Market Update
S&P 500 and Nasdaq Inch Higher After Nvidia Sustained Quarterly Revenue and Earnings Growth
Barry Adams
21 Nov, 2024
New York City
Wall Street indexes edged higher as investors reviewed the widely anticipated quarterly results from Nvidia Corp.
The S&P 500 index edged up 0.2% and the Nasdaq Composite advanced 0.1% after Nvidia reported a sharp jump in revenue and earnings driven by a strong demand for its artificial intelligence chips.
Revenue and earnings in the third quarter doubled as demand from large customers for data center chips remained elevated for the third year in a row.
The company offered a strong revenue outlook for the current quarter, but growth is expected to slow in the next year.
Seasonally adjusted initial weekly jobless claims in the week ending November 16 were 213,000, a decrease of 6,000 from the previous week's revised level of 219,000, the U.S. Department of Labor reported Thursday.
Continuing jobless claims, which lag by one week, increased by 36,000 to 1.908 million, the highest in three years.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.3% to $5,958.05, the Nasdaq Composite added 0.2% to 19,136.21, and the Russell 2000 index inched higher 0.1% to 2,347.09.
The yield on 2-year Treasury notes edged higher to 4.32%, 10-year Treasury notes inched up to 4.40%, and 30-year Treasury bonds decreased to 4.59%.
WTI crude oil increased $1.53 to $70.27 a barrel, and natural gas prices edged up 20 cents to $3.40 a thermal unit.
Gold increased by $12.44 to $2,664.85 an ounce, and silver increased by $0.16 to $31.07.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.63.
U.S. Stock Movers
Nvidia declined 0.9% to $144.62 after the advanced chip maker reported strong quarterly results but fell short of the highest revenue expectations.
Revenue in the fiscal third quarter increased 94% to $35.1 billion from $18.1 billion, net income soared 109% to $19.3 billion from $9.2 billion, and diluted earnings per share jumped 111% to 78 cents from 37 cents a year earlier.
Nvidia forecast fiscal fourth quarter revenue of $37.5 billion, with a band of 2%, and GAAP gross margin of 73% and non-GAAP gross margin of 73.5%.
Data center revenue increased to $30.8 billion, a jump of 17% from the previous quarter and a rise of 112% from a year ago.
Snowflake soared 23.2% to $159.30 after the data analytics company beat earnings expectations for the third quarter.
Revenue in the quarter increased 28% to $942.1 million from $734.1 million, net loss attributable to shareholders expanded to $324.2 million from $214.2 million, and diluted net loss per share expanded to 98 cents from 65 cents a year ago.
The company guided product revenue in the fiscal fourth quarter to increase 23% to between $906 million and $911 million, and for the full year to increase 29% to $3.4 billion.
Investors are awaiting the release of quarterly results from Intuit and Gap Inc. after the market closes.
S&P 500 and Nasdaq Inch Higher After Nvidia Sustained Quarterly Revenue and Earnings Growth
Barry Adams
21 Nov, 2024
New York City
Wall Street indexes edged higher as investors reviewed the widely anticipated quarterly results from Nvidia Corp.
The S&P 500 index edged up 0.2% and the Nasdaq Composite advanced 0.1% after Nvidia reported a sharp jump in revenue and earnings driven by a strong demand for its artificial intelligence chips.
Revenue and earnings in the third quarter doubled as demand from large customers for data center chips remained elevated for the third year in a row.
The company offered a strong revenue outlook for the current quarter, but growth is expected to slow in the next year.
Seasonally adjusted initial weekly jobless claims in the week ending November 16 were 213,000, a decrease of 6,000 from the previous week's revised level of 219,000, the U.S. Department of Labor reported Thursday.
Continuing jobless claims, which lag by one week, increased by 36,000 to 1.908 million, the highest in two years.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.3% to $5,958.05, the Nasdaq Composite added 0.2% to 19,136.21, and the Russell 2000 index inched higher 0.1% to 2,347.09.
The yield on 2-year Treasury notes edged higher to 4.32%, 10-year Treasury notes inched up to 4.40%, and 30-year Treasury bonds decreased to 4.59%.
WTI crude oil increased $1.53 to $70.27 a barrel, and natural gas prices edged up 20 cents to $3.40 a thermal unit.
Gold increased by $12.44 to $2,664.85 an ounce, and silver increased by $0.16 to $31.07.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.63.
U.S. Stock Movers
Nvidia declined 0.9% to $144.62 after the advanced chip maker reported strong quarterly results but fell short of the highest revenue expectations.
Revenue in the fiscal third quarter increased 94% to $35.1 billion from $18.1 billion, net income soared 109% to $19.3 billion from $9.2 billion, and diluted earnings per share jumped 111% to 78 cents from 37 cents a year earlier.
Nvidia forecast fiscal fourth quarter revenue of $37.5 billion, with a band of 2%, and GAAP gross margin of 73% and non-GAAP gross margin of 73.5%.
Data center revenue increased to $30.8 billion, a jump of 17% from the previous quarter and a rise of 112% from a year ago.
Snowflake soared 23.2% to $159.30 after the data analytics company beat earnings expectations for the third quarter.
Revenue in the quarter increased 28% to $942.1 million from $734.1 million, net loss attributable to shareholders expanded to $324.2 million from $214.2 million, and diluted net loss per share expanded to 98 cents from 65 cents a year ago.
The company guided product revenue in the fiscal fourth quarter to increase 23% to between $906 million and $911 million, and for the full year to increase 29% to $3.4 billion.
Investors are awaiting the release of quarterly results from Intuit and Gap Inc. after the market closes.
Japan's Indexes Closed Down Following Volatile Semiconductor Equipment Stocks and Persistent Weakness In Yen
Akira Ito
21 Nov, 2024
Tokyo
Stock market indexes in Tokyo traded down and reversed gains of the previous session amid weakness in semiconductor equipment stocks.
The Nikkei 225 fell 0.7% and the broader Topix decreased 0.5% after intraday traders dumped semiconductor equipment makers following quarterly results from Nvidia.
The artificial intelligence application enabling chipmaker reported fiscal third quarter revenue soared 94% and net income jumped 109%, meeting the lofty expectations set by many analysts.
Investors decided to sell Nvidia stock in the after-hours trading, despite the company offering a strong forward-looking revenue outlook of $37.5 billion.
The weakness in semiconductor equipment stocks overshadowed market sentiment as investors shifted their focus to upcoming inflation data on Friday.
The yen hovered near 154.66 against the U.S. dollar amid speculation that the Bank of Japan is preparing for another market intervention and arrest its persistent decline.
Japan Stock Movers
The Nikkei 225 Stock Average declined 0.7% to 38,072.68, and the broader Topix index fell 0.5% to 2,686.05.
Tokyo Electron decreased 0.5% to ¥21,760.0, Advantest fell 2.2% to ¥9,337.0, Disco Corp. eased 0.1% to ¥42,290.0, and SoftBank Group declined 0.4% to ¥192.90.
Fujikura declined 0.9% to ¥5,592.0, Furukawa Electric jumped 3% to ¥6,239.0, Kyowa Kirin increased 0.8% to ¥2,547.0, and UBE Corp jumped 3.4% to ¥2,412.50.
Tokyo Gas Co. Ltd. jumped 5% to ¥4,530.0 and extended the two-day increase to over 15% after activist investor Elliott Management acquired a 5% stake in the company.
The activist investor is in negotiations with the company to scale back its real estate holding and share more capital with stockholders, according to several executives at the company contacted by Ticker.com.
Tokyo Gas Urban Company, a wholly-owned subsidiary of the company, provides real estate leasing, management, and brokerage services, generated revenue of 31.9 billion yen and operating income of 5.9 billion yen.
Elliott is seeking the company to sell several of its real estate projects, including the Park Hyatt hotel in Tokyo, with net annual revenue of 10.2 billion yen and operating income of 185 million yen.
The company's stock, before the recent surge, traded at a price-to-book ratio of 1, and the company's assets do not reflect the current market price of its several real estate holdings.
Japan's Indexes Closed Down Following Volatile Semiconductor Equipment Stocks and Persistent Weakness In Yen
Akira Ito
21 Nov, 2024
Tokyo
Stock market indexes in Tokyo traded down and reversed gains of the previous session amid weakness in semiconductor equipment stocks.
The Nikkei 225 fell 0.7% and the broader Topix decreased 0.5% after intraday traders dumped semiconductor equipment makers following quarterly results from Nvidia.
The artificial intelligence application enabling chipmaker reported fiscal third quarter revenue soared 94% and net income jumped 109%, meeting the lofty expectations set by many analysts.
Investors decided to sell Nvidia stock in the after-hours trading, despite the company offering a strong forward-looking revenue outlook of $37.5 billion.
The weakness in semiconductor equipment stocks overshadowed market sentiment as investors shifted their focus to upcoming inflation data on Friday.
The yen hovered near 154.66 against the U.S. dollar amid speculation that the Bank of Japan is preparing for another market intervention and arrest its persistent decline.
Japan Stock Movers
The Nikkei 225 Stock Average declined 0.7% to 38,072.68, and the broader Topix index fell 0.5% to 2,686.05.
Tokyo Electron decreased 0.5% to ¥21,760.0, Advantest fell 2.2% to ¥9,337.0, Disco Corp. eased 0.1% to ¥42,290.0, and SoftBank Group declined 0.4% to ¥192.90.
Fujikura declined 0.9% to ¥5,592.0, Furukawa Electric jumped 3% to ¥6,239.0, Kyowa Kirin increased 0.8% to ¥2,547.0, and UBE Corp jumped 3.4% to ¥2,412.50.
Tokyo Gas Co. Ltd. jumped 5% to ¥4,530.0 and extended the two-day increase to over 15% after activist investor Elliott Management acquired a 5% stake in the company.
The activist investor is in negotiations with the company to scale back its real estate holding and share more capital with stockholders, according to several executives at the company contacted by Ticker.com.
Tokyo Gas Urban Company, a wholly-owned subsidiary of the company, provides real estate leasing, management, and brokerage services, generated revenue of 31.9 billion yen and operating income of 5.9 billion yen.
Elliott is seeking the company to sell several of its real estate projects, including the Park Hyatt hotel in Tokyo, with net annual revenue of 10.2 billion yen and operating income of 185 million yen.
The company's stock, before the recent surge, traded at a price-to-book ratio of 1, and the company's assets do not reflect the current market price of its several real estate holdings.
China Indexes Resume Downward Slide, Kuaishou Technology Plunged 10%
Li Chen
21 Nov, 2024
Hong Kong
China and Hong Kong stock market indexes halted a three-day rally as investors looked for fresh catalysts.
The Hang Seng index declined 0.1% and the CSI 300 index eased 0.2% as investors turned cautious following a weak earnings growth outlook.
Baidu and Chow Tai Fook were in focus ahead of quarterly results later today.
Benchmark indexes in mainland China and Hong Kong are down about 15% from their peaks in late September, after fiscal and monetary stimulus measures failed to revive consumer confidence.
Moreover, investors are also concerned about rising trade barriers in the European Union and higher tariffs in the U.S. on goods made by China.
The latest monetary and fiscal measures to revive property markets did not go far enough, and property developers continue to struggle with insufficient capital.
China's stimulus measures focus on easing the debt burden on local governments but do not provide any support to property developers and home buyers who have paid for unfinished projects.
Moreover, leading 35 companies in Hong Kong reported flat earnings in the latest quarter and forecast weak earnings growth in the remainder of the year.
China Stock Movers
The Hang Seng index decreased 0.1% to 19,680.23, and the mainland-focused CSI 300 index edged lower 0.2% to 3,976.90.
Semiconductor equipment-related stocks were in focus after Nvidia Corp. reported strong quarterly results but fell short of the highest revenue expectations.
Revenue in the fiscal third quarter increased 94% to $35.1 billion from $18.1 billion, net income soared 109% to $19.3 billion from $9.2 billion, and diluted earnings per share jumped 111% to 78 cents from 37 cents a year earlier.
Nvidia forecast fiscal fourth quarter revenue of $37.5 billion, with a band of 2%, and GAAP gross margin of 73% and non-GAAP gross margin of 73.5%.
Data center revenue increased to $30.8 billion, a jump of 17% from the previous quarter and a rise of 112% from a year ago.
Baidu edged down 0.06% to HK$83.95, and Chow Tai Fook Jewellery Group decreased 3% to HK$7.14.
Residential property developers fell as investors worried that Beijing policymakers may encourage struggling companies to consolidate.
Longfor Group declined 1% to HK $11.24; China Vanke decreased 2.2% to HK $6.40; and China Resources Land dropped 1% to HK $23.60.
Kuaishou Technology dropped 10.5% to HK $47.05 after the short-video app developer's revenue increase fell short of market expectations.
Revenue in the third quarter increased 11.4% to 31.1 billion yuan from 27.9 billion yuan, net income jumped 50% to 3.3 billion yuan from 2.2 billion yuan, and diluted earnings per share rose to 0.75 yuan from 0.49 yuan a year earlier.
Average daily users increased 5.4% to 407.5 million from 386.6 million, and average monthly users rose 4.3% to 714.1 million from 684.7 million a year ago.
China Indexes Resume Downward Slide, Kuaishou Technology Plunged 10%
Li Chen
21 Nov, 2024
Hong Kong
China and Hong Kong stock market indexes halted a three-day rally as investors looked for fresh catalysts.
The Hang Seng index declined 0.1% and the CSI 300 index eased 0.2% as investors turned cautious following a weak earnings growth outlook.
Baidu and Chow Tai Fook were in focus ahead of quarterly results later today.
Benchmark indexes in mainland China and Hong Kong are down about 15% from their peaks in late September, after fiscal and monetary stimulus measures failed to revive consumer confidence.
Moreover, investors are also concerned about rising trade barriers in the European Union and higher tariffs in the U.S. on goods made by China.
The latest monetary and fiscal measures to revive property markets did not go far enough, and property developers continue to struggle with insufficient capital.
China's stimulus measures focus on easing the debt burden on local governments but do not provide any support to property developers and home buyers who have paid for unfinished projects.
Moreover, leading 35 companies in Hong Kong reported flat earnings in the latest quarter and forecast weak earnings growth in the remainder of the year.
China Stock Movers
The Hang Seng index decreased 0.1% to 19,680.23, and the mainland-focused CSI 300 index edged lower 0.2% to 3,976.90.
Semiconductor equipment-related stocks were in focus after Nvidia Corp. reported strong quarterly results but fell short of the highest revenue expectations.
Revenue in the fiscal third quarter increased 94% to $35.1 billion from $18.1 billion, net income soared 109% to $19.3 billion from $9.2 billion, and diluted earnings per share jumped 111% to 78 cents from 37 cents a year earlier.
Nvidia forecast fiscal fourth quarter revenue of $37.5 billion, with a band of 2%, and GAAP gross margin of 73% and non-GAAP gross margin of 73.5%.
Data center revenue increased to $30.8 billion, a jump of 17% from the previous quarter and a rise of 112% from a year ago.
Baidu edged down 0.06% to HK$83.95, and Chow Tai Fook Jewellery Group decreased 3% to HK$7.14.
Residential property developers fell as investors worried that Beijing policymakers may encourage struggling companies to consolidate.
Longfor Group declined 1% to HK $11.24; China Vanke decreased 2.2% to HK $6.40; and China Resources Land dropped 1% to HK $23.60.
Kuaishou Technology dropped 10.5% to HK $47.05 after the short-video app developer's revenue increase fell short of market expectations.
Revenue in the third quarter increased 11.4% to 31.1 billion yuan from 27.9 billion yuan, net income jumped 50% to 3.3 billion yuan from 2.2 billion yuan, and diluted earnings per share rose to 0.75 yuan from 0.49 yuan a year earlier.
Average daily users increased 5.4% to 407.5 billion from 386.6 million, and average monthly users rose 4.3% to 714.1 million from 684.7 million a year ago.
India Indexes Extended Weekly Losses, Gautam Adani and Executives Face Bribery Charges In New York
Arun Goswami
21 Nov, 2024
Mumbai
Stocks in Mumbai traded down, reflecting market weakness in Asia and persistent worries about foreign fund outflows.
The Sensex index declined 0.5% to 77,172.19, and the Nifty index fell 0.6% to 23,378.60.
Stocks were under pressure after Gautam Adani, chairman of Adani Group, and seven others were charged in New York for an alleged bribery scheme.
The U.S. Department of Justice leveled charges against billionaire investors, citing telephone conversations and meetings with Indian officials to facilitate acquiring contracts for solar power projects between 2020 and 2024.
The U.S. authorities allege that Adani and executives at the company offered $250 million of bribes to Indian government officials and failed to disclose the arrangements to U.S. investors in a bond offering to finance $2 billion worth of solar energy projects.
Separately, the U.S. Securities and Exchange Commission charged Gautam Adani and his nephew Sagar Adani and Cyril Cabanes, an executive of Azure Power Global.
Adanis and Cabanes were charged by the regulatory agency for their role in raising $175 million through the sale of bonds for Adani Green Energy and misrepresenting to U.S. investors.
Adani Green Energy plunged 18.5% to ₹1,145.25, Adani Energy Solutions declined 20% to ₹697.25, Adani Power fell 14.3% to ₹449.0, and Adani Enterprises dropped 10% to ₹2,539.35.
India Stock Movers
Adani Enterprises declined 0.7% to ₹2,817.0 after Gautam Adani, chairman of the diversified group, was charged in New York over his role in a bribery and fraud scheme.
Bharti Airtel Ltd decreased 0.8% to ₹1,524.30, and the company awarded 4G and 5G telecom equipment orders to Finland-based Nokia Oyj.
Cipla Ltd. fell 0.3% to 1.462.0 after the company's U.S. subsidiary recalled 1,875 boxes of Lanthanum Carbonate chewable tablets, according to a latest enforcement report by the U.S. Food and Drug Administration.
The tablet is used to treat excessive phosphate in patients with end-stage kidney disease undergoing dialysis.
Godrej Industries declined 0.3% to ₹1,020.0, and the company raised 1,000 crore through the sale of unsecured non-convertible bonds of various maturities.
UPL Ltd eased 0.5% to ₹544.0, and the private equity group Alpha Wave Global invested $350 million (or about ₹2,850 crore) in the specialty chemical maker's subsidiary Advanta Enterprises.
Tata Technologies Ltd. increased 0.6% to ₹954.0 after the company signed a preliminary agreement with the Tripura government to upgrade 19 industrial training institutes in the northeastern state.
The company will invest 86% of the ₹683 crore total outlay, and the Tripura government will pay for the remaining 14%.
One 97 Communications Ltd edged up 1.2% to ₹824.40, and the company has launched a gateway for international payments for Indian travelers to the UAE, Bhutan, Nepal, France, and Mauritius.
India Indexes Extended Weekly Losses, Gautam Adani and Executives Face Bribery Charges In New York
Arun Goswami
21 Nov, 2024
Mumbai
Stocks in Mumbai traded down, reflecting market weakness in Asia and persistent worries about foreign fund outflows.
The Sensex index declined 0.5% to 77,172.19, and the Nifty index fell 0.6% to 23,378.60.
Stocks were under pressure after Gautam Adani, chairman of Adani Group, and seven others were charged in New York for an alleged bribery scheme.
The U.S. Department of Justice leveled charges against billionaire investors, citing telephone conversations and meetings with Indian officials to facilitate acquiring contracts for solar power projects between 2020 and 2024.
The U.S. authorities allege that Adani and executives at the company offered $250 million of bribes to Indian government officials and failed to disclose the arrangements to U.S. investors in a bond offering to finance $2 billion worth of solar energy projects.
Separately, the U.S. Securities and Exchange Commission charged Gautam Adani and his nephew Sagar Adani and Cyril Cabanes, an executive of Azure Power Global.
Adanis and Cabanes were charged by the regulatory agency for their role in raising $175 million through the sale of bonds for Adani Green Energy and misrepresenting to U.S. investors.
Adani Green Energy plunged 18.5% to ₹1,145.25, Adani Energy Solutions declined 20% to ₹697.25, Adani Power fell 14.3% to ₹449.0, and Adani Enterprises dropped 10% to ₹2,539.35.
India Stock Movers
Adani Enterprises declined 0.7% to ₹2,817.0 after Gautam Adani, chairman of the diversified group, was charged in New York over his role in a bribery and fraud scheme.
Bharti Airtel Ltd decreased 0.8% to ₹1,524.30, and the company awarded 4G and 5G telecom equipment orders to Finland-based Nokia Oyj.
Cipla Ltd. fell 0.3% to 1.462.0 after the company's U.S. subsidiary recalled 1,875 boxes of Lanthanum Carbonate chewable tablets, according to a latest enforcement report by the U.S. Food and Drug Administration.
The tablet is used to treat excessive phosphate in patients with end-stage kidney disease undergoing dialysis.
Godrej Industries declined 0.3% to ₹1,020.0, and the company raised 1,000 crore through the sale of unsecured non-convertible bonds of various maturities.
UPL Ltd eased 0.5% to ₹544.0, and the private equity group Alpha Wave Global invested $350 million (or about ₹2,850 crore) in the specialty chemical maker's subsidiary Advanta Enterprises.
Tata Technologies Ltd. increased 0.6% to ₹954.0 after the company signed a preliminary agreement with the Tripura government to upgrade 19 industrial training institutes in the northeastern state.
The company will invest 86% of the ₹683 crore total outlay, and the Tripura government will pay for the remaining 14%.
One 97 Communications Ltd edged up 1.2% to ₹824.40, and the company has launched a gateway for international payments for Indian travelers to the UAE, Bhutan, Nepal, France, and Mauritius.