ticker

U.S. Movers: Charles Schwab, McCormick & Co, Stellantis

Scott Peters
01 Oct, 2024
New York City

Charles Schwab Corporation declined 1.6% to $63.75, and the company announced the retirement of chief executive Walt Bettinger at the end of the year.

Charles Schwab President Rick Wurster is slated to assume the leadership role at the start of the new year.

Stellantis NV declined 1.9% to $13.78 and extended its loss for the second day in a row after the automaker plans to halt production of the electric Fiat 500 until the end of November.

McCormick & Company increased 0.7% to $82.84 after the spice maker reported better-than-expected revenue and earnings.

The spice and flavoring company reported net sales in the edge to $1.67 billion from $1.68 billion, net income increased to $223.1 million from $170.1 million, and diluted earnings per share to 83 cents from 63 cents.

The company reaffirmed its sales and operating profit outlook, and estimated adjusted earnings per share between $2.85 and $2.90.

U.S. Indexes Waver Awaiting Manufacturing Surveys and Labor Market Updates

Barry Adams
01 Oct, 2024
New York City

Wall Street indexes edged lower after finishing higher in the previous month and third quarter.

The S&P 500 index decreased 0.9% and the Nasdaq Composite declined 1.2% as investors awaited the release of manufacturing surveys.

Major averages on Monday edged higher after Fed Chair Jerome Powell signaled two possible rate cuts in the year if the economy performs as expected.

However, Powell cautioned that the policy committee's decision is data-dependent and "not on any preset course."

The Federal Reserve's super-sized rate cut of 50 basis points last month bolstered market sentiment and pushed stock market indexes to new highs.

Investors now shifted their attention to the upcoming nonfarm payroll update on Friday and the JOLT report later today.

Stock traders were also monitoring the first strike in fifty years by members of the International Longshoremen's Association on 14 ports on the East and Gulf Coasts.

About 45,000 members decided to strike after wage negotiations broke down with the U.S. Maritime Alliance employers group.

Consumers are likely to feel the impact of the strike if it drags on longer than a week, which could invite an intervention by President Joe Biden, asking workers to return to work and look for a settlement over the next eighty days.

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.9% to 5,712.70, the Nasdaq Composite fell 1.2% to 17,990.69, and the Russell 2000 index rose 0.7% to 2,216.23.

The yield on 2-year Treasury notes edged higher to 3.64%, 10-year Treasury notes inched down to 3.74%, and 30-year Treasury bonds inched lower to 4.12%.

WTI crude oil increased $0.57 to $68.76 a barrel, and natural gas prices edged up 3 cents to $2.88 a thermal unit.

Gold fell by $29.76 to $2,662.92 an ounce, and silver increased by $0.61 to $31.66.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.13.

U.S. Stock Movers

Charles Schwab Corporation declined 1.6% to $63.75, and the company announced the retirement of chief executive Walt Bettinger at the end of the year.

Charles Schwab President Rick Wurster is slated to assume the leadership role at the start of the new year.

Stellantis NV declined 1.9% to $13.78 and extended its loss for the second day in a row after the automaker plans to halt production of the electric Fiat 500 until the end of November.

McCormick & Company increased 0.7% to $82.84 after the spice maker reported better-than-expected revenue and earnings.

The spice and flavoring company reported net sales in the edge to $1.67 billion from $1.68 billion, net income increased to $223.1 million from $170.1 million, and diluted earnings per share to 83 cents from 63 cents.

The company reaffirmed its sales and operating profit outlook, and estimated adjusted earnings per share between $2.85 and $2.90.

Europe Movers: Covestro, Greggs, Oil Companies, Mulberry Group

Inga Muller
01 Oct, 2024
Frankfurt

Eurozone inflation fell at a faster-than-expected pace in September, driven by a sharp decline in energy prices.

Manufacturing woes deepened in the Euro Area as producers struggled with easing growth in orders and output.

The DAX index increased by 0.4% to 19,403.07; the CAC-40 index fell by 0.01% to 7,634.25; and the FTSE 100 index rose by 0.3% to 8,278.71.

The yield on 10-year German bonds edged lower to 2.05%, French bonds inched lower to 2.80%, the UK gilts edged down to 3.95%, and Italian bonds decreased to 3.35%.

Covestro AG jumped 4.2% to €58.10 after the Abu Dhabi-controlled oil company, ADNOC, said it plans to buy the German chemical firm for €14.7 billion.

The acquisition deal requires ADNOC to purchase all outstanding shares at €62 per share.

Crude oil prices traded volatile as investors weighed rising tensions in the Middle East against demand growth worries in the U.S.

BP plc, Shell PLC, TotalEnergies SE, and Repsol SA declined between 0.2% and 0.5%.

Mulberry Group PLC declined 3.2% to 120.0 pence, and the British luxury handbag maker rejected a conditional offer from Mike Ashley-controlled Frasers Group.

Greggs plc declined 4.2% to 2,992.0 pence after the bakery chain reported a slowdown in its core business in the latest quarter.

Eurozone Manufacturing Woes Deepened and Inflation Eased In September

Bridgette Randall
01 Oct, 2024
London

European market indexes swung between gains and losses as investors reviewed the latest update on consumer price inflation.

Benchmark indexes in Paris, London, and Frankfurt traded around the flatline after inflation in the Euro Area fell more than expected in September.

Crude oil was in focus as Israel prepared to carry out a military invasion in Lebanon, targeting territories controlled by Hezbollah, raising the prospects of supply disruptions.

Eurozone Manufacturing Woes Deepened In September

Eurozone manufacturing woes deepened amid broad weakness and the fall in new orders, output, employment, and procurement activity, S&P Global reported Tuesday.

The Hamburg Commercial Bank factory purchasing managers' index eased to 45.0 in September from 45.8 in August, according to the revised estimate.

The index stood at 44.8 in the preliminary estimate, and the final estimate was the lowest in the current series in 2024 and weakest in the current 27-month downturn.

Across the four largest economies in the currency union, the manufacturing index in Spain rose at the fastest pace to 53.0 from 50.5 in August and extended growth in activities for the eighth month in a row.

The headline manufacturing index plunged to a 12-month low of 40.6 from 42.4 in August as the sector's slump worsened.

"The worsening industrial slump in Germany, for example, is too big for Spain's momentum in September to make much of a difference," the Hamburg Commercial Bank Chief Economist Cyrus de la Rubia said.

Weakening Energy Prices Drag Eurozone Inflation Lower In September

Consumer price inflation in the eurozone slowed to 1.8% in September from 2.2% in August, Eurostat reported Tuesday.

Overall inflation dropped to the lowest level since April 2021.

The overall inflation slowed largely because of the weakening of the price of energy and related products, tracking lower crude oil prices.

Energy price deflation accelerated to 6% from 3% in the previous month, and food, alcohol, and tobacco inflation edged up to 2.4% from 2.3%.

Core inflation, which excludes food and energy, slowed to 2.7% from 2.8% in the previous month, and service inflation slowed to 4% from 4.1%.

Geographically, inflation eased in Germany to 1.8% from 2.0% in the previous month; in France it eased to 1.5% from 2.2%; in Italy it declined to 0.8% from 1.2%; and in Spain it slowed to 1.7% from 2.4%, respectively.

Overall inflation is expected to rebound in the later part of 2024, as the previous high base in energy prices ends.

Europe Indexes and Yields

The DAX index increased by 0.4% to 19,403.07; the CAC-40 index fell by 0.01% to 7,634.25; and the FTSE 100 index rose by 0.3% to 8,278.71.

The yield on 10-year German bonds edged lower to 2.05%, French bonds inched lower to 2.80%, the UK gilts edged down to 3.95%, and Italian bonds decreased to 3.35%.

The euro edged lower to $1.10; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.66 Swiss cents.

Brent crude decreased $0.53 to $71.16 a barrel, and the Dutch TTF natural gas fell by €0.44 to €38.21 per MWh.

Europe Stock Movers

Covestro AG jumped 4.2% to €58.10 after the Abu Dhabi-controlled oil company, ADNOC, said it plans to buy the German chemical firm for €14.7 billion.

The acquisition deal requires ADNOC to purchase all outstanding shares at €62 per share.

Crude oil prices traded volatile as investors weighed rising tensions in the Middle East against demand growth worries in the U.S.

BP plc, Shell PLC, TotalEnergies SE, and Repsol SA declined between 0.2% and 0.5%.

Mulberry Group PLC declined 3.2% to 120.0 pence, and the British luxury handbag maker rejected a conditional offer from Mike Ashley-controlled Frasers Group.

Greggs plc declined 4.2% to 2,992.0 pence after the bakery chain reported a slowdown in its core business in the latest quarter.

Tokyo Indexes Recover 2%, Japan Business Sentiment Held Steady In Third Quarter

Akira Ito
01 Oct, 2024
Tokyo

Stock market indexes in Tokyo advanced, and the yen eased as investors reviewed the latest economic updates.

The Nikkei 225 stock average jumped 1.9%, and the Topix index advanced 1.7% after market sentiment reversed from the previous sentiment.

The yen weakened 0.5% to 144.36 against the U.S. dollar after calm returned to markets following the knee-jerk reaction in the previous session.

Markets sold off after former defense minister Shigeru Ishiba won the race to lead the Liberal Democratic Party, following the abrupt resignation of Prime Minister Fumio Kishida.

The hawkish monetary policy advocate Ishiba is expected to name former Chief Cabinet Secretary and health minister Katsunobu Kato as the next finance minister.

Ishiba's selection of cabinet members suggested that the next prime minister is laying the groundwork for a stable administration that is likely to favor moderate policies and a gradual increase in interest rates.

On the economic front, the au Jibun Bank Japan Manufacturing PMI was revised higher to 49.7 in September from the preliminary estimate of 49.6 and 49.8 in the previous month, S&P Global reported Tuesday.

The manufacturing sector contracted for the third month in a row, and activities declined for the seventh consecutive month as new orders fell driven by weakness in export orders.

In addition, the business sentiment weakened to the lowest level since December 2022.

The Bank of Japan's sentiment index among large manufacturers was stable for the second quarter in a row, according to the survey released by the central bank on Tuesday.

The sentiment index among the 1,730 large companies surveyed in the quarter was steady at 13, among 2,576 mid-sized companies was steady at 8, and among 4,732 small companies improved from -1 to zero.

The overall index among all 9,038 participants improved to 14 from 12, according to the data available from the so-called Tankan survey.

Meanwhile, large companies are looking to increase capital spending by 10.6% in the current fiscal year ending in March 2025.

Japan Stock Movers

The Nikkei 225 Stock Average gained 1.9% to 38,643.77, and the Topix index advanced 1.7% to 2,690.32.

Exporting companies and industrial heavyweights traded higher after U.S. Fed Chair Powell poured cold water over another 50 basis points rate hike during the next policy meeting.

Mitsubishi Heavy Industries increased 7.5% to ¥2,278.0, Kawasaki Heavy Industries gained 8.2% to ¥6,286.0, and IHI Corp. jumped 7.9% to ¥7,966.0.

Mitsubishi UFJ advanced 2% to ¥1,482.50, Sumitomo Mitsui Financial Group gained 2.1% to ¥3,110.0, and Mizuho Financial increased 2.1% to ¥2,998.0.

Seven & I Holdings advanced 0.6% to ¥2,160.50, Isetan Mitsukoshi jumped 5% to ¥2,340.50, and Fast Retailing gained 2.4% to ¥48,570.0.

Marubeni Corp. gained 1.9% to ¥2,385.50, Itochu Corp. added 3.7% to ¥7,960.0, Mitsui & Company jumped 3.7% to ¥3,293.0, and Mitsubishi Corp. added 2.5% to ¥3,027.0.

Shipping companies were in focus amid elevated tensions in the Middle East, and shipping workers at 14 ports on the U.S. East Coast and along the Gulf of Mexico were demanding higher wages over the next five years.

The container shipping companies have earned more than $400 billion over the four years since the onset of the pandemic in 2020, surpassing the combined profits in the previous four decades.

Nippon Yusen KK increased 1.9% to ¥5,298.0, Mitsui O.S.K. Lines gained 1% to ¥4,976.0, and Kawasaki Kishen Kaisa added 0.5% to ¥2,224.50.

India Movers: Adani Enterprises, Bharti Airtel, Blue Dart, Cyient DLM, Cr Reddy's Pharma, Mankind Pharma, McLeod Russell, RBL Bank

Arun Goswami
01 Oct, 2024
Mumbai

Stocks in Mumbai lacked direction amid elevated tensions in the Middle East and ahead of the start of earnings season next week.

The Sensex index increased by 0.1% to 84,371.88, and the Nifty index fell by 0.1% to 25,829.35.

On the Mumbai stock exchange, 110 stocks traded at their 52-week highs, and 19 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched higher to 6.75%, and the Indian rupee eased to 83.81 against the U.S. dollar.

The gold price increased by 0.1% to ₹75,250 per ten grams, and silver edged down by 0.1% to ₹90,641 per kilo.

RBL Bank Ltd. decreased 1.5% to ₹204.0, and Hydra Trading has sold a 1.24% stake in the company for an average price of ₹203 per share.

The company sold 75.1 lakh shares for ₹152 crore.

Cyient DLM declined 0.6% to ₹668.30, and Morgan Stanley-controlled funds sold 4.34 lakh stocks for ₹29 crore to mutual funds owned by HDFC.

Dr Reddy's Laboratories increased 0.4% to ₹6,750.0, and the Hyderabad-based pharmaceutical company said it completed the purchase of Haleon plc's global consumer healthcare brands in nicotine replacement therapy for £458 million, or about ₹5,152 crore.

McLeod Russell increased 9.9% to ₹32.81, and the company's managing director, Aditya Khaitan, expressed optimism about resolving outstanding debt payments of ₹1,800 crore.

Adani Enterprises increased 0.1% to ₹3,131.0, and the company's subsidiary Adani Airport Holdings raised ₹1,950 crore through the sale of bonds with a coupon rate of 9.35%.

Mankind Pharma decreased 3% to ₹2,513.80, and the company's board approved the sale of non-convertible bonds and commercial paper to raise ₹10,000 crore.

Indian Oil Corporation decreased 0.2% to ₹179.69, and the company withdrew its ₹22,000 crore rights issue following the lack of provision in the current fiscal year.

Blue Dart Express increased 3.7% to ₹8,171.05, and the company said it plans to raise its shipping charges between 9% and 12% from January 1, 2025.

Bharti Airtel increased 0.7% to ₹1,705.0, and the wireless telecom company has prepaid its next installment of ₹8,465 crore to the ministry of telecom for the acquisition of wireless spectrum in 2016.

Wall Street Indexes Lacked Direction on Merger Monday, European Markets Turned Lower, China Five-day Rally Extended Gains to 20%

Alexander Garcia
30 Sep, 2024
Miami

Stock market indexes on Wall Street flatlined in Monday's trading, and benchmark indexes are set to close higher for the month and for the quarter.

The S&P 500 index and the Nasdaq traded in a tight range in early trading in New York as investors debated future rate paths and economic outlook.

The S&P 500 index increased 1.5% in September and jumped 5.0% in the quarter, and the Nasdaq added 2.2% and advanced 2.0%, respectively.

Two widely followed benchmark indexes advanced in previous consecutive weeks, supported by the Fed's super-sized rate cut and better-than-expected economic data indicating resilient consumer demand and moderating but strong labor market conditions.

Investor anxieties rose after port workers at 14 major ports on the East Coast and along the Gulf Coast are set to strike at midnight Monday, potentially disrupting supplies for days or weeks.

The International Longshoremen's Association said in a post that workers plan to strike at 12:01 E.T. on Tuesday, after the master contract with the U.S. Maritime Alliance expires.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.1% to 5,740.46, the Nasdaq Composite rose 0.1% to 18,144.09, and the Russell 2000 index rose 0.1% to 2,227.09.

The yield on 2-year Treasury notes edged higher to 3.63%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.13%.

WTI crude oil increased $0.68 to $68.79 a barrel, and natural gas prices edged up 1 cent to $2.90 a thermal unit.

Gold fell by $21.83 to $2,636.52 an ounce, and silver decreased by $0.36 to $31.25.

The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 100.43.

U.S. Stock Movers

AT&T edged up 0.3% to $21.95 after the company said it has agreed to sell its 70% stake in satellite TV company DirectTV Entertainment Holding LLC to a private equity firm TPG for about $7.6 billion in cash payments stretching to 2029.

AT&T will receive $1.7 billion in cash at the time of completion of the deal, $5.4 billion in payment in 2025, and $500 million in 2029.

DirectTV also said in a separate statement it has agreed to buy Sling TV and Dish TV from EchoStar through debt exchange, culminating in a combination of two satellite TV companies.

In addition, Direct TV will acquire Dish TV's video distribution business for $1 and assume a net debt of $9.75 billion.

Verizon Communications edged up a fraction to a two-year high of $45.10 after the company struck a deal to lease its wireless communications towers for $3.3 billion.

Vertical Bridge agreed to pay upfront $2.8 billion in cash for an exclusive license to lease and operate 6,339 towers across 50 U.S. states and Washington, D.C.

Stellantis declined 13% to $13.96 after the parent company of Jeep and Fiat lowered its annual outlook, citing sales weakness in "most regions."

Volkswagen AG dropped 2.2% to $11.13 after the German automaker issued its second profit warning in three months, citing ongoing weakness in China.

Nio Inc. advanced 13.5% to $7.43 after the electric vehicle maker said its China-based subsidiary will receive a total of 13.3 billion yuan of investment, including 3.3 billion from a "strategic investor."

After the investment, Nio Inc.'s stake in Nio China increased to 88.3% from 92.1%.

Alibaba Group increased 4.4% to $111.93 following a surge in tech stocks in Hong Kong and mainland China in the hopes that Beijing will soon announce fiscal measures following a package of monetary stimulus by the People's Bank of China.

Other China-linked stocks traded higher after three cities in China lowered down payment requirements and eased other restrictions for residential properties.

JD.com increased 5.5% to $42.07, and Tencent Holdings fell 0.3% to $56.88.

European Markets Dragged Down by Weak Auto Stocks, Italy's Inflation Eased to 2024 Low

European stock market indexes traded lower in Monday's trading, bond yields edged higher, and the euro held firm against the dollar.

Benchmark indexes in London, Paris, and Frankfurt fell as investors debated future rate paths and calls for lowering interest rates rose amid cooling inflation.

Italy reported the annual inflation rate eased in September and dropped to the lowest level in 2024, reflecting a weakening of inflation in energy and manufactured goods, according to the statistical agency, ISTAT.

Consumer price inflation slowed to 0.7% from 1.1% in August, and core inflation, which excludes volatile food and energy prices, eased to 1.8% from 1.9% in the previous month.

Germany's annual consumer price inflation eased to 1.6% in September from 1.9% in August, the Federal Statistical Office, Destatis, reported Monday.

Last week France and Spain reported a slowing of inflation, largely reflecting weaker energy prices, but core inflation held steady because of elevated service inflation.

The U.K.'s second quarter gross domestic product increase from the previous quarter was revised down to 0.5%, slower than the previously estimated rise of 0.6%.

The inflation dropped to the lowest level since February 2021, largely because of the decline in energy price accelerated to 7.6% from 5.1% in the previous month, offsetting food price inflation increase to 1.6% from 1.5%, respectively.

Core inflation, which excludes food and energy prices, eased to 2.7% from 2.5%.

Europe Indexes and Yields

The DAX index decreased by 0.8% to 19,324.93; the CAC-40 index fell by 2.0% to 7,635.75; and the FTSE 100 index declined by 1.1% to 8,236.95.

The yield on 10-year German bonds edged higher to 2.15%, French bonds inched higher to 2.95%, the UK gilts edged up to 4.0%, and Italian bonds increased to 3.48%.

The euro edged lower to $1.11; the British pound inched higher to $1.33; and the U.S. dollar weakened to 84.41 Swiss cents.

Brent crude increased $0.65 to $72.21 a barrel, and the Dutch TTF natural gas fell by €0.03 to €38.67 per MWh.

Europe Stock Movers

Rightmove PLC decreased 613.40 pence and extended losses for the second day in a row after the company's board rejected a £6.2 billion offer from Australia-based REA Group.

Oil exploration companies were in focus after tensions in the Middle East rose and Israel carried out more targeted bombing campaigns in Beirut and accelerated its land grab in Gaza.

Shell PLC increased 0.1% to 2,426.50 pence. BP plc gained 0.6% to 390.55 pence, and TotalEnergies SE declined 1.4% to €58.35.

Automakers traded down after Volkswagen AG issued a profit warning for the second time in three months and Stellantis NV lowered its annual outlook amid weakness in sales across all regions.

Stellantis dropped 15.4% to €12.36 and extended losses to more than 60% from a high of €27 in March; Volkswagen decreased 2.5% to €94.66 and traded at a five-year low.

3i Group plc decreased 2.6% to 3,300 pence, and Shadowfall Capital reportedly took a multi-million-pound short position in the private equity venture capital firm.

Japan to Call General Election On October 27, Yen Rallies and the Nikkei 225 Plunges 4%

Stock market indexes in Tokyo plunged following the announcement of the new leader of the ruling Liberal Democratic Party.

The Nikkei 225 stock average and the Topix index jumped as much as 5%, and investors overlooked the latest updates on retail sales and industrial production data.

Former defense minister Shigeru Ishiba won the tightly contested leadership race by nine candidates, garnering more votes than the run-off rival Sanae Takaichi, setting the stage for the premiership of Japan.

The newly elected party leader also expressed his plan to hold a general election as early as October, and Ishiba in the past has supported more hawkish monetary policy.

"I believe it is important for the new administration to be judged by the people as soon as possible," and added, "we would like to hold a general election on October 27," Ishiba said at an LDP news conference.

The party is expected to confirm his nomination as the next prime minister at the Diet session on Tuesday.

The Japanese yen soared to 141.7 against the U.S. dollar, dampening the stock market sentiment.

On the economic front, Japan's annual retail sales growth slightly accelerated to 2.8% in August from 2.7% in July, the Ministry of Economy, Trade & Industry reported.

Retail sales increased for the 29th month in a row, supported by the increase in wages, which continue to support higher consumption of basic items.

On a monthly basis, retail sales accelerated to an increase of 0.8%, after sales rose 0.2% in July.

Japan's industrial production declined 3.3% from the previous month in August, the fifth monthly decline in 2024, the ministry said in a separate report.

From the previous year, industrial production declined 4.9%, marking the sixth decline in 2024 and reversing the 2.9% increase in July.

Japan Stock Movers

The Nikkei 225 Stock Average declined 5% to 37,826.07 and the Topix index dropped 3.6% to 2,641.68.

Tech stocks led the decliners in Tokyo, and semiconductor-related stocks were the worst hit.

Advantest Corp. fell 6.5% to ¥6,741.0, Tokyo Electron declined 8% to ¥25,290.0, and Lasertec dropped 10% to ¥23,605.0.

Seven & I Holding declined 3.2% to HK ¥2,146.50, Fast Retailing decreased 3.4% to ¥47,420.0, and Isetan Mitsukoshi plunged 10.5% to ¥2,226.0.

Toyota Motor decreased 7.6% to ¥2,542.50, Honda Motor declined 7% to ¥1,507.50, and Nissan Motor fell 6% to ¥402.50.

Marubeni declined 3% to ¥2,340.0, Itochu Corp. fell 3.3% to ¥7,678.0, Mitsui & Company decreased 2.8% to ¥3,178.0, and Mitsubishi eased 4.2% to ¥2,952.50.

Sumitomo Mitsui Financial gained 3% to ¥3,045.0, Mitsubishi UFJ Financial advanced 0.2% to ¥1,453.50, and Mizuho Financial gained 4.2% to ¥2,936.0.

China's Stimulus Rally Extended September Gains to Over 20%

Stock market indexes soared in mainland China and Hong Kong as a stimulus rally extended gains to the holiday-shortened third week.

The Hang Seng index jumped 3% and the mainland-focused CSI 300 index soared more than 6%, and the two widely followed indexes extended September gains to over 20%.

Investors bid up stocks in the hopes that the latest easing of property market restrictions coupled with monetary policy stimulus and the expected fiscal measure will revive consumer confidence.

On Monday, three leading cities in China relaxed terms to acquire residential property.

Guangzhou city authorities removed all restrictions on buying multiple residential properties.

Shanghai and Shenzhen relaxed down payment requirements for first and additional home purchases and permitted non-locals to acquire residential properties, boosting demand for new homes.

Moreover, the People's Bank of China lowered its mortgage rate following the announcement last week.

Investors are hoping that policymakers will follow up with significant fiscal measures in about two weeks ahead of the policy committee meeting.

On Tuesday, financial markets in Hong Kong are closed for the National Holiday, and mainland China markets will remain closed through October 8.

Investors largely ignored the latest update on the manufacturing sector, highlighting the weakness for the fifth month in a row.

The manufacturing purchasing managers' index edged higher to 49.8 in September from 49.1 in the previous month, the National Bureau of Statistics reported on Monday.

The non-manufacturing PMI index, which includes construction and service sector activities, eased to 50.0 in September from 50.3 in the previous month, the official report showed.

The Caixin China General Manufacturing PMI decreased to 49.3 in September from 50.4 in August and fell to the lowest level since July 2023, according to the latest update reported by S&P Global.

New orders, foreign sales, and employment all contracted amid weakness in foreign and domestic orders.

Moreover, business sentiment dropped to the second-lowest on record after new orders fell to the lowest level in two years.

The government survey data differs from the private survey because the official sample is dominated by larger and state-controlled companies, while the private survey includes more smaller companies active in international trade.

China Stock Movers

The Hang Seng index decreased 3.3% to 21,321.97, and the CSI 300 index soared 6.2% to 3,934.08.

Property stocks soared following the easing of curbs on residential property purchases in three leading southern cities.

Longfor Group soared 17% to HK $16.04, China Vanke advanced 12.7% to HK $7.52, China Resources Land gained 4.1% to HK $29.05, and Sun Hung Kai Properties declined 0.6% to HK $86.05.

Alibaba Group jumped 9.6% to HK $112.20, JD.com advanced 10.7% to HK $168.30, and Tencent Holdings gained 4.4% to HK $455.40.

BYD gained 3.9% to HK $286.40, Li Auto soared 10.1% to HK $110.0, and Xpeng surged 15.3% to HK $54.50.

Bank of China decreased 1.9% to HK $3.66, China Merchants Bank added 1.6% to HK $38.80, and Industrial and Commercial Bank of China fell 1.7%.

U.S. Movers: AT&T, China ADRs, Nio, Stellantis, Volkswagen

Scott Peters
30 Sep, 2024
New York City

Benchmark indexes on Wall Street struggled to advance, and investors awaited comments from Fed Chair Powell.

AT&T agreed to sell its stake in Direct TV and facilitated its merger with Dish TV.

The S&P 500 index decreased 0.2% to 5,727.03, the Nasdaq Composite fell 0.2% to 18,078.59, and the Russell 2000 index rose 0.3% to 2,230.26.

The yield on 2-year Treasury notes edged higher to 3.63%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.13%.

AT&T edged up 0.3% to $21.95 after the company said it has agreed to sell its 70% stake in satellite TV company DirectTV Entertainment Holding LLC to a private equity firm TPG for about $7.6 billion in cash payments stretching to 2029.

AT&T will receive $1.7 billion in cash at the time of completion of the deal, $5.4 billion in payment in 2025, and $500 million in 2029.

DirectTV also said in a separate statement it has agreed to buy Sling TV and Dish TV from EchoStar through debt exchange, culminating in a combination of two satellite TV companies.

In addition, Direct TV will acquire Dish TV's video distribution business for $1 and assume a net debt of $9.75 billion.

Stellantis declined 13% to $13.96 after the parent company of Jeep and Fiat lowered its annual outlook, citing sales weakness in "most regions."

Volkswagen AG dropped 2.2% to $11.13 after the German automaker issued its second profit warning in three months, citing ongoing weakness in China.

Nio Inc. advanced 13.5% to $7.43 after the electric vehicle maker said its China-based subsidiary will receive a total of 13.3 billion yuan of investment, including 3.3 billion from a "strategic investor."

After the investment, Nio Inc.'s stake in Nio China increased to 88.3% from 92.1%.

Alibaba Group increased 4.4% to $111.93 following a surge in tech stocks in Hong Kong and mainland China in the hopes that Beijing will soon announce fiscal measures following a package of monetary stimulus by the People's Bank of China.

Other China-linked stocks traded higher after three cities in China lowered down payment requirements and eased other restrictions for residential properties.

JD.com increased 5.5% to $42.07, and Tencent Holdings fell 0.3% to $56.88.

S&P 500 and Nasdaq Register Strong Gains in September and Third Quarter

Barry Adams
30 Sep, 2024
New York City

Stocks struggled to advance in Monday's trading, and benchmark indexes are set to close higher for the month and for the quarter.

The S&P 500 index decreased 0.2% and the Nasdaq dropped as much as 0.3% in early trading in New York as investors debated future rate paths and economic outlook.

The S&P 500 index increased 1.6% in September and jumped 5.1% in the quarter, and the Nasdaq added 2.3% and advanced 2.2%, respectively.

Two widely followed benchmark indexes advanced in previous consecutive weeks, supported by the Fed's super-sized rate cut and better-than-expected economic data indicating resilient consumer demand and moderating but strong labor market conditions.

Investor anxieties rose after port workers at 14 major ports on the East Coast and along the Gulf Coast are set to strike at midnight Monday, potentially disrupting supplies for days or weeks.

The International Longshoremen's Association said in a post that workers plan to strike at 12:01 E.T. on Tuesday, after the master contract with the U.S. Maritime Alliance expires.

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.2% to 5,727.03, the Nasdaq Composite fell 0.2% to 18,078.59, and the Russell 2000 index rose 0.3% to 2,230.26.

The yield on 2-year Treasury notes edged higher to 3.63%, 10-year Treasury notes inched up to 3.75%, and 30-year Treasury bonds inched higher to 4.13%.

WTI crude oil decreased $0.15 to $67.99 a barrel, and natural gas prices edged down 1 cent to $2.90 a thermal unit.

Gold fell by $19.98 to $2,638.47 an ounce, and silver decreased by $0.45 to $31.16.