Market Update
India Movers: Andhra Cements, Canara Bank, Grauer & Weil, Hind Rectifiers, MCX, Paytm, TVS Motor
Arun Goswami
26 Feb, 2024
Mumbai
Stocks in Mumbai meandered in early trading, and bond yields held firm as investors debated future rate paths and stretched market valuation.
The Sensex index decreased 66.60 points to 72,723.53, and the Nifty index fell 31.85 points to 22,090.20.
On the Mumbai stock exchange, 187 stocks traded at their 52-week highs and 11 stocks traded at their 52-week lows.
One 97 Communication, the parent company of Paytm, increased 4.5% to ₹449.0 after the company said Paytm Payments Bank plans to reorganize its board and the company founder, Vijay Shekhar Sharma, has resigned from the bank's board.
Canara Bank advanced 1% to ₹577.30 after the company announced a 1-to-5 stock split plan.
Andhra Cements decreased 3.5% to ₹106.40, and the company's promoter, Sagar Cement, plans to sell a 5% stake in the company.
The company's promotor plans to sell its stake through an open offer for sale on February 27 and 28, with a set floor price of ₹90 per share.
TVS Motor Company decreased 0.1% to ₹2,154.20 after the company's Singapore subsidiary plans to raise its stake in electric vehicle component maker Killwatt GmbH to 49% from 39.3% for ₹35 crore, or 4 million euros.
MCX increased 2.2% to ₹3,745.20 after the commodity exchange operator signed a collaboration agreement with Indonesia's largest commodity exchange, Jakarta Futures Exchange.
Hind Rectifiers soared 10% to ₹618.25 after the company received a ₹200 crore order from the Indian Railways.
Power Mech Projects jumped 1.5% to ₹5,284.0 after the company received a 396 crore order from South East Central Railway.
Grauer & Weil gained 1.9% to ₹198.0 after the company's board approved a 1-to-1 stock bonus.
U.S. and World Markets Hold Near Record Highs Ahead of Inflation Reports
Barry Adams
26 Feb, 2024
New York City
Stocks on Wall Street zig-zagged around the flatline, following a rise of more than 1% in the previous week of trading.
The S&P 500 index and the Nasdaq Composite flatlined in trading, and investors took a wait-and-see approach ahead of the release of economic data later this week.
This week, investors are looking forward to the release of the PCE Price Index, personal income and outlays, durable goods orders, the second estimate of fourth-quarter GDP data, and the goods trade balance.
Durable goods orders are scheduled to be released on Thursday, and investors are looking to get more clues about the demand for large-ticket items from businesses.
On the corporate front, investors are looking ahead to the release of earnings from Dell, HP, TJX Companies, and Lowe’s.
Investors have ignore the hawkish tone of Federal Reserve policymakers and benchmark indexes have advanced more than 30% since October.
Moreover, investors are increasingly comfortable with higher interest rates because corporations have generally been successful in passing on higher operating costs to their customers and delivering earnings growth.
Investors may not be sure about the timing of the interest rate cut, but most investors anticipate that the Federal Reserve will lower interest rates sometimes before the end of the first half.
New Home Sales Edged Higher in January
Seasonally adjusted new home sales in January rose 1.5% to 661,000, driven by lower mortgage rates in the month, the U.S. Census Bureau reported Monday.
Seasonally adjusted new home sales advanced for the second month in a row, after dropping to an annual pace of 607,000 in November.
The median sales price of new houses sold in January was $420,700, higher than $413,100 in December but lower than 432,100 a year ago.
The average sales price was $534,300, higher than $493,400 from December and more than 495,600 a year ago.
The seasonally‐adjusted estimate of new houses for sale at the end of January was 456,000, a supply of 8.3 months at the current sales rate.
U.S. Indexes and Yields
The S&P 500 index decreased 0.3% to 5,074.64, and the Nasdaq Composite declined 0.02% to 15,992.80.
The yield on 2-year Treasury notes increased to 4.71%, 10-year Treasury notes inched down to 4.26%, and 30-year Treasury bonds edged down to 4.37%.
WTI crude oil decreased $0.07 to $76.41 a barrel, and natural gas prices increased 11 cents to $1.72 a thermal unit.
Gold decreased by $5.89 to $2,029.83 an ounce.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.82.
U.S. Stock Movers
Domino's Pizza increased 6.3% to $461.0, after the restaurant chain operator announced its $1 billion stock repurchase plan and increased its dividend by 25%.
Berkshire Hathaway Class B increased 1.6% to $424.0 after the diversified conglomerate's fourth-quarter operating profit increased by 30% from a year ago.
Amer Sports jumped 3% to $15.91 after several analysts made positive comments in their research notes, citing opportunities for revenue growth and margin expansion.
European Markets Flatlined, Bond Yields Advanced
European markets rested in quiet trading in Monday's trading, and investors looked ahead to the release of economic data.
This week, inflation and employment data are set to be released for the eurozone; GDP data in Italy; retail sales in Switzerland; and home price updates in the UK are also anticipated.
Germany, France, and Spain are set to release their inflation reports on Thursday.
Moreover, investors are looking forward to comments from European Central Bank President Christine Lagarde.
Market indexes hovered around their highs in France and Germany, and investors lowered rate-cut expectations in the near term.
The euro advanced after the European Central Bank's Yannis Stournaras ruled out the possibility of rate cuts in March.
In Asia, the Nikkei index closed at a new record high, but benchmark indexes in Shanghai and Hong Kong fell for the second day on the protracted property market downturn and persistent selling by foreign investors.
Market indexes in Mumbai closed down, but indexes hovered near record highs as investors reviewed a mixed batch of earnings results released last week.
Producer Prices In Spain Extended Decline to 11th Month
Spain's producer prices declined 3.8% from a year ago in January, the National Statistics Institute, or INE, reported Monday.
The measure of wholesale prices declined for the eleventh month in a row and extended the 6.3% decline in the previous month.
The energy price decline eased to 12.6% from 20.6%, and intermediate goods prices fell 5.7% after easing 4.9% in the previous month, respectively.
Producer prices, excluding energy prices, rose 0.2% in January, compared to a 0.3% decline in December.
Europe Indexes and Yields
The DAX index increased by 0.02% to 17,423.23, the CAC-40 index fell 0.5% to 7,929.82, and the FTSE 100 index inched lower by 0.3% to 7,684.30.
In the previous week, the DAX increased 1.7%, the CAC-40 index advanced 2.6%, and the FTSE 100 index decreased 0.4%.
The yield on 10-year German bonds edged up to 2.37%; French bonds inched higher to 2.83%; the UK gilts edged lower to 4.09%; and Italian bonds inched higher to 3.81%.
The euro edged higher to $1.084, the British pound inched higher to $1.264, and the U.S. dollar gained to 87.93 Swiss cents.
The natural gas price in Europe dropped 8% last week and approached the pre-Ukraine war crisis level of May 2021.
Brent crude advanced $1.28 to $82.82 a barrel, and the Dutch TTF natural gas increased by €1.01 to €24.08 per MWh.
Europe Stock Movers
Pagero Group AB declined 0.2% to SEK 49.60 after Thomson Reuters Corp. announced the acquisition of the company for $800 million of 8.1 billion Swedish kronor.
Ryanair Holdings gained as much as 1% before easing 0.9% to €20.42 on local reports that the Ireland-based discount airline may increase peak summer air fares by as much as 10%.
Stellantis NV decreased 1.9% to €24.13, and the vehicle maker announced a deal with leasing and fleet management company Ayvens for 500,000 by 2026.
Persimmon declined 3.7% to 1,359.75 pence, Barratt Developments fell 1.7% to 470.20 pence, and Taylor Wimpey dropped 3.7% to 140.53 pence after the antitrust regulator opened an investigation into the sector.
Japan Pulls Ahead, China and India Indexes Closed Down
Across Asia, the Nikkei index in Tokyo edged higher, but the CSI 300 and Hang Seng indexes turned lower on the ongoing property market worries and the lack of government measures to stabilize financial markets.
In Friday's trading, the U.S. markets gained and extended their weekly rise following another AI-powered advance in tech stocks.
Meanwhile, European markets extended weekly gains following a string of positive earnings and stock buyback announcements from Standard Chartered Bank, HSBC Bank, Mercedes-Benz, Rolls Royce, and Repsol.
Nikkei Trades at a New Record High Ahead of the Inflation Report
Benchmark indexes in Japan advanced after investors returned from a three-day holiday.
The Nikkei index advanced 0.4% to 39,259.69 and traded at new highs, tracking the advance in New York in Friday's trading.
Tech stocks led the gainers following a surge in Nvidia's earnings and an optimistic outlook.
Investors also awaited the release of the inflation update on Tuesday, followed by the release of retail sales, industrial production, and unemployment data later in the week.
Tech stocks led the gainers in Monday's trading, and SoftBank, Screen Holdings, Tokyo Electron, Advantest, and Renesas Electronics jumped between 0.5% and 1.5%.
Financial stocks also participated in the market rally for the second day in a row, and Sumitomo Mitsui, Mitsubishi UFJ Financial, and Mizuho Financial gained between 0.6% and 1.2%.
Sumco, Marubeni, Mitsubishi, Itochu, Chugai Pharmaceuticals, and Nintendo jumped between 2% and 6%.
China Stocks Resume Downward Slide
Market indexes in Shanghai and Hong Kong traded lower for the second day in a row after indexes advanced in the previous week, and investors awaited earnings from Baidu, NetEase, and Li Auto.
The CSI 300 index decreased 05% to 3,470.86, and the Hang Seng index fell 0.5% to 16,630.30.
Alibaba Group, Baidu, NetEase, JD.com, and Meituan decreased between 0.5% and 2.5%.
Li Auto edged up 0.5% ahead of the release of quarterly earnings later today, and the larger rival BYD advanced 1.8%.
Hong Kong Exchanges and Clearing decreased 1.3% ahead of its quarterly earnings later in the week.
Investors have been selling China stocks for the third year in a row due to waning confidence in the authoritarian regime, the protracted property market slump, and foreign investors reallocating capital away from China to Japan and India.
India Stocks Hover Near Record Highs
Stocks struggled in early trading on Dalal Street as investors reassessed the interest rate path.
The Reserve Bank of India's January policy meeting last week confirmed that members are not ready to lower rates in the near future, citing volatile and elevated food inflation, dashing hopes of a rate cut as early as May.
Investors were also cautious after the Nifty index traded at a new high last week after leading corporations generally met or exceeded earnings expectations in the December quarter.
The Sensex index decreased 137.45 points to 73,005.35, and the Nifty index fell 40.75 points to 22,171.95.
On the Mumbai stock exchange, 187 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 decreased to 7.04%, and the Indian rupee strengthened to ₹82.89 against the U.S. dollar.
U.S. Major Averages Rested After Setting Records In Previous Week
Barry Adams
26 Feb, 2024
New York City
Stocks on Wall Street were in no hurry to go anywhere in Monday's trading, following a week of AI-powered surges.
The S&P 500 index and the Nasdaq Composite flatlined in early trading, and investors took a wait-and-see approach ahead of the release of economic data later this week.
This week, investors are looking forward to the release of the PCE Price Index, personal income and outlays, durable goods orders, the second estimate of fourth-quarter GDP data, and the goods trade balance.
Durable goods orders are scheduled to be released on Thursday, and investors are looking to get more clues about the demand for large-ticket items from businesses.
On the corporate front, investors are looking ahead to the release of earnings from Dell, HP, TJX Companies, and Lowe’s.
Investors have ignore the hawkish tone of Federal Reserve policymakers and benchmark indexes have advanced more than 30% since October.
Moreover, investors are increasingly comfortable with higher interest rates because corporations have generally been successful in passing on higher operating costs to their customers and delivering earnings growth.
Investors may not be sure about the timing of the interest rate cut, but most investors anticipate that the Federal Reserve will lower interest rates sometimes before the end of the first half.
U.S. Indexes and Yields
The S&P 500 index increased 0.1% to 5,094.76, and the Nasdaq Composite advanced 0.2% to 16,023.43.
The yield on 2-year Treasury notes increased to 4.71%, 10-year Treasury notes inched down to 4.26%, and 30-year Treasury bonds edged down to 4.37%.
WTI crude oil decreased $0.07 to $76.41 a barrel, and natural gas prices increased 11 cents to $1.72 a thermal unit.
Gold decreased by $5.89 to $2,029.83 an ounce.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.82.
U.S. Stock Movers
Domino's Pizza increased 6.3% to $461.0, after the restaurant chain operator announced its $1 billion stock repurchase plan and increased its dividend by 25%.
Berkshire Hathaway Class B increased 1.6% to $424.0 after the diversified conglomerate's fourth-quarter operating profit increased by 30% from a year ago.
Amer Sports jumped 3% to $15.91 after several analysts made positive comments in their research notes, citing opportunities for revenue growth and margin expansion.
Europe Movers: Bunzl, Pagero, Ryanair, Stellantis, UK Home Builders
Inga Muller
26 Feb, 2024
Frankfurt
European stock markets struggled for direction, and bond yields edged higher after investors lowered rate-cut expectations in the near future.
The DAX index increased by 0.05% to 17,428.20, the CAC-40 index fell 0.4% to 7,933.15, and the FTSE 100 index inched lower by 0.4% to 7,681.13.
In the week, the DAX increased 1.7%, the CAC-40 index advanced 2.6%, and the FTSE 100 index decreased 0.4%.
The yield on 10-year German bonds edged up to 2.37%; French bonds inched higher to 2.83%; the UK gilts edged lower to 4.09%; and Italian bonds inched higher to 3.81%.
The euro edged higher to $1.084, the British pound inched higher to $1.264, and the U.S. dollar gained to 87.93 Swiss cents.
Pagero Group AB declined 0.2% to SEK 49.60 after Thomson Reuters Corp. announced the acquisition of the company for $800 million of 8.1 billion Swedish kronor.
Ryanair Holdings gained as much as 1% before easing 0.9% to €20.42 on local reports that the Ireland-based discount airline may increase peak summer air fares by as much as 10%.
Stellantis NV decreased 1.9% to €24.13, and the vehicle maker announced a deal with leasing and fleet management company Ayvens for 500,000 by 2026.
Persimmon declined 3.7% to 1,359.75 pence, Barratt Developments fell 1.7% to 470.20 pence, and Taylor Wimpey dropped 3.7% to 140.53 pence after the antitrust regulator opened an investigation into the sector.
Bunz plc declined 4.7% to 3,150.0 pence after the international distribution group announced plans to acquire Nisbets in the UK and Pamark in Finland.
Bunzl agreed to acquire an 80% stake in Nisbets Group for £339 million in cash, and additional earnings may be payable based on financial performance in 2024.
In full-year 2023, Nisbets generated revenue of £498 million and pre-tax income of £40.2 million, and the company has an asset base of £242 million.
In January, Bunzl signed an agreement to acquire its first business in Finland, Pamark, and increase its operations in 33 countries.
Pamark distributes cleaning and hygiene, healthcare, foodservice, and safety products to a broad range of private and public sector customers in Finland.
The company generated revenue of €56 million, or about £49 million, in 2023.
European Bond Yields Edge Higher, Spain Producer Price Extends Decline to 11th Month
Bridgette Randall
26 Feb, 2024
Frankfurt
European markets rested in quiet trading in Monday's trading, and investors looked ahead to the release of economic data.
This week, inflation and employment data are set to be released for the eurozone; GDP data in Italy; retail sales in Switzerland; and home price updates in the UK are also anticipated.
Germany, France, and Spain are set to release their inflation reports on Thursday.
Moreover, investors are looking forward to comments from European Central Bank President Christine Lagarde.
Market indexes hovered around their highs in France and Germany, and investors lowered rate-cut expectations in the near term.
The euro advanced after the European Central Bank's Yannis Stournaras ruled out the possibility of rate cuts in March.
In Asia, the Nikkei index closed at a new record high, but benchmark indexes in Shanghai and Hong Kong fell for the second day on the protracted property market downturn and persistent selling by foreign investors.
Market indexes in Mumbai closed down, but indexes hovered near record highs as investors reviewed a mixed batch of earnings results released last week.
Producer Prices In Spain Extended Decline to 11th Month
Spain's producer prices declined 3.8% from a year ago in January, the National Statistics Institute, or INE, reported Monday.
The measure of wholesale prices declined for the eleventh month in a row and extended the 6.3% decline in the previous month.
The energy price decline eased to 12.6% from 20.6%, and intermediate goods prices fell 5.7% after easing 4.9% in the previous month, respectively.
Producer prices, excluding energy prices, rose 0.2% in January, compared to a 0.3% decline in December.
Europe Indexes and Yields
The DAX index increased by 0.05% to 17,428.20, the CAC-40 index fell 0.4% to 7,933.15, and the FTSE 100 index inched lower by 0.4% to 7,681.13.
In the week, the DAX increased 1.7%, the CAC-40 index advanced 2.6%, and the FTSE 100 index decreased 0.4%.
The yield on 10-year German bonds edged up to 2.37%; French bonds inched higher to 2.83%; the UK gilts edged lower to 4.09%; and Italian bonds inched higher to 3.81%.
The euro edged higher to $1.084, the British pound inched higher to $1.264, and the U.S. dollar gained to 87.93 Swiss cents.
The natural gas price in Europe dropped 8% last week and approached the pre-Ukraine war crisis level of May 2021.
Brent crude decreased $0.42 to $81.20 a barrel, and the Dutch TTF natural gas increased by €0.52 to €23.45 per MWh.
Europe Stock Movers
Pagero Group AB declined 0.2% to SEK 49.60 after Thomson Reuters Corp. announced the acquisition of the company for $800 million of 8.1 billion Swedish kronor.
Ryanair Holdings gained as much as 1% before easing 0.9% to €20.42 on local reports that the Ireland-based discount airline may increase peak summer air fares by as much as 10%.
Stellantis NV decreased 1.9% to €24.13, and the vehicle maker announced a deal with leasing and fleet management company Ayvens for 500,000 by 2026.
Persimmon declined 3.7% to 1,359.75 pence, Barratt Developments fell 1.7% to 470.20 pence, and Taylor Wimpey dropped 3.7% to 140.53 pence after the antitrust regulator opened an investigation into the sector.
Nikkei 225 In Japan Extends Gains, China Stocks Decline Ahead of Baidu and Li Auto Earnings
Arjun Pandit
26 Feb, 2024
Mumbai
Across Asia, the Nikkei index in Tokyo edged higher, but the CSI 300 and Hang Seng indexes turned lower on the ongoing property market worries and the lack of government measures to stabilize financial markets.
In Friday's trading, the U.S. markets gained and extended their weekly rise following another AI-powered advance in tech stocks.
Meanwhile, European markets extended weekly gains following a string of positive earnings and stock buyback announcements from Standard Chartered Bank, HSBC Bank, Mercedes-Benz, Rolls Royce, and Repsol.
Nikkei Trades at a New Record High Ahead of the Inflation Report
Benchmark indexes in Japan advanced after investors returned from a three-day holiday.
The Nikkei index advanced 0.4% to 39,259.69 and traded at new highs, tracking the advance in New York in Friday's trading.
Tech stocks led the gainers following a surge in Nvidia's earnings and an optimistic outlook.
Investors also awaited the release of the inflation update on Tuesday, followed by the release of retail sales, industrial production, and unemployment data later in the week.
Tech stocks led the gainers in Monday's trading, and SoftBank, Screen Holdings, Tokyo Electron, Advantest, and Renesas Electronics jumped between 0.5% and 1.5%.
Financial stocks also participated in the market rally for the second day in a row, and Sumitomo Mitsui, Mitsubishi UFJ Financial, and Mizuho Financial gained between 0.6% and 1.2%.
Sumco, Marubeni, Mitsubishi, Itochu, Chugai Pharmaceuticals, and Nintendo jumped between 2% and 6%.
China Stocks Resume Downward Slide
Market indexes in Shanghai and Hong Kong traded lower for the second day in a row after indexes advanced in the previous week, and investors awaited earnings from Baidu, NetEase, and Li Auto.
The CSI 300 index decreased 05% to 3,470.86, and the Hang Seng index fell 0.5% to 16,630.30.
Alibaba Group, Baidu, NetEase, JD.com, and Meituan decreased between 0.5% and 2.5%.
Li Auto edged up 0.5% ahead of the release of quarterly earnings later today, and the larger rival BYD advanced 1.8%.
Hong Kong Exchanges and Clearing decreased 1.3% ahead of its quarterly earnings later in the week.
Investors have been selling China stocks for the third year in a row due to waning confidence in the authoritarian regime, the protracted property market slump, and foreign investors reallocating capital away from China to Japan and India.
India Stocks Hover Near Record Highs
Stocks struggled in early trading on Dalal Street as investors reassessed the interest rate path.
The Reserve Bank of India's January policy meeting last week confirmed that members are not ready to lower rates in the near future, citing volatile and elevated food inflation, dashing hopes of a rate cut as early as May.
Investors were also cautious after the Nifty index traded at a new high last week after leading corporations generally met or exceeded earnings expectations in the December quarter.
The Sensex index decreased 137.45 points to 73,005.35, and the Nifty index fell 40.75 points to 22,171.95.
On the Mumbai stock exchange, 187 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 decreased to 7.04%, and the Indian rupee strengthened to ₹82.89 against the U.S. dollar.
India Movers: Ashok Leyland, JSW Infra, HDFC Bank, Kotak Mahindra, Skipper
Arun Goswami
26 Feb, 2024
Mumbai
Kotak Mahindra declined 1.7% to ₹1,720.0, and Zurich Insurance agreed to acquire a 70% stake in Kotak Mahindra General Insurance for ₹5,560 crore.
Early in the month, the bank received regulatory approval for the transaction.
Infibeam Avenues decreased 1.4% to ₹34.50, and the company acquired a 20% stake in the U.S.-based AI developer XDuce for $10 million, or about ₹83 crore.
JSW Infrastructure soared 7.3% to ₹261.30 after the company was awarded a project to mechanize the dry cargo handling facility at V. O. Chidambaranar Port under a public-private partnership arrangement.
Transformers and Rectifiers inched lower by 0.8% to ₹342.0 after the company won orders worth ₹232 crore from Power Grid Corporation.
Skipper soared 4.8% to ₹354.0 after the company won a ₹737 crore order to build a 765 kV transmission line from Power Grid.
Ashok Leyland increased 0.5% to ₹173.90 after the company acquired a 49.9% stake in TVS Truck for ₹25 crore.
HDFC Bank declined a fraction to ₹1,419.45 after the company received approval from the Reserve Bank of India to sell a 90% stake in its education loan subsidiary, HDFC Credila Financial Service, to a consortium of private equity firms, including ChrysCapital Group.
AI Boom Extends U.S. Market Rally, Treasury Yields Edge Higher
Barry Adams
23 Feb, 2024
New York City
Stocks opened higher in New York, and benchmark indexes extended weekly gains in a week dominated by the Nvidia-powered market rally.
Global markets extended weekly gains after Nvidia surpassed the highest expectations set by analysts, and the company's outlook also fueled more optimism about the company's sales in the current quarter and the entire ecosystem supporting the rapid adoption of artificial intelligence.
Nvidia jumped 4% in Friday's trading and extended this year's gain to 70% and the 52-week gain to 247%.
The yield on U.S. Treasury notes inched higher after investors reassessed their interest rate outlook following hawkish comments from Fed officials on Thursday.
For the week, the S&P 500 and the Nasdaq are up 2%.
U.S. Indexes and Yields
The S&P 500 index increased 1.7% to 5,065.91, and the Nasdaq Composite advanced 2.5% to 15,963.40.
The yield on 2-year Treasury notes increased to 4.72%, 10-year Treasury notes inched up to 4.32%, and 30-year Treasury bonds edged up to 4.45%.
WTI crude oil decreased $1.57 to $77.04 a barrel, and natural gas prices decreased 12 cents to $1.60 a thermal unit and rebounded from a low last seen in September 2020.
Gold increased by $2.42 to $2,026.42 an ounce, tracking lower yields on U.S. Treasury notes.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.86.
U.S. Stock Movers
Intuit declined 1.2% to $650.0 after the accounting software developer reported mixed quarterly results.
Live Nation Entertainment soared 5.4% to $98.50 after the entertainment company reported strong revenue in the fourth quarter after business picked up around the world.
Booking Holdings decreased 7.3% to $3,625.0 after the online travel company reported stronger-than-expected quarterly results, and the company said it plans to launch a quarterly cash dividend of $8.75 per share.
Carvana soared 24.5% to $65.50 after the user-car marketplace operator reported its first-ever annual profit.
In the fourth quarter, Carvana sold 76,090 vehicles and generated sales of $2.4 billion.
In 2023, Carvana sold 312,847 vehicles for a total revenue of $10.7 billion and swung to a net income of $150 million, partly due to gains on debt reduction.
Warner Bros. Discovery dropped 8.6% to $8.75 after the media conglomerate reported weaker-than-expected fourth-quarter results.
Block soared 17% to $79.60 after the company reported better-than-expected revenue of $5.7 billion in the fourth quarter and an unexpected profit.
In the quarter, the company swung to a net income of $178 million from a loss of $114 million.
Full-year revenue rose to $7.5 billion from $6 billion, net income soared to $10 million from a loss of $541 million, and diluted earnings per share rose to 2 cents from a loss of 93 cents a year ago.
U.S. Movers: Block, Carvana, Intuit, Live Nation, Warner Bros. Discovery
Scott Peters
23 Feb, 2024
New York City
Intuit declined 1.2% to $650.0 after the accounting software developer reported mixed quarterly results.
Live Nation Entertainment soared 5.4% to $98.50 after the entertainment company reported strong revenue in the fourth quarter after business picked up around the world.
Booking Holdings decreased 7.3% to $3,625.0 after the online travel company reported stronger-than-expected quarterly results, and the company said it plans to launch a quarterly cash dividend of $8.75 per share.
Carvana soared 24.5% to $65.50 after the user-car marketplace operator reported its first-ever annual profit.
In the fourth quarter, Carvana sold 76,090 vehicles and generated sales of $2.4 billion.
In 2023, Carvana sold 312,847 vehicles for a total revenue of $10.7 billion and swung to a net income of $150 million, partly due to gains on debt reduction.
Warner Bros. Discovery dropped 8.6% to $8.75 after the media conglomerate reported weaker-than-expected fourth-quarter results.
Block soared 17% to $79.60 after the company reported better-than-expected revenue of $5.7 billion in the fourth quarter and an unexpected profit.
In the quarter, the company swung to a net income of $178 million from a loss of $114 million.
Full-year revenue rose to $7.5 billion from $6 billion, net income soared to $10 million from a loss of $541 million, and diluted earnings per share rose to 2 cents from a loss of 93 cents a year ago.
Europe Movers: ABB, Allianz, Chemring, Deutsche Telekom, Lufthansa, Standard Chartered
Inga Muller
23 Feb, 2024
Frankfurt
European market indexes traded around recent highs, and the euro and bond yields advanced.
The DAX index increased by 0.04% to 17,375.48, the CAC-40 index rose 0.2% to 7,928.72, and the FTSE 100 index inched higher by 0.1% to 7,689.65.
For the week, the DAX increased 1.7%, the CAC-40 index advanced 2.6%, and the FTSE 100 index decreased 0.4%.
Standard Chartered rose 7.7% to 652.0 pence after the UK-based and emerging-markets-focused bank announced a $1 billion stock buyback program.
The bank said annual profit in 2023 increased 18% to $3.47 billion from $2.95 billion a year ago.
Credit impairment charges related to its exposure to China's commercial real estate sector declined to $282 million from $582 million in 2022, suggesting that the overall picture may be less gloomy than expected.
Still, the bank has taken about $1.2 billion in charges related to its exposure to China's commercial property sector.
The bank's net interest margin increased to 1.67% in 2023 from 1.41% in 2022, and the wider net margin increased net interest income by 23% to $9.6 billion.
Allianz decreased 3% to €248.80 after the German insurance company reported slightly lower-than-expected fourth-quarter earnings.
Chemring decreased 1.5% to 357.0 pence after the aerospace and defense group reiterated its fiscal 2024 outlook.
ABB declined 1.7% to CHF 39.93, and the Swiss engineering company appointed Morten Wierod as its new chief executive officer.
Deutsche Telekom declined 2.5% to €21.78 after the German telecom operator reported a loss of €1.04 billion, or 21 euro cents, in the fourth quarter.
Deutsche Lufthansa dropped 4% to €7.20 after the German airline reshuffled its board.
European Markets Extended Weekly Gains, Germany's Economy Contracted In Fourth Quarter
Bridgette Randall
23 Feb, 2024
Frankfurt
European markets struggled to advance on the final day of the week as investors debated the future rate path and reacted to domestic corporate results.
Benchmark indexes in Germany and France hovered near the new record highs, and the index in the UK lacked direction.
In other economic news in the region, the Hungarian jobless rate increased to 4.6% in the three-month period ending in January from 4.4% in the three-month period ending in December, the statistical office reported Friday.
UK consumer confidence eased in February on weak economic conditions, the GfK survey indicated on Friday.
The consumer sentiment index decreased to -21 in February from -19 in January, and four of the five components of the index registered a decline in the month.
Germany's Q4 Economic Contraction Confirmed
Germany's fourth-quarter GDP declined 0.3% from the previous quarter after stagnating in the third quarter, confirmed Destatis in its second review released Friday.
The statistical office confirmed the data released on January 30.
The weakness in capital investment kept the overall economic growth in check after consumer spending rose by 0.2% and government spending advanced by 0.3%.
For all of 2023, GDP contracted by 0.3% or fell 0.1% when adjusted for calendar from the previous year, as estimated in the preliminary estimate released at the end of January.
Labor participation rose to 46.2 million in Germany, an increase of 216,000 or 0.5% from the previous year.
However, 0.5% fewer working hours were worked per employed person than i the fourth quarter of 2022, due to one fewer working day in the calendar year from the previous year, the Institute for Labor Market and Occupational Research of the Federal Employment Agency reported Friday.
German Business Morale Stayed Near Pre-war Low
The Ifo Business Climate Index improved to 85.5 in February from 85.2 in January, when it reached a three-and-a-half-year low.
High interest rates, weak consumer spending, and geopolitical uncertainties weighed on the sentiment of business owners, and their assessment of the current business situation stayed at the lowest level since July 2020.
Europe Indexes and Yields
The DAX index increased by 0.04% to 17,375.48, the CAC-40 index rose 0.2% to 7,928.72, and the FTSE 100 index inched higher by 0.1% to 7,689.65.
For the week, the DAX increased 1.7%, the CAC-40 index advanced 2.6%, and the FTSE 100 index decreased 0.4%.
The yield on 10-year German bonds edged up to 2.46%; French bonds inched higher to 2.93%; the UK gilts edged higher to 4.13%; and Italian bonds inched higher to 3.95%.
The euro edged higher to $1.082, the British pound inched higher to $1.265, and the U.S. dollar gained to 88.15 Swiss cents.
The natural gas price in Europe dropped 8% this week and approached the pre-Ukraine war crisis level of May 2021.
Brent crude increased $1.02 to $82.51 a barrel, and the Dutch TTF natural gas declined by €0.58 to €22.61 per MWh.
Europe Stock Movers
Standard Chartered rose 7.7% to 652.0 pence after the UK-based and emerging-markets-focused bank announced a $1 billion stock buyback program.
The bank said annual profit in 2023 increased 18% to $3.47 billion from $2.95 billion a year ago.
Credit impairment charges related to its exposure to China's commercial real estate sector declined to $282 million from $582 million in 2022, suggesting that the overall picture may be less gloomy than expected.
Still, the bank has taken about $1.2 billion in charges related to its exposure to China's commercial property sector.
The bank's net interest margin increased to 1.67% in 2023 from 1.41% in 2022, and the wider net margin increased net interest income by 23% to $9.6 billion.
Allianz decreased 3% to €248.80 after the German insurance company reported slightly lower-than-expected fourth-quarter earnings.
Chemring decreased 1.5% to 357.0 pence after the aerospace and defense group reiterated its fiscal 2024 outlook.
ABB declined 1.7% to CHF 39.93, and the Swiss engineering company appointed Morten Wierod as its new chief executive officer.
Deutsche Telekom declined 2.5% to €21.78 after the German telecom operator reported a loss of €1.04 billion, or 21 euro cents, in the fourth quarter.
Deutsche Lufthansa dropped 4% to €7.20 after the German airline reshuffled its board.
China New Home Price Decline Extends to 7th Month, China and India Register Weekly Gains
Arjun Pandit
23 Feb, 2024
Mumbai
Markets in China traded down but gained in India, Korea, and Australia after investors reassessed the global rate outlook, China's property market slump, and a string of positive earnings in Japan, the U.S., and Europe.
In overnight trading, the S&P 500 index and the tech-heavy Nasdaq Composite in New York jumped more than 2% after the closely watched semiconductor company and maker of graphics cards reported a sharp jump in revenue and earnings, surpassing market expectations.
Nvidia's solid earnings fueled a rally in artificial intelligence-linked stocks and rippled around the world, lifting market indexes to new highs in Japan, Germany, and France in Thursday's trading.
The Nikkei 225 index soared 2.2% to 39,098.68 and jumped to a new record high in Thursday's trading.
Financial markets in Japan are closed on Friday to celebrate the Emperor's Birthday holiday.
The Kospi index in Seoul added 0.3% and trimmed the weekly decline to 0.4%, and the ASX 200 index advanced 0.4% and cut the weekly losses to 0.3%.
China Stocks Halt Weeklong Rally
China indexes traded down in Friday's trading, and investors booked profit following a worldwide surge after Nvidia's results and current-year outlook for its AI chip-powered cards and servers surpassed market expectations.
The CSI 300 index, the popular index with institutional investors tracking mainland stocks, halted its eight-day rally, the longest market stretch since July 2020.
The CSI 300 index decreased 0.2% to 3,479.51, and the Hang Seng Index declined 0.4% to 16,680.17, but extended the weekly gain to over 2.4%.
Benchmark indexes in Shanghai and Hong Kong traded down after new home prices in the 70 largest cities declined 0.7% from a year ago in January.
Home prices declined for the seventh month in a row and fell at the fastest pace since March 2023, the National Bureau of Statistics reported Friday.
Home prices in the two largest cities, Beijing and Shanghai, advanced, defying the national trend.
The annual home price increase in Beijing moderated to 1.3% from 1.7% and in Shanghai to 4.2% from 4.7% a year ago, respectively.
However, investors bid up property developers' stocks after fewer cities recorded a monthly price decline. New home prices fell 0.3% in January from the previous month, after falling 0.4% in December.
Longfor Group, China Resources Land, China Vanke, and Sun Hung Kai Properties advanced between 1% and 4%.
Tech stocks rallied and participated in the global surge in semiconductor and artificial intelligence-linked stocks after Nvidia's blowout earnings.
However, Alibaba Group, Tencent, and JD.com declined around 1%, but Baidu and Trip.com jumped more than 3%.
India Stocks Extend Weekly Gain, Nifty Trades at New Record High
Stocks in Mumbai advanced in early trading amid positive global market sentiment, and the rupee strengthened.
The Nifty and the Sensex indexes advanced as investors reviewed the latest minutes of the RBI's policy meeting.
Committee members voiced caution about lowering the interest rate too soon amid volatile and rising food price inflation.
Members also discussed the difficulty of lowering inflation from near 5% to below the target rate of 4%.
The Sensex index increased 236.20 points to 73,394.44, and the Nifty index rose 72.55 points to 22,290.03.
On the Mumbai stock exchange, 101 stocks traded at their 52-week highs and 3 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds decreased to 7.06%, and the Indian rupee strengthened to ₹82.85 against the U.S. dollar.
Olectra Greentech increased 1.9% to ₹2,102.95 after the company, in collaboration with Evey Trans, received a ₹4,000 crore award to supply and maintain 2,400 buses by BEST in Mumbai.
Brihanmumbai Electric Supply and Transport Undertaking, or BEST, is the sole operator of local bus services in Mumbai.
India Movers: Angel One, Gujarat Ambuja, Jana SFB, Olectra, Texmaco Rail, Vodafone Idea
Arun Goswami
22 Feb, 2024
Mumbai
Gujarat Ambuja Exports decreased 0.3% to ₹402.50 after the company set March 8 as the record date for a 1-to-1 bonus stock issue.
Texmaco Rail & Engineering added 4.7% to ₹191.0 after the company announced a board meeting on February 27 to evaluate fund-raising options.
Bandhan Bank increased 1.5% to ₹203.50 after the company appointed former Citi India executive and veteran banker Rajeev Mantri as chief financial officer as of February 22.
Angel One decreased 0.5% to ₹3,072.35 after the stock brokerage firm plans to raise ₹2,000 crore to expand beyond mutual funds to fintech apps and services.
Olectra Greentech increased 1.9% to ₹2,102.95 after the company, in collaboration with Evey Trans, received a ₹4,000 crore award to supply and maintain 2,400 buses by BEST in Mumbai.
Brihanmumbai Electric Supply and Transport Undertaking, or BEST, is the sole operator of local bus services in Mumbai.
Jana Small Finance Bank decreased 1.7% to ₹454.80 after the bank reported a rise in profit and net interest income in the December quarter.
Net interest income in the quarter increased 24.4% to 548.5 crore and net income advanced 12.8% to 134.6 crore from a year ago, respectively.
Vodafone Idea increased 6.5% to ₹16.35, and the company announced a board meeting on February 27 to evaluate fund-raising proposals.
Nvidia Earnings Lift Indexes In the U.S., Germany, France, and Japan to New Record Highs
Barry Adams
22 Feb, 2024
New York City
Benchmark indexes on Wall Street advanced after Nvidia's quarterly results surpassed elevated expectations.
The S&P 500 index increased 1.6%, and the Nasdaq Composite advanced 2.4%.
Nvidia said revenue in the fourth quarter soared 265% from a year ago to $22.1 billion, driven by a surge in demand for artificial intelligence-driven applications.
“Accelerated computing and generative AI have hit the tipping point. Demand is surging worldwide across companies, industries and nations,” said Jensen Huang, founder and CEO of Nvidia.
Nvidia's blowout results boosted other semiconductor stocks, and ASML, AMD, TSMC, Intel, and Qualcomm jumped between 2% and 4%.
Nvidia stock has jumped 61% so far this year and soared 274% in the last 52- weeks of trading.
Treasury yields edged higher after the latest policy meeting minutes showed that policymakers are worried that lowering the interest rate too soon may prolong higher inflation.
Initial Jobless claims decreased to 201,000 in the week ending February 17 from 213,000 in the previous week, the U.S. Department of Labor reported Thursday.
Existing Home Sales Rebounded In January
Existing home sales rose 3.1% from the previous month to a seasonally adjusted annual rate of 4 million in January, the National Association of Realtors reported Thursday.
Sales declined 1.7% from the previous year in January.
Listings were modestly higher, and home buyers are taking advantage of lower mortgage rates compared to late last year.
"While home sales remain sizably lower than a couple of years ago, January's monthly gain is the start of more supply and demand," said NAR Chief Economist Lawrence Yun.
The median existing-home price for all housing types in January was $379,100, an increase of 5.1% from $360,800 a year ago.
All four U.S. regions posted price increases.
U.S. Indexes and Yields
The S&P 500 index increased 1.7% to 5,065.91, and the Nasdaq Composite advanced 2.5% to 15,963.40.
The yield on 2-year Treasury notes increased to 4.70%, 10-year Treasury notes inched up to 4.33%, and 30-year Treasury bonds edged up to 4.49%.
WTI crude oil increased $0.65 to $78.57 a barrel, and natural gas prices decreased 10 cents to $1.66 a thermal unit and rebounded from a low last seen in September 2020.
Gold increased by $3.76 to $2,021.23 an ounce, tracking lower yields on U.S. Treasury notes.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.08.
U.S. Stock Movers
Nvidia Corp. jumped 15.1% to $778.54 after the advanced semiconductor chipmaker reported a 265% jump in revenue in its latest quarter.
Revenue in the fourth quarter increased to $22.1 billion from $6.2 billion, net income soared 769% to $12.3 billion from $1.4 billion, and diluted earnings per share jumped to $4.93 from 57 cents a year ago.
For the fiscal year, revenue jumped 126% to $60.9 billion, net income soared 581% to $29.7 billion from $4.93 billion, and diluted earnings per share advanced to $11.93 from $1.74 a year ago.
The closely watched Data Center business' sales soared fivefold to $18.4 billion from $3.6 billion. The business segment includes the company's popular H100 graphics card used for powering generative artificial intelligence apps.
Lucid Group declined 8.1% to $3.40 after the electric vehicle maker reported weaker-than-expected revenue in its latest quarter as losses widened.
Rivian Automotive dropped 17.2% to $12.74 after the company reported weaker-than-expected quarterly results and said electric vehicle production in 2024 was 57,000, lower than 57,232 a year ago.
Revenue in the fourth quarter was $1.32 billion, a net loss of $1.52 billion from $1.72 billion a year ago.
Moderna increased 4.4% to $91.50 after the vaccine maker reported larger-than-expected revenue in the fourth quarter and an unexpected profit.
Market Indexes In Germany and France Reach New Highs
European markets advanced in Thursday's trading as investors awaited the release of the latest policy meeting minutes later in the day.
Benchmark indexes in Frankfurt, Paris, and London advanced, and bond yields edged higher as investors scaled back hopes of a rate in the near future.
Market sentiment was also bolstered after a private survey of the service sector showed the smallest decline in eight months in February.
Moreover, positive earnings from AXA, Zurich Insurance, Lloyds Banking Group, and Rolls Royce supported the advance in indexes.
Eurozone Private Sector Contraction Slowed In February
The HCOB Eurozone Composite PMI rose to 48.9 in February from 47.9 in the previous month, according to a preliminary estimate released by S&P Global.
Overall activities declined for the ninth month in a row after the downturn in manufacturing was offset by a stable level of activity in the service sector.
New order inflow continued to decline, but employment levels rose for the second month in a row.
The services purchasing managers' index increased to a seven-month high of 50.0 from 48.4 in January, while the index for manufacturing eased to 46.1 from 46.6 in the previous month.
Europe Indexes and Yields
The DAX index increased by 1.5% to 17,374.81, the CAC-40 index rose 1.3% to 7,912.15, and the FTSE 100 index inched higher by 0.3% to 7,684.49.
The yield on 10-year German bonds edged up to 2.45%; French bonds inched higher to 2.92%; the UK gilts edged higher to 4.11%; and Italian bonds inched higher to 3.94%.
The euro edged higher to $1.085, the British pound inched higher to $1.267, and the U.S. dollar gained to 87.74 Swiss cents.
Brent crude increased $0.49 to $83.52 a barrel, and the Dutch TTF natural gas declined by €0.93 to €23.05 per MWh.
Europe Stock Movers
Zurich Insurance gained 3.3% to CHF 461.20 after the Swiss reinsurance company announced a stock repurchase plan.
Nestle SA declined 4.4% to CHF 94.69 after the largest packaged food maker in the world reported weaker-than-expected organic sales growth in its latest fiscal year.
Repsol SA increased 4.5% to €14.32 after the Spanish energy company committed to returning 4.6 billion in cash dividends to shareholders between 2024 and 2027.
WPP PLC declined 2.7% to 759.60 pence, despite the UK-based global advertising firm reporting full-year revenue and earnings in line with market expectations.
Accor SA increased 5.1% to €39.86 after the French hotel group reported a better-than-expected annual core profit.
Lloyds Banking Group rose 2.2% after the UK-based bank reported a rise in its annual profit.
AXA increased 2.8% to €32.05 after the French insurance group reported an increase in its underlying profit in the fiscal year 2023.
The insurance company also announced a stock buyback plan.
Rolls Royce soared 8.8% to 358.40 pence after the aviation and power engineering firm reported a sharp rise in its annual profit in fiscal year 2023 and estimated a higher profit in 2024.
Japan's Nikkei 225 Surpassed Record High After 34 Years
Markets in Asia generally traded higher, and investors reassessed the latest policy meeting minutes from the Federal Reserve.
Benchmark indexes in Tokyo advanced, and tech stocks led the gainers following the strong quarterly results from Nvidia.
The Nikkei 225 advanced 2.2% to 39,098.68 and closed above its record high 38,915.87, set on December 29, 1989.
The price-driven index, which favors higher-priced stocks over market caps, has surged over 17% in the year so far, and the index has advanced the most among the largest 15 financial markets in the world.
The benchmark index has been flirting around the record high level for weeks after strong interest from foreign investors supported the gain in the index for the second year in a row.
The Nikkei index had fallen to as low as 8,200 in 2011 after a string of natural disasters following the tsunami and earthquake, leading to the meltdown of the Fukushima nuclear power plant.
The broader Topix index, which is favored by financial professionals, is still trading 8.5% below its record high in 1989.
Tech stocks were among the leading gainers after Nvidia reported a three-fold increase in its quarterly revenue on the back of solid demand for its AI chips.
Disco Corp., Tokyo Electron, Advantest, SoftBank, and Screen Holdings increased between 4% and 10%.
The Au Jibun Bank Japan Manufacturing PMI Index unexpectedly declined to 47.2 in February from 48.0 in January, according to the preliminary estimate released by the bank.
The decline in the index was the deepest since August 2020, following the decline in new orders and export sales.
The Au Jibun Bank Japan Services PMI Index decreased to 52.5 in February from a four-month high of 53.1 in January.
The Japanese yen traded above 150 against the U.S. dollar after the release of the U.S. Federal Reserve's January policy meeting minutes.
Policymakers noted that interest rates may be nearing their peak in the current tightening cycle, but it may be too soon to lower rates because that could prolong higher inflation for a longer period.
China Indexes Rebound on Property Reform Hopes
Market indexes in Shanghai and Hong Kong continued to advance and extend weekly gains in the hopes that the Chinese government would follow through with meaningful and solid stimulus and policy measures.
So far, the Chinese government and policymakers have treated the 3-year decline in stock market indexes as market volatility driven by speculators and not rooted in economic fundamentals.
The CSI 300 index increased 0.5% to 3,474.63, and the Hang Seng index added 0.6% to 16,609.96.
Property developers extended gains, and Henderson Land, China Resources Land, Sun Hung Kai Properties, China Vanke, and Longfor Group advanced between 1.5% and 4%.
trip.com Group soared 7% to HK$355.0 after the online travel booking site reported better-than-expected fourth quarter financial results.
Banks were under pressure for the second day in a row after HSBC Bank reported weaker-than-expected results in its fourth-quarter results.
China Merchants Bank declined, but the Industrial and Commercial Bank of China and the Agriculture Bank of China advanced.
India Stocks Extend Weekly Losses
Stocks in Mumbai traded down and extended weekly losses as investors debated the future rate path, state of the economy, and stock valuation.
The Nifty and Sensex indexes declined in Thursday's trading on the worry that global interest rates will stay higher for longer after the latest Federal Reserve's policy meeting minutes showed resistance to lower rates too soon.
Stocks were also under pressure amid worries about stretched valuations, and banks, tech services exporters, and automotive vehicle makers were among the leading decliners.
The Sensex index decreased 405.63 points to 72,201.35, and the Nifty index fell 133.50 points to 21,935.55.
On the Mumbai stock exchange, 214 stocks traded at their 52-week highs and 11 stocks traded at their 52-week lows.
Mishra Dhatu Nigam rose 9.3% to ₹440.85 after the central government permitted 100% foreign direct investment in projects making satellite components.