Market Update
South Korea Exports Surged, China Private Manufacturing Survey Shows Expansion
Arjun Pandit
01 Feb, 2024
Mumbai
Asian markets traded in a tight range, and tech stocks were under pressure in Japan following the steep decline in overnight trading in New York.
The U.S. Federal Reserve held its key lending rate range for the fourth time between 5.25% and 5.50% and clarified that interest rates are not likely to be trimmed in the immediate future, dashing hopes of a rate cut at the end of the next policy meeting in March.
The S&P 500 index closed down 1.6%, and the Nasdaq Composite dropped 2.2%.
The Nikkei 225 decreased 0.8% to 36,011.46, and technology stocks led the decline.
Tokyo Electric Power, Sony Group, Kawasaki Kisen, Fast Retailing, and Toyota Motor declined between 1.5% and 2.0%.
Nomura Holdings rose more than 5% after the financial services provider reported better-than-expected quarterly results.
ANA Holdings and East Japan Railways also gained more than 1% after reporting financial results.
Elsewhere in the region, the ASX 200 index decreased 1.2% to 36,011.46 after trading at a new record high in the previous session.
Banks, miners, and real estate stocks were among the leading decliners in Sydney trading.
In Seoul, the KOSPI index soared 1.7% to 2,540.35, and South Korea swung to a trade surplus in January.
Broad Recovery Lifts South Korea Exports
The Ministry of Trade, Industry, and Energy (MOTIE) announced the monthly update on Thursday.
South Korea’s exports increased 18.0% from the previous year to $54.7 billion. Imports decreased 7.8% to $54.4 billion, and the trade balance stood at a surplus of $0.3 billion.
The trade balance was in surplus for January, extending the surplus for the eighth consecutive month since June 2023.
Generally, international trade in January recorded a deficit, but this year’s trade balance improved by $13 billion from the previous year, boosted by strong exports.
By destination, eight of the nine major markets saw growth in January.
Specifically, shipments to China and the U.S. surpassed the $10 billion thresholds for the sixth and fifth consecutive month, respectively.
China Indexes Rebound After Private Survey Show Manufacturing Expanded
Market indexes in China rebounded from five-year lows after a private survey showed the manufacturing sector expanded for the third month in a row in January.
China's manufacturing sector continued to grow at a stable rate, and the Caixin PMI Manufacturing Index was unchanged at 50.8 in January, contrasting the official survey released Wednesday.
Caixin surveys about 650 private and government companies primarily located in China's coastal region with a strong focus on export activities.
The official survey from the NBS, which gathers data from a wider sample of 3,200 companies, showed factory activities contracted in January after the Manufacturing PMI index edged slightly higher from the previous month to 49.2.
The CSI 300 index rose 0.6% to 3,235.11, and the Hang Seng index jumped 1% to 15,648.02.
Alibaba Group, NetEase, JD.com, Meituan, Baidu, and Tencent rebounded between 2% and 3%.
Hong Kong left its interest rate unrevised at 5.75% following the Fed's decision to hold rates steady.
Property developers Sun Hung Kai declined 1%, New World Development rose 3.5%, and Henderson Land Development added 1.5%.
Record Highs In India Indexes
Market indexes in Mumbai rebounded from early doldrums as investors awaited the release of the interim budget.
The index tracking growth of eight key infrastructure sectors slowed to a 14-month low of 3.8% in December 2023, the Office of the Economic Advisor reported Wednesday.
The eight core industries collectively weigh 40.27% in the index of industrial production.
The new government spending has been on hold, and private sector capital spending has been lackluster ahead of the Lok Sabha election scheduled between April and May.
The Nifty and the Sensex indexes struggled in early trading amid weak Asian markets and a sharp decline in New York overnight trading.
The Sensex index increased 280.49 points to 72,033.15, and the Nifty index rose 71.05 points to 21,805.30.
On the Mumbai stock exchange, 265 stocks traded at their 52-week highs, and 11 stocks sank to their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.14%, and the Indian rupee held steady at ₹83.03 against the U.S. dollar.
Bajaj Auto rose 0.9% to ₹7,733.60 after the 2- and 3-wheel vehicle maker reported January sales.
Vehicle sales in January jumped 24% from a year ago to 356,010 from 287,935 a year ago.
Domestic vehicle sales surged 31% to 230,043 and exports increased 12% to 126,967 from a year ago, respectively.
India Movers: Bajaj Auto, Deepak Nitrite, Dixon Tech, Godrej Consumer, HG Infra, Jindal Steel, Paytm
Arun Goswami
01 Feb, 2024
Mumbai
Stocks in Mumbai lacked direction, and key infrastructure sector growth dropped to a 14-month low in December.
The Sensex index decreased 57.96 points to 71,694.15, and the Nifty index fell 0.60 points to 21,725.10.
On the Mumbai stock exchange, 265 stocks traded at their 52-week highs, and 11 stocks sank to their 52-week lows.
One 97 Communications dropped 20% to ₹609.0 after the Reserve Bank of India barred the bank from taking new deposits and offering new loans.
The central bank banned Paytm Payments Bank, an arm of the company, for a lack of compliance and weak regulatory supervision.
Godrej Consumer Products jumped 8.3% to ₹1,267.80 after the company reported quarterly results.
Consolidated revenue in the December quarter rose 1.7% to ₹3,660 crore, and net income advanced 6.4% to ₹581 crore.
Jindal Steel and Power added 0.5% to ₹761.30 after the company reported mixed quarterly results.
Consolidated revenue in the December quarter declined 6% to ₹11,701 crore, and net profit soared nearly three-fold to ₹1,928 crore.
HG Infra Engineering rose 1.5% to ₹946.90 after the company won a project by the South Central Railway.
Dixon Technologies gained 1.4% to ₹6,071.95 after the company reported a sharp jump in revenue and earnings in its latest quarter.
Revenue in the December quarter doubled to ₹4.818 crore, and net income jumped 87% to ₹97 crore from a year ago, respectively.
Deepak Nitrite increased 1% to ₹2,330.50, and the company's subsidiary signed an agreement with Gujarat to set up new chemical manufacturing plants in Dahej.
Deepak Chem Tech, a subsidiary of the company, plans to invest up to ₹9.000 crore and set up plants by 2027 to manufacture polycarbonate resins and compounds, aniline, methyl methacrylate, and polymethacrylate.
Bajaj Auto rose 0.9% to ₹7,733.60 after the 2- and 3-wheel vehicle maker reported January sales.
Vehicle sales in January jumped 24% from a year ago to 356,010 from 287,935 a year ago.
Domestic vehicle sales surged 31% to 230,043 and exports increased 12% to 126,967 from a year ago, respectively.
Tech and Broader Market Indexes Resumed Downward Slide After Fed Holds Rates Steady
Barry Adams
31 Jan, 2024
New York City
Weakness in tech stocks dragged market indexes lower on Wall Street, after leading tech companies reported quarterly results.
The S&P500 index and the Nasdaq Composite dropped more than 0.7% after investors decided to sell stocks of Alphabet, Microsoft, AMD, and Starbucks following their quarterly results.
The Federal Reserve held rates steady for the fourth time in a row at a 23-year high between 5.25% and 5.50% and reiterated its data-dependent hawkish stance.
In an unanimous decision, all twelve members of the monetary policy committee voted to hold rates steady.
The Federal Reserve pushed back against those looking for immediate rate cuts but left a door open for future rate cuts, briefly sending market indexes lower.
"The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent," highlighted the accompanying statement released by the Fed.
Treasury yields inched lower after the rate announcement, as the Federal Reserve stressed that it is not ready to lower interest rates until more solid evidence emerges that indicates inflation is on a sustained path towards its target rate of 2%.
U.S. Private Sector Job Growth Slows
U.S. private employers expanded payrolls by 107,000 in January 2024, lower than the downwardly revised 158,000 in December, ADP reported in its monthly survey released Wednesday.
The services sector added 77,000 jobs, while goods producers added 30,000.
The leisure and hospitality sector led the expansion with an increase of 28,000, followed by trade, transportation, and utilities with 23,000 additions, construction with 22,000, education and health services with 17,000, and financial activities with 7,000.
Manufacturing added only 6,000 jobs, and the information sector lost 9,000.
Meanwhile, wage growth continued to moderate, with employees receiving a 5.2% pay increase, lower than 5.4% in December, while those changing jobs got a 7.2% rise, the smallest annual increase since May 2021.
U.S. Indexes and Yields
The S&P 500 index decreased 0.7% to 4,8891.11, and the Nasdaq Composite declined 1.2% to 15,323.46.
The yield on 2-year Treasury notes decreased to 4.28%. 10-year Treasury notes declined to 3.98%, and 30-year Treasury bonds edged down to 4.23%.
WTI crude oil decreased $1.87 to $75.94 a barrel, and natural gas prices increased 4 cents to $2.11 a thermal unit.
Gold increased by $12.55 to $2,048.67 an ounce and extended the previous week's gains after the U.S. dollar drifted slightly lower in international trading.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.42.
U.S. Stock Movers
AMD dropped 6% to $161.65 after the maker of advanced semiconductors offered a weak revenue growth outlook, disappointing some investors.
Microsoft Corp. decreased 0.9% to $404.75 despite the software company reporting higher-than-expected quarterly earnings.
Revenue in the fiscal second quarter ending in December increased 18% to $62.02 billion, net income surged 33% to $21.9 billion from $17.4 billion, and diluted earnings per share advanced to $2.93 from $2.32 a year ago.
Starbucks increased 3.5% to $97.45 after the company reported quarterly results.
North America and U.S. comparable store sales increased 5%, driven by a 4% increase in average ticket sales and a 1% increase in comparable transactions.
The company lowered its full-year revenue outlook because of the competitive environment in its second-largest market, China, and rising tensions between the U.S. and China.
Because of sales weakness in China, the company lowered its fiscal year sales growth to between 7% and 10%, down from the previous estimate of between 10% and 12%.
The company reiterated its full-year earnings per share growth of between 15% and 20%.
Alphabet decreased 5.5% to $144.67 after the parent company of search engine Google reported weaker-than-expected advertising revenue in its latest quarter.
Google search revenue increased to $48 billion from $42.6 billion, and YouTube ads jumped to $9.2 billion from $7.9 billion a year ago but missed market expectations.
Walmart increased 1.1% to $167.45 after the retailer announced a 3-for-1 stock split effective on February 23.
Tesla declined 2.5% to $186.80 after a Delaware judge agreed to void the company's chief executive, Elon Musk's, $56 billion compensation package.
The ruling was delivered on Tuesday after five years of legal wrangling, prompting the judge to note that the pay package must meet rigorous standards because Musk was a controlling shareholder at the time.
European Markets Erase Early Gains After Tech Stocks Drop In New York
Market indexes across Europe lacked direction but edged higher for the sixth session in a row, and investors awaited rate decisions.
The U.S. Federal Reserve and the Bank of England are widely anticipated to hold rates steady, and policymakers are expected to reiterate their commitments to keep rates restricted to lower inflation to the target rate of 2%.
Tech stocks were under pressure after weaker-than-expected results from Microsoft, Alphabet, and AMD.
On the economic front, France's inflation dropped to a two-year low in January, Swiss retail sales decreased for the sixth month in a row in December, and the Italian jobless rate dropped to a 16-year low.
France's Inflation Fell to a 2-year Low
Consumer price inflation slowed to 3.1% from 3.7% in December, according to a preliminary report released by the statistical office INSEE on Wednesday.
This was the lowest inflation since January 2022.
The overall decline in inflation was driven by a weakness in inflation in food, energy, and manufactured products.
Food price inflation slowed to 5.7% from 7.2%, and the increase in energy slowed to 1.8% from 5.7%. Manufactured product inflation dropped to 0.7% from 1.4%.
Service inflation edged up slightly to 3.2% from 3.1%.
EU harmonized inflation also weakened in January, to 3.4% from 4.1% in December.
On a monthly basis, both consumer prices and the harmonized index of consumer prices fell 0.2%, in contrast to the 0.1% increase in December.
Inflation in the first half is likely to stay around 3.0% before slowing to 2%, but energy shipment disruptions could add another bout of inflation.
Italy's Jobless Rate Dropped to a 16-year Low
Italy's jobless rate unexpectedly dropped to 7.2% in December from a downwardly revised 7.4% in the previous month, the statistical agency ISTAT reported Wednesday.
The jobless rate fell to the lowest level in 16 years after employment picked up in the northern industrial areas.
The number of unemployed people fell by 50,000 to 1.829 million, while the number of employed individuals increased by 14,000 to 23.754 million.
Meanwhile, the youth unemployment rate for job-seekers between 15 and 24 years old fell to 20.1% in December from 20.5% in November, the lowest level since July 2007.
Europe Indexes and Yields
The DAX index decreased 0.4% to 16,903.76, the CAC-40 index fell 0.3% to 7,656.75, and the FTSE 100 index inched lower by 0.5% to 7,630.57.
The yield on 10-year German bonds edged down to 2.20%; French bonds inched higher to 2.69%; the UK gilts edged lower to 3.87%; and Italian bonds inched lower to 3.74%.
The euro edged lower to $1.082, the British pound inched higher to $1.267, and the U.S. dollar gained to 86.28 Swiss cents.
Brent crude decreased $1.68 to $80.68 a barrel, and the Dutch TTF natural gas increased by €0.81 to €30.20 per MWh.
Europe Stock Movers
Atoss Software jumped 3.7% to €254.0 after the German software company reported an increase in revenue and earnings in the fiscal year 2023.
FDM Group Holdings PLC decreased 1.5% to 444.0 pence after the UK-based IT services provider reported a slight increase in its annual revenue.
Revenue for 2023 is expected to increase by 1% to £334 million from £330 million a year ago.
On a constant currency basis, revenue increased by 2%, or £7.4 million.
The number of consultants placed with clients declined by 21% to 3,892 from 4,905 in the previous year.
Banco Santander SA increased 2.4% to €3.73 after the Spanish bank estimated a higher profit in the current year.
H&M dropped 9% to SEK 151.94 after the Swedish retailer appointed a new chief executive and the company missed its operating profit estimate.
Novo Nordisk increased 0.4% to DKK 751.20 after the Danish pharmaceutical group estimated a double-digit increase in sales and operating profit growth, driven by strong demand for its diabetes drug Ozempic and weight loss drug Wegovy.
China Stocks Dropped to 5-year Lows, Japan and India Advanced
Markets in China were under pressure after tech stocks led another downward day after weaker-than-expected earnings from AMD and Alphabet.
However, the indexes in Japan advanced after the release of retail sales and industrial output data.
The Nikkei 225 average advanced 0.6% to 36,286.55, and tech stocks led the gainers in Tokyo trading.
Retail trade sales increased by 2.1% from a year ago to 15.5 trillion yen in December, the Ministry of Economy, Trade, and Industry said on Wednesday.
For the fourth quarter of 2023, retail sales advanced 3.8% year over year but fell 1.7% from the previous quarter to 42.989 trillion yen.
Full-year 2023 retail sales gained 5.6% to 162.996 trillion yen.
Preliminary industrial output in Japan rose a seasonally adjusted 1.8% from the previous month in December, the Ministry of Economy, Trade, and Industry said on Wednesday.
Industrial production was down 0.7% on an annual basis.
The powerful earthquake in the Noto Peninsula on New Year's Day had little impact on industrial production data.
However, the recent halt in production at the Daihatsu plant over rigged collision-safety tests is likely to negatively impact production in January, according to the ministry.
Industrial production is expected to drop 6.2% per month in January and gain 2.2% in February.
In stock trading, Tokyo Electron, Disco, Advantest, and Keyence dropped between 2% and 3% after AMD reported sharply lower-than-expected earnings.
Elsewhere in the region, the KOSPI index decreased 0.1% to 2,497.09 and the ASX 200 index added 1% to 7,680.70.
Crude Oil in Focus After Red Sea Attacks Disrupt Supply Routes
Crude oil traded higher in international markets in the hopes that demand growth will rebound in China after the government pledged more policy support to stabilize financial markets.
Middle East oil-producing nations are also offering larger discounts to refineries in India and China after the producers face difficulties in shipping through the troubled waters of the Red Sea.
Diesel exporters from India are forced to divert shipments away from Red Sea Lanes to routes along South Africa after growing attacks by the Yemen-based Houthi group on cargo ships in the Red Sea.
Freight costs have risen more than twofold and added two weeks to the shipping time to Europe from India, making imports from the U.S. more competitive.
China Stocks Slide After Manufacturing Sector Extend Weakness
Stocks in China slipped after manufacturing sector remained in contraction and service sector showed an anemic growth.
China Manufacturing PMI edged slightly higher to 49.2 in January from 49.0 in December, the National Bureau of Statistics reported Wednesday.
Factory activities shrank for the fourth month in a row, and new orders, exports, and employment declined in the month.
The data for January and February months could be volatile because of the Lunar Year celebration, which falls this year on February 10.
China Service PMI rose to 50.7 in January from 50.4 in December, reaching a four-month high and the sector expanded for the thirteenth month in a row.
The CSI 300 index decreased 0.3% to 3,235.45 and the Hang Seng Index dropped 1.3% to 15,508.52.
The Hang Seng index dropped 7.6% in the month, the worst monthly decline since the fall of 9.6% in February.
Alibaba Group, Meituan, Baidu, Tencent, and JD.com dropped between 2% and 2.5%.
Henderson Land Development, Sun Hung Kai, and New World Development fell between 3% and 5%.
Broad Rally Lifts India Indexes Ahead of Union Budget
Stocks in Mumbai advanced, and bond yields and the rupee held firm ahead of the release of the budget by the finance ministry.
The Sensex and the Nifty index gained more than 0.3% as investors added positions in banks, oil refiners and distributors, and infrastructure developers.
Sustained buying by foreign and domestic investors supported the rebound in stocks a day after indexes dropped more than 1%.
The Sensex index increased 258.61 points to 71,397.30, and the Nifty index rose 74.60 points to 21,596.70.
On the Mumbai stock exchange, 248 stocks traded at their 52-week highs and 14 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.16%, and the Indian rupee held steady at ₹83.13 against the U.S. dollar.
Larsen & Toubro declined 1.9% to ₹3,639.85 after the infrastructure construction company estimated new order weakness in the next two quarters due to the Lok Sabha elections.
Dr. Reddy's Laboratories declined 0.2% to ₹5,835.0 after the generic pharmaceuticals maker reported a rise in sales and earnings in its latest quarter.
Revenue in the December quarter increased 7% to ₹7,215 crore, and net income jumped 11% to ₹1,379 crore from a year ago, respectively.
Tech Stocks Lead Broader Indexes Lower After Alphabet, AMD, Microsoft Report Earnings
Barry Adams
31 Jan, 2024
New York City
Benchmark indexes on Wall Street edged lower, and tech-heavy indexes dropped after leading tech companies reported quarterly results.
The S&P500 index and the Nasdaq Composite dropped more than 0.5% after deciding to sell stocks of Alphabet, Microsoft, AMD, and Starbucks following their quarterly results.
Investors are also looking ahead to the Federal Reserve's rate decisions and monetary policy announcements later in the day.
The Federal Reserve is expected to hold rates steady and reiterate its data-dependent hawkish stance, but investors are looking for clues if and when policymakers may decide to lower rates later in the year.
Most investors are hoping that the Federal Reserve will cut rates by as much as 100 basis points in four rate cuts in the second half of this year.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 4,930.23, and the Nasdaq Composite declined 0.9% to 15,385.62.
The yield on 2-year Treasury notes decreased to 4.31%. 10-year Treasury notes declined to 4.02%, and 30-year Treasury bonds edged down to 4.25%.
WTI crude oil decreased $1.02 to $76.74 a barrel, and natural gas prices increased 2 cents to $2.10 a thermal unit.
Gold increased by $2.09 to $2,037.96 an ounce and extended the previous week's gains after the U.S. dollar drifted slightly lower in international trading.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.42.
U.S. Stock Movers
AMD dropped 6% to $161.65 after the maker of advanced semiconductors offered a weak revenue growth outlook, disappointing some investors.
Microsoft Corp. decreased 0.9% to $404.75 despite the software company reporting higher-than-expected quarterly earnings.
Revenue in the fiscal second quarter ending in December increased 18% to $62.02 billion, net income surged 33% to $21.9 billion from $17.4 billion, and diluted earnings per share advanced to $2.93 from $2.32 a year ago.
Starbucks increased 3.5% to $97.45 after the company reported quarterly results.
North America and U.S. comparable store sales increased 5%, driven by a 4% increase in average ticket sales and a 1% increase in comparable transactions.
The company lowered its full-year revenue outlook because of the competitive environment in its second-largest market, China, and rising tensions between the U.S. and China.
Because of sales weakness in China, the company lowered its fiscal year sales growth to between 7% and 10%, down from the previous estimate of between 10% and 12%.
The company reiterated its full-year earnings per share growth of between 15% and 20%.
Alphabet decreased 5.5% to $144.67 after the parent company of search engine Google reported weaker-than-expected advertising revenue in its latest quarter.
Google search revenue increased to $48 billion from $42.6 billion, and YouTube ads jumped to $9.2 billion from $7.9 billion a year ago but missed market expectations.
Walmart increased 1.1% to $167.45 after the retailer announced a 3-for-1 stock split effective on February 23.
Tesla declined 2.5% to $186.80 after a Delaware judge agreed to void the company's chief executive, Elon Musk's, $56 billion compensation package.
The ruling was delivered on Tuesday after five years of legal wrangling, prompting the judge to note that the pay package must meet rigorous standards because Musk was a controlling shareholder at the time.
U.S. Movers: Alphabet, AMD, Microsoft, Starbucks
Scott Peters
31 Jan, 2024
New York City
AMD dropped 6% to $161.65 after the maker of advanced semiconductors offered a weak revenue growth outlook, disappointing some investors.
Revenue in the fourth quarter increased 10% to $6.2 billion from $5.6 billion, net income soared to $667 million from $21 million, and diluted earnings per share advanced to 41 cents from 1 cent a year ago.
For the full year 2023, the company reported revenue of $22.7 billion, net income of $854 million, and diluted earnings per share of $0.53.
For the first quarter of 2024, AMD expects revenue to be approximately $5.4 billion.
AMD expects data center segment revenue to be flat, with a seasonal decline in server sales offset by a strong data center GPU ramp.
Client, embedded, and gaming segment sales are expected to decline sequentially, with semi-custom revenue expected to decline by a significant double-digit percentage.
The company added, non-GAAP gross margin is expected to be approximately 52%.
Microsoft Corp. decreased 0.9% to $404.75 despite the software company reporting higher-than-expected quarterly earnings.
Revenue in the fiscal second quarter ending in December increased 18% to $62.02 billion, net income surged 33% to $21.9 billion from $17.4 billion, and diluted earnings per share advanced to $2.93 from $2.32 a year ago.
Revenue in the cloud segment soared 20% to $25.9 billion, personal productivity and business segment jumped 13% to $19.2 billion, and personal computing segment increased 19% to $16.9 billion.
The company returned to shareholders $8.4 billion in the form of share repurchases and dividends in the second quarter of fiscal year 2024.
Starbucks increased 3.5% to $97.45 after the company reported quarterly results.
Revenue in the fiscal first quarter ending in December rose 8.2% to $9.4 billion from $8.7 billion, net earnings rose 19.8% to $1.02 billion from $855 million, and diluted earnings per share advanced to 90 cents from 74 cents a year ago.
Global comparable store sales increased 5%, driven by a 3% increase in comparable transactions and a 2% increase in average ticket sales.
North America and U.S. comparable store sales increased 5%, driven by a 4% increase in average ticket sales and a 1% increase in comparable transactions.
The company lowered its full-year revenue outlook because of the competitive environment in its second largest market, China, and rising tensions between the U.S. and China.
Same-store sales in China increased by 10%; however, average ticket sales at stores fell by 9% as consumers avoided high-priced coffee shops.
Because of sales weakness in China, the company lowered its fiscal year sales growth to between 7% and 10%, down from the previous estimate of between 10% and 12%.
The company reiterated its full-year earnings per share growth of between 15% and 20%.
Alphabet decreased 5.5% to $144.67 after the parent company of search engine Google, reported weaker-than-expected advertising revenue in its latest quarter.
Revenue in the fourth quarter increased 13% to $86.3 billion, net income soared to $20.6 billion from $13.6 billion, and diluted earnings per share advanced to $1.64 from $1.05 a year ago.
Google search revenue increased to $48 billion from $42.6 billion, and YouTube ads jumped to $9.2 billion from $7.9 billion a year ago.
Europe Movers: Atoss Software, Banco Santander, FDM Group, H&M, Novo Nordisk
Inga Muller
31 Jan, 2024
Frankfurt
European markets inched higher and markets indexes in France and Germany hovered near record highs.
The DAX index decreased 0.1% to 16,945.48, the CAC-40 index rose 0.1% to 7,683.51, and the FTSE 100 index inched lower by 0.1% to 7,657.63.
The yield on 10-year German bonds edged down to 2.20%; French bonds inched higher to 2.69%; the UK gilts edged lower to 3.87%; and Italian bonds inched lower to 3.74%.
Atoss Software jumped 3.7% to €254.0 after the German software company reported an increase in revenue and earnings in the fiscal year 2023.
FDM Group Holdings PLC decreased 1.5% to 444.0 pence after the UK-based IT services provider reported a slight increase in its annual revenue.
Revenue for 2023 is expected to increase by 1% to £334 million from £330 million a year ago.
On a constant currency basis, revenue increased by 2%, or £7.4 million.
The number of consultants placed with clients declined by 21% to 3,892 from 4,905 in the previous year.
Banco Santander SA increased 2.4% to €3.73 after the Spanish bank estimated a higher profit in the current year.
H&M dropped 9% to SEK 151.94 after the Swedish retailer appointed a new chief executive and the company missed its operating profit estimate.
Novo Nordisk increased 0.4% to DKK 751.20 after the Danish pharmaceutical group estimated a double-digit increase in sales and operating profit growth, driven by strong demand for its diabetes drug Ozempic and weight loss drug Wegovy.
France Inflation at 2-year Low, Italy Jobless Rate Drops to a 16-year Low
Bridgette Randall
31 Jan, 2024
Frankfurt
Market indexes across Europe lacked direction but edged higher for the sixth session in a row, and investors awaited rate decisions.
The U.S. Federal Reserve and the Bank of England are widely anticipated to hold rates steady, and policymakers are expected to reiterate their commitments to keep rates restricted to lower inflation to the target rate of 2%.
Tech stocks were under pressure after weaker-than-expected results from Microsoft, Alphabet, and AMD.
On the economic front, France's inflation dropped to a two-year low in January, Swiss retail sales decreased for the sixth month in a row in December, and the Italian jobless rate dropped to a 16-year low.
France's Inflation Fell to a 2-year Low
Consumer price inflation slowed to 3.1% from 3.7% in December, according to a preliminary report released by the statistical office INSEE on Wednesday.
This was the lowest inflation since January 2022.
The overall decline in inflation was driven by a weakness in inflation in food, energy, and manufactured products.
Food price inflation slowed to 5.7% from 7.2%, and the increase in energy slowed to 1.8% from 5.7%. Manufactured product inflation dropped to 0.7% from 1.4%.
Service inflation edged up slightly to 3.2% from 3.1%.
EU harmonized inflation also weakened in January, to 3.4% from 4.1% in December.
On a monthly basis, both consumer prices and the harmonized index of consumer prices fell 0.2%, in contrast to the 0.1% increase in December.
Inflation in the first half is likely to stay around 3.0% before slowing to 2%, but energy shipment disruptions could add another bout of inflation.
Italy's Jobless Rate Dropped to a 16-year Low
Italy's jobless rate unexpectedly dropped to 7.2% in December from a downwardly revised 7.4% in the previous month, the statistical agency ISTAT reported Wednesday.
The jobless rate fell to the lowest level in 16 years after employment picked up in the northern industrial areas.
The number of unemployed people fell by 50,000 to 1.829 million, while the number of employed individuals increased by 14,000 to 23.754 million.
Meanwhile, the youth unemployment rate for job-seekers between 15 and 24 years old fell to 20.1% in December from 20.5% in November, the lowest level since July 2007.
Europe Indexes and Yields
The DAX index decreased 0.1% to 16,945.48, the CAC-40 index rose 0.1% to 7,683.51, and the FTSE 100 index inched lower by 0.1% to 7,657.63.
The yield on 10-year German bonds edged down to 2.20%; French bonds inched higher to 2.69%; the UK gilts edged lower to 3.87%; and Italian bonds inched lower to 3.74%.
The euro edged lower to $1.082, the British pound inched higher to $1.267, and the U.S. dollar gained to 86.28 Swiss cents.
Brent crude decreased $0.78 to $81.68 a barrel, and the Dutch TTF natural gas increased by €0.68 to €30.08 per MWh.
Europe Stock Movers
Atoss Software jumped 3.7% to €254.0 after the German software company reported an increase in revenue and earnings in the fiscal year 2023.
FDM Group Holdings PLC decreased 1.5% to 444.0 pence after the UK-based IT services provider reported a slight increase in its annual revenue.
Revenue for 2023 is expected to increase by 1% to £334 million from £330 million a year ago.
On a constant currency basis, revenue increased by 2%, or £7.4 million.
The number of consultants placed with clients declined by 21% to 3,892 from 4,905 in the previous year.
Banco Santander SA increased 2.4% to €3.73 after the Spanish bank estimated a higher profit in the current year.
H&M dropped 9% to SEK 151.94 after the Swedish retailer appointed a new chief executive and the company missed its operating profit estimate.
Novo Nordisk increased 0.4% to DKK 751.20 after the Danish pharmaceutical group estimated a double-digit increase in sales and operating profit growth, driven by strong demand for its diabetes drug Ozempic and weight loss drug Wegovy.
China's Factory Activities Shrank for the Fourth Month, Japan's Retail Sales and Industrial Output Advanced
Arjun Pandit
31 Jan, 2024
Mumbai
Markets in China were under pressure after tech stocks led another downward day after weaker-than-expected earnings from AMD and Alphabet.
However, the indexes in Japan advanced after the release of retail sales and industrial output data.
The Nikkei 225 average advanced 0.6% to 36,286.55, and tech stocks led the gainers in Tokyo trading.
Retail trade sales increased by 2.1% from a year ago to 15.5 trillion yen in December, the Ministry of Economy, Trade, and Industry said on Wednesday.
For the fourth quarter of 2023, retail sales advanced 3.8% year over year but fell 1.7% from the previous quarter to 42.989 trillion yen.
Full-year 2023 retail sales gained 5.6% to 162.996 trillion yen.
Preliminary industrial output in Japan rose a seasonally adjusted 1.8% from the previous month in December, the Ministry of Economy, Trade, and Industry said on Wednesday.
Industrial production was down 0.7% on an annual basis.
The powerful earthquake in the Noto Peninsula on New Year's Day had little impact on industrial production data.
However, the recent halt in production at the Daihatsu plant over rigged collision-safety tests is likely to negatively impact production in January, according to the ministry.
Industrial production is expected to drop 6.2% per month in January and gain 2.2% in February.
In stock trading, Tokyo Electron, Disco, Advantest, and Keyence dropped between 2% and 3% after AMD reported sharply lower-than-expected earnings.
Elsewhere in the region, the KOSPI index decreased 0.1% to 2,497.09 and the ASX 200 index added 1% to 7,680.70.
Crude Oil in Focus After Red Sea Attacks Disrupt Supply Routes
Crude oil traded higher in international markets in the hopes that demand growth will rebound in China after the government pledged more policy support to stabilize financial markets.
Middle East oil-producing nations are also offering larger discounts to refineries in India and China after the producers face difficulties in shipping through the troubled waters of the Red Sea.
Diesel exporters from India are forced to divert shipments away from Red Sea Lanes to routes along South Africa after growing attacks by the Yemen-based Houthi group on cargo ships in the Red Sea.
Freight costs have risen more than twofold and added two weeks to the shipping time to Europe from India, making imports from the U.S. more competitive.
China Stocks Slide After Manufacturing Sector Extend Weakness
Stocks in China slipped after manufacturing sector remained in contraction and service sector showed an anemic growth.
China Manufacturing PMI edged slightly higher to 49.2 in January from 49.0 in December, the National Bureau of Statistics reported Wednesday.
Factory activities shrank for the fourth month in a row, and new orders, exports, and employment declined in the month.
The data for January and February months could be volatile because of the Lunar Year celebration, which falls this year on February 10.
China Service PMI rose to 50.7 in January from 50.4 in December, reaching a four-month high and the sector expanded for the thirteenth month in a row.
The CSI 300 index decreased 0.3% to 3,235.45 and the Hang Seng Index dropped 1.3% to 15,508.52.
The Hang Seng index dropped 7.6% in the month, the worst monthly decline since the fall of 9.6% in February.
Alibaba Group, Meituan, Baidu, Tencent, and JD.com dropped between 2% and 2.5%.
Henderson Land Development, Sun Hung Kai, and New World Development fell between 3% and 5%.
Broad Rally Lifts India Indexes Ahead of Union Budget
Stocks in Mumbai advanced, and bond yields and the rupee held firm ahead of the release of the budget by the finance ministry.
The Sensex and the Nifty index gained more than 0.3% as investors added positions in banks, oil refiners and distributors, and infrastructure developers.
Sustained buying by foreign and domestic investors supported the rebound in stocks a day after indexes dropped more than 1%.
The Sensex index increased 258.61 points to 71,397.30, and the Nifty index rose 74.60 points to 21,596.70.
On the Mumbai stock exchange, 248 stocks traded at their 52-week highs and 14 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.16%, and the Indian rupee held steady at ₹83.13 against the U.S. dollar.
Larsen & Toubro declined 1.9% to ₹3,639.85 after the infrastructure construction company estimated new order weakness in the next two quarters due to the Lok Sabha elections.
Revenue in the December quarter jumped 18.8% to ₹55,128 crore, and net income advanced 15.5% to ₹2,947 crore from ₹2,553 crore a year ago.
New orders in the quarter rose to ₹75,990 crore, driven by a 29% jump in international orders and a 44% decline in domestic orders.
Total order backlog soared to ₹4.69 lakh crore, or trillion, of which international orders are 29%, at the end of the quarter.
Dr. Reddy's Laboratories declined 0.2% to ₹5,835.0 after the generic pharmaceuticals maker reported a rise in sales and earnings in its latest quarter.
Revenue in the December quarter increased 7% to ₹7,215 crore, and net income jumped 11% to ₹1,379 crore from a year ago, respectively.
India Movers: Coromandel International, Dr Reddy, L&T, PB Fintech, Petronet, SRF, Voltas
Arun Goswami
30 Jan, 2024
Mumbai
Voltas declined 2% to ₹1,020.0 after the home appliance maker reported a loss in its latest quarter.
Consolidated revenue in the December quarter rose 31% to ₹2,626 crore, and net loss narrowed to ₹27.6 crore from ₹110.5 crore a year ago.
Larsen & Toubro declined 1.9% to ₹3,639.85 after the infrastructure construction company estimated new order weakness in the next two quarters due to the Lok Sabha elections.
Revenue in the December quarter jumped 18.8% to ₹55,128 crore, and net income advanced 15.5% to ₹2,947 crore from ₹2,553 crore a year ago.
New orders in the quarter rose to ₹75,990 crore, driven by a 29% jump in international orders and a 44% decline in domestic orders.
Total order backlog soared to ₹4.69 lakh crore, or trillion, of which international orders are 29%, at the end of the quarter.
SRF decreased 0.8% to ₹2,227.75 after the intermediate chemicals maker reported a sharp decline in profit in its latest quarter.
Net profit in the December quarter dropped 50% to ₹253.4 crore from ₹511 crore a year ago.
Coromandel International plunged 7.7% to ₹1,050.0 after the crop protection fertilizer maker reported a sharp decline in its quarterly profit.
Consolidated net profit in the December quarter plunged 57% to ₹228 crore from ₹527 crore a year ago.
Petronet LNG rose 1.9% to ₹268.0 after the LNG importer and terminal operators reported a slight increase in profit in its latest quarter.
Consolidated profit in the December quarter increased 1.2% from a year ago to ₹1,903 crore.
PB Fintech gained 0.8% to ₹907.60 after the online marketplace for insurance products swung to a profit in its latest quarter.
Revenue in the December quarter rose 43% to ₹871 crore and swung to a net income of ₹37 crore from ₹87 crore a year ago.
Dr. Reddy's Laboratories declined 0.2% to ₹5,835.0 after the generic pharmaceuticals maker reported a rise in sales and earnings in its latest quarter.
Revenue in the December quarter increased 7% to 7,215 crore, and net income jumped 11% to 1,379 crore from a year ago, respectively.
Nasdaq Turns Lower Ahead of Key Tech Earnings, Markets In Europe and Asia Close Higher
Barry Adams
30 Jan, 2024
New York City
Market indexes on Wall Street danced around flatline as investors reviewed the latest batch of quarterly results and looked ahead to the Federal Reserve's monetary policy announcement.
The S&P 500 index and the Nasdaq Composite traded around flatline, and investors reacted to quarterly results from General Motors, UPS, JetBlue, and Whirlpool.
After the close, Alphabet, Microsoft, and AMD are scheduled to announce their results.
The SP 500 index and the Dow Jones Industrial Average closed at new record highs in the previous session.
The Federal Reserve is set to announce its monetary policy decision at the end of the two-day meeting on Wednesday.
Investors are anticipating that the Federal Reserve will hold rates and are looking forward to the central bank's guidance about the rate path.
The latest Job Openings and Labor Turnover report showed an unexpected increase in job openings, suggesting persistent tight labor market conditions.
U.S. Job Openings Expanded In December
The number of job openings rose by 101,000 in December 2023 from the previous month to 9.026 million, the U.S. Bureau of Labor Statistics reported Tuesday.
Job openings rose to a three-month high, driven by an increase of 239,000 in professional and business services but a decrease of 83,000 in wholesale trade.
Job openings, not evenly distributed, rose in the South by 115,000 and the Northeast by 12,000, but declined in the Midwest by 22,000, and the West by 4,000.
Over the month, the number of hires and total separations were little changed, at 5.6 million and 5.4 million, respectively.
Within separations, quits totaled 3.4 million, and layoffs and discharges were 1.6 million, and both changed little from the previous month.
U.S. Indexes and Yields
The S&P 500 index decreased 0.02% to 4,924.33, and the Nasdaq Composite declined 0.7% to 15,522.54.
The yield on 2-year Treasury notes decreased to 4.32%. 10-year Treasury notes declined to 4.07%, and 30-year Treasury bonds edged down to 4.30%.
WTI crude oil decreased $1.22 to $78.04 a barrel, and natural gas prices increased 1 cent to $2.06 a thermal unit.
Gold increased by $3.07 to $2,035.56 an ounce and extended the previous week's gains after the U.S. dollar drifted slightly lower in international trading.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.48.
U.S. Stock Movers
General Motors jumped 7.5% to $38.03 after the company reported better-than-expected quarterly earnings on flat sales in the fourth quarter.
Sales in the quarter edged slightly lower to $42.98 billion from $43.11 billion, net income edged higher to $2.1 billion from $2.0 billion, and earnings per share rose to $1.59 from $1.39 a year ago.
The company reiterated its commitment to electric vehicles and confirmed that adoption of the advanced vehicle has been slower than anticipated.
Despite the near-term sales challenges, General Motors plans to build a production capacity of one million electric vehicles by 2025.
JetBlue Airways declined 1.1% to $5.44 after the company reported a loss in the latest quarter.
Revenue in the fourth quarter decreased 3.7% to $2.3 billion, net income swung to a loss of $124 million from a profit of $24 million, and diluted earnings per share were $0.31 from 7 cents a year ago.
UPS declined 6.9% to $147.20 after the package delivery company reported mixed quarterly results and the company's outlook fell short of market expectations.
European Markets Close at New Record Highs
European market indexes inched higher in record territory as investors digested a fresh batch of corporate results.
The Euro Area barely avoided a technical recession after stalling in the fourth quarter of 2023 as consumer spending remained restrained amid elevated interest rates and high inflation.
Market indexes in Frankfurt and Paris jumped to new record highs, and the benchmark index in London edged higher in Tuesday's trading.
The Euro Area Barely Avoids Recession
The Euro Area economy struggled in the final quarter of 2023 after larger member nations showed little growth, the statistical agency Eurostat reported Tuesday.
The eurozone GDP in the December quarter stalled following a 0.1% contraction, narrowly avoiding a technical recession in the currency union.
The economies of Spain expanded by 0.6%, Portugal by 0.8%, Italy by 0.2%, and Belgium by 0.4%.
However, the economy of Spain stalled, and Germany contracted by 0.3%.
In full-year 2023, the eurozone economy expanded by 0.5%, despite the aggressive rate hike campaign and multi-year high inflation.
Spain's Inflation Accelerated
Spain's overall inflation unexpectedly accelerated in January, the National Statistics Institute reported Tuesday.
Inflation increased to an annual pace of 3.4% in January from 3.1% in the previous month, driven by a higher rate of electricity.
On a monthly basis, Spain's consumer price index edged up 0.1%.
The core rate of inflation, which excludes food and energy, eased for the sixth month in a row to 3.6% from 3.8% in the previous month and fell to the lowest level since March 2022.
Spain's EU harmonized annual inflation rate edged higher to 3.5% from 3.3% in each of the previous two months.
Europe Indexes and Yields
The DAX index increased 0.2% to 16,972.34, the CAC-40 index rose 0.5% to 7,677.47, and the FTSE 100 index inched higher by 0.4% to 7,666.41.
The yield on 10-year German bonds edged down to 2.24%; French bonds inched higher to 2.74%; the UK gilts edged lower to 3.87%; and Italian bonds inched lower to 3.75%.
The euro edged lower to $1.082, the British pound inched higher to $1.268, and the U.S. dollar gained to 86.30 Swiss cents.
Brent crude increased $0.82 to $82.65 a barrel, and the Dutch TTF natural gas increased by €1.22 to €29.39 per MWh.
Europe Stock Movers
BBVA increased 4.1% to €8.45 after the Spanish financial services provider posted strong fourth-quarter results and announced a stock repurchase plan of €781 million.
Hapag Lloyd declined 8.4% to €141.70 after the German shipping company's operating earnings declined 92% in the fourth quarter because of a lower freight rate reflecting the normalization of global supply chains from pandemic-era disruptions.
Diageo plc declined 3.5% to 2,749.0 pence after sales in the first half declined and profit fell by more than 10% after demand for expensive spirits eased in Latin America and the Caribbean region.
WPP PLC jumped 1.5% to 792.24 pence after the advertising agency upgraded its medium-term financial targets.
Foreign Investors Prefer Japan and India to China, BYD Earnings Soar
Market indexes in Asia diverged as foreign investors rotated out of stocks in China into Japan and India.
The Nikkei index increased 0.2% to 36,089.38 and advanced for the second day in a row this week following the gains on Wall Street in New York.
The unemployment rate in December eased to 2.4% from 2.5% in the previous two months, and investors are looking ahead to the release of retail sales, industrial production, and consumer confidence data later in the week.
Advanced semiconductor-related stocks were among the leading gainers in Tuesday's trading.
Advantest, Disco, and Renesas Electronics gained between 1% and 3%.
Foreign investors have been increasing their holdings in Japan in the hopes that the revamped individual tax-free savings plan will attract more domestic investors to the stock market after three decades of losses.
Foreign investors added about 384 billion yen worth of Japanese stocks, and domestic retail investors sold 185.5 billion yen of Japanese stocks in the period between January 15 and 19, according to the data available from the Tokyo Stock Exchange.
The Nikkei index is trading at about 15 times the estimated earnings of index-member Japanese companies.
Elsewhere in the region, the KOSPI index in Seoul added 0.1% to 2,504.60, and the ASX 200 index in Sydney advanced 0.3% to 7,600.20.
Selling Resumes on Chinese Stock Exchanges
Indexes in mainland China and Hong Kong resumed their slide amid persistent selling by foreign investors and protracted weakness in the property market.
Foreign investors continue to sell China stocks on the worry that the government may not be able to provide sustained reforms and stimulus to support financial markets amid a weakening macroeconomic backdrop and worsening tensions with the U.S.
The weak support from the government and restrained consumer spending growth also stoked fears of weak corporate earnings growth.
China's official estimate of the manufacturing industry is likely to show on Wednesday a contraction for the fourth month in a row in December.
The CSI 300 index in Shanghai declined 1% to 3,270.66, and the Hang Seng index in Hong Kong dropped 2% to 15,762.04.
The Hang Seng index has lost about 7.5% this month, trailing only to the worst start of the year at 10% in 2016.
Market sentiment was dented after BYD, the largest electric vehicle maker in the world, estimated an 86% surge in profit in 2023 but fell short of investor expectations.
BYD fell 5.7% to HK$175.50 and dragged down Li Auto by 1.9% to HK$107.20.
Other leading tech stocks also declined, reflecting weak market sentiment.
Alibaba Group, Tencent, Baidu, and Meituan declined between 2% and 3%.
India Stocks In Holding Pattern, Crude Oil Refiners and Exporters Face Houthi Reality
Stocks in Mumbai lacked direction in early trading as investors digested a fresh batch of earnings and looked forward to the release of the interim budget later in the week.
The Sensex and the Nifty indexes traded in a tight range around the flatline after Bajaj Finance reported a strong rise in earnings but fell short of market expectations.
Aditya Birla Sun Life, ITC, NTPC, and Piramal Enterprises met or exceeded investor expectations.
Tensions in the Red Sea continue to dominate crude oil and refined crude products trading as shippers divert cargo away from the troubled waters.
The Yemen-based Houthi group's missile attack in the Red Sea set on fire an oil cargo ship owned by one of the largest commodities trading firms, Trafigura, on Saturday.
Moreover, India's diesel shipments to Europe are facing difficulties because all shipments travel through the Red Sea lanes.
European countries are relying on diesel shipments from India and Saudi Arabia to meet their daily shortfall of 650,000 barrels.
India's diesel exports are taking a hit because of the higher freight costs and longer delivery time to the region, and European customers are switching supplies from the U.S.
At the same time, Middle East suppliers are forced to divert shipments around South Africa to Europe, lengthening delivery times by two weeks and increasing freight costs by at least 50%.
Facing higher shipping costs to Europe, Middle East crude oil suppliers are offering discounts to refiners in India and China.
The largest diesel exporter, Reliance Industries, declined 1.5%, but ONGC, Mangalore Refinery, Hindustan Petroleum, and Bharat Petroleum jumped between 2% and 4%.
The Sensex index decreased 57.84 points to 71,883.73, and the Nifty index rose 22.60 points to 21,760.20.
On the Mumbai stock exchange, 281 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
Bajaj Finance declined 4.4% to ₹6,892.50 after the financial services company reported a surge in quarterly profit and revenue but missed investor expectations.
Net interest income in the December quarter jumped 29% to 7,655 crore, and net profit jumped 22% to 3,639 crore from a year ago, respectively.
U.S. Averages On Hold Ahead of Mega-Cap Tech Earnings and Rate Decision
Barry Adams
30 Jan, 2024
New York City
Market indexes on Wall Street headed down as investors reviewed the latest batch of quarterly results and looked ahead to the Federal Reserve's monetary policy announcement.
The S&P 500 index and the Nasdaq Composite traded around flatline, and investors reacted to quarterly results from General Motors, UPS, JetBlue, and Whirlpool.
After the close, Alphabet, Microsoft, and AMD are scheduled to announce their results.
The SP 500 index and the Dow Jones Industrial Average closed at new record highs in the previous session.
The Federal Reserve is set to announce its monetary policy decision at the end of the two-day meeting on Wednesday.
Investors are anticipating that the Federal Reserve will hold rates and are looking forward to the central bank's guidance about the rate path.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 4,942.06, and the Nasdaq Composite declined 0.2% to 15,486.26.
The yield on 2-year Treasury notes decreased to 4.32%. 10-year Treasury notes declined to 4.07%, and 30-year Treasury bonds edged down to 4.30%.
WTI crude oil decreased $0.72 to $76.07 a barrel, and natural gas prices increased 2 cents to $2.07 a thermal unit.
Gold increased by $3.07 to $2,035.56 an ounce and extended the previous week's gains after the U.S. dollar drifted slightly lower in international trading.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.48.
U.S. Stock Movers
General Motors jumped 7.5% to $38.03 after the company reported better-than-expected quarterly earnings on flat sales in the fourth quarter.
Sales in the quarter edged slightly lower to $42.98 billion from $43.11 billion, net income edged higher to $2.1 billion from $2.0 billion, and earnings per share rose to $1.59 from $1.39 a year ago.
The company reiterated its commitment to electric vehicles and confirmed that adoption of the advanced vehicle has been slower than anticipated.
Despite the near-term sales challenges, General Motors plans to build a production capacity of one million electric vehicles by 2025.
JetBlue Airways declined 1.1% to $5.44 after the company reported a loss in the latest quarter.
Revenue in the fourth quarter decreased 3.7% to $2.3 billion, net income swung to a loss of $124 million from a profit of $24 million, and diluted earnings per share were $0.31 from 7 cents a year ago.
UPS declined 6.9% to $147.20 after the package delivery company reported mixed quarterly results and the company's outlook fell short of market expectations.
U.S. Movers: F5, GM, JetBlue, Sanmina, UPS, Whirlpool
Scott Peters
30 Jan, 2024
New York City
F5 jumped 8% to $200.20 after the secured network management company reported better-than-expected quarterly results.
General Motors jumped 7.5% to $38.03 after the company reported better-than-expected quarterly earnings on flat sales in the fourth quarter.
Sales in the quarter edged slightly lower to $42.98 billion from $43.11 billion, net income edged higher to $2.1 billion from $2.0 billion, and earnings per share rose to $1.59 from $1.39 a year ago.
The company reiterated its commitment to electric vehicles and confirmed that adoption of the advanced vehicle has been slower than anticipated.
Despite the near-term sales challenges, General Motors plans to build a production capacity of one million electric vehicles by 2025.
JetBlue Airways declined 1.1% to $5.44 after the company reported a loss in the latest quarter.
Revenue in the fourth quarter decreased 3.7% to $2.3 billion, net income swung to a loss of $124 million from a profit of $24 million, and diluted earnings per share were $0.31 from 7 cents a year ago.
UPS declined 6.9% to $147.20 after the package delivery company reported mixed quarterly results and the company's outlook fell short of market expectations.
Sanmina Corp. soared 16.20% after the semiconductor equipment maker reported better-than-expected quarterly earnings and a current-quarter estimate.
Revenue in the fiscal first quarter ending in December decreased to $1.87 billion from $2.35 billion, net income plunged to $57 million from $92 million, and diluted earnings per share dropped to 98 cents from $1.54 a year ago.
The company guided fiscal second quarter revenue between $1.825 billion and $1.925 billion and diluted earnings per share between 95 cents and $1.05.
Whirlpool declined 4.5% to $112.27 after the company estimated a weaker-than-expected annual outlook.
Revenue in the fourth quarter increased 3.4% to $5.1 billion, net income swung to $491 million from $1.6 billion, and diluted earnings per share were $8.90 compared to a loss of $29.35 a year ago.
The company estimated 2024 revenue of $16.9 billion and diluted earnings per share between $8.50 and $10.50.
Europe Movers: BBVA, Diageo, Delivery Hero, Hapag Llyod, Hill & Smith, WPP
Inga Muller
30 Jan, 2024
Frankfurt
European market indexes in France and Germany traded at new highs, and the eurozone economy stalled in the fourth quarter, barely avoiding a technical recession.
The DAX index increased 0.1% to 16,962.54, the CAC-40 index rose 0.3% to 7,665.48, and the FTSE 100 index inched higher by 0.6% to 7,674.69.
The yield on 10-year German bonds edged down to 2.24%; French bonds inched higher to 2.74%; the UK gilts edged lower to 3.87%; and Italian bonds inched lower to 3.75%.
BBVA increased 4.1% to €8.45 after the Spanish financial services provider posted strong fourth-quarter results and announced a stock repurchase plan of €781 million.
Hapag Lloyd declined 8.4% to €141.70 after the German shipping company's operating earnings declined 92% in the fourth quarter because of a lower freight rate reflecting the normalization of global supply chains from pandemic-era disruptions.
Diageo plc declined 3.5% to 2,749.0 pence after sales in the first half declined and profit fell by more than 10% after demand for expensive spirits eased in Latin America and the Caribbean region.
WPP PLC jumped 1.5% to 792.24 pence after the advertising agency upgraded its medium-term financial targets.
Hill & Smith PLC added 1.8% to 1,863.40 pence, and the infrastructure products company appointed a new chief operating officer.
Delivery Hero SE plunged 6.7% to €21.03 after the company said it plans to sell a stake in Deliveroo as consumer demand falters.
Eurozone Economy Stalled In Fourth Quarter, Germany and France GDP Growth Slows In 2023
Bridgette Randall
30 Jan, 2024
Frankfurt
European market indexes inched higher in record territory as investors digested a fresh batch of corporate results.
The Euro Area barely avoided a technical recession after stalling in the fourth quarter of 2023 as consumer spending remained restrained amid elevated interest rates and high inflation.
Market indexes in Frankfurt and Paris jumped to new record highs, and the benchmark index in London edged higher in Tuesday's trading.
The Euro Area Barely Avoids Recession
The Euro Area economy struggled in the final quarter of 2023 after larger member nations showed little growth, the statistical agency Eurostat reported Tuesday.
The eurozone GDP in the December quarter stalled following a 0.1% contraction, narrowly avoiding a technical recession in the currency union.
The economies of Spain expanded by 0.6%, Portugal by 0.8%, Italy by 0.2%, and Belgium by 0.4%.
However, the economy of Spain stalled, and Germany contracted by 0.3%.
In full-year 2023, the eurozone economy expanded by 0.5%, despite the aggressive rate hike campaign and multi-year high inflation.
Spain's Inflation Accelerated
Spain's overall inflation unexpectedly accelerated in January, the National Statistics Institute reported Tuesday.
Inflation increased to an annual pace of 3.4% in January from 3.1% in the previous month, driven by a higher rate of electricity.
On a monthly basis, Spain's consumer price index edged up 0.1%.
The core rate of inflation, which excludes food and energy, eased for the sixth month in a row to 3.6% from 3.8% in the previous month and fell to the lowest level since March 2022.
Spain's EU harmonized annual inflation rate edged higher to 3.5% from 3.3% in each of the previous two months.
Europe Indexes and Yields
The DAX index increased 0.1% to 16,962.54, the CAC-40 index rose 0.3% to 7,665.48, and the FTSE 100 index inched higher by 0.6% to 7,674.69.
The yield on 10-year German bonds edged down to 2.24%; French bonds inched higher to 2.74%; the UK gilts edged lower to 3.87%; and Italian bonds inched lower to 3.75%.
The euro edged lower to $1.082, the British pound inched higher to $1.268, and the U.S. dollar gained to 86.30 Swiss cents.
Brent crude increased $0.21 to $82.04 a barrel, and the Dutch TTF natural gas increased by €0.06 to €28.23 per MWh.
Europe Stock Movers
BBVA increased 4.1% to €8.45 after the Spanish financial services provider posted strong fourth-quarter results and announced a stock repurchase plan of €781 million.
Hapag Lloyd declined 8.4% to €141.70 after the German shipping company's operating earnings declined 92% in the fourth quarter because of a lower freight rate reflecting the normalization of global supply chains from pandemic-era disruptions.
Diageo plc declined 3.5% to 2,749.0 pence after sales in the first half declined and profit fell by more than 10% after demand for expensive spirits eased in Latin America and the Caribbean region.
WPP PLC jumped 1.5% to 792.24 pence after the advertising agency upgraded its medium-term financial targets.