Market Update
Tech and EV Rally Lifts Hang Seng Index to a Seven-Week High
Li Chen
30 Aug, 2024
Hong Kong
Stocks in Hong Kong and Shanghai advanced after bargain hunters returned to acquire tech and leading vehicle maker stocks.
The Hang Seng index and the CSI 300 index advanced 2% and extended weekly gains after two months of turbulent trading.
The Hang Seng index closed above 18,000 for the first time since May as investors searched for bargains amid beaten-down tech stocks and electric vehicle makers.
Electric vehicle makers rebounded between 3% and 11% following a sell-off in the previous session after the leading companies reported rising revenue and earnings, but margins continued to decline amid an intense price war.
Market sentiment further improved after the U.S. second-quarter GDP growth was revised higher to 3.0% from the previous estimate of 2.8% and 1.4% in the first quarter.
For the week, the Hang Seng index advanced 2.0% and the CSI index gained 0.3%.
China Stock Movers
The Hang Seng index increased 2.2% to 18,166.76, and the CSI 300 index rose 2% to 3,342.08.
Li Auto Group gained 10.5% to HK $80.90, BYD Group added 6.6% to HK $242.60, Xpeng increased 9.4% to HK $32.15, and Geely Automobile closed up 3.3% to HK $8.92.
HSBC Holdings increased 0.8% to HK $68.85, and the newly appointed chief executive Georges Elhedery announced a management shakeup.
Elhedery is set to assume the CEO position next week and appointed a new head of the global wealth management unit and created a leadership position for digital banking and technology development.
Baidu increased 2.5% to HK $83.55, Meituan jumped 4.2% to $120.60, Alibaba Group gained 3.4% to HK $81.85, and Tencent Holdings increased 1.8% to HK $384.40.
India Movers: Movers: CDSL, Interglobe Aviation, Jai Corp., ITI, NBCC, Sugar Stocks, Spicejet
Arun Goswami
30 Aug, 2024
Mumbai
Benchmark indexes in Mumbai extended gains for the third week in a row amid improving global market sentiment and a weakening inflation outlook in the U.S. and Europe.
The Sensex index increased by 0.3% to 82,361.39, and the Nifty index rose 0.3% to 25,225.80.
On the Mumbai stock exchange, 122 stocks traded at their 52-week highs, and 9 stocks traded at their 52-week lows.
Sugar stocks were in focus after the central government removed the restriction on using cane juice to make ethanol effective November 1.
Balrampur Chini Mills gained 5.4% to₹610.40, Shree Renuka Sugars increased 0.6% to ₹50.72, Bajaj Hindusthan Sugar jumped 6.5% to ₹43.42, and Kothari Sugars and Chemicals added 5.2% to ₹58.31.
Spicejet Ltd. decreased 5.6% to ₹62.50, and the aviation regulator placed the budget carrier under immediate "enhanced surveillance' to ensure safety of the operations.
ITI Ltd. increased 2.6% to ₹307.15, and the company won an order to provide 500 electronic voting machines to the election commission of West Bengal.
CDSL added 2.4% to ₹1,462.80, and the SEBI approved the appointment of Nehal Vora as the managing director and chief executive officer of the company.
Interglobe Aviation advanced 1.8% to ₹4,846.35, and the promoter entity controlled by the founder Rakesh Gangwal has sold a 5.24% stake in the company for ₹9,549 crore.
Jai Corporation declined 5.1% ₹372.40, and the diversified engineering and infrastructure company's board approved the stock buyback plan of 29.44 lakh shares at a price of ₹400 per share from shareholders on record September 10.
The company plans to acquire up to a 1.65% stake for ₹177.8 crore.
NBCC India Ltd. declined 3.9% to ₹187.20 after the company sold its entire inventory of office and commercial space inventory at World Trade Center, Sarojini Nagar, and downtown locations in New Delhi for ₹14,800 crore.
4-Week Long Recovery Rally Picks Up Pace In New York After Positive Earnings
Alexander Garcia
29 Aug, 2024
Miami
Stocks on Wall Street extended recovery rally in the fourth week and rebound from the decline in the previous session after investors reviewed the latest results from artificial intelligence leader Nvidia Corp., Salesforce, Dollar General, and Best Buy.
Nvidia reported a surge in revenue and earnings, exceeding market forecasts, and the company issued a cautious sales growth outlook in the current quarter.
Despite the company's stellar quarter, Nvidia's stock faced selling in the early trading as short-term traders chose to lighten their holdings.
In other earnings news, Dollar General lowered its annual sales, earnings, and comparable sales outlook, citing stretched consumers amid high cost of living.
Best Buy reported better-than-expected quarterly results after comparable same-store sales fell at a slower pace from a year ago, but Salesforce's quarterly results exceeded market expectations.
U.S. Second Quarter GDP Growth Revised Higher
On the economic front, the U.S. economic growth in the second quarter was revised higher to 3.0% from the previous estimate of 2.8% and from 1.4% in the first quarter, the Bureau of Economic Analysis reported Thursday.
International Goods Deficit Widened In July
The U.S. goods trade deficit widened to $102.7 billion in July from the downwardly revised $96.6 billion in the previous month, according to the preliminary estimate by the U.S. Census Bureau.
The goods deficit was the widest in over two years, after imports expanded by 2.3% from the previous month to $275.6 billion and exports were flat at $172.9 billion.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.9% to 5,644.96, the Nasdaq Composite rose 1.2% to 17,771.48, and the Russell 2000 index advanced 1.3% to 2,217.42.
The yield on 2-year Treasury notes edged higher to 3.89%, 10-year Treasury notes increased to 3.86%, and 30-year Treasury bonds inched lower to 4.14%.
WTI crude oil increased $1.41 to $75.93 a barrel, and natural gas prices edged up 4 cents to $2.14 a thermal unit.
Gold fell by $14.85 to $2,522.93 an ounce, and silver increased by $0.33 to $29.50.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.44.
U.S. Stock Movers
Semiconductor-related stocks were under pressure after Nvidia's current quarter sales estimate fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, and dramatic transformation of the company have attracted worldwide attention, catapulting the company's valuation above one trillion only a few months ago.
The company's results are now viewed as a proxy for artificial intelligence spending by tech companies and provide critical support for the tech stock rally in 2024.
Nvidia said revenue in the fiscal second quarter ending in July soared 122% to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors lofty expectations.
Salesforce increased 4.5% to $270.50, and the customer relations management software developer reported better-than-expected fiscal second quarter results.
In addition, the company said chief financial officer Amy Weaver will step down.
Crowdstrike Holdings declined 1.3% to $260.78, and the cybersecurity company surpassed revenue and earnings expectations set by analysts.
Dollar General plunged 26% to $92.38, after the discount store chain operator reported weaker-than-estimated sales and earnings in the latest quarter and slashed its annual outlook.
Revenue in the second quarter increased 4.2% to $10.2 billion, net income dropped 20.2% to $374.2 million from $468.8 million, and diluted earnings per share decreased 20% to $1.70 from $2.13 a year earlier.
The retailer lowered its annual sales outlook to between 4.7% and 5.3% from the previous estimate between 6.0% and 6.7%, with the same store sales range between 1.0% and 1.7% compared to the previous range between 2.0% and 2.7%.
The company estimated full-year diluted earnings per share to range between $5.50 and $6.20, lower than the previously estimated range between $6.80 and $7.55.
Best Buy Company soared 14.2% to $100.45 after the electronics retailer reported better-than-estimated profit and lifted its annual adjusted earnings outlook.
Net sales in the quarter dropped to $9.29 billion from $9.58 billion, net income in the fiscal fourth quarter increased to $291 million from $274 million, and diluted earnings per share rose to $1.34 from $1.25 a year earlier.
The company said comparable sales in the quarter decreased 2.3%, compared with a shrink of 6.2% in the period a year earlier.
The retailer now expects full-year adjusted earnings per share in the range of $6.10 to $6.35, up from the previously estimated range of $5.75 to $6.20.
EU Inflation Outlook Weakened, Passenger Car Registration Edged Slightly Higher
European market indexes advanced for the third consecutive day in a row amid rising hopes of a possible rate cut in September.
Benchmark indexes in Frankfurt advanced 0.7% after a report showed inflation in six key states in Germany in August inched lower, lifting hopes of a rate cut.
The euro edged lower after Germany's inflation eased more than expected in August, setting the stage for a possible rate cut in September.
Consumer price inflation slowed to 1.9% in August from 2.3% in July, the lowest level since March 2023, according to data released by the Federal Statistical Office, or Destatis.
Spain's annual inflation rate declined to a one-year low, according to a preliminary report released by the National Statistics Institute on Thursday.
Consumer price inflation eased to 2.2% in August from 2.8% in July, mainly because of the decline in fuel prices.
The core rate of inflation, which excludes volatile food and energy prices, slowed to 2.7%, the lowest since January 2022, and down from 2.8% in July.
Bond yields in the euro zone eased following the easing of inflation, raising the prospect of a possible rate cut in September after the policy meeting on September 12.
EU Passenger Car Sales Growth Slowed in July
Passenger car registration in the European Union increased slowed to 0.2% in July from 4.3% in the prior month, the European Automobile Manufacturers' Association reported Thursday.
Car registration increased to 852,051 units in July, driven by mixed results in the four largest markets in the region.
Registrations from a year ago increased 4.7% in Italy, 3.4% in Spain, but declined 2.3% in France and 2.1% in Germany.
Battery electric car registration declined 10.8% to 102,700 units, with total market share shrank to 12.1% from 13.5% a year earlier, driven largely by the decline of 36.8% in Germany.
Hybrid-electric vehicles continued to be in favor in July, with car registrations rising by 25.7% to 273,003 units.
All four of the largest markets recorded double-digit gains, and sales surged in France by 47.4%, Spain by 31.5%, Germany by 22.4%, and Italy by 17.4%.
This increase in sales lifted the hybrid-electric car market share to 32%, up from 25.5% a year ago.
For the first seven months of 2024, car registration increased 3.9% from the previous year to 6.5 million.
Europe Indexes and Yields
The DAX index increased by 0.6% to 18,912.57; the CAC-40 index rose by 0.8% to 7,640.95; and the FTSE 100 index rose by 0.4% to 8,379.64.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched down to 2.94%, the UK gilts edged up to 3.98%, and Italian bonds increased to 3.63%.
The euro edged down to $1.10; the British pound inched higher to $1.31; and the U.S. dollar weakened to 84.34 Swiss cents.
Brent crude decreased $1.29 to $79.92 a barrel, and the Dutch TTF natural gas rose by €0.94 to €39.24 per MWh.
Europe Stock Movers
Automakers edged slightly higher after passenger car registration in the European Union advanced in July.
Volkswagen Group AG edged up 0.1% to €103.50, Mercedes-Benz Group added 0.6% to €62.55, BMW increased 0.2% to €83.66, and Renault inched up 0.4% to €43.03.
British bank stocks rebounded between 1% and 2% and reversed losses in the previous session on the worry that the latest budget from the new government could impose additional taxes on the sector.
HSBC Holdings jumped 0.5% to 662.90 pence, Barclays PLC advanced 1.4% to 227.10, NatWest Group PLC inched up 0.5% to 339.80 pence, and Lloyds Banking Group jumped 0.9% to 339.80 pence.
GSK plc increased 0.6% to 1,660.50 pence after the pharmaceutical company's RSV received approval for a wider use in adults in Europe.
Delivery Hero SE soared 10% to €25.85 after the food delivery service provider reported better-than-expected results in the first half.
Revenue increased to €3.09 billion from €2.6 billion a year earlier, driven by an increase in gross merchandise volume to €11.89 billion from €11.08 billion.
The company reiterated its annual gross merchandise volume to increase between 7% and 9%, revenue to jump between 18% and 21%, and adjusted operating earnings between €725 million and €775 million.
Japan's Nikkei 225 Index Extended Losses to Third Consecutive Day Amid Weak Tech Stocks
Benchmark indexes in Tokyo struggled to advance for the third day in a row, and losses in technology stocks outweighed gains in other sectors.
Semiconductor-related stocks were under pressure in Tokyo after Nvidia's current quarter sales outlook fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, and dramatic transformation of the company have attracted worldwide attention, catapulting the company's valuation above one trillion only a few months ago.
The company's results are now viewed as a proxy for artificial intelligence spending by tech companies and provide critical support for the tech stock rally in 2024.
Nvidia said revenue in the fiscal second quarter ending in July soared 122% to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors lofty expectations.
Closer to home, the yen weakened 0.13 to 144.53 yen against the U.S. dollar after comments from Deputy Governor Ryozo Himino soothed market anxieties about future rate paths.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.1% to 38,352.12, and the broader Topix index declined 0.1% to 2,692.15.
Semiconductor stocks plunged, tracking losses in Nvidia's stock in after-hours trading in New York.
Tokyo Electron, Advantest, Screen Holding, Disco Corp., and Lasertec fell between 0.5% and 4%.
Nidec declined 3.3% to ¥5,887.0, ZOZO dropped 3% to ¥4,615.0, Shiseido fell 2.2% to ¥3,271.0, and Rakuten Group eased 4.3% to ¥1,002.0.
However, Sompo Holding increased 2.6% to ¥3,421.0, and Taiyo Yuden advanced 2.2% to ¥3,506.0.
Sumitomo Mitsui Financial declined 0.4% to ¥9,597.0, Mitsubishi UFJ Financial increased 0.4% to ¥1,516.0, and Mizuho Financial Group fell 0.4% to ¥3,003.0.
Toyota Motor decreased 0.7% to ¥2,726.0, Honda Motor increased 0.7% to ¥1,583.0, and Nissan Motor plunged 1.8% to ¥420.20.
EV Makers In China Report Weakening Margins, Meituan Earnings Soared
Stocks in Hong Kong and Shanghai faced another day of selling pressure, and electric vehicle makers led the decliners in Hong Kong trading.
The Hang Seng index fell 0.3% and the CSI 300 index decreased 0.2% after Li Auto reported weaker-than-expected earnings and a sharp decline in margins.
The intense price war among electric vehicle makers finally caught up with leading companies in the sector, and Li Auto's results reflected the worsening market environment.
Moreover, semiconductor-related stocks were under pressure in Hong Kong and mainland China after Nvidia's current quarter sales outlook fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, reported revenue soared 122% from a year ago to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors expectations.
Tech stocks declined despite the shopping platform operator Meituan reporting a sharp jump in profit in the second quarter.
China Stock Movers
The Hang Seng index declined 0.3% to 17,636.0 and the CSI 300 index dropped 0.2% to 3,278.07.
Li Auto decreased 8.3% to HK $74.35 and BYD declined 1.3% to HK $223.0 after the electric vehicle makers reported their quarterly results.
Li Auto profit in the second quarter soared 86% to 1.1 billion yuan, and gross margin shrank 1.1 percentage points to 19.5%.
Li Auto said unit sales in the second quarter increased 35.1% to 108,581, and the electric vehicle maker estimated sales in the current quarter to range between 145,000 and 155,000 unis.
BYD said first-half profit increased to 13.6 billion yuan, resulting in an increase of 32.8% from a year ago in the second quarter to 9.1 billion yuan.
China is the world's largest electric vehicle market, with sales of battery-operated cars now accounting for more than 50% of all passenger car sales in the country.
Meituan jumped 9.3% to HK $113.70, and the Chinese's largest shopping platform operator reported a jump in revenue and earnings in the second quarter.
Revenue increased 21% to 82 billion yuan from 68 billion yuan, and net income soared 142% to 11 billion yuan from 4.7 billion yuan a year ago.
On-demand transactions in the quarter rose 14% to 6.1 billion, driven by an increase in products available for sale and several campaigns for discounted delivery services.
China Mengniu Dairy Company jumped 9.5% to HK $13.14 after the company announced a stock buyback worth HK $2 billion.
U.S. Movers: American Eagle, Best Buy, Crowdstrike, Dollar General, Nvidia, Salesforce
Scott Peters
29 Aug, 2024
New York City
Semiconductor-related stocks were under pressure after Nvidia's current quarter sales estimate fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, and dramatic transformation of the company have attracted worldwide attention, catapulting the company's valuation above one trillion only a few months ago.
The company's results are now viewed as a proxy for artificial intelligence spending by tech companies and provide critical support for the tech stock rally in 2024.
Nvidia said revenue in the fiscal second quarter ending in July soared 122% to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors lofty expectations.
Salesforce increased 4.5% to $270.50, and the customer relations management software developer reported better-than-expected fiscal second quarter results.
In addition, the company said chief financial officer Amy Weaver will step down.
Crowdstrike Holdings declined 1.3% to $260.78, and the cybersecurity company surpassed revenue and earnings expectations set by analysts.
Dollar General plunged 26% to $92.38, after the discount store chain operator reported weaker-than-estimated sales and earnings in the latest quarter and slashed its annual outlook.
Revenue in the second quarter increased 4.2% to $10.2 billion, net income dropped 20.2% to $374.2 million from $468.8 million, and diluted earnings per share decreased 20% to $1.70 from $2.13 a year earlier.
The retailer lowered its annual sales outlook to between 4.7% and 5.3% from the previous estimate between 6.0% and 6.7%, with the same store sales range between 1.0% and 1.7% compared to the previous range between 2.0% and 2.7%.
The company estimated full-year diluted earnings per share to range between $5.50 and $6.20, lower than the previously estimated range between $6.80 and $7.55.
Best Buy Company soared 14.2% to $100.45 after the electronics retailer reported better-than-estimated profit and lifted its annual adjusted earnings outlook.
Net sales in the quarter dropped to $9.29 billion from $9.58 billion, net income in the fiscal fourth quarter increased to $291 million from $274 million, and diluted earnings per share rose to $1.34 from $1.25 a year earlier.
The company said comparable sales in the quarter decreased 2.3%, compared with a shrink of 6.2% in the period a year earlier.
The retailer now expects full-year adjusted earnings per share in the range of $6.10 to $6.35, up from the previously estimated range of $5.75 to $6.20.
American Eagle Outfitters declined 6.6% to $20.26, and the apparel retailer reported weaker-than-estimated sales in the second quarter.
The retailer said revenue in the second quarter increased 8% to $1.3 billion from $1.2 billion, net income advanced to $77.3 million from $48.5 million, and diluted earnings per share rose to 39 cents from 25 cents a year earlier.
The company estimated comparable store sales in 2024 to increase between 3% and 4% and operating earnings to range between $120 million and $140 million.
The young-adult-focused apparel retailer has struggled to lift its store sales as shoppers shift to online, where retailers are struggling with intense price competitions from China-based shopping platforms.
Stocks Rebound On Wall Street, Nvidia Posts Strong Quarterly Results
Barry Adams
29 Aug, 2024
New York City
Stocks on Wall Street attempted to rebound from the decline in the previous session after investors reviewed the latest results from artificial intelligence leader Nvidia Corp., Salesforce, Dollar General, and Best Buy.
Nvidia reported a surge in revenue and earnings, exceeding market forecasts, and the company issued a cautious sales growth outlook in the current quarter.
Despite the company's stellar quarter, Nvidia's stock faced selling in the early trading as short-term traders chose to lighten their holdings.
In other earnings news, Dollar General lowered its annual sales, earnings, and comparable sales outlook, citing stretched consumers amid high cost of living.
Best Buy reported better-than-expected quarterly results after comparable same-store sales fell at a slower pace from a year ago, but Salesforce's quarterly results exceeded market expectations.
On the economic front, the U.S. economic growth in the second quarter was revised higher to 3.0% from the previous estimate of 2.8% and from 1.4% in the first quarter, the Bureau of Economic Analysis reported Thursday.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.3% to 5,608.56, the Nasdaq Composite rose 0.4% to 17,642.17, and the Russell 2000 index fell 0.7% to 2,188.14.
The yield on 2-year Treasury notes edged higher to 3.89%, 10-year Treasury notes increased to 3.86%, and 30-year Treasury bonds inched lower to 4.14%.
WTI crude oil increased $0.50 to $75.02 a barrel, and natural gas prices edged down 4 cents to $2.05 a thermal unit.
Gold fell by $1.03 to $2,506.81 an ounce, and silver increased by $0.14 to $29.32.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.44.
U.S. Stock Movers
Semiconductor-related stocks were under pressure after Nvidia's current quarter sales estimate fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, and dramatic transformation of the company have attracted worldwide attention, catapulting the company's valuation above one trillion only a few months ago.
The company's results are now viewed as a proxy for artificial intelligence spending by tech companies and provide critical support for the tech stock rally in 2024.
Nvidia said revenue in the fiscal second quarter ending in July soared 122% to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors lofty expectations.
Salesforce increased 4.5% to $270.50, and the customer relations management software developer reported better-than-expected fiscal second quarter results.
In addition, the company said chief financial officer Amy Weaver will step down.
Crowdstrike Holdings declined 1.3% to $260.78, and the cybersecurity company surpassed revenue and earnings expectations set by analysts.
Dollar General plunged 26% to $92.38, after the discount store chain operator reported weaker-than-estimated sales and earnings in the latest quarter and slashed its annual outlook.
Revenue in the second quarter increased 4.2% to $10.2 billion, net income dropped 20.2% to $374.2 million from $468.8 million, and diluted earnings per share decreased 20% to $1.70 from $2.13 a year earlier.
The retailer lowered its annual sales outlook to between 4.7% and 5.3% from the previous estimate between 6.0% and 6.7%, with the same store sales range between 1.0% and 1.7% compared to the previous range between 2.0% and 2.7%.
The company estimated full-year diluted earnings per share to range between $5.50 and $6.20, lower than the previously estimated range between $6.80 and $7.55.
Best Buy Company soared 14.2% to $100.45 after the electronics retailer reported better-than-estimated profit and lifted its annual adjusted earnings outlook.
Net sales in the quarter dropped to $9.29 billion from $9.58 billion, net income in the fiscal fourth quarter increased to $291 million from $274 million, and diluted earnings per share rose to $1.34 from $1.25 a year earlier.
The company said comparable sales in the quarter decreased 2.3%, compared with a shrink of 6.2% in the period a year earlier.
The retailer now expects full-year adjusted earnings per share in the range of $6.10 to $6.35, up from the previously estimated range of $5.75 to $6.20.
European Movers: Automakers, British Banks, Delivery Hero, GSK
Inga Muller
29 Aug, 2024
Frankfurt
The weakening inflation outlook in the Euro Area supported the case for a possible rate cut after the next policy meeting in September.
The EU's passenger car registration edged slightly higher, and more buyers preferred hybrid cars.
The DAX index increased by 0.7% to 18,900.39; the CAC-40 index rose by 0.7% to 7,630.93; and the FTSE 100 index rose by 0.2% to 8,366.16.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched down to 2.94%, the UK gilts edged up to 3.98%, and Italian bonds increased to 3.63%.
Automakers edged slightly higher after passenger car registration in the European Union advanced in July.
Volkswagen Group AG edged up 0.1% to €103.50, Mercedes-Benz Group added 0.6% to €62.55, BMW increased 0.2% to €83.66, and Renault inched up 0.4% to €43.03.
British bank stocks rebounded between 1% and 2% and reversed losses in the previous session on the worry that the latest budget from the new government could impose additional taxes on the sector.
HSBC Holdings jumped 0.5% to 662.90 pence, Barclays PLC advanced 1.4% to 227.10, NatWest Group PLC inched up 0.5% to 339.80 pence, and Lloyds Banking Group jumped 0.9% to 339.80 pence.
GSK plc increased 0.6% to 1,660.50 pence after the pharmaceutical company's RSV received approval for a wider use in adults in Europe.
Delivery Hero SE soared 10% to €25.85 after the food delivery service provider reported better-than-expected results in the first half.
Revenue increased to €3.09 billion from €2.6 billion a year earlier, driven by an increase in gross merchandise volume to €11.89 billion from €11.08 billion.
The company reiterated its annual gross merchandise volume to increase between 7% and 9%, revenue to jump between 18% and 21%, and adjusted operating earnings between €725 million and €775 million.
EU Inflation Outlook Weakened, Passenger Car Registration Edged Slightly Higher
Bridgette Randall
29 Aug, 2024
London
European market indexes advanced for the third consecutive day in a row amid rising hopes of a possible rate cut in September.
Benchmark indexes in Frankfurt advanced 0.7% after a report showed inflation in six key states in Germany in August inched lower, lifting hopes of a rate cut.
The euro edged lower after Germany's inflation eased more than expected in August, setting the stage for a possible rate cut in September.
Consumer price inflation slowed to 1.9% in August from 2.3% in July, the lowest level since March 2023, according to data released by the Federal Statistical Office, or Destatis.
Spain's annual inflation rate declined to a one-year low, according to a preliminary report released by the National Statistics Institute on Thursday.
Consumer price inflation eased to 2.2% in August from 2.8% in July, mainly because of the decline in fuel prices.
The core rate of inflation, which excludes volatile food and energy prices, slowed to 2.7%, the lowest since January 2022, and down from 2.8% in July.
Bond yields in the euro zone eased following the easing of inflation, raising the prospect of a possible rate cut in September after the policy meeting on September 12.
EU Passenger Car Sales Growth Slowed in July
Passenger car registration in the European Union increased slowed to 0.2% in July from 4.3% in the prior month, the European Automobile Manufacturers' Association reported Thursday.
Car registration increased to 852,051 units in July, driven by mixed results in the four largest markets in the region.
Registrations from a year ago increased 4.7% in Italy, 3.4% in Spain, but declined 2.3% in France and 2.1% in Germany.
Battery electric car registration declined 10.8% to 102,700 units, with total market share shrank to 12.1% from 13.5% a year earlier, driven largely by the decline of 36.8% in Germany.
Hybrid-electric vehicles continued to be in favor in July, with car registrations rising by 25.7% to 273,003 units.
All four of the largest markets recorded double-digit gains, and sales surged in France by 47.4%, Spain by 31.5%, Germany by 22.4%, and Italy by 17.4%.
This increase in sales lifted the hybrid-electric car market share to 32%, up from 25.5% a year ago.
For the first seven months of 2024, car registration increased 3.9% from the previous year to 6.5 million.
Europe Indexes and Yields
The DAX index increased by 0.7% to 18,900.39; the CAC-40 index rose by 0.7% to 7,630.93; and the FTSE 100 index rose by 0.2% to 8,366.16.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched down to 2.94%, the UK gilts edged up to 3.98%, and Italian bonds increased to 3.63%.
The euro edged down to $1.10; the British pound inched higher to $1.31; and the U.S. dollar weakened to 84.34 Swiss cents.
Brent crude decreased $0.08 to $78.72 a barrel, and the Dutch TTF natural gas rose by €0.21 to €38.50 per MWh.
Europe Stock Movers
Automakers edged slightly higher after passenger car registration in the European Union advanced in July.
Volkswagen Group AG edged up 0.1% to €103.50, Mercedes-Benz Group added 0.6% to €62.55, BMW increased 0.2% to €83.66, and Renault inched up 0.4% to €43.03.
British bank stocks rebounded between 1% and 2% and reversed losses in the previous session on the worry that the latest budget from the new government could impose additional taxes on the sector.
HSBC Holdings jumped 0.5% to 662.90 pence, Barclays PLC advanced 1.4% to 227.10, NatWest Group PLC inched up 0.5% to 339.80 pence, and Lloyds Banking Group jumped 0.9% to 339.80 pence.
GSK plc increased 0.6% to 1,660.50 pence after the pharmaceutical company's RSV received approval for a wider use in adults in Europe.
Delivery Hero SE soared 10% to €25.85 after the food delivery service provider reported better-than-expected results in the first half.
Revenue increased to €3.09 billion from €2.6 billion a year earlier, driven by an increase in gross merchandise volume to €11.89 billion from €11.08 billion.
The company reiterated its annual gross merchandise volume to increase between 7% and 9%, revenue to jump between 18% and 21%, and adjusted operating earnings between €725 million and €775 million.
Japan's Nikkei 225 Index Extended Losses to Third Consecutive Day Amid Weak Tech Stocks
Akira Ito
29 Aug, 2024
Tokyo
Benchmark indexes in Tokyo struggled to advance for the third day in a row, and losses in technology stocks outweighed gains in other sectors.
Semiconductor-related stocks were under pressure in Tokyo after Nvidia's current quarter sales outlook fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, and dramatic transformation of the company have attracted worldwide attention, catapulting the company's valuation above one trillion only a few months ago.
The company's results are now viewed as a proxy for artificial intelligence spending by tech companies and provide critical support for the tech stock rally in 2024.
Nvidia said revenue in the fiscal second quarter ending in July soared 122% to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors lofty expectations.
Closer to home, the yen weakened 0.13 to 144.53 yen against the U.S. dollar after comments from Deputy Governor Ryozo Himino soothed market anxieties about future rate paths.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.1% to 38,352.12, and the broader Topix index declined 0.1% to 2,692.15.
Semiconductor stocks plunged, tracking losses in Nvidia's stock in after-hours trading in New York.
Tokyo Electron, Advantest, Screen Holding, Disco Corp., and Lasertec fell between 0.5% and 4%.
Nidec declined 3.3% to ¥5,887.0, ZOZO dropped 3% to ¥4,615.0, Shiseido fell 2.2% to ¥3,271.0, and Rakuten Group eased 4.3% to ¥1,002.0.
However, Sompo Holding increased 2.6% to ¥3,421.0, and Taiyo Yuden advanced 2.2% to ¥3,506.0.
Sumitomo Mitsui Financial declined 0.4% to ¥9,597.0, Mitsubishi UFJ Financial increased 0.4% to ¥1,516.0, and Mizuho Financial Group fell 0.4% to ¥3,003.0.
Toyota Motor decreased 0.7% to ¥2,726.0, Honda Motor increased 0.7% to ¥1,583.0, and Nissan Motor plunged 1.8% to ¥420.20.
Electric Vehicle Makers In China Report Weakening Margins, Meituan Sales and Earnings Advanced
Li Chen
29 Aug, 2024
Hong Kong
Stocks in Hong Kong and Shanghai faced another day of selling pressure, and electric vehicle makers led the decliners in Hong Kong trading.
The Hang Seng index fell 0.3% and the CSI 300 index decreased 0.2% after Li Auto reported weaker-than-expected earnings and a sharp decline in margins.
The intense price war among electric vehicle makers finally caught up with leading companies in the sector, and Li Auto's results reflected the worsening market environment.
Moreover, semiconductor-related stocks were under pressure in Hong Kong and mainland China after Nvidia's current quarter sales outlook fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, reported revenue soared 122% from a year ago to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors expectations.
Tech stocks declined despite the shopping platform operator Meituan reporting a sharp jump in profit in the second quarter.
China Stock Movers
The Hang Seng index declined 0.3% to 17,636.0 and the CSI 300 index dropped 0.2% to 3,278.07.
Li Auto decreased 8.3% to HK $74.35 and BYD declined 1.3% to HK $223.0 after the electric vehicle makers reported their quarterly results.
Li Auto profit in the second quarter soared 86% to 1.1 billion yuan, and gross margin shrank 1.1 percentage points to 19.5%.
Li Auto said unit sales in the second quarter increased 35.1% to 108,581, and the electric vehicle maker estimated sales in the current quarter to range between 145,000 and 155,000 unis.
BYD said first-half profit increased to 13.6 billion yuan, resulting in an increase of 32.8% from a year ago in the second quarter to 9.1 billion yuan.
China is the world's largest electric vehicle market, with sales of battery-operated cars now accounting for more than 50% of all passenger car sales in the country.
Meituan jumped 9.3% to HK $113.70, and the Chinese's largest shopping platform operator reported a jump in revenue and earnings in the second quarter.
Revenue increased 21% to 82 billion yuan from 68 billion yuan, and net income soared 142% to 11 billion yuan from 4.7 billion yuan a year ago.
On-demand transactions in the quarter rose 14% to 6.1 billion, driven by an increase in products available for sale and several campaigns for discounted delivery services.
China Mengniu Dairy Company jumped 9.5% to HK $13.14 after the company announced a stock buyback worth HK $2 billion.
India Movers: Annapurna Swadisht, Lemon Tree Hotels, PDS, Shaily Engineering, Reliance Industries, TCNS Clothing, VLS Finance
Arun Goswami
29 Aug, 2024
Mumbai
The Competition Commission approved the merger of Reliance-promoted Viacom 18 and Disney-controlled Star of India.
Reliance Industries holds its annual general meeting today.
The Sensex index increased by 0.4% to 81,961.13, and the Nifty index rose 0.2% to 25,097.50.
On the Mumbai stock exchange, 158 stocks traded at their 52-week highs, and 14 stocks traded at their 52-week lows.
Reliance Industries decreased 0.2% to ₹2,990.25, and the company is holding its annual general meeting today.
Moreover, the Competition Commission of India approved the merger of Reliance-controlled Viacom18 with Disney-owned Start India.
After the merger, Reliance Industries will control a 56% stake in the media and entertainment company, Disney 37%, and Bodhi Tree Systems 7%.
Annapurna Swadisht declined 6.8% to ₹467.05, and the company launched its institutional secondary offering with a floor price of ₹434.96 per share.
PDS Ltd. decreased 2.8% to ₹587.50, and the apparel manufacturing company completed its 430 crore secondary offering to institutional investors.
Shaily Engineering Plastics increased 0.6% to ₹965.0, and Motilal Oswald Mutual Fund acquired an additional 0.68% stake in the company at an average price of ₹923.63 per share.
The company previously acquired a 1.04% stake in the company for ₹940 per share.
TCNS Clothing Company fell 0.1% to ₹572.85, and mutual funds controlled by Religare Invesco, Edelweiss, and Invesco acquired about 3.2% stake in the company from funds controlled by Morgan Stanley Asia, Nomura Asia, and Setu Securities.
Lemon Tree Hotels increased 1.2% to ₹134.29, and the company plans to open a hotel in Ujjain, Madhya Pradesh, with 72 rooms and other facilities in the financial year 2027.
VLS Finance added 0.7% to₹374.15, and the company announced a 33 lakh stock buyback plan at a price of₹380 per share, totaling ₹125.4 crore.
Global Tech Rally On Hold as Investors Anticipate Another Stellar Quarter from Nvidia
Alexander Garcia
28 Aug, 2024
Miami
Market indexes turned lower after struggling to advance in the morning as investors turned cautious ahead of the widely anticipated earnings results from artificial intelligence leader Nvidia Corp.
Tech and semiconductor stocks were in focus for the third consecutive day, and Nvidia Corp. is scheduled to release its quarterly results after the close of regular trading hours today.
Semiconductor equipment and technology stocks traded sideways ahead of Nvidia's earnings, and the company is seen as a bellwether for artificial intelligence-related spending by Microsoft, Amazon, Meta Platforms, and Alphabet and other leading tech companies.
Investors are looking for clues about the company's progress in holding its leadership position in artificial intelligence technology, revenue growth outlook, and development of new higher-margin products.
Nvidia's line of advanced semiconductor products has gained a solid following among leading tech companies to enable their artificial intelligence-based applications.
Nvidia's revenues have surged multi-fold over the last three years as tech companies escalate deployment of AI-enabled applications, fueling a wild run on the stock.
Nvidia's stock has soared 155% in the year so far and jumped 1,000% over the last three years, driven by stellar performance and strong interest from tech investors around the world.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.5% to 5,596.07, the Nasdaq Composite fell 0.9% to 17,592.80, and the Russell 2000 index declined 0.3% to 2,196.18.
The yield on 2-year Treasury notes edged lower to 3.87%, 10-year Treasury notes decreased to 3.82%, and 30-year Treasury bonds inched lower to 4.12%.
WTI crude oil decreased $0.45 to $75.06 a barrel, and natural gas prices edged up 3 cents to $2.12 a thermal unit.
Gold fell by $23.95 to $2,499.22 an ounce, and silver increased by $0.79 to $29.22.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.10.
U.S. Stock Movers
Nordstrom increased 4.5% to $22.11, and the luxury apparel and accessories retailer reported better-than-estimated second-quarter revenue and earnings.
The retailer also lifted its annual sales outlook despite the macroeconomic uncertainty.
PVH Corp. dropped 7.8% to $22.11, and the apparel manufacturer reported revenue that matched analysts' expectations, but the company's current quarter outlook disappointed investors.
Berkshire Hathaway Class B increased 1% to $465.56, and the company said it sold 24.7 million shares of Bank of America and extended its sale to $5 billion over the last two months.
Berkshire's share in Bank of America dropped to 11.6% after the latest sale.
Abercrombie & Fitch declined 4.5% to $141.87 despite the specialty apparel retailer reporting higher sales and earnings in its fiscal second quarter and the company lifting its annual outlook.
Revenue increased 21% to $1.1 billion, net income soared to $133 million from $57 million, and earnings per share advanced to $2.50 from $1.10 a year ago.
The company revised its full-year sales to increase between 12% and 13%, from the previous estimate of an increase of 10%.
Foot Locker plunged 15.3% to $27.77, and the footwear retailer reported better-than-expected sales and smaller-than-expected loss in the latest quarter.
Revenue in the latest quarter increased 1.9% to $1.89 billion from $1.86 billion, net loss expanded to $12 million from $5 million, and diluted loss per share rose to 13 cents from 5 cents a year earlier.
Comparable sales in the latest quarter increased 2.6%, driven by global Foot Locker and Kinds Foot Locker sales rise of 5.2%.
European Markets Attempt to Extend Weekly Gains
Stock market indexes in the Euro Area advanced amid caution ahead of inflation data in the region and retail sales updates in Spain.
Semiconductor equipment makers were in focus ahead of widely anticipated earnings from artificial intelligence leader Nvidia Corp.
Benchmark indexes in Frankfurt and Paris advanced more than 0.5%, but leading indexes in London lacked direction in Wednesday's trading.
Nvidia, widely seen as a bellwether for artificial intelligence investment by key technology companies, has soared more than 160% in the year so far and 1,000% in the last three years.
The advanced chip designer's revenue has jumped more than 80% for eight quarters in a row, and investors are hoping for similar revenue growth in the current quarter.
Semiconductor equipment could turn volatile if the company misses elevated revenue and earnings expectations set by global tech investors.
Eurozone Lending Growth Accelerates to 8-Month High
The Euro Area's bank lending to households increased 0.5% to €6.883 trillion, accelerating from a 0.3% increase in the previous month, the European Central Bank reported Wednesday.
In addition, lending to private corporations increased 0.6% to €5.14 trillion, and overall private sector lending, including non-financial corporations and households, picked up to 1.3% from 1.1% in the previous month.
Europe Indexes and Yields
The DAX index increased by 0.5% to 18,782.29; the CAC-40 index rose by 0.2% to 7,577.67; and the FTSE 100 index fell by 0.02% to 8,343.85.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched down to 2.96%, the UK gilts edged down to 3.94%, and Italian bonds decreased to 3.61%.
The euro edged down to $1.12; the British pound inched higher to $1.32; and the U.S. dollar weakened to 84.65 Swiss cents.
Brent crude decreased $0.38 to $79.18 a barrel, and the Dutch TTF natural gas rose by €0.39 to €38.32 per MWh.
Europe Stock Movers
Mining companies retreated after copper prices fell from a five-week high of $4.20 per pound amid a weak China demand growth outlook.
BHP Group slashed its imminent China group outlook but held out for higher prices, citing a prolonged global supply deficit.
Antofagasta decreased 4.3% to 1,828.28 pence, Anglo American declined 1.8% to 2,239.0 pence, Glencore PLC dropped 1.8% to 403.15 pence, and BHP Group fell 1.5% to 2,064.0 pence.
Hochschild Mining Plc declined 5.6% to 182.40 pence despite the precious metal mining company reporting strong first-half results on higher output and realized prices.
Oil and natural gas exploration companies traded down following the decline in crude oil prices after tensions in the Middle East eased, but the prospect of a wider war remains elevated.
BP Plc declined 0.9% to 428.20 pence, Shell PLC dropped 1.5% to 2,685.0, TotalEnergies SE dropped 0.4% to €62.48, and Repsol SA fell 1.3% to €12.48.
Elekta AB increased 3.5% to SEK 71.45, and the Swedish radiation therapy company reported strong fiscal first-quarter results.
LEG Immobilien SE fell 1.7% to €86.12 after the German real estate company launched a €500 million senior unsecured convertible bond offering due in 2030.
The company intends to use proceeds to repay debt and for general corporate expenses.
Japan's Indexes Closed Up In Lackluster Trading; Retailers and Shipping Companies Extended Losses
Benchmark indexes in Tokyo bounced around the flatline as tech stocks traded in a tight range ahead of Nvidia Corp.'s earnings.
The Nikkei 225 and the Topix index gained more than 0.1% near the close of the trading session, as semiconductor equipment stocks were in focus.
Nvidia Corp. is set to release its quarterly results after the close of regular trading in New York later today.
The advanced semiconductor chip design company has led the surge in artificial intelligence-linked stocks over the last two years and is a key indicator of demand for artificial intelligence chips and servers.
Nvidia is expected to earn between 64 cents and 71 cents per share in its latest quarter, significantly higher than 25 cents in the corresponding period a year earlier.
Revenue in the quarter is expected to soar to $28.68 billion from $13.51 billion a year earlier.
Nvidia sales have been on a tear, and the company has benefited from its leadership positioning in the market and accelerated its quarterly sales growth between 80% and 100% for eight quarters in a row.
Nvidia's quarterly earnings per share over the last five quarters have also exceeded between 5 cents and 6 cents from the consensus earnings estimates of analysts.
The yen weakened by 0.55 yen to 144.54 against the U.S. dollar as traders continued to debate the future rate path and likelihood of a rate hike at the end of the Bank of Japan's next policy meeting on September 20.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.1% to 38,333.50, and the Topix index advanced 0.3% to 2,687.92.
Tech companies, retailers, financial services providers, and industrial companies were in focus.
Advantest, Tokyo Electron, Lasertec, and Screen Holdings traded in a tight range and managed to bounce back and close up as much as 4% from early morning losses.
Isetan Mitsukoshi, Seven & I, Fast Retailing, Aeon Co., and Takashimaya declined between 0.3% and 0.7%.
Sumitomo Mitsui Financial declined 0.3%, and Mitsubishi UFJ and Mizuho Financial traded in a tight range and eased 0.3% in active trading.
Toyota Motor and Honda Motor jumped about 2%, Nissan Motor declined 0.3%, and Subaru Corp. gained 0.4%.
Ocean freight shipping companies extended losses for the second week in a row amid rising violence in the Middle East that could force shipping companies to seek alternative longer routes to Europe.
Mitsui OSK Lines declined 0.5% to ¥5,069.0, Nippon Yusen KK decreased 0.2% to ¥5,077.0, and Kawasaki Kisen Kaisa dropped 0.5% to ¥2,064.0.
China Stocks Extended Weekly Losses; Anta Sports Announced Stock Buyback Plan
Investors avoided high-flying tech stocks in China ahead of an earnings report from a leading artificial intelligence company.
Benchmark indexes in Hong Kong dropped 1% amid weakness in tech stocks as tech investors around the world await the release of earnings from Nvidia Corp. in the evening in New York on Wednesday.
Market sentiment remained weak in Shanghai and Shenzhen amid fragile economic recovery and weak investor and consumer sentiment with no near-term catalysts.
Earnings so far in China have been mixed, and most companies have surpassed market expectations, but a weak second-half outlook has kept investors on the sidelines.
Moreover, investors are not committing new capital to recently beaten-down stocks after four straight years of losses. 33.7
China Stock Movers
The Hang Seng index fell 1% to 17,706.57, and the CSI 300 index dropped 0.7% to 3,281.29.
JD.com and Anta Sports traded higher after the two companies announced stock buyback plans.
JD.com increased 1.3% to HK $103.0 after the company launched a $5 billion stock buyback plan to be completed by September 2027.
Anta Sports Products increased 4.5% to HK $74.90, and the company said it plans to buyback up to $1.3 billion or HK $10.6 billion of its stock over the next 18 months.
The company reported sales in the first half increased 13.8% to 33.7 billion yuan, and net profit jumped 62.6% to 7.7 billion yuan.
The supplier of podium uniforms to Chinese athletes in the Paris Olympics 2024 saw a 25.1% surge in its online sales in the period, increasing its contribution to overall sales to 33.8% from 30.8% in the year ago period.
The company increased its interim dividend by 44% to HK $1.18 from 82 HK cents per share a year earlier.
Nongfu Spring dropped 11.3% to HK $26.80 after the company reported weaker-than-expected earnings in the first-half period.
Investors dumped the stock after earnings rose at the slowest pace in the period since the company's listing in 2020.
SMIC decreased 0.5% to HK $16.32, SenseTime Group fell 5% to HK $1.12, and Kuaishou Technology dropped 1.8% to HK $39.30.
U.S. Movers: Abercrombie & Fitch, Berkshire Hathaway, Foot Locker, Nordstrom, PVH Corp.
Scott Peters
28 Aug, 2024
New York City
Nordstrom increased 4.5% to $22.11, and the luxury apparel and accessories retailer reported better-than-estimated second-quarter revenue and earnings.
The retailer also lifted its annual sales outlook despite the macroeconomic uncertainty.
PVH Corp. dropped 7.8% to $22.11, and the apparel manufacturer reported revenue that matched analysts' expectations, but the company's current quarter outlook disappointed investors.
Berkshire Hathaway Class B increased 1% to $465.56, and the company said it sold 24.7 million shares of Bank of America and extended its sale to $5 billion over the last two months.
Berkshire's share in Bank of America dropped to 11.6% after the latest sale.
Abercrombie & Fitch declined 4.5% to $141.87 despite the specialty apparel retailer reporting higher sales and earnings in its fiscal second quarter and the company lifting its annual outlook.
Revenue increased 21% to $1.1 billion, net income soared to $133 million from $57 million, and earnings per share advanced to $2.50 from $1.10 a year ago.
The company revised its full-year sales to increase between 12% and 13%, from the previous estimate of an increase of 10%.
Foot Locker plunged 15.3% to $27.77, and the footwear retailer reported better-than-expected sales and smaller-than-expected loss in the latest quarter, but the weak outlook weighed on the stock.
Revenue in the latest quarter increased 1.9% to $1.89 billion from $1.86 billion, net loss expanded to $12 million from $5 million, and diluted loss per share rose to 13 cents from 5 cents a year earlier.
Comparable sales in the latest quarter increased 2.6%, driven by global Foot Locker and Kids Foot Locker sales rise of 5.2%.
Wall Street Indexes Trade Around Flatline and Treasury Yields Retain Downward Bias
Barry Adams
28 Aug, 2024
New York City
Benchmark indexes traded in a tight range in early trading as investors reacted to corporate results in the absence of economic news.
Tech and semiconductor stocks were in focus for the third consecutive day ahead of Nvidia Corp.'s results after the close of regular trading hours today.
Investors are looking for clues about the company's progress in holding its leadership position in artificial intelligence technology, revenue growth outlook, and new higher-margin products in the coming weeks.
Semiconductor equipment and technology stocks traded sideways ahead of Nvidia's earnings, and the company is seen as a bellwether for artificial intelligence-related spending by Microsoft, Amazon, and Alphabet.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.03% to 5,621.23, the Nasdaq Composite fell 0.5% to 17,673.30, and the Russell 2000 index declined 0.3% to 2,196.18.
The yield on 2-year Treasury notes edged lower to 3.87%, 10-year Treasury notes decreased to 3.82%, and 30-year Treasury bonds inched lower to 4.12%.
WTI crude oil decreased $1.03 to $74.46 a barrel, and natural gas prices edged down 2 cents to $2.06 a thermal unit.
Gold fell by $26.30 to $2,499.22 an ounce, and silver increased by $0.71 to $29.30.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.10.
U.S. Stock Movers
Nordstrom increased 4.5% to $22.11, and the luxury apparel and accessories retailer reported better-than-estimated second-quarter revenue and earnings.
The retailer also lifted its annual sales outlook despite the macroeconomic uncertainty.
PVH Corp. dropped 7.8% to $22.11, and the apparel manufacturer reported revenue that matched analysts' expectations, but the company's current quarter outlook disappointed investors.
Berkshire Hathaway Class B increased 1% to $465.56, and the company said it sold 24.7 million shares of Bank of America and extended its sale to $5 billion over the last two months.
Berkshire's share in Bank of America dropped to 11.6% after the latest sale.
Abercrombie & Fitch declined 4.5% to $141.87 despite the specialty apparel retailer reporting higher sales and earnings in its fiscal second quarter and the company lifting its annual outlook.
Revenue increased 21% to $1.1 billion, net income soared to $133 million from $57 million, and earnings per share advanced to $2.50 from $1.10 a year ago.
The company revised its full-year sales to increase between 12% and 13%, from the previous estimate of an increase of 10%.
Foot Locker plunged 15.3% to $27.77, and the footwear retailer reported better-than-expected sales and smaller-than-expected loss in the latest quarter.
Revenue in the latest quarter increased 1.9% to $1.89 billion from $1.86 billion, net loss expanded to $12 million from $5 million, and diluted loss per share rose to 13 cents from 5 cents a year earlier.
Comparable sales in the latest quarter increased 2.6%, driven by global Foot Locker and Kinds Foot Locker sales rise of 5.2%.
Europe Movers: BHP Group, Elekta, LEG Immobilien, Hochschild, Mining Stocks, Oil Stocks
Inga Muller
28 Aug, 2024
Frankfurt
Market indexes in the Euro Area traded higher ahead of the inflation reports later in the week.
Semiconductor equipment makers were in focus ahead of Nvidia's quarterly results later today for clues regarding direction of spending by leading tech companies.
The DAX index increased by 0.8% to 18,831.22; the CAC-40 index rose by 0.5% to 7,603.56; and the FTSE 100 index fell by 0.1% to 8,336.07.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched down to 2.96%, the UK gilts edged down to 3.94%, and Italian bonds decreased to 3.61%.
Mining companies retreated after copper prices fell from a five-week high of $4.20 per pound amid a weak China demand growth outlook.
BHP Group slashed its imminent China group outlook but held out for higher prices, citing a prolonged global supply deficit.
Antofagasta decreased 4.3% to 1,828.28 pence, Anglo American declined 1.8% to 2,239.0 pence, Glencore PLC dropped 1.8% to 403.15 pence, and BHP Group fell 1.5% to 2,064.0 pence.
Hochschild Mining Plc declined 5.6% to 182.40 pence despite the precious metal mining company reporting strong first-half results on higher output and realized prices.
Oil and natural gas exploration companies traded down following the decline in crude oil prices after tensions in the Middle East eased, but the prospect of a wider war remains elevated.
BP Plc declined 0.9% to 428.20 pence, Shell PLC dropped 1.5% to 2,685.0, TotalEnergies SE dropped 0.4% to €62.48, and Repsol SA fell 1.3% to €12.48.
Elekta AB increased 3.5% to SEK 71.45, and the Swedish radiation therapy company reported strong fiscal first-quarter results.
LEG Immobilien SE fell 1.7% to €86.12 after the German real estate company launched a €500 million senior unsecured convertible bond offering due in 2030.
The company intends to use proceeds to repay debt and for general corporate expenses.