Market Update
Europe Movers: Air France KLM, Direct Line Insurance, Heidelberg Materials, Semiconductor Stocks, Volkswagen
Inga Muller
28 Nov, 2024
Frankfurt
European market indexes advanced, but gains were capped amid worries of political instability in France as three political groups struggled to compromise on the financial budget.
The DAX index increased by 0.7% to 19,395.90; the CAC-40 index rose by 0.7% to 7,189.77; and the FTSE 100 index inched higher by 0.04% to 8,278.46.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched down to 3.0%, the UK gilts edged lower to 4.35%, and Italian bonds decreased to 3.38%.
Semiconductor-related stocks advanced in Europe following speculation that the U.S. may impose weaker restrictions on advanced equipment sales to China.
ASML Holding NV jumped 4% to €653.10, NXP Semiconductor increased 1.4% to €215.0, STMicroelectronics added 0.2% to €23.90, and Infineon advanced 0.8% to €30.28.
Volkswagen Group increased 0.5% to €80.72, and the German automaker said it plans to shut its testing track in Xinjiang and factory for "economic reasons."
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The deal is anticipated to be finalized in the first quarter of 2025.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Direct Line Insurance Group soared 42% to 226.67 pence after the UK-based insurance company rejected a £3.3 billion offer from Aviva.
Air France KLM SA increased 2.4% to €7.43 on the report that the airline is looking to acquire a 20% stake in Air Europa.
Divided French Parliament Keeps European Markets On Edge, Spain's Inflation Accelerated
Bridgette Randall
28 Nov, 2024
London
European markets rebounded a day after falling sharply as investors shifted attention to tech stocks.
Benchmark indexes in Paris, Frankfurt, Milan, and London advanced, following speculation that the U.S. may weaken its stance on advanced semiconductor technology sales to China.
However, market gains were capped amid worries that budgetary disagreements may topple the minority government in France as three main political groups struggle to find a compromise.
France is struggling to lower its budget gap to 3% of GDP over the next three years, as required by the European Union, from 6.1% in 2024.
Benchmark indexes in Europe have struggled over the last month as weakness in private sector activities and political instability in France and Germany have been compounded by looming trade tensions with the U.S.
Spain's Inflation Accelerated to 4-Month High
Spain's annual consumer price inflation rose in November, reflecting a lower base and a rise in electricity and fuel prices.
Consumer price inflation increased to a four-month high of 2.4% from 1.8% in October, and the core rate, which excludes energy and fuel prices, slowed to 2.4% from 2.5% in the previous month.
On a monthly basis, consumer price inflation slowed to 0.2% from 0.6% in October.
EU-harmonized consumer price inflation rose 2.4% on an annual basis and was flat on a monthly basis.
Europe Indexes and Yields
The DAX index increased by 0.7% to 19,395.90; the CAC-40 index rose by 0.7% to 7,189.77; and the FTSE 100 index inched higher by 0.04% to 8,278.46.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched down to 3.0%, the UK gilts edged lower to 4.35%, and Italian bonds decreased to 3.38%.
The euro edged higher to $1.05; the British pound inched up to $1.26; and the U.S. dollar strengthened to 88.38 Swiss cents.
Brent crude increased $0.49 to $73.32 a barrel, and the Dutch TTF natural gas rose by €0.47 to €46.92 per MWh.
Europe Stock Movers
Semiconductor-related stocks advanced in Europe following speculation that the U.S. may impose weaker restrictions on advanced equipment sales to China.
ASML Holding NV jumped 4% to €653.10, NXP Semiconductor increased 1.4% to €215.0, STMicroelectronics added 0.2% to €23.90, and Infineon advanced 0.8% to €30.28.
Volkswagen Group increased 0.5% to €80.72, and the German automaker said it plans to shut its testing track in Xinjiang and factory for "economic reasons."
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The deal is anticipated to be finalized in the first quarter of 2025.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Direct Line Insurance Group soared 42% to 226.67 pence after the UK-based insurance company rejected a £3.3 billion offer from Aviva.
Air France KLM SA increased 2.4% to €7.43 on the report that the airline is looking to acquire a 20% stake in Air Europa.
Divided French Parliament Keeps European Markets On Edge, Spain's Inflation Accelerated
Bridgette Randall
28 Nov, 2024
London
European markets rebounded a day after falling sharply as investors shifted attention to tech stocks.
Benchmark indexes in Paris, Frankfurt, Milan, and London advanced, following speculation that the U.S. may weaken its stance on advanced semiconductor technology sales to China.
However, market gains were capped amid worries that budgetary disagreements may topple the minority government in France as three main political groups struggle to find a compromise.
France is struggling to lower its budget gap to 3% of GDP over the next three years, as required by the European Union, from 6.1% in 2024.
Benchmark indexes in Europe have struggled over the last month as weakness in private sector activities and political instability in France and Germany have been compounded by looming trade tensions with the U.S.
Spain's Inflation Accelerated to 4-Month High
Spain's annual consumer price inflation rose in November, reflecting a lower base and a rise in electricity and fuel prices.
Consumer price inflation increased to a four-month high of 2.4% from 1.8% in October, and the core rate, which excludes energy and fuel prices, slowed to 2.4% from 2.5% in the previous month.
On a monthly basis, consumer price inflation slowed to 0.2% from 0.6% in October.
EU-harmonized consumer price inflation rose 2.4% on an annual basis and was flat on a monthly basis.
Europe Indexes and Yields
The DAX index increased by 0.7% to 19,395.90; the CAC-40 index rose by 0.7% to 7,189.77; and the FTSE 100 index inched higher by 0.04% to 8,278.46.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched down to 3.0%, the UK gilts edged lower to 4.35%, and Italian bonds decreased to 3.38%.
The euro edged higher to $1.05; the British pound inched up to $1.26; and the U.S. dollar strengthened to 88.38 Swiss cents.
Brent crude increased $0.49 to $73.32 a barrel, and the Dutch TTF natural gas rose by €0.47 to €46.92 per MWh.
Europe Stock Movers
Semiconductor-related stocks advanced in Europe following speculation that the U.S. may impose weaker restrictions on advanced equipment sales to China.
ASML Holding NV jumped 4% to €653.10, NXP Semiconductor increased 1.4% to €215.0, STMicroelectronics added 0.2% to €23.90, and Infineon advanced 0.8% to €30.28.
Volkswagen Group increased 0.5% to €80.72, and the German automaker said it plans to shut its testing track in Xinjiang and factory for "economic reasons."
Heidelberg Materials AG advanced 1% to €118.85, and the German cement company agreed to acquire the US-based Giant Cement and its subsidiaries for $600 million.
Inmocemento SA gained 5.4% to €3.16, and the Mexican billionaire Carlos Slim-controlled company said its subsidiary, Cementos Portland Valderrivas, will sell its 45% stake in Giant Cement Holding to Heidelberg Materials North America.
The transaction is expected to bring a cash inflow of about $200 million and a capital gain of $145 million for CPV.
The deal is anticipated to be finalized in the first quarter of 2025.
Heidelberg last month commenced the sale of its cement operation in India to Adani Group for $1.2 billion, but at the time said it plans to move away from cement to higher value-added building materials businesses.
Heidelberg and its larger Swiss rival Holcim AG have been ramping up their activities in the U.S. as the world's largest economy ramps up infrastructure building.
Earlier in the year, in June, Heidelberg acquired three cement and building materials companies in the U.S. for $380 million.
Direct Line Insurance Group soared 42% to 226.67 pence after the UK-based insurance company rejected a £3.3 billion offer from Aviva.
Air France KLM SA increased 2.4% to €7.43 on the report that the airline is looking to acquire a 20% stake in Air Europa.
Resurgent Yen Keeps Rebound In Japan Indexes In Check After Two Days of Slide
Akira Ito
28 Nov, 2024
Tokyo
Bargain hunting was in full swing in Tokyo as investors returned and looked for stocks in the tech, retail, and property sectors.
The Nikkei 225 stock average increased 0.7%, the Topix index advanced 0.8%, and the yen advanced to a one-month high.
The yen edged up 0.3% to 151.24 on widespread speculation that the Bank of Japan is likely to raise rates by 25 basis points at the end of its policy in three weeks.
Stronger yen boosts the values of Japanese assets but lowers foreign earnings of corporations, and about 40% of the listed companies in Japan have significant export revenues.
Crude oil continued to drift lower ahead of the OPEC+ meeting on Sunday, and commodity traders are looking for the group to postpone January's planned production increase amid weak demand growth and supply glut.
Japan imports about 99% of its crude oil, and fossil fuels provide about 88% of the country's energy.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.7% to 38,408.78, and the broader Topix index added 0.8% to 2,687.26.
T&D jumped 12.7% to ¥2,821.50 after the company made positive statements about its life insurance business at a meeting with investors on Wednesday.
The company reiterated its plans to pay a cash dividend of 80 yen per share in the current fiscal year.
Dai-ichi Life Holdings increased 3.2% to ¥3,906.0, and Tokio Marine Holdings decreased 0.5% to¥5,541.0.
Among the widely held stocks, Casio Computer jumped 6.5% to ¥1,138.50, Toho Co. Ltd. advanced 2.2% to ¥6,322.0, and Tokyo Gas Co. Ltd. increased 1.3% to ¥4,429.0.
Stocks leading the decliners included pharma stocks, select tech stocks, and industrial conglomerates.
Sumitomo Pharma decreased 3.2% to ¥583.0, Ricoh Co. Ltd. fell 4.5% to ¥1,672.0, and Mitsubishi Electric eased 0.1% to ¥2,545.0.
Seven & I Holdings Co. Ltd. increased 1.2% to ¥2,608.0, Isetan Mitsukoshi advanced 1.1% to ¥2,173.0, and the parent company of Uniqlo, Fast Retailing, decreased 0.2% to ¥51,090.0.
Resurgent Yen Keeps Rebound In Japan Indexes In Check After Two Days of Slide
Akira Ito
28 Nov, 2024
Tokyo
Bargain hunting was in full swing in Tokyo as investors returned and looked for stocks in the tech, retail, and property sectors.
The Nikkei 225 stock average increased 0.7%, the Topix index advanced 0.8%, and the yen advanced to a one-month high.
The yen edged up 0.3% to 151.24 on widespread speculation that the Bank of Japan is likely to raise rates by 25 basis points at the end of its policy in three weeks.
Stronger yen boosts the values of Japanese assets but lowers foreign earnings of corporations, and about 40% of the listed companies in Japan have significant export revenues.
Crude oil continued to drift lower ahead of the OPEC+ meeting on Sunday, and commodity traders are looking for the group to postpone January's planned production increase amid weak demand growth and supply glut.
Japan imports about 99% of its crude oil, and fossil fuels provide about 88% of the country's energy.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.7% to 38,408.78, and the broader Topix index added 0.8% to 2,687.26.
T&D jumped 12.7% to ¥2,821.50 after the company made positive statements about its life insurance business at a meeting with investors on Wednesday.
The company reiterated its plans to pay a cash dividend of 80 yen per share in the current fiscal year.
Dai-ichi Life Holdings increased 3.2% to ¥3,906.0, and Tokio Marine Holdings decreased 0.5% to¥5,541.0.
Among the widely held stocks, Casio Computer jumped 6.5% to ¥1,138.50, Toho Co. Ltd. advanced 2.2% to ¥6,322.0, and Tokyo Gas Co. Ltd. increased 1.3% to ¥4,429.0.
Stocks leading the decliners included pharma stocks, select tech stocks, and industrial conglomerates.
Sumitomo Pharma decreased 3.2% to ¥583.0, Ricoh Co. Ltd. fell 4.5% to ¥1,672.0, and Mitsubishi Electric eased 0.1% to ¥2,545.0.
Seven & I Holdings Co. Ltd. increased 1.2% to ¥2,608.0, Isetan Mitsukoshi advanced 1.1% to ¥2,173.0, and the parent company of Uniqlo, Fast Retailing, decreased 0.2% to ¥51,090.0.
Investor Gloom Grip China Stocks A Day After Posting Largest Gain In Five Weeks
Li Chen
28 Nov, 2024
Hong Kong
Stocks in China and Hong Kong retreated a day after indexes surged the most in five weeks.
The Hang Seng index dropped 1.3% and the mainland-focused CSI 300 index decreased 0.8% amid a lack of catalysts and fading investor enthusiasm.
Benchmark indexes have declined 16% from the peak on October 7 after the monetary and fiscal stimulus measures failed to impress investors.
Last month, Chinese lawmakers offered support to local governments with a plan to swap hidden debt of 10 trillion yuan, and local authorities lowered restrictions for new home purchases.
However, those measures did not go far enough to boost consumption and stabilize the property market. adding to the market gloom.
China stocks are likely to stay rangebound with a downward bias until corporate earnings show a clear trend of a rebound or the government enacts wide-ranging measures to support consumption.
China Stock Movers
The Hang Seng index decreased 1.3% to 19,344.07, and the mainland-focused CSI 300 index fell 0.8% to 3,875.99.
Online store and platform operators were in focus amid an ongoing consumer slowdown and ahead of earnings from Meituan on Friday.
Alibaba Group declined 2.2% to HK $83.15, Tencent dropped 0.5% to $400.60, JD.com fell 0.4% to HK $142.0, and Meituan decreased 0.3% to HK $171.80.
Property stocks extended losses for the third week in a row after fiscal measures failed to stabilize the moribund property market.
China Vanke Ltd. decreased 0.6% to HK $6.24, China Resources Land fell 1.5% to HK $22.90, Henderson Land Development dropped 0.4% to $24.60, and Sun Hung Kai Properties eased 0.4% to HK $77.0.
Banks struggled to advance amid ongoing worries that the property market losses are still not fully reflected on their balance sheets.
Bank of China declined 1.1% to HK $3.58, China Merchants Bank dropped 1.7% to HK $34.90, China Construction Bank eased 1.4% to HK $5.82, and ICBC fell 1.5% to HK $5.82.
S.F. Holding Co. Ltd. declined 1.2% to ¥41.35, and a day ago the China's largest express delivery company listed its stock on the Hong Kong Stock Exchange and raised HK $5.83 billion in a public offering.
Investor Gloom Grip China Stocks A Day After Posting Largest Gain In Five Weeks
Li Chen
28 Nov, 2024
Hong Kong
Stocks in China and Hong Kong retreated a day after indexes surged the most in five weeks.
The Hang Seng index dropped 1.3% and the mainland-focused CSI 300 index decreased 0.8% amid a lack of catalysts and fading investor enthusiasm.
Benchmark indexes have declined 16% from the peak on October 7 after the monetary and fiscal stimulus measures failed to impress investors.
Last month, Chinese lawmakers offered support to local governments with a plan to swap hidden debt of 10 trillion yuan, and local authorities lowered restrictions for new home purchases.
However, those measures did not go far enough to boost consumption and stabilize the property market. adding to the market gloom.
China stocks are likely to stay rangebound with a downward bias until corporate earnings show a clear trend of a rebound or the government enacts wide-ranging measures to support consumption.
China Stock Movers
The Hang Seng index decreased 1.3% to 19,344.07, and the mainland-focused CSI 300 index fell 0.8% to 3,875.99.
Online store and platform operators were in focus amid an ongoing consumer slowdown and ahead of earnings from Meituan on Friday.
Alibaba Group declined 2.2% to HK $83.15, Tencent dropped 0.5% to $400.60, JD.com fell 0.4% to HK $142.0, and Meituan decreased 0.3% to HK $171.80.
Property stocks extended losses for the third week in a row after fiscal measures failed to stabilize the moribund property market.
China Vanke Ltd. decreased 0.6% to HK $6.24, China Resources Land fell 1.5% to HK $22.90, Henderson Land Development dropped 0.4% to $24.60, and Sun Hung Kai Properties eased 0.4% to HK $77.0.
Banks struggled to advance amid ongoing worries that the property market losses are still not fully reflected on their balance sheets.
Bank of China declined 1.1% to HK $3.58, China Merchants Bank dropped 1.7% to HK $34.90, China Construction Bank eased 1.4% to HK $5.82, and ICBC fell 1.5% to HK $5.82.
S.F. Holding Co. Ltd. declined 1.2% to ¥41.35, and a day ago the China's largest express delivery company listed its stock on the Hong Kong Stock Exchange and raised HK $5.83 billion in a public offering.
Caution Prevails On Dalal Street Amid Earnings Slowdown
Arjun Pandit
28 Nov, 2024
Mumbai
Stocks in Mumbai traded sideways, and the rupee hovered near the record low.
The Sensex index decreased 0.03% to 80,204.45, and the Nifty index was up 0.01% to 24,275.80.
Market sentiment was mildly positive on Dalal Street as investors debated the future economic outlook in the face of a sharp slowdown in earnings growth.
Consumer products and vehicle makers have struggled in the last two quarters amid a slowdown in demand growth and weak earnings growth.
Moreover, investors are worried that the Reserve Bank of India may not be in a hurry to lower interest rates in the near future, further providing headwind to the sale of property, vehicles, and appliances.
In international trading, crude oil prices continued to drift lower after the Israeli military and Hezbollah agreed to a tentative ceasefire, eliminating the risk of crude oil supply disruptions.
India Stock Movers
KEC International edged lower 0.3% to ₹1,021.05, and the company said it won an order worth 1,704 crore from Power Grid Corporation for 765 kV electricity transmission lines and distribution stations.
Aster DM Healthcare Ltd. soared 9% to ₹480.0 in the previous session after the company said it plans to acquire the remaining 13% stake in Aster Aadhar Hospital, previously known as Prerana Hospital.
Oceanic Foods Ltd. decreased 4.4% to₹45.0 after the company agreed to pay ₹12.2 lakh fine to the Securities and Exchange Board of India for violating disclosure requirements.
Sudarshan Chemical Industries increased 0.9% to ₹989.0, and the two promoters of the company sold 3% stake in the company for ₹197 crore through open market transactions.
Pradeep Ramwilas Rathi sold 7.6 lakh shares, and Subhadra Pradeep Rathi sold 20.75 lakh shares in the company.
The Finance Ministry has issued approval to raise as much as ₹25,000 crore through equity offerings to public sector banks in the current fiscal year and meet a regulatory requirement of 25% minimum public shareholding.
Bank of India increased 0.9% to ₹112.55, and the company raised ₹5,000 crore through the sale of infrastructure bonds with a coupon rate of 7.41%.
Bank of Baroda gained 0.1% to ₹246.65, and the company raised ₹3,500 crore through the sale of bonds with a coupon rate of 7.4%.
Godrej Properties advanced 1.6% to ₹2,883.05, and the company launched a secondary offering to raise as much as ₹6,000 crore.
Caution Prevails On Dalal Street Amid Earnings Slowdown
Arjun Pandit
28 Nov, 2024
Mumbai
Stocks in Mumbai traded sideways, and the rupee hovered near the record low.
The Sensex index decreased 0.03% to 80,204.45, and the Nifty index was up 0.01% to 24,275.80.
Market sentiment was mildly positive on Dalal Street as investors debated the future economic outlook in the face of a sharp slowdown in earnings growth.
Consumer products and vehicle makers have struggled in the last two quarters amid a slowdown in demand growth and weak earnings growth.
Moreover, investors are worried that the Reserve Bank of India may not be in a hurry to lower interest rates in the near future, further providing headwind to the sale of property, vehicles, and appliances.
In international trading, crude oil prices continued to drift lower after the Israeli military and Hezbollah agreed to a tentative ceasefire, eliminating the risk of crude oil supply disruptions.
India Stock Movers
KEC International edged lower 0.3% to ₹1,021.05, and the company said it won an order worth 1,704 crore from Power Grid Corporation for 765 kV electricity transmission lines and distribution stations.
Aster DM Healthcare Ltd. soared 9% to ₹480.0 in the previous session after the company said it plans to acquire the remaining 13% stake in Aster Aadhar Hospital, previously known as Prerana Hospital.
Oceanic Foods Ltd. decreased 4.4% to₹45.0 after the company agreed to pay ₹12.2 lakh fine to the Securities and Exchange Board of India for violating disclosure requirements.
Sudarshan Chemical Industries increased 0.9% to ₹989.0, and the two promoters of the company sold 3% stake in the company for ₹197 crore through open market transactions.
Pradeep Ramwilas Rathi sold 7.6 lakh shares, and Subhadra Pradeep Rathi sold 20.75 lakh shares in the company.
The Finance Ministry has issued approval to raise as much as ₹25,000 crore through equity offerings to public sector banks in the current fiscal year and meet a regulatory requirement of 25% minimum public shareholding.
Bank of India increased 0.9% to ₹112.55, and the company raised ₹5,000 crore through the sale of infrastructure bonds with a coupon rate of 7.41%.
Bank of Baroda gained 0.1% to ₹246.65, and the company raised ₹3,500 crore through the sale of bonds with a coupon rate of 7.4%.
Godrej Properties advanced 1.6% to ₹2,883.05, and the company launched a secondary offering to raise as much as ₹6,000 crore.
U.S. Movers: Dell Technologies, HP Inc, Workday
Scott Peters
27 Nov, 2024
New York City
Dell Technologies declined 12.8% to $124.32 after the company posted weaker-than-expected fiscal third quarter results.
Revenue in the third quarter ending on November 1 increased 10% to $24.4 billion from $22.3 billion, net income advanced 12% to $1.1 billion from $1.0 billion, and diluted earnings per share rose 16% to $1.58 from $1.36 a year earlier.
“AI is a robust opportunity for us with no signs of slowing down,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies.
“Interest in our portfolio is at an all-time high, driving record AI server orders demand of $3.6 billion in Q3 and a pipeline that grew more than 50%, with growth across all customer types.”
HP Inc. dropped 7.7% to $36.09 after the personal computing company estimated weaker-than-expected adjusted earnings in the fiscal 2025 first quarter.
The company estimated fiscal 2025 first quarter diluted earnings per share between 57 cents and 63 cents and for the full-year fiscal 2025 between $3.06 and $3.36.
The company estimated adjusted earnings between 70 cents and 76 cents, sharply lower than as much as 83 cents estimated by some analysts.
Net revenue increased 1.7% to $14.1 billion from $13.8 billion, net income decreased 7% to $0.9 billion from $1 billion, and diluted earnings per share fell 4% to 93 cents from 97 cents a year ago.
HP returned $1.2 billion to shareholders in the fourth quarter, including $900 million to repurchase 25.4 million of its own stock and $263 million in dividend payment of 27.56 cents per share.
Workday Inc. plunged 12% to $238.0 after the human resource software company estimated lower-than-expected revenue and operating margin in the fourth quarter.
The software company estimated subscription revenue of $2.025 billion and an operating margin of 25% in the period.
Revenue in the fiscal third quarter ending in September increased 15.8% to $2.1 billion from $1.8 billion, net income advanced to $193 million from $114 million, and diluted earnings per share rose to 72 cents from 43 cents a year ago.
Workday repurchased approximately 0.6 million shares of Class A common stock for $157 million as part of its share repurchase programs.
U.S. Movers: Dell Technologies, HP Inc, Workday
Scott Peters
27 Nov, 2024
New York City
Dell Technologies declined 12.8% to $124.32 after the company posted weaker-than-expected fiscal third quarter results.
Revenue in the third quarter ending on November 1 increased 10% to $24.4 billion from $22.3 billion, net income advanced 12% to $1.1 billion from $1.0 billion, and diluted earnings per share rose 16% to $1.58 from $1.36 a year earlier.
“AI is a robust opportunity for us with no signs of slowing down,” said Jeff Clarke, vice chairman and chief operating officer, Dell Technologies.
“Interest in our portfolio is at an all-time high, driving record AI server orders demand of $3.6 billion in Q3 and a pipeline that grew more than 50%, with growth across all customer types.”
HP Inc. dropped 7.7% to $36.09 after the personal computing company estimated weaker-than-expected adjusted earnings in the fiscal 2025 first quarter.
The company estimated fiscal 2025 first quarter diluted earnings per share between 57 cents and 63 cents and for the full-year fiscal 2025 between $3.06 and $3.36.
The company estimated adjusted earnings between 70 cents and 76 cents, sharply lower than as much as 83 cents estimated by some analysts.
Net revenue increased 1.7% to $14.1 billion from $13.8 billion, net income decreased 7% to $0.9 billion from $1 billion, and diluted earnings per share fell 4% to 93 cents from 97 cents a year ago.
HP returned $1.2 billion to shareholders in the fourth quarter, including $900 million to repurchase 25.4 million of its own stock and $263 million in dividend payment of 27.56 cents per share.
Workday Inc. plunged 12% to $238.0 after the human resource software company estimated lower-than-expected revenue and operating margin in the fourth quarter.
The software company estimated subscription revenue of $2.025 billion and an operating margin of 25% in the period.
Revenue in the fiscal third quarter ending in September increased 15.8% to $2.1 billion from $1.8 billion, net income advanced to $193 million from $114 million, and diluted earnings per share rose to 72 cents from 43 cents a year ago.
Workday repurchased approximately 0.6 million shares of Class A common stock for $157 million as part of its share repurchase programs.
U.S. and Global Markets Look Beyond U.S. Policy Uncertainty, Europe's Political Turmoil, and China's Slowdown
Alexander Garcia
27 Nov, 2024
Miami
Wall Street indexes lacked direction in a holiday-shortened week as investors reviewed the latest updates on GDP, jobless claims, and alternative measures of inflation.
The S&P 500 index decreased 0.5%, and the Nasdaq Composite fell 1.1% after the release of the PCE price index at 10:00 a.m. ET.
The annual personal consumption expenditures price index edged higher to 2.3% in October from 2.1% in September, and the core index, which excludes food and energy, advanced to 2.8% from 2.7% in the previous month.
The alternative measure of inflation understates the inflation faced by most families because it accounts for consumers substituting cheaper products to meet monthly needs.
The U.S. GDP growth in the third quarter was estimated at 2.8% in the second estimate, and initial jobless claims stayed near historic low levels, confirming strong economic expansion and historically tight labor market conditions.
U.S. Third Quarter GDP Growth Unrevised
The U.S. economy expanded at an annual rate of 2.8% in the third quarter, matching the preliminary estimate, according to the U.S. Bureau of Economic Analysis.
Private inventory investment and nonresidential fixed investment were upwardly revised, and consumer spending and exports were downwardly revised. Imports, which are subtracted in the GDP calculations, were revised down.
The annual rate of GDP growth in the second quarter was 3.0% and 1.6% in the first quarter.
U.S. Jobless Claims Hover Near Historic Lows
Initial jobless claims declined by 2,000 to 213,000 in the week ending on November 23, indicating that the job market remains tight.
Continuing jobless claims, which lag by one week, for the week ending on November 16 increased by 9,000 to 1.907 million, the U.S. Department of Labor said.
The labor market historically remains strong despite the Federal Reserve's eleven rate hikes over 2022 and 2023, and the latest data gives more room to policymakers to slow down the potential rate cut should inflation remain stubbornly high.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.5% to 5,991.73, the Nasdaq Composite fell 1.1% to 18,970.23, and the Russell 2000 index inched higher 0.2% to 2,431.85.
The yield on 2-year Treasury notes edged lower to 4.22%, 10-year Treasury notes inched lower to 4.26%, and 30-year Treasury bonds decreased to 4.45%.
WTI crude oil decreased $0.42 to $68.33 a barrel, and natural gas prices edged down 21 cents to $3.25 a thermal unit.
Gold increased by $3.86 to $2,636.11 an ounce, and silver declined by $0.38 to $30.02.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower by 0.59 to 106.41.
U.S. Stock Movers
Dell Technologies declined 12.8% to $124.32 after the company posted weaker-than-expected fiscal third quarter results.
HP Inc. dropped 7.7% to $36.09 after the personal computing company estimated weaker-than-expected adjusted earnings in the fiscal 2025 first quarter.
The company estimated adjusted earnings between 70 cents and 76 cents, sharply lower than as much as 83 cents estimated by some analysts.
Workday Inc. plunged 12% to $238.0 after the human resource software company estimated lower-than-expected revenue and operating margin in the fourth quarter.
The software company estimated subscription revenue of $2.025 billion and an operating margin of 25% in the period.
French Political Turmoil and Budgetary Disagreements Could Bring Down Government
European stock markets traded down, and the spread between French and German bond yields widened amid rising political tensions in France.
Benchmark indexes in Paris, Frankfurt, Milan, and London declined 0.1% and 1.2% as lawmakers haggle to pass a financial budget for the next year.
France is struggling to lower its deficit to GDP ratio to 3%, the level required by the European Union, as lawmakers oppose spending cuts on the left and tax increases on the right.
The French government deficit is expected to rise to 6% in 2024, and the minority government headed by technocratic leader Michel Barnier is likely to collapse if an agreement is not struck by December 25.
The current budget proposal calls for spending cuts of €40 billion and a tax increase of €20 billion, including higher taxes on electricity and a delay in inflation adjustment to pension payments.
Two years ago, France increased the retirement age from 62 in increments of three months every year until the age reached 64 in 2030.
The yield spread between French and German bonds widened to 0.9 percentage points, the highest level since 2012, as French lawmakers struggle to find a compromise.
French political turmoil comes at a time when China is looking to revive its economic growth through higher exports, the United States is reverting to protectionist policies, and German politicians are divided ahead of elections as the country flirts with a recession.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 19,244.31; the CAC-40 index fell by 0.8% to 7,138.12; and the FTSE 100 index rose by 0.1% to 8,274.75.
The yield on 10-year German bonds edged lower to 2.15%, French bonds inched down to 3.01%, the UK gilts edged lower to 4.30%, and Italian bonds decreased to 3.42%.
The euro edged higher to $1.05; the British pound inched up to $1.26; and the U.S. dollar strengthened to 88.18 Swiss cents.
Brent crude decreased $0.16 to $72.62 a barrel, and the Dutch TTF natural gas fell by €0.11 to €46.46 per MWh.
Europe Stock Movers
French banks were under pressure amid political turmoil that could lead to the collapse of the current minority government.
Société Générale dropped 4% to €24.42, BNP Paribas fell 2.2% to €55.09, and AXA SA decreased 5% to €31.94.
Just Eat Takeaway.com NV declined 0.5% to €14.79 after the food delivery company announced its plans to delist from the London Stock Exchange, citing low trading volume and high listing costs.
The food delivery company plans to keep its listing on the Euronext Amsterdam.
Grifols SA plunged 12.8% to €9.28 on local reports that the Canada-based Brookfield Asset Management is likely to drop its plans to acquire the Spanish pharmaceutical firm.
easyJet increased 0.6% to 543.80 pence after the deep discount airline reported a 25% rise in full-year operating profit following a second record summer in a row.
Johnson Matthey PLC plunged 6.5% to 1,396.0 pence after the specialty chemical and sustainable technology firm reported a decline in sales and earnings in the six months to September.
Japan Indexes 2-Day Decline Erases This Week's Gains
Stock market indexes in Tokyo edged lower for the second day in a row, and the yen rebounded.
The Nikkei 225 stock average declined 1% and the broader Topix index dropped 1.2% as investors debated the Bank of Japan's move next month.
The yen strengthened 0.5% to 152.26 against the U.S. dollar amid speculation that the Bank of Japan may raise interest rates again at the end of its two-day policy meeting on December 19.
A stronger yen dampens the profit outlook for Japan's export-driven companies, and about 40% of the listed companies in Japan have more than 10% of sales originating in foreign markets.
Investors are looking forward to the release of Tokyo area inflation data on Friday, and the capital region's inflation is generally seen as a bellwether trend for the national inflation.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 1% to 38,064.41, and the broader Topix index fell 1.2% to 2,658.34.
Volatile tech stocks led the decliners in Wednesday's trading in Tokyo.
Advantest Corp. declined 3.7% to ¥8,502.0, Tokyo Electron decreased 1.9% to ¥22,205.0, Disco Corp. advanced 1% to ¥41,800.0, and Softbank Corp. eased 0.1% to ¥191.30.
Keisei Electric Railway Co. Ltd. jumped 4.6% to ¥4,634.0, and Oriental Land increased 3.2% to ¥3,547.0 after an activist investor took a stake in the railway company.
Automobile stocks faced selling pressure for the second day in a row amid worries of rising trade tensions with the U.S. and growing competition from Chinese electric vehicles.
Toyota Motor decreased 3.5% to ¥2,573.50, Honda Motor fell 2.7% to ¥1,297.0, Nissan Motor plunged 4.7% to ¥373.70, and Mitsubishi Motors Corp. eased 4.7% to ¥404.50.
Nissan Chemical declined 3.2% to ¥5,302.0, and Mitsubishi Chemical Group fell 5.5% to ¥795.90.
China Indexes Rebound After Decline In Industrial Profit Slows In October
Market sentiment in China and Hong Kong recovered after profit decline at large companies slowed in October.
The Hang Seng index increased 0.4%, and the CSI 300 index gained 0.9% following the release of industrial profits updates at large Chinese companies.
Profits at large industrial Chinese companies declined 10% from a year ago in October to 5,868.04 billion, the National Bureau of Statistics reported Wednesday.
The annual profit decline slowed from a 27% fall in the previous month, amid uneven economic recovery, a depressed property market, and weak consumer demand.
In the first ten months of the year to October, profit decline accelerated to 4.3% from 3.5% in the previous period.
Profits at the state-owned companies declined 8.2% from a 6.5% fall in the period between January and September, while at the private sector companies, they fell at a much slower pace of 1.3% from 9.6% in the period ending in September.
China Stock Movers
The Hang Seng index increased 0.4% to 19,239.85, and the CSI 300 index advanced 0.9% to 3,875.78.
Chow Tai Fook Jewellery Group Ltd. increased 5.4% to HK $7.23, and the retailer announced a stock repurchase plan of up to HK $2 billion or $257 million.
Record gold prices negatively impacted the demand for high-end jewelry. Same-store sales were down 25.4% at mainland China locations and fell 30.8% in Hong Kong and Macau.
The retailer said revenue in the six-month period to September declined 20% to HK $39.4 billion from $49.5 billion, net income attributable to shareholders fell 22% to HK $2.5 billion from HK $4.5 billion, and diluted earnings per share decreased to 25 HK cents from 46 HK cents a year ago.
The company lowered its interim dividend to HK 20 cents from HK 25 cents a year ago.
Meituan increased 2.7% to HK $168.70 ahead of the company's financial results on Friday, and the shopping platform operator extended year-to-date gains to 112%.
Real estate developers in mainland China and Hong Kong traded mixed but retained a downward bias amid a lack of catalyst.
China Vanke decreased 0.7% to HK $6.04, China Resources Land fell and edged up 0.9% to HK $22.85, New World Development edged up 1% to $6.79, Sun Hung Kai Properties advanced 1.3% to $76.65, and Henderson Land increased 1% to HK $24.50.
S.F. Holding Co. Ltd. edged up a fraction to HK $34.45 after the express delivery company priced its initial public offering at HK $34.30 per share and sold 170 million shares.
China's largest courier company raised HK $5.83 billion, the second largest listing in Hong Kong this year, and the company eyes international expansion.
India Indexes Downside Muted After Crude Oil Prices Extended Recent Decline
Stocks in Mumbai lacked direction in early trading as investors reviewed the latest corporate updates.
The Sensex index increased 0.2% to 80,020.44, and the Nifty index edged down 0.1% to 24,184.0.
Market indexes have struggled to shake off weakness over the last five weeks amid an outflow of foreign funds, but steady inflows of funds from domestic investors have muted the negative impact.
In addition, the sharp fall in crude oil prices over the last nine trading sessions has trimmed the market decline as Israel and Hezbollah are nearing a ceasefire agreement.
Crude oil prices have dropped more than 20% from their peak of $86.64 in May and traded at a two-year low in international markets.
Despite the volatile market conditions over the last three weeks, the Sensex and the Nifty have advanced more than 11% in the year so far as of the close of Tuesday.
India Stock Movers
Siemens Ltd. decreased 1.3% to ₹7,255.0 after the engineering and equipment company reported its quarterly results.
Consolidated net income in the fiscal third quarter ending in September increased to ₹830.7 crore from ₹571.3 crore a year ago.
UltraTech Cement declined 3.3% to ₹11,110.85, and Kesoram Industries dropped 2.7% to ₹212.84 after the National Company Law Tribunal approved the merger plan of two companies.
NTPC Green is set to commence its trading on exchanges today after the company priced its initial public offering towards the upper end of the filing range at ₹108 per share and raised ₹10,000 crore.
Angel One Ltd. increased 4.8% to ₹2,935.0, and the company received an approval from the SEBI to launch its mutual funds business.
Nippon Life India Asset Management advanced 1.7% to ₹705.85, and the company acquired two commercial properties at One Lodha Place located in the Lower Parel area in Mumbai, according to the filings with the city's registration authority.
Devyani International Ltd. declined 0.2% to ₹166.45, and Sreejit Madhavan Nair, chief executive of its Costa Coffee operations, submitted his resignation effective January 8, 2025.
Kamalajeet Bedi will assume the role of CEO of Costa Coffee and the airport business.