Market Update
U.S. Movers: Apple, Amazon.com, Chevron, Exxon Mobil, Intel
Scott Peters
02 Aug, 2024
New York City
Apple Inc. increased 2.2% to $222.75 after the iPhone maker reported better-than-expected quarterly results and sales hit hew highs amid rinsing sales in India.
Revenue in the fiscal third quarter ending in June increased 5% to $85.8 billion from $81.8 billion, net income jumped to $21.4 billion from $19.9 billion, and diluted earnings per share advanced to $1.40 from $1.26 a year ago.
On a regional basis, Greater China sales edged down to $14.7 billion from $15.8 billion, Japan sales edged up to $5.1 billion from $4.8 billion, and Americas sales advanced to $37.7 billion from $35.4 billion a year ago, respectively.
Across products and services, iPhone sales edged slightly lower to $39.3 billion from $39.7 billion, and services sales increased to $24.2 billion from $21.2 billion a year ago, respectively.
Amazon.com Inc. dropped 12.2% to $161.83 after the online retailer and cloud service provider reported weaker-than-expected second quarter revenue and issued a disappointing estimate.
Revenue in second quarter increased 10% to $148 billion from $134.4 billion, net income rose to $13.5 billion from $6.7 billion, and diluted earnings per share advanced to $1.26 from 65 cents a year ago.
Intel plunged 29% to $20.74 after the advanced chipmaker reported weaker-than-expected second quarter results, announced job cuts of 15,000, and issued a weak outlook.
Revenue in the second quarter declined 1% to $12.8 billion from $12.9 billion, net income swung to a loss of $1.6 billion from a profit of $1.5 billion, and diluted earnings per share were a loss of 38 cents compared to a profit of 35 cents a year ago.
The advanced chipmaker announced its deepest restructuring plan in forty years and planned to eliminate 15,000 jobs in an effort to reduce costs by $10 billion.
The company announced a quarterly dividend of 12.5 cents per share payable on September 1 to shareholders on record on August 7.
In addition, the company announced the suspension of its dividend starting in the fourth quarter.
Exxon Mobil Corporation inched up 0.1% to $117.05, and the energy company reported better-than-expected second quarter earnings driven by record energy production in Guyana and the Permian Basin oil fields.
Total revenue increased to $93.1 billion from $82.9 billion, net income attributable to shareholders rose to $9.2 billion from $7.5 billion, and diluted earnings per share advanced to $2.14 billion from $1.94 a year ago.
In the quarter, the company distributed $9.5 billion to shareholders, including $4.3 billion in dividends and $5.2 billion of share repurchases.
Net production in the second quarter increased 15% to 4.4 million oil-equivalent barrels per day due to contributions from the recent acquisition of Pioneer Natural Resources and higher production from energy fields in Guyana and heritage Permian.
On May 3, ExxonMobil completed the acquisition of Pioneer Natural Resources through the exchange of 545 million shares of ExxonMobil common stock valued at $63 billion and the assumption of $5 billion of debt.
Chevron Corp. declined 2.5% to $148.85 after the energy company reported weaker-than-expected second-quarter earnings due to weak crude oil refining margins.
Revenue increased to $51.2 billion from $48.9 billion, net income decreased to $4.4 billion from $6.0 billion, and diluted earnings per share fell to $2.43 from $3.20 a year ago.
Chevron's global production increased by 11% because of higher production at oil fields in the Permian and Denver-Julesburg basins and contributions from the recent acquisition of PDC Energy.
Chevron also executed agreements in Namibia, Brazil, Equatorial Guinea, and Angola to increase the company’s global exploration acreage footprint.
The company returned $6 billion of cash to shareholders during the quarter, including dividends of $3 billion and share repurchases of $3 billion.
The company's board declared $1.63 per share of quarterly dividend payable on September 10 to shareholders on record on August 19.
Weak U.S. Jobs Report Extends Steep U.S. and Global Markets Sell-off
Barry Adams
02 Aug, 2024
New York City
Market sentiment on Wall Street deteriorated in Friday's trading after a weak jobs report added to the string of economic reports suggesting a weakening U.S. economic backdrop.
The S&P 500 index fell 2.2%, the Nasdaq Composite declined more than 2%, and the Russell 2000 index dropped more than 4%.
Investors sold stocks amid growing evidence that the U.S. economy may face recessionary conditions after nonfarm payroll increases were sharply lower than expected.
Earlier in the week, investors cheered Fed Chair Powell's comments, suggesting that a rate cut may be likely after the September meeting.
However, market excitement turned to despair on Thursday after factory activities contracted for the third quarter in a row in July, and weaker-than-expected results from Amazon and Intel overshadowed market sentiment.
In Friday's trading, market anxieties were further heightened by the fewer-than-expected increase in July payrolls.
The U.S. economy added 114,000 net new jobs in July, following the downwardly revised 179,000 gains in June, the U.S. Bureau of Labor Statistics reported Friday.
Total nonfarm payroll employment edged up, but the increase was below the average monthly gain of 215,000 over the prior 12 months.
In July, employment continued to trend up in health care, in construction, and in transportation and warehousing, while information lost jobs.
Meanwhile, the jobless rate rose to 4.3%.
Average hourly earnings for all nonfarm payrolls increased by 8 cents, or 0.2%, from the previous month or 3.6% from a year ago to $35.07.
For the week, the S&P 500 index is set to close down 3.5%, the Nasdaq Composite falls 4%, and the Russell 2000 index declines by 7.2%.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 2.2% to 5,314.60, the Nasdaq Composite fell 3.3% to 16,658.98, and the Russell 2000 index declined 4.1% to 2,098.06.
The yield on 2-year Treasury notes edged lower to 3.82%, 10-year Treasury notes decreased to 3.91%, and 30-year Treasury bonds decreased to 4.15%.
WTI crude oil decreased $2.22 to $73.75 a barrel, and natural gas prices edged up 2 cents to $1.99 a thermal unit.
Gold decreased by $10.35 to $2,435.22 an ounce, and silver declined by $0.29 to $28.18.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.20.
U.S. Stock Movers
Apple Inc. increased 2.2% to $222.75 after the iPhone maker reported better-than-expected quarterly results, and sales hit hew highs amid rinsing sales in India.
Amazon.com Inc. dropped 12.2% to $161.83 after the online retailer and cloud service provider reported weaker-than-expected second quarter revenue and issued a disappointing estimate.
Intel plunged 29% to $20.74 after the advanced chipmaker reported weaker-than-expected second quarter results, announced job cuts of 15,000, and issued a weak outlook.
Exxon Mobil inched up 0.1% to $117.05 after the energy company reported better-than-expected quarterly earnings driven by record energy production in Guyana and the Permian Basin.
Chevron Corp. declined 2.5% to $148.85 after the energy company reported weaker-than-expected second-quarter earnings due to weak crude oil refining margins.
Europe Movers: AXA, Capita Group, Chip Equipment Makers, Engie, IAG, Wizz Air
Inga Muller
02 Aug, 2024
Frankfurt
European markets extended weekly losses amid worries of domestic economic stagnation, a weakening economic backdrop in the U.S., and persistent deflation worries in China.
The DAX index decreased by 1.6% to 17,792.84; the CAC-40 index fell by 0.8% to 7,315.21; and the FTSE 100 index declined by 0.2% to 8,267.81.
European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions.
The yield on 10-year German bonds edged lower to 2.20%, French bonds inched lower to 2.97%, the UK gilts inched lower to 3.86%, and Italian bonds decreased to 3.63%.
Chip equipment makers were under pressure after Intel announced another disappointing quarter and its plans to lay off 15% of its staff.
ASML declined 7.5% to €767.30, BE Semiconductor dropped 8.5% to €104.85, and Infineon Technologies dropped 4.2% to €29.81.
AXA investments increased 2.4% to €32.59, and the French insurance company entered into talks with BNP Paribas to sell its investment unit, AXA Investment Managers, for €5.1 billion.
Engie SA increased 3% to €14.95, and the French energy utility and natural gas distributor lifted its annual 2024 outlook, citing its strong first-half results and lower-than-expected financial costs.
Capita declined 9.2% to 17.37 pence after the UK-based outsourcing company reported a decline in first-half revenue.
International Consolidated Airlines Group, or IAG, rose 6% to 169.40 pence, and the parent company of British Airways and Iberian Air reported strong first-half results.
The airline group also announced its plans to reinstate its dividend for the first time since the start of the COVID-19 pandemic.
Wizz Air Holdings decreased 4.6% to 1,411.80 pence after the discount airline reported a decline in seating capacity and passenger count in July.
European Markets Extended Weekly Losses Amid Rising Global Economic Slowdown Worries
Bridgette Randall
02 Aug, 2024
London
European markets extended losses for the second session in a row amid rising worries about the U.S. economy's health and its impact on the eurozone economy.
Benchmark indexes in Frankfurt, Paris, and London declined in Friday's trading, and the widely followed indexes are set to close down between 1% and 4% for the week.
The sharp reversal in market sentiment came about because several key U.S. economic indicators showed a weakening economic backdrop.
Initial claims of jobless benefits approached a one-year high for the last week, and unit labor costs in the second quarter advanced at a slower pace of 0.5% in the second quarter.
In addition, a private survey showed U.S. factory activities in July contracted for the third month in a row, signaling a weakening outlook.
Moreover, the U.S. nonfarm payroll increase in July slowed to 114,000 from the downwardly revised 179,000 jobs in June, according to the latest data released by the U.S. Bureau of Labor Statistics.
Closer to home, French industrial output rose 0.8% on the month in June from a decline of 2.2% in May, driven by a rebound in transport equipment orders, according to a report released by the statistical agency INSEE.
On an annual basis, industrial output declined 1.2%, and manufacturing production decreased 1.4%.
Europe Indexes and Yields
The DAX index decreased by 1.6% to 17,792.84; the CAC-40 index fell by 0.8% to 7,315.21; and the FTSE 100 index declined by 0.2% to 8,267.81.
European bond yields dropped to six-month lows as investors sought safety in government securities amid growing worries about the global economic slowdown and rising geopolitical tensions.
The yield on 10-year German bonds edged lower to 2.20%, French bonds inched lower to 2.97%, the UK gilts inched lower to 3.86%, and Italian bonds decreased to 3.63%.
The euro edged down to $1.08; the British pound inched lower to $1.274; and the U.S. dollar weakened to 87.09 Swiss cents.
Brent crude decreased $0.74 to $78.81 a barrel, and the Dutch TTF natural gas fell by €0.35 to €40.75 per MWh.
Europe Stock Movers
Chip equipment makers were under pressure after Intel announced another disappointing quarter and its plans to lay off 15% of its staff.
ASML declined 7.5% to €767.30, BE Semiconductor dropped 8.5% to €104.85, and Infineon Technologies dropped 4.2% to €29.81.
AXA investments increased 2.4% to €32.59, and the French insurance company entered into talks with BNP Paribas to sell its investment unit, AXA Investment Managers, for €5.1 billion.
Engie SA increased 3% to €14.95, and the French energy utility and natural gas distributor lifted its annual 2024 outlook, citing its strong first-half results and lower-than-expected financial costs.
Capita declined 9.2% to 17.37 pence after the UK-based outsourcing company reported a decline in first-half revenue.
International Consolidated Airlines Group, or IAG, rose 6% to 169.40 pence, and the parent company of British Airways and Iberian Air reported strong first-half results.
The airline group also announced its plans to reinstate its dividend for the first time since the start of the COVID-19 pandemic.
Wizz Air Holdings decreased 4.6% to 1,411.80 pence after the discount airline reported a decline in seating capacity and passenger count in July.
Japan's Nikkei Plunges 6%, Largest Single-day Decline In 36 Years
Akira Ito
02 Aug, 2024
Tokyo
Stocks in Tokyo plunged the most in the last four decades after key economic data in the U.S. stoked fears of a recession.
The Nikkei 225 stock average declined 5.8%, and the Topix index plunged 6% amid a global sell-off after weak U.S. manufacturing and labor market data.
The Nikkei 225 drop on Friday was only surpassed by the fall on Black Monday of October 1987, when the index plunged by 3,836.48 points.
Diverging monetary policy and the yen's weakness contributed to market jitters, driving hedge funds to sell their positions.
Investors shifted their attitude to the growing possibilities of a U.S. recession after weekly initial jobless claims approached a one-year high, unit labor cost increases slowed to 0.5% in the second quarter, and factory activities shrank at a faster pace for the third month in a row in July.
The Bank of Japan's hawkish shift also contributed to market jitters, and the yen rebounded to 148.67 against the U.S. dollar.
The unwinding of the speculative trade, where hedge funds borrow in the yen and lend in the U.S. dollar or the euro, also contributed to a sharp reversal in the sentiment.
The Bank of Japan unexpectedly lifted its policy rate to 0.25% from a range between zero and 0.1%, surprising market watchers, as policymakers responded to political pressure after the yen sank to 162 against the yen.
Japan Stock Movers
The Nikkei 225 dropped to the lowest level since January 22, and the Topix index declined to the level last seen at the end of January.
The Nikkei 225 stock average dropped 5.8% to 35,909.70, and the Topix index declined 6.2% to 2,537.60.
Financial, chipmakers, industrial and vehicle exporters, and technology stocks were among the leading decliners in Friday's trading.
Tokyo Electron, Advantest, Screen Holdings, and Lasertec plunged between 14% and 9%.
Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, and Mizuho Financial declined between 11% and 13%.
The largest trading companies, or sogo shosha, Marubeni, Mitsubishi, Mitsui, and Itochu, declined between 11% and 14%.
Konami Group Corp. jumped 2.8% to ¥11,420.0 after the gaming company reported better-than-expected quarterly results in the fiscal first quarter ending in June.
Revenue increased 24% to 90 billion yen, and net income advanced 43% to 19.2 billion yen from a year ago, respectively.
The company estimated fiscal year 2025 revenue of 380 billion yen, lower than the previously estimated 393.8 billion yen, and net income of 59.5 billion yen, lower than the previous estimate of 66.34 billion yen.
China Indexes Extend Weekly Losses Amid Global Sell-off
Li Chen
02 Aug, 2024
Hong Kong
Stocks in Shanghai and Hong Kong dropped sharply and extended losses to the third week in a row amid a global market sell-off.
The Hang Seng index declined more than 2% and the CSI 300 index dropped nearly 1% after the U.S. economy data raised concerns about the health of the U.S. economy.
The two widely held indexes nearly wiped out this year's gains as investors shift focus to the recession and turn risk-averse amid rising geopolitical uncertainty.
Factory activities contracted for the third month in a row in July, and weekly initial jobless claims approached a one-year high at the end of the last week, the latest U.S. economic data suggested.
Market indexes were also under pressure after Hong Kong Land reported a sharp jump in losses in its first half, stoking fears of a protracted property market slump.
Investors stayed on the sidelines for the third week in a row amid persistent China deflation worries, a rising tide of capital outflows, and Beijing's reluctance to stimulate the economy amid faltering consumer confidence.
China Stock Movers
The Hang Seng index declined 2.3% to 16,915.69, and the CSI 300 index dropped 0.9% to 3,387.10.
Hong Kong Land Holdings decreased 1.3% to HK$3.20 after the residential property developer reported a net loss in the first half that jumped 150% amid a protracted property downturn in Hong Kong and the mainland.
Net loss expanded to US$833 million from US$333 million, reflecting a non-cash property valuation adjustment.
The underlying loss was US$7 million, excluding the non-cash provision of US$295 million for property development projects in mainland China, compared to US$288 million.
The company plans to pay an interim dividend of US$6 per share, matching the payout in the previous year.
China Vanke declined 1.5% to HK $4.05, China Resources Land decreased 2% to HK $22.20, and Henderson Land Development was unchanged at HK $21.90.
India Movers: Infosys, ITC, Tata Motors, Zomato
Arun Goswami
02 Aug, 2024
Mumbai
India indexes plunged as much as 1% and halted an 8-week rally following a global market sell-off.
World markets declined after key manufacturing and labor market data in the U.S. raised the prospect of a recession in the world's largest economy.
The Sensex index increased by 0.8% to 81,212.63, and the Nifty index fell by 0.8% to 24,812.65.
On the Mumbai stock exchange, 177 stocks traded at their 52-week highs, and 17 stocks traded at their 52-week lows.
Zomato rose 12.% to ₹262.66 after the delivery service company reported a jump in its June quarter revenue and earnings.
Revenue increased 74% to ₹4,206, and net income soared multi-fold to ₹253 crore from ₹2 crore a year ago, respectively.
Net income increased 44.5% from ₹175 crore in the previous quarter.
Tata Motors declined 3.9% to ₹1,106.20 despite the company reporting revenue and earnings matching market expectations.
Consolidated revenue increased 6% to 1.08 lakh crore from 1.02 lakh crore, and net income advanced 74% to 5,566 crore from 3,203 crore a year ago, respectively.
The company's board also approved the spin-off of its UK-based JLR division as a separate company over the next 12 to 15 months.
Revenue at its JLR division rose 5.4% to £7.3 billion, but its operating margin slipped 50 basis points to 15.8%.
ITC declined 1.1% to ₹488.55 after the diversified conglomerate reported a decline in earnings in the June quarter.
Consolidated revenue increased 7.5% to ₹20,029 crore from ₹18,639.5 crore, and net income declined 0.3% to ₹5,091 crore from ₹5,104 crore a year ago, respectively.
Infosys declined 1.3% to ₹1,829.90 after the Karnataka state withdrew its preliminary request for goods and service tax for the period between 2017 and 2022, demanding 32,403 crore.
Europe Movers: Arcelor Mittal, BMW, Barclays, Credit Agricole, Daimler Truck, Deutsche Post, Rolls Royce, Societe Generale, Smith & Nephews
Inga Muller
01 Aug, 2024
Frankfurt
Arcelor Mittal declined 4.5% to €19.99 after the French steelmaker reported a 73% decline in second quarter earnings.
BMW decreased 3% to €83.20, and the German luxury automaker reported a decline in revenue, earnings, and deliveries in the second quarter. The company estimated a slight decline in fiscal year earnings.
Revenue in the second quarter declined 0.7% to Є36.94 billion, net income fell 8.6% to Є2.71 billion from Є2.96 billion, and earnings per share fell 5.5% to Є4.15 from Є4.39 a year ago.
Daimler Truck declined 3.2% to €34.60 after the German truck maker cut its fiscal-year annual outlook.
Deutsche Post dropped 6.3% to €38.66 after the international parcel delivery company reported second-quarter results.
Revenue increased 2.7% to €20.6 billion from €20.1 billion, operating income declined 24% to €744 million from €978 million, and diluted earnings per share fell to 63 cents from 80 cents a year ago.
Societe Generale declined 9% to €21.83 after the French bank cut its annual outlook for its domestic retail activities.
Credit Agricole declined 0.4% to €13.97 after the French lender posted a decline in second-quarter profit.
Smith & Nephews advanced 6.8% to 1,199.0 pence after the UK-based prosthetic device maker reported better-than-expected first-half results.
Barclays PLC declined 3.6% to 225.32 pence after the UK-based bank reported a decline in profit in the second quarter.
Rolls Royce jumped 9.4% to 491.88 pence after the British aerospace and defense company reported higher profit, raised its annual income outlook, and held out for dividend reinstatement later in the year.
Revenue in the first half increased to £8.2 billion from £7.2 billion, and underlying profit rose to £1.2 billion from £673 million a year ago, respectively.
The company revised its annual profit range to between £2.1 billion and £2.3 billion from the previous estimate of between £1.7 billion and £2.0 billion.
The maker of engines for Boeing and Airbus said it plans to reinstate a 30% dividend pay-out ratio of after-tax underlying profit.
U.S. Stocks Turn Volatile After Factory Activities Contracts and Jobless Claims Rise
Barry Adams
01 Aug, 2024
New York City
Stocks on Wall Street turned volatile following sharp gains in the previous session as investors reviewed the latest batch of earnings and key economic data.
The S&P 500 index and the Nasdaq Composite advanced 0.7% after Meta Platforms reported strong earnings and offered an upbeat outlook, but indexes turned down after the release of the manufacturing survey.
The ISM Manufacturing PMI eased to 46.6 in July from 48.5 in the previous month, reflecting the sharpest decline in activities since November 2023.
Market indexes jumped sharply in the afternoon on Wednesday after the Federal Reserve held the Fed Funds rate range between 5.25% and 5.50% for the eighth time in a row.
Fed Chair Jerome Powell signaled that the central bank could see a possible scenario where rate cuts could begin as early as September if inflation continues to be on the downward slide and the employment market remains healthy.
“If that test is met, a reduction in our policy rate could be on the table as soon as the next meeting in September,” Powell said.
Traders bid up stocks after Powell's comments and factored in that at least two rate cuts are likely in the fourth quarter.
Weekly Unemployment Claims Advance to One-year high
Initial jobless claims rose last week, and a measure of labor costs rose less than expected in the second quarter, according to economic data released Thursday.
First-time jobless claims increased from 14,000 to 249,000 for the week ending July 27, the Labor Department reported Thursday.
Initial weekly claims were the highest since August 2023, as the job market tightened over the last year.
Continuing claims, which run one week behind, rose by 33,000 to 1.877 million in the week ending July 20.
Unit labor costs Increase Slows In Second Quarter
Unit labor costs in the nonfarm business sector increased at an annual pace of 0.9% in the second quarter, following the downwardly revised 3.8% in the first quarter, the Bureau of Labor Statistics reported Thursday.
Unit labor costs reflect a 3.3% increase in wages and a 2.3% rise in productivity.
Over the last four quarters, unit labor costs increased by 0.5%, the lowest rate of increase since the third quarter of 2019.
Unit labor costs in the manufacturing sector increased by 3.2%, and in the business sector, they rose by 2.2%.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.7% to 5,559.79, the Nasdaq Composite gained 0.8% to 17,753.70, and the Russell 2000 index rose 0.2% to 2,258.31.
The yield on 2-year Treasury notes edged lower to 4.24%, 10-year Treasury notes decreased to 4.0%, and 30-year Treasury bonds decreased to 4.29%.
WTI crude oil increased $0.44 to $78.35 a barrel, and natural gas prices edged up 5 cents to $2.09 a thermal unit.
Gold increased by $4.56 to $2,450.65 an ounce, and silver declined by $0.06 to $28.94.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.25.
U.S. Stock Movers
Meta Platforms soared 7.6% to $510.66 after the parent company of Facebook and WhatsApp reported higher-than-expected quarterly results.
The company guided third quarter revenue between $38.5 billion and $41 billion and capital expenditure for the full year between $37 billion and $40 billion, higher than the previous range between $35 billion and $40 billion.
Arm Holdings PLC declined 8.3% to $132.30 after the UK-based advanced chip designer's fiscal second quarter earnings per share outlook of 23 cents to 27 cents fell short of market expectations.
The company guided fiscal second quarter revenue between $780 million and $830 million, and non-GAAP diluted earnings per share between 23 cents and 27 cents.
Ferrari NV increased 4% to $429.41, and the luxury sports car maker reported better-than-expected quarterly results and raised its full-year outlook.
Sports car shipment increased by 2.7% from a year ago to 3,484.
Ferrari estimated revenue in the financial year at Є6.55 billion from the previous estimate of Є6.4 billion, adjusted earnings before interest and taxes at Є1.82 billion from Є1.77 billion, and adjusted earnings per share at Є7.90 from Є7.50.
Teladoc Health declined 18.7% to $7.67 after the online health service provider reported weaker-than-expected quarterly revenue in the second quarter.
The company recorded a noncash goodwill impairment charge of $790 million, reflecting changes in future cash flows related to the company's BetterHelp segment.
Microsoft Corp. declined 1.1% to $418.35 after the software company reported better-than-expected quarterly results, but cloud segment growth fell short of market expectations.
Azure and cloud services revenue increased 29%, Microsoft cloud revenue rose 21%, Xbox content and services revenue soared 61%, and search and news advertising revenue advanced 19%.
Advanced Micro Devices jumped 4.2% to $144.48 after the advanced chip maker reported better-than-expected quarterly results.
U.S. Movers: AMD, Arm Holdings, Meta Platforms, Microsoft, Teladoc
Scott Peters
01 Aug, 2024
New York City
Meta Platforms soared 7.6% to $510.66 after the parent company of Facebook and WhatsApp reported higher-than-expected quarterly results.
Revenue in the second quarter increased 22% to $39 billion from $32 billion, net income soared 73% to $13.5 billion from $7.8 billion, and diluted earnings per share advanced to $5.16 from $2.98 a year ago.
The company guided third quarter revenue between $38.5 billion and $41 billion and capital expenditure for the full year between $37 billion and $40 billion, higher than the previous range between $35 billion and $40 billion.
Arm Holdings PLC declined 8.3% to $132.30 after the UK-based advanced chip designer's fiscal second quarter earnings per share outlook of 23 cents to 27 cents fell short of market expectations.
Revenue in the fiscal first quarter ending in June soared 39% to $939 million, net income more than doubled to $223 million from $105 million, and diluted earnings per share rose to 21 cents from 10 cents a year ago.
The company guided fiscal second quarter revenue between $780 million and $830 million, and non-GAAP diluted earnings per share between 23 cents and 27 cents.
Teladoc Health declined 18.7% to $7.67 after the online health service provider reported weaker-than-expected quarterly revenue in the second quarter.
Revenue in the second quarter decreased 2% to $642.4 million, net loss increased to $837.7 million from $65.2 million, and diluted loss per share expanded to $4.92 from 40 cents a year ago.
The company recorded a noncash goodwill impairment charge of $790 million, reflecting changes in future cash flows related to the company's BetterHelp segment.
BetterHelp segment revenue fell 9% from a year ago to $265 million, with an adjusted EBITDA margin of 9%.
Microsoft Corp. declined 1.1% to $418.35 after the software company reported better-than-expected quarterly results, but cloud segment growth fell short of market expectations.
Revenue in the fiscal fourth quarter ending in June increased 15% to $64.7 billion from $56.2 billion, net income advanced 10% to $22.0 billion from $24.3 billion from $20.8 billion, and diluted earnings per share rose 10% to $2.95 from $2.69 a year ago.
Azure and cloud services revenue increased 29%, Microsoft cloud revenue rose 21%, Xbox content and services revenue soared 61%, and search and news advertising revenue advanced 19%.
Advanced Micro Devices jumped 4.2% to $144.48 after the advanced chip maker reported better-than-expected quarterly results.
Revenue in the second quarter increased 9% to $5.8 billion from $5.4 billion, net income jumped nearly ninefold to $265 million from $27 million, and diluted earnings per share advanced to 16 cents from 2 cents a year ago.
The company guided revenue in the third quarter to increase 16% from a year ago at $6.7 billion with a band of $300 million and a non-GAAP gross margin of 53.5%.
Europe Movers: adidas, Airbus, Danone, GSK, HSBC, Ricardo, Schneider Electric, Siemens Helathineers, TeamViewer
Inga Muller
31 Jul, 2024
Frankfurt
Positive earnings announcements lifted market sentiment in Europe, and benchmark indexes rebounded.
Consumer price inflation in the eurozone accelerated after elevated service inflation contributed to overall inflation.
The DAX index increased by 0.5% to 18,495.32; the CAC-40 index rose by 1.3% to 7,568.71; and the FTSE 100 index increased by 1.2% to 8,374.17.
The yield on 10-year German bonds edged lower to 2.32%, French bonds inched lower to 3.02%, the UK gilts inched lower to 4.01%, and Italian bonds decreased to 3.66%.
Siemens Healthineers declined 6.6% to €49.70, and the medical technology company reported lower-than-expected quarterly earnings and sales.
HSBC Holdings increased 3.3% to 699.25 pence after the UK- and Hong Kong-based bank reported stable earnings and announced a $3 billion stock buyback plan.
GSK plc declined 2% to 1,511.77 pence after the UK-based pharmaceutical company reported second-quarter net income attributable to shareholders declined to £1.17 billion from £1.62 billion a year ago.
TeamViewer SE surged 12.1% to €12.36 after the remote connectivity solution provider reported better-than-expected second quarter results and reiterated its annual outlook.
adidas AG increased 0.2% to €237.0 after the sportwear maker backed its second quarter preliminary results and reiterated its annual outlook.
Schneider Electric SE increased 3.2% to €223.05, and the French energy management and automation company lifted its annual outlook and reported better-than-expected first-half results.
Airbus jumped 4.2% to €139.14, and the aviation company reported better-than-expected first-half results.
Danone SA jumped 3.6% to €60.96, and the French yogurt maker said revenue in the second quarter rose more than expected.
Ricardo plc climbed 4.2% to 512.0 pence after the engineering and environmental consulting firm said the company's performance is in line with management expectations.
Revenue in the year ending in June increased 7% from a year ago, and new order inflow declined 5% to £495 million.
New orders compared to the previous year, because of the timing of new large orders in its automotive and industrial orders and new program wins in the prior year.