Market Update
India Movers: ICICI Bank, HAL, JSW Energy, Mankind Pharma, RVNL, MedPlus, Sanghi Industries
Arjun Pandit
26 Mar, 2024
Mumbai
Stocks in Mumbai traded down, and investors stayed on the sidelines in holiday-shortened week.
The Sensex index decreased 0.2% to 72,659.64, and the Nifty index edged down 0.2% to 22,044.50.
On the Mumbai stock exchange, 44 stocks traded at their 52-week highs and 24 stocks traded at their 52-week lows.
Mankind Pharma advanced 3.2% to ₹2,201.0, and the private equity firm ChrysCapital's affiliate Beige Ltd. is planning to sell up to a 2.6% stake in the company.
Beige is looking to do the transaction through a block deal with a price range between ₹2,103 and ₹2,214 per share, according to a report by CNBC TV 18.
ICICI Securities decreased 1.4% to ₹751.0 after the company received a warning letter from SEBI concerning its business practices and record-keeping related to merchant banking activities.
JSW Energy rose 2.1% to ₹514.95, and the company's subsidiary signed an agreement with Reliance Power to acquire a 45 MW wind power project in Maharashtra for ₹132 crore.
HAL gained 1.5% to ₹3,169.0 after the aviation company secured an order worth ₹194 crore from the Guyana Defense Force.
Rail Vikas Nigam advanced 2.2% to ₹249.70, and the company signed an agreement with the Airports Authority of India to build a rail service connecting the Kolkata airport with a residential colony for ₹229 crore.
IIFL Finance decreased 0.8% to ₹333.50, and JM Financial edged up 0.2% to ₹74.0 after the Reserve Bank of India initiated the process to appoint special auditors to review the company's business practices and regulatory breaches.
MedPlus Health Services gained 0.3% to ₹685.0 after the company's two stores were temporarily banned by the regulatory agencies from conducting business.
Sanghi Industries gained 0.6% to ₹88.50 after the company's promoter group, Ambuja Cements, lowered its stake in the company by 2% to 60.44%.
Ambuja Cements sold its stake in the company for ₹258 crore.
U.S. New Home Sales Eased in February
Brian Turner
25 Mar, 2024
New York City
Single-family house sales eased 0.3% from the previous month and rose 5.9% from a year ago in February to a seasonally adjusted rate of 662,000.
The median sale price of a new house was $400,500, and the average sale price was $485,000, according to the latest government statistics.
The median single-family home price in January was $414,900, and in 2023 it was $428,200 after peaking at $457,800 in 2022.
The average home price in January was $523,400, and in 2023 it was $513,000, after peaking at $540,000 in 2022.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the new residential statistics on Monday.
The seasonally adjusted estimate of new homes for sale at the end of February was 463,000, a supply of 8.4 months at the current sales rate.
Home price affordability and elevated mortgage rates have kept first-time home buyers away from the market, as mortgage rates have continued to advance over the last year.
World Markets Rest, Earnings In Focus In Europe and China
Barry Adams
25 Mar, 2024
New York City
Stocks on Wall Street traded down for the second session in a row as investors stayed on the sidelines following the advance in the previous weeks.
The S&P 500 index and the Nasdaq Composite decreased 0.2%, and investors reacted to corporate news.
Market indexes advanced in the previous week's trading after the U.S. Federal Reserve maintained its rate-cut outlook for 2024 and held steady the Fed Funds range.
Investors are looking forward to the release of personal consumption expenditure price indexes, personal income and outlays, and durable goods orders.
The PCE price index, the Fed's preferred and watered-down measure of inflation, is scheduled to be released on Friday.
Trading on Wall Street is expected to be subdued during the holiday-shortened week, and the market will get the first chance to react to the release of the PCE data on Monday.
U.S. New Home Sales Eased in February
Single-family house sales eased 0.3% from the previous month and rose 5.9% from a year ago in February to a seasonally adjusted rate of 662,000.
The median sale price of a new house sold was $400,500, and the average sale price was $485,000, according to the latest government statistics.
The U.S. Census Bureau and the U.S. Department of Housing and Urban Development jointly announced the new residential statistics Monday.
The seasonally adjusted estimate of new homes for sale at the end of February was 463,000, a supply of 8.4 months at the current sales rate.
Home price affordability and elevated mortgage rates have kept first-time home buyers away from the market, as mortgage rates have continued to advance over the last year.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 5,225.67, and the Nasdaq Composite fell 0.03% to 16,424.30.
The yield on 2-year Treasury notes increased to 4.61%, 10-year Treasury notes inched down to 4.23%, and 30-year Treasury bonds edged down to 4.41%.
WTI crude oil increased $1.15 to $81.78 a barrel, and natural gas prices decreased 3 cents to $1.62 a thermal unit.
Gold decreased by $12.73 to $2,177.04 an ounce, and silver fell 9 cents to $24.67.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.19.
U.S. Stock Movers
Boeing increased 1.2% to $191.10 after the company announced a leadership shakeup.
Chief executive Dave Calhoun will step down as a part of a broader management reorganization, and chairman of the board Larry Kellner will resign in May after the company's annual meeting.
Boeing has suffered several manufacturing quality setbacks, and recently, a door panel blew out of a Boeing 737 Max 9 aircraft while flying an Alaska Air flight on January 5.
Alphabet, Apple, and Meta declined between 0.5% and 1.4% after the European Union launched an investigation under its new Digital Markets Act.
European Markets Rest, Spain's Wholesale Inflation Plunges
European markets traded mixed at the start of the holiday-shortened week amid ongoing trade tensions between the U.S. and China.
Investors stayed on the sidelines after benchmark indexes traded at a new record high at the end of the previous week as rate-cut expectations drove market sentiment.
Last week, major central bank announcements dominated market news after the U.S. Federal Reserve left its key lending rate range unrevised for the fifth time in a row and also maintained its possible three rate-cut projections for the year.
Moreover, the Bank of Japan also ended its negative rate-cut regime after eight years and lifted its policy rate range for the first time in 17 years.
Closer to home, the Bank of England and Norges Bank held their lending rates, but the Swiss National Bank cut its policy rate by 25 basis points to 1.5%.
Spain's producer price inflation plunged 8.2% from a year ago in February, following a slightly revised 3.9% decline in the previous month, the National Statistics Institute reported Monday.
Investors are also looking forward to the release of preliminary consumer inflation data in France, Spain, and Italy later in the week.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,261.23, the CAC-40 index fell by a fraction to 8,151.60, and the FTSE 100 index inched lower by 0.6% to 7,917.57.
The yield on 10-year German bonds edged down to 2.34%; French bonds inched lower to 2.82%; the UK gilts edged higher to 4.0%; and Italian bonds inched higher to 3.67%.
The euro edged higher to $1.082, the British pound inched higher to $1.263, and the U.S. dollar held steady at 89.80 Swiss cents.
Brent crude increased $0.92 to $86.35. a barrel, and the Dutch TTF natural gas rose by €0.71 to €28.49 per MWh.
Europe Stock Movers
Kingfisher plc edged up 0.2% to 234.16 pence after the UK-based home-improvement retailer reported a sharp decline in its fiscal year annual profit.
Pre-tax profit in the fiscal year plunged 22.3% to £475 million from £611 million a year ago.
Henry Boot dropped 1% to 182.11 pence after the UK-based property developer reported fiscal 2024 pre-tax profit decreased 18% to £37.3 million from £45.6 million.
Delivery Hero SE declined 2.1% to €26.41 after the company said chief financial officer Emmanuel Thomassin would resign from his job at the end of September.
The company's supervisory board is looking for a replacement.
Pennon Group decreased 2.3% to 654.50 pence after the UK-based water utility company reported fiscal year results in line with management expectations.
Gamma Communications PLC increased 0.1% to 1,350.80 pence after the company reported an increase in pre-tax annual profit.
Direct Line Insurance dropped 12% to 183.47 pence after the Belgian insurance company Ageas said it would not make a third takeover offer.
Profit Booking Drives Nikkei Lower, Meituan Earnings Lifts China Indexes Higher
Market indexes in Tokyo and Seoul edged lower but advanced in China and Sydney in Monday's trading.
Financial markets in India were closed to celebrate the Holi festival. Several markets are scheduled to be closed in Europe and Asia this Friday for a holiday.
Stocks lacked direction after major central bank announcements dominated trading in the previous week.
The central bank in Switzerland lowered its policy rate, trumping other major central banks around the world, and the Bank of Japan ended its negative rate regime after eight years and lifted its policy rate for the first time in 17 years.
Investors are hoping that Chinese authorities will provide additional measures to stabilize markets, after the annual gathering of lawmakers failed to offer any new measures to support the slumping property market.
Profit Taking Drives Japan Indexes Lower
Benchmark indexes in Tokyo traded down in Monday's trading, and investors booked profits in leading financial and tech stocks after a surge of 6% in the previous week.
Market sentiment turned cautious ahead of the release of key economic data later in the week.
Investors are awaiting the release of retail sales, industrial production, the unemployment rate, and the minutes of the BOJ’s last policy meeting.
The Nikkei 225 Stock Average dropped 0.6% to 40,634.01, and the Topix index dropped 0.8% to 2,790.49.
SoftBank, Tokyo Electron, Screen Holdings, and Advantest are between 1% and 2.5%.
Banks and financial services providers were also among the leading decliners.
Mitsubishi UFJ, Mizuho Financial, and Sumitomo Mitsui declined between 0.6% and 1.5%.
China Stocks Trade Higher Ahead of Earnings Release; Meituan Soars 8%
Benchmark indexes in Shanghai and Hong Kong advanced as investors awaited earnings announcements from leading Chinese companies later in the week.
Investors also reviewed Premier Li Qiang's comments delivered at the China Development Forum over the weekend, which brought together Chinese officials, academics, and foreign business leaders.
Premier Qiang said that China is working to improve market access, data transparency, and cross-border data flows for foreign businesses.
Foreign investors have been leaving China as Chinese officials ramp up their investigation of foreign businesses under the expanded espionage laws, and the second-largest economy has placed severe restrictions on capital repatriations, essentially banning capital outflow.
Trading was driven by institutional investors adjusting their portfolio holdings in anticipation of earnings releases.
The CSI 300 index gained 0.4% to 3,558.59, and the Hang Seng index added 0.5% to 16,578.99.
Market jitters kept tech stocks under check, and Lenovo Group declined 7% to HK$9.05, Alibaba Group dropped 1.3% to HK$70.10, and Baidu Group jumped 6% to HK$104.50.
After Friday's close, Meituan and China Honqgiao Group reported sharply higher earnings.
China Hongqiao Group soared 14% to $8.42 after the aluminum maker reported a 32% rise in annual earnings in 2023 from a year ago.
Meituan rebounded 8% to HK$95.90 after the food delivery platform swung to net income in the fourth quarter.
Revenue in the fourth quarter increased by 22.6% to 73.6 billion yuan, or $10.2 billion, and net income swung to a profit of 2.22 billion yuan compared to a loss of 1.08 billion yuan.
The company's core local commerce revenue increased by 26.8% to 55.1 billion yuan.
For the full year, revenue increased 25.8% to 276.6 billion yuan, and net income swung to 13.8 billion yuan from a loss of 6.7 billion yuan.
The number of on-demand transactions on its delivery platform rose 25% to 6.0 billion yuan in the quarter and jumped 23.9% to 21.9 billion in the year from a year ago, respectively.
India Markets Closed to Celebrate Holi
Financial markets in India were closed to celebrate the Holi festival and the arrival of spring.
In Friday's trading, benchmark indexes closed higher after shaking off morning volatility amid sustained buying in beaten-down small and mid-cap stocks.
Market sentiment remained cautious in the final hour of trading, and the Sensex and the Nifty indexes extended weekly gains of 0.3%.
The Sensex index increased 0.2% to 72,831.94, and the Nifty index edged up 0.4% to 22,096.75.
The yield on the 10-year Indian government bonds increased to 7.08%, and the Indian rupee edged lower to ₹83.58 against the U.S. dollar.
U.S. Movers: Accenture, Alphabet, Apple, Boeing, Meta, Nvidia, Super Micro Computer
Scott Peters
25 Mar, 2024
New York City
Boeing increased 1.2% to $191.10 after the company announced a leadership shakeup.
Chief executive Dave Calhoun will step down as a part of a broader management reorganization, and chairman of the board Larry Kellner will resign in May after the company's annual meeting.
Boeing has suffered several manufacturing quality setbacks, and recently, a door panel blew out of a Boeing 737 Max 9 aircraft while flying an Alaska Air flight on January 5.
Alphabet, Apple, and Meta declined between 0.5% and 1.4% after the European Union launched an investigation under its new Digital Markets Act.
Nvidia Corp. rose 2% to $962.0 amid the rally in artificial intelligence-linked stocks.
Super Micro Computer soared 9.3% to $961.73 and rebounded from a loss of more than 3% in the previous week after the company announced its plan to sell as many as 2 million shares and raise $2 billion.
Arm Holdings and Advanced Micro Devices advanced more than 1%.
Accenture plc declined 1.4% to $331.44 after the company extended the previous week's losses by more than 10% following the weaker-than-expected current quarter outlook, which outweighed earnings beat in the previous week.
U.S. Major Averages Pause After Rallying Previous Week
Barry Adams
25 Mar, 2024
New York City
Stocks on Wall Street traded down as investors stayed on the sidelines following the advance in the previous weeks.
The S&P 500 index and the Nasdaq Composite decreased 0.2%, and investors reacted to corporate news.
Market indexes trimmed weekly gains in Friday's trading after the U.S. Federal Reserve maintained its rate-cut outlook for 2024 and held steady the Fed Funds range.
Investors are looking forward to the release of personal consumption expenditure price indexes, personal income and outlays, and durable goods orders.
The PCE price index, the Fed's preferred and watered-down measure of inflation, is scheduled to be released on Friday.
Trading on Wall Street is expected to be subdued during the holiday-shortened week, and the market will get the first chance to react to the release of the PCE data on Monday.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 5,226.80, and the Nasdaq Composite fell 0.07% to 16,413.64.
The yield on 2-year Treasury notes increased to 4.61%, 10-year Treasury notes inched down to 4.23%, and 30-year Treasury bonds edged down to 4.41%.
WTI crude oil increased $1.0 to $81.62 a barrel, and natural gas prices decreased 3 cents to $1.62 a thermal unit.
Gold decreased by $12.73 to $2,177.04 an ounce, and silver fell 9 cents to $24.67.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.19.
U.S. Stock Movers
Boeing increased 1.2% to $191.10 after the company announced a leadership shakeup.
Chief executive Dave Calhoun will step down as a part of a broader management reorganization, and chairman of the board Larry Kellner will resign in May after the company's annual meeting.
Boeing has suffered several manufacturing quality setbacks, and recently, a door panel blew out of a Boeing 737 Max 9 aircraft while flying an Alaska Air flight on January 5.
Alphabet, Apple, and Meta declined between 0.5% and 1.4% after the European Union launched an investigation under its new Digital Markets Act.
Europe Movers: Delivery Hero, Direct Line, Gamma Com, Henry Boot, Kingfisher, Pennon, SBB Group
Inga Muller
25 Mar, 2024
Frankfurt
European markets traded around flatline after advancing in the previous week, and investors awaited the release of consumer inflation updates from Spain, Italy, and France.
The DAX index decreased by 0.02% to 18,203.33, the CAC-40 index rose by 0.4% to 8,120.95, and the FTSE 100 index inched lower by 0.4% to 7,897.72.
The yield on 10-year German bonds edged down to 2.34%; French bonds inched lower to 2.82%; the UK gilts edged higher to 4.0%; and Italian bonds inched higher to 3.67%.
Kingfisher plc edged up 0.2% to 234.16 pence after the UK-based home-improvement retailer reported a sharp decline in its fiscal year 2023 annual profit.
Pre-tax profit in the fiscal year plunged 22.3% to £475 million from £611 million a year ago.
The company also estimated first-quarter comparable same store sales declined 2.3% and the company said it remained cautious because of the lag between housing demand and home improvement demand.
The company proposed final dividend of 8.50 pence per share, matching the previous year's rate, and total dividend of 12.40 pence, same as the last year.
In addition, the retailer estimated pre-tax earnings in the current year between £490 million and £550 million.
Henry Boot dropped 1% to 182.11 pence after the UK-based property developer reported fiscal 2024 pre-tax profit decreased 18% to £37.3 million from £45.6 million.
Delivery Hero SE declined 2.1% to €26.41 after the company said chief financial officer Emmanuel Thomassin would resign from his job at the end of September.
The company's supervisory board is looking for a replacement.
Pennon Group decreased 2.3% to 654.50 pence after the UK-based water utility company reported fiscal year results in line with management expectations.
Gamma Communications PLC increased 0.1% to 1,350.80 pence after the company reported an increase in pre-tax annual profit.
Direct Line Insurance dropped 12% to 183.47 pence after the Belgian insurance company Ageas said it would not make a third takeover offer.
SBB Group rose 6.8% to SEK3.95 after the Swedish property group said it plans to buyback its debt at a 60% discount to the original issue price.
European Markets Rest, Spanish Producer Price Decline Accelerates
Bridgette Randall
25 Mar, 2024
Frankfurt
European markets traded mixed at the start of the holiday-shortened week amid ongoing trade tensions between the U.S. and China.
Investors stayed on the sidelines after benchmark indexes traded at a new record high at the end of the previous week as rate-cut expectations drove market sentiment.
Last week, major central bank announcements dominated market news after the U.S. Federal Reserve left its key lending rate range unrevised for the fifth time in a row and also maintained its possible three rate-cut projections for the year.
Moreover, the Bank of Japan also ended its negative rate-cut regime after eight years and lifted its policy rate range for the first time in 17 years.
Closer to home, the Bank of England and Norges Bank held their lending rates, but the Swiss National Bank cut its policy rate by 25 basis points to 1.5%.
Spain's producer price inflation plunged 8.2% from a year ago in February, following a slightly revised 3.9% decline in the previous month, the National Statistics Institute reported Monday.
Investors are also looking forward to the release of preliminary consumer inflation data in France, Spain, and Italy later in the week.
Europe Indexes and Yields
The DAX index decreased by 0.02% to 18,203.33, the CAC-40 index rose by 0.4% to 8,120.95, and the FTSE 100 index inched lower by 0.4% to 7,897.72.
The yield on 10-year German bonds edged down to 2.34%; French bonds inched lower to 2.82%; the UK gilts edged higher to 4.0%; and Italian bonds inched higher to 3.67%.
The euro edged higher to $1.082, the British pound inched higher to $1.263, and the U.S. dollar held steady at 89.80 Swiss cents.
Brent crude decreased $0.45 to $85.90. a barrel, and the Dutch TTF natural gas rose by €0.98 to €28.76 per MWh.
Europe Stock Movers
Kingfisher plc edged up 0.2% to 234.16 pence after the UK-based home-improvement retailer reported a sharp decline in its fiscal year annual profit.
Pre-tax profit in the fiscal year plunged 22.3% to £475 million from £611 million a year ago.
Henry Boot dropped 1% to 182.11 pence after the UK-based property developer reported fiscal 2024 pre-tax profit decreased 18% to £37.3 million from £45.6 million.
Delivery Hero SE declined 2.1% to €26.41 after the company said chief financial officer Emmanuel Thomassin would resign from his job at the end of September.
The company's supervisory board is looking for a replacement.
Pennon Group decreased 2.3% to 654.50 pence after the UK-based water utility company reported fiscal year results in line with management expectations.
Gamma Communications PLC increased 0.1% to 1,350.80 pence after the company reported an increase in pre-tax annual profit.
Direct Line Insurance dropped 12% to 183.47 pence after the Belgian insurance company Ageas said it would not make a third takeover offer.
Profit Booking Drives Nikkei Lower, Meituan Earnings Lifts China Indexes Higher
Arjun Pandit
25 Mar, 2024
Mumbai
Market indexes in Tokyo and Seoul edged lower but advanced in China and Sydney in Monday's trading.
Financial markets in India were closed to celebrate the Holi festival. Several markets are scheduled to be closed in Europe and Asia this Friday for a holiday.
Stocks lacked direction after major central bank announcements dominated trading in the previous week.
The central bank in Switzerland lowered its policy rate, trumping other major central banks around the world, and the Bank of Japan ended its negative rate regime after eight years and lifted its policy rate for the first time in 17 years.
Investors are hoping that Chinese authorities will provide additional measures to stabilize markets, after the annual gathering of lawmakers failed to offer any new measures to support the slumping property market.
Profit Taking Drives Japan Indexes Lower
Benchmark indexes in Tokyo traded down in Monday's trading, and investors booked profits in leading financial and tech stocks after a surge of 6% in the previous week.
Market sentiment turned cautious ahead of the release of key economic data later in the week.
Investors are awaiting the release of retail sales, industrial production, the unemployment rate, and the minutes of the BOJ’s last policy meeting.
The Nikkei 225 Stock Average dropped 0.6% to 40,634.01, and the Topix index dropped 0.8% to 2,790.49.
SoftBank, Tokyo Electron, Screen Holdings, and Advantest are between 1% and 2.5%.
Banks and financial services providers were also among the leading decliners.
Mitsubishi UFJ, Mizuho Financial, and Sumitomo Mitsui declined between 0.6% and 1.5%.
China Stocks Trade Higher Ahead of Earnings Release; Meituan Soars 8%
Benchmark indexes in Shanghai and Hong Kong advanced as investors awaited earnings announcements from leading Chinese companies later in the week.
Investors also reviewed Premier Li Qiang's comments delivered at the China Development Forum over the weekend, which brought together Chinese officials, academics, and foreign business leaders.
Premier Qiang said that China is working to improve market access, data transparency, and cross-border data flows for foreign businesses.
Foreign investors have been leaving China as Chinese officials ramp up their investigation of foreign businesses under the expanded espionage laws, and the second-largest economy has placed severe restrictions on capital repatriations, essentially banning capital outflow.
Trading was driven by institutional investors adjusting their portfolio holdings in anticipation of earnings releases.
The CSI 300 index gained 0.4% to 3,558.59, and the Hang Seng index added 0.5% to 16,578.99.
Market jitters kept tech stocks under check, and Lenovo Group declined 7% to HK$9.05, Alibaba Group dropped 1.3% to HK$70.10, and Baidu Group jumped 6% to HK$104.50.
After Friday's close, Meituan and China Honqgiao Group reported sharply higher earnings.
China Hongqiao Group soared 14% to $8.42 after the aluminum maker reported a 32% rise in annual earnings in 2023 from a year ago.
Meituan rebounded 8% to HK$95.90 after the food delivery platform swung to net income in the fourth quarter.
Revenue in the fourth quarter increased by 22.6% to 73.6 billion yuan, or $10.2 billion, and net income swung to a profit of 2.22 billion yuan compared to a loss of 1.08 billion yuan.
The company's core local commerce revenue increased by 26.8% to 55.1 billion yuan.
For the full year, revenue increased 25.8% to 276.6 billion yuan, and net income swung to 13.8 billion yuan from a loss of 6.7 billion yuan.
The number of on-demand transactions on its delivery platform rose 25% to 6.0 billion yuan in the quarter and jumped 23.9% to 21.9 billion in the year from a year ago, respectively.
India Markets Closed to Celebrate Holi
Financial markets in India were closed to celebrate the Holi festival and the arrival of spring.
In Friday's trading, benchmark indexes closed higher after shaking off morning volatility amid sustained buying in beaten-down small and mid-cap stocks.
Market sentiment remained cautious in the final hour of trading, and the Sensex and the Nifty indexes extended weekly gains of 0.3%.
The Sensex index increased 0.2% to 72,831.94, and the Nifty index edged up 0.4% to 22,096.75.
The yield on the 10-year Indian government bonds increased to 7.08%, and the Indian rupee edged lower to ₹83.58 against the U.S. dollar.
Investors Debate Fed's Rate Cut Projections as Inflation Stays Well Anchored
Barry Adams
22 Mar, 2024
New York City
Stocks on Wall Street looked down after solid gains in the previous two days.
The S&P 500 index and the Nasdaq Composite edged lower and traded near record levels following the Federal Reserve's monetary policy announcements.
The market rally was powered by optimism about the Fed's projection of as many as three rate cuts before the end of the year, coupled with the economic growth revision to 2.1% from the previous estimate of 1.4%.
The Fed's revised projections confirmed that policymakers are confident that the economy is strong enough and that lower levels of interest rates are not likely to fuel inflationary forces.
However, that optimism could be upended if crude oil prices continue to advance, coupled with supply chain disruptions in the Red Sea.
Moreover, while goods price inflation has moderated in the last nine months, service price inflation has broadened and anchored deep in the economy, keeping the core rate of inflation sharply higher than the Fed's target rate of 2%.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 5,231.26, and the Nasdaq Composite fell 0.3% to 16,356.38.
The yield on 2-year Treasury notes increased to 4.61%, 10-year Treasury notes inched down to 4.22%, and 30-year Treasury bonds edged down to 4.39%.
WTI crude oil decreased $0.21 to $81.28 a barrel, and natural gas prices decreased 1 cent to $1.67 a thermal unit.
Gold decreased by $8.63 to $2,172.13 an ounce, and silver fell 9 cents to $24.67.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.20.
U.S. Stock Movers
Lululemon Athletica dropped 14% to $413.0 after the athleisure retailer reported strong holiday quarter sales, but its outlook for the current quarter fell short of analysts' expectations.
FedEx jumped 11.6% to $295.58 after the parcel delivery company reported better-than-expected quarterly results.
Dutch Bros. plunged 6% to $33.49 after the drive-through coffee chain announced the launch of a secondary offering of its shares.
TSG Consumer Partners, LP, plans to sell 8 million shares and plans to grant a 30-day option to sell an additional 1.2 million shares to its sole underwriter, Morgan Stanley.
Nike decreased 6.2% to $94.60 after the company reported mixed quarterly sales in the fiscal third quarter.
Revenue in the quarter edged slightly higher to $12.43 billion from $12.39 billion, and sales in North America rose 3% to $5.07 billion, while China sales growth slowed to 5% at $2.08 billion.
Net income in the quarter ending on February 29 was $1.17 billion, up from $1.27 billion, and diluted earnings per share decreased to 77 cents from 79 cents a year ago.
U.S. Movers: Dutch Bros, FedEx, Lululemon, Nike
Scott Peters
22 Mar, 2024
New York City
Lululemon Athletica dropped 14% to $413.0 after the athleisure retailer reported strong holiday quarter sales, but its outlook for the current quarter fell short of analysts' expectations.
Net revenue in the fiscal fourth quarter ending in January increased 16% to $3.2 billion from $2.8 billion.
Net revenues in the Americas increased at a slower pace of 9%, driven by a 7% increase in comparable sales.
International revenue soared 54%, and comparable sales soared 43%, driven by a rebound in activities after China ended its COVID-19 restrictions.
Net income jumped to $669.4 million from $119.8 million, and diluted earnings per share advanced to $5.30 from 94 cents a year ago.
Inventories at the end of 2023 decreased by 9% to $1.3 billion, compared to $1.4 billion at the end of 2022.
For the first quarter of 2024, the company expects net revenue to be in the range of $2.175 billion to $2.200 billion, representing growth of 9% to 10%.
In rhe quarter, diluted earnings per share are expected to be in the range of $2.35 to $2.40.
For the full-year 2024, the retailer expects net revenue to be in the range of $10.7 billion to $10.8 billion, representing growth of 11% to 12%, or 10% to 11% excluding the 53rd week of 2024.
For the full-year 2024, diluted earnings per share are expected to be in the range of $14.00 to $14.20.
FedEx jumped 11.6% to $295.58 after the parcel delivery company reported better-than-expected quarterly results.
Net revenue in the fiscal third quarter ending in January declined to $21.7 billion from $22.2 billion, net income rose to $879 million from $771 million, and diluted earnings per share rose to $3.51 from $3.05 a year ago.
The logistics company guided fiscal 2024 revenue to decline in a low-single-digit percentage and earnings per diluted share between $15.65 and $16.65 before the mark-to-market retirement plan monthly adjustments.
The company also completed the purchase of 4.1 million shares for $1.0 billion in the quarter, and the board of directors approved another $5 billion stock buyback plan, in addition to the remaining $0.6 billion available in the previously authorized plan in 2021.
FedEx expects to repurchase an additional $500 million of common stock during the fiscal fourth quarter, which will bring the fiscal 2024 buyback total to $2.5 billion.
Dutch Bros. plunged 6% to $33.49 after the drive-through coffee chain announced the launch of a secondary offering of its shares.
TSG Consumer Partners, LP, plans to sell 8 million shares and plans to grant a 30-day option to sell an additional 1.2 million shares to its sole underwriter, Morgan Stanley.
Nike decreased 6.2% to $94.60 after the company reported mixed quarterly sales in the fiscal third quarter.
Revenue in the quarter edged slightly higher to $12.43 billion from $12.39 billion, and sales in North America rose 3% to $5.07 billion, while China sales growth slowed to 5% at $2.08 billion.
Net income in the quarter ending on February 29 was $1.17 billion, up from $1.27 billion, and diluted earnings per share decreased to 77 cents from 79 cents a year ago.