Market Update
Industrial Production Advanced 0.4% In March
Brian Turner
14 Apr, 2023
New York City
Industrial production increased 0.4% from the previous month in March and rose 0.2% from a year ago, the Federal Reserve reported Friday.
The industrial production index increased 0.5% from a year ago.
The index for utilities increased 8.4% in March boosted by heating demand after the return to a more seasonal weather following a mild February.
Manufacturing and mining output fell 0.5% and capacity utilization increased to 79.8%, a rate 0.1 percentage point above the long run fifty year average.
Gasoline Sales Fall Powered March Retail Sales Decline
Brian Turner
14 Apr, 2023
New York City
Retail sales in March declined 1% from the month, following a downwardly revised 0.2% decline in February, the U.S. Census Bureau reported Friday.
Retail sales from a year ago increased 2.9% and in the first quarter to March rose 5.4% from the previous year.
The retail sales data are not adjusted for inflation, meaning real sales probably declined more as consumers battle high inflation and rising interest rates weigh on consumer behavior.
Lower gasoline prices drove sales at pump stations by 5.5% from the previous month, general merchandise stores sales fell 3%, building materials and garden equipment sales decreased 2.1%, electronics and appliances sales fell 2.1% and motor vehicle sales at dealers eased 1.6%.
Retail sales at food and beverage stores eased 0.1% from the previous month but rose 5.0% from a year ago.
Sales at nonstore retailers increased 1.9% from the previous month but rose 12.3% from a year ago and inched up 0.1% from the previous month but rose 13.0% from a year ago at food services and drinking places.
Investors Turn Cautious After Weak Retail Sales Despite Strong Results from Leading Banks
Barry Adams
14 Apr, 2023
New York City
Stocks trended lower after investors digested latest earnings from large banks and weak retail sales reports.
JPMorgan Chase, Wells Fargo, Citigroup, PNC Financial reported quarterly earnings reports that matched or exceeded investor expectations.
Earnings reports provided fresh insights in the health of the financial system after the collapse of Silicon Valley Bank.
Megabanks in many ways are beneficiaries of the developing stress in the regional banks as rapid rise in interest rates impact treasury securities held-to-maturity accounts.
Investors turned cautious after retail sales unexpectedly fell in March, reflecting wild swings in gasoline prices at pump stations and higher base effect.
Unadjusted Retail Sales Declined In March
Retail sales in March declined 1% from the month, following a downwardly revised 0.2% decline in February, the U.S. Census Bureau reported Friday.
Retail sales from a year ago increased 2.9% and in the first quarter to March rose 5.4% from the previous year.
The retail sales data are not adjusted for inflation, meaning real sales probably declined more as consumers battle high inflation and rising interest rates weigh on consumer behavior.
Lower gasoline prices drove sales at pump stations by 5.5% from the previous month, general merchandise stores sales fell 3%, building materials and garden equipment sales decreased 2.1%, electronics and appliances sales fell 2.1% and motor vehicle sales at dealers eased 1.6%.
Retail sales at food and beverage stores eased 0.1% from the previous month but rose 5.0% from a year ago.
Sales at nonstore retailers increased 1.9% from the previous month but rose 12.3% from a year ago and inched up 0.1% from the previous month but rose 13.0% from a year ago at food services and drinking places.
Industrial Production Advanced In March
Industrial production increased 0.4% from the previous month in March and rose 0.2% from a year ago, the Federal Reserve reported Friday.
The industrial production index increased 0.5% from a year ago.
The index for utilities increased 8.4% in March boosted by heating demand after the return to a more seasonal weather following a mild February.
Manufacturing and mining output fell 0.5% and capacity utilization increased to 79.8%, a rate 0.1 percentage point above the long run fifty year average.
Indexes & Yields
The S&P 500 index fell 0.2% to 4,139.33 and the Nasdaq Composite index dropped 0.4% to 12,117.48.
The yield on 2-year Treasury notes increased to 4.09%, 10-year Treasury notes rose to 3.50% and 30-year Treasury bonds increased to 3.72%.
Crude oil price increased 42 cents to $82.56 a barrel and natural gas price was unchanged at $2.01 a thermal unit.
U.S. Stock Movers
BlackRock Inc traded nearly unchanged at $670.21 after the financial services company reported first quarter results.
Boeing Co declined 6.1% to $220.55 after the aerospace company said it may have to lower delivery of its 737 Max planes because of fittings used in aft fuselage made by Spirit AeroSystems.
Boeing clarified that the "non-safety issue" is not expected to affect the panes in service but will impact a number of undelivered planes.
Spirit AeroSystems Holdings Inc plunged 14.4% to $30.45 and the company said it will work with Boeing and "continue to coordinate closely with our customer to resolve this matter and minimize impacts while maintaining our focus on safety."
Earlier in the week, Boeing said it delivered 113 737 planes in the first quarter and delivered 130 commercial airplanes, including 11 787 airplanes, in the period.
Citigroup Inc increased 2% to $48.25 after the global bank reported first quarter revenues ahead of expectations.
Express Inc increased 18% to 67 cents after the company and WHP Global agreed to acquire e-commerce brand Bonbons from Walmart.
JPMorgan Chase & Co increased 5.7% to $136.32 after the New York based bank reported record revenue in its latest quarter.
Lucid Group Inc declined 9% to $7.51 after the luxury electric vehicle maker said it delivered fewer of its sedans than it produced in the first quarter, indicating weak customer demand.
PNC Financial Services Group increased 1.3% to $123.05 after the company reported quarterly results and recorded provision for credit losses lower than in the previous quarter.
Wells Fargo & Co increased 4.2% to $41.30 after the California based bank reported higher-than-expected revenue and earnings in the first quarter.
Movers: BlackRock, Boeing, Citigroup, Express, JPMorgan, Lucid, PNC Financial, Wells Fargo, Spirit AeroSystems
Scott Peters
14 Apr, 2023
New York City
BlackRock Inc traded nearly unchanged at $670.21 after the financial services company reported first quarter results.
Boeing Co declined 6.1% to $220.55 after the aerospace company said it may have to lower delivery of its 737 Max planes because of fittings used in aft fuselage made by Spirit AeroSystems.
Boeing clarified that the "non-safety issue" is not expected to affect the panes in service but will impact a number of undelivered planes.
Spirit AeroSystems Holdings Inc plunged 14.4% to $30.45 and the company said it will work with Boeing and "continue to coordinate closely with our customer to resolve this matter and minimize impacts while maintaining our focus on safety."
Earlier in the week, Boeing said it delivered 113 737 planes in the first quarter and delivered 130 commercial airplanes, including 11 787 airplanes, in the period.
Citigroup Inc increased 2% to $48.25 after the global bank reported first quarter revenues ahead of expectations.
Citigroup said revenue in the first quarter increased 12% to $21.4 billion and net income rose to $4.6 billion from $4.3 billion and diluted earnings per share increased to $2.19 from $2.02 a year ago.
Deposits at the end of the quarter were nearly unchanged at $1.3 trillion and loans declined 1% from a year ago to $652 billion.
Cost of credit or provision for credit losses increased to $2.0 billion in the first quarter from $0.8 billion a year ago, primarily driven by higher credit balances and weakening of macroeconomic conditions.
Express Inc increased 18% to 67 cents after the company and WHP Global agreed to acquire e-commerce brand Bonbons from Walmart.
JPMorgan Chase & Co increased 5.7% to $136.32 after the New York based bank reported record revenue in its latest quarter.
JPMorgan said first quarter revenue jumped 25% to $38.3 billion and net income soared 52% to $12.6 billion from $8.28 billion and diluted earnings per share increased to $4.10 from $2.63 a year ago.
Provision for credit losses rose to $2.27 billion from $1.46 billion a year ago. Return on equity jumped to 18% in the first quarter of 2023 from 13% and return on assets increased to 1.38% from 0.86% a year ago.
Lucid Group Inc declined 9% to $7.51 after the luxury electric vehicle maker said it delivered fewer of its sedans than it produced in the first quarter, indicating weak customer demand.
PNC Financial Services Group increased 1.3% to $123.05 after the company reported quarterly results and recorded provision for credit losses lower than in the previous quarter.
PNC said total revenue in the first quarter increased 19% to $5.6 billion and net income rose to $1.7 billion from $1.4 billion and diluted earnings per share increased to $3.98 from $3.23 a year ago.
Net interest rate margin in the first quarter decreased to 2.82% from 2.92% in the fourth quarter of 2022 but rose from 2.28% in the quarter a year ago. Average deposits in the quarter dropped to $436.2 billion from $453.3 billion but average loans increased to $325. 5 billion from $290.7 billion a year ago.
Wells Fargo & Co increased 4.2% to $41.30 after the California based bank reported higher-than-expected revenue and earnings in the first quarter.
Wells Fargo said total revenue in the first quarter increased 17% to $20.7 billion and net income soared 32% to $4.99 billion from $3.79 billion and diluted earnings per share rose to $1.23 from 91 cents a year ago.
Net interest margin increased to 3.20% in the first quarter 2023 from 3.14% in the fourth quarter 2022 and 2.16% a year ago. Average deposits in the quarter declined 7% from a year ago to $1.356 trillion from $1.464 trillion, loans increased 6% to $948.7 billion and assets fell 3% to $1.863 trillion.
Europe Movers: 888 Holdings, Dechra Pharma, Hermes, YouGov, TomTom
Bridgette Randall
14 Apr, 2023
Frankfurt
Dechra Pharmaceuticals plc soared 34% to 3,732.0 after the veterinary products maker confirmed it is in talks with private equity group EQT for a possible offer of £4.63 billion.
Hermes International SCA increased 1.1% to €1,966.80 after the French luxury products maker said sales in the first quarter increased 22% to €3.38 billion.
Sales in Europe increased 22.9%, Asia jumped 20.9% and in the Americas 23.9%.
YouGov Plc increased 2.3% to 880 pence after the company appointed Steve Hatch as its next chief executive.
TomTom NV advanced 5.3% to €8.0 after the Dutch navigation firm returned to profit in the first quarter.
Group revenue in the first quarter increased 10% to €140.7 million from €128.4 million and net income swung to €3 million from a loss of €21.5 million and earnings per share to 2 cents from a loss of 17 cents a year ago.
888 Holdings Plc soared 17.9% to 72.89 pence after the online sports betting and gambling company reported a double-digit increase in annual revenue.
Group revenue in the fiscal year ending in March surged 74% to £1,238.8 million, and adjusted operating income increased 82% to £217.9 million, including the purchase of William Hill on July 1, 2022.
Proforma profit declined to 64 .2 million from 82.6 million and earnings per share fell to 15.1 pence from 22.2 pence a year ago, adjusting for the William Hill transaction.
European Markets In Longest Winning Streak In Four Months Hoping Monetary Pause
Bridgette Randall
14 Apr, 2023
Frankfurt
Benchmark indexes in Europe extended gains after inflation indexes in France and Germany eased.
Germany's wholesale prices index fell sharply in March and French consumer price index eased following the sharp decline in energy prices.
Cooling inflation trends in the U.S. and Europe raised hopes that the central bankers are nearing an end to aggressive rate increase cycle and may pause after the next meeting in May.
Singapore held its monetary policy tightening and also lowered its estimate of economic growth in 2023.
Singapore joined other central banks in India, Australia, Canada and South Korea that already paused rate hikes.
Stocks in the Eurozone opened higher and extended gains ahead of the start of earnings season in the U.S. and Europe.
Investors are awaiting earnings results from U.S. banks and benchmark indexes are set for their longest weekly advance since early December.
German Wholesale Inflation Fell Sharply In March
The German wholesale price index declined for the sixth month in a row and slipped to the rate last seen in January 2021, the Federal Statistics Office or Destatis reported Friday.
On a monthly basis, the wholesale price index increased 0.2% after rising 0.1% in February.
Wholesale price index over the year increased 2.0% in March, slower than 8.9% in February, reflecting a sharp negative swing in energy and petrochemical related products.
Prices of materials and residues decreased 29%, petroleum products decreased 17.9% and metals and ores dropped 14.1%.
However, prices of food, beverages and tobacco increased 16.4%, reflecting meat and meat products price increase of 20.0%, fruits, vegetables and potatoes 20% and milk and dairy products, eggs, edible oils and fats 19.6% and building materials and elements 19.8%.
Wholesale price inflation has been on the decline after peaking at 23.6% in March 2022.
French Consumer Price Inflation Slowed in March
France's consumer price index inflation slowed to 5.7% annual rate in March, from 6.3% increase in February, the statistical office Insee reported Friday.
The final estimate of consumer inflation was revised higher from the flash estimate of 5.6%.
Indexes & Yields
The DAX index increased 0.4% to 15,788.0, the CAC-40 index rose 0.3% to 7,500.77 and the FTSE 100 index advanced 0.3% to 7,868.80.
The yield on 10-year German Bunds increased to 2.36%, French bonds to 2.87%, the UK gilts to 3.56% and Italian bonds to 4.21%.
The euro inched higher to $1.106, the British pound to $1.251 and the Swiss franc to 88.75 cents.
Brent crude oil increased 10 cents to $86.19 a barrel and the Dutch TTF natural gas eased 60 cents to 41.49 per MWh.
Europe Stock Movers
Dechra Pharmaceuticals plc soared 34% to 3,732.0 after the veterinary products maker confirmed it is in talks with private equity group EQT for a possible offer of £4.63 billion.
Hermes International SCA increased 1.1% to €1,966.80 after the French luxury products maker said sales in the first quarter increased 22% to €3.38 billion.
Sales in Europe increased 22.9%, Asia jumped 20.9% and in the Americas 23.9%.
YouGov Plc increased 2.3% to 880 pence after the company appointed Steve Hatch as its next chief executive.
TomTom NV advanced 5.3% to €8.0 after the Dutch navigation firm returned to profit in the first quarter.
888 Holdings Plc soared 17.9% to 72.89 pence after the online sports betting and gambling company reported a double-digit increase in annual revenue.
Group revenue in the fiscal year ending in March surged 74% to £1,238.8 million, and adjusted operating income increased 82% to £217.9 million, including the purchase of William Hill on July 1, 2022.
Proforma profit declined to 64 .2 million from 82.6 million and earnings per share fell to 15.1 pence from 22.2 pence a year ago, adjusting for the William Hill transaction.
Asian Markets Track New York Gains, Singapore Holds Rates and Lowers Growth Estimate
Arjun Pandit
14 Apr, 2023
Mumbai
Asian markets traded higher following overnight gains in the U.S. after inflation and rate-hike worries eased.
On Thursday wholesale price index and on Wednesday consumer price index showed waning inflation pressures, reflecting volatile but falling energy prices.
Wholesale price inflation index unexpectedly fell in March and consumer price index declined for the ninth month in a row.
Asian markets track Wall Street swings as the region's export driven economies rely on the market developments in the world's largest economy.
Investors are hoping that the two inflation reports this week may convince the Federal Reserve to pause future rate hikes after the next meeting in early May.
Singapore Left Currency Band Unrevised
The Monetary Authority of Singapore left its key lending rate unrevised after five interest rate hikes in a row since October 2021.
MAS maintains an indirect control on its interest rate by widening or tightening the currency band, known as Singapore dollar nominal effective exchange rate (S$Neer).
MAS said it will retain its current rate of currency appreciation, which will help the nation pay for pricier imports but also keeping the current exchange rate in place will not impact its ability to export.
After the MAS policy announcement, the Singapore dollar declined as much as 0.5% but managed to recover to $1.325.
Singapore's economy expanded only 0.1% in the first quarter on an annual basis after rising at 2.1% in the final quarter of 2022, the Ministry of Trade and Industry said Friday.
The ministry also lowered its estimate of annual economic growth in 2023 by 0.5 percentage point to 2.5%, from 3.6% in the previous year.
The MAS also left its 2023 estimate of core inflation, which excludes housing and private transportation, between 3.5% and 4.5% and overall inflation between 5.5% and 6.5%.
Indexes & Yields
Stocks in Tokyo advanced following the gains in overnight trading in New York but markets in Shanghai and Hong Kong were muted.
The Nikkei index increased 1.1% to 28,462.21, the Hang Seng Index added 0.2% to 20,391.29 and the SSE Composite index advanced 0.5% to 3,334.17.
Financial markets in India were closed for Ambedkar Jayanti.
Asia Stock Movers
Stocks in Hong Kong lacked direction but funds controlled by mainland China added exposure to large tech companies.
BYD, Geely Auto, HSBC and Alibaba Group added between 0.5% and 1.5% but Tencent Holdings fell 0.2%, JD.com declined 1.5% and Baidu fell 4.1%.
Mainland China controlled funds increased their exposure to Hong Kong listed stocks for the tenth week in a row, adding $10 billion of stocks according to the data available from Stock Connect.
Fast Retailing Company Limited soared 8.5% to ¥32,840.00 after the parent of Uniqlo reported operating profit in the first-half to February jumped to ¥220 billion from ¥189 billion a year ago.
The retailer also lifted its full-year profit estimate to ¥360 billion from ¥350 billion forecast in January.
Infosys Limited declined 8.2% to $15.69 in New York trading after the India-based global tech services provider reported weaker-than-expected quarterly results.
Revenue in the March quarter increased 6.4% to $4.6 billion and net income declined to $744 million from $752 million and diluted earnings per share held at 18 cents.
For the fiscal year 2023 ending in March, revenue increased 11.7% to $18.2 billion and net income was stable at $2.9 billion and diluted earnings per share was 71 cents compared to 70 cents a year ago.
The company guided fiscal year 2024 revenue to rise between 4% and 7% in constant currency and operating margin between 20% and 22%.
Weaker Inflation Reports and Earnings Optimism Power Market Rally
Barry Adams
13 Apr, 2023
New York City
Rate optimism ruled on Wall Street after the second inflation report confirmed waning inflation pressures.
The wholesale inflation index cooled more than expected in March, a second inflation report confirming the slowing inflation trend.
The measure of wholesale prices eased in March largely because of a significant decline in volatile energy prices and higher base effect.
The second inflation report in as many days confirmed that the inflation path is downward but price increase is slowing but still faster than preferred by the Federal Reserve.
Moreover, real interest rates are still negative and not restrictive and labor market conditions are still tight, supporting the case for higher interest rates.
Despite the cooling of inflation, policymakers are likely to lift rates higher by 25 basis points in early May, because stubborn inflation pressures are well anchored in the economy.
Stocks also advanced on the hopes that JP Morgan Chase, Wells Fargo, Citigroup and Bank of America may report stronger-than-expected quarterly results.
Airlines scaled higher after Delta Air reported record advanced booking for summer travel.
Fastenal Co, the distributor of industrial fasteners to leading construction and manufacturing sites, reported stable costs and sustained demand from customers led to higher-than-expected first quarter earnings.
Fastenal's earnings may signal industrial and construction activities may be in better conditions than previously anticipated.
March Wholesale Price Index Eased
The producer price index in March fell 0.5% from the previous month, the U.S. Bureau of Labor Statistics reported Thursday. Core wholesale prices paid by companies decreased 0.1% on a monthly basis after rising 0.2% in February.
Wholesale prices rose 2.7% on an annual basis in March and core prices, excluding food and energy, increased 3.4%.
Lower cost of energy and higher base also impacted the overall inflation reading. Two-thirds of the decline can be attributable to 1.0% decrease in final demand for goods, namely gasoline or energy materials.
U.S. Indexes & Yields
The S&P 500 index increased 1.3% to 4,147.87 and the Nasdaq Composite index added 2.063% to 12,171.31.
The yield on 2-year Treasury notes decreased to 3.93%, 10-year Treasury notes declined to 3.39% and 30-year Treasury bonds to 3.63%.
Crude oil fell 89 cents to $82.36 a barrel and natural gas futures for immediate month delivery fell 6 cents to $2.01 a thermal unit.
U.S. Stock Movers
Delta Air Lines, Inc increased 0..2% to $33.87 after the company forecasted June quarter earnings per share between $2.0 and $2.25 and full-year earnings per share between $5.0 and $6.0 and free cash flow of $2.0 billion.
"With record advance bookings for the summer, we expect June quarter revenue to be 15% to 17% higher on capacity growth of 17% year over year," said Glen Hauenstein, Delta's president.
Delta said March quarter operating revenue rose 36% to $12.8 billion and net loss shrank 61% to $363 million from $940 million and diluted loss per share fell to 57 cents from $1.48 a year ago.
Delta's strong summer booking lifted United Airlines Holdings by 1.4% and American Airlines Group by 0.6%.
Infosys Ltd declined 8.2% to %15.69 after the India-based global tech services provider reported weaker-than-expected quarterly results.
Revenue in the March quarter increased 6.4% to $4.6 billion and net income declined to $744 million from $752 million and diluted earnings per share held at 18 cents.
For the fiscal year 2023, revenue increased 11.7% to $18.2 billion and net income was stable at $2.9 billion and diluted earnings per share was 71 cents compared to 70 cents a year ago.
The company guided fiscal year 2024 revenue to rise between 4% and 7% in constant currency and operating margin between 20% and 22%.
Record High French Index, German Index Extended 2023 Gain
European market indexes traded at one-month high as investors looked beyond the recent banking crisis and scaled new peaks in Germany and France.
The German benchmark index traded above 15,700 and extended this year's gain to 11.7% and the French index traded at a new high and extended 2023's gain to 13.3%.
Investors have been bidding up stocks after months of inflation and economic slowdown worries. The elevated inflation and economic slowdown are not preventing large corporations from reporting rising sales and profits.
LVMH, the largest luxury products maker in the world reported a surge in first quarter sales and the British grocery store Tesco forecasted flat profit in the new fiscal year.
German Inflation In March Weakened but Stayed Elevated
German inflation rate weakened in March but stayed elevated, the latest data from Destatis showed Thursday.
Consumer price index in March rose at a slower annual pace of 7.4%, after rising at 8.4% in February and January.
On a monthly basis, the inflation index rose 0.8%.
On a harmonized basis, the inflation index increased 7.8% from a year ago and 1.1% from the previous month.
"The inflation rate has weakened, but remains at a high level," says Ruth Brand, President of the Federal Statistical Office.
Food price increase accelerated to 22.3% in March, following 21.8% in February and 20.2% in January.
Inflation in March excluding energy prices was 7.8% and excluding food and energy prices was 5.8%.
UK Economy Stagnates After Strikes Dip Service Output
The UK economy stagnated in February and January's growth was upwardly revised to 0.4%, the Office for National Statistics reported Thursday.
Growth in January was revised up from the previous estimate of 0.3% increase.
GDP increased 0.1%% in the three months to February and ahead by 0.3% to the pre-coronavirus levels.
Industrial production declined 0.2% in February after falling 0.5% in January but services output fell 0.1% following strikes in education and public sector following the rise of 0.7% in January respectively.
On a yearly basis, GDP accelerated 0.5% in February after rising at 0.4% in January.
Europe Indexes & Yields
The DAX index increased 25.86 points to 15,729.46, the CAC-40 index added 1.1% to 7,480.83 and the FTSE 100 index gained 18.54 points to 7,843.38.
The yield on 10-year German Bunds held at 2.36%, French bonds at 2.88%, the UK gilts at 3.57% and Italian bonds at 4.22%.
The euro inched higher to $1.10, the British pound edged higher to $1.25 and the Swiss franc edged up to 89.08 cents.
Brent crude oil fell $1.06 to $86.28 a barrel and the Dutch TTF natural gas fell 38 cents to Є42.49 per MWh.
Europe Movers
Oxford Instruments Plc increased 3.9% to 2,540.0 pence after the maker of advanced technology products for industrial companies said sales are ahead of expectations in the current fiscal year.
LVMH Moet Hennessy Louis Vuitton SE increased 4.4% to €873.30 after the luxury products maker said first quarter sales increased 17% from a year ago partly driven by the surge in China demand and the rebound in international travel.
Imperial Brands Plc decreased 1.4% to 1,851.50 pence after the cigarette maker forecasted a decline in first-half revenue following its exit from Russia.
Tesco Plc increased 1.7% to 272.0 pence after the UK-based grocer reported a rise in annual sales. The company also forecasted flat profit in the new fiscal year.
Revenue in the fiscal year 2023 ending in February rose to £65.8 billion from £61.3 billion and after-tax net income declined to £744 million from £1.48 billion and diluted earnings per share fell to 10.08 pence from 19.64 pence a year ago.
"We expect to be able to deliver a broadly flat level of retail adjusted operating profit in 2023-24 and retail free cash flow within our target range of £1.4 billion to £1.8 billion," said the company in the earnings statement released Thursday.
Europe Movers: Imperial Brands, Lloyds Banking, LVMH, Oxford Instruments, Smurfit Kappa, Tesco
Bridgette Randall
13 Apr, 2023
Frankfurt
Oxford Instruments Plc increased 3.9% to 2,540.0 pence after the maker of advanced technology products for industrial companies said sales are ahead of expectations in the current fiscal year.
Lloyds Banking Group PLC decreased 3.1% to 48.31 pence and the company is scheduled to pay 1.6 pence dividend on May 22 to shareholders on record on April 12.
LVMH Moet Hennessy Louis Vuitton SE increased 4.4% to €873.30 after the luxury products maker said first quarter sales increased 17% from a year ago partly driven by the surge in China demand and the rebound in international travel.
Imperial Brands Plc decreased 1.4% to 1,851.50 pence after the cigarette maker forecasted a decline in first-half revenue following its exit from Russia.
Smurfit Kappa Group Plc decreased 2.3% or 68 pence to 2,952.0 pence and the company is scheduled to pay 107.6 euro cents dividend on May 12 to shareholders on record on the close of April 14.
Tesco Plc increased 1.7% to 272.0 pence after the UK-based grocer reported a rise in annual sales. The company also forecasted flat profit in the new fiscal year.
Revenue in the fiscal year 2023 ending in February rose to £65.8 billion from £61.3 billion and after-tax net income declined to £744 million from £1.48 billion and diluted earnings per share fell to 10.08 pence from 19.64 pence a year ago.
"We expect to be able to deliver a broadly flat level of retail adjusted operating profit in 2023-24 and retail free cash flow within our target range of £1.4 billion to £1.8 billion," said the company in the earnings statement released Thursday.
Movers: Delta Air Lines, Fastenal, Infosys, Progressive Corp
Scott Peters
13 Apr, 2023
New York City
Delta Air Lines, Inc increased 0..2% to $33.87 after the company forecasted June quarter earnings per share between $2.0 and $2.25 and full-year earnings per share between $5.0 and $6.0 and free cash flow of $2.0 billion.
"With record advance bookings for the summer, we expect June quarter revenue to be 15% to 17% higher on capacity growth of 17% year over year," said Glen Hauenstein, Delta's president.
Delta said March quarter operating revenue rose 36% to $12.8 billion and net loss shrank 61% to $363 million from $940 million and diluted loss per share fell to 57 cents from $1.48 a year ago.
Delta's strong summer booking lifted United Airlines Holdings by 1.4% and American Airlines Group by 0.6%.
Fastenal Co fell 2.2% $51.44 after the company reported first quarter results ahead of market expectations.
First quarter ales increased 9.1% to $1.86 billion and net income rose 9.5% to $295.1 million from $269.6 million and diluted earnings per share rose to 52 cents from 47 cents a year ago.
Price increases impacted net sales between 290 and 320 basis points in the quarter, in addition to between 580 and 610 basis points increase in the quarter a year ago.
Infosys Ltd declined 8.2% to $15.69 after the India-based global tech services provider reported weaker-than-expected quarterly results.
Revenue in the March quarter increased 6.4% to $4.6 billion and net income declined to $744 million from $752 million and diluted earnings per share held at 18 cents.
For the fiscal year 2023, revenue increased 11.7% to $18.2 billion and net income was stable at $2.9 billion and diluted earnings per share was 71 cents compared to 70 cents a year ago.
The company guided fiscal year 2024 revenue to rise between 4% and 7% in constant currency and operating margin between 20% and 22%.
Progressive Corporation decreased 6.7% to $138.20 after the company reported March quarter results.
Net premium written in the quarter rose 22% to $16.1 billion and net income soared 43% to $447.9 million from $313.9 million and diluted earnings per share increased to 75 cents from 52 cents a year ago.
Total revenues increased 21% to $14.3 billion from $11.8 billion a year ago.
The personal and commercial auto insurer said net premium earned in March increased 17% to $4.3 billion but swung to a loss of $151.8 million from a profit of $226.5 million and diluted earnings per share of ($0.26) from $0.38 a year ago.
Progressive said it reduced the impact from Hurricane Ian on its vehicle insurance business by $40 million or about 0.9% on a companywide basis.
The March results took a dive after the insurance company said unfavorable prior year accident years development of $146.5 million, about 55% related to its personal auto products and a majority form the recently passed legislation in Florida.