Market Update
Asian Markets Extended Gains On Monday, Hong Kong Index Soared
Arjun Pandit
04 Sep, 2023
Mumbai
Market indexes in Asia traded higher following gains on Wall Street in Friday's trading after the U.S. economy expanded at a moderate pace and jobless rate as more people joined the labor force.
Moreover, China's additional stimulus measures to support property market and cut mortgage rates for first home buyers also revived market sentiment.
On Friday, China announced new measures to support property market and yuan.
Minimum down payments for mortgages will be cut to 20% for first-time home buyers and 30% for the second-time buyers, according to joint statements by the People’s Bank of China and National Administration of Financial Regulations.
In addition, the central bank also lowered interest rates on new mortgage rates by 40 basis points for the premium to its benchmark loan prime rate.
Regulators also said mortgage rates on existing loans can be renegotiated starting as early as September 25.
The lowered rates are likely to help 40 million home buyers, or about two thirds of housing loans in the country.
The PBOC announced foreign exchange reserve requirements to 4% from 6% for banks, to support the weakening yuan which has been under pressure for the last five months.
The yuan has dropped around 6% as foreign investors pulled out of China amid deepening real estate crisis.
A private survey of manufacturing industry showed a surprise expansion in August, marking the highest level since February and significant improvement in factory activities.
In Monday's trading, the Nikkei index increased 0.6%, the Shanghai SSE Composite index added 1.2%, the Hang Seng index jumped 2.4% and the KOSPI index added 0.6%.
Country Garden soared more than 15% after the largest real estate company in China narrowly averted its first-ever bond default after investors granted a grace period of 30 days for a yuan loan payment.
In August, the Nikkei index fell 2.6%, the SSE Composite index declined 5.2%, the Hang Seng index fell 8.2% and the KOSPI index decreased 4.2%.
U.S. Market Indexes Hold Weekly Gains, August Payrolls Show Moderating Job Market
Barry Adams
01 Sep, 2023
New York City
Market averages jumped in early trading after the release of nonfarm payrolls data and Treasury yields edged slightly higher.
However, after two hours of trading, averages turned lower and struggled to rise above the flatline.
Treasury yields edged higher after the U.S. economy added less than 200,000 net new jobs in August but jobless rate rose in the month as the labor market began to cool after multiple rate hikes over the last sixteen months.
For the week, the S&P 500 index is up 2% and the Nasdaq index is higher by about 3% as investors bid up stocks in energy and tech sectors.
U.S. Nonfarm Payrolls Expanded Third Month In a Row In August
The US economy added a net 187,000 jobs in August, and payrolls expanded at a faster pace for the third month in a row, the U.S. Bureau of Labor Statistics.
Employment increased in health care by 71,000, leisure and hospitality by 40,000, social assistance by 26,000, construction by 22,000 and professional services by 19,000.
On the other hand, transportation and warehousing lost 34,000 jobs, following the bankruptcy of Yellow, a leading trucking company, which left about 30,000 workers out of jobs.
The change in total nonfarm payroll employment for June was revised down 80,000 to 105,000, and the change for July was revised down by 30,000 to 157,000.
Jobless rate increased to 3.8% in August and the number of unemployed increased by 0.51 million to 6.4 million, and jobless rate increased from 3.7% and unemployed increased from 6.0 million a year ago.
Average hourly rates increased by 4.3% from a year ago, reflecting easting labor market conditions and slowing economy.
U.S. Indexes & Yields
The S&P 500 index traded down 0.02% to 4,507.02 and the Nasdaq Composite fell 0.02% to 14,003.02.
The yield on 2-year Treasury notes decreased to 4.88%, 10-year Treasury notes inched higher to 4.11% and 30-year Treasury bonds edged down to 4.30%.
Crude oil increased $1.50 to $85.13 a barrel and natural gas prices increased 5 cents to $2.82 a thermal unit.
U.S. Stock Movers
Dell Technologies soared 23% to $69.22 after the company reported quarterly results ahead of market expectations.
Second quarter revenue decreased 13% to $22.9 billion and net income dropped 10% to $455 million from $506 million and diluted earnings per share fell to 63 cents from 68 cents a year ago.
MongoDB Inc jumped 5.7% after the database developer reported mixed quarterly results.
The software company reported second quarter revenue of $423.8 million and adjusted earnings of 93 cents a share.
Lululemon Athletica Inc soared 4.5% to $401.72 after the athletic apparel retailer reported a jump in revenue and earnings.
Second quarter revenue increased 18% to $2.2 billion, driven by 11% in North American and 52% in international markets.
Net income jumped to $341.6 million from $289.5 million and diluted earnings per share rose to$2.68 from $2.26.
Euro Area Manufacturing Struggled In August, UK Home Prices Fell at Fastest Pace in 14 Years
Bridgette Randall
01 Sep, 2023
Frankfurt
European markets traded higher on the first day of September and final day of the week and investors reviewed economic news from the region, China and the U.S.
Market indexes advanced in London, Paris and Frankfurt after a manufacturing survey showed a pick up in activities to the level last seen three months ago.
The Eurozone manufacturing PMI increased to a three-month high of 43.50 points in August from 42.70 points in July, reported by S&P global.
Germany's manufacturing weakness continued in August.
The final factory PMI logged 39.1 in August, confirming the previous estimate and slightly above 38.8 in July.
France's manufacturing accelerated its decline in new orders putting production and employment under pressure.
The final PMI rose to 46.0 in August from 45.1 in July.
The overall numbers show ongoing weakness in the manufacturing industry and new orders declined in August and exports struggled and input costs continued to fall.
In other economic news, U.K. home prices fell at the fastest pace in more than 14 years in August as rising borrowing costs negatively impacted housing market activity, the Nationwide Building Society report highlighted.
Home prices posted an annual decline of 5.3% after easing from 3.8% in July, the decline was the largest fall since July 2009.
Europe Indexes & Yields
The DAX index decreased 0.1% to 15,926.96, the CAC-40 index rose 0.2% to 7,334.23 and the FTSE 100 index advanced 0.5% 7,475.25.
The yield on 10-year German bonds decreased to 2.47%, French bonds traded lower to 2.99%, the UK gilts edged down to 4.34% and Italian bonds fell to 4.12%.
The euro edged to the lowest level since mid-June on the hopes that the central is more likely to pause its rate hike campaign and assess the impact of the multiple rate hikes on the economy.
The euro edged lower to $1.086, the British pound to $1.269 and the U.S. dollar fetched 88.09 Swiss cents.
Brent crude increased $1.0 to $87.83 a barrel and the Dutch TTF natural gas decreased €0.21 to €36.82 per MWh.
Europe Stock Movers
Salzgitter AG increased 0.6% to €27.36 despite the steelmaker dropping its fiscal year 2023 outlook for now.
Electrolux AB declined 1.3% to kr 119.05 after the Swedish appliance maker recalled some models of Frigidaire gas cooktops to fix potential gas leaks.
Johnson Matthey Plc soared 11% to 1,809.50 pence after the U.S. based investment company Standard Industries doubled its stake in the company to 10%.
Aurubis AG declined 9.7% to €69.0 after the Germany-based copper smelter issued a profit warning.
Camellia Plc declined 5% to 5,200.0 pence after the British agriculture engineering company reported its first-half results.
Late Rally In Volatile August Lifted U.S. and Global Stocks Higher
Barry Adams
31 Aug, 2023
New York City
Stocks were volatile on the final day of the month but market averages retained upward bias.
Market averages are likely to stretch the latest winning streak to the fifth session in a row and Treasury yields edged lower.
The latest market gains helped the S&P 500 index trim its August losses to 1.5% and the Nasdaq to 2.3% after a rally in tech stocks lifted broader indexes.
Treasury yields edged lower after the release of alternative measure of inflation data.
Core personal consumption expenditures index increased 0.2% in July from the previous month and jumped 4.2% from a year ago, the U.S. Bureau of Economic Analysis reported Thursday.
The core PCE index, which significantly understates inflation felt by most families, is the preferred inflation measure of the Federal Reserve.
The PCE index increased 0.2% from the previous month and rose 3.3% from a year ago.
The inflation reading confirmed prices are still rising at a faster pace, despite multiple rate hikes over the last sixteen months.
The stubborn inflation data provided another signal to Fed's policymakers and supported the case for hawkish stance.
In other economic news, initial jobless claims adjusted for seasonal factors declined 4,000 to 228,000 in the week ending on August 26, the Labor Department reported Thursday.
Meanwhile, continuing claims rose 28,000 from the previous week's downwardly revised to 1.725 million in the week ending on August 19.
U.S. Indexes & Yields
The S&P 500 index traded up 0.3% to 4,518.44 and the Nasdaq Composite gained 0.3% to 14,060.16.
The yield on 2-year Treasury notes decreased to 4.89%, 10-year Treasury notes inched lower to 4.09% and 30-year Treasury bonds edged down to 4.20%.
Crude oil increased $1.54 to $83.16 a barrel and natural gas prices decreased 1 cent to $2.78 a thermal unit.
U.S. Stock Movers
Salesforce Inc jumped 4.9% to $226.0 after customer management software developer reported better-than-expected sales and earnings.
Revenue increased to$8.6 billion and adjusted diluted earnings per share of $2.12.
Costco Wholesale Corp increased 0.3% to $544.18 after the membership discount wholesale club said August sales increased 5% to $18.42 billion.
Five Below Inc declined 4.5% to $174.88 after the deep discount retailer forecasted weak third quarter results.
The retailer estimated revenue to fall between $715 million and $730 million and earnings per share between 17 cents and 25 cents, sharply lower than estimates set by some analysts.
Victoria's Secret & Company declined 4.9% to $17.06 after the lingerie retailer reported disappointing second quarter results.
The specialty retailer reported revenue of $1.43 billion and adjusted earnings per share of 26 cents.
Chewy Inc dropped 15.1% to $23.12 after the online pet food retailer said second quarter sales of $2.78 billion and diluted earnings per share of 4 cents.
Okta Inc jumped 14.2% to $83.83 and the identity access management reported sales and earnings ahead of market expectations.
Second quarter revenue increased to $556 million and adjusted earnings per share of 31 cents.
Crowdstrike Holdings Inc jumped 7.6% to $160.21 after the cybersecurity company reported better-than-expected revenue and earnings.
The company reported second quarter adjusted earnings per share of 74 cents on revenue of $734 million.
European Markets Trim August Losses, Inflation Stays Elevated
European markets advanced and investors overlooked German retail sales and the Euro Area inflation data.
Market indexes on the last day of the month in London, Paris and Frankfurt traded higher but popular averages are set to close down between 2% and 3% in August.
In volatile trading this month, investors remained divided on the future rate path as stubborn inflation remained significantly ahead of the European Central Bank's target level of 2%.
Consumer price inflation in the eurozone remained unchanged at 5.3% in August, the European Central Bank reported Thursday.
On the other hand, core inflation rate, which excludes volatile food, energy and tobacco prices, cooled to 5.3% from 5.5% in July.
In other economic news in the region, the Euro Area seasonally adjusted jobless rate stayed at a record low of 6.4% in July, lower than 6.7% in the period a year ago, Eurostat reported Thursday.
Jobless rate was the lowest in Germany with 2.9% and was the highest in Spain at 11.6% followed by 7.6% in Italy and 7.4% in France.
Europe Indexes & Yields
The DAX index increased 0.4% to 15,947.08, the CAC-40 index declined 0.7% to 7,316.70 and the FTSE 100 index advanced 0.2% 7,487.89.
The yield on 10-year German bonds decreased to 2.48%, French bonds traded lower to 3..0%, the UK gilts edged down to 4.43% and Italian bonds fell to 4.13%.
The euro edged to the lowest level since mid-June on the hopes that the central is more likely to pause its rate hike campaign and assess the impact of the multiple rate hikes on the economy.
The euro edged lower to $1.087, the British pound to $1.267 and the U.S. dollar fetched 88.19 Swiss cents.
Brent crude increased $1.60 to $86.63 a barrel and the Dutch TTF natural gas decreased €0.96 to €35.93 per MWh.
Europe Stock Movers
Pernod Ricard SA dropped 4.5% to €185.65 after the French spirits maker said sales in key markets in China and the U.S. are likely to decline in the fiscal first quarter ending in September.
Sanofi SA gained 1% to €99.61 after the company reorganized its executive management team.
Grafton Group Plc increased 1.5% to 867.90 pence after the building materials supplier hiked its dividend and announced a new stock repurchase plan of up to £50 million.
Frasers Group Plc added 1.6% to 809 pence after the sportswear retailer lifted its stake in online retailer Boohoo to 9.1% from 7.8%.
Boohoo Group Plc jumped 4.5% to 34.85 pence.
UBS Group AG jumped 5.8% to CHF 23.47 after the Swiss banking group reported significantly higher earnings on higher revenue.
Profit-before-tax jumped to $29.23 billion, primarily reflecting a $28.9 billion negative goodwill related to the acquisition of Credit Suisse Group and including net credit loss expenses of $740 million.
Net profit attributable to shareholders was $28.88 billion, with diluted earnings per share of $8.99.
Return on CET1 capital was 185.0% or 4.5% excluding negative goodwill, integration-related expenses and acquisition costs.
Revenue in the second quarter jumped to $9.5 billion from $8.9 billion and net income jumped to $28.9 billion from $2.1 billion and diluted earnings per share soared to $8.99 from 61 cents a year ago.
Credit Suisse group's performance appears to be stabilizing and net deposit outflow reversed to inflow in the second quarter was $18 billion, taking the total deposit inflow for the group including UBS increased to $23 billion.
UBS also said it plans to wind down noncore businesses of Credit Suisse, including its investment banking, wealth management and asset management units.
Movers: Costco, Chewy, Crowdstrike, Five Below, Okta, Salesforce, Signet Jewelers, Victoria's Secret
Scott Peters
31 Aug, 2023
New York City
Salesforce Inc jumped 4.9% to $226.0 after customer management software developer reported better-than-expected sales and earnings.
Revenue increased to$8.6 billion and adjusted diluted earnings per share of $2.12.
Costco Wholesale Corp increased 0.3% to $544.18 after the membership discount wholesale club said August sales increased 5% to $18.42 billion.
Five Below Inc declined 4.5% to $174.88 after the deep discount retailer forecasted weak third quarter results.
The retailer estimated revenue to fall between $715 million and $730 million and earnings per share between 17 cents and 25 cents, sharply lower than estimates set by some analysts.
Victoria's Secret & Company declined 4.9% to $17.06 after the lingerie retailer reported disappointing second quarter results.
The specialty retailer reported revenue of $1.43 billion and adjusted earnings per share of 26 cents.
Chewy Inc dropped 15.1% to $23.12 after the online pet food retailer said second quarter sales of $2.78 billion and diluted earnings per share of 4 cents.
The company said in a conference call with investors that active customers declined 0.6% to 20.4 million and customers are trading down amid high inflation.
Net sales for active customer increased 14.7% to $530 and auto customers sales increased 240 basis points to 75.5%.
Despite the customers substituting lower priced treats for pets, gross margin increased 20 basis points to 28.3%, indicating prudent promotional activities.
Net sales increased 14.3% to $2.78 billion and net income declined to $18.9 million from $22.3 million and diluted earnings per share fell to 4 cents from 5 cents a year ago.
Crowdstrike Holdings Inc jumped 7.6% to $160.21 after the cybersecurity company reported better-than-expected revenue and earnings.
The company reported second quarter adjusted earnings per share of 74 cents on revenue of $734 million.
Signet Jewelers Ltd increased 5.3% to $75.27 after the retailer reported better-than-expected quarterly results.
Sales in the second quarter ending in July declined 8.1% to $1.6 billion and same store sales plunged 12% from a year ago.
Same store sales in North America declined 12.2% and nonstore sales, which includes online sales, rose 5.2%, resulting in a decline of 7.1% to $1.5 billion.
Net income attributable to common shareholders plunged to $66.5 million from $136.8 million and diluted earnings per share fell to $1.38 from $2.56 a year ago.
The retailer guided third quarter sales to decline to between $1.36 billion and $1.41 billion and full-year revenue between $7.1 billion and $7.3 billion and diluted earnings per share between $9.55 and $10.64.
U.S. Stocks Rally Extend to 5th Session, Fed's Inflation Measure Inches Higher
Barry Adams
31 Aug, 2023
New York City
Market averages traded higher on the final day of the month as indexes are likely to stretch the latest winning streak to the fifth session in a row.
The latest market gains helped the S&P 500 index trim its August losses to 1% and the Nasdaq to 2% after a rally in tech stocks lifted broader indexes.
Core personal consumption expenditures index increased 0.2% in July from the previous month and jumped 4.2% from a year ago, the U.S. Bureau of Economic Analysis reported Thursday.
The core PCE index, which significantly understates inflation felt by most families, is the preferred inflation measure of the Federal Reserve.
The PCE index increased 0.2% from the previous month and rose 3.3% from a year ago.
The inflation reading shows prices are still rising at a faster pace, despite multiple rate hikes over the last sixteen months.
In other economic news, initial jobless claims adjusted for seasonal factors declined 4,000 to 228,000 in the week ending on August 26, the Labor Department reported Thursday.
Meanwhile, continuing claims rose 28,000 from the previous week's downwardly revised to 1.725 million in the week ending on August 19.
U.S. Indexes & Yields
The S&P 500 index traded up 0.3% to 4,528.90 and the Nasdaq Composite gained 0.5% to 14,095.94.
The yield on 2-year Treasury notes decreased to 4.89%, 10-year Treasury notes inched lower to 4.09% and 30-year Treasury bonds edged down to 4.20%.
West Texas Intermediate crude oil and Brent crude oil prices hovered near the levels last seen In April after a larger-than-expected weekly drawdown of weekly crude supplies last week.
Crude oil increased $1.48 to $83.11 a barrel and natural gas prices decreased 3 cents to $2.76 a thermal unit.
U.S. Stock Movers
Salesforce Inc jumped 4.9% to $226.0 after customer management software developer reported better-than-expected sales and earnings.
Revenue increased to$8.6 billion and adjusted diluted earnings per share of $2.12.
Costco Wholesale Corp increased 0.3% to $544.18 after the membership discount wholesale club said August sales increased 5% to $18.42 billion.
Five Below Inc declined 4.5% to $174.88 after the deep discount retailer forecasted weak third quarter results.
The retailer estimated revenue to fall between $715 million and $730 million and earnings per share between 17 cents and 25 cents, sharply lower than estimates set by some analysts.
Victoria's Secret & Company declined 4.9% to $17.06 after the lingerie retailer reported disappointing second quarter results.
The specialty retailer reported revenue of $1.43 billion and adjusted earnings per share of 26 cents.
Chewy Inc dropped 15.1% to $23.12 after the online pet food retailer said second quarter sales of $2.78 billion and diluted earnings per share of 4 cents.
Okta Inc jumped 14.2% to $83.83 and the identity access management reported sales and earnings ahead of market expectations.
Second quarter revenue increased to $556 million and adjusted earnings per share of 31 cents.
Crowdstrike Holdings Inc jumped 7.6% to $160.21 after the cybersecurity company reported better-than-expected revenue and earnings.
The company reported second quarter adjusted earnings per share of 74 cents on revenue of $734 million.
European Markets Trim August Losses, Euro Area Inflation Held at 5.3%
Bridgette Randall
31 Aug, 2023
New York City
European markets advanced and investors overlooked German retail sales and the Euro Area inflation data.
Market indexes on the last day of the month in London, Paris and Frankfurt traded higher but popular averages are set to close down between 2% and 3% in August.
In volatile trading this month, investors remained divided on the future rate path as stubborn inflation remained significantly ahead of the European Central Bank's target level of 2%.
Consumer price inflation in the eurozone remained unchanged at 5.3% in August, the European Central Bank reported Thursday.
On the other hand, core inflation rate, which excludes volatile food, energy and tobacco prices, cooled to 5.3% from 5.5% in July.
In other economic news in the region, the Euro Area seasonally adjusted jobless rate stayed at a record low of 6.4% in July, lower than 6.7% in the period a year ago, Eurostat reported Thursday.
Jobless rate was the lowest in Germany with 2.9% and was the highest in Spain at 11.6% followed by 7.6% in Italy and 7.4% in France.
Europe Indexes & Yields
The DAX index increased 0.6% to 15,987.41, the CAC-40 index declined 0.1% to 7,355.59 and the FTSE 100 index advanced 0.2% 7,487.89.
The yield on 10-year German bonds decreased to 2.48%, French bonds traded lower to 3.0%, the UK gilts edged down to 4.43% and Italian bonds fell to 4.13%.
The euro edged to the lowest level since mid-June on the hopes that the central is more likely to pause its rate hike campaign and assess the impact of the multiple rate hikes on the economy.
The euro edged lower to $1.087, the British pound to $1.267 and the U.S. dollar fetched 88.19 Swiss cents.
Brent crude increased $0.50 to $85.73 a barrel and the Dutch TTF natural gas decreased €0.87 to €36.86 per MWh.
Europe Stock Movers
Pernod Ricard SA dropped 4.5% to €185.65 after the French spirits maker said sales in key markets in China and the U.S. are likely to decline in the fiscal first quarter ending in September.
Sanofi SA gained 1% to €99.61 after the company reorganized its executive management team.
Grafton Group Plc increased 1.5% to 867.90 pence after the building materials supplier hiked its dividend and announced a new stock repurchase plan of up to £50 million.
Frasers Group Plc added 1.6% to 809 pence after the sportswear retailer lifted its stake in online retailer Boohoo to 9.1% from 7.8%.
Boohoo Group Plc jumped 4.5% to 34.85 pence.
UBS Group AG jumped 5.8% to CHF 23.47 after the Swiss banking group reported significantly higher earnings on higher revenue.
Profit-before-tax jumped to $29.23 billion, primarily reflecting a $28.9 billion negative goodwill related to the acquisition of Credit Suisse Group and including net credit loss expenses of $740 million.
Net profit attributable to shareholders was $28.88 billion, with diluted earnings per share of $8.99.
Return on CET1 capital was 185.0% or 4.5% excluding negative goodwill, integration-related expenses and acquisition costs.
Revenue in the second quarter jumped to $9.5 billion from $8.9 billion and net income jumped to $28.9 billion from $2.1 billion and diluted earnings per share soared to $8.99 from 61 cents a year ago.
Credit Suisse group's performance appears to be stabilizing and net deposit inflow in the second quarter was $18 billion, taking the total deposit inflow for the group including UBS increased to $23 billion.
Nasdaq and S&P 500 Trim August Losses After 4-day Rally
Barry Adams
30 Aug, 2023
New York City
Popular averages closed higher for the fourth day in a row as investors debated rate path after additional economic data.
On Wall Street advanced for the fourth day in a row and investors reviewed private sector payrolls and second quarter economic revision data.
Market sentiment was positive for the fourth day and tech stocks led gainers after investors reviewed the second jobs report in as many days.
The cooling trend in the job market reported by the JOLT report from the government was confirmed by the private sector payrolls data Wednesday.
Private sector payrolls expanded 177,000 in August, sharply lower than and downwardly revised 371,000 in July, the monthly survey released by ADP showed Wednesday.
ADP monthly data is far less reliable because of its inherent volatility and sharp revisions, but still the report confirmed its cooling job market trend after twelve rate hikes from the Federal Reserve over the last sixteen months.
Investors also reviewed the downward revision of the second quarter economic growth estimate.
Despite the recent market gains for the second week in a row, the Nasdaq Composite is down 2.3% in August and the S&P 500 index and the Dow Jones Industrial are down around 1.5%.
U.S. Q2 GDP Growth Rate Revised Lower
The second quarter U.S. economic growth was revised lower primarily reflecting adjustments in inventories, the U.S. Bureau of Economic Analysis said Wednesday.
The U.S. economy expanded at an annualized 2.1% in the second quarter, revised from the preliminary rate of2.4% and down from the first quarter's expansion of 2.0%, the statistical agency said in its second estimate.
Private inventory investment and nonresidential fixed investment were downwardly revised, and partly offset by an upwardly revised state and local government spending.
U.S. Indexes & Yields
The S&P 500 index traded up 0.4% to 4,514.87 and the Nasdaq Composite gained 0.5% to 14,019.31.
The yield on 2-year Treasury notes decreased to 4.89%, 10-year Treasury notes inched lower to 4.12% and 30-year Treasury bonds edged down to 4.23%.
West Texas Intermediate crude oil and Brent crude oil prices hovered near the levels last seen In April after a larger-than-expected weekly drawdown of weekly crude supplies last week.
Crude oil decreased $0.57 to $81.73 a barrel and natural gas prices increased 14 cents to $2.81 a thermal unit.
U.S. Stock Movers
Hewlett Packard Enterprise Company declined 3.2% to $16.29 after the company reported mixed quarterly results.
Revenue in the fiscal third quarter was $7 billion and adjusted earnings per share was 7 cents.
HP Inc fell 9.9% to $28.37 after the maker of personal computers and digital devices and systems reported weaker-than-expected fiscal third quarter revenue of $13.2 billion and adjusted earnings per share of 86 cents.
Insulet Corporation increased 4.8% to $198.91 after chief executive James Hollingshead reported purchasing of 5,500 shares in the medical device maker.
On Monday, the company announced the launch of the insulin delivery system Omnipod 5 in its third largest market Germany.
Box Inc dropped 8.9% to $27.77 after the cloud storage company reported mixed quarterly results.
PVH Corp rose 1% to $80.99 after the owner of several apparel brands including Calvin Klein reported strong quarterly results.
The apparel maker reported quarterly revenue increased to $2.21 billion and adjusted earnings per share to $1.98.
The company also lifted its full-year earnings per share and revenue outlook.
European Markets On Backfoot
European markets struggled after two days of gain and new inflation data weighed on the market sentiment.
Market indexes lacked direction in London, Paris and Frankfurt after inflation rebounded in Spain and some German states.
Spain's consumer inflation accelerated to 2.6% in August from 2.3% in July, National Statistics Institute reported Wednesday.
Investors have been cautious amid worries of hawkish stance from the European Central Bank and looming global slowdown following the uneven economic recovery in China and cooling job market in the U.S.
EU Passenger Car Sales Rose In July, Battery Share Expanded
Passenger vehicle sales in the European Union continued to increase for the twelfth month in a row, the European Automobile Manufacturers Association reported Wednesday.
New car registration increased 15.2% to 851,200 units in July after supply chain disruptions eased and production picked up.
Sales in four largest markets in the region rose as customers showed willingness to buy vehicles despite higher prices.
Passenger vehicle registration in France rose 19.9%, in Germany advanced 18.1%, Spain jumped 10.7% and Italy increased 8.7%.
Battery powered vehicles garnered a larger share of the total and sales increased to 13.6% from 9.8% a year earlier.
In the first seven months between January and July 2023, passenger vehicle sales increased 17.6% to 6.3 million.
Despite the sustained recovery over the last two years from the pandemic-era related supply disruption, sales in the seven-month period were 22% lower than in 2019.
Europe Indexes & Yields
The DAX index decreased 0.3% to 15,891.93, the CAC-40 index declined 0.1% to 7,364.40 and the FTSE 100 index advanced 0.1% 7,473.61.
The yield on 10-year German bonds decreased to 2.58%, French bonds traded lower to 3..10%, the UK gilts edged down to 4.45% and Italian bonds fell to 4.23%.
The euro edged to the lowest level since mid-June on the hopes that the central is more likely to pause its rate hike campaign and assess the impact of the multiple rate hikes on the economy.
The euro edged lower to $1.089, the British pound to $1.266 and the U.S. dollar fetched 87.94 Swiss cents.
Brent crude increased $0.22 to $85.70 a barrel and the Dutch TTF natural gas decreased €0.82 to €35.99 per MWh.
Europe Stock Movers
Prudential Plc increased 3.3% to 1,017.50 pence after the British insurance company said first-half operating profit increased 6% to $1.46 billion.
Adjusted net profit rebounded to $947 million compared to a loss of $1.5 billion in the previous year, as the insurance company sold more insurance products to mainland Chinese visitors in Hong Kong.
Sales of new insurance products soared 39% to $1.5 billion after sales in Indonesia advanced 42%, Africa 31%, Philippines 13% and Malaysia 12% but declined 5% in Singapore and 18% in Vietnam.
The company increased its interim dividend by 9% to 6.26 U.S. cents.
Instem Plc soared 40% to 825.0 pence after the UK-based software company agreed to be acquired by the U.S.-based private equity firm.
Orsted AS dropped 24% to DKK 424.80 after the Danish renewable energy firm issued an impairment alert of up to DKK 5 billion (or $730 million) in its U.S. portfolio.
Direct Line Insurance Group Plc decreased a fraction to 160.70 pence after the home and automobile insurer announced the appointment of Adam Winslow, a senior executive at rival Aviva.
Delivery Hero SE dropped 7.4% to €33.12 after the online food delivery service company reported operating and net loss in the first-half.
Movers: Box, HP Inc , HPE Company, Insulet, PVH Corp
Scott Peters
30 Aug, 2023
New York City
Hewlett Packard Enterprise Company declined 3.2% to $16.29 after the company reported mixed quarterly results.
Revenue in the fiscal third quarter was $7 billion and adjusted earnings per share was 7 cents.
HP Inc fell 9.9% to $28.37 after the maker of personal computers and digital devices and systems reported weaker-than-expected fiscal third quarter revenue of $13.2 billion and adjusted earnings per share of 86 cents.
Insulet Corporation increased 4.8% to $198.91 after chief executive James Hollingshead reported purchasing of 5,500 shares in the medical device maker.
On Monday, the company announced the launch of the insulin delivery system Omnipod 5 in its third largest market Germany.
Box Inc dropped 8.9% to $27.77 after the cloud storage company reported mixed quarterly results.
PVH Corp rose 1% to $80.99 after the owner of several apparel brands including Calvin Klein reported strong quarterly results.
The apparel maker reported quarterly revenue increased to $2.21 billion and adjusted earnings per share to $1.98.
The company also lifted its full-year earnings per share and revenue outlook.
U.S. Market Averages Extend 4-day Rally, Second Quarter GDP Growth Lowered
Barry Adams
30 Aug, 2023
New York City
Market indexes on Wall Street advanced for the fourth day in a row and investors reviewed private sector payrolls and second quarter economic revision data.
Market sentiment was positive for the fourth day and tech stocks led gainers after investors reviewed the second jobs report in as many days.
The job market cooling trend reported in the JOLT report by the government was confirmed by the private sector payrolls data Wednesday.
Private sector payrolls expanded 177,000 in August, sharply lower than and downwardly revised 371,000 in July, the monthly survey released by ADP showed Wednesday.
ADP monthly data is far less reliable because of its inherent volatility and sharp revisions, but still the report confirmed its cooling job market trend after twelve rate hikes from the Federal Reserve over the last sixteen months.
Investors also reviewed the downward revision of the second quarter economic growth estimate.
Despite the recent market gains for the second week in a row, the Nasdaq Composite is down 2.8% in August and the S&P 500 index and the Dow Jones Industrial are estimated to close down about 2%.
US Q2 GDP Growth Rate Revised Lower
The second quarter U.S. economic growth was revised lower primarily reflecting adjustments in inventories, the U.S. Bureau of Economic Analysis said Wednesday.
The U.S. economy expanded at an annualized 2.1% in the second quarter, revised from the preliminary rate of 2.4% and down from the first quarter's expansion of 2.0%, the statistical agency said in its second estimate.
Private inventory investment and nonresidential fixed investment were downwardly revised, and partly offset by an upwardly revised state and local government spending.
U.S. Indexes & Yields
The S&P 500 index traded up 0.1% to 4,402.91 and the Nasdaq Composite gained 0.03% to 13,948.65.
The yield on 2-year Treasury notes decreased to 4.84%, 10-year Treasury notes inched lower to 4.10% and 30-year Treasury bonds edged down to 4.23%.
West Texas Intermediate crude oil and Brent crude oil prices hovered near the levels last seen In April after a larger-than-expected weekly drawdown of weekly crude supplies last week.
Crude oil decreased $0.61 to $81.77 a barrel and natural gas prices increased 4 cents to $2.70 a thermal unit.
U.S. Stock Movers
Hewlett Packard Enterprise Company declined 3.2% to $16.29 after the company reported mixed quarterly results.
Revenue in the fiscal third quarter was $7 billion and adjusted earnings per share was 7 cents.
HP Inc fell 9.9% to $28.37 after the maker of personal computers and digital devices and systems reported weaker-than-expected fiscal third quarter revenue of $13.2 billion and adjusted earnings per share of 86 cents.
Insulet Corporation increased 4.8% to $198.91 after chief executive James Hollingshead reported purchasing of 5,500 shares in the medical device maker.
On Monday, the company announced the launch of the insulin delivery system Omnipod 5 in its third largest market Germany.
Box Inc dropped 8.9% to $27.77 after the cloud storage company reported mixed quarterly results.
PVH Corp rose 1% to $80.99 after the owner of several apparel brands including Calvin Klein reported strong quarterly results.
The apparel maker reported quarterly revenue increased to $2.21 billion and adjusted earnings per share to $1.98.
The company also lifted its full-year earnings per share and revenue outlook.
Europe Movers: Delivery Hero, Direct Line Insurance, Instem, Orsted, Prudential
Inga Muller
30 Aug, 2023
Frankfurt
European markets struggled on the worries of a rebound in inflation and looming economic slowdown after the U.S. second quarter GDP growth was revised lower to 2.0%
The DAX index decreased 0.3% to 15,886.16, the CAC-40 index declined 0.3% to 7,350.99 and the FTSE 100 index advanced 0.4% 7,483.65.
The yield on 10-year German bonds decreased to 2.58%, French bonds traded lower to 3..10%, the UK gilts edged down to 4.45% and Italian bonds fell to 4.23%.
Prudential Plc increased 3.3% to 1,017.50 pence after the British insurance company said first-half operating profit increased 6% to $1.46 billion.
Adjusted net profit rebounded to $947 million compared to a loss of $1.5 billion in the previous year, as the insurance company sold more insurance products to mainland Chinese visitors in Hong Kong.
Sales of new insurance products soared 39% to $1.5 billion after sales in Indonesia advanced 42%, Africa 31%, Philippines 13% and Malaysia 12% but declined 5% in Singapore and 18% in Vietnam.
The company increased its interim dividend by 9% to 6.26 U.S. cents.
Instem Plc soared 40% to 825.0 pence after the UK-based software company agreed to be acquired by the U.S.-based private equity firm.
Orsted AS dropped 24% to DKK 424.80 after the Danish renewable energy firm issued an impairment alert of up to DKK 5 billion (or $730 million) in its U.S. portfolio.
Direct Line Insurance Group Plc decreased a fraction to 160.70 pence after the home and automobile insurer announced the appointment of Adam Winslow, a senior executive at rival Aviva.
Delivery Hero SE dropped 7.4% to €33.12 after the online food delivery service company reported operating and net loss in the first-half.
European Markets On Backfoot, EU Passenger Vehicle Registrations Jumped 15%
Bridgette Randall
30 Aug, 2023
Frankfurt
European markets struggled after two days of gain and new inflation data weighed on the market sentiment.
Market indexes lacked direction in London, Paris and Frankfurt after inflation rebounded in Spain and some German states.
Spain's consumer inflation accelerated to 2.6% in August from 2.3% in July, National Statistics Institute reported Wednesday.
Investors have been cautious amid worries of hawkish stance from the European Central Bank and looming global slowdown following the uneven economic recovery in China and cooling job market in the U.S.
EU Passenger Car Sales Rose In July, Battery Share Expanded
Passenger vehicle sales in the European Union continued to increase for the twelfth month in a row, the European Automobile Manufacturers Association reported Wednesday.
New car registration increased 15.2% to 851,200 units in July after supply chain disruptions eased and production picked up.
Sales in four largest markets in the region rose as customers showed willingness to buy vehicles despite higher prices.
Passenger vehicle registration in France rose 19.9%, in Germany advanced 18.1%, Spain jumped 10.7% and Italy increased 8.7%.
Battery powered vehicles garnered a larger share of the total and sales increased to 13.6% from 9.8% a year earlier.
In the first seven months between January and July 2023, passenger vehicle sales increased 17.6% to 6.3 million.
Despite the sustained recovery over the last two years from the pandemic-era related supply disruption, sales in the seven-month period were 22% lower than in 2019.
Europe Indexes & Yields
The DAX index decreased 0.3% to 15,886.16, the CAC-40 index declined 0.3% to 7,350.99 and the FTSE 100 index advanced 0.4% 7,483.65.
The yield on 10-year German bonds decreased to 2.58%, French bonds traded lower to 3..10%, the UK gilts edged down to 4.45% and Italian bonds fell to 4.23%.
The euro edged to the lowest level since mid-June on the hopes that the central is more likely to pause its rate hike campaign and assess the impact of the multiple rate hikes on the economy.
The euro edged lower to $1.089, the British pound to $1.266 and the U.S. dollar fetched 87.94 Swiss cents.
Brent crude increased $0.26 to $85.77 a barrel and the Dutch TTF natural gas decreased €0.40 to €34.80 per MWh.
Europe Stock Movers
Prudential Plc increased 3.3% to 1,017.50 pence after the British insurance company said first-half operating profit increased 6% to $1.46 billion.
Adjusted net profit rebounded to $947 million compared to a loss of $1.5 billion in the previous year, as the insurance company sold more insurance products to mainland Chinese visitors in Hong Kong.
Sales of new insurance products soared 39% to $1.5 billion after sales in Indonesia advanced 42%, Africa 31%, Philippines 13% and Malaysia 12% but declined 5% in Singapore and 18% in Vietnam.
The company increased its interim dividend by 9% to 6.26 U.S. cents.
Instem Plc soared 40% to 825.0 pence after the UK-based software company agreed to be acquired by the U.S.-based private equity firm.
Orsted AS dropped 24% to DKK 424.80 after the Danish renewable energy firm issued an impairment alert of up to DKK 5 billion (or $730 million) in its U.S. portfolio.
Direct Line Insurance Group Plc decreased a fraction to 160.70 pence after the home and automobile insurer announced the appointment of Adam Winslow, a senior executive at rival Aviva.
Delivery Hero SE dropped 7.4% to €33.12 after the online food delivery service company reported operating and net loss in the first-half.
Movers: 3M Company, Best Buy, Big Lots, Cryptocurrencies Stocks, Heico, NIO
Scott Peters
29 Aug, 2023
New York City
Best Buy Co Inc fell 5.6% to $78.28 after the electronics retailer reported fiscal second quarter results ahead of market expectations.
The company also tightened its upper end of its full-year revenue outlook.
Big Lots Inc soared 31% to $8.22 after the deep discount retailer reported smaller-than-expected loss.
Big Lots said quarterly revenue rose to $1.14 billion and adjusted loss of earnings per share of $3.24.
Heico Corp declined 1.2% to $165.91 after the company said its operating margin declined from a year ago but quarterly results were ahead of market expectations.
Nio Inc declined 4.5% to $10.48 after the China-based electric vehicle maker reported a wider quarterly loss.
3M Company 1.9% to $106.10 after the company agreed to settle lawsuits related to defective military earplugs for $6.01 billion.
Cryptocurrency linked stocks advanced after a court ruled against the Securities and Exchange Commission in a suit related to spot bitcoin ETFs.
Marathon Digital jumped 27.5%, Coinbase Global soared 14.5% and Riot Platforms jumped 16.5%.
Tech Stocks Rallied and Treasury Yields Eased after Job Openings Dropped to 28-month Low
Barry Adams
29 Aug, 2023
New York City
Stocks on Wall Street advanced and tech stocks led gainers for the third day in a row.
Market averages jumped up after 10-year Treasury yields fell sharply following the release of the JOLT report by the U.S. Bureau of Labor Statistics.
The number of job openings declined by 338,000 from the previous month to 8.827 million in July, the lowest level since March 2021.
The job openings declined for the third month in a row, indicating the job market is gradually cooling after the Federal Reserve lifted rates twelve times over the last sixteen months.
Job openings increased in the West by 57,000 and in Northeast by 29,000 but fell in the South by 57,000 and in the Midwest by 69,000.
The job market cooling tempered the yield on 10-year Treasury notes to 4.11% after soaring as high as 4.33% a week ago.
Tech stocks advanced following the lower bond yields as the present value of the estimated future cash flow increased.
U.S. Indexes & Yields
The S&P 500 index traded up 0.7% to 4,462.73 and the Nasdaq Composite gained 1.0% to 13,843.77.
The yield on 2-year Treasury notes decreased to 4.91%, 10-year Treasury notes inched lower to 4.14% and 30-year Treasury bonds edged down to 4.24%.
West Texas Intermediate crude oil and Brent crude oil prices hovered near the levels last seen In April.
Crude oil decreased $0.06 to $80.02 a barrel and natural gas prices increased 1 cent to $2.67 a thermal unit.
U.S. Stock Movers
Best Buy Co Inc 5.6% to $78.28 after the electronics retailer reported fiscal second quarter results ahead of market expectations.
The company also lowered its tightened its upper end of its full-year revenue outlook.
Big Lots Inc soared 31% to $8.22 after the deep discount retailer reported smaller-than-expected loss.
Big Lots said quarterly revenue rose to $1.14 billion and adjusted loss of earnings per share of $3.24.
Heico Corp declined 1.2% to $165.91 after the company said its operating margin declined from a year ago but quarterly results were ahead of market expectations.
Nio Inc declined 4.5% to $10.48 after the China-based electric vehicle maker reported a wider quarterly loss.
3M Company 1.9% to $106.10 after the company agreed to settle lawsuits related to defective military earplugs for $6.01 billion.
Cryptocurrency linked stocks advanced after a court ruled against the Securities and Exchange Commission in a suit related to spot bitcoin ETFs.
Marathon Digital jumped 27.5%, Coinbase Global soared 14.5% and Riot Platforms jumped 16.5%.
European Markets Extended Gains, Spanish Retail Sales Accelerated In July
Bridgette Randall
29 Aug, 2023
Frankfurt
Stocks in Europe extended gains for the second day this week and investors focused on regional economic issues.
Market indexes in London rebounded after traders returned from a late summer bank holiday and bid up resource and energy stocks after investors reacted for the first time the China's capital market stimulus measures on Sunday.
Popular averages in Paris and Frankfurt extended gains for the second day after banks and energy stocks led the gainers.
Investors are divided about the future rate path in the Euro Area and interest rates are still not restrictive enough to bring down inflation to the 2% level preferred by the European Central Bank.
While central bankers are talking tough but policymakers are showing no urgency in bringing down inflation, after food, energy and housing price inflation shows no signs of abating.
The ECB President Christine Lagarde and others speak in hawkish tones but central bankers have avoided giving out a time table in lowering inflation below 2% level.
Spain's Retail Sales Accelerated In July
Spain's retail sales accelerated 7.3% in July from the upwardly revised 6.5% annual rate in June, the National Statistics Institute or INE reported Tuesday.
Retail sales increase was driven by a rise in non-food stores sales after personal equipment sales increased to an annual rate of 15.3% from 13.8%, other goods sales rose to 14.1% from 12% and home equipment sales advanced 1.2% from flat in the previous month.
On a monthly basis, retail sales inched up 0.2% after rising 0.3% in June.
Europe Indexes & Yields
The DAX index increased 0.4% to 15,849.79, the CAC-40 index advanced 0.4% to 7,351.61 and the FTSE 100 index 1.4% 7,440.19.
The yield on 10-year German bonds decreased to 2.57%, French bonds traded lower to 3.08%, the UK gilts edged down to 4.46% and Italian bonds fell to 4.22%.
The euro edged to the lowest level since mid-June on the hopes that the central is more likely to pause its rate hike campaign and assess the impact of the multiple rate hikes on the economy.
The euro edged lower to $1.081, the British pound to $1.258 and the U.S. dollar fetched 88.46 Swiss cents.
Brent crude decreased $0.76 to $85.18 a barrel and the Dutch TTF natural gas decreased €2.23 to €36.18 per MWh.
Europe Stock Movers
Technip Energies NV increased 0.8% €21.27 after the company was awarded a hydrogen production facility at its Kwinana biorefinery in Western Australia.
Evotec SE jumped 1.5% to €21.03 after the German drug and discovery firm narrowed its second quarter loss.
NN Group NV advanced 8.9% to €37.57 after the Dutch insurance group said its solvency improved in the first six months of 2023.
Standard Chartered PLC inched up 1.4% to 721.20 pence after the British lender agreed to sell its global aviation finance leasing unit.
Bunzl Plc added 2.7% to 2,798.0 after the business supplies distributor forecasted 2023 adjusted operating earnings in constant currencies to be moderately higher than in 2022.
Antofagasta, Anglo American and Glencore increased between 1% and 2% after copper prices rose and the dollar edged lower.