Market Update
S&P 500 and Nasdaq Down After Nvidia Falls 3%
Barry Adams
09 Dec, 2024
New York City
Stock market indexes on Wall Street hovered near recent highs as investors digested two key labor reports released last week.
At the end of last week, the S&P 500 index and the Nasdaq Composite closed at new highs and extended weekly gains for the third week in a row amid a not-so-strong rebound in payrolls increase in November.
Market sentiment remained positive after the latest updates on factory orders, and the labor market supported the case for one more rate cut.
In addition, investors are anticipating the Federal Reserve to deliver one more rate cut after the final policy meeting next week.
In Europe, stock markets jumped as much as 4% last week after business activities remained in contraction, raising expectations of a rate cut after the policy meeting this week.
Investors largely overlooked brewing political turmoil in France and hoped that the second-largest economy in the eurozone would soon form a new government.
In the week ahead, in the U.S., investors are looking forward to the release of consumer and producer price inflation and export-import prices.
U.S. consumer price inflation is expected to rebound to 2.7% in November from 2.6% in October, and annual producer price inflation is estimated to edge higher to 2.5% from 2.4%, respectively.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to 6,082.85, the Nasdaq Composite fell 0.03% to 19,853.36, and the Russell 2000 index advanced by 0.5% to 2,421.81.
The yield on 2-year Treasury notes edged higher to 4.13%, 10-year Treasury notes inched up to 4.18%, and 30-year Treasury bonds increased to 4.37%.
WTI crude oil increased $1.18 to $68.31 a barrel, and natural gas prices edged up 9 cents to $3.17 a thermal unit.
Gold increased by $41.50 to $2,674.82 an ounce, and silver rose by $1.24 to $32.26.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower by 0.06 to 105.91.
Stock Movers
Nvidia Corp. dropped 2.7% to $138.59 after the Chinese antitrust regulatory agency opened an investigation for a potential violation of the country's antimonopoly law.
AMD decreased 3.8% to $133.32 following the decline in Nvidia stock and cautious comments from Bank of America citing entrenched market domination of Nvidia in the fast-growing market for advanced chips for artificial intelligence applications.
Palantir Technologies declined 1.8% to $75.09, and the company said it won an additional contract with the U.S. Special Operations Command.
European Markets Trade Sideways Ahead of Rate Decisions, French Luxury Stocks Rebound
Bridgette Randall
09 Dec, 2024
London
European markets were in a holding pattern as investors looked ahead to rate decisions and estimates of economic outlook from central banks in the region.
Benchmark indexes in Paris, Frankfurt, Milan, and London advanced ahead of the widely anticipated rate decisions from the European Central Bank and the Swiss National Bank.
The ECB is expected to lower its key lending rates for the fourth time this year, and markets are looking for clues for additional rate cuts over the next three months.
The Swiss National Bank is widely expected to lower its key lending rates after inflation stayed below 1%, confirming the weak inflation trend over the last several months.
French luxury stocks rebounded, and bond yields held steady as the French President, Emmanuel Macron, stepped up negotiations with other party leaders to find a consensus candidate for the next prime minister.
President Macron is facing a daunting task to appoint a candidate for the next prime minister who could pass two critical budgets and hold the minority government together till the earliest possible election next summer.
French bond yields could surge if the next government fails to pass a budget that would cut the deficit to 5% of gross domestic product in 2025 and signal to markets that lawmakers are serious about getting the fiscal house in order.
France's national debt of €3.2 trillion is hovering near 112% of GDP, and it is twice the level required by the European Union.
Only two other nations in the European Union exceed France's level of debt to GDP ratio, Greece with 161.9% and Italy with 134%.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 20,356.42; the CAC-40 index rose by 0.5% to 7,460.29; and the FTSE 100 index inched higher by 0.4% to 8,342.61.
The yield on 10-year German bonds edged lower to 2.10%, French bonds inched down to 2.85%, the UK gilts decreased to 4.26%, and Italian bonds decreased to 3.18%.
The euro edged higher to $1.05; the British pound inched up to $41.27; and the U.S. dollar eased to 87.88 Swiss cents.
Brent crude decreased $0.84 to $71.95 a barrel, and the Dutch TTF natural gas fell by €0.72 to €45.81 per MWh.
Europe Stock Movers
French luxury stocks rebounded in the hopes that Chinese leaders are likely to follow through with the previously announced additional fiscal measures.
LVMH rose 2.8% to €648.0, Hermes International advanced 1.4% to €2,290.0, Remy Cointreau SA jumped 3.3% to €62.25, and Pernod Ricard SA gained 1.9% to €110.85.
Banco BPM SA gained 1.5% to €7.66 after France-based Credit Agricole SA increased its stake in the bank to 15.1% from 9.9%, provided the Italian regulatory authorities approve the additional investment.
Hello Fresh SE declined 7.7% to €12.14 following reports that the meal kit provider is being investigated by the U.S. authorities for child labor allegations.
Sartorius SA jumped 0.4% to €180.50 after the French pharmaceutical company appointed a new chief executive.
European Markets Trade Sideways Ahead of Rate Decisions, French Luxury Stocks Re
Bridgette Randall
09 Dec, 2024
London
European markets were in a holding pattern as investors looked ahead to rate decisions and estimates of economic outlook from central banks in the region.
Benchmark indexes in Paris, Frankfurt, Milan, and London advanced ahead of the widely anticipated rate decisions from the European Central Bank and the Swiss National Bank.
The ECB is expected to lower its key lending rates for the fourth time this year, and markets are looking for clues for additional rate cuts over the next three months.
The Swiss National Bank is widely expected to lower its key lending rates after inflation stayed below 1%, confirming the weak inflation trend over the last several months.
French luxury stocks rebounded, and bond yields held steady as the French President, Emmanuel Macron, stepped up negotiations with other party leaders to find a consensus candidate for the next prime minister.
President Macron is facing a daunting task to appoint a candidate for the next prime minister who could pass two critical budgets and hold the minority government together till the earliest possible election next summer.
French bond yields could surge if the next government fails to pass a budget that would cut the deficit to 5% of gross domestic product in 2025 and signal to markets that lawmakers are serious about getting the fiscal house in order.
France's national debt of €3.2 trillion is hovering near 112% of GDP, and it is twice the level required by the European Union.
Only two other nations in the European Union exceed France's level of debt to GDP ratio, Greece with 161.9% and Italy with 134%.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 20,356.42; the CAC-40 index rose by 0.5% to 7,460.29; and the FTSE 100 index inched higher by 0.4% to 8,342.61.
The yield on 10-year German bonds edged lower to 2.10%, French bonds inched down to 2.85%, the UK gilts decreased to 4.26%, and Italian bonds decreased to 3.18%.
The euro edged higher to $1.05; the British pound inched up to $41.27; and the U.S. dollar eased to 87.88 Swiss cents.
Brent crude decreased $0.84 to $71.95 a barrel, and the Dutch TTF natural gas fell by €0.72 to €45.81 per MWh.
Europe Stock Movers
French luxury stocks rebounded in the hopes that Chinese leaders are likely to follow through with the previously announced additional fiscal measures.
LVMH rose 2.8% to €648.0, Hermes International advanced 1.4% to €2,290.0, Remy Cointreau SA jumped 3.3% to €62.25, and Pernod Ricard SA gained 1.9% to €110.85.
Banco BPM SA gained 1.5% to €7.66 after France-based Credit Agricole SA increased its stake in the bank to 15.1% from 9.9%, provided the Italian regulatory authorities approve the additional investment.
Hello Fresh SE declined 7.7% to €12.14 following reports that the meal kit provider is being investigated by the U.S. authorities for child labor allegations.
Sartorius SA jumped 0.4% to €180.50 after the French pharmaceutical company appointed a new chief executive.
China Inflation Indicators Confirm Persistent Deflationary Trend
Li Chen
09 Dec, 2024
Hong Kong
Stock market indexes in China and Hong Kong declined in Monday's trading after the release of the latest inflation data.
China's latest consumer and producer price inflation confirmed the ongoing deflationary trends, raising expectations of additional stimulus measures following the key policy meeting later in the week.
The annual consumer price inflation in November slowed to 0.2% from 0.3% in October, a five-month low, confirming that the slew of fiscal and monetary stimulus measures may take longer to revive weak consumer sentiment.
Core inflation, which excludes volatile food and energy prices, rose annual 0.3%, following 0.2% rise in October.
Producer price inflation declined at a slower pace of 2.5% in November compared to the fall of 2.9% in October, marking the 26th consecutive month of deflation.
On Monday, the National Bureau of Statistics released two inflation indicators in separate reports.
China Stock Movers
The Hang Seng index decreased 0.4% to 19,784.47, and the mainland-focused CSI 300 index declined 0.2% to 3,967.30.
New Oriental Education and Kuaishou fell on the first day of trading after both stocks were added to the Hang Seng index.
New Oriental Education declined 2.7% to HK $48.30, and Kuaishou Technology dropped 2.9% to HK $46.20.
Property stocks were in focus ahead of the key economic policy meeting chaired by President Xi Jinping later in the week.
China Vanke Co. Ltd. decreased 3.4% to HK $6.25, China Resources Land fell 1.8% to HK $23.30, Longfor Group Holdings dropped 2.5% to HK $10.92, and New World Development Co. Ltd. eased 2.3% to HK $6.33.
China Inflation Indicators Confirm Persistent Deflationary Trend
Li Chen
09 Dec, 2024
Hong Kong
Stock market indexes in China and Hong Kong declined in Monday's trading after the release of the latest inflation data.
China's latest consumer and producer price inflation confirmed the ongoing deflationary trends, raising expectations of additional stimulus measures following the key policy meeting later in the week.
The annual consumer price inflation in November slowed to 0.2% from 0.3% in October, a five-month low, confirming that the slew of fiscal and monetary stimulus measures may take longer to revive weak consumer sentiment.
Core inflation, which excludes volatile food and energy prices, rose annual 0.3%, following 0.2% rise in October.
Producer price inflation declined at a slower pace of 2.5% in November compared to the fall of 2.9% in October, marking the 26th consecutive month of deflation.
On Monday, the National Bureau of Statistics released two inflation indicators in separate reports.
China Stock Movers
The Hang Seng index decreased 0.4% to 19,784.47, and the mainland-focused CSI 300 index declined 0.2% to 3,967.30.
New Oriental Education and Kuaishou fell on the first day of trading after both stocks were added to the Hang Seng index.
New Oriental Education declined 2.7% to HK $48.30, and Kuaishou Technology dropped 2.9% to HK $46.20.
Property stocks were in focus ahead of the key economic policy meeting chaired by President Xi Jinping later in the week.
China Vanke Co. Ltd. decreased 3.4% to HK $6.25, China Resources Land fell 1.8% to HK $23.30, Longfor Group Holdings dropped 2.5% to HK $10.92, and New World Development Co. Ltd. eased 2.3% to HK $6.33.
India Movers: Aadhar Housing, CEAT, GPCL, One97 Communications, Spicejet, SBI
Arun Goswami
09 Dec, 2024
Mumbai
Stock market indexes in Mumbai edged lower amid weak international market sentiment and rising tensions in the Middle East.
The Sensex index decreased by 0.3% to 81,481.75, and the Nifty index dropped by 0.4% to 24,591.70.
On the Mumbai stock exchange, 158 stocks traded at their 52-week highs, and 15 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.78%, and the Indian rupee eased to 84.73 against the U.S. dollar.
CEAT Ltd. soared 11.3% to ₹3,444.25, and the tire maker said it agreed to acquire off-highway brand Camso owned by France-based Michelin for $225 million (about ₹1,900 crore).
One97 Communications Limited increased 0.5% to ₹981.55, and the parent company of online payment processor Paytm's Singapore-based company has agreed to sell its stake in Japan's PayPay to Softbank Vision Fund 2.
Aadhar Housing Finance Limited decreased 1.1% to ₹425.40, and the home finance company estimated its assets under management to rise to ₹25,000 crore at the end of the current financial year.
State Bank of India fell 0.2% to ₹862.10, and the bank said it plans to sell bad loans worth ₹2,72.35 crore related to Odisha-based ARSS Infrastructure Projects Ltd. through an auction.
SpiceJet Ltd. increased 0.01% to ₹61.48, and the discount airline is considering seeking shareholders' approval for an additional capital injection at its next annual general meeting on December 30.
Godrej Consumer Products Ltd. dropped 9.5% to ₹1,119.90 after the company warned of a challenging demand environment because of unseasonal rain negatively impacting its home insecticide business in the current quarter.
The company guided "flattish" volume growth and mid-single-digit revenue growth in its domestic market in the December quarter.
India Movers: Aadhar Housing, CEAT, GPCL, One97 Communications, Spicejet, SBI
Arun Goswami
09 Dec, 2024
Mumbai
Stock market indexes in Mumbai edged lower amid weak international market sentiment and rising tensions in the Middle East.
The Sensex index decreased by 0.3% to 81,481.75, and the Nifty index dropped by 0.4% to 24,591.70.
On the Mumbai stock exchange, 158 stocks traded at their 52-week highs, and 15 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.78%, and the Indian rupee eased to 84.73 against the U.S. dollar.
CEAT Ltd. soared 11.3% to ₹3,444.25, and the tire maker said it agreed to acquire off-highway brand Camso owned by France-based Michelin for $225 million (about ₹1,900 crore).
One97 Communications Limited increased 0.5% to ₹981.55, and the parent company of online payment processor Paytm's Singapore-based company has agreed to sell its stake in Japan's PayPay to Softbank Vision Fund 2.
Aadhar Housing Finance Limited decreased 1.1% to ₹425.40, and the home finance company estimated its assets under management to rise to ₹25,000 crore at the end of the current financial year.
State Bank of India fell 0.2% to ₹862.10, and the bank said it plans to sell bad loans worth ₹2,72.35 crore related to Odisha-based ARSS Infrastructure Projects Ltd. through an auction.
SpiceJet Ltd. increased 0.01% to ₹61.48, and the discount airline is considering seeking shareholders' approval for an additional capital injection at its next annual general meeting on December 30.
Godrej Consumer Products Ltd. dropped 9.5% to ₹1,119.90 after the company warned of a challenging demand environment because of unseasonal rain negatively impacting its home insecticide business in the current quarter.
The company guided "flattish" volume growth and mid-single-digit revenue growth in its domestic market in the December quarter.
S&P 500 and Nasdaq Trade at New Highs, Labor Market Bounces Back From Storms and Strikes
Barry Adams
06 Dec, 2024
New York City
Wall Street indexes moved in a tight range in early trading on Friday after November's payrolls report confirmed tight labor market conditions.
The S&P 500 index increased 0.2%, and the Nasdaq Composite advanced a fraction after nonfarm payrolls increase rebounded from the anemic increase of 12,000.
Nonfarm payrolls in November jumped by 227,000 from the upwardly revised 32,000 in October, the U.S. Bureau of Labor Statistics reported Friday.
The closely watched labor market confirmed the sustained hiring in healthcare, leisure and hospitality, government, and social assistance.
Employment increased in transportation equipment manufacturing, reflecting the return of workers who were on strike; however, retail trade lost jobs.
Employment growth in the previous month was negatively impacted by the Boeing strike and two back-to-back hurricanes, Helene and Milton, spanning several states in the South.
Over the past 12 months, the U.S. economy added 186,000 jobs per month.
Both the unemployment rate, at 4.2%, and the number of unemployed people, at 7.1 million, changed little in November.
These measures are higher than a year earlier, when the jobless rate was 3.7% and the number of unemployed people was 6.3 million.
The average hourly earnings for all employees increased 13 cents, or 0.4%, to $35.61, extending the annual increase over the last 12 months to 4.0%.
Wage inflation is critically watched by the Fed's policymakers, as the rise in wages contributes to higher overall inflation in the following months.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.4% to 6,097.48, the Nasdaq Composite rose 0.6% to 19,822.90, and the Russell 2000 index advanced by 0.7% to 2,414.06.
The yield on 2-year Treasury notes edged lower to 4.09%, 10-year Treasury notes inched down to 4.13%, and 30-year Treasury bonds decreased to 4.30%.
WTI crude oil decreased $0.81 to $67.41 a barrel, and natural gas prices edged down 4 cents to $3.03 a thermal unit.
Gold increased by $2.70 to $2,636.43 an ounce, and silver fell by $0.28 to $31.06.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.09 to 105.80.
Stock Movers
Ulta Beauty Inc. surged 9.3% to $429.0 after the cosmetic retailer reported better-than-expected results in the fiscal third quarter.
Revenue increased to $2.53 billion from $2.49 billion, net income dropped to $242.2 million from $249.5 million, and diluted earnings per share rose to $5.14 from $5.07 a year earlier.
Comparable same-store sales growth slowed to 0.6% from 4.5% in the quarter a year ago.
During the third quarter of fiscal 2024, the retailer repurchased 731,458 shares of its common stock at a cost of $267 million.
During the first nine months of fiscal year 2024, the company repurchased 1.9 million shares of its common stock at a cost of $764.5 million.
As of November 2, $2.9 billion remained available under the $3 billion share repurchase program announced in October 2024.
Lululemon Athletica Inc. increased 8.5% to $373.80, and the athleisure apparel retailer reported better-than-expected quarterly earnings.
Revenue in the fiscal third quarter ending in October increased 9% to $2.4 billion, net income soared to $351.9 million from $248.7 million, and diluted earnings per share advanced to $2.87 from $1.96 a year ago.
For the fourth quarter of 2024, the retailer estimated net revenue to be in the range of $3.475 billion to $3.510 billion, representing growth of 8% to 10%, or 3% to 4% excluding the 53rd week of 2024.
Diluted earnings per share are expected to be in the range of $5.56 to $5.64 for the quarter, assuming a tax rate of approximately 29.5%.
For full-year 2024, the company now expects net revenue to be in the range of $10.452 billion to $10.487 billion, representing growth of 9%, or 7% excluding the 53rd week of 2024.
Diluted earnings per share are now expected to be in the range of $14.08 to $14.16 for the year, assuming a tax rate of approximately 30%.
GitLab Inc. jumped 12.7% to $74.25, and the developer software tools company reported better-than-expected adjusted earnings and announced the appointment of a new chief executive effective today.
Revenue in the fiscal third quarter ending in October soared 31% to $196 million from $149.7 million, net income swung to a profit of $29.6 million from a loss of $285.2 million, and diluted earnings per share were 18 cents compared to a loss of $1.84 a year earlier.
The company guided revenue in the fiscal fourth quarter to range between $205 million and $206 million and adjusted earnings per share between 22 cents and 23 cents.
The company named Bill Staples as new chief executive, succeeding CEO and co-founder Sid Sijbrandij, "who is stepping down from day-to-day activities to focus on his health."
U.S. Movers: GitLab, Lululemon Athletica, Ulta Beauty
Scott Peters
06 Dec, 2024
New York City
Ulta Beauty Inc. surged 9.3% to $429.0 after the cosmetic retailer reported better-than-expected results in the fiscal third quarter.
Revenue increased to $2.53 billion from $2.49 billion, net income dropped to $242.2 million from $249.5 million, and diluted earnings per share rose to $5.14 from $5.07 a year earlier.
Comparable same-store sales growth slowed to 0.6% from 4.5% in the quarter a year ago.
During the third quarter of fiscal 2024, the retailer repurchased 731,458 shares of its common stock at a cost of $267 million.
During the first nine months of fiscal year 2024, the company repurchased 1.9 million shares of its common stock at a cost of $764.5 million.
As of November 2, $2.9 billion remained available under the $3 billion share repurchase program announced in October 2024.
Lululemon Athletica Inc. increased 8.5% to $373.80, and the athleisure apparel retailer reported better-than-expected quarterly earnings.
Revenue in the fiscal third quarter ending in October increased 9% to $2.4 billion, net income soared to $351.9 million from $248.7 million, and diluted earnings per share advanced to $2.87 from $1.96 a year ago.
For the fourth quarter of 2024, the retailer estimated net revenue to be in the range of $3.475 billion to $3.510 billion, representing growth of 8% to 10%, or 3% to 4% excluding the 53rd week of 2024.
Diluted earnings per share are expected to be in the range of $5.56 to $5.64 for the quarter, assuming a tax rate of approximately 29.5%.
For full-year 2024, the company now expects net revenue to be in the range of $10.452 billion to $10.487 billion, representing growth of 9%, or 7% excluding the 53rd week of 2024.
Diluted earnings per share are now expected to be in the range of $14.08 to $14.16 for the year, assuming a tax rate of approximately 30%.
GitLab Inc. jumped 12.7% to $74.25, and the developer software tools company reported better-than-expected adjusted earnings and announced the appointment of a new chief executive effective today.
Revenue in the fiscal third quarter ending in October soared 31% to $196 million from $149.7 million, net income swung to a profit of $29.6 million from a loss of $285.2 million, and diluted earnings per share were 18 cents compared to a loss of $1.84 a year earlier.
The company guided revenue in the fiscal fourth quarter to range between $205 million and $206 million and adjusted earnings per share between 22 cents and 23 cents.
The company named Bill Staples as new chief executive, succeeding CEO and co-founder Sid Sijbrandij, "who is stepping down from day-to-day activities to focus on his health."
U.S. Movers: GitLab, Lululemon Athletica, Ulta Beauty
Scott Peters
06 Dec, 2024
New York City
Ulta Beauty Inc. surged 9.3% to $429.0 after the cosmetic retailer reported better-than-expected results in the fiscal third quarter.
Revenue increased to $2.53 billion from $2.49 billion, net income dropped to $242.2 million from $249.5 million, and diluted earnings per share rose to $5.14 from $5.07 a year earlier.
Comparable same-store sales growth slowed to 0.6% from 4.5% in the quarter a year ago.
During the third quarter of fiscal 2024, the retailer repurchased 731,458 shares of its common stock at a cost of $267 million.
During the first nine months of fiscal year 2024, the company repurchased 1.9 million shares of its common stock at a cost of $764.5 million.
As of November 2, $2.9 billion remained available under the $3 billion share repurchase program announced in October 2024.
Lululemon Athletica Inc. increased 8.5% to $373.80, and the athleisure apparel retailer reported better-than-expected quarterly earnings.
Revenue in the fiscal third quarter ending in October increased 9% to $2.4 billion, net income soared to $351.9 million from $248.7 million, and diluted earnings per share advanced to $2.87 from $1.96 a year ago.
For the fourth quarter of 2024, the retailer estimated net revenue to be in the range of $3.475 billion to $3.510 billion, representing growth of 8% to 10%, or 3% to 4% excluding the 53rd week of 2024.
Diluted earnings per share are expected to be in the range of $5.56 to $5.64 for the quarter, assuming a tax rate of approximately 29.5%.
For full-year 2024, the company now expects net revenue to be in the range of $10.452 billion to $10.487 billion, representing growth of 9%, or 7% excluding the 53rd week of 2024.
Diluted earnings per share are now expected to be in the range of $14.08 to $14.16 for the year, assuming a tax rate of approximately 30%.
GitLab Inc. jumped 12.7% to $74.25, and the developer software tools company reported better-than-expected adjusted earnings and announced the appointment of a new chief executive effective today.
Revenue in the fiscal third quarter ending in October soared 31% to $196 million from $149.7 million, net income swung to a profit of $29.6 million from a loss of $285.2 million, and diluted earnings per share were 18 cents compared to a loss of $1.84 a year earlier.
The company guided revenue in the fiscal fourth quarter to range between $205 million and $206 million and adjusted earnings per share between 22 cents and 23 cents.
The company named Bill Staples as new chief executive, succeeding CEO and co-founder Sid Sijbrandij, "who is stepping down from day-to-day activities to focus on his health."
S&P 500 and Nasdaq Trade at New Highs after Labor Market Bounces Back Following Storms and Strikes
Barry Adams
06 Dec, 2024
New York City
Wall Street indexes moved in a tight range in early trading on Friday after November's payrolls report confirmed tight labor market conditions.
The S&P 500 index increased 0.2%, and the Nasdaq Composite advanced a fraction after nonfarm payrolls increase rebounded from the anemic increase of 12,000.
Nonfarm payrolls in November jumped by 227,000 from the upwardly revised 32,000 in October, the U.S. Bureau of Labor Statistics reported Friday.
The closely watched labor market confirmed the sustained hiring in healthcare, leisure and hospitality, government, and social assistance.
Employment increased in transportation equipment manufacturing, reflecting the return of workers who were on strike; however, retail trade lost jobs.
Employment growth in the previous month was negatively impacted by the Boeing strike and two back-to-back hurricanes, Helene and Milton, spanning several states in the South.
Over the past 12 months, the U.S. economy added 186,000 jobs per month.
Both the unemployment rate, at 4.2%, and the number of unemployed people, at 7.1 million, changed little in November.
These measures are higher than a year earlier, when the jobless rate was 3.7% and the number of unemployed people was 6.3 million.
The average hourly earnings for all employees increased 13 cents, or 0.4%, to $35.61, extending the annual increase over the last 12 months to 4.0%.
Wage inflation is critically watched by the Fed's policymakers, as the rise in wages contributes to higher overall inflation in the following months.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.4% to 6,097.48, the Nasdaq Composite rose 0.6% to 19,822.90, and the Russell 2000 index advanced by 0.7% to 2,414.06.
The yield on 2-year Treasury notes edged lower to 4.09%, 10-year Treasury notes inched down to 4.13%, and 30-year Treasury bonds decreased to 4.30%.
WTI crude oil decreased $0.81 to $67.41 a barrel, and natural gas prices edged down 4 cents to $3.03 a thermal unit.
Gold increased by $2.70 to $2,636.43 an ounce, and silver fell by $0.28 to $31.06.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher by 0.09 to 105.80.
Stock Movers
Ulta Beauty Inc. surged 9.3% to $429.0 after the cosmetic retailer reported better-than-expected results in the fiscal third quarter.
Revenue increased to $2.53 billion from $2.49 billion, net income dropped to $242.2 million from $249.5 million, and diluted earnings per share rose to $5.14 from $5.07 a year earlier.
Comparable same-store sales growth slowed to 0.6% from 4.5% in the quarter a year ago.
During the third quarter of fiscal 2024, the retailer repurchased 731,458 shares of its common stock at a cost of $267 million.
During the first nine months of fiscal year 2024, the company repurchased 1.9 million shares of its common stock at a cost of $764.5 million.
As of November 2, $2.9 billion remained available under the $3 billion share repurchase program announced in October 2024.
Lululemon Athletica Inc. increased 8.5% to $373.80, and the athleisure apparel retailer reported better-than-expected quarterly earnings.
Revenue in the fiscal third quarter ending in October increased 9% to $2.4 billion, net income soared to $351.9 million from $248.7 million, and diluted earnings per share advanced to $2.87 from $1.96 a year ago.
For the fourth quarter of 2024, the retailer estimated net revenue to be in the range of $3.475 billion to $3.510 billion, representing growth of 8% to 10%, or 3% to 4% excluding the 53rd week of 2024.
Diluted earnings per share are expected to be in the range of $5.56 to $5.64 for the quarter, assuming a tax rate of approximately 29.5%.
For full-year 2024, the company now expects net revenue to be in the range of $10.452 billion to $10.487 billion, representing growth of 9%, or 7% excluding the 53rd week of 2024.
Diluted earnings per share are now expected to be in the range of $14.08 to $14.16 for the year, assuming a tax rate of approximately 30%.
GitLab Inc. jumped 12.7% to $74.25, and the developer software tools company reported better-than-expected adjusted earnings and announced the appointment of a new chief executive effective today.
Revenue in the fiscal third quarter ending in October soared 31% to $196 million from $149.7 million, net income swung to a profit of $29.6 million from a loss of $285.2 million, and diluted earnings per share were 18 cents compared to a loss of $1.84 a year earlier.
The company guided revenue in the fiscal fourth quarter to range between $205 million and $206 million and adjusted earnings per share between 22 cents and 23 cents.
The company named Bill Staples as new chief executive, succeeding CEO and co-founder Sid Sijbrandij, "who is stepping down from day-to-day activities to focus on his health."
Europe Movers: Aviva, Berkley Group, Direct Line, French Banks
Inga Muller
06 Dec, 2024
Frankfurt
European markets extended gains for the seventh session in a row amid rising political instability in France.
For the week, the benchmark indexes in Frankfurt and Paris rose nearly 4%.
The DAX index increased by 0.2% to 20,402.89; the CAC-40 index rose by 1.2% to 7,421.52; and the FTSE 100 index inched lower by 0.01% to 8,348.56.
The yield on 10-year German bonds edged higher to 2.12%, French bonds inched up to 2.87%, the UK gilts increased to 4.28%, and Italian bonds decreased to 3.19%.
Direct Line Insurance Group PLC soared 7.2% to 252.82 pence after the company said it will recommend a sweetened offer of £3.61 billion or 275 pence per share from Aviva.
Aviva plc decreased 0.3% to 487.80 pence.
Berkley Group Holdings declined 2.6% to 4,056.0 pence after the UK-based home builder reported a decline in profit in the first half of the fiscal year.
French stocks advanced for the third session in a row, amid hopes that France will have a new government in days and not in weeks, following President Macron's televised address.
Société Générale rebounded 1.4% to €25.98, BNP Paribas rose 1.6% to €58.92, AXA advanced 1.4% to €34.13, and Saint Gobain SA gained 1.6% to €89.30.
Europe Movers: Aviva, Berkley Group, Direct Line, French Banks
Inga Muller
06 Dec, 2024
Frankfurt
European markets extended gains for the seventh session in a row amid rising political instability in France.
For the week, the benchmark indexes in Frankfurt and Paris rose nearly 4%.
The DAX index increased by 0.2% to 20,402.89; the CAC-40 index rose by 1.2% to 7,421.52; and the FTSE 100 index inched lower by 0.01% to 8,348.56.
The yield on 10-year German bonds edged higher to 2.12%, French bonds inched up to 2.87%, the UK gilts increased to 4.28%, and Italian bonds decreased to 3.19%.
Direct Line Insurance Group PLC soared 7.2% to 252.82 pence after the company said it will recommend a sweetened offer of 3.61 billion or 275 pence per share from Aviva.
Aviva plc decreased 0.3% to 487.80 pence.
Berkley Group Holdings declined 2.6% to 4,056.0 pence after the UK-based home builder reported a decline in profit in the first half of the fiscal year.
French stocks advanced for the third session in a row, amid hopes that France will have a new government in days and not in weeks, following President Macron's televised address.
Société Générale rebounded 1.4% to €25.98, BNP Paribas rose 1.6% to €58.92, AXA advanced 1.4% to €34.13, and Saint Gobain SA gained 1.6% to €89.30.
European Markets Extend Weekly Gains to 4%, French Politics In Uncharted Territory
Bridgette Randall
06 Dec, 2024
London
European markets advanced for the seventh session in a row in the hopes that France will soon have a new government.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged higher in choppy trading, and bond yields hovered near two-year lows.
Political crisis in France remained the main focus in Europe's trading, and investors for now ignored the possibility of the political turmoil turning into a full-blown financial crisis.
Deep divisions among three groups of lawmakers sank the minority government for the first time in more than sixty years, leaving the 2025 budget unapproved.
France's president, Emmanuel Macron, put up a brave face in Thursday's televised comments to the nation, but calls for his resignation are growing louder.
Macron confirmed that a new special law will be presented in the parliament to avoid a government shutdown and continue the affairs of the government uninterrupted.
France's budget deficit is likely to cross 6.1% in 2024, and without the approved social security budget and financial budget, the government's deficit is likely to stay elevated, further putting pressure on the euro and denting consumer sentiment and business investment.
For now, bond markets have been accommodative, but the forgiving attitude can quickly change to punishing sentiment in a matter of days.
If President Macron fails to appoint a prime minister that could hold the government together till the next summer, market sentiment could deteriorate, driving French bond yields sharply higher.
France's constitution requires a gap of one year after the most recent general elections, which took place on June 30 and July 7.
Germany's Industrial Production Decline Confirms Negative Trend
Closer to home on the economic front, Germany's industrial production in October declined, confirming the long-term trend in place since 2021.
The seasonally adjusted industrial production in October declined 1% from the previous month, the Federal Statistical Office said Friday.
The overall production was negatively impacted by an 8.9% fall in energy production and a 1.9% decrease in the automotive sector.
Manufacturing sector production fell 0.3% from the previous month, driven by a 1% decline in consumer goods and a 0.4% fall in capital goods.
Construction output was flat compared to the previous month.
On an annual basis, overall industrial production, which includes manufacturing, energy, and construction sectors, declined 4.5% from a year ago.
Europe Indexes and Yields
The DAX index increased by 0.2% to 20,402.89; the CAC-40 index rose by 1.2% to 7,421.52; and the FTSE 100 index inched lower by 0.01% to 8,348.56.
The yield on 10-year German bonds edged higher to 2.12%, French bonds inched up to 2.87%, the UK gilts increased to 4.28%, and Italian bonds decreased to 3.19%.
The euro edged higher to $1.05; the British pound inched up to $41.27; and the U.S. dollar eased to 87.77 Swiss cents.
Brent crude decreased $0.73 to $71.35 a barrel, and the Dutch TTF natural gas fell by €0.26 to €46.23 per MWh.
Europe Stock Movers
Direct Line Insurance Group PLC soared 7.2% to 252.82 pence after the company said it will recommend a sweetened offer of 3.61 billion or 275 pence per share from Aviva.
Aviva plc decreased 0.3% to 487.80 pence.
Berkley Group Holdings declined 2.6% to 4,056.0 pence after the UK-based home builder reported a decline in profit in the first half of the fiscal year.
French stocks advanced for the third session in a row, amid hopes that France will have a new government in days and not in weeks, following President Macron's televised address.
Société Générale rebounded 1.4% to €25.98, BNP Paribas rose 1.6% to €58.92, AXA advanced 1.4% to €34.13, and Saint Gobain SA gained 1.6% to €89.30.
European Markets Extend Weekly Gains to 4%, French Politics In Uncharted Territory
Bridgette Randall
06 Dec, 2024
London
European markets advanced for the seventh session in a row in the hopes that France will soon have a new government.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged higher in choppy trading, and bond yields hovered near two-year lows.
Political crisis in France remained the main focus in Europe's trading, and investors for now ignored the possibility of the political turmoil turning into a full-blown financial crisis.
Deep divisions among three groups of lawmakers sank the minority government for the first time in more than sixty years, leaving the 2025 budget unapproved.
France's president, Emmanuel Macron, put up a brave face in Thursday's televised comments to the nation, but calls for his resignation are growing louder.
Macron confirmed that a new special law will be presented in the parliament to avoid a government shutdown and continue the affairs of the government uninterrupted.
France's budget deficit is likely to cross 6.1% in 2024, and without the approved social security budget and financial budget, the government's deficit is likely to stay elevated, further putting pressure on the euro and denting consumer sentiment and business investment.
For now, bond markets have been accommodative, but the forgiving attitude can quickly change to punishing sentiment in a matter of days.
If President Macron fails to appoint a prime minister that could hold the government together till the next summer, market sentiment could deteriorate, driving French bond yields sharply higher.
France's constitution requires a gap of one year after the most recent general elections, which took place on June 30 and July 7.
Germany's Industrial Production Decline Confirms Negative Trend
Closer to home on the economic front, Germany's industrial production in October declined, confirming the long-term trend in place since 2021.
The seasonally adjusted industrial production in October declined 1% from the previous month, the Federal Statistical Office said Friday.
The overall production was negatively impacted by an 8.9% fall in energy production and a 1.9% decrease in the automotive sector.
Manufacturing sector production fell 0.3% from the previous month, driven by a 1% decline in consumer goods and a 0.4% fall in capital goods.
Construction output was flat compared to the previous month.
On an annual basis, overall industrial production, which includes manufacturing, energy, and construction sectors, declined 4.5% from a year ago.
Europe Indexes and Yields
The DAX index increased by 0.2% to 20,402.89; the CAC-40 index rose by 1.2% to 7,421.52; and the FTSE 100 index inched lower by 0.01% to 8,348.56.
The yield on 10-year German bonds edged higher to 2.12%, French bonds inched up to 2.87%, the UK gilts increased to 4.28%, and Italian bonds decreased to 3.19%.
The euro edged higher to $1.05; the British pound inched up to $41.27; and the U.S. dollar eased to 87.77 Swiss cents.
Brent crude decreased $0.73 to $71.35 a barrel, and the Dutch TTF natural gas fell by €0.26 to €46.23 per MWh.
Europe Stock Movers
Direct Line Insurance Group PLC soared 7.2% to 252.82 pence after the company said it will recommend a sweetened offer of 3.61 billion or 275 pence per share from Aviva.
Aviva plc decreased 0.3% to 487.80 pence.
Berkley Group Holdings declined 2.6% to 4,056.0 pence after the UK-based home builder reported a decline in profit in the first half of the fiscal year.
French stocks advanced for the third session in a row, amid hopes that France will have a new government in days and not in weeks, following President Macron's televised address.
Société Générale rebounded 1.4% to €25.98, BNP Paribas rose 1.6% to €58.92, AXA advanced 1.4% to €34.13, and Saint Gobain SA gained 1.6% to €89.30.