $6.8 billion from $5.8 billion, net income advanced 158% to $771 million from $299 million, and diluted earnings per share rose to 47 cents from 18 cents a year ago.
The company estimated a fourth quarter revenue increase of 22% from a year ago to $7.5 billion and a non-GAAP gross margin of 54%.
Super Micro Computer plunged 31% to $33.95 after the company's auditors, Ernst & Young, resigned, citing material weakness in internal control.
The company has still not released its financial statements for this year, and the company is reportedly under federal investigation.
“We are resigning due to information that has recently come to our attention, which has led us to no longer be able to rely on management’s and the Audit Committee’s representations,” Ernst & Young said in their resignation letter.
Chipotle Mexican Grill declined 7% to $56.24 after the fast food chain operator reported weaker-than-expected same store sales growth and revenue in the third quarter.
Third quarter revenue increased 13% to $2.8 billion from $2.5 billion, net income advanced to $387.4 million from $313.2 million, and diluted earnings per share rose to 28 cents from 23 cents a year ago.
Same-store sales growth in the quarter slowed sharply to 6% from 11.2% in the previous quarter.
During the third quarter, the company repurchased $488.1 million of stock at an average price per share of $54.55, and $1.1 billion remained available at the end of the period.
Visa Inc. increased 3.3% to $291.02 after the payment processor reported better-than-expected quarterly results.
Net revenue in the fiscal fourth quarter ending in September increased 12% to $9.6 billion from $8.6 billion, net income advanced 14% to $5.3 billion from $4.7 billion, and diluted earnings per share rose 17% to $2.65 from $2.27 a year earlier.
In the quarter, payment volume jumped 8%, processed transactions rose 10%, and cross-border volume advanced 13% from a year ago, respectively.
The company declared a cash dividend of 59 cents per share payable on December 2 to all shareholders on record on November 12.
During the quarter, the company repurchased 22 million of its Class A common stocks for an average price of $270.85, or $5.8 billion.
Alphabet Inc. Class A increased 6.3% to $180.40 after the search and cloud computing company reported better-than-expected revenue growth.
Consolidated revenue in the third quarter increased 15% to $88.3 billion from $76.7 billion, net income advanced to $26.3 billion from $19.7 billion, and diluted earnings per share rose to $2.12 from $1.55 a year ago.
The company said cloud segment revenue increased 35% to $11.4 billion, led by accelerated growth in its core products and artificial intelligence-driven products and services.
U.S. Movers: Alphabet, AMD, Chipotle Mexican Grill, Super Micro, Visa
Scott Peters
30 Oct, 2024
New York City
Advanced Micro Devices dropped 8.9% to $151.43 after the company's quarterly results and guidance fell short of investor expectations.
Third quarter revenue increased 18% to $6.8 billion from $5.8 billion, net income advanced 158% to $771 million from $299 million, and diluted earnings per share rose to 47 cents from 18 cents a year ago.
The company estimated a fourth quarter revenue increase of 22% from a year ago to $7.5 billion and a non-GAAP gross margin of 54%.
Super Micro Computer plunged 31% to $33.95 after the company's auditors, Ernst & Young, resigned, citing material weakness in internal control.
The company has still not released its financial statements for this year, and the company is reportedly under federal investigation.
“We are resigning due to information that has recently come to our attention, which has led us to no longer be able to rely on management’s and the Audit Committee’s representations,” Ernst & Young said in their resignation letter.
Chipotle Mexican Grill declined 7% to $56.24 after the fast food chain operator reported weaker-than-expected same store sales growth and revenue in the third quarter.
Third quarter revenue increased 13% to $2.8 billion from $2.5 billion, net income advanced to $387.4 million from $313.2 million, and diluted earnings per share rose to 28 cents from 23 cents a year ago.
Same-store sales growth in the quarter slowed sharply to 6% from 11.2% in the previous quarter.
During the third quarter, the company repurchased $488.1 million of stock at an average price per share of $54.55, and $1.1 billion remained available at the end of the period.
Visa Inc. increased 3.3% to $291.02 after the payment processor reported better-than-expected quarterly results.
Net revenue in the fiscal fourth quarter ending in September increased 12% to $9.6 billion from $8.6 billion, net income advanced 14% to $5.3 billion from $4.7 billion, and diluted earnings per share rose 17% to $2.65 from $2.27 a year earlier.
In the quarter, payment volume jumped 8%, processed transactions rose 10%, and cross-border volume advanced 13% from a year ago, respectively.
The company declared a cash dividend of 59 cents per share payable on December 2 to all shareholders on record on November 12.
During the quarter, the company repurchased 22 million of its Class A common stocks for an average price of $270.85, or $5.8 billion.
Alphabet Inc. Class A increased 6.3% to $180.40 after the search and cloud computing company reported better-than-expected revenue growth.
Consolidated revenue in the third quarter increased 15% to $88.3 billion from $76.7 billion, net income advanced to $26.3 billion from $19.7 billion, and diluted earnings per share rose to $2.12 from $1.55 a year ago.
The company said cloud segment revenue increased 35% to $11.4 billion, led by accelerated growth in its core products and artificial intelligence-driven products and services.
Europe Movers: Capgemini, Moncler, SKF, Schneider Electric, Standard Chartered, UBS, Volkswagen
Inga Muller
30 Oct, 2024
Frankfurt
GDP growth in the eurozone accelerated in the third quarter, and four leading economies of the region reported better-than-expected activities.
Investors reacted to a mixed batch of earnings, including results from Volkswagen, UBS, Standard Chartered, and GSK.
The DAX index decreased by 0.9% to 19,310.77; the CAC-40 index fell by 1.4% to 7,404.42; and the FTSE 100 index fell by 0.3% to 8,195.15.
The yield on 10-year German bonds edged lower to 2.30%, French bonds inched higher to 3.05%, the UK gilts edged down to 4.22%, and Italian bonds increased to 3.56%.
UBS AG declined 1.9% to CHF 27.92 despite the Swiss bank reporting higher-than-expected third quarter earnings of $1.4 billion, driven by cost cutting and higher loan income.
Standard Chartered PLC increased 3.2% to 904.0 pence after the UK-based bank upgraded its 2024 net income outlook after profit increased in the third quarter.
SKF AB Class B increased 2.5% to SEK 208.40 after the Swedish bearings maker agreed to sell its Hanover, Pennsylvania, plant for SEK 2.6 billion, or $216 million.
Moncler SpA declined 2.4% to €51.74 after the Italian outdoor fashion company reported a fall in revenue in the third quarter.
Revenue in the nine-month period increased 6% on a constant currency basis to €1.87 billion from €1.81 billion a year ago.
Third quarter revenue decreased 3%, driven by a 9% decline in the wholesale channel.
Sales in Asia led the rise across all regions and increased 11%, followed by a 6% rise in the wider region of Europe, the Middle East, and Africa, and a modest rise of 3% in the Americas.
Capgemini SA decreased 6.7% to €164.25 after the technology services provider lowered its 2024 revenue outlook for the second time this year.
Volkswagen AG increased 1.4% to €93.65 after the German vehicle maker reported slightly higher-than-expected revenue but operating profit plunged 42%.
The vehicle maker also reiterated its annual revenue outlook.
Schneider Electric SE decreased 0.3% to €240.20 despite the energy management and automation company reporting record revenue in the third quarter and reiterating its annual sales outlook.
Sales in the third quarter increased 8% to €9.31 billion, driven by strong performance in its systems and services segments.
Eurozone GDP Growth Accelerated, Standard Chartered and UBS In Focus After Earnings
Bridgette Randall
30 Oct, 2024
London
Stock market indexes in the eurozone traded down as investors reviewed the latest batch of corporate results.
Benchmark indexes in Paris, Milan, Frankfurt, and London traded in a tight range with a downward bias after investors scaled back rate-cut expectations following stronger-than-expected economic growth in the eurozone.
Eurozone GDP growth accelerated in the third quarter, and all four leading economies of the region reported better-than-expected quarterly updates.
A mixed batch of corporate earnings also weighed on the market sentiment after Volkswagen, Moncler, Capgemini, Campari Milano, and GSK reported results.
Eurozone GDP Growth Accelerated In the Third Quarter
Seasonally adjusted third quarter GDP growth accelerated to 0.9% from a year ago, Eurostat reported on Wednesday.
The estimate is preliminary, based on incomplete data, and subject to significant revisions.
From the previous quarter, seasonally adjusted growth increased 0.4%, after expanding 0.2% in the previous quarter.
GDP expanded 0.2% in Germany, 0.4% in France, and 0.8% in Spain but stalled in Italy from the previous quarter, respectively.
From a year ago, GDP contracted in Germany by 0.2% but rose 0.4% in Italy, 1.3% in France, and 3.4% in Spain.
GDP Growth In France and Germany Diverges In the Third Quarter
Separately, Germany and France reported their estimates of economic growth in the third quarter.
Seasonally adjusted real GDP growth decreased 0.2% from a year ago in the third quarter, according to the Federal Statistics Office, or Destatis.
The statistical office also revised the second quarter GDP contraction estimate to 0.3% from the previous estimate of 0.1%.
However, seasonally adjusted third quarter real GDP growth accelerated to 0.4% from 0.2% in the second quarter, stimulated by the Paris Olympics and Paralympic games, according to France's statistical office, INSEE.
Europe Indexes and Yields
The DAX index decreased by 0.9% to 19,310.77; the CAC-40 index fell by 1.4% to 7,404.42; and the FTSE 100 index fell by 0.3% to 8,195.15.
The yield on 10-year German bonds edged lower to 2.30%, French bonds inched higher to 3.05%, the UK gilts edged down to 4.22%, and Italian bonds increased to 3.56%.
The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar strengthened to 86.72 Swiss cents.
Brent crude increased $0.64 to $71.76 a barrel, and the Dutch TTF natural gas fell by €0.02 to €42.29 per MWh.
Europe Stock Movers
UBS AG declined 1.9% to CHF 27.92 despite the Swiss bank reporting higher-than-expected third quarter earnings of $1.4 billion, driven by cost cutting and higher loan income.
Standard Chartered PLC increased 3.2% to 904.0 pence after the UK-based bank upgraded its 2024 net income outlook after profit increased in the third quarter.
SKF AB Class B increased 2.5% to SEK 208.40 after the Swedish bearings maker agreed to sell its Hanover, Pennsylvania, plant for SEK 2.6 billion, or $216 million.
Moncler SpA declined 2.4% to €51.74 after the Italian outdoor fashion company reported a fall in revenue in the third quarter.
Revenue in the nine-month period increased 6% on a constant currency basis to €1.87 billion from €1.81 billion a year ago.
Third quarter revenue decreased 3%, driven by a 9% decline in the wholesale channel.
Sales in Asia led the rise across all regions and increased 11%, followed by a 6% rise in the wider region of Europe, the Middle East, and Africa, and a modest rise of 3% in the Americas.
Capgemini SA decreased 6.7% to €164.25 after the technology services provider lowered its 2024 revenue outlook for the second time this year.
Volkswagen AG increased 1.4% to €93.65 after the German vehicle maker reported slightly higher-than-expected revenue but operating profit plunged 42%.
The vehicle maker also reiterated its annual revenue outlook.
Schneider Electric SE decreased 0.3% to €240.20 despite the energy management and automation company reporting record revenue in the third quarter and reiterating its annual sales outlook.
Sales in the third quarter increased 8% to €9.31 billion, driven by strong performance in its systems and services segments.
Japan Indexes Extended Rally to Third Day, Hino Motor Plunged 11%
Akira Ito
30 Oct, 2024
Tokyo
Market indexes in Tokyo advanced and extended gains for the third session in a row following gains in tech stocks in overnight trading in New York.
The Nikkei 225 stock average increased 1%, and the Topix index edged up 0.8%, powered by the increase in advanced semiconductor equipment makers.
Despite the three-day market gains, investors are on edge amid heightened political instability as leading political parties struggle to form the next government.
The ruling Liberal Democratic Party and Komeito coalition is searching for additional partners and seeking alliances with independent candidates to reach the required majority of 233 members in the lower house of the parliament.
The Bank of Japan is scheduled to announce its rate decisions on Thursday, and the central bank is widely expected to hold steady interest rates.
Japan's policymakers are struggling to wean off the economy from its reliance on negative interest rates for decades and fight deflationary conditions amid stagnant wages.
For nearly three decades, large Japanese corporations have preferred to invest in foreign countries and not repatriate overseas profits, the root cause of two decades of stagnant wages in Japan.
Moreover, the current weakness in the Japanese yen has contributed to capital flight, sucking more capital from the domestic economy.
Japan Stock Movers
The Nikkei 225 Stock Average increased 1% to 39,277.39, and the broader Topix index advanced 0.8% to 2,703.72.
Advanced semiconductor equipment makers led the gainers on the Tokyo Stock Exchange.
Disco Corp. soared 11.2% to ¥45,320.0, Advantest gained 3.5% to ¥8,595.0, and Tokyo Electron increased 0.1% to ¥24,010.0.
Mitsubishi UFJ Financial Group increased 1.2% to ¥1,629.0, Sumitomo Mitsui Financial Group advanced 0.9% to ¥3,270.0, and Mizuho Financial gained 0.7% to ¥3,223.0.
Crude oil and natural prices drifted towards the 2024 low, driving stocks of electric utility companies higher.
Furukawa Electric jumped 3.9% to ¥3,864.0, Kansai Electric Power advanced 4.7% to ¥2,607.0, Chubu Electric Power gained 3% to ¥1,756.50.
Hino Motors plunged 13.4% to ¥406.10 after the scandal-hit vehicle maker reported a huge loss and revised its annual outlook.
The truck maker admitted that fuel emission data have been tampered with dating as far back as 2003 and not since 2016, as reported previously.
The company in the first-half reported a net loss of 219 billion yen, or $1.4 billion, after it took an extraordinary loss of 230 billion yen linked to its legacy certification issues in the U.S. and class action settlement in Canada, which were discovered in 2022.
The company estimated a full-year net loss of 220 billion yen and forecast additional losses linked to the emission data falsification scandal.
China Indexes Fall 1% Amid Fiscal Measures Uncertainty and Weak Earnings Growth Outlook
Li Chen
30 Oct, 2024
Hong Kong
Stock market indexes in China and Hong Kong turned lower ahead of a key legislative meeting that could pave the way for a large fiscal stimulus package.
The Hang Seng index dropped nearly 2% and the CSI 300 index fell more than 1% ahead of the National People's Congress Standing Committee meeting next week.
Investors have priced in expectations of at least 2 trillion yuan in additional government spending to revive the housing market after four years of malaise.
Stock market indexes in China are likely to tread water in the near term amid earnings-season uncertainty, and rising trade tensions with the European Union are adding to market anxiety.
Moreover, the U.S. presidential election is also raising tensions, as both leading candidates have pledged to impose punitive tariffs on Chinese goods shipped from China, Mexico, Malaysia, and Vietnam.
China Stock Movers
The Hang Seng index dropped 1.8% to 20,337.01, and the mainland-focused CSI 300 index declined 1.4% to 3,870.12.
China Merchants Bank declined 3.8% to HK $37.85, and the largest retail bank said net income in the first nine months in 2024 increased 0.6%.
Haier Smart Home declined 2.9% to HK $28.95 after the home appliance maker reported weaker-than-expected profit in the third quarter.
WH Group Ltd. rose 1.0% to HK $6.34 after the pork processor reported net income surged 97% in the nine months to September in 2024.
Electric vehicle makers traded down after the European Union imposed tariffs between 18% and 20% on Chinese vehicles shipped to the region.
Geely Automobile declined 2.7% to HK $14.46, Li Auto fell 3% to HK $108.10, and BYD fell 0.5% to HK $295.40.
Jiangsu Lopal Tech dropped 7% to HK $5.01 after the new energy material company priced its initial public offering and listed its share on the Hong Kong Stock Exchange.
The company priced its offering of 100 million shares at HK $5.50 per share and raised HK $495 million.
The international tranche of 90 million shares was oversubscribed 3.2 times, and the domestic tranche of 10 million shares received applications for nearly 4 times the offered shares.
India Movers: Adani Ports, Cipla, Deepak Fertilisers, HUDCO, Marico, Voltas
Arun Goswami
30 Oct, 2024
Mumbai
Market indexes on Dalal Street extended losses amid persistent selling by foreign investors following stretched valuations and elevated geopolitical uncertainties.
The Sensex index decreased by 0.3% to 80,105.46, and the Nifty index fell by 0.3% to 24,401.45.
On the Mumbai stock exchange, 21 stocks traded at their 52-week highs, and 16 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.85%, and the Indian rupee eased to 84.07 against the U.S. dollar.
Deepak Fertilisers & Petrochemicals increased 3% to ₹1,274.55 after the company reported sharply higher revenue and earnings in the September quarter.
Consolidated operating revenue increased 12.7% to ₹2,753.6 crore, and net income soared threefold to ₹214.07 crore from a year ago, respectively.
HUDCO declined 1.8% to ₹212.60 after the housing finance company reported a rise in revenue and earnings in the September quarter.
Operating revenue increased to ₹2,526.1 crore from ₹1,880.9 crore, and net income advanced 52% to ₹688.6 crore from ₹452 crore a year ago, respectively.
Adani Ports and SEZ Ltd. increased 0.9% to ₹1,381.50 after the company reported a sharp jump in consolidated profit in the September quarter.
Operating revenue increased 6% to ₹7,067 crore from ₹6,646 crore, and net income rose 40% to ₹2,445.4 crore from ₹1,748 crore a year ago, respectively.
Voltas Ltd. declined 4.7% to ₹1,656.25 after the air conditioning appliance and system maker reported a muted increase in net income in the September quarter.
Consolidated operating revenue increased 14.2% to ₹2,619 crore from 2,292.7 crore, and net income soared 269% to ₹132,8 crore from ₹36 crore a year ago, respectively.
The engineering company said a 56% volume growth in its residential room air conditioner business supported the revenue growth in the latest quarter.
Cipla Ltd. declined 3.9% to ₹1,420.45 after the company reported a muted increase in its revenue and profit in the September quarter.
Consolidated total operating revenue increased to ₹7.051 crore from ₹6,490 crore, and net income advanced to ₹1,303 crore from ₹1,115 crore a year earlier, respectively.
Marico Ltd. increased 4.6% to ₹657.40 after the food product maker reported a rise in revenue and earnings in the September quarter.
Consolidated total income increased to ₹2,746 crore from ₹2,514 crore, and net income advanced 20.3% to ₹433 crore from ₹360 crore a year ago, respectively.
Domestic market growth was driven by "volume growth supplemented by price hikes in the coconut oil portfolio and favorable reversal in the pricing cycle in saffola oils," the company said in a statement filed with stock exchanges.
Torrent Pharma declined 2.6% to ₹3,133.70 after the company reported weaker-than-expected earnings in its latest quarter.
The company's parent Torrent Investments Private Limited reportedly plans to sell 2.9% stake in the company for ₹3,200 crore.
Nasdaq Hits New Intraday High, U.S. Job Openings Drops to Lowest In Over Three Years
Alexander Garcia
29 Oct, 2024
Miami
Stocks on Wall Street rebounded from morning doldrums as investors awaited quarterly results from leading tech companies later in the week.
The S&P 500 index increased 0.2% and the Nasdaq Composite rose 0.7% as investors turned cautious with only five days remaining for the U.S. presidential election.
More than 700 companies this week are set to release their quarterly results as the busiest week of the current earnings season continues.
Crocs, Shutterstock, D.R. Horton, Alphabet, AMD, Chipotle Mexican Grill, and Snap are among the 178 companies scheduled to release their results Tuesday.
D.R. Horton plunged more than 10% after the company reported weaker-than-expected results and the company issued cautious annual revenue outlook.
Shutterstock jumped 13% after revenues were ahead of market expectations, and the company said chief financial officer is leaving the company.
On the economic front, the number of job openings decreased 418,000 to 7.44 million in September from a downwardly revised 7.861 million in August, the U.S. Bureau of Labor Statistics reported Tuesday.
The number of job openings declined to the lowest level since January 2021, indicating that job market conditions are moderating.
The openings in healthcare and social assistance fell by 178,000, and state and local governments excluding education decreased by 79,000, but rose in finance and insurance by 85,000.
U.S. Goods Trade Gap Widened to 30-Month High In September
The U.S. goods trade deficit widened sharply in September to $108.2 billion, the U.S. Census Bureau reported Tuesday.
Goods exports fell by 2% to $174.2 billion, and imports rose by 3.8% to $282.1 billion, widening the trade gap to $108.2 billion from $94.2 billion in the previous month.
The goods trade deficit was the widest since Russia's invasion of Ukraine in March 2022 triggered a commodity supply threat and drove the deficit to $121 billion.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,834.38, the Nasdaq Composite rose 0.7% to 18,690.13, and the Russell 2000 index decreased 0.4% to 2,234.28.
For the year so far as of Monday's closing, the S&P 500 index is up 22.4%, the Nasdaq Composite has advanced 25.5%, and the Russell 2000 index has gained 11.5%.
The yield on 2-year Treasury notes edged higher to 4.18%, 10-year Treasury notes inched up to 4.33%, and 30-year Treasury bonds inched higher to 4.57%.
WTI crude oil increased $0.15 to $67.54 a barrel, and natural gas prices edged down 2 cents to $2.84 a thermal unit.
Gold fell by $25.41 to $2,769.55 an ounce, and silver increased by $0.63 to $34.34.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.38.
U.S. Stock Movers
MicroStrategy advanced 4.2% to $266.08 ahead of the company's quarterly results on Wednesday.
The software company is also favorites among high-risk traders looking to benefit from future gains in Bitcoin, which topped $70,000 in Monday's trading.
HSBC Holdings increased 4.3% to $47.12 after the UK- and Hong Kong-based bank reported rising revenue and earnings in the September quarter.
Revenue increased 5% to $17.21 billion from $16.7 billion, and net income advanced 8% to $6.7 billion from $6.2 billion a year ago, respectively.
The largest European bank also announced a stock repurchase plan of $3 billion.
McDonald's increased 0.7% to $299.07 after the fast food chain reported better-than-expected quarterly results.
Consolidated revenue in the third quarter increased 3% to $6.9 billion from $6.7 billion, net income fell 3% to $2.25 billion from $2.32 billion, and earnings per share fell 1% to $3.13 from $3.17 a year ago.
Global comparable sales declined 1.5% in the quarter, but sales in the U.S. rose 0.5%.
However, the latest E. coli outbreak in 13 states linked to the company's Quarter Pounder burger is likely to dent sales in the current quarter.
Cadence Design Systems jumped 10.5% to $279.24 after the chip design software company reported better-than-expected quarterly results.
Revenue in the third quarter increased to $1.21 billion from $1.02 billion, net income decreased to $238.1 million from $254.3 million, and diluted earnings per share fell to 87 cents from 94 cents a year ago.
The company reiterated its full-year 2024 revenue to range between $4.61 billion and $4.65 billion and diluted net income per share between $3.70 and $3.76.
German Consumer Sentiment Improved, UK Retail Prices Dropped
European markets advanced as investors reviewed a fresh batch of earnings and awaited a slew of domestic economic releases later in the week.
Benchmark indexes in London, Paris, Milan, and Frankfurt edged higher in a busy week of earnings and economic data flow.
The eurozone GDP in the third quarter is likely to expand by 0.2%, and consumer inflation in October is likely to stay below the 2% target rate set by the central bank.
Third-quarter GDP in France and Italy is likely to increase by a fraction, but in Germany it will shrink by 0.3%.
Economists are anticipating unemployment in the Euro Area to stay near the record level of 6.4%.
Investors are anticipating the U.K.'s Autumn Budget to show significant revisions in taxes on high-income earners and key wage adjustments that could impact operating costs for businesses.
A private survey of forward-looking consumer sentiment showed an improvement for the second month in a row.
The forward-looking consumer sentiment improved to -18 in November from -21 in October as income expectations and willingness to spend improved, according to the latest survey published by the Nuremberg Institute for Market Decisions and market research group GfK.
Retail store prices declined the most in three years amid a decline in non-food prices and easing food inflation, noted the British Retail Consortium.
The shop price annual decline accelerated to 0.8% in October from a fall of 0.6% in September, the largest annual rate of decline since August 2021.
Europe Indexes and Yields
The DAX index decreased by 0.3% to 19,478.07; the CAC-40 index fell by 0.6% to 7,511.11; and the FTSE 100 index fell by 0.8% to 8,219.61.
The yield on 10-year German bonds edged higher to 2.31%, French bonds inched higher to 3.04%, the UK gilts edged down to 4.27%, and Italian bonds increased to 3.51%.
The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar strengthened to 86.69 Swiss cents.
Brent crude increased $0.24 to $71.18 a barrel, and the Dutch TTF natural gas fell by €0.34 to €42.33 per MWh.
Europe Stock Movers
HSBC Holdings increased 4% to 719.80 pence after the UK- and Hong Kong-based bank reported rising revenue and earnings in the September quarter.
Revenue increased 5% to $17.21 billion from $16.7 billion, and net income advanced 8% to $6.7 billion from $6.2 billion a year ago, respectively.
The largest European bank also announced a stock repurchase plan of $3 billion.
China-linked luxury product makers advanced more than 1% ahead of China's top legislative committee's meeting next week to finalize the annual budget and approve the issuance of additional long-term bonds.
Hermes International increased 0.9% to €2,149.0, Kering SA gained 0.8% to €244.95, and LVMH advanced 0.7% to €642.10.
adidas AG gained 1.3% to €216.50 after the German sportswear maker reported a 71% rise in its third quarter profit and higher sales in China.
The company also lifted its annual profit estimate for the third quarter in a row.
Deutsche Lufthansa AG decreased 2.7% to €6.68 after the German airline reported a 9% decline in its operating profit in the third quarter.
BP plc decreased 2.5% to 389.14 pence after the UK-based energy company reported its weakest quarterly profit in four years.
Weaker oil trading profit and a decline in refining margin weighed down net income and cash flow in the quarter.
Novartis AG decreased 3% to CHF 96.83 despite the Swiss pharmaceutical company raising its annual profit outlook for the third quarter in a row.
Banco Santander SA decreased 1.8% to €4.50 after the Spain-based bank reported lower-than-expected quarterly results.
Japan Indexes Extend Gains Despite Rising Political Instability and Policy Uncertainty
Stock market indexes in Tokyo closed higher following gains in overnight trading in New York.
The Nikkei 225 stock average and the broader Topix advanced around 0.8%, driven by strong gains in tech and financial stocks.
Japan's market indexes advanced for the second day in a row as investors continue to reassess the implications of the recent national election.
The Liberal Democratic Party-led coalition lost its parliamentary majority, raising political instability and heightened policy uncertainty as leading parties struggle to form the next government.
The Bank of Japan is widely expected to leave its benchmark rates unchanged on Thursday, but the central bank's plan to gradually increase its interest rates may face additional political headwinds.
On the economic front, Japan's seasonally adjusted unemployment rate decreased to 2.4% in September from 2.5% in August and fell to the lowest level since January, the Ministry of Internal Affairs and Communications said on Tuesday.
The number of employed persons was 68.14 million, an increase of 270,000 from a year ago, and increased for the 26th consecutive month.
The number of unemployed declined by 90,000 from a year ago to 1.73 million and decreased for the second month in a row.
The job-to-applications ratio was unchanged from the previous month at 1.24%, and the labor force participation rate edged slightly higher to 63.5%.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.8% to 38,903.68, the broader Topix index gained 0.9% to 2,682.02, and the yen edged higher to 152.67 against the U.S. dollar.
Banks traded higher ahead of the Bank of Japan's rate decisions on Thursday.
Mitsubishi UFJ Financial increased 3% to ¥1,609.0, Sumitomo Mitsui Financial gained 2.6% to ¥3,242.0, and Mizuho Financial advanced 2.6% to ¥3,242.0.
Industrial companies also advanced in Tokyo trading following the weakness in the yen.
IHI Corp. increased 5.4% to ¥8,095.0, Nitto Denko added 2.6% to ¥2,507.0, Furukawa Electric advanced 6.2% to ¥3,718.0, but Toto Ltd. declined 13% to ¥4,303.0.
Tokuyama dropped 3.7% to ¥2,630.0 after the chemical company reported fiscal second quarter sales declined slightly but net profit advanced 51.8% from a year ago.
The company reiterated its positive sales and earnings outlook in the current fiscal year.
China Indexes Traded In Tight Range
Market indexes in China and Hong Kong fluctuated between gains and losses amid mixed market sentiment as investors awaited details of possible fiscal measures and reviewed the latest batch of earnings.
The Hang Seng index advanced 0.4%, but the mainland-focused CSI 300 index dropped 0.7% after investors stayed on the sidelines ahead of the National People's Congress' standing committee's meeting next week.
Investors widely anticipate the approval of a higher budget deficit, paving the way for the government to issue long-term bonds worth between 2 trillion yen and 4 trillion yen.
The central government plans to disburse funds to local governments to support the completion of residential property projects and revive property market transactions after falling for four years in a row.
China's stock market indexes have soared as much as 40% over the five-week period to the first week in October after the People's Bank of China announced larger-than-expected monetary stimulus and political leaders signaled additional fiscal measures to bolster consumer confidence.
However, corporate earnings have lagged market expectations, and results are not likely to improve for at least another three quarters as the fiscal and monetary stimulus measures trickle down through various sectors of the economy.
Market indexes in Hong Kong and mainland China may face excessive volatility as euphoric investors scale down their expectations and foreign investors lose their patience with earnings growth and lackluster economic growth.
The Hang Seng index increased 0.4% to 20,678.97, and the mainland-focused CSI 300 index decreased 0.7% to 3,936.41.
HSBC Announced $3 Billion Stock Repurchase Plan, Sinopec Earnings Declined
Sinopec dropped 2.7% to HK $4.39 after the largest oil refiner in China said low demand and an economic slowdown knocked the third quarter's profit down by 55% to 8.03 billion yuan, or $1.1 billion.
Following Sinopec's results, CNOOC Ltd. decreased 1.9% to HK $18.36 and PetroChina fell 2.8% to HK $5.77.
WuXi AppTec rose 1.5% to HK $53.55 after the biotech company reported a 2% decline in revenue to 10.5 billion yuan, but surpassed analysts' estimates.
HSBC Holdings increased 3.4% to HK $71.40 after the UK- and Hong Kong-based bank reported rising revenue and earnings in the September quarter.
Revenue increased 5% to $17.21 billion, and net income advanced 9% to $6.13 billion.
U.S. Movers: Cadence Design, D.R. Horton, McDonald's, MicroStrategy
Scott Peters
29 Oct, 2024
New York City
More than 700 companies this week are set to release their quarterly results as the busiest week of the current earnings season continues.
Crocs, Shutterstock, D.R. Horton, Alphabet, AMD, Chipotle Mexican Grill, and Snap are among the 178 companies scheduled to release their results Tuesday.
D.R. Horton plunged more than 10% after the company reported weaker-than-expected results, and Shutterstock jumped 13% after revenues were ahead of market expectations.
MicroStrategy advanced 4.2% to $266.08 ahead of the company's quarterly results on Wednesday.
The software company is also favorites among high-risk traders looking to benefit from the Bitcoin investment, which topped $70,000 in Monday's trading.
HSBC Holdings increased 4.3% to $47.12 after the UK- and Hong Kong-based bank reported rising revenue and earnings in the September quarter.
Revenue increased 5% to $17.21 billion from $16.7 billion, and net income advanced 8% to $6.7 billion from $6.2 billion a year ago, respectively.
The largest European bank also announced a stock repurchase plan of $3 billion.
McDonald's increased 0.7% to $299.07 after the fast food chain reported better-than-expected quarterly results.
Consolidated revenue in the third quarter increased 3% to $6.9 billion from $6.7 billion, net income fell 3% to $2.25 billion from $2.32 billion, and earnings per share fell 1% to $3.13 from $3.17 a year ago.
Global comparable sales declined 1.5% in the quarter, but sales in the U.S. rose 0.5%.
However, the latest E. coli outbreak in 13 states linked to the company's Quarter Pounder burger is likely to dent sales in the current quarter.
Cadence Design Systems jumped 10.5% to $279.24 after the chip design software company reported better-than-expected quarterly results.
Revenue in the third quarter increased to $1.21 billion from $1.02 billion, net income decreased to $238.1 million from $254.3 million, and diluted earnings per share fell to 87 cents from 94 cents a year ago.
The company reiterated its full-year 2024 revenue to range between $4.61 billion and $4.65 billion and diluted net income per share between $3.70 and $3.76.
D.R. Horton plunged 9.6% to $163.05 after the homebuilder reported weaker-than-expected quarterly results.
Revenue in the fiscal fourth quarter ending in September declined to $10.0 billion from $10.5 billion, net income fell to $1.3 billion from $1.5 billion, and diluted earnings per share dropped to $3.92 from $4.45 a year ago.
The homebuilder offered weak annual revenue and unit home sale outlook as buyers struggle with affordability issues.
The company estimated fiscal year 2025 revenue between $36 billion and $37.5 billion, home completions between 90,000 and 92,000 units, stock repurchase of $2.4 billion, and dividend payment of $500 million.
Wall Street Indexes Flatlined Ahead of Big Tech Earnings
Barry Adams
29 Oct, 2024
New York City
Stocks rested on Wall Street as investors awaited quarterly results from leading tech companies later in the week.
The S&P 500 index and the Nasdaq Composite gained a fraction as investors turned cautious with only five days remaining for the U.S. presidential election.
More than 700 companies this week are set to release their quarterly results as the busiest week of the current earnings season continues.
Crocs, Shutterstock, D.R. Horton, Alphabet, AMD, Chipotle Mexican Grill, and Snap are among the 178 companies scheduled to release their results Tuesday.
D.R. Horton plunged more than 10% after the company reported weaker-than-expected results and Shutterstock jumped 13% after revenues were ahead of market expectations.
On the economic front, the number of job openings decreased 418,000 to 7.44 million in September from a downwardly revised 7.861 million in August, the U.S. Bureau of Labor Statistics reported Tuesday.
The number of job openings declined to the lowest level since January 2021, indicating that job market conditions are moderating.
The openings in healthcare and social assistance fell by 178,000, and state and local governments excluding education decreased by 79,000, but rose in finance and insurance by 85,000.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,830.06, the Nasdaq Composite rose 0.3% to 18,626.61, and the Russell 2000 index decreased 0.4% to 2,228.40.
For the year so far as of Monday's closing, the S&P 500 index is up 22.4%, the Nasdaq Composite has advanced 25.5%, and the Russell 2000 index has gained 11.5%.
The yield on 2-year Treasury notes edged higher to 4.18%, 10-year Treasury notes inched up to 4.33%, and 30-year Treasury bonds inched higher to 4.57%.
WTI crude oil increased $0.15 to $67.54 a barrel, and natural gas prices edged down 2 cents to $2.84 a thermal unit.
Gold fell by $11.72 to $2,756.87 an ounce, and silver increased by $0.43 to $33.14.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.54.
U.S. Stock Movers
MicroStrategy advanced 4.2% to $266.08 ahead of the company's quarterly results on Wednesday.
The software company is also favorites among high-risk traders looking to benefit from future gains in Bitcoin, which topped $70,000 in Monday's trading.
HSBC Holdings increased 4.3% to $47.12 after the UK- and Hong Kong-based bank reported rising revenue and earnings in the September quarter.
Revenue increased 5% to $17.21 billion from $16.7 billion, and net income advanced 8% to $6.7 billion from $6.2 billion a year ago, respectively.
The largest European bank also announced a stock repurchase plan of $3 billion.
McDonald's increased 0.7% to $299.07 after the fast food chain reported better-than-expected quarterly results.
Consolidated revenue in the third quarter increased 3% to $6.9 billion from $6.7 billion, net income fell 3% to $2.25 billion from $2.32 billion, and earnings per share fell 1% to $3.13 from $3.17 a year ago.
Global comparable sales declined 1.5% in the quarter, but sales in the U.S. rose 0.5%.
However, the latest E. coli outbreak in 13 states linked to the company's Quarter Pounder burger is likely to dent sales in the current quarter.
Cadence Design Systems jumped 10.5% to $279.24 after the chip design software company reported better-than-expected quarterly results.
Revenue in the third quarter increased to $1.21 billion from $1.02 billion, net income decreased to $238.1 million from $254.3 million, and diluted earnings per share fell to 87 cents from 94 cents a year ago.
The company reiterated its full-year 2024 revenue to range between $4.61 billion and $4.65 billion and diluted net income per share between $3.70 and $3.76.
Europe Movers: Adidas, Banco Santander, BP, HSBC, Lufthansa, Novartis
Inga Muller
29 Oct, 2024
Frankfurt
European market indexes looked up, and investors reviewed the latest batch of corporate results.
German consumer sentiment improved for the second month in a row, and the U.K.'s retail prices fell at the fastest pace in over three years in October.
The DAX index increased by 0.3% to 19,582.79; the CAC-40 index rose by 0.4% to 7,585.20; and the FTSE 100 index advanced by 0.1% to 8,296.67.
The yield on 10-year German bonds edged higher to 2.31%, French bonds inched higher to 3.04%, the UK gilts edged down to 4.27%, and Italian bonds increased to 3.51%.
HSBC Holdings increased 4% to 719.80 pence after the UK- and Hong Kong-based bank reported rising revenue and earnings in the September quarter.
Revenue increased 5% to $17.21 billion, and net income advanced 9% to $6.13 billion.
The largest European bank also announced a stock repurchase plan of $3 billion.
China-linked luxury fashion companies advanced more than 1% ahead of China's top legislative committee's meeting next week to finalize the annual budget and approve the issuance of additional long-term bonds.
Hermes International increased 0.9% to €2,149.0, Kering SA gained 0.8% to €244.95, and LVMH advanced 0.7% to €642.10.
adidas AG gained 1.3% to €216.50 after the German sportswear maker reported a 71% rise in its third quarter profit and higher sales in China.
The company also lifted its annual profit estimate for the third quarter in a row.
Deutsche Lufthansa AG decreased 2.7% to €6.68 after the German airline reported a 9% decline in its operating profit in the third quarter.
BP plc decreased 2.5% to 389.14 pence after the UK-based energy company reported its weakest quarterly profit in four years.
Weaker oil trading profit and a decline in refining margin weighed down net income and cash flow in the quarter.
Novartis AG decreased 3% to CHF 96.83 despite the Swiss pharmaceutical company raising its annual profit outlook for the third quarter in a row.
Banco Santander SA decreased 1.8% to €4.50 after the Spain-based bank reported lower-than-expected quarterly results.
German Consumer Sentiment Improved; BP, Banco Santander, HSBC, and Novartis In Focus After Earnings
Bridgette Randall
29 Oct, 2024
London
European markets advanced as investors reviewed a fresh batch of earnings and awaited a slew of domestic economic releases later in the week.
Benchmark indexes in London, Paris, Milan, and Frankfurt edged higher in a busy week of earnings and economic data flow.
The eurozone GDP in the third quarter is likely to expand by 0.2%, and consumer inflation in October is likely to stay below the 2% target rate set by the central bank.
Third-quarter GDP in France and Italy is likely to increase by a fraction, but in Germany it will shrink by 0.3%.
Economists are anticipating unemployment in the Euro Area to stay near the record level of 6.4%.
Investors are anticipating the U.K.'s Autumn Budget to show significant revisions in taxes on high-income earners and key wage adjustments that could impact operating costs for businesses.
A private survey of forward-looking consumer sentiment showed an improvement for the second month in a row.
The forward-looking consumer sentiment improved to -18 in November from -21 in October as income expectations and willingness to spend improved, according to the latest survey published by the Nuremberg Institute for Market Decisions and market research group GfK.
Retail store prices declined the most in three years amid a decline in non-food prices and easing food inflation, noted the British Retail Consortium.
The shop price annual decline accelerated to 0.8% in October from a fall of 0.6% in September, the largest annual rate of decline since August 2021.
Europe Indexes and Yields
The DAX index increased by 0.3% to 19,582.79; the CAC-40 index rose by 0.4% to 7,585.20; and the FTSE 100 index advanced by 0.1% to 8,296.67.
The yield on 10-year German bonds edged higher to 2.31%, French bonds inched higher to 3.04%, the UK gilts edged down to 4.27%, and Italian bonds increased to 3.51%.
The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar strengthened to 86.69 Swiss cents.
Brent crude increased $0.77 to $72.19 a barrel, and the Dutch TTF natural gas fell by €0.50 to €43.17 per MWh.
Europe Stock Movers
HSBC Holdings increased 4% to 719.80 pence after the UK- and Hong Kong-based bank reported rising revenue and earnings in the September quarter.
Revenue increased 5% to $17.21 billion from $16.7 billion, and net income advanced 8% to $6.7 billion from $6.2 billion a year ago, respectively.
The largest European bank also announced a stock repurchase plan of $3 billion.
China-linked luxury product makers advanced more than 1% ahead of China's top legislative committee's meeting next week to finalize the annual budget and approve the issuance of additional long-term bonds.
Hermes International increased 0.9% to €2,149.0, Kering SA gained 0.8% to €244.95, and LVMH advanced 0.7% to €642.10.
adidas AG gained 1.3% to €216.50 after the German sportswear maker reported a 71% rise in its third quarter profit and higher sales in China.
The company also lifted its annual profit estimate for the third quarter in a row.
Deutsche Lufthansa AG decreased 2.7% to €6.68 after the German airline reported a 9% decline in its operating profit in the third quarter.
BP plc decreased 2.5% to 389.14 pence after the UK-based energy company reported its weakest quarterly profit in four years.
Weaker oil trading profit and a decline in refining margin weighed down net income and cash flow in the quarter.
Novartis AG decreased 3% to CHF 96.83 despite the Swiss pharmaceutical company raising its annual profit outlook for the third quarter in a row.
Banco Santander SA decreased 1.8% to €4.50 after the Spain-based bank reported lower-than-expected quarterly results.
Japan Indexes Extend Gains Despite Rising Political Instability and Policy Uncertainty
Akira Ito
29 Oct, 2024
Tokyo
Stock market indexes in Tokyo closed higher following gains in overnight trading in New York.
The Nikkei 225 stock average and the broader Topix advanced around 0.8%, driven by strong gains in tech and financial stocks.
Japan's market indexes advanced for the second day in a row as investors continue to reassess the implications of the recent national election.
The Liberal Democratic Party-led coalition lost its parliamentary majority, raising political instability and heightened policy uncertainty as leading parties struggle to form the next government.
The Bank of Japan is widely expected to leave its benchmark rates unchanged on Thursday, but the central bank's plan to gradually increase its interest rates may face additional political headwinds.
On the economic front, Japan's seasonally adjusted unemployment rate decreased to 2.4% in September from 2.5% in August and fell to the lowest level since January, the Ministry of Internal Affairs and Communications said on Tuesday.
The number of employed persons was 68.14 million, an increase of 270,000 from a year ago, and increased for the 26th consecutive month.
The number of unemployed declined by 90,000 from a year ago to 1.73 million and decreased for the second month in a row.
The job-to-applications ratio was unchanged from the previous month at 1.24%, and the labor force participation rate edged slightly higher to 63.5%.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.8% to 38,903.68, the broader Topix index gained 0.9% to 2,682.02, and the yen edged higher to 152.67 against the U.S. dollar.
Banks traded higher ahead of the Bank of Japan's rate decisions on Thursday.
Mitsubishi UFJ Financial increased 3% to ¥1,609.0, Sumitomo Mitsui Financial gained 2.6% to ¥3,242.0, and Mizuho Financial advanced 2.6% to ¥3,242.0.
Industrial companies also advanced in Tokyo trading following the weakness in the yen.
IHI Corp. increased 5.4% to ¥8,095.0, Nitto Denko added 2.6% to ¥2,507.0, Furukawa Electric advanced 6.2% to ¥3,718.0, but Toto Ltd. declined 13% to ¥4,303.0.
Tokuyama dropped 3.7% to ¥2,630.0 after the chemical company reported fiscal second quarter sales declined slightly but net profit advanced 51.8% from a year ago.
The company reiterated its positive sales and earnings outlook in the current fiscal year.