Market Update
Global Markets Ride Higher After Major Central Banks Hold Rates Steady
Barry Adams
14 Dec, 2023
New York City
U.S. stock indexes advanced a day after the Federal Reserve held interest rates steady.
The S&P 500 index and the Nasdaq Composite struggled to hold on to the morning gains after the yield on 10-year Treasury notes eased below 4%.
Market sentiment was positive a day after the Fed held the fed funds rate range between 5.25% and 5.50% and signaled multiple rate cuts over the next two years.
The Fed's dovish stance powered the global market upswing, and the Dow Jones Industrial Average jumped 37,000, and the broader S&P 500 index traded just under 1.5% below its record high in January 2022.
Retail and Food Services Sales Advanced in November
U.S. retail and food services sales in November adjusted for season variation but not for price, which rose 0.3% from the previous month, the Commerce Department reported in a release Thursday.
Retail and food services sales in the month increased 4.1% from the previous year, indicating resilient consumer spending at the start of the holiday season.
Retail trade sales were up 0.1% from October and up 3.1% above last year, and sales at nonstore retailers, including online sales, were up 10.6% from last year, while food services and drinking places were up 11.3% from a year ago.
U.S. Indexes and Yields
The S&P 500 index gained 0.09% to 4,709.60, and the Nasdaq Composite decreased 0.2% to 14,705.64.
The yield on 2-year Treasury notes decreased to 4.33%, 10-year Treasury notes inched lower to 3.94%, and 30-year Treasury bonds eased to 4.11%.
Crude oil increased $2.92 to $72.35 a barrel, and natural gas prices rose 2 cent to $2.35 a thermal unit.
Gold increased $4.50 to $2,032.16 an ounce and extended gains for the second day in a row after the dollar declined following the Fed's rate decision and announcement to cut rates several times over the next two years.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 102.34.
U.S. Stock Movers
Solar stocks advanced after the Fed's signaled multiple rate cuts over the next two years. Merck and Moderna released a positive update for their experimental skin cancer vaccine. Adobe reported solid quarterly results but offered a muted 2024 outlook.
Adobe declined 3.5% to $602.0 after the company issued a lighter-than-expected revenue and earnings outlook for 2024.
Revenue in the fiscal fourth quarter ending in November rose 12% to $5.04 billion from $4.5 billion, net income advanced to $1.48 billion from $1.17 billion, and diluted earnings per share rose to $3.23 from $2.53 a year ago.
The company guided fiscal year 2024 revenue between $21.3 billion and $21.5 billion, earnings per share between $13.45 and $13.85, and non-GAAP earnings per share between $17.60 and $18.0.
Adobe estimated fiscal first quarter revenue between $5.10 billion and $5.15 billion, GAAP earnings per share between $3.35 and $3.40, and non-GAAP earnings per share between $4.35 and $4.40.
Vir Biotechnology advanced 0.9% to $10.15 after the company announced various steps to reduce its operating expenses by at least $40 million annually.
The company said it will close its research and development facilities in St. Louis, Missouri, and Portland, Oregon, and eliminate 12%, or 75 jobs, by the first quarter.
Vir expects to incur between $30 million and $40 million in charges and recognize them through the third quarter of 2024.
Solar stocks advanced for the second day in a row after the Federal Reserve signaled multiple rate cuts in 2024 and 2025.
Enphase Energy jumped 3% on top of a 7% increase in the previous session to $110.78, and SolarEdge Technologies gained 2.3% to $84.50.
Merck edged lower by 0.3% to $106.81, and Moderna soared by 11.7% to $87.82 after the two companies released a midstage report showing experimental cancer vaccines helped to lower the risk of death or relapse in patients with skin cancer after three years.
European Markets Soared to Multi-year Highs After BoE and ECB Rate Decisions
European market indexes soared on Thursday, following a global market advance after the U.S. Federal Reserve held its key lending rate steady and signaled three rate cuts in 2024.
Benchmark indexes in Paris and Frankfurt traded at record highs, and in London they rebounded after the Federal Reserve estimated larger rate cuts in 2024 than previously indicated in September.
The Bank of England held for the third time in a row its key lending rate at 5.25%, but stressed higher rates may be needed for a longer time to bring down inflation.
The European Central Bank held its rates for the second time in a row at 4.0%, trimmed its 2023 economic growth outlook to 0.6% from the previous estimate of 0.7%, and lowered its inflation estimate for this year to 5.4% from 5.6% for this year.
Market indexes turned lower in the afternoon after the Bank of England said higher rates are likely to stay longer and the European Central Bank added that it plans to accelerate its plan to shrink its balance sheet.
Despite the economic slowdown in the eurozone and the UK, central banks are expected to keep interest rates at multi-decade highs in order to bring down inflation.
Bond yields fell sharply in trading today, and the yield on the German 10-year Bund declined to a low last seen in mid-January, and the yields on French, Italian, and UK bonds eased as well.
Switzerland Holds Rates, Norway Hikes
The Swiss National Bank also left its policy rate unchanged at 1.75%, a second consecutive decision to hold rates in a row, and policymakers said inflation forces are weakening.
Consumer price inflation in Switzerland eased to 1.4% in November, the lowest level since October 2021.
The Norwegian central bank increased its policy rate by 25 basis points to 4.5%.
Norges Bank Governor Ida Wolden Bache said that rates are likely to remain high "for some time ahead" because inflation is still too high despite the recent economic slowdown.
Europe Indexes and Yield
The DAX index decreased 0.1% to 16,752.23, the CAC-40 index rose 0.6% to 7,575.85, and the FTSE 100 index advanced 1.3% to 7,648.98.
The yield on 10-year German bonds decreased to 2.13%; French bonds traded lower to 2.66%; the UK gilts eased to 3.79%; and Italian bonds inched higher to 3.81%.
The euro traded lower to $1.09, the British pound inched lower to $1.275, and the U.S. dollar eased to 86.51 Swiss cents.
Brent crude increased $2.77 to $77.06 a barrel, and the Dutch TTF natural gas decreased by €0.96 to €34.80 per MWh.
Europe Stock Movers
Air France KLM soared 6.9% to €13.04 after the international carrier reiterated its outlook for the period between 2024 and 2026 and lifted its operating margin to above 8% for the period between 2026 and 2028.
The airline's debt was rated BBB- with a stable outlook by Fitch and BB+ with a stable outlook by S&P Global Ratings.
Serco Group advanced 3.9% to 161.40 pence after the UK-based outsourcing company estimated 2024 profit to increase to £260 million.
BP plc increased 2.1% to 469.45 pence after the company denied £32.8 million in cash and stock remuneration to former chief executive Bernard Looney.
The board confirmed the immediate termination of the former chief executive after concluding an investigation that found "serious misconduct."
BP said that Looney knowingly misled board members last year when they inquired about allegations regarding his previous relationships with colleagues and assurances about his future behavior.
Looney's remuneration soared to £10 million in 2022 from £4.5 million in 2021.
Vivendi SE increased 7.8% to €9.66 after the media company announced a plan to study the separate entities as independent listed entities: Canal+, Havas, and an investment company.
Evotec SE soared 10% to €20.46 after the biotech company announced a partnership with Charité-Universitätsmedizin Berlin to create a molecular patient database for ANCA-associated vasculitis, a rare autoimmune condition that causes inflammation of blood vessels with various manifestations.
Retail and Food Services Sales Advanced in November
Brian Turner
14 Dec, 2023
New York City
U.S. retail and food services sales in November adjusted for season variation but not for price, which rose 0.3% from the previous month, the Commerce Department reported in a release Thursday.
Retail and food services sales in the month increased 4.1% from the previous year, indicating resilient consumer spending at the start of the holiday season.
Retail trade sales were up 0.1% from October and up 3.1% above last year, and sales at nonstore retailers, including online sales, were up 10.6% from last year, while food services and drinking places were up 11.3% from a year ago.
U.S. Stocks Extend Gains After Treasury Yields Eased and Retail Sales Advanced
Barry Adams
14 Dec, 2023
New York City
U.S. stock indexes advanced a day after the Federal Reserve held interest rates steady.
The S&P 500 index and the Nasdaq Composite advanced as investors looked to build on the rally in the previous session after retail sales were ahead of expectations and the 10-year Treasury yield dropped to below 4%, the level last seen in August.
Retail and Food Services Sales Advanced in November
U.S. retail and food services sales in November adjusted for season variation but not for price, which rose 0.3% from the previous month, the Commerce Department reported in a release Thursday.
Retail and food services sales in the month increased 4.1% from the previous year, indicating resilient consumer spending at the start of the holiday season.
Retail trade sales were up 0.1% from October and up 3.1% above last year, and sales at nonstore retailers, including online sales, were up 10.6% from last year, while food services and drinking places were up 11.3% from a year ago.
U.S. Indexes and Yields
The S&P 500 index gained 0.5% to 4,787.25, and the Nasdaq Composite increased 0.6% to 14,723.14.
The yield on 2-year Treasury notes decreased to 4.33%, 10-year Treasury notes inched lower to 3.94%, and 30-year Treasury bonds eased to 4.11%.
Crude oil increased $1.05 to $70.55 a barrel, and natural gas prices rose 1 cent to $2.34 a thermal unit.
Gold increased $8.80 to $2,036.44 an ounce and extended gains for the second day in a row after the dollar declined following the Fed's rate decision and announcement to cut rates several times over the next two years.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 102.34.
U.S. Stock Movers
Solar stocks advanced after the Fed's signaled multiple rate cuts over the next two years. Merck and Moderna released a positive update for their experimental skin cancer vaccine. Adobe reported solid quarterly results but offered a muted 2024 outlook.
Adobe declined 3.5% to $602.0 after the company issued a lighter-than-expected revenue and earnings outlook for 2024.
Revenue in the fiscal fourth quarter ending in November rose 12% to $5.04 billion from $4.5 billion, net income advanced to $1.48 billion from $1.17 billion, and diluted earnings per share rose to $3.23 from $2.53 a year ago.
The company guided fiscal year 2024 revenue between $21.3 billion and $21.5 billion, earnings per share between $13.45 and $13.85, and non-GAAP earnings per share between $17.60 and $18.0.
Adobe estimated fiscal first quarter revenue between $5.10 billion and $5.15 billion, GAAP earnings per share between $3.35 and $3.40, and non-GAAP earnings per share between $4.35 and $4.40.
Vir Biotechnology advanced 0.9% to $10.15 after the company announced various steps to reduce its operating expenses by at least $40 million annually.
The company said it will close its research and development facilities in St. Louis, Missouri, and Portland, Oregon, and eliminate 12%, or 75 jobs, by the first quarter.
Vir expects to incur between $30 million and $40 million in charges and recognize them through the third quarter of 2024.
Solar stocks advanced for the second day in a row after the Federal Reserve signaled multiple rate cuts in 2024 and 2025.
Enphase Energy jumped 3% on top of a 7% increase in the previous session to $110.78, and SolarEdge Technologies gained 2.3% to $84.50.
Merck edged lower by 0.3% to $106.81, and Moderna soared by 11.7% to $87.82 after the two companies released a midstage report showing experimental cancer vaccines helped to lower the risk of death or relapse in patients with skin cancer after three years.
U.S. Movers: Adobe, Merck, Moderna, Solar Stocks, Vir Biotechnology
Scott Peters
14 Dec, 2023
New York City
Solar stocks advanced after the Fed's signaled multiple rate cuts over the next two years. Merck and Moderna released a positive update for their experimental skin cancer vaccine. Adobe reported solid quarterly results but offered a muted 2024 outlook.
Adobe declined 3.5% to $602.0 after the company issued a lighter-than-expected revenue and earnings outlook for 2024.
Revenue in the fiscal fourth quarter ending in November rose 12% to $5.04 billion from $4.5 billion, net income advanced to $1.48 billion from $1.17 billion, and diluted earnings per share rose to $3.23 from $2.53 a year ago.
The company guided fiscal year 2024 revenue between $21.3 billion and $21.5 billion, earnings per share between $13.45 and $13.85, and non-GAAP earnings per share between $17.60 and $18.0.
Adobe estimated fiscal first quarter revenue between $5.10 billion and $5.15 billion, GAAP earnings per share between $3.35 and $3.40, and non-GAAP earnings per share between $4.35 and $4.40.
Vir Biotechnology advanced 0.9% to $10.15 after the company announced various steps to reduce its operating expenses by at least $40 million annually.
The company said it will close its research and development facilities in St. Louis, Missouri, and Portland, Oregon, and eliminate 12%, or 75 jobs, by the first quarter.
Vir expects to incur between $30 million and $40 million in charges and recognize them through the third quarter of 2024.
Solar stocks advanced for the second day in a row after the Federal Reserve signaled multiple rate cuts in 2024 and 2025.
Enphase Energy jumped 3% on top of a 7% increase in the previous session to $110.78, and SolarEdge Technologies gained 2.3% to $84.50.
Merck edged lower by 0.3% to $106.81, and Moderna soared by 11.7% to $87.82 after the two companies released a midstage report showing experimental cancer vaccines helped to lower the risk of death or relapse in patients with skin cancer after three years.
Switzerland and UK Hold Rates, Norway Hikes
Bridgette Randall
14 Dec, 2023
Frankfurt
The Swiss National Bank also left its policy rate unchanged at 1.75%, a second consecutive decision to hold rates in a row, and policymakers said inflation forces are weakening.
Consumer price inflation in Switzerland eased to 1.4% in November, the lowest level since October 2021.
The Norwegian central bank increased its policy rate by 25 basis points to 4.5%.
Norges Bank Governor Ida Wolden Bache said that rates are likely to remain high "for some time ahead" because inflation is still too high despite the recent economic slowdown.
The Bank of England left its key interest rate unchanged at a 15-year high of 5.25%.
Policymakers left rates unrevised for the third time in a row in December and said rates are likely to remain restrictive, highlighting tight labor market conditions and persistent inflationary pressures.
GDP in October unexpectedly contracted and wage growth slowed in November, raising hopes that the interest rate may ease by the end of 2024 if energy prices continue to slide and contribute to the weakening of overall inflation.
Europe Movers: Air France-KLM, BP, Evotec, Serco Group, Vivendi
Inga Muller
14 Dec, 2023
Frankfurt
Benchmark indexes in Frankfurt soared to a record high and in Paris advanced to a multi-year high after the U.S. Federal Reserve held its key lending rate and signaled possible rate cuts over the next two years.
The DAX index increased 0.7% to 16,893.28, the CAC-40 index rose 0.9% to 7,600.03, and the FTSE 100 index advanced 1.9% to 7,696.55.
The yield on 10-year German bonds decreased to 2.03%; French bonds traded lower to 2.56%; the UK gilts eased to 3.67%; and Italian bonds inched higher to 3.75%.
Air France KLM soared 6.9% to €13.04 after the international carrier reiterated its outlook for the period between 2024 and 2026 and lifted its operating margin to above 8% for the period between 2026 and 2028.
The airline's debt was rated BBB- with a stable outlook by Fitch and BB+ with a stable outlook by S&P Global Ratings.
Serco Group advanced 3.9% to 161.40 pence after the UK-based outsourcing company estimated 2024 profit to increase to £260 million.
BP plc increased 2.1% to 469.45 pence after the company denied £32.8 million in cash and stock remuneration to former chief executive Bernard Looney.
The board confirmed the immediate termination of the former chief executive after concluding an investigation that found "serious misconduct."
BP said that Looney knowingly misled board members last year when they inquired about allegations regarding his previous relationships with colleagues and assurances about his future behavior.
Looney's remuneration soared to £10 million in 2022 from £4.5 million in 2021.
Vivendi SE increased 7.8% to €9.66 after the media company announced a plan to study the separate entities as independent listed entities: Canal+, Havas, and an investment company.
Evotec SE soared 10% to €20.46 after the biotech company announced a partnership with Charité-Universitätsmedizin Berlin to create a molecular patient database for ANCA-associated vasculitis, a rare autoimmune condition that causes inflammation of blood vessels with various manifestations.
European Markets Soar to Multi-year Highs Ahead of ECB and BoE Rate Decisions
Bridgette Randall
14 Dec, 2023
Frankfurt
European market indexes soared on Thursday, following a global market advance after the U.S. Federal Reserve held its key lending rate steady and signaled three rate cuts in 2024.
Benchmark indexes in Paris and Frankfurt traded at record highs, and in London they rebounded after the Federal Reserve estimated larger rate cuts in 2024 than previously indicated in September.
The Bank of England and the European Central Bank are scheduled to announce their rate decisions later in the day, and both central banks are widely anticipated to hold rates steady.
Despite the economic slowdown in the eurozone and the UK, central banks are expected to keep interest rates at muti-decade highs in order to bring down inflation.
Bond yields fell sharply in trading today, and the yield on the German 10-year Bund declined to a low last seen in mid-January, and the yields on French, Italian, and UK bonds eased as well.
Switzerland Holds Rates, Norway Hikes
The Swiss National Bank also left its policy rate unchanged at 1.75%, a second consecutive decision to hold rates in a row, and policymakers said inflation forces are weakening.
Consumer price inflation in Switzerland eased to 1.4% in November, the lowest level since October 2021.
The Norwegian central bank increased its policy rate by 25 basis points to 4.5%.
Norges Bank Governor Ida Wolden Bache said that rates are likely to remain high "for some time ahead" because inflation is still too high despite the recent economic slowdown.
Europe Indexes and Yield
The DAX index increased 0.7% to 16,893.28, the CAC-40 index rose 0.9% to 7,600.03, and the FTSE 100 index advanced 1.9% to 7,696.55.
The yield on 10-year German bonds decreased to 2.03%; French bonds traded lower to 2.56%; the UK gilts eased to 3.67%; and Italian bonds inched higher to 3.75%.
The euro traded lower to $1.09, the British pound inched lower to $1.265, and the U.S. dollar eased to 86.98 Swiss cents.
Brent crude decreased $1.30 to $75.56 a barrel, and the Dutch TTF natural gas increased by €0.39 to €35.43 per MWh.
Europe Stock Movers
Air France KLM soared 6.9% to €13.04 after the international carrier reiterated its outlook for the period between 2024 and 2026 and lifted its operating margin to above 8% for the period between 2026 and 2028.
The airline's debt was rated BBB- with a stable outlook by Fitch and BB+ with a stable outlook by S&P Global Ratings.
Serco Group advanced 3.9% to 161.40 pence after the UK-based outsourcing company estimated 2024 profit to increase to £260 million.
BP plc increased 2.1% to 469.45 pence after the company denied £32.8 million in cash and stock remuneration to former chief executive Bernard Looney.
The board confirmed the immediate termination of the former chief executive after concluding an investigation that found "serious misconduct."
BP said that Looney knowingly misled board members last year when they inquired about allegations regarding his previous relationships with colleagues and assurances about his future behavior.
Looney's remuneration soared to £10 million in 2022 from £4.5 million in 2021.
Vivendi SE increased 7.8% to €9.66 after the media company announced a plan to study the separate entities as independent listed entities: Canal+, Havas, and an investment company.
Evotec SE soared 10% to €20.46 after the biotech company announced a partnership with Charité-Universitätsmedizin Berlin to create a molecular patient database for ANCA-associated vasculitis, a rare autoimmune condition that causes inflammation of blood vessels with various manifestations.
Fed Funds Rates Unchanged, 2023 GDP Growth Estimate Revised Higher
Brian Turner
13 Dec, 2023
New York City
Stocks on Wall Street surged after the Federal Reserve left rates unchanged and signaled multiple rate cuts in 2024.
Benchmark indexes rebounded after the Federal Reserve left the fed funds rate range unchanged between 5.25% and 5.50%.
Policymakers noted that economic growth has slowed, job growth has moderated but remains strong, and inflation is on a downward trajectory but remains elevated.
The 22-year high rates were left unchanged for the third time in a row, and policymakers also laid the groundwork for rate cuts in 2024 and beyond.
Eight policymakers estimated fewer than three quarter percentage point rate cuts in 2024, while five projected a larger number of rate cuts next year.
Fed funds rates are expected to decline to 5.4% at the end of 2023 from the September projection of 5.6%, and ease to 4.6% at the end of 2024 from 5.1% respectively.
The central bank, in its 'dot plot,' also revised its higher GDP growth estimate by 50 basis points to 2.6% in 2023, but lowered its estimate to 1.4% from 1.5% in 2024.
The projection for the unemployment rate was held steady at 3.8% in 2023 and 4.1% in 2024.
The Personal Consumption Expenditure, or PCE, inflation estimate for 2023 was revised lower to 2.8% from 3.3% estimated in September and for 2024 to 2.4% from 2.5%, respectively.
The two latest inflation reports showed a mixed picture on the inflation front. Consumer price inflation in November eased to 3.1%, but the core rate of inflation held steady at 4.0%.
The latest update on producer prices showed that wholesale inflation held steady in November.
Investors also reviewed the persistent decline in energy prices, and crude oil prices extended their weekly decline to the eighth week in a row.
Investors have bid up stocks for the last six consecutive weeks in the belief that interest rates are more likely to decline.
But the Federal Reserve may keep higher rates for longer before strong evidence emerges that inflation is on a sustainable downward path to the Fed's target rate of 2%.
U.S. Stocks Soared After Fed Holds Rates Steady and Signals Multiple Rates Cuts In 2024
Barry Adams
13 Dec, 2023
New York City
Stocks on Wall Street surged after the Federal Reserve left rates unchanged and signaled multiple rate cuts in 2024.
Benchmark indexes rebounded after the Federal Reserve left the fed funds rate range unchanged between 5.25% and 5.50%.
Policymakers noted that economic growth has slowed, job growth has moderated but remains strong, and inflation is on a downward trajectory but remains elevated.
The 22-year high rates were left unchanged for the third time in a row, and policymakers also laid the groundwork for rate cuts in 2024 and beyond.
Eight policymakers estimated fewer than three quarter percentage point rate cuts in 2024, while five projected a larger number of rate cuts next year.
The central bank, in its 'dot plot,' also revised its higher GDP growth estimate by 50 basis points to 2.6% in 2023, but lowered its estimate to 1.4% from 1.5% in 2024.
The projection for the unemployment rate was held steady at 3.8% in 2023 and 4.1% in 2024.
The Personal Consumption Expenditure, or PCE, inflation estimate for 2023 was revised lower to 2.8% from 3.3% estimated in September and for 2024 to 2.4% from 2.5%, respectively.
The two latest inflation reports showed a mixed picture on the inflation front. Consumer price inflation in November eased to 3.1%, but the core rate of inflation held steady at 4.0%.
The latest update on producer prices showed that wholesale inflation held steady in November.
Investors also reviewed the persistent decline in energy prices, and crude oil prices extended their weekly decline to the eighth week in a row.
Investors have bid up stocks for the last six consecutive weeks in the belief that interest rates are more likely to decline.
But the Federal Reserve may keep higher rates for longer before strong evidence emerges that inflation is on a sustainable downward path to the Fed's target rate of 2%.
Wholesale Inflation Held Steady In November
The Producer Price Index was unchanged from the previous month in November after adjusting for seasonal factors, the Bureau of Labor Statistics reported Wednesday.
On an unadjusted basis, the producer price index increased 0.9% from a year ago.
Producer Price Index for final demand, less food, energy, and trade services, edged up 0.1% in November from the previous month and rose 2.5% from a year ago.
U.S. Indexes and Yields
The S&P 500 index gained 0.7% to 4,678.52, and the Nasdaq Composite increased 0.8% to 14,647.38.
The yield on 2-year Treasury notes decreased to 4.53%, 10-year Treasury notes inched lower to 4.08%, and 30-year Treasury bonds increased to 4.23%.
Crude oil increased $1.04 to $69.65 a barrel, and natural gas prices rose 0.1 cent to $2.32 a thermal unit.
Gold increased $20.34 to $2,005.25 an ounce ahead of the Fed's rate decision on Wednesday.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 103.14.
U.S. Stock Movers
Tesla declined 1.0% to $234.65 after the electric vehicle maker recalled about 2 million vehicles to fix an Autopilot defect.
Pfizer decreased 7.2% to $26.83 after the pharmaceutical company reported a weaker-than-anticipated 2024 revenue outlook.
Full-year revenue is anticipated to range between $58.5 billion and $61.5 billion, and the company said earnings are likely to be negatively impacted by its recent acquisition of cancer treatment-focused biotech company Seagen.
Modest Gains In European Markets
European market indexes were little changed after the release of the eurozone industrial production data and ahead of the Federal Reserve's rate decision later in the day.
Benchmark indexes in Frankfurt, Parris, and London edged higher, and the euro drifted lower.
Eurozone Industrial Output Shrank In October
Eurozone industrial output declined 0.7% from the previous month in October, Eurostat reported Wednesday.
The decline in output moderated after falling 1.0% in September.
Capital goods output fell 1.4% following a 0.6% decrease in both intermediate goods and non-durable consumer goods.
On the other hand, durable goods output rose by 0.2%, and energy output rose by 1.1%.
Industrial output declined 6.6% from a year ago.
UK GDP Unexpectedly Contracted In October
The UK GDP unexpectedly contracted by 0.3% in October from the previous month after rising by 0.2% in September, the Office for National Statistics reported on Wednesday.
GDP expanded 0.3% from a year ago, slower than 1.3% in September.
The pound inched lower after the release of the GDP report.
Europe Indexes and Yield
The DAX index decreased 0.2% to 16,766.05, the CAC-40 index fell 0.2% to 7,531.22, and the FTSE 100 index advanced 0.1% to 7,548.44.
The yield on 10-year German bonds decreased to 2.20%; French bonds traded lower to 2.74%; the UK gilts eased to 3.91%; and Italian bonds inched higher to 3.99%.
The euro traded lower to $1.078, the British pound inched lower to $1.253, and the U.S. dollar eased to 87.62 Swiss cents.
Brent crude increased $1.06 to $74.30 a barrel, and the Dutch TTF natural gas advanced by €1.11 to €35.81 per MWh.
Europe Stock Movers
Weak energy prices dragged down the stocks of oil explorers, refiners, and marketers.
BP plc, Shell PLC, TotalEnergies SE, and Repsol fell around 0.3%.
Entain PLC rose 4.5% to 842.40 pence on a report that its chief executive, Jett Nygaard-Andersen, is stepping down and the board has appointed Stella David, a non-executive director, as interim chief executive until a permanent replacement has been found.
In August, the owner of Ladbrokes and Coral bookmakers set aside £585 million to cover penalties and fines related to a tax authority investigation into alleged illegal practices linked to a Turkish-facing online betting and gaming business that the company owned between 2011 and 2017.
Inditex rose 1.2% to €38.75 after the Spanish apparel retailer reported strong holiday sales and lifted its fiscal year 2023 margin outlook.
Net sales in the nine-month period ending in October increased to €25.6 billion from €23.0 billion, net income rose to €4.1 billion from €3.1 billion, and net income per share rose to €1.32 from 99 euro cents.
U.S. Movers: Pfizer, Take-Two Interactive, Tesla, Twilio
Scott Peters
13 Dec, 2023
New York City
Stocks edged higher ahead of the Federal Reserve's rate decision later in the day.
Investors widely anticipate the central bank's holding rates, and markets are awaiting comments from Fed Chairman Jerome Powell and the central bank's estimate of inflation, economic growth, and the unemployment rate.
The S&P 500 index gained 0.2% to 4,651.25, and the Nasdaq Composite increased 0.3% to 14,578.05.
The yield on 2-year Treasury notes decreased to 4.72%, 10-year Treasury notes inched lower to 4.18%, and 30-year Treasury bonds increased to 4.28%.
Tesla declined 1.0% to $234.65 after the electric vehicle maker recalled about 2 million vehicles to fix an Autopilot defect.
Pfizer decreased 7.2% to $26.83 after the pharmaceutical company reported a weaker-than-anticipated 2024 revenue outlook.
The company anticipates full-year revenue in the range of $58.5 billion and $61.5 billion and said earnings are likely to be negatively impacted by its recent acquisition of cancer treatment-focused biotech company Seagen.
Take-Two Interactive Software increased by 2.9% to $161.69, and the company is set to be included in the Nasdaq 100 index on December 18.
Twilio edged down a fraction to $71.21, and the company hired investment advisor Qatalyst to defend against activist investors.
Anson Funds and Legion Partners have been pushing the company to divest one of its business units or sell the company.
CNBC first reported that Twilio is working with an investment advisor.
Twilio stock has jumped more than 40% in the year so far, but the stock is still down about 84% from its peak in February 2021.
Wholesale Inflation Held Steady In November
Brian Turner
13 Dec, 2023
New York City
The Producer Price Index was unchanged from the previous month in November after adjusting for seasonal factors, the Bureau of Labor Statistics reported Wednesday.
On an unadjusted basis, the producer price index increased 0.9% from a year ago.
Producer Price Index for final demand, less food, energy, and trade services, edged up 0.1% in November from the previous month and rose 2.5% from a year ago.
U.S. Stocks Edge Higher Ahead of Fed's Rate Decision and Commentary
Barry Adams
13 Dec, 2023
New York City
Stocks on Wall Street advanced ahead of the rate decision from the Federal Reserve later in the day.
Benchmark indexes edged higher on the wide belief that the Federal Reserve is set to leave rates unchanged. The Federal Reserve is expected to announce its decision at 2:00 p.m. ET today.
Investors are also looking forward to comments from Federal Reserve Chair Jerome Powell.
Powell is expected to counter the belief that interest rates are near peak levels and that the central bank is preparing to lower rates as early as the first quarter of 2024.
The two latest inflation reports showed a mixed picture on the inflation front. Consumer price inflation in November eased to 3.1%, but the core rate of inflation held steady at 4.0%.
The latest update on producer prices showed that wholesale inflation held steady in November.
Investors also reviewed the persistent decline in energy prices, and crude oil prices extended their weekly decline to the eighth week in a row.
Investors have bid up stocks for the last six consecutive weeks in the belief that interest rates are more likely to decline.
But the Federal Reserve may keep higher rates for longer before strong evidence emerges that inflation is on a sustainable downward path to the Fed's target rate of 2%.
Wholesale Inflation Held Steady In November
The Producer Price Index was unchanged from the previous month in November after adjusting for seasonal factors, the Bureau of Labor Statistics reported Wednesday.
On an unadjusted basis, the producer price index increased 0.9% from a year ago.
Producer Price Index for final demand, less food, energy, and trade services, edged up 0.1% in November from the previous month and rose 2.5% from a year ago.
U.S. Indexes and Yields
The S&P 500 index gained 0.2% to 4,651.25, and the Nasdaq Composite increased 0.3% to 14,578.05.
The yield on 2-year Treasury notes decreased to 4.72%, 10-year Treasury notes inched lower to 4.18%, and 30-year Treasury bonds increased to 4.28%.
Crude oil decreased $0.11 to $68.85 a barrel, and natural gas prices fell 0.1 cent to $2.30 a thermal unit.
Gold increased $2.04 to $1,981.42 an ounce ahead of the Fed's rate decision on Wednesday.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 103.94.
U.S. Stock Movers
Tesla declined 1.0% to $234.65 after the electric vehicle maker recalled about 2 million vehicles to fix an Autopilot defect.
Pfizer decreased 7.2% to $26.83 after the pharmaceutical company reported a weaker-than-anticipated 2024 revenue outlook.
Full-year revenue is anticipated to range between $58.5 billion and $61.5 billion, and the company said earnings are likely to be negatively impacted by its recent acquisition of cancer treatment-focused biotech company Seagen.
Europe Movers: Energy Stocks, Entain, Inditex
Inga Muller
13 Dec, 2023
Frankfurt
European stock market indexes hovered near the flatline ahead of the rate decision from the Federal Reserve later today.
The DAX index increased 0.1% to 16,810.98, the CAC-40 index rose 0.3% to 7,566.88, and the FTSE 100 index advanced 0.3% to 7,562.41.
The yield on 10-year German bonds decreased to 2.20%; French bonds traded lower to 2.74%; the UK gilts eased to 3.91%; and Italian bonds inched higher to 3.99%.
Energy exploration companies declined after crude oil prices dropped 4% in the previous session.
BP plc, Shell PLC, TotalEnergies SE, and Repsol fell around 0.3%.
Entain PLC rose 4.5% to 842.40 pence on a report that its chief executive, Jett Nygaard-Andersen, is stepping down and the board has appointed Stella David, a non-executive director, as interim chief executive until a permanent replacement has been found.
In August, the owner of Ladbrokes and Coral bookmakers set aside £585 million to cover penalties and fines related to a tax authority investigation into alleged illegal practices linked to a Turkish-facing online betting and gaming business that the company owned between 2011 and 2017.
Inditex rose 1.2% to €38.75 after the Spanish apparel retailer reported strong holiday sales and lifted its fiscal year 2023 margin outlook.
Net sales in the nine-month period ending in October increased to €25.6 billion from €23.0 billion, net income rose to €4.1 billion from €3.1 billion, and net income per share rose to €1.32 from 99 euro cents.
Gross margin increased 67 basis points from a year ago to 59.4%, and for the full-year 2023, the company estimated gross margin to increase by 75 basis points from a year ago.