Market Update
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.
India Movers: Adani Group, BHEL, Eicher Motors, Hindalco, Wipro
Arun Goswami
14 Feb, 2024
Mumbai
Stocks in Mumbai traded down following the worldwide selloff after U.S. inflation in January was higher-than-expected, raising the prospect of interest rates staying higher for longer.
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.
Hindalco Industries declined 0.4% to ₹507.90 after the company reported mixed quarterly results.
Revenue in the December quarter was flat at ₹52,808 crore, and after-tax income soared 71% to ₹2,331 crore from a year ago, respectively.
Eicher Motors added 0.2% to ₹3,862.70 after the company reported a rise in revenue and earnings.
Revenue in the December quarter rose 12.3% to ₹4,179 crore, and net income surged 34.4% to ₹996 crore from a year ago, respectively.
Oil India increased 1% to ₹474.85 after the company reported a decline in profit following weaker crude oil prices and windfall taxes.
Net income in the December quarter decreased 9.3% from a year ago to 1,584 crore.
BHEL declined 0.5% to ₹212.30 after the electrical equipment company suffered a loss in the latest quarter.
Revenue in the December quarter rose to ₹5,599.6 crore from ₹5,353.9 crore, and the company swung to a net loss of ₹148.7 crore due to higher operating expenses.
Wipro fell 1.9% to ₹501.70 and the company agreed to acquire the insurance-industry focused Aggne for $66 million.
Aggne is based in the Tampa, Florida and Hyderabad, India and employs 230 people.
Consumer Price Inflation In January Eased to 3.1%, Shelter Inflation Stayed Elevated
Brian Turner
13 Feb, 2024
New York City
Consumer price inflation in January eased to a 3.1% annual pace in January from 3.4% in December, the U.S. Bureau of Labor Statistics reported Tuesday.
The decline in overall inflation was driven by the fall in energy price inflation by 4.6% from 2.0% in December, and food prices rose at a slower pace of 2.6% compared to 2.7% in the previous month.
Compared to the previous month, consumer price inflation rose by 0.3%, the fastest pace of increase in four months.
Core inflation, which excludes food and energy price inflation, held steady at an annual pace of 3.9% but rose to a monthly rate of 0.4%.
U.S. and Europe Indexes Drop 1%, Asian Markets Face Weak Start
Barry Adams
13 Feb, 2024
New York City
Benchmark indexes on Wall Street turned lower after a hotter-than-expected inflation report raised the prospect of higher interest rates for longer, a key assumption underpinning the rally of the last three months.
The S&P 500 index and the Nasdaq Composite declined more than 1% after consumer prices rose at a faster-than-expected pace in January.
The yield on 2-year and 10-year Treasury notes advanced after inflation, and core inflation in January was ahead of market expectations.
Consumer price inflation in January eased to a 3.1% annual pace in January from 3.4% in December, the U.S. Bureau of Labor Statistics reported Thursday.
The decline in overall inflation was driven by the fall in energy price inflation by 4.6% from 2.0% in December, and food prices rose at a slower pace of 2.6% compared to 2.7% in the previous month.
But it was the stubborn shelter price inflation that kept the overall inflation still above 3%.
The rent and equivalent cost of occupying a residence increased by 0.6% from the previous month in January, accounting for more than two-thirds of the monthly increase for all items, according to the government agency.
Rents have stopped rising in most urban locations across the country, but that disinflation is still not reflected in the inflation data.
Compared to the previous month, consumer price inflation rose by 0.3%, the fastest pace of increase in four months.
Core inflation, which excludes food and energy price inflation, held steady at an annual pace of 3.9% but rose to a monthly rate of 0.4%.
U.S. indexes and yields
The S&P 500 index decreased 1.2% to 4,962.61, and the Nasdaq Composite fell 1.4% to 15,713.31.
The yield on 2-year Treasury notes advanced to 4.62%, 10-year Treasury notes increased to 4.28%, and 30-year Treasury bonds edged up to 4.44%.
WTI crude oil increased $1.21 to $78.13 a barrel, and natural gas prices declined 9 cents to $1.66 a thermal unit, a low last seen in September 2020.
Gold increased by $8.85 to $2,025.52 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 103.97.
U.S. Stock Movers
The Coca-Cola Company gained 1.1% to $60.40 after the beverage maker reported mixed quarterly results in the fourth quarter.
Revenue in the quarter rose to $10.85 billion after the company passed on higher prices to customers and bottlers.
JetBlue Airways soared 13.2% to $6.82 after activist investor Carl Icahn reported a 10% stake in the company and added that the company's stock is undervalued.
Zoominfo Technologies increased 16% to $18.40 after the market intelligence company reported better-than-expected quarterly results.
Hasbro declined 5.8% to $48.30 after the toymaker reported sharply lower-than-expected earnings in the fourth quarter.
Restaurant Brands International was nearly unchanged at $78.30 after the parent company of Tim Hortons reported better-than-expected quarterly results.
European Markets Closed Down After U.S. Inflation Report
European markets traded sideways as traders digested the latest economic data in the region and avoided taking positions after the release of the U.S. inflation.
Benchmark indexes in Frankfurt, Paris, and London edged slightly lower after lackluster trading in the previous session.
Investors reacted to corporate results from TUI, the hydrogen company ThyssenKrupp Nucera, and Siltronic.
Closer to home, the French jobless rate held steady in the fourth quarter of 2023, and Swiss inflation eased in January.
The jobless rate in the UK in the fourth quarter of 2023 decreased to 3.8% from 3.9% in the third quarter, according to the data released by the Office for National Statistics.
A separate report by the agency showed UK regular wages rose 6.2% in the final quarter, the lowest increase in fourteen months.
The higher-than-expected increase in regular wages also supported the advance in the pound, easing the pressure on the Bank of England to lower rates.
French Jobless Rate Held Steady In Final Quarter of 2023
The French jobless rate held steady at 7.5% in the fourth quarter after rising in the previous two quarters in a row, the statistical office INSEE reported Tuesday.
The jobless rate in the fourth quarter matched the rate in the third quarter but rose 0.4 percentage points in the final quarter of 2022, when the rate was the lowest since 1982 and significantly lower than the peak of 10.5% in mid-2015.
The number of unemployed persons increased by 29,000 to 2.3 million, and the jobless rate
Over the quarter, the youth unemployment rate decreased by 0.2 points for 15–24 year olds to 17.5%, increasing by 0.6 percentage points from the previous year.
The unemployment rate for those between the ages of 25 and 49 increased by 0.2 points over the quarter, to 7.0%, and is 0.5 points above its level a year earlier.
Finally, the jobless rate for those aged 50 or over was almost stable over the quarter at 5.0%.
The activity rate for those between 15 and 64 old increased by 0.4 percentage points from a year ago to 74.1%, the highest level since record-keeping began in 1975.
Swiss Inflation Eased In January
The Swiss inflation rate dropped to the lowest level in January since October 2021, after inflation for housing and utilities eased, the Swiss Federal Statistics Office reported Tuesday.
Consumer price inflation eased to 1.3% in January from 1.7% in December, after housing and utility inflation decreased to 2.5% from 3.3% in the previous month.
Food and non-alcoholic beverage inflation slowed to 2.3% from 3.3%, and restaurant and hotel price inflation slowed to 2.3% from 2.8%.
The core rate of inflation, which excludes volatile food and energy prices, rose 1.2%.
On a monthly basis, prices rose 0.2% in January from December, reflecting higher electricity and hotel prices.
Europe Indexes and Yields
The DAX index decreased 0.9% to 16,880.83, the CAC-40 index fell 0.8% to 7,625.31, and the FTSE 100 index inched lower by 0.8% to 7,512.28.
The yield on 10-year German bonds edged down to 2.35%; 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 $1.076, the British pound inched higher to $1.264, and the U.S. dollar gained to 88.15 Swiss cents.
Brent crude increased $0.81 to $82.81 a barrel, and the Dutch TTF natural gas declined by €0.29 to €25.44 per MWh.
Europe Stock Movers
TUI AG increased 2.7% to €7.03 after the tour operator reported a narrower loss in the fiscal first quarter and the company reiterated its annual outlook.
Higher demand for tour packages and improved prices and rates also helped the company cut its losses.
Thyssenkrupp Nucera increased 5.9% to €15.82 after the hydrogen company said its fiscal first quarter revenue increased by more than a third because of the rising demand for its electrolyser technology.
Randstad NV added 1.3% to €53.96 after the Dutch staffing company said it plans to return €632 million to shareholders and meet its capital allocation plan.
Nikkei 225 Index Nears 34-year High
Market indexes in Tokyo jumped after investors returned from a three-day weekend, and the rise in tech stocks led the gainers.
The Nikkei 225 index soared 2.9% to 37,963.97 and traded at a fresh 34-year high, and the yen weakened to 149.10 against the U.S. dollar.
Lasertec, Advantest, Screen Holdings, and Tokyo Electron gained between 1.5% and 2.5%, respectively.
SoftBank Group soared 6.1% to ¥8,479.0 following the surge in Arm Holdings in New York trading on Friday and Monday.
Market indexes in Seoul advanced 1%, but in Sydney, they struggled to stay above the flatline.
Elsewhere in the region, financial markets were closed in mainland China, Taiwan, Hong Kong, Malaysia, and Singapore to celebrate the Lunar New Year.
MSCI Increased India Weight In Global Index
NMDC, Union Bank, Punjab National Bank, BHEL, and GMR Airports traded higher after MSCI added the companies to its MSCI India Standard index.
The index provider increased its India weight to 18.2%, a record high, only to be surpassed by the weight of China-based companies in its global index.
The independent research service provider removed 66 Chinese companies from its MSCI Global Standard Index and added five Indian and Chinese companies, but did not remove any Indian companies.
The revised weights will be reflected in the indexes after the close on February 29.
India Inflation Slowed In January
Consumer price inflation eased to 5.1% in January from 5.69% in December, after food price inflation softened to 8.3% from 9.53% in the previous month, according to the Ministry of Statistics and Programme Implementation.
India's Industrial Output Accelerated
Industrial output expanded 3.8% in December, faster than the 2.4% increase in November, a separate report from the agency showed.
Mining production expanded 5.1%, followed by a 3.9% rise in manufacturing production and a 1.2% increase in electricity output.
During the first nine months of the fiscal year 2024, industrial output rebounded 6.1% from a year ago due to sustained expansion in all three categories.
India Stocks Rebounded at Close
In Mumbai, market sentiment was positive in Tuesday's trading, and investors reviewed the latest updates on inflation and industrial output.
The Sensex and the Nifty indexes advanced after consumer price inflation slowed in January and industrial production rebounded in December.
The Sensex index increased 0.7% to 71,555.19, and the Nifty index rose 0.6% to 21,743.25.
Coal India advanced 2.2% to ₹442.20 after the mining company reported its quarterly results.
Revenue from operations increased 2.8% to ₹36,153.97 crore from ₹35,169.33 crore, and net profit rose 17.8% to ₹9,093.69 crore from ₹7,719.11 crore a year ago, respectively.
Coal production in the quarter increased to 199 million tons from 180 million tons a year ago.
The company also declared its second interim dividend of ₹5.25 per share to be payable on February 20.
US Movers: Coca-Cola, Hasbro, JetBlue, Restaurant Brands, Zoominfo
Scott Peters
13 Feb, 2024
New York City
The Coca-Cola Company gained 1.1% to $60.40 after the beverage maker reported mixed quarterly results in the fourth quarter.
Revenue in the quarter rose 7% to $10.85 billion from $10.1 billion after the company passed on higher prices to customers and bottlers; net income declined 3% to $1.98 billion from $2.03 billion; and diluted earnings per share fell to 46 cents from 47 cents a year ago.
Unit case volume increased by 2% in the quarter, and organic revenue rose by 12%, largely driven by double-digit price increases in Europe and the Middle East, Latin America, and Asia Pacific.
JetBlue Airways soared 13.2% to $6.82 after activist investor Carl Icahn reported a 10% stake in the company and added that the company's stock is undervalued.
Zoominfo Technologies increased 16% to $18.40 after the market intelligence company reported better-than-expected quarterly results.
Revenue in the December quarter increased to $316.4 million from $301.7 million, net income swung to a loss of $5.5 million from a profit of $23.2 million, and diluted earnings per share were a loss of 1 cent compared to a profit of 8 cents a year ago.
During the year 2023, the company repurchased 22.6 million shares at an average price of $17.68 for an aggregate of $400.1 million.
The company guided fiscal first quarter 2024 revenue between $307 million and $310 million and full-year revenue between $1.26 billion and $1.28 billion.
Hasbro declined 5.8% to $48.30 after the toymaker reported sharply lower-than-expected earnings in the fourth quarter.
Revenue in the fourth quarter declined 23% to $1.29 billion from $1.7 billion, net loss soared to $1.06 billion from $128 million, and diluted loss per share expanded to $7.64 from 93 cents a year ago.
Revenue in the fourth quarter declined 23% after the growth in the Wizards of the Coast and Digital Gaming segments of 7%, which was more than offset by declines of 25% in the consumer products segment and a 49% plunge in the entertainment segment.
Operating loss of $1,912 million compared to an operating profit of $23 million in 2022. 2023 loss includes $1,846 million (non-cash) of goodwill and intangible asset impairment associated with the eOne Film and TV business and within Family Brands to align with a change in entertainment strategy.
Restaurant Brands International was nearly unchanged at $78.30 after the parent company of Tim Hortons reported better-than-expected quarterly results.
Revenue in the fourth quarter increased to $1.8 billion from $1.69 billion, net income advanced to $508 million from $229 million, and diluted earnings per share rose to $1.60 from 74 cents a year ago.
Systemwide sales across all restaurant brands rose 9.6%, slower than 11.4% in the quarter a year ago.
Consolidated comparable store sales increased 5.8%, including a 4.6% rise at international locations.
Comparable sales at Tim Hortons coffee chain rose 8.4%, Burger King increased 6.3%, Popeyes Louisiana Kitchen advanced 5.5%, and Firehouse Subs increased 3.5%.
Slower Decline In Inflation Sparked a Sharp Selloff On Wall Street
Barry Adams
13 Feb, 2024
New York City
Benchmark indexes on Wall Street turned lower after a hotter-than-expected inflation report.
The S&P 500 index and the Nasdaq Composite declined 0.5% after consumer prices rose at a faster-than-expected pace in January.
The yield on 2-year and 10-year Treasury notes advanced after inflation, and core inflation in January was ahead of market expectations.
Consumer price inflation in January eased to a 3.1% annual pace in January from 3.4% in December, the U.S. Bureau of Labor Statistics reported Thursday.
The decline in overall inflation was driven by the fall in energy price inflation by 4.6% from 2.0% in December, and food prices rose at a slower pace of 2.6% compared to 2.7% in the previous month.
Compared to the previous month, consumer price inflation rose by 0.3%, the fastest pace of increase in four months.
Core inflation, which excludes food and energy price inflation, held steady at an annual pace of 3.9% but rose to a monthly rate of 0.4%.
U.S. indexes and yields
The S&P 500 index decreased 1.5% to 4,969.35, and the Nasdaq Composite fell 1.8% to 15,632.51.
The yield on 2-year Treasury notes advanced to 4.60%, 10-year Treasury notes increased to 4.28%, and 30-year Treasury bonds edged up to 4.43%.
WTI crude oil increased $0.63 to $77.52 a barrel, and natural gas prices declined 2 cents to $1.76 a thermal unit, a low last seen in September 2020.
Gold increased by $8.85 to $2,025.52 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 103.97.
U.S. Stock Movers
The Coca-Cola Company gained 1.1% to $60.40 after the beverage maker reported mixed quarterly results in the fourth quarter.
Revenue in the quarter rose to $10.85 billion after the company passed on higher prices to customers and bottlers.
JetBlue Airways soared 13.2% to $6.82 after activist investor Carl Icahn reported a 10% stake in the company and added that the company's stock is undervalued.
Zoominfo Technologies increased 16% to $18.40 after the market intelligence company reported better-than-expected quarterly results.
Hasbro declined 5.8% to $48.30 after the toymaker reported sharply lower-than-expected earnings in the fourth quarter.
Restaurant Brands International was nearly unchanged at $78.30 after the parent company of Tim Hortons reported better-than-expected quarterly results.
Europe Movers: Randstad, Siltronic, TUI, Thyssenkrupp Nucera
Inga Muller
13 Feb, 2024
Frankfurt
Market indexes in Europe held steady, and investors reviewed the inflation update in Switzerland and jobless data from the UK and France.
The DAX index decreased 0.6% to 16,928.84, the CAC-40 index fell 0.3% to 7,664.90, and the FTSE 100 index inched lower by 0.1% to 7,564.79.
The yield on 10-year German bonds edged down to 2.35%; French bonds inched higher to 2.85%; the UK gilts edged higher to 4.07%; and Italian bonds inched higher to 3.90%.
TUI AG increased 2.7% to €7.03 after the tour operator reported a narrower loss in the fiscal first quarter and the company reiterated its annual outlook.
Higher demand for tour packages and improved prices and rates also helped the company cut its losses.
Revenue in the fiscal first quarter ending in December increased by 14.7% to €4.3 billion from €3.7 billion. group's loss shrank to €83.5 million from 231.8 million, and loss per share decreased to 24 cents from 89 cents a year ago.
During the quarter, the customer count increased by 6% to 3.5 million, and the average load factor increased by 1 percentage point to 86%.
The company estimated fiscal year 2024 sales to increase by 10% and underlying operating earnings to increase at least by 25%.
At the end of the quarter, net debt declined by 24% to €3.98 billion from €5.25 billion a year ago.
Thyssenkrupp Nucera increased 5.9% to €15.82 after the hydrogen company said its fiscal first quarter revenue increased by more than a third because of the rising demand for its electrolyser technology.
Randstad NV added 1.3% to €53.96 after the Dutch staffing company said it plans to return €632 million to shareholders, comprising of €2.28 in regular dividend and €1.27 in special dividend.
Organic revenue in the fourth quarter of 2023 declined 8.6%, with underlying operating earnings of €265 million, and cash flow increased 19% to €883 million.
Siltronic AG declined 7.9% to €84.95 after the German silicon wafer maker reported a weak sales outlook and lowered its dividend payout.
The German semiconductor company estimated sales in the current year to match €1.51 billion in 2023, a decline of 16% from €1.8 billion in 2022.
The company blamed the sales growth weakness on the high level of customer inventories and estimated first-half sales to match sales in the second-half of 2023.
Moreover, the company also lowered its 2023 dividend payout to €1.20 from €3.0 in the previous year.
The company also announced its plan to cut its capital expenditures by more than half.
French and UK Jobless Rates Diverge In Q4, Swiss Inflation Eased In January
Bridgette Randall
13 Feb, 2024
Frankfurt
European markets traded sideways as traders digested the latest economic data in the region and avoided taking positions ahead of the release of the U.S. inflation report later in the day.
Benchmark indexes in Frankfurt, Paris, and London edged slightly lower after lackluster trading in the previous session.
Investors are looking forward to the release of the U.S. consumer price inflation to slip below the 3% annual rate in January, easing pressure on the Federal Reserve to keep higher rates for longer.
Investors reacted to corporate results from TUI, the hydrogen company ThyssenKrupp Nucera, and Siltronic.
Closer to home, the French jobless rate held steady in the fourth quarter of 2023, and Swiss inflation eased in January.
The jobless rate in the UK in the fourth quarter of 2023 decreased to 3.8% from 3.9% in the third quarter, according to the data released by the Office for National Statistics.
A separate report by the agency showed UK regular wages rose 6.2% in the final quarter, the lowest increase in fourteen months.
The higher-than-expected increase in regular wages also supported the advance in the pound, easing the pressure on the Bank of England to lower rates.
French Jobless Rate Held Steady In Final Quarter of 2023
The French jobless rate held steady at 7.5% in the fourth quarter after rising in the previous two quarters in a row, the statistical office INSEE reported Tuesday.
The jobless rate in the fourth quarter matched the rate in the third quarter but rose 0.4 percentage points in the final quarter of 2022, when the rate was the lowest since 1982 and significantly lower than the peak of 10.5% in mid-2015.
The number of unemployed persons increased by 29,000 to 2.3 million, and the jobless rate
Over the quarter, the youth unemployment rate decreased by 0.2 points for 15–24 year olds to 17.5%, increasing by 0.6 percentage points from the previous year.
The unemployment rate for those between the ages of 25 and 49 increased by 0.2 points over the quarter, to 7.0%, and is 0.5 points above its level a year earlier.
Finally, the jobless rate for those aged 50 or over was almost stable over the quarter at 5.0%.
The activity rate for those between 15 and 64 old increased by 0.4 percentage points from a year ago to 74.1%, the highest level since record-keeping began in 1975.
Swiss Inflation Eased In January
The Swiss inflation rate dropped to the lowest level in January since October 2021, after inflation for housing and utilities eased, the Swiss Federal Statistics Office reported Tuesday.
Consumer price inflation eased to 1.3% in January from 1.7% in December, after housing and utility inflation decreased to 2.5% from 3.3% in the previous month.
Food and non-alcoholic beverage inflation slowed to 2.3% from 3.3%, and restaurant and hotel price inflation slowed to 2.3% from 2.8%.
The core rate of inflation, which excludes volatile food and energy prices, rose 1.2%.
On a monthly basis, prices rose 0.2% in January from December, reflecting higher electricity and hotel prices.
Europe Indexes and Yields
The DAX index decreased 0.6% to 16,928.84, the CAC-40 index fell 0.3% to 7,664.90, and the FTSE 100 index inched lower by 0.1% to 7,564.79.
The yield on 10-year German bonds edged down to 2.35%; 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 $1.076, the British pound inched higher to $1.264, and the U.S. dollar gained to 88.15 Swiss cents.
Brent crude increased $0.64 to $82.66 a barrel, and the Dutch TTF natural gas advanced by €0.30 to €26.03 per MWh.
Europe Stock Movers
TUI AG increased 2.7% to €7.03 after the tour operator reported a narrower loss in the fiscal first quarter and the company reiterated its annual outlook.
Higher demand for tour packages and improved prices and rates also helped the company cut its losses.
Thyssenkrupp Nucera increased 5.9% to €15.82 after the hydrogen company said its fiscal first quarter revenue increased by more than a third because of the rising demand for its electrolyser technology.
Randstad NV added 1.3% to €53.96 after the Dutch staffing company said it plans to return €632 million to shareholders and meet its capital allocation plan.