Market Update
India Movers: Bank Stocks, Coforge, Pharma Stocks, IREDA, IRFC, JSW Steel
Arun Goswami
11 Dec, 2023
Mumbai
Stocks in Mumbai traded higher, and market indexes extended their gains from the previous six weeks in a row.
The Sensex index increased 130.34 points to 69,955.46, and the Nifty index rose 31.30 points to 21,000.55.
On the Mumbai stock exchange, 177 stocks traded at their 52-week highs and 15 stocks traded at their 52-week lows.
Bank stocks were in focus in Monday's trading, and State Bank of India advanced 0.7% to ₹618.30, HDFC gained 0.2% to ₹1,656.0, Bank of Baroda jumped 2.2% to ₹216.80, and Canara Bank advanced 2.2% to ₹447.85.
Pharmaceutical stocks traded down after rallying in the previous three weeks.
Dr. Reddy's Laboratories declined 5.5% to ₹5,452.0, Aurobindo Pharma dropped 2% to ₹997.50, Cipla decreased 0.9% to ₹1,208.35, and Sun Pharma dropped 0.3% to ₹1,231.05.
Coforge Ltd. gained 1.6% to ₹5,877.35, and the company launched Quasar Responsible AI.
"It is a comprehensive solution that guarantees the utilization of AI adheres to ethical standards, fairness, transparency, and regulatory compliance," the company said in a press release.
The central government-controlled non-bank finance companies were among the leading gainers.
Power Finance rose 1% to ₹388.30, REC added 0.4% to ₹407.20, IRFC advanced 7.5% to ₹82.35, and Indian Renewable Energy Development Agency soared 29% to ₹85.0.
JSW Steel decreased 0.2%to ₹837.85 and the company said crude steel production increased 11% from a year ago in November to 22.04 lakh tons.
India Stocks Extend Gains, Hong Kong Stocks Near 14-month Low
Arjun Pandit
11 Dec, 2023
Mumbai
Stocks in Mumbai traded higher in choppy trading, and market indexes attempted to build gains on solid advances from previous weeks.
The Nifty index and the Sensex index advanced 0.2%, and benchmark indexes extended gains amid mixed markets in Asia.
In Monday's trading, small and mid-cap indexes continued to lead large-cap indexes and gained more than 0.4%.
Asian markets were mixed, and indexes in Hong Kong and Shanghai dropped 2% and 0.6% after consumer prices in China fell by 0.5% in November, the steepest decline in three years.
The Hang Seng index in Hong Kong declined to the lowest level in fourteen months on the worry that China's deflation will drag earnings down.
Market indexes in Tokyo advanced 1.5% after local reports suggested that the recent comments from Bank of Japan Governor Kazuo Ueda were taken out of context about the ending of the ultra-loose monetary policy earlier than estimated.
In Friday's trading, market indexes in New York jumped after nonfarm payrolls in November rose 199,000, faster than 150,000 in October.
The strength of the labor market raised hopes that the U.S. Federal Reserve has more wiggle room to engineer soft landing while bringing inflation down to its target rate of 2%.
India Indexes and Yields
The Sensex index increased 130.34 points to 69,955.46, and the Nifty index rose 31.30 points to 21,000.55.
On the Mumbai stock exchange, 177 stocks traded at their 52-week highs and 15 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.28%, and the Indian rupee hovered near ₹83.37 against the U.S. dollar.
The gold price decreased by 0.3% to ₹61,445 per ten grams, and silver fell by 0.3% to ₹72,335 per kilo.
Crude oil increased by 0.8% to ₹5,983 per barrel, and natural gas fell by 5.8% to ₹204.60 per thermal unit.
India Stock Movers
Banks were in focus in Monday's trading, and State Bank of India advanced 0.7% to ₹618.30, HDFC gained 0.2% to ₹1,656.0, Bank of Baroda jumped 2.2% to ₹216.80, and Canara Bank advanced 2.2% to ₹447.85.
Pharmaceutical stocks traded down after rallying in the previous three weeks.
Dr. Reddy's Laboratories declined 5.5% to ₹5,452.0, Aurobindo Pharma dropped 2% to ₹997.50, Cipla decreased 0.9% to ₹1,208.35, and Sun Pharma dropped 0.3% to ₹1,231.05.
Lululemon Athletica Quarterly Sales Rise 19%, Expands Stock Repurchase Plan
Scott Peters
08 Dec, 2023
New York City
Luluemlon Athletica decreased 2% to $454.67 after the specialty apparel retailer reported quarterly results and issued a weaker-than-expected holiday sales outlook.
Total revenue in the fiscal third quarter ending in October increased 19% to $2.2 billion, driven by a 12% sales increase in North America and a 49% surge in international markets.
Comparable sales increased by 9%, including comparable store sales of 9%, and direct-to-consumer sales soared by 18% from a year ago.
Net income in the quarter decreased to $248.7 million from $255.5 million, and diluted earnings per share fell to $1.97 from $2.0 a year ago.
During the third quarter, the athletic apparel retailer purchased 0.6 million shares of its own common stock at an average price of $380.88 per share for a cost of $210.8 million.
As of the end of the fiscal third quarter on October 29, the company had $243.2 million available for stock repurchase, and the board of directors approved an additional stock repurchase plan of up to $1.0 billion.
The company offered a cautious sales growth outlook for the upcoming holiday season.
For the fiscal fourth quarter, the retailer expects net revenue to be in the range of $3.135 billion to $3.170 billion, representing growth of 13% to 14%.
Diluted earnings per share are expected to be in the range of $4.85 to $4.93 for the quarter, assuming a tax rate of approximately 30%.
Dollar General Estimated Sales Growth Weakness to Persist
Scott Peters
08 Dec, 2023
New York City
Dollar General Corp. increased 2.8% to $137.70 after the deep discount retailer reported better-than-expected quarterly results and reaffirmed its fiscal year outlook for earnings and comparable sales.
Revenue in the fiscal third quarter ending on November 3 increased 2.4% to $9.7 billion, and same-store sales declined 1.3%.
Net income in the third quarter dropped 47.5% to $276.2 million from $526.2 million, and diluted earnings per share decreased 45.9% to $1.26 from $2.33 a year ago.
As of November 3, 2023, total merchandise inventories, at cost, were $7.4 billion compared to $7.1 billion as of October 28, 2022, a decrease of 1.8% on a per-store basis.
The company did not repurchase any of its shares in the quarter, and the retailer said $1.4 billion is available for future purchases at the end of the fiscal third quarter.
The company's board of directors declared a quarterly cash dividend of 59 cents payable on January 23 to shareholders on record on January 9.
The company forecasted fiscal year 2023 same store sales to range between flat and a decline of 1.0%, and net sales growth between 1.5% and 2.5%, including one fewer week this fiscal year.
The retailer estimated diluted earnings per share to decline between 29% and 34% and range between $7.10 and $7.60.
Chewy Swung to Quarterly Loss, Gross Margin Expands to Record High
Scott Peters
07 Dec, 2023
New York City
Chewy declined 10.8% to $17.25 after the online pet food and products store reported weaker-than-expected revenue and the company swung to a loss in the quarter.
Revenue in the fiscal third quarter ending in October rose 8.2% to $2.73 billion from $2.53 billion, and the company swung to a net loss of $35.8 million from a profit of $2.3 million, and diluted earnings per share swung to a loss of 8 cents from a profit of 1 cent a year ago.
Gross margin expanded 10 basis points from a year ago to a record high of 28.5%, and autoship customer sales increased 12.8% to $2.1 billion, representing 76.4% of total sales.
Toll Brothers Quarterly Earnings and Home Backlog Declined
Scott Peters
06 Dec, 2023
New York City
Toll Brothers increased 2% to $89.0 after the luxury home builder reported better-than-expected quarterly results.
Revenue in the fiscal fourth quarter ending in October declined to $3.02 billion from $3.7 billion, net income decreased to $445.5 million from $640.5 million, and diluted earnings per share dropped to $4.11 from $5.63 a year ago.
The backlog of homes at the end of October declined 19% to 6,578 and the value of the backlog fell 22% to $6.95 billion.
During the quarter, the company repurchased approximately 4.3 million shares at an average price of $75.70 per share, for a total of $325.5 million.
In the fiscal year, the home builder repurchased approximately 7.9 million shares at an average price of $72 per share, for a total purchase price of $565.9 million.
The home developer estimated home deliveries in the fiscal 2024 first quarter to range between 1,800 and 1,900 units and the average delivery price per unit to range between $985,000 and $1.05 million.
U.S. Employment Expanded 199,000 In November, Jobless Rate Eased to 3.7%
Brian Turner
08 Dec, 2023
New York City
Nonfarm payrolls increased 199,000 in November, following the 150,000 job gains in October, the U.S. Bureau of Labor Statistics reported Friday.
September job gains were downwardly revised by 35,000 to 262,000, and October job gains were unrevised.
Average hourly earnings, an indicator of wage inflation, rose 12 cents, or 0.4%, in the month and advanced 4% over the last 12 months.
The unemployment rate declined to 3.7%, and the number of unemployed people changed little to 6.3 million.
In November, the number of long-term unemployed, those jobless for 27 weeks or more, edged down to 1.2 million, accounting for 18.3% of all unemployed persons.