Market Update
Tokyo Indexes Struggle After Tech Stock Weakness, Sumitomo Pharma Plunges 7%
Akira Ito
02 May, 2024
Tokyo
Stocks in Tokyo declined, and the yen rebounded for the second day in a row, amid tech stock weakness and the possible intervention by the central bank.
The Nikkei and the Topix indexes lacked direction in Thursday's trading after the U.S. Federal Reserve held rates steady but signaled that the future rate path is highly uncertain.
Fed Chair Jerome Powell also ruled out the possibility of a rate hike in the immediate future and confirmed that inflation has moderated over the last year, but progress has stalled in recent months.
Powell added that the central bank is prepared to keep rates high as long as needed until it gains greater confidence that inflation is on the path of its target rate of 2%.
Closer to home, the minutes of the Bank of Japan's policy meeting held on March 18 and 19 showed Thursday that policymakers believe the central bank's inflation target of 2% is within reach.
Moreover, the monetary base increased 2.1% from a year ago in April to 689.896 trillion yen, and the adjusted monetary base soared 11.4% from a year ago. the Bank of Japan said Thursday.
The Japanese yen rebounded for the second day in a row to 155.70, stoking speculation that the Bank of Japan, in coordination with the ministry of finance, intervened for the second day in a row.
Tech stocks in the U.S. sold on the worry that higher rates are likely to stay elevated amid positive U.S. economic data and resilient labor market conditions.
The Nikkei 225 Stock Average decreased 0.07% to 38,245.08, and the Topix index declined a fraction to 2,729.17.
Tech stocks in Japan followed the weakness in New York.
Tokyo Electron, Advantest, Socionext, SoftBank, and Screen Holdings decreased between 0.3% and 1.8%.
Financial stocks were also among the leading decliners after the U.S. rate decision announcement.
Sumitomo Mitsui Group declined 1.2% to ¥8,881.0, Mitsubishi UFJ fell 0.5% to ¥1,557.50, and Mizuho Financial Group eased 0.3% to ¥3,010.0.
Sumitomo Pharma dropped 7% to ¥373.0 after the company reported lower-than-estimated revenue and higher-than-estimated losses in the fiscal year 2024 ending in March.
Revenue was revised lower to 314.6 billion yen from the previous estimate of 317 billion yen, and net loss attributable to shareholders was revised higher to 315 billion yen from the previous estimate of 147 billion yen.
The loss per share was revised to 792.86 yen from the previous estimate of 354.90 yen.
The company also suspended its dividend after the sharp decline in core profit.
India Movers: Eicher Motor, Godrej Group, Hero MotoCorp, Jindal Stainless, Maruti Suzuki, Tata Motors
Arun Goswami
02 May, 2024
Mumbai
Stocks in Mumbai traded down after investors returned from a holiday and digested the latest updates on GST collections and core industry output.
Core industry output rose at a slower pace of 5.2% in March, after rising at an annual pace of 7.1% in the previous month, but faster than the 4.2% pace in the month a year ago, the ministry of commerce and industry announced in a report on Wednesday.
GST collections in April rose 12.4% to a record high of 2.10 lakh crore, the ministry of finance reported Wednesday.
The Sensex index decreased by 0.23% to 74,078.82, and the Nifty index fell by 0.2% to 22,530.06.
On the Mumbai stock exchange, 119 stocks traded at their 52-week highs, and 6 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.20%, and the Indian rupee edged lower at ₹83.43 against the U.S. dollar.
Godrej Group companies were in focus after the family reached an agreement to split the conglomerate.
Brothers Adi and Nadir Godrej will own publicly listed companies, while cousin Jamshyd Godrej will own a land portfolio and privately held companies.
Hero MotoCorp increased 2.2% to ₹4,551.0 after the company said two-wheeler vehicle sales in April increased 34.7% from a year ago to 533,585 units.
Eicher Motors increased 1% to ₹4,615.50 after the company said domestic truck and bus sales increased 20% and international sales rose 38.5%.
Maruti Suzuki advanced 0.9% to ₹12,800.0 after the passenger car maker said vehicle sales in April were unchanged from a year ago at 168,000.
Tata Motors increased 0.7% to ₹1,008.0 after the company said total global vehicle sales in April increased 31% from a year ago to 77,521 units from 69,599.
Global commercial vehicle sales increased by 31% to 29,538 units, and passenger car sales rose by 2% to 47,983 units from a year ago, respectively.
Jindal Stainless rose 1% to ₹707.0, and the company announced its plans to invest 5,400 crore to meet its expansion plans.
Hong Kong Stocks Jump, EV Makers Report Mixed Sales In April Amid Brutal Price War
Li Chen
02 May, 2024
Hong Kong
Stocks in Hong Kong advanced after investors returned from a holiday, and financial markets in China are closed for the week.
Optimism ruled Hong Kong trading after the U.S. Federal Reserve held steady its benchmark rate, driving financial and insurance stocks higher.
The Hong Kong Monetary Authority held its reference rate steady at 5.75%, following the move by the U.S. Federal Reserve, under its linked exchange rate system reflecting the Hong Kong dollar's peg to the U.S. dollar.
The interest rate move supported the rise in financial and insurance stocks, and HSBC, Ping An, and AIA rose between 0.9% and 3.5%.
Property developers rose after the interest rate decision announcement, and U.S. Federal Reserve Chair Jerome Powell ruled out rate hikes in the near future.
Longfor Group added 7.3% to HK$12.72, China Vanke soared 10.5% to $5.10, and China Resources Land jumped 4.5% to HK$29.65.
Henderson Land increased 1.4% to HK$24.20, and Sun Hung Kai Properties jumped 2.4% to HK$74.05.
The Hang Seng index rose 2.2% to 18,150.91, and the Hang Seng Tech index jumped 3.5%.
Tech leaders also participated in the market rally, and Tencent Holdings, Meituan, Baidu, and Alibaba Group jumped between 2% and 9%.
Electric vehicle makers were in focus after the three leading makers reported mixed sales in April amid a brutal price war as the automakers struggled to gain market share amid slowing domestic demand growth.
Li Auto jumped 2.2% to HK$106.30 after the electric vehicle maker said April sales decreased 0.4% from the previous month to 25,787 units.
Sales in the first four months to April 2024 advanced 35.6% from a year ago to 106,187 units.
Xpeng soared 7.4% to HK$33.90 after the company said electric vehicle sales in April rose 4% from the previous month to 9,393 units.
Year-to-date sales rose 23% to 31,214 vehicles.
The company is engaged in a brutal price war amid fierce competition in the mid-price segment for cars priced between 200,000 and 300,000 yuan.
BYD jumped 4.3% to HK$225.60 after the largest electric vehicle maker in China said sales in April rose 3.6% to 313,245 units.
Year-to-date sales surged 49% to 210,295 units.
Nio soared 21.4% to HK$43.40 after the electric vehicle maker said April sales soared 31.6% from the previous month to 15,620 units, the largest monthly increase among the four leading automakers.
Sales in the first four months of April rose 21% from a year ago to 45,673 units.
Will the Fed Abandon the 2% Target Rate?
Alexander Garcia
01 May, 2024
Miami
Benchmark indexes on Wall Street retained a downward bias as investors await the Fed's rate decision.
The S&P 500 index and the Nasdaq Composite declined 0.2% ahead of the Federal Reserve's rate decisions and comments on the appropriate level of interest rates.
At the start of the year, the Fed had raised expectations of as many as four rate cuts in the year and suggested that while the economy is strong, there has been considerable progress in curbing inflationary pressures.
However, as the year progressed, those expectations of rate cuts were dashed after inflation stalled near 3%, primarily because of the elevated inflation in the service sector.
The Federal Reserve has raised interest rates eleven times between March 2022 and July 2023, lifting rates from zero to 5.5%.
But as inflation began to ease from the 40-year high peak of 9.1% in June 2022 and hovered above 3% in the second half of 2023 and first quarter of 2024, investors expectations rose that the Fed may have flexibility in decreasing rates as early as June.
However, progress in bringing down inflation to a 2% annual rate has stalled in the last six months, amid a resilient economy and moderating but tight labor market conditions.
The Fed's own projection on inflation at the beginning of the year also stoked speculation that policymakers are laying the groundwork for rate cuts in the second half.
The latest updates on inflation indicators, nonfarm payrolls, GDP growth, retail sales, and durable goods orders suggested that rates are not restrictive enough and wages are rising at rates not commensurate with the Fed's inflation target rate of 2%.
Job Openings Dropped to a 3-year Low
Job openings in March declined by 325,000 and dropped to the lowest level since February 2021, signaling moderating labor market conditions.
Job postings fell 0.2 percentage points to 5.1% of all workers, according to the Job Openings and Labor Turnover Survey released Wednesday.
Openings declined by 1.1 million from a year ago, as openings in construction fell by 182,000, declined in finance and insurance by 158,000, but increased in state and local government education by 68,000.
Over the month, both hiring and separations changed little, indicating labor market conditions are still tight but moderating.
In March, hirings declined by 455,000 to 5.5 million, while the total number of separations decreased by 339,000 to 5.2 million.
Taking into account the regional distribution, job openings in the West fell by 194,000, in the Midwest by 112,000, in the South by 41,000, but rose in the Northeast by 22,000.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.2% to 5,022.73, and the Nasdaq Composite fell 0.3% to 15,610,50.
The yield on 2-year Treasury notes edged higher to 5.04%, 10-year Treasury notes inched higher to 4.68%, and 30-year Treasury bonds edged lower to 4.78%.
WTI crude oil decreased $2.10 to $79.57 a barrel, and natural gas prices decreased 6 cents to $1.92 a thermal unit.
Gold increased by $16.52 to $2,307.93 an ounce, and silver rose 18 cents to $26.53.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 106.17.
U.S. Stock Movers
Starbucks Corp. dropped 13% to $77.0 after the coffee chain operator reported weaker-than-expected revenue and earnings in the first quarter.
Pinterest soared 16.6% to $39.03 after the social media company reported better-than-expected revenue and earnings in the first quarter.
Super Micro Computer dropped 14% to $738.50 after the company announced lower-than-expected third-quarter revenue of $3.85 billion and higher-than-expected adjusted earnings per share of $6.65.
Amazon.com rose 1.6% to $177.85 after the online retailer and cloud services provider reported better-than-expected revenue and earnings in the first quarter after advertising revenue soared 24%.
The company said revenue in the current quarter is expected to range between $144 billion and $149 billion, representing an increase between 7% and 11%.
The Amazon Web Services business soared 17% to $25 billion, calming the worries that the division's growth had topped out following slower growth last year.
AMD fell 6.8% to $147.70 after the advanced chipmaker reiterated its full-year outlook, dampening expectations of sales and earnings revisions.
FTSE 100 Index Trades Higher, European Markets Closed for May Day Holiday
The benchmark index in London edged slightly higher as financial markets in Continental Europe were closed for the May Day holiday.
The FTSE 100 index opened higher and bond yields held firm in thin trading as most traders were away in Zurich, Paris, Milan, and Frankfurt.
In April, benchmark indexes in London rose about 2.5%, but the DAX CAC-40 indexes dropped about 2% as investors adjusted rate-cut expectations and reacted to local corporate earnings.
In the absence of local and regional economic news, investors awaited the release of the U.S. Fed's monetary policy announcements later in the day after the close.
Fed policymakers are widely expected to hold the interest rate range between 5.25% and 5.50%, and investors are awaiting the Fed's direction on the level of interest rates.
Investors had bid up stocks in the first quarter in the hopes that policymakers were ready to begin rate cuts as early as June, followed by as many as three additional cuts later in the year.
However, those expectations have been lowered after several economic reports suggested that the U.S. economy and labor market conditions are more resilient than previously expected.
Moreover, several inflation indicators have stayed above the expectations set by economists, with service inflation staying above 3%, indicating that policymakers may await cooler inflation before lowering rates.
The lowered rate cut expectations had a direct and negative effect on investor sentiment, driving the U.S. benchmark indexes lower by more than 4% in April.
Europe Indexes and Yields
Financial markets in Frankfurt and Paris were close for the May Day holiday, and the FTSE 100 index in London inched lower by 0.3% to 8,120.97.
The yield on 10-year German bonds edged up to 2.58%; French bonds inched higher to 3.07%; the UK gilts edged higher to 4.38%; and Italian bonds inched lower to 3.87%.
The euro edged higher to $1.066; the British pound inched higher to $1.249; and the U.S. dollar edged higher to 92.06 Swiss cents.
Brent crude decreased $1.97 to $83.99 a barrel, and the Dutch TTF natural gas fell by €0.69 to €28.70 per MWh.
Europe Stock Movers
Aston Martin Lagonda Global declined 4.6% to 141.43 pence after the luxury automaker reported a wider-than-expected loss in the first quarter.
Revenue in the first quarter declined by 26% to £945 million from £1.3 billion; pre-tax losses expanded to £138.8 million from £74.2 million; and net debt increased by 20% to £1.04 billion from £868.1 million a year ago.
The company said vehicle sales declined in the quarter after it introduced new products, ended production of several core products, and ramped up production of the new Vantage, upgraded DBX 707, and V12 sports car.
Vehicle sales in the first quarter dropped 26% to 945 from 1,269 units in the corresponding period a year ago.
Next plc increased 0.1% to 9,020.49 pence after the apparel retailer reiterated its full-year outlook.
Revenue in the first quarter increased 5.7% from a year ago, driven by an 8.8% rise in online sales and flat in-store sales.
The retailer projected a full-year 2024 consolidated sales increase of 6% to £6.2 billion, a pre-tax profit rise of 4.6% to £960 million, and an after-tax earnings per share gain of 4.8% to 606.3 pence.
GSK plc increased 2.2% to 1,706.75 pence after the pharmaceutical company reported a better-than-expected 27% increase in its core operating profit in the first quarter.
Revenue in the first quarter increased 10% to 7.4 billion, core operating profit soared 27% to 2.4 billion, and earnings per share declined 19% to 25.7 pence.
The company announced a 15-pence per share cash dividend.
The pharmaceutical company's full-year sales are likely towards the upper end of its previously announced sales growth range of between 5% and 7%, with core operating profit rising between 9% and 11% and core earnings per share rising between 8% and 10%.
Domino's Pizza Group PLC decreased 0.7% to 323.40 pence after the company reported weaker-than-expected quarterly results.
Comparable sales in the first quarter declined by 0.5%, and total orders fell by 0.8% from the previous year, but on a two-year basis, comparable sales rose by 8.4%.
Total system sales in the first quarter declined 0.4% to £385.1 million from £386.6 million, and total orders on a comparable basis fell 0.8% to 17.7 million from 17.8 million a year ago.
Total orders fell 1.8% to 17.7 million from 18.0 million.
Japan's Manufacturing Contraction Extends to Eleventh Month
Stocks in Tokyo traded lower in thin trading and erased some of the gains in the previous two sessions as investors remained cautious amid the flood of earnings.
Market indexes fell in a broad selloff that saw technology and financial stocks leading the decliners following sharp declines in overnight trading in New York.
Market indexes fell nearly 1% on Wall Street after a measure of wages and benefits rose at the fastest pace in one year at 1.2%, supporting the case for the Federal Reserve to wait longer before lowering interest rates.
The expectations of fewer and delayed U.S. rate cuts soured market sentiment in New York, overhanging Tokyo trading.
Japan's manufacturing sector continued to contract for the eleventh month in a row, but at a slower pace in April, S&P Global reported in its final update.
The au Jibun Japan Manufacturing PMI eased to 49.6 in April from 49.9 in the preliminary estimate and a final 48.2 in March.
Manufacturing activities contracted at a slower pace in April as output and new orders shrank at a slower pace in the month.
However, business sentiment was unchanged from March, driven in part by improving demand, the report noted.
The Nikkei 225 Stock Average declined 0.2% to 38,356.20, and the Topix index dropped 0.3% to 2,733.96.
Tokyo Electron, Advantest, Screen Holdings, and SoftBank fell between 1.5% and 3.5%.
Toyota Motor, Honda Motor, and Nissan Motor declined between 0.4% and 1.1%.
Financial stocks were among the leading decliners, and Mitsubishi UFJ, Mizuho Financial, and Sumitomo Mitsui Financial Group decreased between 0.2% and 1.4%.
Rising travel demand lifted the revenue of three Japanese railway companies, driven by the ending of the travel restrictions imposed during COVID-19 and the return of international tourists.
East Japan Railway consolidated revenue in the year ending in March rose 13.5% to 2,730 billion yen, and West Japan Railway revenue rose 17.2% to 1,635 billion yen.
Central Japan Railway revenue surged 22.1% to 1,710 billion yen.
West Japan Railway increased 8% to ¥3,233.0; East Japan Railway added 3.3% to ¥2,987.50; and Central Japan Railway declined 0.1% to ¥3,614.0.
Lasertec Reports Strong Quarterly Results and Announces Executive Changes
Lasertec Corporation soared 15.8% to ¥40,080.0 after the company reported higher-than-expected sales and earnings in the nine-month period ending in March.
Consolidated nine-month revenue increased 97.9% to 157.2 billion yen from 79.4 billion yen, ordinary income soared 109.8% to 58.7 billion yen, and diluted earnings per share rose to 460.02 yen compared to 229.53 a year ago.
The company estimated sales in the fiscal year ending in June 2024 to increase by 27.6% to 195 billion yen, ordinary income to increase by 5.2% to 67 billion yen, and diluted earnings per share to be 543.32 yen.
The company reiterated its plans to pay a total cash dividend of 191 yen, higher than 180 yen a year ago.
The company also promoted its chief sales officer, Tetsuya Sendoda, as the new chief executive officer and the current CEO, Osamu Okabayashi, as the new chairman.
Job Openings Dropped to a 3-year Low In April
Brian Turner
01 May, 2024
Washington, D.C.
Job openings in March declined by 325,000 and dropped to the lowest level since February 2021, signaling moderating labor market conditions.
Job postings fell 0.2 percentage points to 5.1% of all workers, according to the Job Openings and Labor Turnover Survey released Wednesday.
Openings declined by 1.1 million from a year ago, as openings in construction fell by 182,000, declined in finance and insurance by 158,000, but increased in state and local government education by 68,000.
Over the month, both hiring and separations changed little, indicating labor market conditions are still tight but rapidly easily after openings peaked at 12.2 million in March 2022.
In March, hirings declined by 455,000 to 5.5 million, while the total number of separations decreased by 339,000 to 5.2 million.
Taking into account the regional distribution, job openings in the West fell by 194,000, in the Midwest by 112,000, in the South by 41,000, but rose in the Northeast by 22,000.
Stocks On Wall Street Turn Lower Ahead of Fed's Rate Decisions
Barry Adams
01 May, 2024
New York City
With all eyes on the Federal Reserve, benchmark indexes in early trading edged lower and extended the previous session's losses.
The S&P 500 index and the Nasdaq Composite declined 0.2% ahead of the Federal Reserve's rate decisions and comments on the level of interest rates.
At the start of the year, the Fed had raised expectations of as many as four rate cuts in the year and suggested that while the economy is strong, there has been considerable progress in curbing inflationary pressures.
However, as the year progressed, those expectations of rate cuts were dashed after inflation stalled near 3%, primarily because of the elevated inflation in the service sector.
The Federal Reserve has raised interest rates eleven times between March 2022 and July 2023, lifting rates from zero to 5.5%.
But as inflation began to ease from the 40-year high peak of 9.1% in June 2022 and hovered above 3% in the second half of 2023 and first quarter of 2024, investors expectations rose that the Fed may have flexibility in decreasing rates as early as June.
However, progress in bringing down inflation to a 2% annual rate has stalled in the last six months, amid a resilient economy and moderating but tight labor market conditions.
The Fed's own projection on inflation at the beginning of the year also stoked speculation that policymakers are laying the groundwork for rate cuts in the second half.
The latest updates on inflation indicators, nonfarm payrolls, GDP growth, retail sales, and durable goods orders suggested that rates are not restrictive enough and wages are rising at rates not commensurate with the Fed's inflation target rate of 2%.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to 5,015.04, and the Nasdaq Composite fell 0.3% to 15,582,72.
The yield on 2-year Treasury notes edged higher to 5.04%, 10-year Treasury notes inched higher to 4.68%, and 30-year Treasury bonds edged lower to 4.78%.
WTI crude oil decreased $1.48 to $80.45 a barrel, and natural gas prices decreased 5 cents to $1.93 a thermal unit.
Gold increased by $3.36 to $2,294.30 an ounce, and silver rose 11 cents to $26.48.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 106.29.
U.S. Stock Movers
Starbucks Corp. dropped 13% to $77.0 after the coffee chain operator reported weaker-than-expected revenue and earnings in the first quarter.
Pinterest soared 16.6% to $39.03 after the social media company reported better-than-expected revenue and earnings in the first quarter.
Super Micro Computer dropped 14% to $738.50 after the company announced lower-than-expected third-quarter revenue of $3.85 billion and higher-than-expected adjusted earnings per share of $6.65.
Amazon.com rose 1.6% to $177.85 after the online retailer and cloud services provider reported better-than-expected revenue and earnings in the first quarter after advertising revenue soared 24%.
The company said revenue in the current quarter is expected to range between $144 billion and $149 billion, representing an increase between 7% and 11%.
The Amazon Web Services business soared 17% to $25 billion, calming the worries that the division's growth had topped out following slower growth last year.
AMD fell 6.8% to $147.70 after the advanced chipmaker reiterated its full-year outlook, dampening expectations of sales and earnings revisions.
U.S. Movers: AMD, Amazon, Pinterest, Starbucks, Super Micro Computer
Scott Peters
01 May, 2024
New York City
Starbucks Corp. dropped 13% to $77.0 after the coffee chain operator reported weaker-than-expected revenue and earnings in the first quarter.
The expensive coffee chain is battling an uneven and fragile economic recovery in China, its second-largest market, and elevated inflation in the U.S. is keeping customers away from discretionary purchases.
Global comparable store sales declined 4%, driven by a 6% decline in comparable transactions, partially offset by a 2% increase in average ticket.
North America and U.S. comparable store sales declined 3%, driven by a 7% decline in comparable transactions, partially offset by a 4% increase in average ticket.
Consolidated revenue in the fiscal second quarter ending in arch declined 1.8% to $8.6 billion from $8.7 billion, net income dropped 15% to $772.4 million from $908.3 million, and diluted earnings per share declined to 68 cents from 79 cents a year ago.
The company increased cash dividends per share to 57 cents from 53 cents a year ago.
Pinterest soared 16.6% to $39.03 after the social media company reported better-than-expected revenue and earnings in the first quarter.
Revenue in the first quarter increased 23% to $740 million from $603 million, net loss shrank to $24.8 million from $208.6 million, and diluted loss per share eased to 4 cents from 31 cents a year ago.
The company projected second-quarter revenue between $835 million and $850 million, representing growth between 18% and 20% from a year ago.
Super Micro Computer dropped 14% to $738.50 after the company announced lower-than-expected third-quarter revenue of $3.85 billion and higher-than-expected adjusted earnings per share of $6.65.
Net sales in the fiscal third quarter ending in March increased to $3.85 billion from $1.28 billion, net income soared to $402.5 million from $85.5 million, and diluted earnings per share advanced to $6.56 from $1.53 a year ago.
The company estimated for the fiscal fourth quarter ending in June revenue between $5.1 billion and $5.5 billion and diluted earnings per share between $7.20 and $8.05, including $30 million in expenses related to stock-based compensation.
Amazon.com rose 1.6% to $177.85 after the online retailer and cloud services provider reported better-than-expected revenue and earnings in the first quarter after advertising revenue soared 24%.
Net sales in the first quarter increased 13% to $143.3 billion from $127.4 billion, net income soared to $10.3 billion from $3.2 billion, and diluted earnings per share advanced to 98 cents from 31 cents a year ago.
Sales in North America increased 12% from a year ago to $86.3 billion, and international sales rose 10%, or 11% in constant currency, to $31.9 billion.
The company said revenue in the current quarter is expected to range between $144 billion and $149 billion, representing an increase between 7% and 11%.
The Amazon Web Services business soared 17% to $25 billion, calming the worries that the division's growth had topped out following slower growth last year.
The company said it plans to invest $10 billion in Mississippi, the single largest capital investment in the state's history, and build two data center complexes and generate 1,000 jobs.
AMD fell 6.8% to $147.70 after the advanced chipmaker reiterated its full-year outlook, dampening expectations of sales and earnings revisions.
Revenue in the first quarter increased 2% to $5.47 billion from $5.35 billion, net income swung to a profit of $123 million from a loss of $139 million, and diluted earnings per share were 7 cents compared to a loss of 9 cents a year ago.
For the second quarter, AMD projected revenue of $5.7 billion with a band of $300 million, representing growth of 6% from a year ago at the midpoint of the revenue range.
Europe Movers: Aston Martin, Domino's Pizza, GSK Group, Next PLC
Inga Muller
01 May, 2024
Frankfurt
Aston Martin Lagonda Global declined 4.6% to 141.43 pence after the luxury automaker reported a wider-than-expected loss in the first quarter.
Revenue in the first quarter declined by 26% to £945 million from £1.3 billion; pre-tax losses expanded to £138.8 million from £74.2 million; and net debt increased by 20% to £1.04 billion from £868.1 million a year ago.
The company said vehicle sales declined in the quarter after it introduced new products, ended production of several core products, and ramped up production of the new Vantage, upgraded DBX 707, and V12 sports car.
Vehicle sales in the first quarter dropped 26% to 945 from 1,269 units in the corresponding period a year ago.
Next plc increased 0.1% to 9,020.49 pence after the apparel retailer reiterated its full-year outlook.
Revenue in the first quarter increased 5.7% from a year ago, driven by an 8.8% rise in online sales and flat in-store sales.
The retailer projected a full-year 2024 consolidated sales increase of 6% to £6.2 billion, a pre-tax profit rise of 4.6% to £960 million, and an after-tax earnings per share gain of 4.8% to 606.3 pence.
GSK plc increased 2.2% to 1,706.75 pence after the pharmaceutical company reported a better-than-expected 27% increase in its core operating profit in the first quarter.
Revenue in the first quarter increased 10% to 7.4 billion, core operating profit soared 27% to 2.4 billion, and earnings per share declined 19% to 25.7 pence.
The company announced a 15-pence per share cash dividend.
The pharmaceutical company's full-year sales are likely towards the upper end of its previously announced sales growth range of between 5% and 7%, with core operating profit rising between 9% and 11% and core earnings per share rising between 8% and 10%.
Domino's Pizza Group PLC decreased 0.7% to 323.40 pence after the company reported weaker-than-expected quarterly results.
Comparable sales in the first quarter declined by 0.5%, and total orders fell by 0.8% from the previous year, but on a two-year basis, comparable sales rose by 8.4%.
Total system sales in the first quarter declined 0.4% to £385.1 million from £386.6 million, and total orders on a comparable basis fell 0.8% to 17.7 million from 17.8 million a year ago.
Total orders fell 1.8% to 17.7 million from 18.0 million.
UK's FTSE 100 Index Trades Higher, European Markets Closed for May Day Holiday
Bridgette Randall
01 May, 2024
Frankfurt
The benchmark index in London edged slightly higher as financial markets in Continental Europe were closed for the May Day holiday.
The FTSE 100 index opened higher and bond yields held firm in thin trading as most traders were away in Zurich, Paris, Milan, and Frankfurt.
In April, benchmark indexes in London rose about 2.5%, but the DAX CAC-40 indexes dropped about 2% as investors adjusted rate-cut expectations and reacted to local corporate earnings.
In the absence of local and regional economic news, investors awaited the release of the U.S. Fed's monetary policy announcements later in the day after the close.
Fed policymakers are widely expected to hold the interest rate range between 5.25% and 5.50%, and investors are awaiting the Fed's direction on the level of interest rates.
Investors had bid up stocks in the first quarter in the hopes that policymakers were ready to begin rate cuts as early as June, followed by as many as three additional cuts later in the year.
However, those expectations have been lowered after several economic reports suggested that the U.S. economy and labor market conditions are more resilient than previously expected.
Moreover, several inflation indicators have stayed above the expectations set by economists, with service inflation staying above 3%, indicating that policymakers may await cooler inflation before lowering rates.
The lowered rate cut expectations had a direct and negative effect on investor sentiment, driving the U.S. benchmark indexes lower by 4% in April.
Europe Indexes and Yields
Financial markets in Frankfurt and Paris were close for the May Day holiday, and the FTSE 100 index in London inched higher by 0.1% to 8,150.17.
The yield on 10-year German bonds edged up to 2.58%; French bonds inched higher to 3.07%; the UK gilts edged higher to 4.38%; and Italian bonds inched lower to 3.87%.
The euro edged higher to $1.066; the British pound inched higher to $1.249; and the U.S. dollar edged higher to 92.06 Swiss cents.
Brent crude decreased $1.50 to $84.82 a barrel, and the Dutch TTF natural gas fell by €0.69 to €28.70 per MWh.
Europe Stock Movers
Aston Martin Lagonda Global declined 4.6% to 141.43 pence after the luxury automaker reported a wider-than-expected loss in the first quarter.
Revenue in the first quarter declined by 26% to £945 million from £1.3 billion; pre-tax losses expanded to £138.8 million from £74.2 million; and net debt increased by 20% to £1.04 billion from £868.1 million a year ago.
The company said vehicle sales declined in the quarter after it introduced new products, ended production of several core products, and ramped up production of the new Vantage, upgraded DBX 707, and V12 sports car.
Vehicle sales in the first quarter dropped 26% to 945 from 1,269 units in the corresponding period a year ago.
Next plc increased 0.1% to 9,020.49 pence after the apparel retailer reiterated its full-year outlook.
Revenue in the first quarter increased 5.7% from a year ago, driven by an 8.8% rise in online sales and flat in-store sales.
The retailer projected a full-year 2024 consolidated sales increase of 6% to £6.2 billion, a pre-tax profit rise of 4.6% to £960 million, and an after-tax earnings per share gain of 4.8% to 606.3 pence.
GSK plc increased 2.2% to 1,706.75 pence after the pharmaceutical company reported a better-than-expected 27% increase in its core operating profit in the first quarter.
Revenue in the first quarter increased 10% to 7.4 billion, core operating profit soared 27% to 2.4 billion, and earnings per share declined 19% to 25.7 pence.
The company announced a 15-pence per share cash dividend.
The pharmaceutical company's full-year sales are likely towards the upper end of its previously announced sales growth range of between 5% and 7%, with core operating profit rising between 9% and 11% and core earnings per share rising between 8% and 10%.
Domino's Pizza Group PLC decreased 0.7% to 323.40 pence after the company reported weaker-than-expected quarterly results.
Comparable sales in the first quarter declined by 0.5%, and total orders fell by 0.8% from the previous year, but on a two-year basis, comparable sales rose by 8.4%.
Total system sales in the first quarter declined 0.4% to £385.1 million from £386.6 million, and total orders on a comparable basis fell 0.8% to 17.7 million from 17.8 million a year ago.
Total orders fell 1.8% to 17.7 million from 18.0 million.
Japan's Manufacturing Contraction Extends to Eleventh Month; Lasertec Reports Strong Results
Akira Ito
01 May, 2024
Tokyo
Stocks in Tokyo traded lower in thin trading and erased some of the gains in the previous two sessions as investors remained cautious amid the flood of earnings.
Market indexes fell in a broad selloff that saw technology and financial stocks leading the decliners following sharp declines in overnight trading in New York.
Market indexes fell nearly 1% on Wall Street after a measure of wages and benefits rose at the fastest pace in one year at 1.2%, supporting the case for the Federal Reserve to wait longer before lowering interest rates.
The expectations of fewer and delayed U.S. rate cuts soured market sentiment in New York, overhanging Tokyo trading.
Japan's manufacturing sector continued to contract for the eleventh month in a row, but at a slower pace in April, S&P Global reported in its final update.
The au Jibun Japan Manufacturing PMI eased to 49.6 in April from 49.9 in the preliminary estimate and a final 48.2 in March.
Manufacturing activities contracted at a slower pace in April as output and new orders shrank at a slower pace in the month.
However, business sentiment was unchanged from March, driven in part by improving demand, the report noted.
The Nikkei 225 Stock Average declined 0.2% to 38,356.20, and the Topix index dropped 0.3% to 2,733.96.
Tokyo Electron, Advantest, Screen Holdings, and SoftBank fell between 1.5% and 3.5%.
Toyota Motor, Honda Motor, and Nissan Motor declined between 0.4% and 1.1%.
Financial stocks were among the leading decliners, and Mitsubishi UFJ, Mizuho Financial, and Sumitomo Mitsui Financial Group decreased between 0.2% and 1.4%.
Rising travel demand lifted the revenue of three Japanese railway companies, driven by the ending of the travel restrictions imposed during COVID-19 and the return of international tourists.
East Japan Railway consolidated revenue in the year ending in March rose 13.5% to 2,730 billion yen, and West Japan Railway revenue rose 17.2% to 1,635 billion yen.
Central Japan Railway revenue surged 22.1% to 1,710 billion yen.
West Japan Railway increased 8% to ¥3,233.0; East Japan Railway added 3.3% to ¥2,987.50; and Central Japan Railway declined 0.1% to ¥3,614.0.
Lasertec Reports Strong Quarterly Results and Announces Executive Changes
Lasertec Corporation soared 15.8% to ¥40,080.0 after the company reported higher-than-expected sales and earnings in the nine-month period ending in March.
Consolidated nine-month revenue increased 97.9% to 157.2 billion yen from 79.4 billion yen, ordinary income soared 109.8% to 58.7 billion yen, and diluted earnings per share rose to 460.02 yen compared to 229.53 a year ago.
The company estimated sales in the fiscal year ending in June 2024 to increase by 27.6% to 195 billion yen, ordinary income to increase by 5.2% to 67 billion yen, and diluted earnings per share to be 543.32 yen.
The company reiterated its plans to pay a total cash dividend of 191 yen, higher than 180 yen a year ago.
The company also promoted its chief sales officer, Tetsuya Sendoda, as the new chief executive officer and the current CEO, Osamu Okabayashi, as the new chairman.