Market Update
U.S. Third Quarter GDP Growth Revised Higher to 5.2%
Brian Turner
29 Nov, 2023
New York City
Gross domestic product rose at a faster pace in the third quarter after the U.S. Bureau of Economic Analysis revised its previous estimate.
Real gross domestic product increased at an annual pace of 5.2%, higher than 4.9% in the preliminary estimate, and accelerated from a 2.1% rise in the second quarter.
The GDP increase was the fastest since the fourth quarter of 2021, and the increase in the third quarter primarily reflected a higher increase in government spending, inventory investment, and nonresidential investment, but consumer spending growth was revised lower.
Wall Street Stocks Retain Upward Bias, U.S. Economic Growth Revised Higher
Barry Adams
29 Nov, 2023
New York City
Market indexes trimmed earlier gains in the session, and Treasury yields dropped to the level last seen in September.
The S&P 500 index and the Nasdaq Composite advanced 0.3% on the hopes that the Federal Reserve is more likely to hold interest rates at the end of the next policy meeting in two weeks.
The S&P 500 index has advanced about 8% and the Nasdaq Composite has gained about 11% in November, amid optimism that the interest rates are closer to peak rates.
Semiconductor, cloud computing, and big tech stocks were among the leading gainers in the recent rally in the last four weeks.
Furthermore, the focus of the investor debate has shifted to the timing and magnitude of interest rate cuts in 2024.
The long-foreseen U.S. economic recession is now not likely to materialize in 2023 and possibly even in 2024, but investors worry that rates are likely to stay above 5% for most of 2024.
U.S. Third Quarter GDP Growth Revised Higher to 5.2%
Gross domestic product rose at a faster pace in the third quarter after the U.S. Bureau of Economic Analysis revised its previous estimate.
Real gross domestic product increased at an annual pace of 5.2%, higher than 4.9% in the preliminary estimate, and accelerated from a 2.1% rise in the second quarter.
The GDP increase was the fastest since the fourth quarter of 2021, and the increase in the third quarter primarily reflected a higher increase in government spending, inventory investment, and nonresidential investment, but consumer spending growth was revised lower.
U.S. Indexes and Yields
The S&P 500 index edged up 0.2% to 4,565.09, and the Nasdaq Composite increased 0.2% to 14,306.36.
The yield on 2-year Treasury notes decreased to 4.69%, 10-year Treasury notes inched lower to 4.29%, and 30-year Treasury bonds edged higher to 4.47%.
Crude oil increased $1.26 to $77.69 a barrel, and natural gas prices fell 1 cent to $2.82 a thermal unit.
Gold increased $4.40 to $2,045.36 an ounce after the U.S. dollar eased.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.82.
U.S. Stock Movers
General Motors jumped 9.5% to $31.66 after the vehicle maker announced a $10 billion stock buyback, raised its dividend, and reinstated its annual outlook.
The company estimated net income attributable to stockholders between $9.1 billion and $9.7 billion, compared to the previous outlook of $9.3 billion and $10.7 billion.
Diluted earnings per share in the $6.52 to $7.02 range, including the estimated impact of the accelerated stock repurchase, compared to the previous outlook of $6.54 to $7.54
The vehicle maker said it plans to increase its dividend by 33%, or 3 cents per quarter, to 12 cents, beginning with the declaration in January 2024.
GM had about 1.37 billion outstanding shares prior to the announcement of the accelerated stock repurchase program.
Foot Locker jumped 16.9% to $27.67 after the specialty athletic retailer reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending in October declined 8.6% to $1.99 billion from $2.17 billion, and comparable store sales fell 8.0%.
The company attributed the decline in sales to "ongoing consumer softness," and the closure of Champ stores negatively impacted same-store sales by 3 percentage points.
Net income in the quarter decreased to $28 million from $96 million, and diluted earnings per share dropped to 30 cents from $1.01 a year ago.
The retailer tightened its full-year revenue growth estimate to between 8.0% and 8.5% from the previous guidance between 8.0% and 9.0%, and comparable sales growth to range between 8.0% and 8.5% from 8.0% to 9.0%.
The company entered into a long-term licensing agreement with two retailers in India and will commence sales operations in 2024.
During the third quarter, the company paid a quarterly dividend of $0.40 per share for a total of $38 million and did not repurchase any shares.
European Bond Yields Eased to 3-month Lows
European bond yields headed lower, and stocks advanced in Wednesday's trading.
Benchmark stock market indexes traded higher after inflation in Spain and Germany edged lower, and comments from the U.S. Federal Reserve suggested that interest rates may not be revised higher.
Fed Governor Christopher Wallace stressed that the central bank's policy is "well positioned" to slow the economy and lower inflation to 2%.
Governor Wallace's comments supported the view that the Federal Reserve is done raising rates for now.
Investors are awaiting the release of the PCE Price Index, an alternative measure of inflation, and the recent decline in inflation has bolstered the case for the third rate pause in a row at the end of the policy meeting ending on December 13.
In economic news, Sweden's economy contracted for the second quarter in a row ending in September, Statistics Sweden reported Wednesday.
GDP in the third quarter sequentially declined 0.3% after falling 0.8% in the second quarter. The economy contracted after household consumption contracted and inventories declined in the quarter.
The third-quarter decline was revised from the flat reading in the preliminary estimate.
From a year ago, GDP contracted 1.4%, following a 0.4% decrease in the second quarter.
German Import Price Slump Extends to Eight Months
German import prices fell for the eighth month in a row, primarily because of higher base comparisons in the previous year, the Federal Statistics Office, or Destatis, reported Wednesday.
Import prices fell by 13.0% from a year ago in October, after falling by 14.3% in the previous month.
Energy import prices fell 43.5% in October after crude oil, natural gas, and coal prices plunged from a high level a year ago due to the war in Ukraine.
Prices of durable goods declined by 0.6%, and those of non-durable consumer goods fell by 0.7%, but capital goods prices advanced by 1.8%.
Spain's Inflation Eased In November
Consumer price inflation in Spain eased to 3.2% in November from 3.5% in the previous two months, the National Statistics Institute or INE, reported Wednesday.
On a monthly basis, consumer price inflation decreased by 0.4% in November after rising by 0.3% in the previous month.
The decline in inflation was driven by the fall in energy prices and the weakness of tourist packages.
Core inflation, which excludes volatile food and energy prices, eased to 4.5% from 5.2% in the previous month.
Overall inflation has been on the decline after peaking at 10.8% in July 2022, and core inflation has been on the slide after peaking at 7.6% in February 2023.
UK Mortgage Approvals Rebounded In October
UK mortgage approvals rose in October after falling for three months in a row, the Bank of England reported on Wednesday.
Net mortgage approvals, an indicator of future borrowings, increased to 47,383 in October from 43,675 in September.
Mortgage approvals rebounded in October after falling for three months in a row.
Mortgage approvals peaked above 100,000 in early January 2021 and declined to a record low of 39,892 in January 2023, barring the pandemic era low and sub-prime crisis in 2007–08.
Europe Indexes and Yields
The DAX index increased 1.1% to 16,166.45, the CAC-40 index rose 0.2% to 7,267.64, and the FTSE 100 index declined 0.4% to 7,423.46.
The yield on 10-year German bonds decreased to 2.44%; French bonds traded lower to 3.0%; the UK gilts declined to 4.13%; and Italian bonds inched lower to 4.18%.
The euro rebounded to $1.097, the British pound at $1.268, and the U.S. dollar at 87.70 Swiss cents.
Brent crude increased $1.06 to $82.74 a barrel, and the Dutch TTF natural gas declined by €2.41 to €40.36 per MWh.
Europe Stock Movers
Real estate sector stocks advanced after bond yields declined.
Vonovia SE added 1.9% to €25.81, Segro plc increased 1% to 817.0 pence, LEG Immobilien gained 2.2% to €71.58, and Unibail-Rodamco-Westfield jumped 2.8% to €56.78.
Energy stocks were under pressure ahead of the OPEC+ meeting on Thursday amid uncertainties about the production quota agreement.
BP plc gained 0.2% to 476.15 pence, Shell PLC decreased 0.02% to 2,579.0, TotalEnergies fell 0.9% to €62.59, and Repsol SA declined 0.2% to €14.12.
U.S. Movers: Foot Locker, General Motors, Las Vegas Sands, NetApp, Petco, Phillips 66
Scott Peters
29 Nov, 2023
New York City
General Motors jumped 8.5% to $31.35 after the vehicle maker announced a $10 billion stock buyback, raised its dividend, and reinstated its annual outlook.
The company estimated net income attributable to stockholders between $9.1 billion and $9.7 billion, compared to the previous outlook of $9.3 billion and $10.7 billion.
Diluted earnings per share in the $6.52 to $7.02 range, including the estimated impact of the accelerated stock repurchase, compared to the previous outlook of $6.54 to $7.54
The vehicle maker said it plans to increase its dividend by 33%, or 3 cents per quarter, to 12 cents, beginning with the declaration in January 2024.
GM had about 1.37 billion outstanding shares prior to the announcement of the accelerated stock repurchase program.
Foot Locker jumped 8.5% to $25.85 after the specialty athletic retailer reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending in October declined 8.6% to $1.99 billion from $2.17 billion, and comparable store sales fell 8.0%.
The company attributed the decline in sales to "ongoing consumer softness," and the closure of Champ stores negatively impacted same-store sales by 3 percentage points.
Net income in the quarter decreased to $28 million from $96 million, and diluted earnings per share dropped to 30 cents from $1.01 a year ago.
The retailer tightened its full-year revenue growth estimate to between 8.0% and 8.5% from the previous guidance between 8.0% and 9.0%, and comparable sales growth to range between 8.0% and 8.5% from 8.0% to 9.0%.
The company entered into a long-term licensing agreement with two retailers in India and will commence sales operations in 2024.
During the third quarter, the company paid a quarterly dividend of $0.40 per share for a total of $38 million and did not repurchase any shares.
Petco Health and Wellness Company plunged 16.7% to $3.20 after the specialty retailer reported weaker-than-expected quarterly earnings.
Revenue in the fiscal third quarter ending in October declined 0.5% to $1.49 billion from $1.50 billion, and same-store sales were flat from a year ago but rose 4.1% from two years ago.
The company swung to a net loss of $1.2 billion from a profit of $19 million, and diluted earnings per share dropped to a loss of $4.63 from a profit of 7 cents a year ago.
During the quarter, Petco recorded a $1.2 billion non-cash goodwill impairment charge associated with goodwill originally recorded in fiscal 2015, due to the decline in the company's stock price.
The company reiterated its 2023 revenue guidance to between $6.15 billion and $6.275 billion, adjusted earnings per share to 8 cents from the previous estimate between 24 cents and 30 cents, and confirmed its capital expenditure between $215 million and $225 million.
NetApp soared 10.3% to $86.11 after the intelligent data infrastructure company reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending in October decreased 6% to $1.56 billion from $1.66 billion, and billings declined 9% to $1.45 billion from $1.60 billion a year ago.
Net income plunged to $233 million from $750 million, and diluted earnings per share dropped to $1.10 from $3.41 a year ago.
During the quarter, the company returned $403 million to stockholders through stock repurchases and cash dividends.
For the fiscal year 2024 third quarter, the company estimated revenue in the range of $1.51 billion and $1.67 billion and diluted earnings per share in the range of $1.17 billion and $1.27 billion.
For the full year 2024, the cloud infrastructure company estimated revenue to decline 2% from a year ago, gross margin of 70%, and earnings per share between $4.15 and $4.35 a share.
The company also declared a dividend of 50 cents per share to be paid on January 24, 2024, to shareholders on record on January 5, 2024.
Phillips 66 jumped 3.7% to $122.33 after the activist investor Elliott Investment Management disclosed a stake of $1 billion in the energy company in the hopes of a potential gain of 75%.
Elliott is seeking two board seat and plans to improve oil refiner and retailer's performance, according to the letter sent by the activist investor to the company's board.
Elliott is targeting operating earnings of $14 billion by 2025 by focusing on improving company's refining operations.
Las Vegas Sands Corp declined $1.07 to $45.32 after Miriam Adelson said in a filing with the financial regulator that it plans to sell $2 billion of stocks in the company.
Adelson plans to use proceeds to buy a majority stake in professional basketball franchise Maverick owned by Mark Cuban.
Rate Optimism Drives U.S. Averages Higher for Fifth Consecutive Week
Barry Adams
29 Nov, 2023
New York City
Market indexes advanced on Wall Street, and Treasury yields drifted lower on a stable rate outlook.
The S&P 500 index and the Nasdaq Composite advanced 0.2% in pre-market trading on the hopes that the Federal Reserve is more likely to hold interest rates at the end of the next policy meeting in two weeks.
The S&P 500 index has advanced about 8% and the Nasdaq Composite has gained about 11% in November, amid optimism that the interest rates are closer to peak rates.
Furthermore, the focus of the investor debate has shifted to the timing and magnitude of interest rate cuts in 2024.
The long-foreseen U.S. economic recession is now not likely to materialize in 2024, but investors worry that rates are likely to stay above 5% for most of 2024.
U.S. Indexes and Yields
The S&P 500 index edged up 0.1% to 4,561.04, and the Nasdaq Composite increased 0.2% to 14,252.36.
The yield on 2-year Treasury notes decreased to 4.69%, 10-year Treasury notes inched lower to 4.29%, and 30-year Treasury bonds edged higher to 4.47%.
Crude oil increased $1.68 to $77.89 a barrel, and natural gas prices rose 1 cent to $2.82 a thermal unit.
Gold increased $1.10 to $2,040.96 an ounce after the U.S. dollar eased.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.83.
U.S. Stock Movers
General Motors jumped 8.5% to $31.35 after the vehicle maker announced a $10 billion stock buyback, raised its dividend, and reinstated its annual outlook.
The company estimated net income attributable to stockholders between $9.1 billion and $9.7 billion, compared to the previous outlook of $9.3 billion and $10.7 billion.
Diluted earnings per share in the $6.52 to $7.02 range, including the estimated impact of the accelerated stock repurchase, compared to the previous outlook of $6.54 to $7.54
The vehicle maker said it plans to increase its dividend by 33%, or 3 cents per quarter, to 12 cents, beginning with the declaration in January 2024.
GM had about 1.37 billion outstanding shares prior to the announcement of the accelerated stock repurchase program.
Foot Locker jumped 8.5% to $25.85 after the specialty athletic retailer reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending in October declined 8.6% to $1.99 billion from $2.17 billion, and comparable store sales fell 8.0%.
The company attributed the decline in sales to "ongoing consumer softness," and the closure of Champ stores negatively impacted same-store sales by 3 percentage points.
Net income in the quarter decreased to $28 million from $96 million, and diluted earnings per share dropped to 30 cents from $1.01 a year ago.
The retailer tightened its full-year revenue growth estimate to between 8.0% and 8.5% from the previous guidance between 8.0% and 9.0%, and comparable sales growth to range between 8.0% and 8.5% from 8.0% to 9.0%.
The company entered into a long-term licensing agreement with two retailers in India and will commence sales operations in 2024.
During the third quarter, the company paid a quarterly dividend of $0.40 per share for a total of $38 million and did not repurchase any shares.
Europe Movers: BAT, Dior, Energy Stocks, Lonza Group, Real Estate Stocks
Inga Muller
29 Nov, 2023
Frankfurt
Rate-sensitive stocks in Europe advanced after bond yields fell after rate hike worries eased.
The DAX index increased 0.9% to 16,151.59, the CAC-40 index rose 0.4% to 7,281.60, and the FTSE 100 index declined 0.1% to 7,444.65.
The yield on 10-year German bonds decreased to 2.44%; French bonds traded lower to 3.0%; the UK gilts declined to 4.13%; and Italian bonds inched lower to 4.18%.
Real estate stocks advanced after bond yields declined.
Vonovia SE added 1.9% to €25.81, Segro plc increased 1% to 817.0 pence, LEG Immobilien gained 2.2% to €71.58, and Unibail-Rodamco-Westfield jumped 2.8% to €56.78.
Energy stocks were under pressure ahead of the OPEC+ meeting on Thursday amid uncertainties about the production quota agreement.
BP plc gained 0.2% to 476.15 pence, Shell PLC decreased 0.02% to 2,579.0, TotalEnergies fell 0.9% to €62.59, and Repsol SA declined 0.2% to €14.12.
Later in the day, investors are awaiting quarterly updates from British American Tobacco, Lonza Group, Christian Dior, Diageo, and Lindt & Spruengli.
European Bond Yields Eased to 3-month Lows, Inflation In Spain and German Import Prices Fall
Bridgette Randall
29 Nov, 2023
Frankfurt
European bond yields headed lower, and stocks advanced in Wednesday's trading.
Benchmark stock market indexes traded higher after inflation in Spain and Germany edged lower, and comments from the U.S. Federal Reserve suggested that interest rates may not be revised higher.
Fed Governor Christopher Wallace stressed that the central bank's policy is "well positioned" to slow the economy and lower inflation to 2%.
Governor Wallace's comments supported the view that the Federal Reserve is done raising rates for now.
Investors are awaiting the release of the PCE Price Index, an alternative measure of inflation, and the recent decline in inflation has bolstered the case for the third rate pause in a row at the end of the policy meeting ending on December 13.
In economic news, Sweden's economy contracted for the second quarter in a row ending in September, Statistics Sweden reported Wednesday.
GDP in the third quarter sequentially declined 0.3% after falling 0.8% in the second quarter. The economy contracted after household consumption contracted and inventories declined in the quarter.
The third-quarter decline was revised from the flat reading in the preliminary estimate.
From a year ago, GDP contracted 1.4%, following a 0.4% decrease in the second quarter.
German Import Price Slump Extends to Eight Months
German import prices fell for the eighth month in a row, primarily because of higher base comparisons in the previous year, the Federal Statistics Office, or Destatis, reported Wednesday.
Import prices fell by 13.0% from a year ago in October, after falling by 14.3% in the previous month.
Energy import prices fell 43.5% in October after crude oil, natural gas, and coal prices plunged from a high level a year ago due to the war in Ukraine.
Prices of durable goods declined by 0.6%, and those of non-durable consumer goods fell by 0.7%, but capital goods prices advanced by 1.8%.
Spain's Inflation Eased In November
Consumer price inflation in Spain eased to 3.2% in November from 3.5% in the previous two months, the National Statistics Institute or INE, reported Wednesday.
On a monthly basis, consumer price inflation decreased by 0.4% in November after rising by 0.3% in the previous month.
The decline in inflation was driven by the fall in energy prices and the weakness of tourist packages.
Core inflation, which excludes volatile food and energy prices, eased to 4.5% from 5.2% in the previous month.
Overall inflation has been on the decline after peaking at 10.8% in July 2022, and core inflation has been on the slide after peaking at 7.6% in February 2023.
UK Mortgage Approvals Rebounded In October
UK mortgage approvals rose in October after falling for three months in a row, the Bank of England reported on Wednesday.
Net mortgage approvals, an indicator of future borrowings, increased to 47,383 in October from 43,675 in September.
Mortgage approvals rebounded in October after falling for three months in a row.
Mortgage approvals peaked above 100,000 in early January 2021 and declined to a record low of 39,892 in January 2023, barring the pandemic era low and sub-prime crisis in 2007–08.
Europe Indexes and Yields
The DAX index increased 0.9% to 16,151.59, the CAC-40 index rose 0.4% to 7,281.60, and the FTSE 100 index declined 0.1% to 7,444.65.
The yield on 10-year German bonds decreased to 2.44%; French bonds traded lower to 3.0%; the UK gilts declined to 4.13%; and Italian bonds inched lower to 4.18%.
The euro rebounded to $1.097, the British pound at $1.268, and the U.S. dollar at 87.70 Swiss cents.
Brent crude increased $1.04 to $82.71 a barrel, and the Dutch TTF natural gas declined by €0.08 to €42.86 per MWh.
Europe Stock Movers
Real estate sector stocks advanced after bond yields declined.
Vonovia SE added 1.9% to €25.81, Segro plc increased 1% to 817.0 pence, LEG Immobilien gained 2.2% to €71.58, and Unibail-Rodamco-Westfield jumped 2.8% to €56.78.
Energy stocks were under pressure ahead of the OPEC+ meeting on Thursday amid uncertainties about the production quota agreement.
BP plc gained 0.2% to 476.15 pence, Shell PLC decreased 0.02% to 2,579.0, TotalEnergies fell 0.9% to €62.59, and Repsol SA declined 0.2% to €14.12.
Movers: Adani Group, Aster DM Healthcare, PCBL, Siemens, TCS, Tata Power, Zomato
Arun Goswami
29 Nov, 2023
Mumbai
Stocks in Mumbai advanced for the second day in a row and extended the previous week's gains.
The Sensex index increased 262.28 points to 66,436.58, and the Nifty index rose 122.95 points to 20,012.60.
On the Mumbai stock exchange, 105 stocks traded at their 52-week highs and 6 stocks traded at their 52-week lows.
Tata Power Company added 1.7% to ₹275.05 after SJVN awarded the company a 200 MW renewable energy project.
Tata Consultancy Services increased 1.1% to ₹3,509.75, and the company set its ₹17,000 crore stock buyback period between December 1 and December 7.
PCBL jumped 4.3% to ₹265.35 after the company's board approved the purchase of Pune-based specialty chemical maker Aquapharm Chemicals Pvt Ltd for ₹3,800.
Siemens declined 0.7% to ₹3,617.50, and the industrial engineering company reported its latest quarterly results.
Revenue in the quarter rose 25% from a year ago to ₹5,808 crore, but net income declined 12% to 571 crore.
Zomato added 3.8% to ₹118.10, and China-based Alipay is preparing to sell its stake in the delivery service provider.
Alipay is looking to sell a 3.4% stake in the company for about $400 million through block deals on Indian stock exchanges.
The stock sale news was first reported by Reuters.
Adani Group stocks advanced for the second day in a row after the Supreme Court concluded its hearing in the Adani-Hindenburg case.
Adani Enterprises jumped 0.5% to ₹2,435.0, Adani Ports & Special Economic Zone added 0.5% to ₹839.55, Adani Power gained 1.1% to ₹451.50, Adani Wilmar increased 2.6% to ₹357.50, and Adani Total Gas soared 13.8% to ₹732.40.
Aster DM Healthcare jumped 9.7% to ₹365.0 after the company approved the sale of its Middle East business to an entity controlled by promoters for $1.01 billion.
The deal will separate the India operation from its Middle East or Gulf Cooperation Council businesses.
In a carve-out transaction, Alpha GCC Holdings agreed to acquire the network of hospitals, pharmacies, and other medical facilities owned by Aster DM in the Middle East.
Alpha GCC is 35% controlled by the promoter group Aster DM Healthcare and 65% by funds managed by the private equity group Fajr Capital Advisors Limited.
The current market cap of the combined India and GCC businesses is valued at $2.0 billion.
The current transaction values the GCC business at an enterprise value of $1.7 billion, or ₹13,540 crore, and an equity value of $1.0 billion, or ₹8,215 crore.
Mumbai Stocks Advanced, Nifty Above 20,000
Arjun Pandit
29 Nov, 2023
Mumbai
Benchmark indexes in Mumbai opened higher, bonds held firm, crude oil prices traded sideways, and gold jumped to a seven-month high.
The Sensex index and the Nifty index advanced 0.4% and extended gains from the previous session.
In Tuesday's trading, market indexes hovered near the flatline, but in the final hour of trading, the indexes advanced to close firmly in positive territory.
In Wednesday's trading, stocks built on the previous day's gains after domestic investors continued to invest in recent winners: tech services providers, consumer goods, state-owned enterprises, and power generators and distributors.
India Indexes and Yields
The Sensex index increased 262.28 points to 66,436.58, and the Nifty index rose 122.95 points to 20,012.60.
On the Mumbai stock exchange, 105 stocks traded at their 52-week highs and 6 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds edged up to 7.253%, and the Indian rupee weakened to ₹83.27 against the U.S. dollar.
The gold price increased by 0.1% to ₹62,830 per ten grams, and silver rose by 0.2% to ₹77,170 per kilo.
Crude oil decreased by 0.3% to ₹6,390 per barrel, and natural gas rose by 3.7% to ₹233.90 per thermal unit.
India Stock Movers
Tata Power Company added 1.7% to ₹275.05 after SJVN awarded the company a 200 MW renewable energy project.
Tata Consultancy Services increased 1.1% to ₹3,509.75, and the company set its ₹17,000 crore stock buyback period between December 1 and December 7.
Siemens declined 0.7% to ₹3,617.50, and the industrial engineering company reported its latest quarterly results.
Revenue in the quarter rose 25% from a year ago to ₹5,808 crore, but net income declined 12% to 571 crore.
Zomato added 3.8% to ₹118.10, and China-based Alipay is preparing to sell its stake in the delivery service provider.
Alipay is looking to sell a 3.4% stake in the company for about $400 million through block deals on Indian stock exchanges.
The stock sale news was first reported by Reuters.
Rate Stability Hopes Support U.S. Market Indexes, Deadly Storm system Devastate Black Sea Region
Barry Adams
28 Nov, 2023
New York City
Stocks lacked direction, and investors reviewed economic data and the Fed's monetary policy stance after strong gains in the previous four weeks in a row.
Market indexes edged up after Fed Governor Christopher Wallace stressed that the central bank's policy is "well positioned" to slow the economy and lower inflation to 2%.
Governor Wallace's comments supported the view that the Federal Reserve is done raising rates for now.
Investors are awaiting the release of the PCE Price Index, an alternative measure of inflation, and the recent decline in inflation has bolstered the case for the third rate pause in a row at the end of the policy meeting ending on December 13.
Benchmark indexes edged slightly lower in Monday's trading, and investors weighed recent market gains against the earnings outlook, economic growth projections, and holiday sales.
E-commerce-linked stocks advanced after Black Friday sales jumped 7.5% to $9.8 billion from a year ago to a record high, according to the data released by Adobe Analytics.
Sales between Black Friday and Cyber Monday soared 7.7% to $10.3 billion, and sales are expected to cross $12 billion on the busiest shopping day of the year.
The S&P 500 index has jumped 19.2%, and the Nasdaq Composite has advanced 37.2% in the year so far, after the Federal Reserve paused rate hikes at the conclusion of the last two meetings.
U.S. Indexes and Yields
The S&P 500 index edged down 0.002% to 4,549.43, and the Nasdaq Composite increased 0.01% to 14,243.07.
The yield on 2-year Treasury notes increased to 4.88%, 10-year Treasury notes inched higher to 4.40%, and 30-year Treasury bonds edged higher to 4.54%.
Crude oil advanced on the hopes of a deeper production cuts from OPEC+ member nations.
Separately, Kazakhstan slashed its production at three largest oil fields by 56% after storms on the Black Sea curtailed shipment around Caspian Sea.
The storms were part of a weather system that knocked power off in several countries including Moldova, Bulgaria, Serbia, Romania and also forced evacuations in Southern Ukraine and Russia.
Oil loading was halted at the port of Novorossiysk after wind speed crossed 50 miles per hour and waves surged above 25 feet.
Crude oil increased $1.80 to $76.65 a barrel, and natural gas prices rose 1 cent to $2.95 a thermal unit.
Gold increased $27.18 to $2,040.77 an ounce after the U.S. dollar eased.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 102.81.
U.S. Stock Movers
Zscaler decreased 5.2% to $182.0 after the cybersecurity company reported strong gains in quarterly sales and operating earnings.
Stock fell after the company reiterated its fiscal year revenue outlook between $2.09 billion and $2.10 billion.
E-commerce-related stocks advanced following a surge in online shopping during the Thanksgiving holiday.
In Monday's trading, Shopify jumped as much as 4%, Amazon gained 1%, Etsy advanced 5%, and Wayfair edged slightly higher.
European Market Sentiment Weak as Inflation Worries Weigh
European stock markets were under pressure ahead of the release of inflation data in the Euro Area and leading nations of the currency union.
Market participants are anticipating overall inflation in October to range between 2.5% and 4% in the currency union, Germany, France, Spain, and Italy.
Benchmark indexes in the region declined, and inflation jitters kept market sentiment down for the second day in a row.
Overall, inflation has been steadily declining for the last eight months in a row in the Euro Area, but prices are still rising faster than the European Central Bank's target rate of 2%.
The decline in inflation is primarily reflecting lower energy prices, and despite the multiple rate hikes, inflation has been stubbornly anchored in the broader economy.
Moreover, market anxieties were high ahead of the OPEC+ meeting on Thursday, and oil-producing nations are struggling to agree on production quotas.
German Consumer Morale Stayed Weak
German consumer morale stayed weak amid a lack of progress on the broader economic recovery, the GfK Group reported Tuesday.
Germany's GfK Consumer Climate Index inched higher to -27.8 for December from a downwardly revised -27.3 in November.
Economic expectations were nearly unchanged despite the worries of high interest rates, elevated inflation, and economic uncertainties.
Sustained Improvement in French Consumer Morale
The consumer confidence in France increased to 87 in November, the statistical institute of France, INSEE, reported Tuesday.
The confidence level increased to the highest level since April 2022, a 19-month high, after consumers were more optimistic about the outlook for the standard of living and expectations for their personal financial situation; however, worries about employment rose sharply.
Eurozone Bank Lending Drops to New 8-year Low
Bank lending to households in the Euro Area rose by 0.6% from a year ago in October, the European Central Bank reported Tuesday.
The increase in lending to households was the smallest since June 2015, after demand for credit decelerated on the steady rise in interest rates.
Meanwhile, lending to corporations declined by 0.3%, the first decline since July 2015.
But overall lending to the private sector, including households and non-financial institutions, rose by 0.4% in October from 0.2% in September.
Europe Indexes and Yields
The DAX index increased 0.2% to 15,992.67, the CAC-40 index fell 0.2% to 7,250.13, and the FTSE 100 index declined 0.1% to 7,455.24.
The yield on 10-year German bonds decreased to 2.54%; French bonds traded lower to 3.10%; the UK gilts declined to 4.21%; and Italian bonds inched lower to 4.32%.
The euro rebounded to $1.095, the British pound at $1.265, and the U.S. dollar at 88.09 Swiss cents.
Brent crude increased $1.88 to $81.85 a barrel, and the Dutch TTF natural gas declined by €1.27 to €42.77 per MWh.