Market Update
Tech Stocks Rebounded After Investors Searched for Bargains In
Alexander Garcia
28 Jan, 2025
Miami
Wall Street indexes attempted a rebound a day after a sharp sell-off that saw leading artificial intelligence company stocks plunge as much as 17%.
Nvidia plunged 17%, Broadcom declined 9%, and AMD dropped 5%.
Market indexes advanced amid a growing list of worries, including U.S. trade policy uncertainty, chaotic and weak presidential administration, resurgent inflation, higher-for-longer interest rates, and the emergence of Chinese competition in the race to dominate artificial intelligence infrastructure.
The S&P 500 index edged up 0.8%, and the Nasdaq Composite advanced 1.8%, but investors remained cautious about investment by large tech companies in artificial intelligence infrastructure.
The emergence of cheaper and more cost-competitive artificial models by China's upstart DeepSeek raised doubts about the need to purchase expensive servers using the latest advanced chips for building large language models using artificial intelligence.
China's DeepSeek claims it developed its advanced chatbot for $6 million, and the app with the open-source models was most downloaded on the Apple App Store in January, displacing ChatGPT.
Investors are hoping that the latest wave of nationwide strikes organized by the new presidential administration is likely to have less impact on the labor market.
Despite the widely publicized and repeated claims by the Trump administration of more than 12 million illegal immigrants, federal government agencies managed to arrest less than 1,000 illegal immigrants in multiple raids over the last three days.
Moreover, in the first week of the new presidential administration, at least 12,000 illegal immigrants have crossed the southern border, according to several independent analysts tracking migrant flows.
Former President Biden's administration deported more than 4 million illegal immigrants, sharply higher than the 1.6 million deported under the first presidential administration of Donald Trump.
Durable Goods Orders Extended Decline In December
On the economic front, new orders for durable goods declined in four of the last five months, the U.S. Census Bureau reported Tuesday.
Durable goods orders decreased 2.2% from the previous month to $276.1 billion, and this followed a 2% decline in November.
On an annual basis and not adjusted for seasonal factors, durable goods orders dropped nearly 4% to $288.6 billion in December from $299.9 billion a year ago.
Non-defense capital goods orders declined to $95 billion from $115.2 billion, and orders excluding aircraft orders, which are considered a proxy for business spending, rose to $78.4 billion from $76.2 billion a year ago.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.8% to 6,060.54, the Nasdaq Composite edged up 1.8% to 19,686.22, and the Russell 2000 index was down 0.2% to 2,279.74.
The yield on 2-year Treasury notes edged higher to 4.22%, 10-year Treasury notes climbed to 4.56%, and 30-year Treasury bonds moved up to 4.80%.
WTI crude oil increased $1.05 to $74.21 a barrel, and natural gas prices edged lower by $0.16 to $3.54 a thermal unit.
Gold rose by $8.28 to 2,749.80 an ounce, and silver edged down by $0.03 to $30.14.
The dollar index, which weighs the US currency against a basket of foreign currencies, gained 0.57 to 107.91 and traded at a two-year high.
U.S. Stock Movers
Nvidia rebounded 3.2% to $122.38, Broadcom jumped 3.2% to $208.50, Meta Platforms advanced 1% to $665.63, and Alphabet Inc. gained 0.7% to $193.08.
Boeing Company declined 0.3% to $175.35 after the aviation company reported higher-than-expected losses and weaker-than-expected revenue in the fourth quarter.
European Markets Rebounded, Spain's Jobless Rate Dropped to New Low Since 2008
European markets advanced in Tuesday's trading, and investors awaited rate decisions from major central banks and updates on inflation and growth outlooks.
Benchmark indexes in Frankfurt, Paris, Milan, and London advanced, and investors looked forward to comments from ECB president Christine Lagarde after the two-day policy meeting ending Thursday.
Investors are also looking forward to signals for additional rate cuts and updates on inflation and economic growth amid persistent weakness in the broader economy in the region and a lack of improvement in consumer sentiment.
Germany, France, and Italy are struggling to increase their global exports amid rising competition from Asian companies and slowing economic growth in China and Japan.
Moreover, chaotic U.S. presidential administration and U.S. trade policy uncertainties are also adding to market anxieties in European trading.
Separately, Spain's economy ministry said it will raise GDP growth estimates for the current year above the target of 2.4%.
Spain's jobless rate eased to 10.6% in the fourth quarter of 2024, down from 11.2% in the previous quarter, the National Statistics Institute reported Tuesday.
The jobless rate dropped to the lowest level since the second quarter of 2008, after the number of unemployed people declined by 158,600 from the previous quarter to 2.59 million.
Meanwhile, the number of employed increased by 34,800 to 21.86 million.
Europe Indexes and Yields
The DAX index moved higher by 0.4% to 21,355.89; the CAC-40 index fell 0.2% to 7,892.81; and the FTSE 100 index advanced by 0.4% to 8,537.75.
The yield on 10-year German bonds inched higher to 2.54%, French bonds advanced to 3.28%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.65%.
The euro edged higher to $1.04; the British pound was flat at $1.24; and the U.S. dollar was higher and traded at 90.64 Swiss cents.
Brent crude increased $0.39 to $77.47 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
SAP AG gained 1% to €264 after the German software company posted strong growth in the fourth quarter ending in December.
SThree Plc dropped 5% to 270.84 pence after the London-based staffing company posted lower pre-tax earnings in the fiscal year ending in November.
Sartorius AG surged 10.8% to €231.40 after the life sciences company closed fiscal 2024 with a positive fourth quarter ending in December.
Preliminary full-year sales revenue increased 0.1% to €3.38 billion, at a profit margin of 28%.
The biotech company remains cautiously positive for its 2025 outlook, with growth expected in both divisions.
Freenet AG increased 1.1% to €29.34 after the German media company appointed Robin John Andes Harries as its new chief executive.
Netcompany AS plunged 6.5% to €41.50 after the technology company reported lower-than-expected revenue and operating earnings in the fourth quarter.
Free cash flow was significantly higher because of improvements in working capital, despite the decline in revenue.
The company's revenue growth guidance of a 5% increase fell short of market expectations of a 10% increase.
India Indexes Shake-off Rising Geopolitical Tensions, Union Budget In Focus
Stock market indexes in Mumbai rebounded in early trading on Tuesday, and investors looked ahead to the release of the Union Budget.
The Sensex and Nifty indexes rebounded more than 0.2% after struggling to advance for more than three weeks amid weak corporate earnings results, persistent outflow of foreign funds, and rising geopolitical tensions.
The Union Budget is likely to show higher spending on road and rail infrastructure development, electric power infrastructure, and greater emphasis on collecting individual taxes.
The finance ministry is also expected to provide additional incentives to accelerate renewable power infrastructure investment and the production of equipment and systems for defense and security activities.
Foreign investors continue to trim their holdings in emerging markets, including in India, following the rise of bond yields in the U.S. and the UK to 5%.
Market sentiment has been cautious amid geopolitical uncertainties and the possible application of additional tariffs on manufactured goods shipped from China and Asia as early as this week.
Chaotic and combative, the U.S. presidential administration is likely to face resistance in the months ahead, as the world's largest economy relies on other nations for consumer electronics, basic household items, transportation equipment, advanced electrical and electronic supplies, and key food products.
In trading across Asia, stock markets in mainland China are closed for a week to celebrate the Lunar New Year, and the Nikkei 225 Stock Average plunged 1.4% to 39,016.87, tracking losses in tech stocks in overnight trading in New York.
Stock Indexes and Bond Yields
The Sensex index increased by 0.4% to 75,667.28, and the Nifty index increased by 0.2% to 22,881.80.
On the Mumbai stock exchange, 14 stocks traded at their 52-week highs, and 270 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record increase and traded at 86.45 against the U.S. dollar.
The gold price increased by 0.2% to ₹79,729 per ten grams, and silver advanced by 0.02% to ₹90,244 per kilo.
Crude oil rose by 0.8% to ₹6,349 per barrel, and natural gas increased by 0.4% to ₹280.7 per thermal unit.
Stock Movers
Coal India declined 1.7% to ₹369.35 after the mining company reported a 17% decline in earnings in the December quarter following lower coal prices.
Union Bank of India rose 3.4% to ₹109.25 after the financial services company reported a 38% jump in consolidated profit from a year ago.
Canara Bank dropped 0.9% to ₹91.45 after the financial service company reported a 12% increase in profit, driven in part by a boost in non-interest income.
Federal Bank dropped 5.4% to ₹180.80 after the financial service company reported a marginal decline in the December quarter profit.
Emami Limited increased 1.3% to ₹541.80 after the personal care and healthcare company reported a 7% increase in the fiscal third quarter ending in December.
Indraprastha Gas Limited dropped 5% to ₹370.80 after the natural gas distribution company reported December quarter earnings that fell short of market expectations.
Tech Stocks Rebounded After Investors Searched for Bargains In
Alexander Garcia
28 Jan, 2025
Miami
Wall Street indexes attempted a rebound a day after a sharp sell-off that saw leading artificial intelligence company stocks plunge as much as 17%.
Nvidia plunged 17%, Broadcom declined 9%, and AMD dropped 5%.
Market indexes advanced amid a growing list of worries, including U.S. trade policy uncertainty, chaotic and weak presidential administration, resurgent inflation, higher-for-longer interest rates, and the emergence of Chinese competition in the race to dominate artificial intelligence infrastructure.
The S&P 500 index edged up 0.8%, and the Nasdaq Composite advanced 1.8%, but investors remained cautious about investment by large tech companies in artificial intelligence infrastructure.
The emergence of cheaper and more cost-competitive artificial models by China's upstart DeepSeek raised doubts about the need to purchase expensive servers using the latest advanced chips for building large language models using artificial intelligence.
China's DeepSeek claims it developed its advanced chatbot for $6 million, and the app with the open-source models was most downloaded on the Apple App Store in January, displacing ChatGPT.
Investors are hoping that the latest wave of nationwide strikes organized by the new presidential administration is likely to have less impact on the labor market.
Despite the widely publicized and repeated claims by the Trump administration of more than 12 million illegal immigrants, federal government agencies managed to arrest less than 1,000 illegal immigrants in multiple raids over the last three days.
Moreover, in the first week of the new presidential administration, at least 12,000 illegal immigrants have crossed the southern border, according to several independent analysts tracking migrant flows.
Former President Biden's administration deported more than 4 million illegal immigrants, sharply higher than the 1.6 million deported under the first presidential administration of Donald Trump.
Durable Goods Orders Extended Decline In December
On the economic front, new orders for durable goods declined in four of the last five months, the U.S. Census Bureau reported Tuesday.
Durable goods orders decreased 2.2% from the previous month to $276.1 billion, and this followed a 2% decline in November.
On an annual basis and not adjusted for seasonal factors, durable goods orders dropped nearly 4% to $288.6 billion in December from $299.9 billion a year ago.
Non-defense capital goods orders declined to $95 billion from $115.2 billion, and orders excluding aircraft orders, which are considered a proxy for business spending, rose to $78.4 billion from $76.2 billion a year ago.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.8% to 6,060.54, the Nasdaq Composite edged up 1.8% to 19,686.22, and the Russell 2000 index was down 0.2% to 2,279.74.
The yield on 2-year Treasury notes edged higher to 4.22%, 10-year Treasury notes climbed to 4.56%, and 30-year Treasury bonds moved up to 4.80%.
WTI crude oil increased $1.05 to $74.21 a barrel, and natural gas prices edged lower by $0.16 to $3.54 a thermal unit.
Gold rose by $8.28 to 2,749.80 an ounce, and silver edged down by $0.03 to $30.14.
The dollar index, which weighs the US currency against a basket of foreign currencies, gained 0.57 to 107.91 and traded at a two-year high.
U.S. Stock Movers
Nvidia rebounded 3.2% to $122.38, Broadcom jumped 3.2% to $208.50, Meta Platforms advanced 1% to $665.63, and Alphabet Inc. gained 0.7% to $193.08.
Boeing Company declined 0.3% to $175.35 after the aviation company reported higher-than-expected losses and weaker-than-expected revenue in the fourth quarter.
European Markets Rebounded, Spain's Jobless Rate Dropped to New Low Since 2008
European markets advanced in Tuesday's trading, and investors awaited rate decisions from major central banks and updates on inflation and growth outlooks.
Benchmark indexes in Frankfurt, Paris, Milan, and London advanced, and investors looked forward to comments from ECB president Christine Lagarde after the two-day policy meeting ending Thursday.
Investors are also looking forward to signals for additional rate cuts and updates on inflation and economic growth amid persistent weakness in the broader economy in the region and a lack of improvement in consumer sentiment.
Germany, France, and Italy are struggling to increase their global exports amid rising competition from Asian companies and slowing economic growth in China and Japan.
Moreover, chaotic U.S. presidential administration and U.S. trade policy uncertainties are also adding to market anxieties in European trading.
Separately, Spain's economy ministry said it will raise GDP growth estimates for the current year above the target of 2.4%.
Spain's jobless rate eased to 10.6% in the fourth quarter of 2024, down from 11.2% in the previous quarter, the National Statistics Institute reported Tuesday.
The jobless rate dropped to the lowest level since the second quarter of 2008, after the number of unemployed people declined by 158,600 from the previous quarter to 2.59 million.
Meanwhile, the number of employed increased by 34,800 to 21.86 million.
Europe Indexes and Yields
The DAX index moved higher by 0.4% to 21,355.89; the CAC-40 index fell 0.2% to 7,892.81; and the FTSE 100 index advanced by 0.4% to 8,537.75.
The yield on 10-year German bonds inched higher to 2.54%, French bonds advanced to 3.28%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.65%.
The euro edged higher to $1.04; the British pound was flat at $1.24; and the U.S. dollar was higher and traded at 90.64 Swiss cents.
Brent crude increased $0.39 to $77.47 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
SAP AG gained 1% to €264 after the German software company posted strong growth in the fourth quarter ending in December.
SThree Plc dropped 5% to 270.84 pence after the London-based staffing company posted lower pre-tax earnings in the fiscal year ending in November.
Sartorius AG surged 10.8% to €231.40 after the life sciences company closed fiscal 2024 with a positive fourth quarter ending in December.
Preliminary full-year sales revenue increased 0.1% to €3.38 billion, at a profit margin of 28%.
The biotech company remains cautiously positive for its 2025 outlook, with growth expected in both divisions.
Freenet AG increased 1.1% to €29.34 after the German media company appointed Robin John Andes Harries as its new chief executive.
Netcompany AS plunged 6.5% to €41.50 after the technology company reported lower-than-expected revenue and operating earnings in the fourth quarter.
Free cash flow was significantly higher because of improvements in working capital, despite the decline in revenue.
The company's revenue growth guidance of a 5% increase fell short of market expectations of a 10% increase.
India Indexes Shake-off Rising Geopolitical Tensions, Union Budget In Focus
Stock market indexes in Mumbai rebounded in early trading on Tuesday, and investors looked ahead to the release of the Union Budget.
The Sensex and Nifty indexes rebounded more than 0.2% after struggling to advance for more than three weeks amid weak corporate earnings results, persistent outflow of foreign funds, and rising geopolitical tensions.
The Union Budget is likely to show higher spending on road and rail infrastructure development, electric power infrastructure, and greater emphasis on collecting individual taxes.
The finance ministry is also expected to provide additional incentives to accelerate renewable power infrastructure investment and the production of equipment and systems for defense and security activities.
Foreign investors continue to trim their holdings in emerging markets, including in India, following the rise of bond yields in the U.S. and the UK to 5%.
Market sentiment has been cautious amid geopolitical uncertainties and the possible application of additional tariffs on manufactured goods shipped from China and Asia as early as this week.
Chaotic and combative, the U.S. presidential administration is likely to face resistance in the months ahead, as the world's largest economy relies on other nations for consumer electronics, basic household items, transportation equipment, advanced electrical and electronic supplies, and key food products.
In trading across Asia, stock markets in mainland China are closed for a week to celebrate the Lunar New Year, and the Nikkei 225 Stock Average plunged 1.4% to 39,016.87, tracking losses in tech stocks in overnight trading in New York.
Stock Indexes and Bond Yields
The Sensex index increased by 0.4% to 75,667.28, and the Nifty index increased by 0.2% to 22,881.80.
On the Mumbai stock exchange, 14 stocks traded at their 52-week highs, and 270 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record increase and traded at 86.45 against the U.S. dollar.
The gold price increased by 0.2% to ₹79,729 per ten grams, and silver advanced by 0.02% to ₹90,244 per kilo.
Crude oil rose by 0.8% to ₹6,349 per barrel, and natural gas increased by 0.4% to ₹280.7 per thermal unit.
Stock Movers
Coal India declined 1.7% to ₹369.35 after the mining company reported a 17% decline in earnings in the December quarter following lower coal prices.
Union Bank of India rose 3.4% to ₹109.25 after the financial services company reported a 38% jump in consolidated profit from a year ago.
Canara Bank dropped 0.9% to ₹91.45 after the financial service company reported a 12% increase in profit, driven in part by a boost in non-interest income.
Federal Bank dropped 5.4% to ₹180.80 after the financial service company reported a marginal decline in the December quarter profit.
Emami Limited increased 1.3% to ₹541.80 after the personal care and healthcare company reported a 7% increase in the fiscal third quarter ending in December.
Indraprastha Gas Limited dropped 5% to ₹370.80 after the natural gas distribution company reported December quarter earnings that fell short of market expectations.
U.S. Movers: Boeing, Nucor, Sanmina, Sysco
Scott Peters
28 Jan, 2025
New York City
Nvidia rebounded 3.2% to $122.38, Broadcom jumped 3.2% to $208.50, Meta Platforms advanced 1% to $665.63, and Alphabet Inc. gained 0.7% to $193.08.
Boeing gained 6.3% to $186.50 despite the aviation company posting weak earnings in the fourth quarter.
Revenue plunged 31% to $15.24 billion from $22.02 billion; net loss widened to $3.86 billion from $30 million, and basic loss per share soared to $5.46 from 4 cents a year ago.
The company swung to negative operating cash flow of $3.45 billion from a positive $3.38 billion a year earlier, driven by fewer additions to property, plant, and equipment.
Nucor eased 0.2% to $121.97 after the steel manufacturer posted a sharp fall in earnings and revenue in the fourth quarter.
Net sales decreased 8% to $7.08 billion from $7.71 billion; net income declined to $287 million from $785 million, and earnings per diluted share fell to $1.22 from $3.16 a year ago.
The company shipped 6,058,000 tons of steel in the fourth quarter, a 2% increase from a year earlier.
For the full year 2024, Nucor returned $2.74 billion to shareholders in the form of stock repurchases and dividends.
Sanmina Corp added 1.8% to $79.90 after the integrated advanced chip manufacturing solutions company reported earnings for the fiscal first quarter 2025 ending in December.
Net sales increased to $2.01 billion from $1.87 billion; operating income rose to $88.6 million from $87.58 million, and earnings per diluted share jumped to $1.16 from 98 cents a year ago.
Net change in cash and cash equivalents swung to $16.54 million from negative $35.98 million a year earlier, driven by purchases of property and equipment.
Looking ahead to the second quarter, the company expects GAAP earnings per diluted share to range between $1.03 and $1.13.
Sysco Corp added 0.7% to $77.40 after the food and kitchen equipment provider posted fiscal second quarter 2025 earnings ending in December.
Sales increased 4.5% to $20.15 billion from $19.29 billion; operating income jumped 1.7% to $712 million from $700 million a year ago, and earnings per diluted share were flat at 82 cents a share.
Looking ahead, the company estimated full-year sales growth between 4% and 5% and adjusted earnings per share to increase between 6% and 7%.
Sysco expanded its stock repurchase plan for the year to $1.25 billion, up from its previous plan of $1 billion.
U.S. Movers: Boeing, Nucor, Sanmina, Sysco
Scott Peters
28 Jan, 2025
New York City
Nvidia rebounded 3.2% to $122.38, Broadcom jumped 3.2% to $208.50, Meta Platforms advanced 1% to $665.63, and Alphabet Inc. gained 0.7% to $193.08.
Boeing gained 6.3% to $186.50 despite the aviation company posting weak earnings in the fourth quarter.
Revenue plunged 31% to $15.24 billion from $22.02 billion; net loss widened to $3.86 billion from $30 million, and basic loss per share soared to $5.46 from 4 cents a year ago.
The company swung to negative operating cash flow of $3.45 billion from a positive $3.38 billion a year earlier, driven by fewer additions to property, plant, and equipment.
Nucor eased 0.2% to $121.97 after the steel manufacturer posted a sharp fall in earnings and revenue in the fourth quarter.
Net sales decreased 8% to $7.08 billion from $7.71 billion; net income declined to $287 million from $785 million, and earnings per diluted share fell to $1.22 from $3.16 a year ago.
The company shipped 6,058,000 tons of steel in the fourth quarter, a 2% increase from a year earlier.
For the full year 2024, Nucor returned $2.74 billion to shareholders in the form of stock repurchases and dividends.
Sanmina Corp added 1.8% to $79.90 after the integrated advanced chip manufacturing solutions company reported earnings for the fiscal first quarter 2025 ending in December.
Net sales increased to $2.01 billion from $1.87 billion; operating income rose to $88.6 million from $87.58 million, and earnings per diluted share jumped to $1.16 from 98 cents a year ago.
Net change in cash and cash equivalents swung to $16.54 million from negative $35.98 million a year earlier, driven by purchases of property and equipment.
Looking ahead to the second quarter, the company expects GAAP earnings per diluted share to range between $1.03 and $1.13.
Sysco Corp added 0.7% to $77.40 after the food and kitchen equipment provider posted fiscal second quarter 2025 earnings ending in December.
Sales increased 4.5% to $20.15 billion from $19.29 billion; operating income jumped 1.7% to $712 million from $700 million a year ago, and earnings per diluted share were flat at 82 cents a share.
Looking ahead, the company estimated full-year sales growth between 4% and 5% and adjusted earnings per share to increase between 6% and 7%.
Sysco expanded its stock repurchase plan for the year to $1.25 billion, up from its previous plan of $1 billion.
Mild Rebound On Wall Street After Investors Reassess AI Infrastructure Spending Needs
Barry Adams
28 Jan, 2025
New York City
Wall Street indexes attempted a rebound a day after a sharp sell-off that saw leading artificial intelligence company stocks plunge as much as 17%.
Nvidia plunged 17%, Broadcom declined 9%, and AMD dropped 5%.
The S&P 500 index edged up 0.3%, and the Nasdaq Composite advanced 0.5%, but investors remained cautious about investment by large tech companies in artificial intelligence infrastructure.
The emergence of cheaper and more cost-competitive artificial models by China's upstart DeepSeek raised doubts about the need to purchase expensive servers using the latest advanced chips for building large language models using artificial intelligence.
China's DeepSeek claims it developed its advanced chatbot for $6 million, and the app with the open-source models was most downloaded on the Apple App Store in January, displacing ChatGPT.
Investors are hoping that the latest wave of nationwide strikes organized by the new presidential administration is likely to have less impact on the labor market.
Despite the widely advertised and wild claims by the Trump administration of more than 12 million illegal immigrants, federal government agencies managed to arrest less than 1,000 illegal immigrants in multiple raids over the last three days.
Moreover, in the first week of the new presidential administration, at least 12,000 illegal immigrants have crossed the southern border, according to several independent analysts tracking migrant flows.
Former President Biden's administration deported more than 4 million illegal immigrants, sharply higher than the 1.6 million deported under the first presidential administration of Donald Trump.
Durable Goods Orders Extended Decline In December
On the economic front, new orders for durable goods declined in four of the last five months, the U.S. Census Bureau reported Tuesday.
Durable goods orders decreased 2.2% from the previous month to $276.1 billion, and this followed a 2% decline in November.
On an annual basis and not adjusted for seasonal factors, durable goods orders dropped nearly 4% to $288.6 billion in December from $299.9 billion a year ago.
Non-defense capital goods orders declined to $95 billion from $115.2 billion, and orders excluding aircraft orders, which are considered a proxy for business spending, rose to $78.4 billion from $76.2 billion a year ago.
U.S. Indexes and Treasury Yields
The S&P 500 index declined 0.1% to 6,006.00, the Nasdaq Composite edged up 0.2% to 19,379.12, and the Russell 2000 index was down 0.1% to 2,281.08.
The yield on 2-year Treasury notes edged higher to 4.22%, 10-year Treasury notes climbed to 4.56%, and 30-year Treasury bonds moved up to 4.80%.
WTI crude oil increased $1.05 to $74.21 a barrel, and natural gas prices edged lower by $0.16 to $3.54 a thermal unit.
Gold rose by $8.28 to 2,749.80 an ounce, and silver edged down by $0.03 to $30.14.
The dollar index, which weighs the US currency against a basket of foreign currencies, gained 0.57 to 107.91 and traded at a two-year high.
Stock Movers
Nvidia rebounded 3.2% to $122.38, Broadcom jumped 3.2% to $208.50, Meta Platforms advanced 1% to $665.63, and Alphabet Inc. gained 0.7% to $193.08.
Boeing Company declined 0.3% to $175.35 after the aviation company reported higher-than-expected losses and weaker-than-expected revenue in the fourth quarter.
Mild Rebound On Wall Street After Investors Reassess AI Infrastructure Spending Needs
Barry Adams
28 Jan, 2025
New York City
Wall Street indexes attempted a rebound a day after a sharp sell-off that saw leading artificial intelligence company stocks plunge as much as 17%.
Nvidia plunged 17%, Broadcom declined 9%, and AMD dropped 5%.
The S&P 500 index edged up 0.3%, and the Nasdaq Composite advanced 0.5%, but investors remained cautious about investment by large tech companies in artificial intelligence infrastructure.
The emergence of cheaper and more cost-competitive artificial models by China's upstart DeepSeek raised doubts about the need to purchase expensive servers using the latest advanced chips for building large language models using artificial intelligence.
China's DeepSeek claims it developed its advanced chatbot for $6 million, and the app with the open-source models was most downloaded on the Apple App Store in January, displacing ChatGPT.
Investors are hoping that the latest wave of nationwide strikes organized by the new presidential administration is likely to have less impact on the labor market.
Despite the widely advertised and wild claims by the Trump administration of more than 12 million illegal immigrants, federal government agencies managed to arrest less than 1,000 illegal immigrants in multiple raids over the last three days.
Moreover, in the first week of the new presidential administration, at least 12,000 illegal immigrants have crossed the southern border, according to several independent analysts tracking migrant flows.
Former President Biden's administration deported more than 4 million illegal immigrants, sharply higher than the 1.6 million deported under the first presidential administration of Donald Trump.
Durable Goods Orders Extended Decline In December
On the economic front, new orders for durable goods declined in four of the last five months, the U.S. Census Bureau reported Tuesday.
Durable goods orders decreased 2.2% from the previous month to $276.1 billion, and this followed a 2% decline in November.
On an annual basis and not adjusted for seasonal factors, durable goods orders dropped nearly 4% to $288.6 billion in December from $299.9 billion a year ago.
Non-defense capital goods orders declined to $95 billion from $115.2 billion, and orders excluding aircraft orders, which are considered a proxy for business spending, rose to $78.4 billion from $76.2 billion a year ago.
Stock Movers
Nvidia rebounded 3.2% to $122.38, Broadcom jumped 3.2% to $208.50, Meta Platforms advanced 1% to $665.63, and Alphabet Inc. gained 0.7% to $193.08.
Boeing Company declined 0.3% to $175.35 after the aviation company reported higher-than-expected losses and weaker-than-expected revenue in the fourth quarter.
Europe Movers: Freenet, Netcompany, Rentokil, SAP, Sartorius, Siemens Energy, SThree
Inga Muller
28 Jan, 2025
Frankfurt
European markets struggled to stay above the flatline, and investors awaited rate decisions from major central banks. SAP revised higher its operating earnings outlook.
Siemens Energy reported better-than-expected preliminary fiscal first quarter revenue.
The DAX index moved higher by 0.4% to 21,355.89; the CAC-40 index fell 0.2% to 7,892.81; and the FTSE 100 index advanced by 0.4% to 8,537.75.
The yield on 10-year German bonds inched higher to 2.54%, French bonds advanced to 3.28%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.65%.
SAP AG gained 1% to €264 after the German software company posted strong growth in the fourth quarter ending in December.
Revenue increased 11% to €9.38 billion from €8.47 billion; operating profit rose 6% to €2.02 billion from €1.9 billion, and earnings per diluted share jumped to €1.37 from €1.05 a year ago.
Net cash flows swung to negative €551 million from €1.93 billion a year earlier as software licenses revenue decreased by 18%.
The proportion of women in executive roles increased 0.3 percentage points to 22.5%, in line with the outlook.
As part of the company’s €5 billion stock repurchase program, SAP repurchased 18.43 million shares at an average price per share of €162.46 as of December 31, totaling €3 billion.
Looking ahead to 2025, SAP expects growth in cloud and software revenue up 11% to 13% at constant currencies.
SThree Plc dropped 5% to 270.84 pence after the London-based staffing company posted lower pre-tax earnings in the fiscal year ending in November.
Revenue declined 10% to £1.49 billion from £1.66 billion; operating profit was down 12% to £369.1 million from £418.8 million, and earnings per diluted share fell to £37.4 from £42.4 a year ago.
Group net fees were down 9%, driven by declines in the Netherlands, Germany, and the U.S.
The UK-based staffing company cancelled its repurchase of 67,389 shares at 279.5 to 289 pence.
The Board has proposed to pay a final dividend of 9.2 pence per share, and with an interim dividend of 5.1 pence, will add to a total cash dividend of 14.3 pence in financial year 2024.
The final dividend was lower than 11.6 pence in the previous year, but the interim dividend was higher than 5.0 pence, totaling 16.6 pence in the financial year 2023.
The final dividend, which amounts to approximately £12.2 million, will be subject to shareholder approval and will be paid on June 6 to shareholders on record as of May 9.
In addition, the company’s non-executive director, Denise Collis, confirmed plans to retire from the board effective June 30.
Sartorius AG surged 10.8% to €231.40 after the life sciences company closed fiscal 2024 with a positive fourth quarter ending in December.
Preliminary full-year sales revenue increased 0.1% to €3.38 billion, at a profit margin of 28%.
The biotech company remains cautiously positive for its 2025 outlook, with growth expected in both divisions.
Freenet AG increased 1.1% to €29.34 after the German media company appointed Robin John Andes Harries as its new chief executive.
Netcompany AS plunged 6.5% to €41.50 after the technology company reported lower-than-expected revenue and operating earnings in the fourth quarter.
Free cash flow was significantly higher because of improvements in working capital, despite the decline in revenue.
The company's revenue growth guidance of a 5% increase fell short of market expectations of a 10% increase.
Rentokil Initial Plc gained 2% to 394.40 pence after the pest control services company posted strong results for its fourth quarter ending in December.
North America organic revenue grew 2.3%, driven by pest control services increase of 1.5%.
Group organic revenue growth in the quarter was 3.0%, driven by new satellite branches, new technician and sales pay plans, and first re-routing and re-branding activities.
The company will post preliminary results and outlook on March 6.
Siemens Energy AG surged 4.7% to €50.58 after the energy company started fiscal year 2025 with higher-than-expected free cash flow before taxes.
The company estimated to surpass the current cash flow annual estimates of up to €1 billion, and plans to update its half-year guidance.
Siemens Energy will publish earnings results for the first quarter of fiscal year 2025 on February 12.
Europe Movers: Freenet, Netcompany, SAP, Sartorius, Siemens Energy, SThree
Inga Muller
28 Jan, 2025
Frankfurt
European markets struggled to stay above the flatline, and investors awaited rate decisions from major central banks. SAP revised higher its operating earnings outlook.
Siemens Energy reported better-than-expected preliminary fiscal first quarter revenue.
The DAX index moved higher by 0.4% to 21,355.89; the CAC-40 index fell 0.2% to 7,892.81; and the FTSE 100 index advanced by 0.4% to 8,537.75.
The yield on 10-year German bonds inched higher to 2.54%, French bonds advanced to 3.28%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.65%.
SAP AG gained 1% to €264 after the German software company posted strong growth in the fourth quarter ending in December.
Revenue increased 11% to €9.38 billion from €8.47 billion; operating profit rose 6% to €2.02 billion from €1.9 billion, and earnings per diluted share jumped to €1.37 from €1.05 a year ago.
Net cash flows swung to negative €551 million from €1.93 billion a year earlier as software licenses revenue decreased by 18%.
The proportion of women in executive roles increased 0.3 percentage points to 22.5%, in line with the outlook.
As part of the company’s €5 billion stock repurchase program, SAP repurchased 18.43 million shares at an average price per share of €162.46 as of December 31, totaling €3 billion.
Looking ahead to 2025, SAP expects growth in cloud and software revenue up 11% to 13% at constant currencies.
SThree Plc dropped 5% to 270.84 pence after the London-based staffing company posted lower pre-tax earnings in the fiscal year ending in November.
Revenue declined 10% to £1.49 billion from £1.66 billion; operating profit was down 12% to £369.1 million from £418.8 million, and earnings per diluted share fell to £37.4 from £42.4 a year ago.
Group net fees were down 9%, driven by declines in the Netherlands, Germany, and the U.S.
The UK-based staffing company cancelled its repurchase of 67,389 shares at 279.5 to 289 pence.
The Board has proposed to pay a final dividend of 9.2 pence per share, and with an interim dividend of 5.1 pence, will add to a total cash dividend of 14.3 pence in financial year 2024.
The final dividend was lower than 11.6 pence in the previous year, but the interim dividend was higher than 5.0 pence, totaling 16.6 pence in the financial year 2023.
The final dividend, which amounts to approximately £12.2 million, will be subject to shareholder approval and will be paid on June 6 to shareholders on record as of May 9.
In addition, the company’s non-executive director, Denise Collis, confirmed plans to retire from the board effective June 30.
Sartorius AG surged 10.8% to €231.40 after the life sciences company closed fiscal 2024 with a positive fourth quarter ending in December.
Preliminary full-year sales revenue increased 0.1% to €3.38 billion, at a profit margin of 28%.
The biotech company remains cautiously positive for its 2025 outlook, with growth expected in both divisions.
Freenet AG increased 1.1% to €29.34 after the German media company appointed Robin John Andes Harries as its new chief executive.
Netcompany AS plunged 6.5% to €41.50 after the technology company reported lower-than-expected revenue and operating earnings in the fourth quarter.
Free cash flow was significantly higher because of improvements in working capital, despite the decline in revenue.
The company's revenue growth guidance of a 5% increase fell short of market expectations of a 10% increase.
European Markets Rebounded, Spain's Jobless Rate Dropped to New Low Since 2008
Bridgette Randall
28 Jan, 2025
London
European markets advanced in Tuesday's trading, and investors awaited rate decisions from major central banks and updates on inflation and growth outlooks.
Benchmark indexes in Frankfurt, Paris, Milan, and London advanced, and investors looked forward to comments from ECB president Christine Lagarde after the two-day policy meeting ending Thursday.
Investors are also looking forward to signals for additional rate cuts and updates on inflation and economic growth amid persistent weakness in the broader economy in the region and a lack of improvement in consumer sentiment.
Germany, France, and Italy are struggling to increase their global exports amid rising competition from Asian companies and slowing economic growth in China and Japan.
Moreover, chaotic U.S. presidential administration and U.S. trade policy uncertainties are also adding to market anxieties in European trading.
Separately, Spain's economy ministry said it will raise GDP growth estimates for the current year above the target of 2.4%.
Spain's jobless rate eased to 10.6% in the fourth quarter of 2024, down from 11.2% in the previous quarter, the National Statistics Institute reported Tuesday.
The jobless rate dropped to the lowest level since the second quarter of 2008, after the number of unemployed people declined by 158,600 from the previous quarter to 2.59 million.
Meanwhile, the number of employed increased by 34,800 to 21.86 million.
Europe Indexes and Yields
The DAX index moved higher by 0.4% to 21,355.89; the CAC-40 index fell 0.2% to 7,892.81; and the FTSE 100 index advanced by 0.4% to 8,537.75.
The yield on 10-year German bonds inched higher to 2.54%, French bonds advanced to 3.28%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.65%.
The euro edged higher to $1.04; the British pound was flat at $1.24; and the U.S. dollar was higher and traded at 90.64 Swiss cents.
Brent crude increased $0.39 to $77.47 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
SAP AG gained 1% to €264 after the German software company posted strong growth in the fourth quarter ending in December.
SThree Plc dropped 5% to 270.84 pence after the London-based staffing company posted lower pre-tax earnings in the fiscal year ending in November.
Sartorius AG surged 10.8% to €231.40 after the life sciences company closed fiscal 2024 with a positive fourth quarter ending in December.
Preliminary full-year sales revenue increased 0.1% to €3.38 billion, at a profit margin of 28%.
The biotech company remains cautiously positive for its 2025 outlook, with growth expected in both divisions.
Freenet AG increased 1.1% to €29.34 after the German media company appointed Robin John Andes Harries as its new chief executive.
Netcompany AS plunged 6.5% to €41.50 after the technology company reported lower-than-expected revenue and operating earnings in the fourth quarter.
Free cash flow was significantly higher because of improvements in working capital, despite the decline in revenue.
The company's revenue growth guidance of a 5% increase fell short of market expectations of a 10% increase.
European Markets Rebounded, Spain's Jobless Rate Dropped to New Low Since 2008
Bridgette Randall
28 Jan, 2025
London
European markets advanced in Tuesday's trading, and investors awaited rate decisions from major central banks and updates on inflation and growth outlooks.
Benchmark indexes in Frankfurt, Paris, Milan, and London advanced, and investors looked forward to comments from ECB president Christine Lagarde after the two-day policy meeting ending Thursday.
Investors are also looking forward to signals for additional rate cuts and updates on inflation and economic growth amid persistent weakness in the broader economy in the region and a lack of improvement in consumer sentiment.
Germany, France, and Italy are struggling to increase their global exports amid rising competition from Asian companies and slowing economic growth in China and Japan.
Moreover, chaotic U.S. presidential administration and U.S. trade policy uncertainties are also adding to market anxieties in European trading.
Separately, Spain's economy ministry said it will raise GDP growth estimates for the current year above the target of 2.4%.
Spain's jobless rate eased to 10.6% in the fourth quarter of 2024, down from 11.2% in the previous quarter, the National Statistics Institute reported Tuesday.
The jobless rate dropped to the lowest level since the second quarter of 2008, after the number of unemployed people declined by 158,600 from the previous quarter to 2.59 million.
Meanwhile, the number of employed increased by 34,800 to 21.86 million,
Europe Indexes and Yields
The DAX index moved higher by 0.4% to 21,355.89; the CAC-40 index fell 0.2% to 7,892.81; and the FTSE 100 index advanced by 0.4% to 8,537.75.
The yield on 10-year German bonds inched higher to 2.54%, French bonds advanced to 3.28%, the UK gilts moved up to 4.60%, and Italian bonds edged higher to 3.65%.
The euro edged higher to $1.04; the British pound was flat at $1.24; and the U.S. dollar was higher and traded at 90.64 Swiss cents.
Brent crude increased $0.39 to $77.47 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.
Europe Stock Movers
SAP AG gained 1% to €264 after the German software company posted strong growth in the fourth quarter ending in December.
SThree Plc dropped 5% to 270.84 pence after the London-based staffing company posted lower pre-tax earnings in the fiscal year ending in November.
Sartorius AG surged 10.8% to €231.40 after the life sciences company closed fiscal 2024 with a positive fourth quarter ending in December.
Preliminary full-year sales revenue increased 0.1% to €3.38 billion, at a profit margin of 28%.
The biotech company remains cautiously positive for its 2025 outlook, with growth expected in both divisions.
Freenet AG increased 1.1% to €29.34 after the German media company appointed Robin John Andes Harries as its new chief executive.
Netcompany AS plunged 6.5% to €41.50 after the technology company reported lower-than-expected revenue and operating earnings in the fourth quarter.
Free cash flow was significantly higher because of improvements in working capital, despite the decline in revenue.
The company's revenue growth guidance of a 5% increase fell short of market expectations of a 10% increase.
India Movers: Adani Total Gas, Adani Wilmar, Canara Bank, Coal India, Emami, Federal Bank, Tata Steel, Union Bank
Arun Goswami
28 Jan, 2025
Mumbai
The Sensex and Nifty indexes advanced in early trading after extending losses in three previous weeks amid mixed corporate results.
Coal India, Emami, Canara Bank, Union Bank, and Federal Bank were in focus after releasing their quarterly results.
The Sensex index increased by 0.4% to 75,667.28, and the Nifty index increased by 0.2% to 22,881.80.
On the Mumbai stock exchange, 14 stocks traded at their 52-week highs, and 270 stocks traded at their 52-week lows.
Coal India declined 1.7% to ₹369.35 after the mining company reported a 17% decline in earnings in the December quarter following lower coal prices.
Consolidated revenue in the December quarter decreased to ₹37,923 crore from ₹38,357.2 crore, net income declined to ₹8,491.2 crore from ₹10,291.7 crore, and diluted earnings per share fell to ₹13.80 from ₹16.64 a year ago.
Union Bank of India rose 3.4% to ₹109.25 after the financial services company reported a 38% jump in consolidated profit from a year ago.
Consolidated revenue in the December quarter advanced to ₹27,111.8 crore from ₹25,520.9 crore, net income jumped to ₹4,623 crore from ₹3,625.4 crore, and diluted earnings per share rose to ₹6.03 from ₹4.84 a year ago.
Canara Bank dropped 0.9% to ₹91.45 after the financial service company reported a 12% increase in profit, driven in part by a boost in non-interest income.
Consolidated revenue in the December quarter increased to ₹37,429.9 crore from ₹35,630.2 crore, after-tax profit rose to ₹4,161 crore from ₹3,738.3 crore, and diluted earnings per share dropped to ₹4.65 from ₹20.89 a year ago.
Earnings per share would be ₹23.25 and ₹68.75 without considering stock split for the quarter and nine months ending in December respectively and ₹23.10 for the quarter ending in September.
Federal Bank dropped 5.4% to ₹180.80 after the financial service company reported a marginal decline in the December quarter profit.
Emami Limited increased 1.3% to ₹541.80 after the personal care and healthcare company reported a 7% increase in the fiscal third quarter ending in December.
Consolidated revenue in the December quarter increased to ₹1,064.4 crore from ₹1,013 crore, after-tax profit rose to ₹279 crore from ₹260.7 crore, and diluted earnings per share jumped to ₹6.39 from ₹5.92 a year ago.
Indraprastha Gas Limited dropped 5% to ₹370.80 after the natural gas distribution company reported December quarter earnings that fell short of market expectations.
Tata Steel Ltd. increased 0.8% to ₹127.35 despite the company reporting a decline in revenue and earnings in the fiscal third quarter.
Consolidated revenue in the December quarter decreased to ₹53,869.3 crore from ₹55,539.8 crore, net income dropped to ₹295.5 crore from ₹522.1 crore, and diluted earnings per share fell to 26 paisa from 42 paisa a year ago.
Adani Total Gas Ltd. plunged 3.5% to ₹619.55 after the company reported a decline in profit in the December quarter.
Consolidated revenue in the December quarter advanced to ₹1,407.8 crore from ₹1,256.4 crore, after-tax profit fell to ₹142.4 crore from ₹176.6 crore, and diluted earnings per share dropped to ₹1.29 from ₹1.61 a year ago.
Consolidated revenue in the December quarter declined to ₹4,195 crore from ₹6,993.5 crore, net income fell to ₹944.7 crore from ₹1,063.2crore, and diluted earnings per share decreased to ₹3.81 from ₹4.22 a year ago.
Indian Oil Corporation Limited advanced 0.7% to ₹125.10 despite the company reporting a 78% declined from a year ago in the December quarter in net income.
Consolidated revenue in the December quarter decreased to ₹2,20,543.9 crore from ₹2,28,160.3 crore, after-tax profit dropped to ₹2,047.35 crore from ₹9,220.85 crore, and diluted earnings per share fell t ₹1.54 from ₹6.56 a year ago
Adani Wilmar Limited decreased 0.1% to ₹261.80 despite the company reporting a sharp increase in revenue and earnings in the December quarter.
Consolidated revenue in the December quarter increased to ₹16,926 crore from ₹12,887.21 crore, net income jumped to ₹410.9 crore from ₹200.9 crore, and diluted earnings per share rose to ₹3.16 from ₹1.55 a year ago.
India Movers: Adani Total Gas, Adani Wilmar, Canara Bank, Coal India, Emami, Federal Bank, Tata Steel, Union Bank
Arun Goswami
28 Jan, 2025
Mumbai
The Sensex and Nifty indexes advanced in early trading after extending losses in three previous weeks amid mixed corporate results.
Coal India, Emami, Canara Bank, Union Bank, and Federal Bank were in focus after releasing their quarterly results.
The Sensex index increased by 0.4% to 75,667.28, and the Nifty index increased by 0.2% to 22,881.80.
On the Mumbai stock exchange, 14 stocks traded at their 52-week highs, and 270 stocks traded at their 52-week lows.
Coal India declined 1.7% to ₹369.35 after the mining company reported a 17% decline in earnings in the December quarter following lower coal prices.
Consolidated revenue in the December quarter decreased to ₹37,923 crore from ₹38,357.2 crore, net income declined to ₹8,491.2 crore from ₹10,291.7 crore, and diluted earnings per share fell to ₹13.80 from ₹16.64 a year ago.
Union Bank of India rose 3.4% to ₹109.25 after the financial services company reported a 38% jump in consolidated profit from a year ago.
Consolidated revenue in the December quarter advanced to ₹27,111.8 crore from ₹25,520.9 crore, net income jumped to ₹4,623 crore from ₹3,625.4 crore, and diluted earnings per share rose to ₹6.03 from ₹4.84 a year ago.
Canara Bank dropped 0.9% to ₹91.45 after the financial service company reported a 12% increase in profit, driven in part by a boost in non-interest income.
Consolidated revenue in the December quarter increased to ₹37,429.9 crore from ₹35,630.2 crore, after-tax profit rose to ₹4,161 crore from ₹3,738.3 crore, and diluted earnings per share dropped to ₹4.65 from ₹20.89 a year ago.
Earnings per share would be ₹23.25 and ₹68.75 without considering stock split for the quarter and nine months ending in December respectively and ₹23.10 for the quarter ending in September.
Federal Bank dropped 5.4% to ₹180.80 after the financial service company reported a marginal decline in the December quarter profit.
Emami Limited increased 1.3% to ₹541.80 after the personal care and healthcare company reported a 7% increase in the fiscal third quarter ending in December.
Consolidated revenue in the December quarter increased to ₹1,064.4 crore from ₹1,013 crore, after-tax profit rose to ₹279 crore from ₹260.7 crore, and diluted earnings per share jumped to ₹6.39 from ₹5.92 a year ago.
Indraprastha Gas Limited dropped 5% to ₹370.80 after the natural gas distribution company reported December quarter earnings that fell short of market expectations.
Tata Steel Ltd. increased 0.8% to ₹127.35 despite the company reporting a decline in revenue and earnings in the fiscal third quarter.
Consolidated revenue in the December quarter decreased to ₹53,869.3 crore from ₹55,539.8 crore, net income dropped to ₹295.5 crore from ₹522.1 crore, and diluted earnings per share fell to 26 paisa from 42 paisa a year ago.
Adani Total Gas Ltd. plunged 3.5% to ₹619.55 after the company reported a decline in profit in the December quarter.
Consolidated revenue in the December quarter advanced to ₹1,407.8 crore from ₹1,256.4 crore, after-tax profit fell to ₹142.4 crore from ₹176.6 crore, and diluted earnings per share dropped to ₹1.29 from ₹1.61 a year ago.
Consolidated revenue in the December quarter declined to ₹4,195 crore from ₹6,993.5 crore, net income fell to ₹944.7 crore from ₹1,063.2crore, and diluted earnings per share decreased to ₹3.81 from ₹4.22 a year ago.
Indian Oil Corporation Limited advanced 0.7% to ₹125.10 despite the company reporting a 78% declined from a year ago in the December quarter in net income.
Consolidated revenue in the December quarter decreased to ₹2,20,543.9 crore from ₹2,28,160.3 crore, after-tax profit dropped to ₹2,047.35 crore from ₹9,220.85 crore, and diluted earnings per share fell t ₹1.54 from ₹6.56 a year ago
Adani Wilmar Limited decreased 0.1% to ₹261.80 despite the company reporting a sharp increase in revenue and earnings in the December quarter.
Consolidated revenue in the December quarter increased to ₹16,926 crore from ₹12,887.21 crore, net income jumped to ₹410.9 crore from ₹200.9 crore, and diluted earnings per share rose to ₹3.16 from ₹1.55 a year ago.
Tech Stocks Extended Losses After Investors Reassessed Demand Outlook for Expensive AI Servers
Alexander Garcia
27 Jan, 2025
Miami
Wall Street indexes accelerated losses in Monday's trading after artificial intelligence-related stocks sharpened losses in the session.
The S&P 500 index and the Nasdaq Composite declined as much as 2% in trading after a China-based startup released an open-source artificial intelligence model substantially cheaper than available in the U.S.
China-based startup DeepSeek's artificial intelligence models passed all key metrics in competitive tests conducted by independent analysts.
In the week ahead, investors are looking to review a flood of earnings from leading global corporations, and about 400 companies are scheduled to release earnings this week.
This week, Microsoft, Meta, Apple, Tesla, IBM, Visa, Mastercard, Exxon Mobil, Blackstone, and Caterpillar are scheduled to release their earnings.
On Thursday, the U.S. Federal Reserve is set to hold the federal funds rate steady between 4.25% and 4.50% after three consecutive rate cuts in 2024.
Investors are also looking forward to the preliminary estimate of GDP growth rate in the fourth quarter.
Last week, Wall Street and global indexes extended gains for the second week in a row amid rate-cut expectations and mixed but positive corporate earnings.
Despite the elevated U.S. service sector inflation, investors continue to believe that additional rate cuts are likely in the near future, driving the benchmark indexes to new highs.
Rate cut expectations dominated investor sentiment in Europe, and in China investors are hoping that Beijing will soon announce its plan to implement fiscal stimulus.
U.S. Indexes and Treasury Yields
The S&P 500 index declined 1.8% to 5,991.30, the Nasdaq Composite edged down 3.2% to 19,304.69, and the Russell 2000 index was down 1.1% to 2,280.98.
The yield on 2-year Treasury notes edged lower to 4.19%, 10-year Treasury notes dropped to 4.55%, and 30-year Treasury bonds inched down to 4.75%.
WTI crude oil decreased $0.31 to $74.33 a barrel, and natural gas prices edged lower by $0.31 to $3.72 a thermal unit.
Gold declined by $17.46 to 2,752.71 an ounce, and silver edged down by $0.18 to $30.39.
The dollar index, which weighs the US currency against a basket of foreign currencies, eased by 0.30 to 107.14 and traded at a two-year high.
U.S. Stock Movers
Nvidia dropped 11% to $125.49, Broadcom fell 11% to $217.86, and AMD declined 4.2% to $117.80.
Microsoft fell 4.2% to $424.0, Alphabet declined 3.5% to $194.25, and Meta Platforms eased 4.5% to $624.73.
European Markets Dropped 1% Following Sharp Losses In Artificial Intelligence-Linked Stocks
Stock market indexes in Europe dropped sharply following losses in artificial intelligence-related stocks, and investors awaited decisions from major central banks this week.
Benchmark indexes in Paris, Frankfurt, Milan, and London dropped as much as 2% before recovering to losses between 0.5% and 1% after artificial intelligence-linked stocks plunged more than 5% amid rising competition from China.
On Thursday, the European Central Bank is widely anticipated to trim its key lending rates amid weak economic outlook and weakening inflationary pressures.
The European Central Bank is expected to lower its policy rates by 25 basis points, but Sweden’s Riksbank may pause after trimming rates three times in a row.
Investors are also awaiting the release of GDP growth data in the eurozone, Germany, France, and Italy.
Moreover, Germany’s retail sales and Switzerland’s foreign trade data are likely to garner headlines next week.
On Thursday, the U.S. Federal Reserve is likely to hold rates at the end of its two-day policy meeting, as policymakers struggle to balance strong economic growth with resurgent inflationary pressures.
In addition, investors are looking forward to the release of corporate results from about 80 companies in Europe, including updates from LVMH, SAP, ASML, Lonza Group, Roche, Shell, ABB, Alas Copco, and Logitech.
Europe Indexes and Yields
The DAX index moved lower by 1.4% to 21,102.92; the CAC-40 index fell 1.1% to 7,849.02; and the FTSE 100 index eased by 0.2% to 8,487.62.
The yield on 10-year German bonds inched lower to 2.49%, French bonds declined to 3.26%, the UK gilts fell to 4.64%, and Italian bonds edged lower to 3.62%.
The euro was flat at $1.05; the British pound was flat at $1.24; and the U.S. dollar was higher at 90.59 Swiss cents.
Brent crude decreased $0.27 to $78.23 a barrel, and the Dutch TTF natural gas was flat at €49.91 per MWh.
Europe Stock Movers
Ryanair Holdings Plc gained 0.6% to €19.81 after the Irish airline carrier posted a 9% increase in passenger traffic at marginally higher fares supported by the stronger Christmas and New Year bookings.
Artificial intelligence-related stocks fell sharply after the China-based DeepSeek's models were deemed to be better and cheaper than the ones available from the U.S.-based technology companies.
ASML Holding dropped 9% to €632.80, STMicroelectronics declined 2.2% to €23.79, and Siemens AG decreased 4.6% to €198.70.
Japan's Indexes Struggled After Weakness In Tech Stocks
Stock market indexes in Tokyo erased early gains after the weakness in tech stocks weighed on broader market sentiment.
The Nikkei 225 stock average decreased 0.9%, and the broader TOPIX increased 0.3%, as investors reviewed the latest rate decisions by the Bank of Japan.
The Japanese yen traded around 155.85 against the U.S. dollar after Bank of Japan Governor Kazuo Ueda signaled possible additional rate cuts in the near future.
Policymakers also revised the inflation outlook higher for the current and next fiscal years, indicating that they are ready to raise rates if necessary.
Investors are looking ahead to a flood of economic updates later in the week, and the Tokyo-area consumer price inflation is also on tap.
Industrial output, jobless rate, retail sales, and housing starts data are set to be released at the end of the week, and investors are looking for clues about the health of the economy.
Japan's GDP in the current fiscal year ending in March is expected to grow less than 0.5% and rise about 1% in the fiscal year ending in March 2026.
Asian markets lacked direction amid ongoing policy chaos in the U.S. and the lack of political will to lower huge federal government debt, which is increasingly financed by foreign investors.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 0.9% to 39,565.80, and the broader TOPIX increased 0.3% to 2,758.07.
Tokyo Electron decreased 4.9% to ¥25,805.0, Advantest Corp. dropped 8.6% to ¥9,185.0, and Disco Corp. declined 1.8% to ¥46,580.0.
Seven & I Holdings increased 0.3% to ¥2,435.0, Isetan Mitsukoshi rose 4.9% to ¥2,588.50, J. Front Retailing gained 3.3% to ¥2,079.50, and Fast Retailing advanced 0.6% to ¥50,000.0.
Mitsubishi UFJ Financial Group added 0.7% to ¥1,921.00, Sumitomo Mitsui Financial Group gained 1.9% to ¥3,808.00, and Mizuho Financial added 1.6% to ¥4,049.0.
China Business Activities Growth Slowed Ahead of Lunar New Year Holidays
Financial markets in China and Hong Kong advanced after the top financial regulator announced additional measures to shore up faltering stock market confidence.
The Hang Seng index increased 1%, and the mainland-focused CSI 300 index advanced a fraction.
The China Securities Regulatory Commission announced measures to facilitate investment in index-linked funds and also expanded its list of insurance companies required to invest a portion of premiums on new policies in onshore stock markets.
Twin moves by the regulatory agency are part of a plan to arrest the further decline in financial markets after five years of weakness and increase the attractiveness of Chinese stocks to foreign investors.
Market sentiment was cautious after the latest official survey showed a slowdown in growth in activities in the manufacturing and services sector in January.
The official Manufacturing Purchasing Managers' Index decreased to 49.1 from 50.1 in December, indicating a slowdown ahead of the Lunar New Year holidays.
China's official non-manufacturing Purchasing Managers' Index fell to 50.2 in January from a nine-month high of 52.2 in December.
Financial markets in China will remain closed from January 28 to February 4, and in Hong Kong, they will close from midday January 28 to January 31.
The National Bureau of Statistics on Monday released two surveys indicating the updates in business activities.
China Stock Movers
The Hang Seng index increased 1% to 20,257.34, and the CSI 300 index advanced 0.1% to 3,836.30.
Beijing Haibo Sichuang Technology soared more than 230% to 61.43 yuan in Shanghai after the electrochemical storage company completed its initial public offering.
The storage company sold 44.4 million shares and raised 783 million yuan.
Yalian Machinery surged 180% to 54.14 yuan in Shenzhen after the wood-based panel machinery company priced its share at 19.08 yuan in an initial public offering.
Yalian sold 21.8 million shares and raised 416 million yuan and listed its shares on the Shenzhen Stock Exchange.
Tech Stocks Extended Losses After Investors Reassessed Demand Outlook for Expensive AI Servers
Alexander Garcia
27 Jan, 2025
Miami
Wall Street indexes accelerated losses in Monday's trading after artificial intelligence-related stocks sharpened losses in the session.
The S&P 500 index and the Nasdaq Composite declined as much as 2% in trading after a China-based startup released an open-source artificial intelligence model substantially cheaper than available in the U.S.
China-based startup DeepSeek's artificial intelligence models passed all key metrics in competitive tests conducted by independent analysts.
In the week ahead, investors are looking to review a flood of earnings from leading global corporations, and about 400 companies are scheduled to release earnings this week.
This week, Microsoft, Meta, Apple, Tesla, IBM, Visa, Mastercard, Exxon Mobil, Blackstone, and Caterpillar are scheduled to release their earnings.
On Thursday, the U.S. Federal Reserve is set to hold the federal funds rate steady between 4.25% and 4.50% after three consecutive rate cuts in 2024.
Investors are also looking forward to the preliminary estimate of GDP growth rate in the fourth quarter.
Last week, Wall Street and global indexes extended gains for the second week in a row amid rate-cut expectations and mixed but positive corporate earnings.
Despite the elevated U.S. service sector inflation, investors continue to believe that additional rate cuts are likely in the near future, driving the benchmark indexes to new highs.
Rate cut expectations dominated investor sentiment in Europe, and in China investors are hoping that Beijing will soon announce its plan to implement fiscal stimulus.
U.S. Indexes and Treasury Yields
The S&P 500 index declined 1.8% to 5,991.30, the Nasdaq Composite edged down 3.2% to 19,304.69, and the Russell 2000 index was down 1.1% to 2,280.98.
The yield on 2-year Treasury notes edged lower to 4.19%, 10-year Treasury notes dropped to 4.55%, and 30-year Treasury bonds inched down to 4.75%.
WTI crude oil decreased $0.31 to $74.33 a barrel, and natural gas prices edged lower by $0.31 to $3.72 a thermal unit.
Gold declined by $17.46 to 2,752.71 an ounce, and silver edged down by $0.18 to $30.39.
The dollar index, which weighs the US currency against a basket of foreign currencies, eased by 0.30 to 107.14 and traded at a two-year high.
U.S. Stock Movers
Nvidia dropped 11% to $125.49, Broadcom fell 11% to $217.86, and AMD declined 4.2% to $117.80.
Microsoft fell 4.2% to $424.0, Alphabet declined 3.5% to $194.25, and Meta Platforms eased 4.5% to $624.73.
European Markets Dropped 1% Following Sharp Losses In Artificial Intelligence-Linked Stocks
Stock market indexes in Europe dropped sharply following losses in artificial intelligence-related stocks, and investors awaited decisions from major central banks this week.
Benchmark indexes in Paris, Frankfurt, Milan, and London dropped as much as 2% before recovering to losses between 0.5% and 1% after artificial intelligence-linked stocks plunged more than 5% amid rising competition from China.
On Thursday, the European Central Bank is widely anticipated to trim its key lending rates amid weak economic outlook and weakening inflationary pressures.
The European Central Bank is expected to lower its policy rates by 25 basis points, but Sweden’s Riksbank may pause after trimming rates three times in a row.
Investors are also awaiting the release of GDP growth data in the eurozone, Germany, France, and Italy.
Moreover, Germany’s retail sales and Switzerland’s foreign trade data are likely to garner headlines next week.
On Thursday, the U.S. Federal Reserve is likely to hold rates at the end of its two-day policy meeting, as policymakers struggle to balance strong economic growth with resurgent inflationary pressures.
In addition, investors are looking forward to the release of corporate results from about 80 companies in Europe, including updates from LVMH, SAP, ASML, Lonza Group, Roche, Shell, ABB, Alas Copco, and Logitech.
Europe Indexes and Yields
The DAX index moved lower by 1.4% to 21,102.92; the CAC-40 index fell 1.1% to 7,849.02; and the FTSE 100 index eased by 0.2% to 8,487.62.
The yield on 10-year German bonds inched lower to 2.49%, French bonds declined to 3.26%, the UK gilts fell to 4.64%, and Italian bonds edged lower to 3.62%.
The euro was flat at $1.05; the British pound was flat at $1.24; and the U.S. dollar was higher at 90.59 Swiss cents.
Brent crude decreased $0.27 to $78.23 a barrel, and the Dutch TTF natural gas was flat at €49.91 per MWh.
Europe Stock Movers
Ryanair Holdings Plc gained 0.6% to €19.81 after the Irish airline carrier posted a 9% increase in passenger traffic at marginally higher fares supported by the stronger Christmas and New Year bookings.
Artificial intelligence-related stocks fell sharply after the China-based DeepSeek's models were deemed to be better and cheaper than the ones available from the U.S.-based technology companies.
ASML Holding dropped 9% to €632.80, STMicroelectronics declined 2.2% to €23.79, and Siemens AG decreased 4.6% to €198.70.
Japan's Indexes Struggled After Weakness In Tech Stocks
Stock market indexes in Tokyo erased early gains after the weakness in tech stocks weighed on broader market sentiment.
The Nikkei 225 stock average decreased 0.9%, and the broader TOPIX increased 0.3%, as investors reviewed the latest rate decisions by the Bank of Japan.
The Japanese yen traded around 155.85 against the U.S. dollar after Bank of Japan Governor Kazuo Ueda signaled possible additional rate cuts in the near future.
Policymakers also revised the inflation outlook higher for the current and next fiscal years, indicating that they are ready to raise rates if necessary.
Investors are looking ahead to a flood of economic updates later in the week, and the Tokyo-area consumer price inflation is also on tap.
Industrial output, jobless rate, retail sales, and housing starts data are set to be released at the end of the week, and investors are looking for clues about the health of the economy.
Japan's GDP in the current fiscal year ending in March is expected to grow less than 0.5% and rise about 1% in the fiscal year ending in March 2026.
Asian markets lacked direction amid ongoing policy chaos in the U.S. and the lack of political will to lower huge federal government debt, which is increasingly financed by foreign investors.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 0.9% to 39,565.80, and the broader TOPIX increased 0.3% to 2,758.07.
Tokyo Electron decreased 4.9% to ¥25,805.0, Advantest Corp. dropped 8.6% to ¥9,185.0, and Disco Corp. declined 1.8% to ¥46,580.0.
Seven & I Holdings increased 0.3% to ¥2,435.0, Isetan Mitsukoshi rose 4.9% to ¥2,588.50, J. Front Retailing gained 3.3% to ¥2,079.50, and Fast Retailing advanced 0.6% to ¥50,000.0.
Mitsubishi UFJ Financial Group added 0.7% to ¥1,921.00, Sumitomo Mitsui Financial Group gained 1.9% to ¥3,808.00, and Mizuho Financial added 1.6% to ¥4,049.0.
China Business Activities Growth Slowed Ahead of Lunar New Year Holidays
Financial markets in China and Hong Kong advanced after the top financial regulator announced additional measures to shore up faltering stock market confidence.
The Hang Seng index increased 1%, and the mainland-focused CSI 300 index advanced a fraction.
The China Securities Regulatory Commission announced measures to facilitate investment in index-linked funds and also expanded its list of insurance companies required to invest a portion of premiums on new policies in onshore stock markets.
Twin moves by the regulatory agency are part of a plan to arrest the further decline in financial markets after five years of weakness and increase the attractiveness of Chinese stocks to foreign investors.
Market sentiment was cautious after the latest official survey showed a slowdown in growth in activities in the manufacturing and services sector in January.
The official Manufacturing Purchasing Managers' Index decreased to 49.1 from 50.1 in December, indicating a slowdown ahead of the Lunar New Year holidays.
China's official non-manufacturing Purchasing Managers' Index fell to 50.2 in January from a nine-month high of 52.2 in December.
Financial markets in China will remain closed from January 28 to February 4, and in Hong Kong, they will close from midday January 28 to January 31.
The National Bureau of Statistics on Monday released two surveys indicating the updates in business activities.
China Stock Movers
The Hang Seng index increased 1% to 20,257.34, and the CSI 300 index advanced 0.1% to 3,836.30.
Beijing Haibo Sichuang Technology soared more than 230% to 61.43 yuan in Shanghai after the electrochemical storage company completed its initial public offering.
The storage company sold 44.4 million shares and raised 783 million yuan.
Yalian Machinery surged 180% to 54.14 yuan in Shenzhen after the wood-based panel machinery company priced its share at 19.08 yuan in an initial public offering.
Yalian sold 21.8 million shares and raised 416 million yuan and listed its shares on the Shenzhen Stock Exchange.
U.S. Movers: American Airlines, Brown & Brown, Intuitive Surgical, SoFi Technologies, Texas Instruments, Verizon, WNS Holdings
Scott Peters
27 Jan, 2025
New York City
WNS Holdings Ltd surged 2.82% to $62.41 after the Mumbai and New York-based business process management company posted upbeat third-quarter 2025 earnings ending in December.
Revenue increased 2.1% to $333 million from $326.2 million; profit rose to $48.6 million from $41.5 million, and earnings per diluted share edged up to $1.07 from 85 cents from a year ago.
Investments in the quarter declined to $129.5 million from $156.5 million a year ago.
Cash from operations increased to $101.6 million from $87.4 million a year earlier, as the company added 7 new clients and expanded 52 existing contracts.
American Airlines Group eased 2.30% to $16.57 after the company posted higher operating income in the fourth quarter ending in December.
Revenue increased to $1.13 billion from $656 million, net income surged to $590 million from $19 million, and earnings per diluted share rose to 84 cents from 3 cents a year ago.
The airline company expects to generate over $2 billion in free cash flow in 2025, and to reduce total debt to below $35 billion by the end of 2027, a full year ahead of plan.
Looking ahead, American Airlines expects next quarter revenue to increase between 3% to 5%, while full year 2025 revenue to advance by 4.5% to 7.5% from a year ago.
Texas Instruments gained 0.4% to $186.24 after the advanced semiconductor company posted declining results for its fourth-quarter ending in December.
Revenue dropped 2% to $4.01 billion from $4.02 billion, net income fell 10% to $1.21 billion from $1.37 billion, and earnings per diluted share declined to $1.30 from $1.49 a year ago.
Free cash flow in the quarter declined to $806 million from $ 1.50 billon a year earlier.
The company’s management declared a quarterly cash dividend of $1.36 per share payable on February 11 to shareholders of record on January 31.
Intuitive Surgical Inc dropped 1.7% to $574 after the robotic surgery equipment company posted strong results for its fourth quarter ending in December.
Revenue jumped 25% to $2.41 billion from $1.93 billion; net income increased to $686 million from $606 million, and earnings per diluted share edged up to $1.88 from $1.69 a year ago.
The company expanded its da Vinci surgical systems by 15%, including 174 da Vinci 5 systems.
Verizon Communications Inc gained 0.9% to $39.54 after the telecom company posted steady growth in fiscal year 2024 ending in December.
Revenue in the fourth quarter ending in December increased 1.6% to $35.7 billion from $35.1 billion; net income swung to profit of $5.1 billion from a net loss of $2.6 billion, and earnings per diluted share rose to $1.18 from 64 cents a year ago.
Revenue in the year was up 0.6% to $134.8 billion from $134.0 billion, net income declined to $5 billion from $12.09 billion, and diluted earnings per share rose to $4.14 from $2.75 a year ago.
The company added one million subscribers in the fourth quarter, the highest in five years, driven by iPhone 16 trade-in deals, Black Friday promotions and myPlan offerings.
The wireless services segment rose 3.1% or $20 billion to total revenue, adjusted EBITDA growth was 2.1%, both exceeding the midpoint of the estimate levels.
Verizon successfully scaled private networks, securing contracts with clients like Xerox, Cummins Inc, FIFA, and the US Air Force.
The telecom company will pay an annualized dividend of $2.71 per share in its 18th consecutive year of quarterly dividend distribution.
Brown & Brown Inc added 0.7% to $106 after the company posted fourth quarter results.
The company’s management announced a cash dividend of $0.15 per share, payable on February 12 to shareholders of record on February 5.
Revenue in year 2023 ending in December increased to $4.26 billion from $3.57 billion; net income rose to $871 million from $672 million, and earnings per diluted share edged up to $3.05 from $2.37 a year ago.
SoFi Technologies Inc plunged 10% to $16.15 after the student loan services provider posted strong returns in the fourth quarter ending in December.
Revenue surged 19% to $734.1 million from $615.4 million; net income increased to $332.5 million from $47.9 million, and earnings per diluted share rose to 29 cents from 2 cents a year ago.
The student and home loans segments reached record levels since year 2021, up 71% and 87%, respectively.
Oxford Lane Capital Corp eased 0.2% to $5.11 after the investment company said its third quarter net income declined to 28 cents a share from 39 cents a year ago.