Market Update
U.S. Movers: Comcast, Delta Air Lines, Dolby Laboratories, Keysight Tech, Nvidia, Powell Industries, Target
Scott Peters
20 Nov, 2024
New York City
Target Corp. plunged 19% to $127.35 after the discount retailer reported weaker-than-expected quarterly results and guided a cautious outlook.
Total revenue in the fiscal third quarter ending on November 2 increased 1.1% to $25.66 billion from $25.39 billion, net income plunged 12.1% to $854 million from $971 million, and diluted earnings per share fell to $1.85 from $2.10 a year earlier.
The retailer forecast fourth quarter earnings per share between $1.85 and $2.45, sharply lower than the market expectation of at least $2.65, and full-year earnings per share between $8.30 and $8.90.
Comcast increased 1.7% to $43.05 after The Wall Street Journal said the company is planning to spinoff NBCUniversal cable TV networks, which generates annual revenue of about $7 billion.
The company's cable network portfolio includes, among other properties, MSNBC, CNBC, E!, Golf Channel, and USA.
Delta Air Lines decreased 0.01% to $64.76 after the company reiterated its fourth quarter earnings per share to range between $1.60 and $1.85, and the carrier estimated fiscal 2025 capacity to increase between 3% and 4%.
Nvidia Corp. jumped 0.6% to $147.76 ahead of the company's earnings later in the day, and investors anticipate third quarter earnings per share of 75 cents and revenue of $33.2 billion.
Powell Industries dropped 14.2% to $268.0 after the custom power solution provider reported better-than-expected quarterly results, but new orders fell short of market expectations.
Fiscal fourth quarter revenue jumped 32%, earnings soared 74%, and new orders in the fiscal year fell to $1.1 billion from $1.4 in the previous year.
Dolby Laboratories soared 11.5% to $81.19 after the audio and imaging technology provider reported better-than-expected quarterly earnings in the fiscal fourth quarter ending in September.
Revenue increased to $304.8 million from $290.5 million, net income advanced to $58.6 million from $9.2 million, and diluted earnings per share rose to 61 cents from 9 cents a year earlier.
Keysight Technologies soared 10.5% to $168.0 after the test equipment company reported better-than-expected fiscal-fourth quarter results.
Revenue declined 1.8% to $1.29 billion, net income swung to a loss of $73 million compared to a profit of $226 million, and diluted earnings per share were a loss of 42 cents compared to $1.28 a year earlier.
The company forecast first fiscal quarter 2025 revenue in the range of $1.265 billion to $1.285 billion, and Non-GAAP earnings per share between $1.65 and $1.71.
U.S. Movers: Comcast, Delta Air Lines, Dolby Laboratories, Keysight Tech, Nvidia, Powell Industries, Target
Scott Peters
20 Nov, 2024
New York City
Target Corp. plunged 19% to $127.35 after the discount retailer reported weaker-than-expected quarterly results and guided a cautious outlook.
Total revenue in the fiscal third quarter ending on November 2 increased 1.1% to $25.66 billion from $25.39 billion, net income plunged 12.1% to $854 million from $971 million, and diluted earnings per share fell to $1.85 from $2.10 a year earlier.
The retailer forecast fourth quarter earnings per share between $1.85 and $2.45, sharply lower than the market expectation of at least $2.65, and full-year earnings per share between $8.30 and $8.90.
Comcast increased 1.7% to $43.05 after The Wall Street Journal said the company is planning to spinoff NBCUniversal cable TV networks, which generates annual revenue of about $7 billion.
The company's cable network portfolio includes, among other properties, MSNBC, CNBC, E!, Golf Channel, and USA.
Delta Air Lines decreased 0.01% to $64.76 after the company reiterated its fourth quarter earnings per share to range between $1.60 and $1.85, and the carrier estimated fiscal 2025 capacity to increase between 3% and 4%.
Nvidia Corp. jumped 0.6% to $147.76 ahead of the company's earnings later in the day, and investors anticipate third quarter earnings per share of 75 cents and revenue of $33.2 billion.
Powell Industries dropped 14.2% to $268.0 after the custom power solution provider reported better-than-expected quarterly results, but new orders fell short of market expectations.
Fiscal fourth quarter revenue jumped 32%, earnings soared 74%, and new orders in the fiscal year fell to $1.1 billion from $1.4 in the previous year.
Dolby Laboratories soared 11.5% to $81.19 after the audio and imaging technology provider reported better-than-expected quarterly earnings in the fiscal fourth quarter ending in September.
Revenue increased to $304.8 million from $290.5 million, net income advanced to $58.6 million from $9.2 million, and diluted earnings per share rose to 61 cents from 9 cents a year earlier.
Keysight Technologies soared 10.5% to $168.0 after the test equipment company reported better-than-expected fiscal-fourth quarter results.
Revenue declined 1.8% to $1.29 billion, net income swung to a loss of $73 million compared to a profit of $226 million, and diluted earnings per share were a loss of 42 cents compared to $1.28 a year earlier.
The company forecast first fiscal quarter 2025 revenue in the range of $1.265 billion to $1.285 billion, and Non-GAAP earnings per share between $1.65 and $1.71.
Wall Street Indexes Advanced Ahead of Nvidia Earnings
Barry Adams
20 Nov, 2024
New York City
Stock market indexes inched higher in early trading as investors reviewed the latest earnings updates and awaited the release of quarterly results from tech giant Nvidia.
The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.4%, and investors looked forward to details of Nvidia's earnings results.
Specifically, investors are looking to the company's plans to ramp up its production of the popular Blackwell chip and artificial intelligence spending trends.
Target Corp. plunged sharply after the company reported weaker-than-expected third quarter earnings, and the company's fourth quarter earnings outlook fell short of expectations.
Market sentiment improved after tensions between the U.S. and Russia appeared to ease following comments from Russia's foreign minister, Sergei Lavrov, indicating nuclear war could be averted.
Following Lavrov's comments, European markets rebounded and halted a three-day slide.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to $5,944.50, the Nasdaq Composite added 0.1% to 18,768.24, and the Russell 2000 index inched higher 0.1% to 2,335.17.
The yield on 2-year Treasury notes edged higher to 4.31%, 10-year Treasury notes inched up to 4.42%, and 30-year Treasury bonds decreased to 4.61%.
WTI crude oil increased $0.53 to $69.77 a barrel, and natural gas prices edged up 11 cents to $3.14 a thermal unit.
Gold decreased by $2.44 to $2,632.63 an ounce, and silver decreased by $0.21 to $31.04.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.53.
U.S. Stock Movers
Target Corp. plunged 19% to $127.35 after the discount retailer reported weaker-than-expected quarterly results and guided a cautious outlook.
The retailer reported third quarter earnings per share of $1.85, and the company forecast fourth quarter earnings per share between $1.85 and $2.45, sharply lower than the market expectation of at least $2.65.
Comcast increased 1.7% to $43.05 after The Wall Street Journal said the company is planning to spinoff NBCUniversal cable TV networks, which generates annual revenue of about $7 billion.
The company's cable network portfolio includes, among other properties, MSNBC, CNBC, E!, Golf Channel, and USA.
Delta Air Lines decreased 0.01% to $64.76 after the company reiterated its fourth quarter earnings per share to range between $1.60 and $1.85, and the carrier estimated fiscal 2025 capacity to increase between 3% and 4%.
Nvidia Corp. jumped 0.6% to $147.76 ahead of the company's earnings later in the day, and investors anticipate third quarter earnings per share of 75 cents and revenue of $33.2 billion.
Powell Industries dropped 14.2% to $268.0 after the custom power solution provider reported better-than-expected quarterly results, but new orders fell short of market expectations.
Fiscal fourth quarter revenue jumped 32%, earnings soared 74%, and new orders in the fiscal year fell to $1.1 billion from $1.4 in the previous year.
Dolby Laboratories soared 11.5% to $81.19 after the audio and imaging technology provider reported better-than-expected quarterly earnings in the fiscal fourth quarter ending in September.
Revenue increased to $304.8 million from $290.5 million, net income advanced to $58.6 million from $9.2 million, and diluted earnings per share rose to 61 cents from 9 cents a year earlier.
Wall Street Indexes Advanced Ahead of Nvidia Earnings
Barry Adams
20 Nov, 2024
New York City
Stock market indexes inched higher in early trading as investors reviewed the latest earnings updates and awaited the release of quarterly results from tech giant Nvidia.
The S&P 500 index edged up 0.2%, and the Nasdaq Composite advanced 0.4%, and investors looked forward to details of Nvidia's earnings results.
Specifically, investors are looking to the company's plans to ramp up its production of the popular Blackwell chip and artificial intelligence spending trends.
Target Corp. plunged sharply after the company reported weaker-than-expected third quarter earnings, and the company's fourth quarter earnings outlook fell short of expectations.
Market sentiment improved after tensions between the U.S. and Russia appeared to ease following comments from Russia's foreign minister, Sergei Lavrov, indicating nuclear war could be averted.
Following Lavrov's comments, European markets rebounded and halted a three-day slide.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to $5,944.50, the Nasdaq Composite added 0.1% to 18,768.24, and the Russell 2000 index inched higher 0.1% to 2,335.17.
The yield on 2-year Treasury notes edged higher to 4.31%, 10-year Treasury notes inched up to 4.42%, and 30-year Treasury bonds decreased to 4.61%.
WTI crude oil increased $0.53 to $69.77 a barrel, and natural gas prices edged up 11 cents to $3.14 a thermal unit.
Gold decreased by $2.44 to $2,632.63 an ounce, and silver decreased by $0.21 to $31.04.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.53.
U.S. Stock Movers
Target Corp. plunged 19% to $127.35 after the discount retailer reported weaker-than-expected quarterly results and guided a cautious outlook.
The retailer reported third quarter earnings per share of $1.85, and the company forecast fourth quarter earnings per share between $1.85 and $2.45, sharply lower than the market expectation of at least $2.65.
Comcast increased 1.7% to $43.05 after The Wall Street Journal said the company is planning to spinoff NBCUniversal cable TV networks, which generates annual revenue of about $7 billion.
The company's cable network portfolio includes, among other properties, MSNBC, CNBC, E!, Golf Channel, and USA.
Delta Air Lines decreased 0.01% to $64.76 after the company reiterated its fourth quarter earnings per share to range between $1.60 and $1.85, and the carrier estimated fiscal 2025 capacity to increase between 3% and 4%.
Nvidia Corp. jumped 0.6% to $147.76 ahead of the company's earnings later in the day, and investors anticipate third quarter earnings per share of 75 cents and revenue of $33.2 billion.
Powell Industries dropped 14.2% to $268.0 after the custom power solution provider reported better-than-expected quarterly results, but new orders fell short of market expectations.
Fiscal fourth quarter revenue jumped 32%, earnings soared 74%, and new orders in the fiscal year fell to $1.1 billion from $1.4 in the previous year.
Dolby Laboratories soared 11.5% to $81.19 after the audio and imaging technology provider reported better-than-expected quarterly earnings in the fiscal fourth quarter ending in September.
Revenue increased to $304.8 million from $290.5 million, net income advanced to $58.6 million from $9.2 million, and diluted earnings per share rose to 61 cents from 9 cents a year earlier.
European Markets Halted 3-Day Slide, UK Consumer Inflation Accelerated In October
Bridgette Randall
20 Nov, 2024
London
European markets rebounded after tensions between the U.S. and Russia appeared to ease, and investors debated future rate paths.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged slightly higher, but they traded in a tight range.
Market sentiment recovered after Russia's foreign minister, Sergei Lavrov, said all efforts would be made to avoid a nuclear confrontation and the U.S. restrained from updating its nuclear policy.
UK Consumer Price Inflation Accelerated
Consumer price inflation in the U.K. accelerated more than expected in October, according to the latest data released by the Office for National Statistics.
Annual inflation accelerated to a six-month high of 2.3% in October from 1.7% in September, driven by a 5.5% jump in housing and household services, a 4.3% increase in restaurants and hotels, and a 5% rise in prices for services.
However, food inflation was steady at 1.9%.
Annual core inflation, which excludes volatile food and energy prices, accelerated to 3.3% from 3.2%.
Germany's Producer Price Deflation Extends to 16th Month in October
Producer prices in Germany declined for the sixteenth month in a row, driven by a sharp drop in energy prices, the Federal Statistical Office, or Destatis, reported Wednesday.
Producer prices declined 1.1% from a year ago in October, easing from a 1.4% in the previous month.
Excluding energy, producer prices rose 1.3% from a year ago.
Capital goods prices rose 2.0%, consumer goods prices advanced 1.9%, durable goods rose 0.9%, and intermediate goods edged up 0.4%.
On a monthly basis, producer prices increased by 0.2%, rebounding from a 0.5% decrease in September.
Europe Indexes and Yields
The DAX index increased by 0.2% to 19,107.86; the CAC-40 index advanced by 0.2% to 7,242.55; and the FTSE 100 index rose by 0.1% to 8,104.60.
The yield on 10-year German bonds edged higher to 2.36%, French bonds inched up to 3.10%, the UK gilts edged higher to 4.49%, and Italian bonds increased to 3.58%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.61 Swiss cents.
Brent crude increased $0.16 to $73.48 a barrel, and the Dutch TTF natural gas rose by €0.18 to €46.08 per MWh.
Europe Stock Movers
Sage Group PLC soared 19% to 1,281.50 pence after the enterprise resource planning software company reported strong full-year financial results and announced a new stock repurchase plan.
La Francaise des Jeux SA dropped 4.2% to €37.70 after Credit Agricole announced plans to sell a 2.2% stake in the lottery operator in France.
Bank and construction stocks were among the leading gainers as investors unwound safe-haven trades following the easing of tensions between the U.S. and Russia.
UniCredit SpA increased 0.3% to €38.87, Credit Agricole SA advanced 0.2% to €13.38, BNP Paribas decreased 0.7% to €58.89, Deutsche Bank advanced 0.9% to €16.04, and Barclays advanced 1% to 258.50 pence.
Partners Group Holding AG advanced 1.1% to CHF 1,222.0 after the Swiss private equity group acquired a majority stake in Spain-based hospitality platform Bluesea Hotels.
European Markets Halted 3-Day Slide, UK Consumer Inflation Accelerated In October
Bridgette Randall
20 Nov, 2024
London
European markets rebounded after tensions between the U.S. and Russia appeared to ease, and investors debated future rate paths.
Benchmark indexes in Paris, Frankfurt, Milan, and London edged slightly higher, but they traded in a tight range.
Market sentiment recovered after Russia's foreign minister, Sergei Lavrov, said all efforts would be made to avoid a nuclear confrontation and the U.S. restrained from updating its nuclear policy.
UK Consumer Price Inflation Accelerated
Consumer price inflation in the U.K. accelerated more than expected in October, according to the latest data released by the Office for National Statistics.
Annual inflation accelerated to a six-month high of 2.3% in October from 1.7% in September, driven by a 5.5% jump in housing and household services, a 4.3% increase in restaurants and hotels, and a 5% rise in prices for services.
However, food inflation was steady at 1.9%.
Annual core inflation, which excludes volatile food and energy prices, accelerated to 3.3% from 3.2%.
Germany's Producer Price Deflation Extends to 16th Month in October
Producer prices in Germany declined for the sixteenth month in a row, driven by a sharp drop in energy prices, the Federal Statistical Office, or Destatis, reported Wednesday.
Producer prices declined 1.1% from a year ago in October, easing from a 1.4% in the previous month.
Excluding energy, producer prices rose 1.3% from a year ago.
Capital goods prices rose 2.0%, consumer goods prices advanced 1.9%, durable goods rose 0.9%, and intermediate goods edged up 0.4%.
On a monthly basis, producer prices increased by 0.2%, rebounding from a 0.5% decrease in September.
Europe Indexes and Yields
The DAX index increased by 0.2% to 19,107.86; the CAC-40 index advanced by 0.2% to 7,242.55; and the FTSE 100 index rose by 0.1% to 8,104.60.
The yield on 10-year German bonds edged higher to 2.36%, French bonds inched up to 3.10%, the UK gilts edged higher to 4.49%, and Italian bonds increased to 3.58%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.61 Swiss cents.
Brent crude increased $0.16 to $73.48 a barrel, and the Dutch TTF natural gas rose by €0.18 to €46.08 per MWh.
Europe Stock Movers
Sage Group PLC soared 19% to 1,281.50 pence after the enterprise resource planning software company reported strong full-year financial results and announced a new stock repurchase plan.
La Francaise des Jeux SA dropped 4.2% to €37.70 after Credit Agricole announced plans to sell a 2.2% stake in the lottery operator in France.
Bank and construction stocks were among the leading gainers as investors unwound safe-haven trades following the easing of tensions between the U.S. and Russia.
UniCredit SpA increased 0.3% to €38.87, Credit Agricole SA advanced 0.2% to €13.38, BNP Paribas decreased 0.7% to €58.89, Deutsche Bank advanced 0.9% to €16.04, and Barclays advanced 1% to 258.50 pence.
Partners Group Holding AG advanced 1.1% to CHF 1,222.0 after the Swiss private equity group acquired a majority stake in Spain-based hospitality platform Bluesea Hotels.
Japan's Annual Trade Deficit Shrank In October, Yen Resumed Downward Slide
Akira Ito
20 Nov, 2024
Tokyo
Stock market indexes in Tokyo advanced, and the yen resumed its downward slide amid the rate path and ongoing worries of impending trade tariffs.
The Nikkei 225 stock average and the Topix index turned lower after struggling to stay above the flatline in the early morning trading.
Market indexes are facing headwinds over the last three weeks as the Bank of Japan signals a gradual increase in interest rates and ends a decade of unconventional interest rate policy.
Market jitters were compounded by the ongoing political instability after the ruling coalition of LDP-Komeito parties lost its majority in the lower house of Diet, complicating policy priorities.
So far in the year to Tuesday, the Nikkei 225 stock average has gained 14.9%, and the benchmark index has advanced for the second consecutive year in a row, largely driven by foreign fund inflow in the hopes of corporate reforms.
Market sentiment has been cautious amid a sharp escalation of tensions between the U.S. and Russia after Ukraine launched American-made missiles striking towns near the border with Russia.
Following the strike, Russia's president Vladimir Putin lowered the threshold for a retaliatory nuclear strike, sharply escalating tensions in the region.
The yen resumed its slide and eased to 155.28 after investors overlooked the latest verbal intervention by officials at the ministry of finance.
Currency traders are looking for the yen to trade as low as 165 against the U.S. dollar by the end of the current fiscal year.
Japan's Trade Deficit Shrank in October
Japan's international trade balance recorded its fourth consecutive deficit as imports continue to surpass exports, the Ministry of Finance said on Wednesday.
Japan's exports in October increased 3.1% from a year ago to a three-month high of 9.4 trillion yen; imports advanced 0.4% to 9.88 trillion yen.
Sales of semiconductor machinery soared 42.6%, and scientific and optical instruments advanced 11.8%; however, shipments of transportation equipment fell 4.4%.
Shipments to the U.S. declined 6.2%, to the European Union dropped 11.3%, but exports advanced to China by 1.5%, to India by 18.9%, to Russia by 52.8%, and to the ASEAN region by 7.5%.
Imports advanced for the seventh month in a row but rose at the slowest pace.
Imports of machinery rose 12.5%, chemical by 5.6%, but purchases of mineral fuels fell 11.5% from a year ago, respectively.
Trade deficit shrank to 461.25 billion yen from 702.8 billion yen a year ago, as exports rose faster than imports, but deficit expanded from 294.1 billion yen in September.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 0.3% to 38,328.03, and the broader Topix index declined 0.3% to 38,328.03.
Seven & I Holdings increased 6.6% to ¥2,596.0 on reports that the founding family is looking to raise 8 trillion yen and take the retailer private by the end of this financial year in March.
Tokio Marine dropped 6.9% to ¥5,636.0 despite the insurance company raising its full-year net income outlook and announcing a stock buyback of up to 120 billion yen.
Net premiums written in the first half increased 5.7% from a year ago, reflecting higher rates; however, life insurance premiums plunged 32.9%.
Revenue in the first-half ending in September increased 16% to 4.34 trillion yen, net income attributable to shareholders soared 235% to 688.5 billion yen, and basic net income per share advanced to 351.38 yen from 103.38 yen a year earlier.
The company declared 81 yen per share earnings and forecast a total dividend of 162 yen per share in the current year, higher than 123 yen per share.
The company revised consolidated business forecasts and ordinary profit of 1,240.0 billion yen and 880.0 billion yen for net income attributable to owners of the parent.
The company projected full-year net premiums of 5.08 trillion yen and life insurance premiums of 890 billion yen.
The insurance company forecast net incurred losses related to natural catastrophes occurring during the period of 116 billion yen in Japan and 85 billion yen outside Japan.
SOMPO Holdings increased 11.8% to ¥3,984.0 after the insurance company reported strong financial performance in the first half, driven by higher premiums and investment gains.
Ordinary income increased 11.4% to 2.96 trillion yen from 2.65 trillion yen, and the insurance company estimated annual net income to decline.
Net premiums written increased by 8.3% to 2.26 billion yen, and investment income soared 51% to 386.76 billion yen, largely attributed to gains on sales of securities.
Basic earnings per share increased to 267.05 yen from 132.21 yen a year earlier.
Meanwhile, the net income attributable to shareholders almost doubled to 262.23 billion yen from 131.5 billion yen.
The company forecast net income attributable to shareholders in the current year to decline 3.9% to 400 billion yen and earnings per share of 412.27 yen.
Japan's Annual Trade Deficit Shrank In October, Yen Resumed Downward Slide
Akira Ito
20 Nov, 2024
Tokyo
Stock market indexes in Tokyo advanced, and the yen resumed its downward slide amid the rate path and ongoing worries of impending trade tariffs.
The Nikkei 225 stock average and the Topix index turned lower after struggling to stay above the flatline in the early morning trading.
Market indexes are facing headwinds over the last three weeks as the Bank of Japan signals a gradual increase in interest rates and ends a decade of unconventional interest rate policy.
Market jitters were compounded by the ongoing political instability after the ruling coalition of LDP-Komeito parties lost its majority in the lower house of Diet, complicating policy priorities.
So far in the year to Tuesday, the Nikkei 225 stock average has gained 14.9%, and the benchmark index has advanced for the second consecutive year in a row, largely driven by foreign fund inflow in the hopes of corporate reforms.
Market sentiment has been cautious amid a sharp escalation of tensions between the U.S. and Russia after Ukraine launched American-made missiles striking towns near the border with Russia.
Following the strike, Russia's president Vladimir Putin lowered the threshold for a retaliatory nuclear strike, sharply escalating tensions in the region.
The yen resumed its slide and eased to 155.28 after investors overlooked the latest verbal intervention by officials at the ministry of finance.
Currency traders are looking for the yen to trade as low as 165 against the U.S. dollar by the end of the current fiscal year.
Japan's Trade Deficit Shrank in October
Japan's international trade balance recorded its fourth consecutive deficit as imports continue to surpass exports, the Ministry of Finance said on Wednesday.
Japan's exports in October increased 3.1% from a year ago to a three-month high of 9.4 trillion yen; imports advanced 0.4% to 9.88 trillion yen.
Sales of semiconductor machinery soared 42.6%, and scientific and optical instruments advanced 11.8%; however, shipments of transportation equipment fell 4.4%.
Shipments to the U.S. declined 6.2%, to the European Union dropped 11.3%, but exports advanced to China by 1.5%, to India by 18.9%, to Russia by 52.8%, and to the ASEAN region by 7.5%.
Imports advanced for the seventh month in a row but rose at the slowest pace.
Imports of machinery rose 12.5%, chemical by 5.6%, but purchases of mineral fuels fell 11.5% from a year ago, respectively.
Trade deficit shrank to 461.25 billion yen from 702.8 billion yen a year ago, as exports rose faster than imports, but deficit expanded from 294.1 billion yen in September.
Japan Stock Movers
The Nikkei 225 Stock Average decreased 0.3% to 38,328.03, and the broader Topix index declined 0.3% to 38,328.03.
Seven & I Holdings increased 6.6% to ¥2,596.0 on reports that the founding family is looking to raise 8 trillion yen and take the retailer private by the end of this financial year in March.
Tokio Marine dropped 6.9% to ¥5,636.0 despite the insurance company raising its full-year net income outlook and announcing a stock buyback of up to 120 billion yen.
Net premiums written in the first half increased 5.7% from a year ago, reflecting higher rates; however, life insurance premiums plunged 32.9%.
Revenue in the first-half ending in September increased 16% to 4.34 trillion yen, net income attributable to shareholders soared 235% to 688.5 billion yen, and basic net income per share advanced to 351.38 yen from 103.38 yen a year earlier.
The company declared 81 yen per share earnings and forecast a total dividend of 162 yen per share in the current year, higher than 123 yen per share.
The company revised consolidated business forecasts and ordinary profit of 1,240.0 billion yen and 880.0 billion yen for net income attributable to owners of the parent.
The company projected full-year net premiums of 5.08 trillion yen and life insurance premiums of 890 billion yen.
The insurance company forecast net incurred losses related to natural catastrophes occurring during the period of 116 billion yen in Japan and 85 billion yen outside Japan.
SOMPO Holdings increased 11.8% to ¥3,984.0 after the insurance company reported strong financial performance in the first half, driven by higher premiums and investment gains.
Ordinary income increased 11.4% to 2.96 trillion yen from 2.65 trillion yen, and the insurance company estimated annual net income to decline.
Net premiums written increased by 8.3% to 2.26 billion yen, and investment income soared 51% to 386.76 billion yen, largely attributed to gains on sales of securities.
Basic earnings per share increased to 267.05 yen from 132.21 yen a year earlier.
Meanwhile, the net income attributable to shareholders almost doubled to 262.23 billion yen from 131.5 billion yen.
The company forecast net income attributable to shareholders in the current year to decline 3.9% to 400 billion yen and earnings per share of 412.27 yen.
PBoC Holds Loan Prime Rates Steady, China and HK Stocks Waver
Li Chen
20 Nov, 2024
Hong Kong
Stock market indexes in China and Hong Kong lacked direction as investors debated the economic growth outlook and geopolitical situation.
The Hang Seng index inched up a fraction, and the mainland-focused CSI 300 index advanced 0.3%.
The People's Bank of China left its loan prime rates unchanged after lowering rates in the previous month.
The central bank held steady one-year loan prime rate at 3.1% and 5-year loan prime rate at 3.6%; both rates are used as reference rates for consumer and corporate loans.
Stock market indexes have been under pressure for the last six weeks after fiscal and monetary reforms failed to impress investors.
Moreover, corporate results in the latest earnings season have also shown growth of less than 1%, knocking down the expectations laid out by many international brokerage houses.
Stock market indexes in China and Hong Kong are likely to face more selling pressure in the coming weeks, as valuations do not reflect earnings and economic growth realities.
Moreover, the Chinese economy is in long-term economic decline, and annual growth rates are expected to ease to as low as 3% over the next three years.
Policymakers in Beijing have announced a slew of measures to revive the faltering property market, including a lower transaction tax, relaxing rules for first-time home buyers, and offering cheaper mortgage loans.
However, those measures have failed to provide support to developers to complete unfinished residential projects and bolster the financial strength of property companies.
Chinese manufacturing companies are also bracing for higher tariffs from the U.S. as the new administration works to impose tariffs of as much as 60%.
China Stock Movers
The Hang Seng index increased 0.05% to 19,674.23, and the CSI 300 index added 0.3% to 3,987.53.
Alibaba Group decreased 1.5% to HK $84.05, Tencent Holdings advanced 0.7% to HK $409.40, and JD.com decreased 0.07% to HK $137.10.
Baidu.com added 0.7% to HK $83.70 ahead of the company's quarterly financial results later today.
Xiaomi Corp. declined 2.5% to HK $27.55 and extended two-day losses to more than 5% despite the company lifting its annual electric vehicle delivery outlook a few days ago.
Hunan Xiangtou Goldsky Titanium Metal Co. Ltd. soared more than 310% to 29.32 yuan on the first day of trading after the company listed its stock on the Shanghai stock exchange.
Hunan Xiangtou Goldsky Titanium priced its offering at 7.16 per share and raised 662 million yuan.
PBoC Holds Loan Prime Rates Steady, China and HK Stocks Waver
Li Chen
20 Nov, 2024
Hong Kong
Stock market indexes in China and Hong Kong lacked direction as investors debated the economic growth outlook and geopolitical situation.
The Hang Seng index inched up a fraction, and the mainland-focused CSI 300 index advanced 0.3%.
The People's Bank of China left its loan prime rates unchanged after lowering rates in the previous month.
The central bank held steady one-year loan prime rate at 3.1% and 5-year loan prime rate at 3.6%; both rates are used as reference rates for consumer and corporate loans.
Stock market indexes have been under pressure for the last six weeks after fiscal and monetary reforms failed to impress investors.
Moreover, corporate results in the latest earnings season have also shown growth of less than 1%, knocking down the expectations laid out by many international brokerage houses.
Stock market indexes in China and Hong Kong are likely to face more selling pressure in the coming weeks, as valuations do not reflect earnings and economic growth realities.
Moreover, the Chinese economy is in long-term economic decline, and annual growth rates are expected to ease to as low as 3% over the next three years.
Policymakers in Beijing have announced a slew of measures to revive the faltering property market, including a lower transaction tax, relaxing rules for first-time home buyers, and offering cheaper mortgage loans.
However, those measures have failed to provide support to developers to complete unfinished residential projects and bolster the financial strength of property companies.
Chinese manufacturing companies are also bracing for higher tariffs from the U.S. as the new administration works to impose tariffs of as much as 60%.
China Stock Movers
The Hang Seng index increased 0.05% to 19,674.23, and the CSI 300 index added 0.3% to 3,987.53.
Alibaba Group decreased 1.5% to HK $84.05, Tencent Holdings advanced 0.7% to HK $409.40, and JD.com decreased 0.07% to HK $137.10.
Baidu.com added 0.7% to HK $83.70 ahead of the company's quarterly financial results later today.
Xiaomi Corp. declined 2.5% to HK $27.55 and extended two-day losses to more than 5% despite the company lifting its annual electric vehicle delivery outlook a few days ago.
Hunan Xiangtou Goldsky Titanium Metal Co. Ltd. soared more than 310% to 29.32 yuan on the first day of trading after the company listed its stock on the Shanghai stock exchange.
Hunan Xiangtou Goldsky Titanium priced its offering at 7.16 per share and raised 662 million yuan.
Disruptions from Hurricanes and Rising Inventories Dampen U.S. Housing Starts
Brian Turner
19 Nov, 2024
Washington, D.C.
U.S. housing starts fell more than expected in October as higher mortgage rates and hurricanes dampened activities.
Building permits adjusted for seasonal factors declined 7.7% from a year ago to 1.416 million, the U.S. Census Bureau reported Tuesday.
Single-family home authorizations declined 1.8% to 968,000, and permits for multi-family homes with five or more units decreased 20.9% from a year ago, respectively.
Housing starts dropped 4% from a year ago to 1.311 million units, driven by a 0.5% fall in single-family homes to 970,000 and 5-units or more multi-family by 12.6% to 326,000.
Single-family housing start annual rate in the Northeast increased 39.2% to 110,000 units, in the Midwest declined 7.1% to 197,000, in the South fell 7.8% to 666,000, and decreased 4.0% to 338,000.
Seasonally adjusted new home completion annual rate increased 16.8% from a year ago 1.614 million units, driven by single-family home completion rate decline of 0.2% to 986,000 and multi-family home completion rate increase of 61.4% to 615,000.
Disruptions from Hurricanes and Rising Inventories Dampen U.S. Housing Starts
Brian Turner
19 Nov, 2024
Washington, D.C.
U.S. housing starts fell more than expected in October as higher mortgage rates and hurricanes dampened activities.
Building permits adjusted for seasonal factors declined 7.7% from a year ago to 1.416 million, the U.S. Census Bureau reported Tuesday.
Single-family home authorizations declined 1.8% to 968,000, and permits for multi-family homes with five or more units decreased 20.9% from a year ago, respectively.
Housing starts dropped 4% from a year ago to 1.311 million units, driven by a 0.5% fall in single-family homes to 970,000 and 5-units or more multi-family by 12.6% to 326,000.
Single-family housing start annual rate in the Northeast increased 39.2% to 110,000 units, in the Midwest declined 7.1% to 197,000, in the South fell 7.8% to 666,000, and decreased 4.0% to 338,000.
Seasonally adjusted new home completion annual rate increased 16.8% from a year ago 1.614 million units, driven by single-family home completion rate decline of 0.2% to 986,000 and multi-family home completion rate increase of 61.4% to 615,000.
World Markets Under Pressure as Russia Threatens Nuclear Response
Alexander Garcia
19 Nov, 2024
Miami
Stock market indexes looked down, gold jumped, and bond yields edged lower as tensions escalated between the U.S. and Russia.
The S&P 500 index declined 0.8%, and the Nasdaq Composite dropped 1.1% after Russia's president, Vladimir Putin, lowered his nation's bar for the use of atomic weapons.
The latest escalation is driven by a series of events starting with North Korea supplying soldiers to support Russia's ongoing war in Ukraine, which prompted the U.S. to allow Ukraine to use long-range missiles to strike deep in Russia, driving Putin to revise nuclear doctrine.
Putin said Russia would consider using atomic weapons if his nation or its allies were met with the "use of conventional weapons that created a critical threat to their sovereignty and/or their territorial integrity.”
Russia's news agency TASS also noted that the nuclear doctrine was last revised in June 2020.
"Moscow also reserves the right to consider a nuclear response to a conventional weapons attack threatening its sovereignty, a large-scale launch of enemy aircraft, missiles, and drones targeting Russian territory, their crossing of the Russian border, and an attack on its ally Belarus," noted the news agency.
Investors sought protection in bonds amid rising geopolitical tensions and looming trade wars among three large trading blocs: the U.S., the European Union, and China.
Investors also awaited the release of surveys of manufacturing and service sectors later in the week.
Disruptions from Hurricanes and Rising Inventories Dampen U.S. Housing Starts
U.S. housing starts fell more than expected in October as higher mortgage rates and hurricanes dampened activities.
Building permits adjusted for seasonal factors declined 7.7% from a year ago to 1.416 million, the U.S. Census Bureau reported Tuesday.
Single-family home authorizations declined 1.8% to 968,000, and permits for multi-family homes with five or more units decreased 20.9% from a year ago, respectively.
Housing starts dropped 4% from a year ago to 1.311 million units, driven by a 0.5% fall in single-family homes to 970,000 and 5-units or more multi-family by 12.6% to 326,000.
Single-family housing start annual rate in the Northeast increased 39.2% to 110,000 units, in the Midwest declined 7.1% to 197,000, in the South fell 7.8% to 666,000, and decreased 4.0% to 338,000.
Seasonally adjusted new home completion annual rate increased 16.8% from a year ago 1.614 million units, driven by single-family home completion rate decline of 0.2% to 986,000 and multi-family home completion rate increase of 61.4% to 615,000.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.04% to $5,891.30, the Nasdaq Composite rose 0.3% to 18,844.79, and the Russell 2000 index declined 0.4% to 2,302.48.
The yield on 2-year Treasury notes edged lower to 4.26%, 10-year Treasury notes inched down to 4.38%, and 30-year Treasury bonds decreased to 4.56%.
WTI crude oil decreased $0.35 to $68.30 a barrel, and natural gas prices edged down 3 cents to $2.94 a thermal unit.
Gold decreased by $24.06 to $2,636.42 an ounce, and silver increased by $0.19 to $31.34.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 106.40.
U.S. Stock Movers
Walmart increased 3.7% to $87.16 after the retailer reported better-than-expected quarterly results and revised its annual outlook.
The retailer boosted its annual sales estimate to a new range between 4.8% and 5.1%, from the previous estimate between 3.75% and 4.75%.
Consolidated revenue in the third quarter increased 5.5% to $169.6 billion, net income advanced to $4.6 billion from $453 million, and net income rose to 57 cents from 6 cents a year ago.
The retailer said it repurchased 46 million shares for $3 billion in the year so far, as part of its $20 billion stock buyback plan.
The company said sales at its U.S. locations increased 5.5% to $114.9 billion, reflecting broad strength as more customers look for products beyond its grocery aisles.
E-commerce sales in the U.S. rose 22%, led by store-fulfilled pickup & delivery, advertising revenue, and marketplace activities.
Super Micro Computer soared 27% to $27.48 after the company appointed BDO as its new independent auditor following the resignation of its previous auditor, Ernst & Young.
The company also said it plans to file its annual report for the year ending on June 30 and its latest quarterly report ending on September 30.
Russia Fears Drive Eurozone Bond Yields to One-Month Low, Swiss Goods Trade Surplus Soar In October
Eurozone Bond Yields Eased to One-Month Low, Swiss Goods Trade Surplus Soared In October
Stock market indexes across Europe looked down, bond yields headed lower, and the euro and the pound drifted lower against the U.S. dollar.
Benchmark indexes in Paris, Milan, Frankfurt, and London declined as investors worried about escalating tensions between Russia and Ukraine.
Investors sought safety in bonds amid worries of supply chain disruptions and a potential deepening of conflict between Russia and Ukraine.
Bond yields edged lower after Russia's president, Vladimir Putin, pledged to use atomic weapons in the event the nation is attacked by massive conventional weapons.
Moreover, the European Central Bank officials also signaled a dovish outlook for the future rate path, suggesting that rate cuts at the next policy meeting are less likely.
Chemical and Pharma Exports Growth Drives Swiss Trade Surplus to Record High in October
On the economic front, Switzerland's goods trade surplus soared to a record high of CHF 6 billion, up from the revised CHF 4.0 billion in September, according to a monthly update released by the Federal Customs Administration.
On a monthly basis, seasonally adjusted exports surged 10.2% to CHF 24.4 billion, driven by sharply higher sales of jewelry & watches, vehicles, and pharmaceuticals and chemicals.
Meanwhile, imports advanced 1.8% from the previous month to CHF 18.4 billion, with increases in chemical and pharmaceutical products, jewelry, and paper and graphic products.
Chemical and pharmaceutical exports jumped 15.6% to CHF 14.3 billion from CHF 12.3 billion; advanced electrical machinery rose 3.1% to CHF 2.7 billion from CHF 2.6 billion; and watches advanced 5.1% to CHF 2.1 billion from CHF 2.0 billion.
Between January and October 2024, international trade balance increased to CHF 39.5 billion, compared to CHF 31.8 billion in the same period in 2023.
Europe Indexes and Yields
The DAX index decreased by 1.3% to 18,943.15; the CAC-40 index eased by 1.2% to 7,188.98; and the FTSE 100 index fell by 0.3% to 8,083.25.
The yield on 10-year German bonds edged lower to 2.31%, French bonds inched down to 3.05%, the UK gilts edged lower to 4.42%, and Italian bonds decreased to 3.53%.
The euro edged lower to $1.05; the British pound inched down to $1.26; and the U.S. dollar strengthened to 88.27 Swiss cents.
Brent crude decreased $0.07 to $73.22 a barrel, and the Dutch TTF natural gas fell by €1.24 to €45.21 per MWh.
Europe Stock Movers
ThyssenKrupp AG increased 8.1% to €3.67 after the German steelmaker reported slightly better-than-expected earnings.
Sales in the fiscal year 2024 ending in September declined 7% to €35 billion, and adjusted operating earnings declined to €567 million from €703 million a year earlier, respectively.
The company estimated net income to swing to €100 million from a loss of €1.4 billion in the financial year that just ended.
Net loss in the fiscal year 2024 shrank to €1.4 billion from €2.0 billion the prior year, driven by asset impairment of €1.2 billion in its steel division in Europe.
The company proposed to pay an annual dividend of 15 cents per share and return cash to shareholders for the third year in a row.
Nestle SA declined 1.8% to CHF 76.78 after the company said it plans to accelerate its cost savings by CHF 2.5 billion and support additional investments.
Caixabank SA decreased 4.8% to €5.42 after the company released its 2025-2027 strategic plan.
Japanese Yen In Focus Amid Growing Prospects of BoJ Intervention
Stock market indexes in Tokyo rebounded in Tuesday's trading, and the yen was in focus on the rising government intervention prospects.
The Nikkei 225 stock average gained 0.4%, the broader Topix index advanced 0.6%, and the yen hovered near 154.50 against the U.S. dollar.
Bank of Japan Governor Kazuo Ueda reiterated the central bank's commitment to raising rates gradually but failed to provide the timing and size of these increases.
The yen edged slightly higher on the growing speculation that the Bank of Japan is preparing to conduct another market intervention and arrest the rapid decline of the currency.
Stocks in Tokyo have been volatile over the last six weeks after the persistent weakening of the yen supports higher profits at export-driven companies but also lifts inflation, which negatively impacts consumer spending.
On the economic front, investors are looking forward to the release of international trade data on Wednesday and an inflation update on Friday.
Japan Stock Movers
The Nikkei 225 stock average increased 0.4% to 38,377.07, and the broader Topix index gained 0.6% to 2,708.04.
Banks and leading export companies led the market gainers in Tuesday's trading.
Sumitomo Mitsui Financial jumped 3.1% to ¥3,669.0, Mitsubishi UFJ Financial advanced 1.6% to ¥1,838.50, and Mizuho Financial gained 2.7% to ¥3,842.0.
Panasonic Holdings advanced 4.2% to ¥1,547.50, Canon added 1.1% ¥5,039.0, and Sony Group inched higher 0.2% to ¥2,922.0.
Japan Steel Works increased 11.3% to ¥6,488.0, Nidec Corp. advanced 4.4% to ¥2,864.0, and Fujikura Ltd. jumped 6.9% to ¥5,638.0.
Suzuki Motor increased 0.8% to ¥1,654.0, but Recruit Holding declined 3% to ¥9,403.0.
China Indexes Struggle to Advance as Regulators Promise More Reforms
Stock market indexes in China and Hong Kong traded in a tight range amid rising prospects of escalation of trade tensions with the U.S. and the European Union.
The Hang Seng index edged up 0.2%, but the mainland-focused CSI 300 index turned lower by 0.7% in the late afternoon trading.
Market indexes have been on the decline over the last six weeks after the previously promised fiscal reforms fell short of market expectations.
Stock market indexes have lost about 25% from the peak on October 7, after several measures announced by the finance ministry and the People's Bank of China failed to revive investor confidence.
Vice-Premier He Lifeng, in a keynote delivered at a gathering organized by the Hong Kong Monetary Authority, said China will issue long-term treasury bonds to finance its plans to assume local government debts.
Lifeng also promised to improve mutual market access through the Stock Connect system and facilitate Chinese companies to list their shares on the Hong Kong Stock Exchange.
China Stock Movers: Xiaomi and Trip.com In Focus
The Hang Seng Index increased 0.2% to 19,615.96, and the mainland-focused CSI 300 index declined 0.7% to 3,924.48.
Trip.com advanced 5.3% to HK $503.50 after the online travel platform reported better-than-expected revenue in the third quarter.
Revenue increased 16% to 15.9 billion yuan, or $2.2 billion, slightly higher than analysts estimates, reflecting holiday travel demand to Japan, Thailand, and Singapore.
Xiaomi Corp. declined 3.8% to HK $27.65, trimming gains of 85% in the year so far to Monday after the company posted higher-than-expected revenue in the third quarter.
Revenue increased 31% to 92.5 billion yuan from 70.9 billion yuan, and after-tax profit increased 9.7% to 5.3 billion yuan from 4.9 billion yuan a year ago.
Smartphone x A IoT segment revenue rose 16.8% to 82.8 billion yuan, and electric vehicle segment and other initiatives revenue reached 9.7 billion yuan.
Global shipment of smartphones increased 3.1% to 43.1 million units, and the company maintained its number 3 ranking in global shipment with a market share of 13.8%, according to Canalys.
The company said its shipment ranking in mainland China rose to number 4, and market share increased by 1.2 percentage points from a year ago to 14.7%.
In the third quarter of 2024, the deliveries of the Xiaomi SU7 Series reached 39,790 vehicles, and in October, monthly deliveries rose to 20,000 vehicles.
Kunshan Wanyuantong Electronics Technology, a maker of printed circuit boards, soared 333% to 48.61 yuan after the company's stock began trading in Beijing.
The company priced its public offering at 11.16 yuan per share and sold 1.4725 million shares.