Market Update
U.S. Movers: Cisco, Nvidia, Stellantis, TSMC
Scott Peters
15 Feb, 2024
New York City
Cisco Systems declined 4.7% to $47.94 after the company issued a quarterly and full-year outlook that fell short of some investors' expectations.
Total revenue in the fiscal second quarter ending in January declined 6% to $12.8 billion, net income dropped 5% to $2.6 billion from $2.8 billion, and diluted earnings per share fell 3% to 65 cents from 67 cents a year ago.
Overall revenue declined, driven by a 9% fall in product revenue and a 4% increase in service revenue.
Geographically, revenue in the Americas fell 4%, in Europe and the Middle East decreased 7%, and in Asia Pacific, Japan and China declined 12%.
The company said revenue in the fiscal third quarter is expected to fall between $12.1 billion and $12.3 billion and earnings per share between 51 cents and 56 cents.
The networking gear maker's chief executive, Chuck Robbins, said in an interview with CNBC that customers are taking longer to work through inventories, and demand from its telecom and cable companies remained weak, with orders down 40% in the quarter.
Nvidia added 0.1% to $739.35 after Morgan Stanley lifted its price target to $750 from $603, citing continued strength in demand for AI chips.
TSMC, which makes advanced chips for more than 4,000 customers, including Apple and Nvidia, soared 1.1% to $130.75 after Nvidia's price upgrade.
TSMC surged 8% to NT$697 and soared as much as NT$709 in Thursday's trading after investors returned from a long holiday celebrating Lunar New Year.
Stellantis NV, the parent of Chrysler and Jeep, jumped 4.5% to $25.45 after the automaker announced a stock buyback plan of €3 billion.
Net revenue in 2023 increased 6% to €189.5 billion, and consolidated shipment volumes rose 7% to 6.17 million units.
Net profit in the year rose 11% to €18.6 billion, and adjusted operating income advanced 1% to €24.3 billion, with an adjusted operating income margin of 12.8%.
The company's market share in North America declined 130 basis points to 9.4%, with gains in Mexico more than offset by declines in the U.S. and Canada.
Europe Movers: BHP, Centrica, Commerzbank, Continental, Pernod Ricard, Renault, Safran, Schneider Electric, Stellantis
Inga Muller
15 Feb, 2024
Frankfurt
European markets rebounded, bond yields edged lower, and the pound edged lower after the UK economy entered into a technical recession.
The DAX index increased by 0.6% to 17,040.08, the CAC-40 index rose 0.9% to 7,744.96, and the FTSE 100 index inched higher by 0.2% to 7,584.95.
The yield on 10-year German bonds edged down to 2.31%; French bonds inched higher to 2.81%; the UK gilts edged lower to 4.02%; and Italian bonds inched higher to 3.83%.
Commerzbank surged 3.8% to €10.88 after the German bank said it plans to return about one billion euros to shareholders after the company reported a 55% surge in its annual profit in 2023.
The financial services company also reported fourth-quarter earnings that were ahead of market expectations.
Schneider Electric gained 3% to €201.30 after the French company specializing in energy management lifted its dividend and estimated higher earnings and revenue in the current year.
Renault SA jumped 6.6% to €40.19 after the French automaker and parent of Nissan returned to profitability in 2023 on the back of gains in sales and improvements in margins.
Stellantis increased 4.3% to €23.61 after the parent company of Italian automaker Fiat announced its plan to buyback its own shares but the automaker reported a 10% decline in operating profit in the second-half due to strikes in North America.
Continental AG increased 0.8% to €76.72, and the German tiremaker announced its plans to eliminate 7,150 jobs worldwide by 2025.
Centrica gained 3% to 138.45 pence despite the UK-based utility reporting a decline in annual profit in 2023.
Safran jumped 3.3% to €181.76 after the jet engine maker reported higher revenue and operating profit in 2023.
BHP Group declined 1.5% to 2,336.0 pence after the Australia-based mining company signaled additional $3.2 billion impairment charge linked to the failure of Samarco dam in Brazil and a $2.5 billion charge in its nickel business in Western Australia.
Pernod Ricard jumped 3.4% to €160.05 after the French spirit and wine company lowered its fiscal 2024 sales outlook but estimated demand improvement in the second-half in its key Chinese and the U.S. markets.
Airbus SE declined 1.9% to €147.34 despite the aviation company announcing a special dividend supported by strong results in 2023.
European Markets Rebound Supported by Positive Earnings, UK Economy Dips Into Recession
Bridgette Randall
15 Feb, 2024
Frankfurt
European markets traded higher, and investors reviewed the latest batch of corporate results and comments from ECB president Christine Lagarde.
Benchmark indexes in Paris, Frankfurt, and London advanced after upbeat earnings from Airbus, Commerzbank, Safran, Orange, Renault, and Stellantis.
Restrictive interest rates and the impact of energy price shocks fade, and inflation in the eurozone is expected to moderate in 2024, ECB President Lagarde said to the committee of the European Parliament.
Lagarde acknowledges that activities are subdued across a broad spectrum of the economy and labor market conditions are tight, but wage pressures are moderating and energy price inflation is also weakening.
The European Commission lowered its economic growth outlook for the eurozone by 0.4 percentage points to 0.8%, citing broad weaknesses in activities.
The commission said all member states are likely to expand in 2024, with Germany at 0.3%, France at 0.9%, and Italy at 0.7%.
The inflation outlook for the Euro Area was lowered to 2.7% in 2024 and 2.2% in 2025 from 3.2% in 2023.
The UK Economy Dips Into Recession
The UK economy entered into a technical recession after GDP contracted 0.3% from the previous quarter in the fourth quarter, the Office for National Statistics reported Thursday.
On an annual basis, the UK economy contracted 0.2% in the fourth quarter of 2023.
The UK economy contracted in the fourth quarter amid broad weakness in household consumption, net international contribution, services, and industrial production.
For the full-year 2023, GDP in the UK edged slightly higher by 0.1% after expanding by 4.3% in 2022 and 8.7% in 2021.
The Bank of England forecasts the UK economy to expand by 0.25% in 2024 and 0.75% in 2025.
Europe Indexes and Yields
The DAX index increased by 0.6% to 17,040.08, the CAC-40 index rose 0.9% to 7,744.96, and the FTSE 100 index inched higher by 0.2% to 7,584.95.
The yield on 10-year German bonds edged down to 2.31%; French bonds inched higher to 2.81%; the UK gilts edged lower to 4.02%; and Italian bonds inched higher to 3.83%.
The euro edged lower to $1.073, the British pound inched higher to $1.255, and the U.S. dollar gained to 88.32 Swiss cents.
Brent crude decreased $0.19 to $81.43 a barrel, and the Dutch TTF natural gas fell by €0.49 to €25.25 per MWh.
Europe Stock Movers
Commerzbank surged 3.8% to €10.88 after the German bank said it plans to return about one billion euros to shareholders after the company reported a 55% surge in its annual profit in 2023.
The financial services company also reported fourth-quarter earnings that were ahead of market expectations.
Schneider Electric gained 3% to €201.30 after the French company specializing in energy management lifted its dividend and estimated higher earnings and revenue in the current year.
Renault SA jumped 6.6% to €40.19 after the French automaker and parent of Nissan returned to profitability in 2023 on the back of gains in sales and improvements in margins.
Stellantis increased 4.3% to €23.61 after the parent company of Italian automaker Fiat announced its plan to buyback its own shares.
Continental AG increased 0.8% to €76.72, and the German tiremaker announced its plans to eliminate 7,150 jobs worldwide by 2025.
Japan Unexpectedly Slips Into Recession; India's Current Account Deficit Shrinks
Arjun Pandit
14 Feb, 2024
Mumbai
Market indexes in Asia drifted sideways after Japan unexpectedly fell into a technical recession and Japan's economy slipped to fourth place, lagging the German economy by a small margin.
The Nikkei index advanced 1% to 38,073.91, and the Topix index added 0.2% to 2,589.88.
The yen traded above 150 against the U.S. dollar for the second day in a row this week and for the first time since November, prompting more verbal intervention from Japanese officials.
The yen has declined more than 6% against the U.S. dollar so far in 2024.
Investors have been selling the Japanese yen on the worry that U.S. interest rates are likely to stay higher for longer after the release of the latest inflation data, expanding the yawning yield gap between Japanese government bonds and U.S. Treasury bonds.
Renesas Electronics Corp. decreased 1.2% to ¥2,568.50 after the Japanese chip maker announced the acquisition of the Australian-listed software firm Altium for $5.9 billion.
Japan Falls Behind Germany
Japan's economy unexpectedly shrank by 0.1% from the previous quarter in the fourth quarter of 2023.
The GDP in the third quarter was revised to a contraction of 0.3%, the Cabinet Office reported Thursday.
The economy dipped into a recession after private consumption, which accounts for more than half of the economy, declined for the third quarter in a row on elevated costs.
The weakness of government spending and capital expenditure overcame the net positive contribution from international trade.
Japan's GDP slipped to the fourth largest in the world, trailing the U.S., China, and Germany.
China's GDP surpassed Japan's in 2010, and India's economy is forecasted to surpass the economies of Japan and Germany by as early as 2028.
Hong Kong Stocks Face Persistent Downward Pressure
Investors remained hesitant about investing in Chinese stocks, and most regional investors are looking to trim holdings with any sign of a rebound, according to a survey published by Bank of America on February 13.
The global bank conducted a survey of institutions managing about $313 billion between February 2 and 8.
The Hang Seng index increased 0.4% to 15,947.63, and stocks advanced for the second day in a row in the hopes that Chinese government-controlled funds will step up buying.
Market sentiment reversed in the afternoon session after indexes dropped as much as 0.6% in early trading.
Alibaba Group, JD.com, Tencent, Baidu, and Meituan jumped between 0.1% and 3.0%.
Property developers struggled in trading, and Longfor Group, China Vanke, and China Resources Land declined between 1% and 2.5%.
Financial markets in mainland China are closed this week to celebrate the Lunar New Year.
Chinese stocks have lost about $5 trillion in market capitalization over the three years to 2023, and indexes have extended losses by another 5% in 2024.
India Stocks Lacked Direction In Volatile Trading
Stocks in Mumbai opened higher in early trading and extended the previous day's gains.
The Sensex and the Nifty indexes advanced by 0.2% following the rebound in market indexes in overnight trading in New York and Europe after bond yields eased.
The Sensex index increased 73.58 points to 71,891.62, and the Nifty index rose 32.35 points to 21,866.65.
On the Mumbai stock exchange, 124 stocks traded at their 52-week highs and 13 stocks traded at their 52-week lows.
India's Current Account Deficit to Moderate
India's current account deficit moderated after the service sector surplus rose at a healthy pace, the Reserve Bank of India reported on Wednesday.
The service trade surplus in the fiscal third quarter ending in December rose 16% to $44.9 billion, helping the current account to shrink further.
Service exports in the quarter rose 5.2% to $87.7 billion, and imports advanced 4.2% to $42.8 billion from a year ago, respectively.
India's current account deficit in the fiscal first half ending in September moderated to 1.0% from 2.9% after the merchandise trade deficit shrank and the service sector surplus rose.
The steady growth in service sector surpluses and foreign remittances has helped the country lower its current account deficit over the last decade.
India Movers: Glenmark Pharma, NMDC, One 97 Communications, Rajesh Exports
Arun Goswami
14 Feb, 2024
Mumbai
Stocks in Mumbai traded higher amid positive market sentiment and stable bond yields and the rupee.
The Sensex index increased 73.58 points to 71,891.62, and the Nifty index rose 32.35 points to 21,866.65.
On the Mumbai stock exchange, 155 stocks traded at their 52-week highs and 17 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.11%, and the Indian rupee strengthened to ₹82.99 against the U.S. dollar.
NMDC increased 4% to ₹235.80 after the mining company reported a double-digit increase in sales and earnings in its latest quarterly results.
Revenue in the December quarter increased 45.4% to ₹5,410 crore, and net income soared 62% to ₹1,470 crore from a year ago, respectively.
Glenmark Pharmaceuticals decreased 4.4% to ₹796.0 after the generic pharmaceutical company reported a decline in sales in its latest quarter.
Revenue in the December quarter declined 19.1% to ₹2.506.70 crore, and the pharma company swung to a net loss of ₹449.60 crore from a profit of ₹185.80 crore a year ago.
One 97 Communications dropped 10% to ₹342.15 after the parent company of Paytm said that the Directorate of Enforcement has launched a preliminary inquiry into the company's alleged violations of foreign exchange rules.
Rajesh Exports declined 7% to ₹312.55 after precious jewelry retailer reported a decline in sales in its latest quarter.
Revenue in the December quarter declined yo ₹6,5434 crore from 9,4475 crore, after-tax net income plunged to ₹0.12 crore from ₹4.21 crore, and diluted earnings per share fell to 42 paisa from ₹14.28 a year ago.
U.S. Rally Resumes After Investors Overcome Rate Jitters for Now
Barry Adams
14 Feb, 2024
New York City
Stocks on Wall Street rebounded, and investors focused on high growth tech companies and returned to add more positions.
Investors reassessed the previous day's losses, and market indexes attempted a rebound in Wednesday's trading.
The S&P 500 index and the Nasdaq Composite advanced after investors surmised that a market selloff in the previous session, the deepest since March 2023, may not be warranted.
The hotter-than-expected consumer price inflation in January most likely pushed the rate cut later in the year, undercutting the base argument for the recent rally in the last five weeks.
However, investors shifted their focus to positive earnings, receding inflation, and stable interest rates.
Investors are looking forward to the release of the producer price inflation report later in the week.
On the earnings front, Cisco, Generac, Kraft Heinz, Zillow, Airbnb, Robinhood Markets, Lyft, Instacart, and AutoNation were in focus.
U.S. indexes and yields
The S&P 500 index increased 0.4% to 4,971.38, and the Nasdaq Composite rose 0.4% to 15,723.63.
The yield on 2-year Treasury notes advanced to 4.63%, 10-year Treasury notes increased to 4.30%, and 30-year Treasury bonds edged up to 4.46%.
WTI crude oil decreased $0.12 to $77.76 a barrel, and natural gas prices declined 6 cents to $1.62 a thermal unit, a low last seen in September 2020.
Gold increased by $2.40 to $1,989.23 an ounce after the U.S. dollar gained in international trading.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.74.
U.S. Stock Movers
Airbnb declined 6.2% to $141.43 despite the online booking platform reporting better-than-expected quarterly results.
Revenue in the quarter surged after the company attracted more first-time customers and expanded beyond its core markets in Europe, South America, and Asia.
Gross booking value in the quarter increased 15% to $15.5 billion, and nights and experiences booked 12% to 98.8 million in the fourth quarter.
Revenue in the fourth quarter rose 17% to $2.2 billion, net income swung to a loss of $349 million from a profit of $319 million, and diluted earnings per share were a loss of 55 cents compared to a profit of 48 cents a year ago.
Active listings at the end of the fourth quarter increased by 1.2 million to 7 million around the world.
Gross booking value in 2023 soared 16% from a year ago to $73.3 billion, and nights and experiences booked jumped 14% to 448.2 million.
Lyft Inc. soared 20% to $14.56 after the ridesharing company reported fourth-quarter results.
Revenue in the quarter increased to $1.22 billion from $1.18 billion, and net losses shrank to $26.3 million from $588.1 million.
Gross bookings on the platform rose to $3.7 billion from $3.2 billion. Active riders increased 10% to 22.4 million from 20.4 million, and rides surged to 190.8 million from 151.1 million a year ago.
The company estimated gross booking in the first quarter between $3.5 billion and $3.6 billion and adjusted operating earnings between $50 million and $55 million.
European Markets Turned Higher Tracking Wall Street Gains
European markets closed higher in Wednesday's trading, a day after a sharp selloff following the release of the U.S. inflation report.
World markets traded down after U.S. inflation in January eased less than expected to an annual pace of 3.1% and core inflation stayed at 3.9%, supporting the case for the Federal Reserve to wait a longer before lowering interest rates.
In Wednesday's trading, benchmark indexes in Paris, London, and Frankfurt advanced, and investors reacted to domestic corporate results.
In Europe, benchmark indexes traded near record highs after investors dialed back on rate-cut optimism.
The number of employed persons in the Euro Area increased by 0.3% from the previous quarter in the final quarter of 2023 to 169.3 million.
Employment increased by 1.3% from a year ago in the fourth quarter of 2023.
Employment in the eurozone expanded for the eleventh quarter in a row, giving more leeway to the European Central Bank to keep interest rates at restrictive levels while bringing down inflation.
UK Inflation Held Steady In January
Closer to home, the UK consumer price inflation rate held steady at 4.0%, the Office for National Statistics reported on Wednesday.
Core inflation, which excludes food and energy prices, was also unchanged at 5.1%.
On a monthly basis, inflation declined by 0.6%, after rising by 0.4% in December.
Dutch GDP Expands In the Final Quarter of 2023
The Netherlands GDP grew by 0.3% from the previous quarter in the final quarter of 2023, Statistics Netherlands reported Wednesday.
The Dutch economy expanded in the final quarter following the contraction in the previous three quarters in a row, after consumer spending rose 1.8% and government spending advanced 0.4%.
International trade did not make any contribution to the GDP after exports and imports rose 0.3%.
The Dutch GDP shrank by 0.5% from a year ago after contracting by 0.8% in the third quarter.
Europe Indexes and Yields
The DAX index increased 0.4% to 16,950.23, the CAC-40 index rose 0.7% to 7,676.22, and the FTSE 100 index inched higher by 0.7% to 7,562.22.
The yield on 10-year German bonds edged up to 2.36%; French bonds inched higher to 2.85%; the UK gilts edged higher to 4.07%; and Italian bonds inched higher to 3.90%.
The euro edged lower to $1.070, the British pound inched higher to $1.255, and the U.S. dollar gained to 88.79 Swiss cents.
Brent crude decreased $0.01 to $82.75 a barrel, and the Dutch TTF natural gas fell by €0.74 to €24.70 per MWh.
Europe Stock Movers
Banks across Europe declined after rate-cut hopes waned in the eurozone.
Societe Generale, BNP Paribas, UniCredit, and Commerzbank edged lower.
ABN Amro Bank increased 4.2% to €14.02 after the Dutch lender's quarterly earnings were ahead of market expectations.
ThyssenKrupp declined 8.5% to €5.05 after the German steelmaker lowered its full-year profit and sales outlook, citing weakening demand.
The company also took on impairment charges in its fiscal first quarter.
Schindler Holding increased 2% to CHF 212.80 after the Swiss elevator company estimated revenue growth of "low single-digit" in 2024.
Bilfinger SE soared 10.1% to €42.16 after the company won a large maintenance order from INEOS for the Forties Pipeline System.
Delivery Hero jumped 5.5% to €19.74 after the German food delivery company said its organic cash flow is sufficient to cover its bond and debt maturities.
Heineken NV dropped 5% to €88.48 after the alcoholic beverage maker issued a cautious outlook for 2024, citing uncertainty in global geopolitical and economic conditions.
Capgemini advanced 4.5% to €215.50 after the French IT consulting group reported solid results in 2023 despite the weak macroeconomic environment.
Dunelm Group decreased 0.7% to 1,078.0 pence after the UK-based home goods retailer reported strong results in the interim period for 26 weeks ending on December 30.
The company signaled that margin growth is likely to slow down in the coming months.
Coca-Cola HBC gained 5.7% to 2,332.0 pence after the Hellenic bottling company reported a record annual profit in 2023 and the company lifted its dividend.
Asian Markets Under Pressure After U.S. Inflation Report
Across Asia, market indexes declined in Japan, Korea, and Indonesia, and financial markets remained closed in China.
Overall inflation fell to an annual pace of 3.1% in January, and core inflation, which excludes food and energy prices, stayed at 3.9%, significantly higher than the Federal Reserve's target rate of 2%.
Hotter-than-expected inflation in January supported the case for the Federal Reserve to wait for a while before lowering inflation, denting the critical assumption behind the market rally over the last three months.
Higher inflation suggests that the U.S. dollar is likely to advance and stock market indexes are likely to face downward pressures in the days ahead.
Japan Stocks Faced Selling Pressure
The Nikkei 225 average fell, tracking losses in overnight trading on Wall Street following the release of hotter-than-expected U.S. inflation in January.
The Nikkei 225 decreased 0.7% to 37,702.85 and eased from the 34-year high reached in the previous session.
The yen weakened to 150.25 against the U.S. dollar after U.S. rate-cut hopes were pushed back following the inflation report.
Exporters were among the leading decliners, and tech companies led the gainers.
Toyota Motor, Sony Group, Panasonic, Canon, Japan Tobacco, and Nippon Steel declined between 2% and 3%.
Advantest, Screen Holdings, Tokyo Electron, and Renesas Electronics gained between 0.5% and 1.0%.
Citizen Watch soared 5.9% to ¥1,049.0 after the company reported better-than-expected quarterly results. Sales in the fiscal third quarter rose 4.2% to 859 billion yen, and net income attributable to shareholders increased 2% to 73 billion yen.
Seiko Group advanced 0.5% to ¥2,738.0, following Citizen's results.
Sapporo Holding soared 7.7% to ¥7,406.0, and Idemitsu Kosan added 2.6% to ¥852.60 after the energy exploration company reported better-than-expected earnings.
Hang Seng Index Erased Morning Losses
The Hang Seng index advanced 0.3% to 15,797.59, and the benchmark index erased a 1.2% decline in the morning session after investors returned from a long weekend to celebrate the Lunar New Year.
Financial markets in mainland China and Taiwan are closed for the rest of the week.
Property developers continued on the downward path due to the ongoing worries of weak demand and a lack of specific stimulus from policymakers.
Longfor, China Resources Land, China Vanke, and Sun Hung Kai Properties declined between 1% and 3%.
New World Development, Budweiser Brewing, and Xinyi Glass declined around 1% after MSCI included these three companies in the list of 66 Chinese companies scheduled to be removed from its global standard index at the end of this month.
India Indexes Erase Morning Losses
Stocks in Mumbai and Asia faced selling pressure after U.S. inflation was higher than expected in January.
The Sensex and the Nifty indexes dropped about 0.5% in early trading and dragged down tech service providers and banks after the release of the U.S. inflation report.
The Sensex index gained 0.4% to 71,822.83, and the Nifty index rose 0.5% to 21,840.05.
Adani Group stocks were in focus after the U.S.-based rating agency Moody's Investor Service revised its outlook on four group companies to "stable" from "negative."
The ratings agency had lowered its outlook on Adani Green, Adani Electricity Mumbai, Adani Transmission, and Adani Energy Solutions after the U.S.-based short seller launched a media attack a year ago.
U.S. Major Averages Rebound After Investors Look Beyond Rate Uncertainty
Barry Adams
14 Feb, 2024
New York City
Investors reassessed the previous day's losses, and market indexes attempted a mild rebound in Wednesday's trading.
The S&P 500 index and the Nasdaq Composite advanced 0.5% in early trading after investors worried that a market selloff in the previous session may not be warranted.
The hotter-than-expected consumer price inflation in January most likely pushed the rate cut later in the year, undercutting the base argument for the recent rally in the last five weeks.
However, investors shifted their focus to positive earnings, receding inflation, and stable interest rates.
Investors are looking forward to the release of the producer price inflation report later in the week.
On the earnings front, Cisco, Generac, Kraft Heinz, Zillow, Airbnb, Robinhood Markets, Lyft, Instacart, and AutoNation were in focus.
In Europe, benchmark indexes traded near record highs after investors dialed back on rate-cut optimism.
The number of employed persons in the Euro Area increased by 0.3% from the previous quarter in the final quarter of 2023 to 169.3 million.
Employment increased by 1.3% from a year ago in the fourth quarter of 2023.
Employment in the eurozone expanded for the eleventh quarter in a row, giving more leeway to the European Central Bank to keep interest rates at restrictive levels while bringing down inflation.
Across Asia, the Nikkei index edged lower after flirting with a new 34-year high in the previous session, and property sector stocks continued to lead decliners in Hong Kong after investors returned from Lunar New Year holidays.
U.S. indexes and yields
The S&P 500 index increased 0.2% to 4,993.21, and the Nasdaq Composite fell 0.6% to 15,754.07.
The yield on 2-year Treasury notes advanced to 4.63%, 10-year Treasury notes increased to 4.30%, and 30-year Treasury bonds edged up to 4.46%.
WTI crude oil increased $0.22 to $78.09 a barrel, and natural gas prices declined 2 cents to $1.68 a thermal unit, a low last seen in September 2020.
Gold increased by $1.73 to $1,990.46 an ounce after the U.S. dollar gained in international trading.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.90.
U.S. Stock Movers
Airbnb declined 6.2% to $141.43 despite the online booking platform reporting better-than-expected quarterly results.
Revenue in the quarter surged after the company attracted more first-time customers and expanded beyond its core markets in Europe, South America, and Asia.
Gross booking value in the quarter increased 15% to $15.5 billion, and nights and experiences booked 12% to 98.8 million in the fourth quarter.
Revenue in the fourth quarter rose 17% to $2.2 billion, net income swung to a loss of $349 million from a profit of $319 million, and diluted earnings per share were a loss of 55 cents compared to a profit of 48 cents a year ago.
Active listings at the end of the fourth quarter increased by 1.2 million to 7 million around the world.
Gross booking value in 2023 soared 16% from a year ago to $73.3 billion, and nights and experiences booked jumped 14% to 448.2 million.
Instacart decreased 3.5% to $27.0 despite the food delivery company reporting positive quarterly results.
Revenue in the fourth quarter rose to $803 million from $757 million, net income rose to $135 million from $109 million, and diluted earnings per share dropped to 44 cents from $1.11 a year ago.
Gross transaction volume jumped 7% to $7.9 billion, and orders increased 5% to 70.1 million.
Transaction revenue increased 6% to $560 million, and advertising and other revenue rose 7% to $243 million.
The company estimated first-quarter 2024 gross transaction volume to increase between $8 billion and $8.2 billion, an increase between 7% and 10%.
Lyft Inc. soared 20% to $14.56 after the ridesharing company reported fourth-quarter results.
Revenue in the quarter increased to $1.22 billion from $1.18 billion, and net losses shrank to $26.3 million from $588.1 million.
Gross bookings on the platform rose to $3.7 billion from $3.2 billion. Active riders increased 10% to 22.4 million from 20.4 million, and rides surged to 190.8 million from 151.1 million a year ago.
The company estimated gross booking in the first quarter between $3.5 billion and $3.6 billion and adjusted operating earnings between $50 million and $55 million.
Robinhood Markets surged 12.5% to $13.33 after the online trading platform operator reported better-than-expected quarterly results.
Revenue in the fourth quarter increased 24% to $471 million from $380 million, net income swung to a profit of $30 million from a loss of $166 million, and diluted earnings per share were 3 cents compared to a loss of 19 cents a year ago.
Net interest revenue increased 41% to $236 million, and net transaction-based revenue rose 8% to $200 million.
Assets under custody increased 65% to $102.6 billion, reflecting net new deposits of $4.6 billion totaling $17.1 billion and higher equity valuations.
Average revenue per user in the quarter increased by 23% to $81.
U.S. Movers: Airbnb, Instacart, Lyft, Robinhood Markets
Scott Peters
14 Feb, 2024
New York City
Airbnb declined 6.2% to $141.43 despite the online booking platform reporting better-than-expected quarterly results.
Revenue in the quarter surged after the company attracted more first-time customers and expanded beyond its core markets in Europe, South America, and Asia.
Gross booking value in the quarter increased 15% to $15.5 billion, and nights and experiences booked 12% to 98.8 million in the fourth quarter.
Revenue in the fourth quarter rose 17% to $2.2 billion, net income swung to a loss of $349 million from a profit of $319 million, and diluted earnings per share were a loss of 55 cents compared to a profit of 48 cents a year ago.
Active listings at the end of the fourth quarter increased by 1.2 million to 7 million around the world.
Gross booking value in 2023 soared 16% from a year ago to $73.3 billion, and nights and experiences booked jumped 14% to 448.2 million.
Instacart decreased 3.5% to $27.0 despite the food delivery company reporting positive quarterly results.
Revenue in the fourth quarter rose to $803 million from $757 million, net income rose to $135 million from $109 million, and diluted earnings per share dropped to 44 cents from $1.11 a year ago.
Gross transaction volume jumped 7% to $7.9 billion, and orders increased 5% to 70.1 million.
Transaction revenue increased 6% to $560 million, and advertising and other revenue rose 7% to $243 million.
The company estimated first-quarter 2024 gross transaction volume to increase between $8 billion and $8.2 billion, an increase between 7% and 10%.
Lyft Inc. soared 20% to $14.56 after the ridesharing company reported fourth-quarter results.
Revenue in the quarter increased to $1.22 billion from $1.18 billion, and net losses shrank to $26.3 million from $588.1 million.
Gross bookings on the platform rose to $3.7 billion from $3.2 billion. Active riders increased 10% to 22.4 million from 20.4 million, and rides surged to 190.8 million from 151.1 million a year ago.
The company estimated gross booking in the first quarter between $3.5 billion and $3.6 billion and adjusted operating earnings between $50 million and $55 million.
Robinhood Markets surged 12.5% to $13.33 after the online trading platform operator reported better-than-expected quarterly results.
Revenue in the fourth quarter increased 24% to $471 million from $380 million, net income swung to a profit of $30 million from a loss of $166 million, and diluted earnings per share were 3 cents compared to a loss of 19 cents a year ago.
Net interest revenue increased 41% to $236 million, and net transaction-based revenue rose 8% to $200 million.
Assets under custody increased 65% to $102.6 billion, reflecting net new deposits of $4.6 billion totaling $17.1 billion and higher equity valuations.
Average revenue per user in the quarter increased by 23% to $81.
Europe Movers: ABN Amro, Bilfinger, Capgemini, Coca-Cola HBC, Delivery Hero, Dunelm, Heineken, Schindler, ThyssenKrupp
Inga Muller
14 Feb, 2024
Frankfurt
European markets advanced in cautious trading a day after indexes fell sharply after the latest inflation report in the U.S. poured cold water on rate-cut hopes.
The DAX index increased 0.1% to 16,896.03, the CAC-40 index rose 0.3% to 7,649.74, and the FTSE 100 index inched higher by 0.6% to 7,556.02.
The yield on 10-year German bonds edged up to 2.36%; French bonds inched higher to 2.85%; the UK gilts edged higher to 4.07%; and Italian bonds inched higher to 3.90%.
Banks across Europe declined after rate-cut hopes waned in the eurozone.
Societe Generale, BNP Paribas, UniCredit, and Commerzbank edged lower.
ABN Amro Bank increased 4.2% to €14.02 after the Dutch lender's quarterly earnings were ahead of market expectations.
ThyssenKrupp declined 8.5% to €5.05 after the German steelmaker lowered its full-year profit and sales outlook, citing weakening demand.
The company also took on impairment charges in its fiscal first quarter.
Schindler Holding increased 2% to CHF 212.80 after the Swiss elevator company estimated revenue growth of "low single-digit" in 2024.
Bilfinger SE soared 10.1% to €42.16 after the company won a large maintenance order from INEOS for the Forties Pipeline System.
Delivery Hero jumped 5.5% to €19.74 after the German food delivery company said its organic cash flow is sufficient to cover its bond and debt maturities.
Heineken NV dropped 5% to €88.48 after the alcoholic beverage maker issued a cautious outlook for 2024, citing uncertainty in global geopolitical and economic conditions.
Capgemini advanced 4.5% to €215.50 after the French IT consulting group reported solid results in 2023 despite the weak macroeconomic environment.
Dunelm Group decreased 0.7% to 1,078.0 pence after the UK-based home goods retailer reported strong results in the interim period for 26 weeks ending on December 30.
The company signaled that margin growth is likely to slow down in the coming months.
Coca-Cola HBC gained 5.7% to 2,332.0 pence after the Hellenic bottling company reported a record annual profit in 2023 and the company lifted its dividend.
UK Inflation Held Steady, Dutch GDP Expanded In the Final Quarter of 2023
Bridgette Randall
14 Feb, 2024
Frankfurt
European markets edged slightly higher in Wednesday's trading, a day after a sharp selloff following the release of the U.S. inflation report.
World markets traded down after U.S. inflation in January eased less than expected to an annual pace of 3.1% and core inflation stayed at 3.9%, supporting the case for the Federal Reserve to wait a longer before lowering interest rates.
In Wednesday's trading, benchmark indexes in Paris, London, and Frankfurt slightly advanced, and investors reacted to domestic corporate results.
UK Inflation Held Steady In January
Closer to home, the UK consumer price inflation rate held steady at 4.0%, the Office for National Statistics reported on Wednesday.
Core inflation, which excludes food and energy prices, was also unchanged at 5.1%.
On a monthly basis, inflation declined by 0.6%, after rising by 0.4% in December.
Dutch GDP Expands In the Final Quarter of 2023
The Netherlands GDP grew by 0.3% from the previous quarter in the final quarter of 2023, Statistics Netherlands reported Wednesday.
The Dutch economy expanded in the final quarter following the contraction in the previous three quarters in a row, after consumer spending rose 1.8% and government spending advanced 0.4%.
International trade did not make any contribution to the GDP after exports and imports rose 0.3%.
The Dutch GDP shrank by 0.5% from a year ago after contracting by 0.8% in the third quarter.
Europe Indexes and Yields
The DAX index increased 0.1% to 16,896.03, the CAC-40 index rose 0.3% to 7,649.74, and the FTSE 100 index inched higher by 0.6% to 7,556.02.
The yield on 10-year German bonds edged up to 2.36%; French bonds inched higher to 2.85%; the UK gilts edged higher to 4.07%; and Italian bonds inched higher to 3.90%.
The euro edged lower to $1.070, the British pound inched higher to $1.255, and the U.S. dollar gained to 88.79 Swiss cents.
Brent crude increased $0.09 to $82.67 a barrel, and the Dutch TTF natural gas fell by €0.56 to €24.88 per MWh.
Europe Stock Movers
Banks across Europe declined after rate-cut hopes waned in the eurozone.
Societe Generale, BNP Paribas, UniCredit, and Commerzbank edged lower.
ABN Amro Bank increased 4.2% to €14.02 after the Dutch lender's quarterly earnings were ahead of market expectations.
ThyssenKrupp declined 8.5% to €5.05 after the German steelmaker lowered its full-year profit and sales outlook, citing weakening demand.
The company also took on impairment charges in its fiscal first quarter.
Schindler Holding increased 2% to CHF 212.80 after the Swiss elevator company estimated revenue growth of "low single-digit" in 2024.
Bilfinger SE soared 10.1% to €42.16 after the company won a large maintenance order from INEOS for the Forties Pipeline System.
Delivery Hero jumped 5.5% to €19.74 after the German food delivery company said its organic cash flow is sufficient to cover its bond and debt maturities.
Heineken NV dropped 5% to €88.48 after the alcoholic beverage maker issued a cautious outlook for 2024, citing uncertainty in global geopolitical and economic conditions.
Capgemini advanced 4.5% to €215.50 after the French IT consulting group reported solid results in 2023 despite the weak macroeconomic environment.
Dunelm Group decreased 0.7% to 1,078.0 pence after the UK-based home goods retailer reported strong results in the interim period for 26 weeks ending on December 30.
The company signaled that margin growth is likely to slow down in the coming months.
Coca-Cola HBC gained 5.7% to 2,332.0 pence after the Hellenic bottling company reported a record annual profit in 2023 and the company lifted its dividend.
Japan and India Indexes Trade Lower, Hong Kong Stocks Rebound
Arjun Pandit
14 Feb, 2024
Mumbai
Across Asia, market indexes declined in Japan, Korea, and Indonesia, and financial markets remained closed in China.
Overall inflation fell to an annual pace of 3.1% in January, and core inflation, which excludes food and energy prices, stayed at 3.9%, significantly higher than the Federal Reserve's target rate of 2%.
Hotter-than-expected inflation in January supported the case for the Federal Reserve to wait for a while before lowering inflation, denting the critical assumption behind the market rally over the last three months.
Higher inflation suggests that the U.S. dollar is likely to advance and stock market indexes are likely to face downward pressures in the days ahead.
Japan Stocks Faced Selling Pressure
The Nikkei 225 average fell, tracking losses in overnight trading on Wall Street following the release of hotter-than-expected U.S. inflation in January.
The Nikkei 225 decreased 0.7% to 37,702.85 and eased from the 34-year high reached in the previous session.
The yen weakened to 150.25 against the U.S. dollar after U.S. rate-cut hopes were pushed back following the inflation report.
Exporters were among the leading decliners, and tech companies led the gainers.
Toyota Motor, Sony Group, Panasonic, Canon, Japan Tobacco, and Nippon Steel declined between 2% and 3%.
Advantest, Screen Holdings, Tokyo Electron, and Renesas Electronics gained between 0.5% and 1.0%.
Citizen Watch soared 5.9% to ¥1,049.0 after the company reported better-than-expected quarterly results. Sales in the fiscal third quarter rose 4.2% to 859 billion yen, and net income attributable to shareholders increased 2% to 73 billion yen.
Seiko Group advanced 0.5% to ¥2,738.0, following Citizen's results.
Sapporo Holding soared 7.7% to ¥7,406.0, and Idemitsu Kosan added 2.6% to ¥852.60 after the energy exploration company reported better-than-expected earnings.
Hang Seng Index Erased Morning Losses
The Hang Seng index advanced 0.3% to 15,797.59, and the benchmark index erased a 1.2% decline in the morning session after investors returned from a long weekend to celebrate the Lunar New Year.
Financial markets in mainland China and Taiwan are closed for the rest of the week.
Property developers continued on the downward path due to the ongoing worries of weak demand and a lack of specific stimulus from policymakers.
Longfor, China Resources Land, China Vanke, and Sun Hung Kai Properties declined between 1% and 3%.
New World Development, Budweiser Brewing, and Xinyi Glass declined around 1% after MSCI included these three companies in the list of 66 Chinese companies scheduled to be removed from its global standard index at the end of this month.
India Indexes Extend Losses
Stocks in Mumbai and Asia faced selling pressure after U.S. inflation was higher than expected in January.
The Sensex and the Nifty indexes dropped about 0.5% in early trading and dragged down tech service providers and banks after the release of the U.S. inflation report.
The Sensex index decreased 77.60 points to 71,087.45, and the Nifty index fell 17.70 points to 21,597.02.
On the Mumbai stock exchange, 89 stocks traded at their 52-week highs and 31 stocks traded at their 52-week lows.
Adani Group stocks were in focus after the U.S.-based rating agency Moody's Investor Service revised its outlook on four group companies to "stable" from "negative."
The ratings agency had lowered its outlook on Adani Green, Adani Electricity Mumbai, Adani Transmission, and Adani Energy Solutions after the U.S.-based short seller launched a media attack a year ago.