Market Update
U.S. Movers: Lucid Group, Moderna, Nvidia, Rivian Automotive
Scott Peters
22 Feb, 2024
New York City
Nvidia Corp. jumped 13.1% to $762.86 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.
Revenue in the fourth quarter declined to $157.1 million from $257.7 million; net loss increased to $653.7 million from $472.6 million; and diluted loss per share expanded to 29 cents from 28 cents a year ago.
The company produced 2,391 vehicles in the fourth quarter and 8,428 vehicles in 2023, meeting the higher end of 2023 annual production guidance of 8,000 to 8,500 vehicles.
The company delivered 1,734 vehicles in the fourth quarter and 6,001 vehicles in 2023, up 37% compared to full-year 2022.
Rivian Automotive dropped 17.2% to $12.74 after the company reported weaker-than-expected quarterly results and lowered its 2024 electric vehicle production estimate to 57,000, compared to 57,232 in 2023.
Revenue in the fourth quarter increased to $1.32 billion from $0.66 billion, net loss declined to $1.52 billion from $1.72 billion, and diluted loss per share shrank to $1.58 from $1.87 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.
S&P 500 and Nasdaq Soar After Nvidia's Blowout Earnings
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%, and the Nasdaq Composite advanced 2%.
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 40% so far this year and soared 225% in the last 52- weeks of trading.
Investors are also awaiting the release of the weekly jobless claims update and existing home sales data later today.
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.
U.S. indexes and yields
The S&P 500 index increased 1.2% to 5,030.81, and the Nasdaq Composite advanced 2.1% to 15,830.84.
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 $0.19 to $77.72 a barrel, and natural gas prices decreased 7 cents to $1.69 a thermal unit and rebounded from a low last seen in September 2020.
Gold increased by $2.91 to $2,027.72 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 103.78.
U.S. Stock Movers
Nvidia Corp. jumped 13.1% to $762.86 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.
Europe Movers: Accor, AXA, Lloyds Banking, Mercedes-Benz, Nestle, Repsol, Rolls Royce, WPP, Zurich Insurance
Inga Muller
22 Feb, 2024
Frankfurt
Benchmark indexes in Paris and Frankfurt traded at new record highs after a slew of positive earnings supported market enthusiasm.
The DAX index increased by 1.1% to 17,310.18, the CAC-40 index rose 0.8% to 7,870.45, and the FTSE 100 index inched higher by 0.1% to 7,666.60.
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%.
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.
Mercedes-Benz Group jumped 5.1% to €71.54 after the German automobile company lifted its dividend and estimated stable revenue in 2024.
Full-year 2023 revenue increased by 2% to €153.2 billion from €150.0 billion, and earnings before interest and taxes decreased to €19.7 billion from €20.5 billion.
Mercedes-Benz cars and vans sales increased 1.5% to 2,491,800 vehicles; battery-operated electric vehicles sales surged 61% to 240,700 units from 149,200; and eVans sales soared 51% to 22,700 units from 15,000 a year ago.
The company proposed to increase its dividend to €5.30 per share, up from €5.20 in 2022.
The company also proposed a stock repurchase plan of €3 billion, to commence immediately after the conclusion of the current stock buyback plan and be completed before the annual general meeting in 2025.
Market Indexes In Germany and France Reach New Highs
Bridgette Randall
22 Feb, 2024
Frankfurt
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 1.1% to 17,310.18, the CAC-40 index rose 0.8% to 7,870.45, and the FTSE 100 index inched higher by 0.1% to 7,666.60.
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 $0.42 to $83.45 a barrel, and the Dutch TTF natural gas declined by €0.11 to €23.87 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, China Stocks Waver
Arjun Pandit
22 Feb, 2024
Mumbai
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.
India Movers: Bank of Baroda, Bharti Airtel, Eureka Forbes, Grasim, Midhani, NBCC, Spicejet, Shree Renuka
Arun Goswami
22 Feb, 2024
Mumbai
Stocks in Mumbai extended weekly losses, and banks, industrial, and consumer products companies 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.
Grasim Industries declined 1.6% to ₹2,159.55, and the company announced the launch of its paint business and commenced production at three facilities in Haryana, Punjab, and Tamil Nadu.
Earlier, the company estimated a total investment of ₹10,000 crore and said it planned to produce pain in five plants with a total capacity of 1.3 billion liters per year.
NBCC increased 3.3% to ₹143.85 after the company won several approvals to redevelop properties worth ₹10,000 crore.
Mishra Dhatu Nigam rose 9.3% to ₹440.85 after the central government permitted 100% foreign direct investment in projects making satellite components.
Midhani is controlled by the Department of Defense, and the company is the only titanium producer in India.
Bharti Airtel declined 3.2% to ₹1,102.35 after the Uttar Pradesh GST office fined the company a ₹13.25 lakh penalty.
The company said it plans to appeal the penalty decision.
Spicejet increased 4.3% to ₹68.74 after the company's board approved the ₹316 crore fund raising through a preferential issue.
Bank of Baroda declined 1.4% to ₹271.15 after the bank raised ₹2,500 crore through a Basel II-compliant bond offering.
Eureka Forbes declined 0.7% to ₹506.45 after 1.79 crore shares, or 9.3% of all outstanding shares of the company, changed hands in a block trade.
Balrampur Chini Mills declined 1% to ₹377.35 after the government hiked the price of sugarcane paid to farmers to ₹340 per quintal.
Shree Renuka Sugars declined 2.2%, and EID Parry dropped 1.4% to ₹628.85.
U.S. Averages Extend Losses to Third Consecutive Day, Germany Lowers Growth Outlook
Barry Adams
21 Feb, 2024
New York City
Market sentiment was negative for the third day running, and tech stock valuations were in focus ahead of Nvidia's quarterly results.
The S&P 500 index declined 0.3% and the Nasdaq Composite dropped 0.8%, extending losses in the previous two sessions.
Palo Alto Networks plunged more than 25% after the cyber-security company lowered its annual revenue outlook, and Teladoc fell 25% after the company reported weak quarterly revenue.
Investors have turned cautious amid growing worries about a narrow market rally over the last nine weeks, as a few mega-cap tech stocks drive most of the market gains.
On the earnings front, investors are looking ahead to quarterly results from Nvidia and Etsy after the market closes.
HSBC said fourth-quarter earnings fell sharply after the UK-based and China-focused global bank took a $3 billion impairment charge linked to its investment in Shanghai-based BoCom.
International Flavors & Fragrances declined 8.5% after the company reported its mixed quarterly results and lowered its dividend.
Garmin rose 10.4% after the Swiss navigation company reported better-than-expected quarterly results, guided positive sales growth in the current quarter, and increased its quarterly dividend.
U.S. indexes and yields
The S&P 500 index decreased 0.2% to 4,967.56, and the Nasdaq Composite fell 0.6% to 15,546.91.
The yield on 2-year Treasury notes decreased to 4.58%, 10-year Treasury notes inched down to 4.25%, and 30-year Treasury bonds edged down to 4.44%.
WTI crude oil increased $0.68 to $77.72 a barrel, and natural gas prices increased 18 cents to $1.76 a thermal unit and rebounded from a low last seen in September 2020.
Gold increased by $1.18 to $2,024.12 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 104.02.
U.S. Stock Movers
HSBC declined 7.4% to $37.79 after the global bank said fourth-quarter earnings fell sharply and the bank announced a stock buyback program and an increase in its cash dividend.
Palo Alto Networks dropped 23.8% to $279.01 after the cyber security company reported better-than-estimated fiscal second quarter revenue and earnings.
However, the company lowered its revenue outlook in the fiscal third quarter to an increase between 13% and 15% and total billing growth between 2% and 4%.
The company also lowered its full-year 2024 revenue outlook to between 15% and 16%, down from the previous estimate of between 18% and 19%.
Diamondback Energy increased 0.8% to $179.50 after the energy company reported better-than-expected revenue and earnings in the fourth quarter.
Caesars Entertainment decreased 0.1% to $41.60 after the hotel and resort operator reported weaker-than-expected revenue of $2.83 billion in the previous quarter.
Solar Edge plunged 20% to $67.37 after the solar inverter maker reported weaker-than-expected revenue of $316 million, but losses narrowed in the fourth quarter.
Walgreens Boots Alliance declined 2.9% after the company was replaced by Amazon in the Dow Jones Industrial Average effective Monday, February 26, according to index manager S&P Dow Jones Indices.
European Market Indexes Traded In Tight Range
European markets traded mixed as investors awaited the release of the latest policy meeting minutes from the European Central Bank and the Federal Reserve.
Benchmark indexes in Paris and Frankfurt advanced but eased in London.
Banks were in focus after HSBC reported a less-than-expected increase in its annual earnings in 2023 and Fresenius Medical Care reported flat fiscal revenue.
In overnight trading, benchmark indexes in the U.S. declined ahead of the release of the Federal Reserve's policy meeting minutes later today.
Moreover, tech stocks were under pressure ahead of the release of quarterly earnings from Nvidia later in the day.
Germany Lowers Growth Outlook
German government lowered its 2023 economic growth estimate to 0.2% from the previous estimate of 1.3%, German Economy Minister Robert Habeck and Vice chancellor said Wednesday.
Persistent weakness in global trade growth and growing uncertainties are weighing heavily on the overall growth of the third largest economy, minister Habeck said during an exchange with reporters.
“We are coming out of the crisis more slowly than we had anticipated,” Habeck said in a statement released online.
"We are seeing declines primarily in the construction industry, but there are also special factors, including the federal government having to prioritize its budget as a result of the Federal Constitutional Court's ruling last November," added Habeck.
The economy is expected to rebound to only 1% in 2025.
The German economy is facing multiple headwinds, including a shortage of skilled labor, a stifling bureaucracy, primitive digital infrastructure, and an aging population.
UK Registers Budget Surplus In January
The UK government registered a budget surplus in January, the largest on record for the month since record-keeping began in 1993, said the Office for National Statistics.
Central government revenue increased £3.9 billion to £111.4 billion, while expenditure increased £1.6 billion to £102.6 billion.
The budget balance usually logs surpluses in January because of self-assessed tax receipts in the month.
Public sector net borrowing, excluding public sector banks, swung to a surplus of £16.7 billion in January, higher than the £9.2 billion surplus in the month a year ago.
In the ten-month period of the current fiscal year, UK government borrowing was £96.6 billion, £3.1 billion less than in the corresponding period a year ago.
UK public sector net debt at the end of January was provisionally estimated at 96.5% of gross domestic product.
Europe Indexes and Yields
The DAX index increased by 0.3% to 17,112.29, the CAC-40 index rose 0.2% to 7,812.93, and the FTSE 100 index inched lower by 0.7% to 7,662.51.
The yield on 10-year German bonds edged up to 2.39%; French bonds inched higher to 2.87%; the UK gilts edged higher to 4.07%; and Italian bonds inched higher to 3.87%.
The euro edged higher to $1.08, the British pound inched higher to $1.261, and the U.S. dollar gained to 88.07 Swiss cents.
Brent crude increased $0.23 to $82.58 a barrel, and the Dutch TTF natural gas declined by €0.30 to €23.87 per MWh.
Europe Stock Movers
HSBC Holdings declined 7.6% to 594.40 pence, despite the UK-based and China-focused global bank reporting a sharp jump in profit and announcing a stock buyback program.
The bank reported a 56% surge in its annual profit in 2023 to $22.43 billion from $14.83 billion, and income per share increased to $1.15 from 72 cents a year ago, respectively.
Revenue in 2023 rose 30% to $66.1 billion, driven by a $5.4 billion increase in net interest income and a $10.0 billion increase in non-interest income.
Net interest margin increased by 24 basis points to 1.66%, and expected credit losses and other impairment charges were $3.4 billion.
The bank announced a new $2 billion stock repurchase plan and hiked its full-year dividend to 61 U.S. cents from 32 U.S. cents a year ago.
Revenue in the fourth quarter declined 11% to $13 billion after the company reclassified its retail operation in France as "held of sale" and after-tax profit dropped by $4 billion to $0.2 billion.
The bank took an impairment charge of $3.0 billion related to its associate Shanghai, China based BoCom.
China Action and Japan's Export Rebound Dominates Asian Trading
In Asia, market indexes lacked direction, but benchmark indexes soared more than 2% in Shanghai and Hong Kong after bargain hunters snapped up tech and healthcare stocks.
In overnight trading, tech stocks were under pressure in New York ahead of the release of Nvidia earnings.
But markets in mainland China and Hong Kong soared after government-controlled funds stepped up buying to stabilize financial markets.
The Nikkei 225 decreased 0.3% to 38,260.93, and the Topix index fell 0.2% to 2,626.49 following the weakness in tech stocks.
A private survey conducted by Reuters Tankan showed a sharp decline in business confidence in February.
The confidence indicator dropped to -1 from +6 in January, highlighting interest rate uncertainties and persistent weakness in the yen.
The private survey is considered a leading indicator of the Bank of Japan's official survey.
Japan Trade Gap Shrinks after Exports Rebounded
Japan's exports surged 11.9% to 7,332.65 billion yen, the fastest increase in exports since November 2022, the Ministry of Finance reported Wednesday.
Exports soared on the back of higher shipments of transportation equipment, passenger cars, and semiconductor and electrical machinery and equipment.
The trade deficit narrowed to 1,758.3 billion yen from 3,506 billion yen after imports declined 9.6% to 9,090 billion yen from a year ago, respectively.
China Intervention Lifts Shanghai and Hong Kong Indexes
Benchmark indexes in Shanghai and Hong Kong advanced to multi-week highs following the largest cut in the 5-year loan prime rate of 25 basis points since the introduction of the rate in 2019.
Moreover, mainland-controlled funds stepped up investing in stocks, as reflected in the rising assets of exchange-traded funds, indicating intervention by the government.
The CSI 300 index increased 1.8% to 3,472.68, and the Hang Seng index soared 3% to 16,735.92.
The Hang Seng index jumped to a seven-week high after property developers rose on speculation that the government is set to announce additional measures to facilitate property demand and ease the tax burden.
Longfor Group, China Resources Land, China Vanke, Henderson Land, New World Development, Wharf REIC, and Sun Hung Kai Properties advanced between 4% and 6%.
HSBC Holdings increased 1.6% to HK$63.30 after the bank reported a 56% surge in its annual profit in 2023 to $22.43 billion from $14.83 billion, and income per share increased to $1.15.
The bank announced a new $2 billion stock repurchase plan and hiked its full-year dividend to 61 U.S. cents from 32 U.S. cents a year ago.
India Stocks Inch Higher Amid Positive Sentiment
Stocks in Mumbai turned up in early trading, and bond yields decreased as investors reviewed the latest report from the Reserve Bank of India.
The state-of-the-economy report released by the RBI highlighted favorable macroeconomic conditions but urged Indian private sector companies to take advantage of stable interest rates.
The report urged private companies to increase capital expenditure and take advantage of the central government's plan to reduce its borrowing in the current financial year.
The report also stressed that net interest rate margins for banks are likely to shrink in the coming months as the recent interest rate hikes work through the financial system and force banks to increase deposit and certificate of deposit rates.
But the report highlighted rising unsecured loans issued by banks to nonbank finance and credit card companies, despite the recent hike in risk capital weights by the central bank.
The Sensex index decreased 434.30 points or 0.6% to 72,623.09, and the Nifty index fell 141.90 points or 0.6% to 22,055.05.
The yield on the 10-year Indian government bonds decreased to 7.06%, and the Indian rupee strengthened to ₹82.88 against the U.S. dollar.
Devyani International increased 0.6% to ₹166.20, and Yum Restaurant India plans to sell a 4.4% stake in the company in a block deal with a floor price of 153.50 per share.
Hindalco Industries gained 0.05% to ₹512.0, and the group company's U.S.-based subsidiary Novelis filed with the U.S. financial regulator to list its stock in New York.
U.S. Movers: Caesars Ent, Diamondback Energy, Palo Alto Networks, SolarEdge, Teladoc, Walgreens
Scott Peters
21 Feb, 2024
New York City
HSBC declined 7.4% to $37.79 after the global bank said fourth-quarter earnings fell sharply and the bank announced a stock buyback program and an increase in its cash dividend.
Palo Alto Networks dropped 23.8% to $279.01 after the cyber security company reported better-than-estimated fiscal second quarter revenue and earnings.
Total revenue increased to $1.97 billion from $1.65 billion, pre-tax income rose to $135.5 million from $84.4 million, and diluted earnings per share rose to $4.89 from 25 cents a year ago.
Net income rose to $1.74 billion from $84.4 million, including tax-benefit of $1.61 billion.
However, the company lowered its revenue outlook in the fiscal third quarter to an increase between 13% and 15% and total billing growth between 2% and 4%.
The company also lowered its full-year 2024 revenue outlook to between 15% and 16%, down from the previous estimate of between 18% and 19%.
Diamondback Energy increased 0.8% to $179.50 after the energy company reported better-than-expected revenue and earnings in the fourth quarter.
Caesars Entertainment decreased 0.1% to $41.60 after the hotel and resort operator reported weaker-than-expected revenue of $2.83 billion in the previous quarter.
SolarEdge plunged 20% to $67.37 after the solar inverter maker reported weaker-than-expected revenue, but losses narrowed in the fourth quarter.
Revenue in the fourth quarter declined to $316 million from $890.7 million, net income swung to a loss of $162.4 million from $20.8 million, and diluted earnings per share were ($2.85) compared to a profit of 36 cents a year ago.
Revenue in 2023 increased to $2.97 billion from $1.96 billion, net income decreased to $34.3 million from $169.2 million, and diluted earnings per share declined to 60 cents from $3.06 a year ago.
Walgreens Boots Alliance declined 2.9% after the company was replaced by Amazon in the Dow Jones Industrial Average effective Monday, February 26, according to index manager S&P Dow Jones Indices.
Teladoc Health dropped 22% to $15.98 after the online health service provider reported weaker-than-expected quarterly revenue.
Revenue in the fourth quarter increased 4% to $660.5 million from $637.7 million, net loss shrank to $28.9 million from $3.8 billion, and diluted loss per share fell to 17 cents from $23.49 a year ago.
Results for the fourth quarter of 2022 primarily included non-cash goodwill impairment charges of $3.77 billion, or $23.26 per share, stock-based compensation expense of $50.8 million, or $0.31 per share, and amortization of acquired intangibles of $50.2 million, or $0.31 per share.
Net loss for the fourth quarter of 2022 also included $3.7 million, or $0.02 per share, of restructuring costs primarily related to the abandonment of certain excess leased office space.