Market Update
Europe Movers: Danone, Deutsche Bank, LVMH, MTU Aero Engines, Natwest, Orange, PUMA, Renault, Rolls-Royce, RWE
Inga Muller
26 Jul, 2023
Frankfurt
Deutsche Bank AG increased 1.3% to €10.54 after the largest German bank reported a fall in second quarter earnings.
RWE AG rallied 1.8% to €40.67 after the German utility company raised its full-year earnings outlook.
MTU Aero Engines AG dropped 2.8% to €207.0 after the company warned that the Geared Turbofan inspection program will negatively impact its free cash flow.
Puma SE advanced 3.6% to €57.90 after the German footwear company reported a 11% jump in sales in the second quarter.
LVMH declined 4.5% to €815.20 after the luxury goods maker reported a surprise fall in sales in the U.S. amid economic uncertainties.
Danone SA declined 2.7% to €55.21 after the French dairy products maker said it will separate its Russia operation in July and take a one-time charge of €700 million.
Renault SA declined 1.5% to €38.94 and the French automaker finalized its restructured alliance with Nissan.
Orange SA dropped 2.6% to €10.45 after the French telecom network operator said consolidated net income in the first-half declined by €378 million to €1.09 billion.
Rolls-Royce Holdings Plc soared 20.3% to 183.56 pence after the aircraft engine maker raised its full-year operating profit estimate by about 45%.
Natwest Group Plc declined 3.5% to 242.50 pence and chief executive officer Alison Rose resigned and said he made "a serious error of judgement" in talking to a reporter about finances of UK politician Nigel Farage.
Llyods Banking Group Plc fell 3.2% to 44.64 pence after the UK-banking group reported first-half earnings below market expectations.
European Indexes Down, Euro Area Household Lending Growth Slowed to 7-year Low
Bridgette Randall
26 Jul, 2023
Frankfurt
European market indexes traded down in cautious trading as investors digested a mixed batch of earnings and awaited rate decisions.
The Federal Reserve is set to lift its interest rates by 25 basis points later today and the European Central Bank is expected to follow a similar rate hike on Thursday.
Investors welcomed China's decision to provide more support to moribund property sector, but measures are likely to fall short in reviving demand and ease financial pressure on home developers.
Closer to home, bank lending to households in the Euro Area continued to decline to the slowest pace in seven years after demand for credit fell on rising interest rates.
Bank lending to households in the Euro Area rose 1.7% from a year ago to €6.87 trillion in June 2023, the lowest growth rate since May 2016.
On the other hand, lending to companies increased 3%, the slowest rate of growth since November 2021.
The overall private sector credit growth, including households and non-financial corporations, decelerated to 2% in June, the slowest pace since August 2016.
Europe Indexes & Yields
The DAX index decreased 0.8% to 16,086.84, the CAC-40 index advanced 1.8% to 7,280.52 and the FTSE 100 index fell 0.5% to 7,647.59.
The yield on 10-year German bonds decreased higher to 2.43%, French bonds traded lower to 2.99%, the UK gilts edged down to 4.28% and Italian bonds increased to 4.08%.
The euro edged higher to $1.10, the British pound to $1.28 and the U.S. dollar fetched 86.99 Swiss cents
Brent crude increased $0.20 to $82.94 a barrel and the Dutch TTF natural gas increased €1.14 to €32.69 per MWh.
Europe Stock Movers
Deutsche Bank AG increased 1.3% to €10.54 after the largest German bank reported a fall in second quarter earnings.
RWE AG rallied 1.8% to €40.67 after the German utility company raised its full-year earnings outlook.
MTU Aero Engines AG dropped 2.8% to €207.0 after the company warned that the Geared Turbofan inspection program will negatively impact its free cash flow.
Puma SE advanced 3.6% to €57.90 after the German footwear company reported a 11% jump in sales in the second quarter.
LVMH declined 4.5% to €815.20 after the luxury goods maker reported a surprise fall in sales in the U.S. amid economic uncertainties.
Danone SA declined 2.7% to €55.21 after the French dairy products maker said it will separate its Russia operation in July and take a one-time charge of €700 million.
Renault SA declined 1.5% to €38.94 and the French automaker finalized its restructured alliance with Nissan.
Orange SA dropped 2.6% to €10.45 after the French telecom network operator said consolidated net income in the first-half declined by €378 million to €1.09 billion.
Rolls-Royce Holdings Plc soared 20.3% to 183.56 pence after the aircraft engine maker raised its full-year operating profit estimate by about 45%.
Natwest Group Plc declined 3.5% to 242.50 pence and chief executive officer Alison Rose resigned and said he made "a serious error of judgement" in talking to a reporter about finances of UK politician Nigel Farage.
Llyods Banking Group Plc fell 3.2% to 44.64 pence after the UK-banking group reported first-half earnings below market expectations.
Large Caps and Tech Stocks Lead Market Averages Higher
Barry Adams
25 Jul, 2023
New York City
Stocks traded higher after earnings dominated the news cycle and investors looked for signs of looming recession and slowing inflation.
Market averages traded higher as most companies met or exceeded lowered earnings expectations.
The Dow Jones Industrial Average closed higher for the 12th day in a row, the longest stretch since February 2017.
large companies have outperformed broader market indexes so far as investors sought safety in size in the face of a looing recession and rising interest rates.
Tech stocks led the charge and after the bell Alphabet reported better-than-expected earnings on the strength in its cloud segment and Microsoft generally met earnings expectations.
General Motors, General Electric and Verizon reported rising sales and earnings and stable operating margins, supporting the case of a healthy economic environment for large companies.
Investors are looking ahead to policy decisions from the Federal Reserve Bank, the European Central Bank and the Bank of Japan.
The Fed and the ECB are widely expected to raise rates by at least 25 basis points and the Bank of Japan is expected to keep its ultra-loose policy intact despite steady rise in inflation in recent months.
Crude oil traded at a new 3-month high and natural gas edged higher after China pledged more stimulus measures to support faltering economic momentum and depressed property market.
Copper traded up 2% to $3.93 per pound on the hopes of China measures spurring additional demand.
IMF Revised Higher World Economic Growth Outlook
The IMF revised higher its outlook for the world economy and raised its growth projection to 3% from the previous estimate of 2.8% released in April.
The multilateral agency lowered its inflation outlook to 6.8% in 2023 and 5.2% in 2024 and noted a slower decline in core rate of inflation.
The IMF estimated the U.S. economy to grow 1.8% in 2023 and 1% in 2024 and in the Euro Area growth in 2023 is expected to be at 0.9% and accelerate to 1.5% in 2024.
China is expected to grow 5.2% as the country struggles with the uneven economic recovery after the ending of Covid restrictions and Japan is expected to achieve a moderate rise of 1.5%.
U.S. Indexes & Yields
The S&P 500 index traded higher 0.3% to 4,567.46 and the Nasdaq Composite futures edged up 0.6% to 14,144.56.
The yield on 2-year Treasury notes decreased to 4.89%, 10-year Treasury notes inched lower to 3.89% and 30-year Treasury bonds edged down to 3.93%.
Crude oil decreased $0.25 to $78.49 a barrel and natural gas prices decreased 1 cent to $2.69 a thermal unit.
Stock Movers
General Motors declined 3.2% to $38.09 despite the automaker lifting its full-year earnings outlook.
The company revised full-year earnings outlook to between $12 billion and $14 billion, from the previous range between $11 billion and $13 billion.
The automaker also reported sharply higher second quarter earnings from a year ago.
3M Company rose 4.6% to $109.26 after the diversified company reported better-than-expected quarterly earnings and the company reiterated its annual sales outlook and revised higher its annual earnings estimate.
Verizon Communication Inc decreased 0.3% to $33.85 after the company reported mixed quarterly results.
Revenue in the quarter increased to $32.6 billion and earnings per share excluding one-time items was $1.21.
General Electric Company increased 4.5% to $115.57 after the engineering company reported stronger-than-expected quarterly earnings.
The company also lifted its full-year earnings outlook on the strong demand for its engines and products in the aerospace division and record orders in its renewable energy business.
Xerox Holdings Corp soared 9.2% to $16.93 after the workspace technology provider reported second quarter earnings ahead of market expectations.
Alaska Air Group, Inc dropped 10.6% to $47.68 despite the regional airline reporting better-than-expected revenue and earnings.
The airline reported second quarter revenue of $2.84 billion and adjusted earnings per share of $3 and guided full-year earnings per share between $5.50 and $7.50 a share.
European Markets Advanced In Cautious Trading
European markets traded slightly higher as investors awaited rate decisions this week and reacted to corporate earnings.
Investors are looking ahead to policy decisions from the Federal Reserve Bank, the European Central Bank and the Bank of Japan.
The Fed and the ECB are widely expected to raise rates by at least 25 basis points and the Bank of Japan is expected to keep its ultra-loose policy intact despite steady rise in inflation in recent months.
Crude oil traded at a new 3-month high and natural gas edged higher after China pledged more stimulus measures to support faltering economic momentum and depressed property market.
Copper traded up 2% to $3.93 per pound on the hopes of China measures spurring additional demand.
Hong Kong stocks soared 4% on the hopes of more measures to revive the flagging property market.
German business confidence deteriorated for the third month in a row in July, the Ifo Institute survey showed today.
The business climate index decreased to 87.3 in July from 88.6 in the previous month, a decline for the third month in a row.
Europe Indexes & Yields
The DAX index increased 0.2% to 16,211.59, the CAC-40 index fell 0.2% to 7,415.50 and the FTSE 100 index gained 0.1% to 7,691.82.
The yield on 10-year German bonds decreased higher to 2.43%, French bonds traded lower to 2.99%, the UK gilts edged down to 4.28% and Italian bonds increased to 4.08%.
The euro edged higher to $1.10, the British pound to $1.28 and the U.S. dollar fetched 86.99 Swiss cents
Brent crude increased $0.72 to $83.46 a barrel and the Dutch TTF natural gas increased €2.04 to €32.65 per MWh.
Europe Stock Movers
China's pledge to support the property sector after the Politburo meeting chaired by Xi Jinping, lifted commodities prices.
Antofagasta, Glencore and Anglo American advanced between 2% and 4%.
UBS Group AG increased 1.2% to CHF 18.24 and the Swiss banking giant was fined $400 million by regulators in Switzerland, U.S. and U.K. for misconducts of Credit Suisse, acquired by the bank in June.
Unilever Plc jumped 4.8% to 4,213.0 pence after the consumer products company reported better than expected sales in its latest quarter.
Ashtead Group Plc dropped 0.5% to 5,560.0 pence after the company priced its 5.95% senior notes worth $750 million.
Bayer AG declined 3.8% to $13.87 after the German chemical company lowered its fiscal year 2023 outlook and cited deteriorating macroeconomic outlook.
Dassault Systemes SE declined 3.9% to €38.50 after the French software company reported weaker-than-expected revenue growth in its latest quarter.
Remy Cointreau SA increased 3.8% to €151.90 after the company reiterated its fiscal 2024 outlook.
Thales SA declined 0.5% to €131.70 after the French defense company agreed to acquire cyber security company Imperva for $3.6 billion.
Movers: 3M, Alaska Air, General Electric, General Motors, Xerox
Scott Peters
25 Jul, 2023
New York City
General Motors declined 3.2% to $38.09 despite the automaker lifting its full-year earnings outlook.
Second quarter revenue increased 25.1% to $44.7 billion and net income soared 51.7% to $2.6 billion from $1.7 billion and diluted earnings per share increased to $1.83 from $1.14 a year ago.
The company forecasted annual net income attributable to stockholders between $9.3 billion and $10.7 billion, compared to the previous outlook between $8.4 billion and $9.9 billion.
3M Company rose 4.6% to $109.26 after the diversified company reported better-than-expected quarterly earnings and the company reiterated its annual sales outlook and revised higher its annual earnings estimate.
Second quarter revenue declined 4.5% to $8.3 billion and the company swung to a net loss of $6.8 billion from a profit of $78 million and diluted earnings per share of ($12.35) from 14 cents a year ago.
The current quarter results included the settlement charge related to the public water system of $14.19 billion.
The settlement still needs approval from a judge and the payment will be made over 13 years.
The company said it will halt production of PFAS chemicals by the end of 2025.
Per- and polyfluorinated substances, known collectively as PFAS or "forever chemicals" were used by firefighters in training sessions around the country at airports, military bases and other facilities.
The training exercises used foams laced with high concentration of PFAS, said one of the lead attorneys, Scott Summy, suing 3M and other companies to Associated Press.
3M raised its full-year 2023 adjusted earnings per share expectations to $8.60 to $9.10 from the previous estimate between $8.50 and $9.00.
The company said adjusted total sales growth in the range of -5% to -1%, reflecting adjusted organic sales growth of -3% to flat, which remains unchanged.
3M forecasted adjusted operating cash flow for the year 2023 between $5.9 billion to $6.3 billion contributing to 90% to 100% adjusted free cash flow conversion, which remains unchanged.
Verizon Communication Inc decreased 0.3% to $33.85 after the company reported mixed quarterly results.
Revenue in the quarter increased to $32.6 billion and earnings per share excluding one-time items was $1.21.
General Electric Company increased 4.5% to $115.57 after the engineering company reported stronger-than-expected quarterly earnings.
Total revenue increased 18% to $16.7billion from $14.1 billion and net loss attributed to shareholders shrank to $23 million from $949 million and diluted loss per share fell to 2 cents from 86 cents a year ago.
The company monetized its 32% stake in GE HealthCare for $2.2 billion and plans to redeem all its outstanding preferred shares for $2.8 billion on September 15.
The company also lifted its full-year earnings outlook on the strong demand for its engines and products in the aerospace division and record orders in its renewable energy business.
The company revised its organic revenue growth outlook in the low-double-digit range, up from the high-single-digit range and adjusted earnings per share range to between $2.10 and $2.30, up from the previous range between $1.70 and $2.00.
The company guided free cash flow between $4.1 and $4.6 billion, up from the previous estimate range between $3.6 and $4.2 billion.
Xerox Holdings Corp soared 9.2% to $16.93 after the workspace technology provider reported second quarter earnings ahead of market expectations.
Revenue increased 0.4% to $1.75 billion and net loss attributable to shareholders rose to $61 million from $4 million and diluted loss per share rose to 41 cents from 5 cents a year ago.
The company forecasted 2023 revenue growth between flat and down low-single-digits in constant currency.
Alaska Air Group, Inc dropped 10.6% to $47.68 despite the regional airline reporting better-than-expected revenue and earnings.
The airline reported second quarter revenue increased 7% to $2.84 billion and net income increased to $240 million from $98 million and diluted earnings per share rose to $1.86 from 76 cents.
The company forecasted full-year earnings per share between $5.50 and $7.50 a share.
The airline repurchased 871,987 shares of common stock for approximately $39 million in the second quarter, bringing total repurchases to $57 million for the six months ended June.
The company anticipates share repurchases of at least $100 million in the remainder of 2023.
With One Eye On Earnings, Market Averages Edge Higher On Wall Street
Barry Adams
25 Jul, 2023
New York City
With earnings releases picking up the pace, investors reacted to corporate news and looked for signs of looming recession and slowing inflation.
Market averages traded higher as most companies met or exceeded lowered earnings expectations.
General Motors, General Electric, Verizon and 3M reported rising sales and earnings and stable operating margins, supporting the case of a healthy economic environment for large companies.
Investors are looking ahead to policy decisions from the Federal Reserve Bank, the European Central Bank and the Bank of Japan.
The Fed and the ECB are widely expected to raise rates by at least 25 basis points and the Bank of Japan is expected to keep its ultra-loose policy intact despite steady rise in inflation in recent months.
Crude oil traded at a new 3-month high and natural gas edged higher after China pledged more stimulus measures to support faltering economic momentum and depressed property market.
Copper traded up 2% to $3.93 per pound on the hopes of China measures spurring additional demand.
U.S. Indexes & Yields
The S&P 500 index traded higher 0.1% to 4,560.50 and the Nasdaq Composite futures edged up 0.5% to 14,130.53.
The yield on 2-year Treasury notes decreased to 4.89%, 10-year Treasury notes inched lower to 3.90% and 30-year Treasury bonds edged down to 3.94%.
Crude oil decreased $0.25 to $78.49 a barrel and natural gas prices decreased 1 cent to $2.69 a thermal unit.
Stock Movers
General Motors declined 3.2% to $38.09 despite the automaker lifting its full-year earnings outlook.
The company revised full-year earnings outlook to between $12 billion and $14 billion, from the previous range between $11 billion and $13 billion.
The automaker also reported sharply higher second quarter earnings from a year ago.
3M Company rose 4.6% to $109.26 after the diversified company reported better-than-expected quarterly earnings and the company reiterated its annual sales outlook and revised higher its annual earnings estimate.
Verizon Communication Inc decreased 0.3% to $33.85 after the company reported mixed quarterly results.
Revenue in the quarter increased to $32.6 billion and earnings per share excluding one-time items was $1.21.
General Electric Company increased 4.5% to $115.57 after the engineering company reported stronger-than-expected quarterly earnings.
The company also lifted its full-year earnings outlook on the strong demand for its engines and products in the aerospace division and record orders in its renewable energy business.
Xerox Holdings Corp soared 9.2% to $16.93 after the workspace technology provider reported second quarter earnings ahead of market expectations.
Alaska Air Group, Inc dropped 10.6% to $47.68 despite the regional airline reporting better-than-expected revenue and earnings.
The airline reported second quarter revenue of $2.84 billion and adjusted earnings per share of $3 and guided full-year earnings per share between $5.50 and $7.50 a share.
Europe Movers: Ashtead Group, Bayer, Dassault, Remy Cointreau, Thales, UBS
Inga Muller
25 Jul, 2023
New York City
European markets edged higher and investors reacted to corporate news and earnings releases.
The DAX index increased 0.2% to 16,216.70, the CAC-40 index advanced 0.2% to 7,450.23 and the FTSE 100 index gained 0.2% to 7,686.32.
China's pledge to support the property sector after the Politburo meeting chaired by Xi Jinping, lifted commodities prices.
Antofagasta, Glencore and Anglo American advanced between 2% and 4%.
UBS Group AG increased 1.2% to CHF 18.24 and the Swiss banking giant was fined $400 million by regulators in Switzerland, U.S. and U.K. for misconducts of Credit Suisse, acquired by the bank in June.
Unilever Plc jumped 4.8% to 4,213.0 pence after the consumer products company reported better than expected sales in its latest quarter.
Ashtead Group Plc dropped 0.5% to 5,560.0 pence after the company priced its 5.95% senior notes worth $750 million.
Bayer AG declined 3.8% to $13.87 after the German chemical company lowered its fiscal year 2023 outlook and cited deteriorating macroeconomic outlook.
Dassault Systemes SE declined 3.9% to €38.50 after the French software company reported weaker-than-expected revenue growth in its latest quarter.
Remy Cointreau SA increased 3.8% to €151.90 after the company reiterated its fiscal 2024 outlook.
Thales SA declined 0.5% to €131.70 after the French defense company agreed to acquire cyber security company Imperva for $3.6 billion.
European Markets Trade Higher After Crude Oil and Copper Advanced
Bridgette Randall
25 Jul, 2023
Frankfurt
European markets traded slightly higher as investors awaited rate decisions this week and reacted to corporate earnings.
Investors are looking ahead to policy decisions from the Federal Reserve Bank, the European Central Bank and the Bank of Japan.
The Fed and the ECB are widely expected to raise rates by at least 25 basis points and the Bank of Japan is expected to keep its ultra-loose policy intact despite steady rise in inflation in recent months.
Crude oil traded at a new 3-month high and natural gas edged higher after China pledged more stimulus measures to support faltering economic momentum and depressed property market.
Copper traded up 2% to $3.93 per pound on the hopes of China measures spurring additional demand.
Hong Kong stocks soared 4% on the hopes of more measures to revive the flagging property market.
German business confidence deteriorated for the third month in a row in July, the Ifo Institute survey showed today.
The business climate index decreased to 87.3 in July from 88.6 in the previous month, a decline for the third month in a row.
Europe Indexes & Yields
The DAX index increased 0.2% to 16,216.70, the CAC-40 index advanced 0.2% to 7,450.23 and the FTSE 100 index gained 0.2% to 7,686.32.
The yield on 10-year German bonds decreased higher to 2.43%, French bonds traded lower to 2.99%, the UK gilts edged down to 4.28% and Italian bonds increased to 4.08%.
The euro edged higher to $1.10, the British pound to $1.28 and the U.S. dollar fetched 86.99 Swiss cents
Brent crude increased $0.20 to $82.94 a barrel and the Dutch TTF natural gas increased €1.14 to €32.69 per MWh.
Europe Stock Movers
China's pledge to support the property sector after the Politburo meeting chaired by Xi Jinping, lifted commodities prices.
Antofagasta, Glencore and Anglo American advanced between 2% and 4%.
UBS Group AG increased 1.2% to CHF 18.24 and the Swiss banking giant was fined $400 million by regulators in Switzerland, U.S. and U.K. for misconducts of Credit Suisse, acquired by the bank in June.
Unilever Plc jumped 4.8% to 4,213.0 pence after the consumer products company reported better than expected sales in its latest quarter.
Ashtead Group Plc dropped 0.5% to 5,560.0 pence after the company priced its 5.95% senior notes worth $750 million.
Bayer AG declined 3.8% to $13.87 after the German chemical company lowered its fiscal year 2023 outlook and cited deteriorating macroeconomic outlook.
Dassault Systemes SE declined 3.9% to €38.50 after the French software company reported weaker-than-expected revenue growth in its latest quarter.
Remy Cointreau SA increased 3.8% to €151.90 after the company reiterated its fiscal 2024 outlook.
Thales SA declined 0.5% to €131.70 after the French defense company agreed to acquire cyber security company Imperva for $3.6 billion.
Mega-cap Dow Jones Extended Rally to 11 Days Ahead of Key Tech Earnings
Barry Adams
24 Jul, 2023
New York City
Stocks traded higher in trading as investors prepare to review earnings reports and the Federal Reserve's policy decision later in the week.
Market averages edged higher as investors await earnings from several companies including Meta, Amazon, Microsoft, and Alphabet.
About 740 companies are scheduled to release their quarterly results this week, including about 40% of the companies in the S&P 500 index.
Nine-month long market rally is powered by large gains in a narrow list of stocks, after companies have reported better-than-expected earnings in the last three quarters.
Investors are looking for clues how far companies can improve earnings and operating margin in the face of a 500 basis points increase in interest rates in the last fifteen months.
Moreover, according to the Fed's previous announcements the worst of the rate increases are expected to be felt in the current quarter, and investors are awaiting forecasts of revenue and margins for the third quarter of 2023.
Moreover, the Federal Reserve is scheduled to announce its rate decision on Wednesday, and market participants are factoring at least 25 basis points increase.
Economists are also looking to understand how high rates are likely to go by the end of this year, in the face of tight labor market conditions.
Despite the persistent drumbeat of a looming recession, the economy has been chugging along at a slower pace and investors are postponing the arrival of a recession every quarter to the next quarter for the last three quarters.
The Federal Reserve has raised rates ten times over the last fifteen months and the economy has still not dipped into a recession and core inflation has stayed near 5%, significantly above the Fed's target rate of 2%.
Generally, market indexes peak about six to nine months ahead of the arrival of a recession, but there is no sign that the markets are near a peak.
The S&P Global US Composite PMI eased to 52.0 in July 2023, down from 53.2 in June, according to a preliminary estimate.
The latest reading showed the weakest pace of expansion in private sector business activity since February, after service sector activity slowed to a five-month low, and manufacturing output was relatively unchanged.
The European Central Bank is expected to announce its rate decision on Thursday and the Bank of Japan is also set to announce its policy directive on the yield curve management on Friday.
U.S. Indexes & Yields
The S&P 500 index traded higher 0.4% to 4,554.99 and the Nasdaq Composite futures edged up 0.1% to 14,049.76.
The yield on 2-year Treasury notes decreased to 4.83%, 10-year Treasury notes inched lower to 3.80% and 30-year Treasury bonds edged down to 3.89%.
Crude oil increased $0.55 to $77.62 a barrel and natural gas prices increased a fraction to $2.71 a thermal unit.
Stock Movers
Domino's Pizza Inc increased 1.8% to $391.20 after the company reported revenue of $1.0 billion and $3.08 a share.
AMC Entertainment Holding Inc soared 35.7% to $5.95 after a judge disallowed the company's plan to convert its preferred share to common share.
Preferred units declined 2.2% to $1.90.
The company said it has proposed a revised conversion plan.
Ryanair Holdings plc declined 4% to $102.30 after the deep discount airline reported a surge in traffic, revenue and earnings.
Revenue in the fiscal year 2024 first quarter ending in June increased 40% to Є3.65 billion after passenger count rose 11% to 50.4 million and load factor rose to 95% from 92% from a year ago.
Profit after-tax soared 290% to Є663 million from Є170 million and earnings per share rose to 58.22 cents from 16.53 cents a year ago.
European Indexes Lacked Direction, Spain's Post Election Turmoil
European markets traded down after an inconclusive election in Spain and weak business condition surveys in the Euro Area kept market sentiment down.
The IBEX index in Madrid fell as much as 0.8% after the right-wing block failed to achieve an absolute majority in Sunday's election in Spain.
Right-wing block won 169 seats and the left-block secured 153, leaving no clear winner and leaving the country in a gridlock.
Spain’s conservative Partido Popular party won 136 parliamentary seats, followed by the incumbent socialist party PSOE with 122 seats.
Far-right party Vox lost its total seat count from the previous election to 33 seats, while the leftish Sumar party winning 31.
All parties failed to win the needed majority of 176 to form a government. The governing PSOE and Vox were considered as a possible coalition partner before the election, but their combined tally fell short of required majority to 169.
The right leaning Popular Party led by Nunez Feijoo is hoping to become Spain's next prime minister but he will need support from several smaller parties.
Spain]s political turmoil is likely to last several weeks while Feijoo attempts to build a coalition with the help of several smaller parties with different political philosophies.
The HCOB Flash Eurozone Composite PMI Output Index, which measures manufacturing and services sector activities, declined to an eight-month low of 48.9 in July from 49.9 in June.
German economic activities contracted the most since November of last year and French output also shrank for the second month in a row.
The S&P Global/CIPS composite Purchasing Managers' Index for the UK showed a preliminary reading of 50.7 in July, a decline from 52.8 in June.
The UK's economic activities were anticipated to decline on the worries of restrained consumer spending in the face of elevated inflation and the ongoing supply chain disruption after Brexit.
Europe Indexes & Yields
The DAX index increased 0.08% to 16,190.95, the CAC-40 index fell 0.07% to 7,427.31 and the FTSE 100 index increased 0.2% to 7,678.29.
The yield on 10-year German bonds decreased higher to 2.37%, French bonds traded lower to 2.97%, the UK gilts edged down to 4.20% and Italian bonds increased to 4.02%.
The euro edged higher to $1.11, the British pound to $1.28 and the U.S. dollar fetched 86.49 Swiss cents
Brent crude increased $1.55 to $78.62 a barrel and the Dutch TTF natural gas increased €2.39 to €30.56 per MWh.
Europe Stock Movers
Stocks in Madrid declined after neither party achieved a clear majority to form a stable government.
Banks led the decliners in Madrid and Bankinter, Unicaja, Caizabank and Banco Sabadell fell between 2% and 3%.
Endesa dropped 3.2% to €19.22 and Indra Sistemas SA declined 3.1% to €12.30.
Julius Baer Gruppe AG rose 7.0% to CHF 60.26 after the Swiss financial services firm reported strong quarterly results.
Ocado Group Plc soared 11% to 764.0 pence after the company settled its long running intellectual property dispute with Norwegian robotics company AutoStore Holdings.
Vodafone Group Plc increased 4% to 76.55 pence after the company reported better-than-expected revenue growth in its latest quarter and named a new CFO.
Alstom SA rose 1% to €27.66 after the French power equipment company signed a contract worth up to €260 million with Germany-based RAILPOOL
S4 Capital PLC plunged 19.7% to 160.75 pence after the digital advertising and marketing company lowered its annual revenue growth core profit margin estimated citing the challenging macroeconomic environment.
Movers: AMC Entertainment, Domino's Pizza, Ryanair
Scott Peters
24 Jul, 2023
New York City
The S&P 500 index traded higher 0.2% to 4,574.26 and the Nasdaq Composite futures edged up 0.1% to 14,098.52.
The yield on 2-year Treasury notes decreased to 4.83%, 10-year Treasury notes inched lower to 3.80% and 30-year Treasury bonds edged down to 3.89%.
Domino's Pizza Inc increased 1.8% to $391.20 after the company reported revenue of $1.0 billion and $3.08 a share.
AMC Entertainment Holding Inc soared 35.7% to $5.95 after a judge disallowed the company's plan to convert its preferred share to common share.
Preferred units declined 2.2% to $1.90.
The company said it has proposed a revised conversion plan.
Ryanair Holdings plc declined 4% to $102.30 after the deep discount airline reported a surge in traffic, revenue and earnings.
Revenue in the fiscal year 2024 first quarter ending in June increased 40% to Є3.65 billion after passenger count rose 11% to 50.4 million and load factor rose to 95% from 92% from a year ago.
Profit after-tax soared 290% to Є663 million from Є170 million and earnings per share rose to 58.22 cents from 16.53 cents a year ago.
Tech Earnings Optimism Drives Broader Averages Higher Ahead of Rate Decision This Week
Barry Adams
24 Jul, 2023
New York City
Stocks traded slightly higher in early trading as investors prepare to review a barrage of earnings reports and the Federal Reserve's policy decision later in the week.
Market averages edged higher as investors await earnings from several companies including Meta, Amazon, Microsoft, and Alphabet.
About 740 companies are scheduled to release their quarterly results this week, including about 40% of the companies in the S&P 500 index.
Nine-month long market rally is powered by large gains in a narrow list of stocks, after companies have reported better-than-expected earnings in the last three quarters.
Investors are looking for clues how far companies can improve earnings and operating margin in the face of a 500 basis points increase in interest rates in the last fifteen months.
Moreover, according to the Fed's previous announcements the worst of the rate increases are expected to be felt in the current quarter, and investors are awaiting forecasts of revenue and margins for the third quarter of 2023.
Moreover, the Federal Reserve is scheduled to announce its rate decision on Wednesday, and market participants are factoring at least 25 basis points increase.
Economists are also looking to understand how high rates are likely to go by the end of this year, in the face of tight labor market conditions.
The European Central Bank is expected to announce its rate decision on Thursday and the Bank of Japan is also set to announce its policy directive on the yield curve management on Friday.
U.S. Indexes & Yields
The S&P 500 index traded higher 0.2% to 4,574.26 and the Nasdaq Composite futures edged up 0.1% to 14,098.52.
The yield on 2-year Treasury notes decreased to 4.83%, 10-year Treasury notes inched lower to 3.80% and 30-year Treasury bonds edged down to 3.89%.
Crude oil increased $0.55 to $77.62 a barrel and natural gas prices increased a fraction to $2.71 a thermal unit.
Stock Movers
Domino's Pizza Inc increased 1.8% to $391.20 after the company reported revenue of $1.0 billion and $3.08 a share.
AMC Entertainment Holding Inc soared 35.7% to $5.95 after a judge disallowed the company's plan to convert its preferred share to common share.
Preferred units declined 2.2% to $1.90.
The company said it has proposed a revised conversion plan.
Ryanair Holdings plc declined 4% to $102.30 after the deep discount airline reported a surge in traffic, revenue and earnings.
Revenue in the fiscal year 2024 first quarter ending in June increased 40% to Є3.65 billion after passenger count rose 11% to 50.4 million and load factor rose to 95% from 92% from a year ago.
Profit after-tax soared 290% to Є663 million from Є170 million and earnings per share rose to 58.22 cents from 16.53 cents a year ago.
Europe Movers: Alstom, Julius Baer, Ocado, Spanish Stocks, S4 Capital, Vodafone
Inga Muller
24 Jul, 2023
Frankfurt
European markets, bond yields and the euro edged lower after manufacturing and service activity surveys in July showed weakening activities.
The DAX index increased 0.2% to 16,202.20, the CAC-40 index advanced 0.2% to 7,418.18 and the FTSE 100 index decreased 0.08% to 7,658.61.
The yield on 10-year German bonds decreased higher to 2.37%, French bonds traded lower to 2.97%, the UK gilts edged down to 4.20% and Italian bonds increased to 4.02%.
Stocks in Madrid declined after neither party achieved a clear majority to form a stable government.
Banks led the decliners in Madrid and Bankinter, Unicaja, Caizabank and Banco Sabadell fell between 2% and 3%.
Endesa dropped 3.2% to €19.22 and Indra Sistemas SA declined 3.1% to €12.30.
Julius Baer Gruppe AG rose 7.0% to CHF 60.26 after the Swiss financial services firm reported strong quarterly results.
Ocado Group Plc soared 11% to 764.0 pence after the company settled its long running intellectual property dispute with Norwegian robotics company AutoStore Holdings.
Vodafone Group Plc increased 4% to 76.55 pence after the company reported better-than-expected revenue growth in its latest quarter and named a new CFO.
Alstom SA rose 1% to €27.66 after the French power equipment company signed a rolling stock contract worth up to €260 million with Germany-based RAILPOOL
S4 Capital PLC plunged 19.7% to 160.75 pence after the digital advertising and marketing company lowered its annual revenue growth core profit margin estimated citing the challenging macroeconomic environment.
Private Sector In Euro Area Contracted, Spanish Stocks Trade Down After Post-election Turmoil
Bridgette Randall
24 Jul, 2023
Frankfurt
European markets traded down after an inconclusive election in Spain and weak business condition surveys in the Euro Area kept market sentiment down.
The IBEX index in Madrid fell as much as 0.8% after the right-wing block failed to achieve an absolute majority in Sunday's election in Spain.
Right-wing block won 169 seats and the left-block secured 153, leaving no clear winner and leaving the country in a gridlock.
Spain’s conservative Partido Popular party won 136 parliamentary seats, followed by the incumbent socialist party PSOE with 122 seats.
Far-right party Vox lost its total seat count from the previous election to 33 seats, while the leftish Sumar party winning 31.
All parties failed to win the needed majority of 176 to form a government. The governing PSOE and Vox were considered as a possible coalition partner before the election, but their combined tally fell short of required majority to 169.
The right leaning Popular Party led by Nunez Feijoo is hoping to become Spain's next prime minister but he will need support from several smaller parties.
Spain]s political turmoil is likely to last several weeks while Feijoo attempts to build a coalition with the help of several smaller parties with different political philosophies.
The HCOB Flash Eurozone Composite PMI Output Index, which measures manufacturing and services sector activities, declined to an eight-month low of 48.9 in July from 49.9 in June.
German economic activities contracted the most since November of last year and French output also shrank for the second month in a row.
The S&P Global/CIPS composite Purchasing Managers' Index for the UK showed a preliminary reading of 50.7 in July, a decline from 52.8 in June.
The UK's economic activities were anticipated to decline on the worries of restrained consumer spending in the face of elevated inflation and the ongoing supply chain disruption after Brexit.
Europe Indexes & Yields
The DAX index increased 0.2% to 16,202.20, the CAC-40 index advanced 0.2% to 7,418.18 and the FTSE 100 index decreased 0.08% to 7,658.61.
The yield on 10-year German bonds decreased higher to 2.37%, French bonds traded lower to 2.97%, the UK gilts edged down to 4.20% and Italian bonds increased to 4.02%.
The euro edged higher to $1.11, the British pound to $1.28 and the U.S. dollar fetched 86.49 Swiss cents
Brent crude increased $0.30 to $81.37 a barrel and the Dutch TTF natural gas increased €0.84 to €29.01 per MWh.
Europe Stock Movers
Stocks in Madrid declined after neither party achieved a clear majority to form a stable government.
Banks led the decliners in Madrid and Bankinter, Unicaja, Caizabank and Banco Sabadell fell between 2% and 3%.
Endesa dropped 3.2% to €19.22 and Indra Sistemas SA declined 3.1% to €12.30.
Julius Baer Gruppe AG rose 7.0% to CHF 60.26 after the Swiss financial services firm reported strong quarterly results.
Ocado Group Plc soared 11% to 764.0 pence after the company settled its long running intellectual property dispute with Norwegian robotics company AutoStore Holdings.
Vodafone Group Plc increased 4% to 76.55 pence after the company reported better-than-expected revenue growth in its latest quarter and named a new CFO.
Alstom SA rose 1% to €27.66 after the French power equipment company signed a contract worth up to €260 million with Germany-based RAILPOOL
S4 Capital PLC plunged 19.7% to 160.75 pence after the digital advertising and marketing company lowered its annual revenue growth core profit margin estimated citing the challenging macroeconomic environment.