Market Update
Positive Earnings Supported Market Rebound In Eurozone; Inflation Accelerated In July
Bridgette Randall
31 Jul, 2024
London
European markets advanced, supported by positive sentiment following a fresh batch of earnings and key economic data.
Benchmark indexes in London, Paris, and Frankfurt advanced, and consumer price inflation in the eurozone unexpectedly rose in July.
Consumer price inflation in the currency union accelerated to 2.6% from 2.5% in June, Eurostat reported Wednesday.
The core rate of inflation, which excludes food, drinks, tobacco, and energy, held steady at 2.9%.
The rise in service inflation dominated overall inflation and eased to 4.% from 4.1% in the previous month.
Among the currency bloc's largest economies, the annual rate of inflation in France and Germany advanced to 2.6% from 2.5% in the previous month, increased in Italy to 1.7% from 0.9%, but eased in Spain to 2.9% from 3.6%.
Europe Indexes and Yields
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%.
The euro edged down to $1.08; the British pound inched lower to $1.282; and the U.S. dollar weakened to 88.01 Swiss cents.
Brent crude decreased $1.85 to $80.09 a barrel, and the Dutch TTF natural gas fell by €0.44 to €39.69 per MWh.
Europe Stock Movers
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.
BOJ Unexpectedly Raises Policy Rate and Announces Bond Tapering Plan
Akira Ito
31 Jul, 2024
Tokyo
Benchmark indexes in Tokyo jumped after the Bank of Japan increased rates for the second time this year.
The Nikkei 225 and the Topix indexes advanced 1.5% after the Bank of Japan raised its key short-term uncollateralized rate to 0.2% from a range between zero and 0.1%.
The central bank lifted its key rate for the second time this year following its previous rate hike in March and the ending of its negative interest rate regime in place since 2016.
"Japan's economic activity and prices have been generally developing in line with the outlook," the Bank of Japan said in a policy statement released after the two-day meeting that ended on Wednesday.
The interest rate move surprised most market participants, as the central bank did not want to encourage excessive currency speculation.
The central bank also announced its plans to taper the monthly government bond purchase program to 3 trillion yen in the first quarter of 2026 from the current monthly purchase of 6 trillion yen.
The Bank of Japan also indicated in a separate statement that policymakers are anticipating core consumer inflation to average 1.9% in the fiscal year 2025 and 2.1% in the fiscal year 2026.
The BoJ policy statement also laid out a case for additional rate hikes in the months ahead, as the central bank plans a gradual increase in rates to reduce the yield gap between the U.S. and Japan.
"Given that real interest rates are at significantly low levels, if the aforementioned outlook for economic activity and prices is realized, the Bank will accordingly continue to raise the policy interest rate and adjust the degree of monetary accommodation," the central bank said in an accompanying statement.
The Japanese yen strengthened 1.5% to 150.18 and rebounded to the level last seen on March 18.
Japan Stock Movers
The Nikkei 225 stock average jumped 1.5% to 39,101.82, and the Topix index advanced 1.5% to 2,794.26.
Mitsubishi UFJ Financial Group soared 4.2% to ¥1,750.0, Mizuho Financial gained 5.2% to ¥3,448.0, and Sumitomo Mitsui Financial added 4.5% to ¥10,915.0.
The Bank of Japan's rate path clarity supported the rise in leading exporters, despite the strengthening of the yen.
Canon, Sony, TDK, and Panasonic rebounded between 1.5% and 3.5%.
Oriental Land declined 5.9% to ¥4,282.0, and the company reported weaker-than-expected quarterly results.
Net sales increased 5.6% to 148.21 billion yen, driven by a 4.2% increase in theme park sales to 121.40 billion yen.
Net income advanced 11% from a year ago to 24.45 billion yen.
The company estimated net sales in the current fiscal year to increase to 684.76 billion yen and net income to rise to 120.52 billion yen.
China Manufacturing Activity Index Contracts Third Consecutive Month, HSBC Announces Stock Buyback
Li Chen
31 Jul, 2024
Hong Kong
Benchmark indexes in Shanghai and Hong Kong soared after manufacturing activities contracted for the third month in a row.
The Hang Seng and the CSI 300 indexes jumped 2% amid heightened speculation that policymakers may announce more specific measures to revive consumer confidence and market-supportive measures.
In yesterday's trading, benchmark indexes dropped sharply after the Politburo statement offered vague support for economic reform but lacked specific details.
However, the latest weakness in manufacturing activities supports the argument that policymakers will announce more support in the second half.
The PMI manufacturing index in July eased to 49.4 from 49.5 in June, the National Bureau of Statistics reported Wednesday.
A reading below indicates contraction in activities, and one above shows an increase.
Manufacturing activities contracted for the third month in a row amid weak domestic demand growth.
China's non-manufacturing PMI Index, which tracks service activities, dropped to an 8-month low of 50.2 in July from 50.4 in June, the official data showed.
The selling price for services dropped for the tenth month in a row, but the rate of decrease was the softest in three months.
China Stock Movers
The Hang Seng index is set to close down more than 2% in July and extend losses to more than 11% from the peak reached in May, after investors lowered stimulus expectations despite fragile economic recovery.
The Hang Seng index soared 2% to 17,348.39, and the CSI 300 index advanced 2.1% to 3,438.78.
HSBC increased 3.2% to HK$68.95, and the financial services bank said it set aside $3 billion for a stock repurchase plan and announced better-than-expected quarterly results.
Hang Seng Bank declined 4.2% to HK$97.50 after the bank trimmed its interim dividend from HK$0.18 to HK$0.12, payable on September 5 to shareholders on record on August 15.
Hang Lung Properties rose 3.2% to HK $5.82 and rebounded from the previous day's loss of 15% following a sharp decline in earnings.
Hang Lung, one of the largest developers in Hong Kong, reported that net income in the first half plunged 56% to HK $1.06 billion, or $136 million, and revenue rose 17% to HK $6.11 billion.
The earnings dropped in the period largely because of a reversal in the fair value of its properties to a loss of HK $634 million from a gain of HK $251 million.
The company also cited weak customer traffic at its Plaza 66 mall in Shanghai and a decline in leasing revenue because more shoppers prefer to shop abroad, taking advantage of the yen's weakness.
Zhejiang Liju Thermal Equipment, a maker and distributor of heat equipment, soared more than 50% in its first trading day in Shanghai to 61.05 yuan.
Liju Thermal priced its initial public offering at 40 yuan per share.
India Movers: Dixon Technologies, GAIL, Indus Towers, Macrotech Developers, Torrent Power
Arun Goswami
31 Jul, 2024
Mumbai
Stocks in Mumbai traded higher amid positive earnings from leading corporations.
Crude oil prices dropped to a seven-month low, and the Indian rupee held steady near a record low.
The Sensex index increased by 0.2% to 81,607.96, and the Nifty index rose by 0.2% to 24,911.0.
On the Mumbai stock exchange, 181 stocks traded at their 52-week highs, and 7 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.04%, and the Indian rupee edged lower to ₹83.71 against the U.S. dollar.
Torrent Power increased 5.6% to ₹1,694.10, and the electric power producer reported a surge in profit in the June quarter.
Revenue increased 23.3% to ₹9,033.7 crore, and net income soared 87.2% to ₹996.3 crore from a year ago, respectively.
The company said higher wholesale power sales from gas-power-based plants led to higher sales to commercial clients.
Indus Towers decreased 0.8% to ₹443.70, and the company reported a slight increase in profit in the June quarter.
Consolidated revenue advanced 4% to ₹7,439.4 crore from ₹7,132.4 crore, and net income rose 42% to ₹1,925.9 crore from ₹1,347.9 crore a year ago.
Dixon Technologies jumped 2.2% to ₹12,249.95, and the electronics manufacturing services provider reported a surge in revenue and earnings in the June quarter.
Consolidated revenue more than doubled to ₹6,579.80 crore from ₹3,271.50 crore, and net income advanced 94.3% to ₹133.7 crore from ₹68.8 crore a year ago.
GAIL India increased 4.3% to ₹244.73, and the natural gas transmission company said profit in the June quarter advanced.
Consolidated net revenue advanced to ₹34,821.9 crore from ₹32,848.8 crore, and net profit soared 77.5% to ₹3,183 crore from ₹1,793 crore a year earlier.
The company said the increase in net profit was supported by higher transmission and domestic marketing volumes and an improved gas marketing margin.
Macrotech Developers increased 0.4% to ₹1,333.0, and the residential real estate developer reported sharp gains in revenue and earnings in the June quarter.
Revenue increased 76% to ₹2,850 crore, and net income soared 166% to ₹476 crore from a year ago, respectively.
U.S. Movers: F5, JetBlue, Merck, Pfizer, Woodward
Scott Peters
30 Jul, 2024
New York City
JetBlue jumped 21.6% to $7.21 after the regional airline unexpectedly reported profit in its latest quarter.
Procter & Gamble plunged 6% to $159.73, and the household products maker reported weaker-than-expected revenue due to weak sales in China.
Merck & Company dropped 8.6% to $116.61 after the pharmaceutical company reported stronger-than-expected quarterly results, but the company's annual guidance fell short of investor expectations.
Pfizer declined 2.9% to $116.61 despite the pharmaceutical company reporting better-than-expected second quarter results and lifting its annual outlook.
F5 Inc. soared 10.7% to $196.71 after the cyber security network management software company reported better-than-expected revenue and earnings in the fiscal third quarter.
Woodward Inc. dropped 16.5% to $152.91, and the aerospace company's revenue in the fiscal third quarter of $847.7 million fell short of market expectations.
June Job Openings Held Steady, Hires and Total Separations Change Little
Brian Turner
30 Jul, 2024
Washington, D.C.
Job openings in June edged slightly lower to 8.18 million from 8.23 million in May, according to the Job Opening and Labor Turnover Survey by the U.S. Bureau of Labor Statistics.
The hiring levels declined by 554,000 over the year to 5.3 million, and the hire rate as a share of the workforce eased to 3.4%, the lowest since October 2013, excluding pandemic-era layoffs in April 2020.
The number of people quitting their jobs eased to 3.3 million, the lowest since November 2020.
Job openings increased in accommodation and food services by 120,000 and in state and local government, excluding education rose 94,000.
The number of job openings decreased in durable goods manufacturing by 88,000 and in federal government by 62,000.
May employment data were also revised sharply after the statistical agency reviewed additional reports from businesses and government.
The number of job openings for May was revised up by 90,000 to 8.2 million, the number of hires was revised down by 101,000 to 5.7 million, and the number of total separations was revised down by 25,000 to 5.4 million.
Within separations, the number of quits was revised down by 56,000 to 3.4 million, and the number of layoffs and discharges was revised up by 24,000 to 1.7 million.
U.S. Major Averages Drop as Tech Selloff Deepens, Nvidia Drops 6%
Alexander Garcia
30 Jul, 2024
Miami
U.S. indexes erased early gains, and tech-heavy indexes dropped sharply after investors sold artificial intelligence stocks.
The S&P 500 index and the Nasdaq Composite fluctuated around the flatline in early trading but accelerated the decline in the afternoon following the 6% plunge in Nvidia.
The sudden and swift decline in Nvidia drove down other chip stocks, lowering the Nasdaq and the S&P 500 index.
Nvidia stock is down more than 20% from its high of $135 on July 10 as investors reassess the surge in artificial intelligence-linked stocks.
Earnings dominated market sentiment amid a flood of quarterly results, including updates from Merck, Pfizer, JetBlue, F5, Woodward, and Procter & Gamble.
Microsoft, Starbucks, and AMD are scheduled to release their quarterly results after the close of regular market trading hours.
The Federal Reserve is also scheduled to announce its monetary policy decisions on Wednesday, and investors are widely anticipating the central bank to hold Fed Funds rates steady between 52.5% and 5.50%.
On the economic front this week, investors are also awaiting the release of June's nonfarm payroll data.
Job openings in June edged slightly lower to 8.18 million from 8.23 million in May, according to the Job Opening and Labor Turnover Survey released by the U.S. Bureau of Labor Statistics.
The hiring levels declined by 554,000 over the year to 5.3 million, and the hire rate as a share of the workforce eased to 3.4%, the lowest since October 2013, excluding pandemic-era layoffs in April 2020.
The number of people quitting their jobs eased to 3.3 million, the lowest since November 2020.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.8% to 5,421.80, the Nasdaq Composite declined 1.5% to 17,118.65, and the Russell 2000 index fell 0.1% to 2,232.35.
The yield on 2-year Treasury notes edged lower to 4.38%, 10-year Treasury notes decreased to 4.16%, and 30-year Treasury bonds decreased to 4.41%.
WTI crude oil decreased $0.65 to $75.15 a barrel, and natural gas prices edged up 20 cents to $2.10 a thermal unit.
Gold increased by $11.04 to $2,392.32 an ounce, and silver rose by $0.27 to $28.09.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.75.
U.S. Stock Movers
JetBlue jumped 21.6% to $7.21 after the regional airline unexpectedly reported profit in its latest quarter.
Procter & Gamble plunged 6% to $159.73, and the household products maker reported weaker-than-expected revenue due to weak sales in China.
Merck & Company dropped 8.6% to $116.61 after the pharmaceutical company reported stronger-than-expected quarterly results, but the company's annual guidance fell short of investor expectations.
Pfizer declined 2.9% to $116.61 despite the pharmaceutical company reporting better-than-expected second quarter results and lifting its annual outlook.
F5 Inc. soared 10.7% to $196.71 after the cyber security network management software company reported better-than-expected revenue and earnings in the fiscal third quarter.
Woodward Inc. dropped 16.5% to $152.91, and the aerospace company's revenue in the fiscal third quarter of $847.7 million fell short of market expectations.
European Markets Struggled to Advance, Steady GDP Growth In Eurozone
European markets were mixed as investors reviewed a slew of corporate results and key economic data and awaited monetary policy decisions from major central banks.
Benchmark indexes in London, Paris, and Frankfurt traded around flatline ahead of the U.S. Federal Reserve's monetary policy decisions on Wednesday.
The Euro Area gross domestic product expanded 0.3% on quarter in the second quarter, matching the rate in the first quarter, Eurostat reported Tuesday.
On an annual basis, seasonally adjusted GDP in the second quarter rose by 0.6% and by 0.7% in the eurozone and European Union and accelerated from 0.5% and 0.6% in the first quarter, respectively.
Seasonally adjusted GDP from a year ago contracted in Germany by 0.1%, rose by 2.9% in Spain, 1.1% in France, and expanded 0.9% in Italy.
In a separate report released by the French statistical office INSEE, GDP in the second quarter rose 0.3% sequentially and matched the upwardly revised rate in the first quarter.
Total production rebounded in the second quarter to 0.5% from a decline of 0.1%, and household consumption was stable after shrinking 0.1% in the previous quarter, respectively.
Europe Indexes and Yields
The DAX index increased by 0.5% to 18,411.18; the CAC-40 index rose by 0.4% to 7,474.94; and the FTSE 100 index decreased by 0.2% to 8,274.11.
The yield on 10-year German bonds edged higher to 2.35%, French bonds inched higher to 3.06%, the UK gilts inched higher to 4.05%, and Italian bonds increased to 3.75%.
The euro edged lower to $1.08; the British pound inched lower to $1.284; and the U.S. dollar weakened to 88.59 Swiss cents.
Brent crude decreased $0.92 to $78.85 a barrel, and the Dutch TTF natural gas fell by €5.38 to €39.25 per MWh.
Europe Stock Movers
Standard Chartered Bank increased 6.2% to 771.60 pence after the Asia-focused financial services company reported stronger-than-expected second quarter results.
The bank also announced a $1.5 billion stock repurchase plan.
BP plc rose 1.3% to 458.85 pence after the energy company reported better-than-expected second quarter profit.
The company reiterated its plans to buyback its stocks and increase its dividend.
Revenue in the second quarter declined to $48.2 billion from $49.9 billion, net income attributable to shareholders swung to a loss of $129 million from a profit of $1.8 billion, and diluted earnings per share were a loss of 0.78 cents compared to a profit of 10 cents.
Diageo plc dropped 6.6% to 2,380.0 pence after the spirits and alcohol drink distributor reported lower-than-expected annual profit.
Net sales declined 1.4% to $2.03 billion from $20.6 billion, net income attributable to shareholders fell to $3.9 billion from $4.4 billion, and basic earnings per share fell to $1.73 from $1.96 a year ago.
Ocado Group declined 6.4% to 404.80 pence after the UK-based online supermarket and technology group extended its debt maturity to fund its growth plans.
Japan's Jobless Rate Eased In June, Komatsu Reiterated Outlook
Stocks in Tokyo struggled to find a clear direction as the Bank of Japan kicked off its two-day policy meeting.
The Nikkei 225 increased by 0.4% and the Topix declined by 0.2% as investors debated the future rate path amid growing calls for the central bank to provide clarity about its plan to shore up the yen.
The Bank of Japan is expected to leave its key lending rate range unchanged between zero and 0.1%, despite growing calls for a rate hike and demands to support the faltering yen.
The yen closed at 154.88 against the U.S. dollar in Tokyo trading as investors dialed down expectations of an imminent rate cut.
Policymakers are also expected to provide clarity about the central bank's plans to taper the government bond purchase program over the next two years.
On the economic front, Japan's unemployment rate unexpectedly declined to 2.5% in June, an improvement from 2.6% in May, according to the Ministry of Internal Affairs and Communications reported Tuesday.
The number of employed people increased from 370,000 to 68.2 million, a record high since record-keeping began in 1953.
The total number of jobless fell 3.3% to a seasonally adjusted 1.76 million, as voluntary separations declined in the month.
The job availability ratio eased by 0.01 percentage points to 1.23, the third monthly decline, according to a separate report released by the Ministry of Health, Labor, and Welfare.
The latest update showed that there were 123 jobs available for every 100 job seekers.
Japan Movers
The Nikkei 225 stock average increased by 0.4% to 38,525.95, and the Topix decreased by 0.2% to 2,754.45.
Advantest Corp. increased 0.7% to ¥5,772.0, Tokyo Electron advanced 0.8% to ¥28,880.0, and Screen Holdings rebounded from a 0.5% loss to close unchanged at ¥11,810.0.
Disco Corp. declined 1.7% to ¥46,750.0, Rakuten Group fell 1.6% to ¥889.70, and Nippon Electric Glass decreased 3.7% to ¥3,528.0.
Komatsu dropped 4.8% to ¥4,304.0 despite the construction machinery maker reporting an increase in revenue and earnings in the fiscal first quarter ending in June.
Sales in the quarter increased to 959.8 billion yen from 899.5 billion yen, net income rose to 109.7 billion yen from 105.4 billion yen, and diluted earnings per share rose to 116.47 yen from 111.48 yen a year ago.
The company reiterated full-year sales to ease 0.1% to 3.86 trillion yen, net income to fall 11.8% to 347 billion yen, and diluted earnings per share to 366.81 yen.
The company estimated the full-year dividend to remain unchanged at 167 yen per share.
China Stocks Reverse Previous Day's Gains Ahead of Factory Activity Data
Investors sat on the sidelines ahead of the release of key economic data on Wednesday and the tepid policy response.
Market sentiment was reversed after indexes soared as much as 2% following the rebound in corporate profits for industrial enterprises in the period between January and June.
The Hang Seng and the CSI 300 indexes declined around 1% ahead of the release of factory activity surveys.
The official manufacturing purchasing managers' index is expected to ease to 49.4 in June from 49.5 in May, largely because of weak domestic demand growth.
The Hang Seng index is set to close down for the second month in a row as investors dial down expectations of market-supportive measures from policymakers.
China FDI Plunged 29% In the First Half
Foreign direct investment in China dropped 29.1% from a year ago to 498.9 billion yuan in the first six months of the year, according to the ministry of commerce.
High-tech manufacturing increased 2.4 percentage points to 12.8% of foreign investments; medical equipment and instrument investments soared 87.5%; and professional and technical services investments jumped 43.4%.
Germany accounted for 18.1% of total foreign investment, followed by Singapore with 10.5%.
China Stock Movers
The Hang Seng index declined 1.3% to 17,022.25, and the CSI 300 index dropped 0.9% to 3,359.23.
Tech stocks, electric vehicle makers, and financial stocks led the decline in Hong Kong.
Tencent Holdings declined 1.4% to HK $353.40, Alibaba Group decreased 0.2% to HK $76.40, and Baidu increased 0.3% to HK $87.05.
Wuxi Apptec increased 4% to HK $29.85, and the biotech company said net profit declined 20% to 4.2 billion yuan.
Wuxi Biologics dropped 0.8% to HK $10.48.
Li Auto decreased 0.3% to HK $73.65, BYD dropped 3.3% to HK $223.60, and Xpeng declined 3.6% to HK $31.30.
China Mengniu Dairy Company dropped 6.6% to HK $12.60, and Haidilao International dropped 3.3% to HK $12.18.
U.S. Indexes Wavered as Investors Weigh Latest Earnings Ahead of Fed's Rate Decisions
Barry Adams
30 Jul, 2024
New York City
U.S. indexes wavered as investors reviewed a fresh batch of earnings and awaited the Fed's rate decisions on Wednesday.
The S&P 500 index and the Nasdaq Composite fluctuated around the flatline, but the small company-focused Russell 2000 index added nearly 1%.
Earnings dominated market sentiment amid a flood of earnings, including results from Merck, Pfizer, JetBlue, F5, Woodward, and Procter & Gamble.
Investors also looked forward to earnings after the close today from Microsoft, Starbucks, and AMD.
On the economic front this week, investors are also awaiting the release of June's nonfarm payroll data and reviewing the JOLT report indicating labor market conditions.
Job openings in June edged slightly lower to 8.18 million from 8.23 million in May, according to the Job Opening and Labor Turnover Survey by the U.S. Bureau of Labor Statistics.
The Federal Reserve is also scheduled to announce its monetary policy decisions on Wednesday, and investors are widely anticipating the central bank to hold Fed Funds rates steady between 52.5% and 5.50%.
The hiring levels declined by 554,000 over the year to 5.3 million, and the hire rate as a share of the workforce eased to 3.4%, the lowest since October 2013, excluding pandemic-era layoffs in April 2020.
The number of people quitting their jobs eased to 3.3 million, the lowest since November 2020.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.1% to 5,467.97, the Nasdaq Composite declined 0.2% to 17,342.78, and the Russell 2000 index rose 0.9% to 2,255.77.
The yield on 2-year Treasury notes edged lower to 4.38%, 10-year Treasury notes decreased to 4.16%, and 30-year Treasury bonds decreased to 4.41%.
WTI crude oil decreased $0.96 to $74.84 a barrel, and natural gas prices edged up 13 cents to $2.03 a thermal unit.
Gold increased by $6.70 to $2,388.65 an ounce, and silver declined by $0.05 to $27.86.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.75.
U.S. Stock Movers
JetBlue jumped 21.6% to $7.21 after the regional airline unexpectedly reported profit in its latest quarter.
Procter & Gamble plunged 6% to $159.73, and the household products maker reported weaker-than-expected revenue due to weak sales in China.
Merck & Company dropped 8.6% to $116.61 after the pharmaceutical company reported stronger-than-expected quarterly results, but the company's annual guidance fell short of investor expectations.
Pfizer declined 2.9% to $116.61 despite the pharmaceutical company reporting better-than-expected second quarter results and lifting its annual outlook.
F5 Inc. soared 10.7% to $196.71 after the cyber security network management software company reported better-than-expected revenue and earnings in the fiscal third quarter.
Woodward Inc. dropped 16.5% to $152.91, and the aerospace company's revenue in the fiscal third quarter of $847.7 million fell short of market expectations.
Europe Movers: BP plc, Clariant, Covestro, Diego. Standard Chartered Bank
Inga Muller
30 Jul, 2024
Frankfurt
The Euro Area GDP growth rate in the second quarter matched the first quarter, and Spain led the region with an increase of 2.9%. German GDP contracted by 0.1%.
The DAX index increased by 0.5% to 18,399.36; the CAC-40 index rose by 0.4% to 7,471.95; and the FTSE 100 index decreased by 0.1% to 8,282.93.
The yield on 10-year German bonds edged higher to 2.35%, French bonds inched higher to 3.06%, the UK gilts inched higher to 4.05%, and Italian bonds increased to 3.75%.
Standard Chartered Bank increased 6.2% to 771.60 pence after the Asia-focused financial services company reported stronger-than-expected second quarter results.
The bank also announced a $1.5 billion stock repurchase plan.
BP plc rose 1.3% to 458.85 pence after the energy company reported better-than-expected second quarter profit.
The company reiterated its plans to buy back its stocks and increase its dividend.
Revenue in the second quarter declined to $48.2 billion from $49.9 billion, net income attributable to shareholders swung to a loss of $129 million from a profit of $1.8 billion, and diluted earnings per share were a loss of 0.78 cents compared to a profit of 10 cents.
Diageo plc dropped 6.6% to 2,380.0 pence after the spirits and alcohol drink distributor reported lower-than-expected annual profit.
Net sales declined 1.4% to $2.03 billion from $20.6 billion, net income attributable to shareholders fell to $3.9 billion from $4.4 billion, and basic earnings per share fell to $1.73 from $1.96 a year ago.
Ocado Group declined 6.4% to 404.80 pence after the UK-based online supermarket and technology group extended its debt maturity to fund its growth plans.
Clariant AG declined 6.5% to CHF 13.55 after the Swiss chemical company reported a decline in second quarter profit due to lower prices and the company trimmed its annual sales outlook.
Covestro AG increased 1.6% to €54.74 despite the German chemical company lowering the upper end of the full-year earnings estimate.
Revenue in the second quarter declined 0.8% to €3.69 billion from €3.72 billion, net income swung to a loss of €72 million from a profit of €46 million, and earnings per share were a loss of 38 cents from a profit of 24 cents a year ago.
European Markets Struggled to Advance, Steady GDP Growth In Eurozone
Bridgette Randall
30 Jul, 2024
London
European markets were mixed as investors reviewed a slew of corporate results and key economic data and awaited monetary policy decisions from major central banks.
Benchmark indexes in London, Paris, and Frankfurt traded around flatline ahead of the U.S. Federal Reserve's monetary policy decisions on Wednesday.
The Euro Area gross domestic product expanded 0.3% on quarter in the second quarter, matching the rate in the first quarter, Eurostat reported Tuesday.
On an annual basis, seasonally adjusted GDP in the second quarter rose by 0.6% and by 0.7% in the eurozone and European Union and accelerated from 0.5% and 0.6% in the first quarter, respectively.
Seasonally adjusted GDP from a year ago contracted in Germany by 0.1%, rose by 2.9% in Spain, 1.1% in France, and expanded 0.9% in Italy.
In a separate report released by the French statistical office INSEE, GDP in the second quarter rose 0.3% sequentially and matched the upwardly revised rate in the first quarter.
Total production rebounded in the second quarter to 0.5% from a decline of 0.1%, and household consumption was stable after shrinking 0.1% in the previous quarter, respectively.
Europe Indexes and Yields
The DAX index increased by 0.5% to 18,399.36; the CAC-40 index rose by 0.4% to 7,471.95; and the FTSE 100 index decreased by 0.1% to 8,282.93.
The yield on 10-year German bonds edged higher to 2.35%, French bonds inched higher to 3.06%, the UK gilts inched higher to 4.05%, and Italian bonds increased to 3.75%.
The euro edged lower to $1.08; the British pound inched lower to $1.284; and the U.S. dollar weakened to 88.59 Swiss cents.
Brent crude decreased $0.72 to $79.05 a barrel, and the Dutch TTF natural gas fell by €0.32 to €33.55 per MWh.
Europe Stock Movers
Standard Chartered Bank increased 6.2% to 771.60 pence after the Asia-focused financial services company reported stronger-than-expected second quarter results.
The bank also announced a $1.5 billion stock repurchase plan.
BP plc rose 1.3% to 458.85 pence after the energy company reported better-than-expected second quarter profit.
The company reiterated its plans to buyback its stocks and increase its dividend.
Revenue in the second quarter declined to $48.2 billion from $49.9 billion, net income attributable to shareholders swung to a loss of $129 million from a profit of $1.8 billion, and diluted earnings per share were a loss of 0.78 cents compared to a profit of 10 cents.
Diageo plc dropped 6.6% to 2,380.0 pence after the spirits and alcohol drink distributor reported lower-than-expected annual profit.
Net sales declined 1.4% to $2.03 billion from $20.6 billion, net income attributable to shareholders fell to $3.9 billion from $4.4 billion, and basic earnings per share fell to $1.73 from $1.96 a year ago.
Ocado Group declined 6.4% to 404.80 pence after the UK-based online supermarket and technology group extended its debt maturity to fund its growth plans.
Japan's Jobless Rate Eased In June, Komatsu Reiterated Annual Outlook
Akira Ito
30 Jul, 2024
Tokyo
Stocks in Tokyo struggled to find a clear direction as the Bank of Japan kicked off its two-day policy meeting.
The Nikkei 225 increased by 0.4% and the Topix declined by 0.2% as investors debated the future rate path amid growing calls for the central bank to provide clarity about its plan to shore up the yen.
The Bank of Japan is expected to leave its key lending rate range unchanged between zero and 0.1%, despite growing calls for a rate hike and demands to support the faltering yen.
The yen closed at 154.88 against the U.S. dollar in Tokyo trading as investors dialed down expectations of an imminent rate cut.
Policymakers are also expected to provide clarity about the central bank's plans to taper the government bond purchase program over the next two years.
On the economic front, Japan's unemployment rate unexpectedly declined to 2.5% in June, an improvement from 2.6% in May, according to the Ministry of Internal Affairs and Communications reported Tuesday.
The number of employed people increased from 370,000 to 68.2 million, a record high since record-keeping began in 1953.
The total number of jobless fell 3.3% to a seasonally adjusted 1.76 million, as voluntary separations declined in the month.
The job availability ratio eased by 0.01 percentage points to 1.23, the third monthly decline, according to a separate report released by the Ministry of Health, Labor, and Welfare.
The latest update showed that there were 123 jobs available for every 100 job seekers.
Japan Movers
The Nikkei 225 stock average increased by 0.4% to 38,525.95, and the Topix decreased by 0.2% to 2,754.45.
Advantest Corp. increased 0.7% to ¥5,772.0, Tokyo Electron advanced 0.8% to ¥28,880.0, and Screen Holdings rebounded from a 0.5% loss to close unchanged at ¥11,810.0.
Disco Corp. declined 1.7% to ¥46,750.0, Rakuten Group fell 1.6% to ¥889.70, and Nippon Electric Glass decreased 3.7% to ¥3,528.0.
Komatsu dropped 4.8% to ¥4,304.0 despite the construction machinery maker reporting an increase in revenue and earnings in the fiscal first quarter ending in June.
Sales in the quarter increased to 959.8 billion yen from 899.5 billion yen, net income rose to 109.7 billion yen from 105.4 billion yen, and diluted earnings per share rose to 116.47 yen from 111.48 yen a year ago.
The company reiterated full-year sales to ease 0.1% to 3.86 trillion yen, net income to fall 11.8% to 347 billion yen, and diluted earnings per share to 366.81 yen.
The company estimated the full-year dividend to remain unchanged at 167 yen per share.
China Stocks Reverse Previous Day's Gains Ahead of Factory Activity Data
Li Chen
30 Jul, 2024
Hong Kong
Investors sat on the sidelines ahead of the release of key economic data on Wednesday and the tepid policy response.
Market sentiment was reversed after indexes soared as much as 2% following the rebound in corporate profits for industrial enterprises in the period between January and June.
The Hang Seng and the CSI 300 indexes declined around 1% ahead of the release of factory activity surveys.
The official manufacturing purchasing managers' index is expected to ease to 49.4 in June from 49.5 in May, largely because of weak domestic demand growth.
The Hang Seng index is set to close down for the second month in a row as investors dial down expectations of market-supportive measures from policymakers.
China FDI Plunged 29% In the First Half
Foreign direct investment in China dropped 29.1% from a year ago to 498.9 billion yuan in the first six months of the year, according to the ministry of commerce.
High-tech manufacturing increased 2.4 percentage points to 12.8% of foreign investments; medical equipment and instrument investments soared 87.5%; and professional and technical services investments jumped 43.4%.
Germany accounted for 18.1% of total foreign investment, followed by Singapore with 10.5%.
China Stock Movers
The Hang Seng index declined 1.3% to 17,022.25, and the CSI 300 index dropped 0.9% to 3,359.23.
Tech stocks, electric vehicle makers, and financial stocks led the decline in Hong Kong.
Tencent Holdings declined 1.4% to HK $353.40, Alibaba Group decreased 0.2% to HK $76.40, and Baidu increased 0.3% to HK $87.05.
Wuxi Apptec increased 4% to HK $29.85, and the biotech company said net profit declined 20% to 4.2 billion yuan.
Wuxi Biologics dropped 0.8% to HK $10.48.
Li Auto decreased 0.3% to HK $73.65, BYD dropped 3.3% to HK $223.60, and Xpeng declined 3.6% to HK $31.30.
China Mengniu Dairy Company dropped 6.6% to HK $12.60, and Haidilao International dropped 3.3% to HK $12.18.
India Movers: ACC, Adani Total, Colgate-Palmolive, HPCL, PNB Housing
Arun Goswami
30 Jul, 2024
Mumbai
Stocks in Mumbai lacked direction, bond yields edged higher, and the rupee traded near a record low as investors reviewed the latest batch of earnings.
The Sensex index increased by 0.03% to 81,387.72, and the Nifty index rose by 0.5% to 24,847.30.
On the Mumbai stock exchange, 177 stocks traded at their 52-week highs, and 6 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 7.03%, and the Indian rupee edged higher to ₹83.73 against the U.S. dollar.
ACC Ltd. decreased 0.06% to ₹2,602.75, and the company reported a decline in net income in the June quarter.
Revenue in the quarter decreased to ₹5,154.9 crore from ₹5.201.1 crore, and net income fell 22.5% to ₹361.40 crore from ₹466.1 crore a year ago, respectively.
Adani Total Gas Ltd. advanced 0.7% to ₹898.85 after the natural gas distributor reported a jump in revenue and earnings in the June quarter.
Revenue increased 9% to ₹1,237 crore, and net income soared 19.9% to ₹177.1 crore from ₹147.7 crore a year ago, respectively.
Colgate Palmolive soared 6% to ₹3,396.95, and the personal care product maker reported sharply higher net income in the June quarter.
Consolidated revenue increased 13% to ₹1,485.7 crore from ₹1,314.7 crore, and net income advanced 22% to ₹364 crore from ₹273,6 crore a year ago, respectively.
PNB Housing Finance decreased 1.6% to ₹782.05 on a report that the U.S. private equity firm Carlyle is likely to sell its 6.4% stake in the company through a block traded on Tuesday.
HPCL increased 1.3% to ₹385.85, and the company reported a decline in net income because of a weak gross crude oil refining margin.
Consolidated revenue was nearly flat at ₹1.20 lakh crore compared to ₹1.19 lakh crore, and net income plunged 90.6% to ₹633.9 crore from ₹6,765.50 crore a year ago, respectively.
The company's throughput in the quarter increased to 5.76 million tons from 5.4 million tons, and gross refining margin declined to $5.03 per barrel from $7.44 barrels a year ago, respectively.
In the quarter, the company sold 12.07 million tons of energy products in the domestic market compared to 11.43 million tons a year earlier; retail sales outlets increased by 126 to 22,148; and it added nine new LPG distributors, increasing the total to 6,358.
Global Investors Stay Cautiously Optimistic About Rate Decisions and Big Tech Earnings
Alexander Garcia
29 Jul, 2024
Miami
Benchmark indexes on Wall Street lacked direction as investors prepared for key policy decisions from the Federal Reserve, labor market data, and earnings from leading tech companies.
In Monday's trading, the S&P 500 index and the Nasdaq Composite struggled to rise above the flatline amid rate path uncertainties and anxieties about upcoming tech earnings.
In the previous week, the S&P 500 index and the Nasdaq Composite extended losses to the second week in a row as investors rotated into smaller companies and cyclical sectors after Alphabet and Tesla reported weak quarterly results.
Apple, Amazon, Microsoft, Mastercard, Toyota, AMD, Starbucks, Chevron, and Exxon Mobil are scheduled to release their results this week.
Last week, the S&P 500 index declined 0.8% and the tech-heavy Nasdaq Composite dropped 2.1% amid heightened volatility.
This week, U.S. investors are looking forward to monetary policy decisions by the Federal Reserve.
The central bank is likely to keep key lending rates steady for the eighth time in a row, and investors are looking for clues about the rate path and the Fed’s views on the economy.
The U.S. economy is expected to add 185,000 jobs in July, slower than 206,000 in June, while the jobless rate is expected at 4.1% and wage growth is expected at 0.3%.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.5% to 5,483.05, the Nasdaq Composite added 0.6% to 17,473.29, and the Russell 2000 index fell 1.1% to 2,236.21.
The yield on 2-year Treasury notes edged lower to 4.39%, 10-year Treasury notes decreased to 4.17%, and 30-year Treasury bonds decreased to 4.42%.
WTI crude oil increased $1.61 to $75.55 a barrel, and natural gas prices edged up 3 cents to $2.04 a thermal unit.
Gold decreased by $7.86 to $2,378.65 an ounce, and silver declined by $0.25 to $27.68.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.65.
U.S. Stock Movers
McDonald's Corp. jumped 3.7% to $261.28 despite the fast food company reporting weaker-than-expected revenue and earnings in the second quarter.
Consolidated revenue in the second quarter was stable at $6.5 billion, net income declined 12% to $2.0 billion from $2.3 billion, and earnings per share dropped to $2.80 from $3.15 a year ago.
Global comparable sales declined 1.0%, driven by a 0.7% decrease at U.S. stores, and international location segments declined 1.1%.
Mixed Trading In Europe Amid Rising Tensions in the Middle East
European markets advanced in Monday's trading as investors looked ahead to monetary policy decisions from major central banks this week.
However, market enthusiasm was tempered amid rising tensions in the Middle East and an escalation of the war of words between Turkey and Israel.
Israel has been under pressure from the U.S. and other leading nations in the Muslim world for not allowing the passage of humanitarian aid to Gaza and for stepping up illegal land acquisition.
Turkey's President Recep Tayyip Erdogan is also under domestic pressure to show solidarity with Gaza, amid frequent military invasions by the Israeli army.
Amid a busy week of earnings, investors are looking forward to quarterly results from at least 1,500 companies in the U.S. and Europe, including Amazon, Apple, Microsoft, Exxon Mobil, and P&G.
In Europe, the eurozone, Germany, France, Spain, and Italy are set to release their GDP and inflation reports.
Euro Area inflation is expected to ease to 2.3%, but inflation in Germany is likely to hold at 2.2%.
Moreover, the Bank of England is likely to hold its key lending rates, amid rising speculation that policymakers may cut rates for the first time in four years.
In China, investors are looking ahead to the release of the business activities survey in July, which will provide the first economic signals into the third quarter.
Luxury stocks in Paris, Milan, London, and Frankfurt may turn volatile as China struggles to revive flailing consumer confidence amid a protracted property market bubble.
Europe Indexes and Yields
The DAX index decreased by 0.5% to 18,320.67; the CAC-40 index fell by 1.0% to 7,443.84; and the FTSE 100 index advanced by 0.01% to 8,292.35.
In the previous week, the DAX index gained 0.7%, the CAC 40 index fell 1.2%, and the FTSE 100 index advanced 1.4%.
The yield on 10-year German bonds edged higher to 2.34%, French bonds inched higher to 3.04%, the UK gilts inched higher to 4.02%, and Italian bonds increased to 3.68%.
The euro edged lower to $1.08; the British pound inched lower to $1.282; and the U.S. dollar weakened to 88.50 Swiss cents.
Brent crude decreased $1.61 to $79.50 a barrel, and the Dutch TTF natural gas fell by €1.55 to €33.90 per MWh.
Europe Stock Movers
ThyssenKrupp declined 1.7% to €3.51, and the German steel company lowered its 2024 outlook.
Heineken declined 8.6% to €82.92 after the brewer reported lower-than-expected results in the first half of 2024.
Reckitt Benckiser dropped 9.5% to 4,070.0 pence amid potential litigation worries after a U.S. jury found Abbott Laboratories' infant formula had caused a girl to develop a dangerous bowel disease.
China-linked luxury stocks traded down ahead of the release of the factory activities update later in the week.
LVMH declined 1.3% to €654.40, Kering fell 0.2% to €283.55, and Hermes International declined 2.4% to €2,025.0.
Stabilus SE jumped 5.4% to €44.65 after the French industrial control solution provider reiterated its 2024 outlook.
Net income in the fiscal third quarter increased to €24.3 million from €21.7 million a year ago.
Merck KGaA jumped 4% to €165.80 after the pharmaceutical company raised its annual outlook.
Energy stocks advanced after crude oil prices rose amid rising tensions in the Middle East.
Israel stepped up its acquisition of land in the occupied territories, and Turkish Prime Minister Recep Tayyip Erdogan said Turkey could intervene in Israel's war on Gaza and help Palestinians.
Nikkei In Tokyo Soared 2%Tracking Gains On Wall Street
Benchmark indexes in Tokyo soared in a busy week of central bank decisions, and tech stocks led the gainers.
The Nikkei and Topix indexes advanced more than 2% in tracking gains in Friday's trading on Wall Street after an alternative measure of inflation slowed in the U.S.
The decline in inflation strengthened the bets that the Federal Reserve is likely to initiate its rate-cutting program as early as September.
The U.S. Federal Reserve Bank is expected to hold its key lending rates steady for the eighth time in a row at the end of the meeting on Wednesday.
Investors were cautious ahead of the Bank of Japan's monetary policy decisions on Thursday, and traders are anticipating that the central bank will increase its short-term lending rate by 10 basis points to 0.1%.
The Bank of Japan is expected to announce a tapering of its government bond purchase program from six trillion yen a month to as low as three trillion yen.
The yen continued its rebound and traded at 153.69 against the U.S. dollar ahead of the Bank of Japan's decisions.
Investors are worried that the yen could weaken to 165 against the yen if the central bank fails to lift rates and announce measures to support the yen, which could stoke retail inflation.
Japan Stock Movers
The Nikkei 225 stock average soared 2.1% to 38,468.63, and the Topix index advanced 2.2% to 2,759.67.
Tech stocks surged sharply in Monday's trading, and Tokyo Electron, Advantest, Shin-Etsu Chemical, and Disco Corp. jumped between 8% and 2.5%.
Furukawa Electric jumped 6.2% to ¥3,954.0, gained 6% to ¥2,977.0, and Resonac Holdings advanced 6.1% to ¥3,687.0.
Hitachi Construction Machinery plunged 9.5% to ¥3,764.0 after the company reported weaker-than-expected earnings in the June quarter.
Eisai Co. Ltd. dropped 12.2% to ¥5,768.0 after the European Union's drug regulator rejected the company's early Alzheimer treatment.
The regulator said that the drug's positive impact on slowing cognitive decline was outweighed by swelling in the brain.
The EU's rejection, a surprise to investors who had factored in the drug's approval, could also impact the drug's sales in the U.S. and in Japan.
Hong Kong Indexes Surged 2% After Industrial Profits Rebounded
Benchmark indexes in Hong Kong advanced after the total profit of industrial enterprises rose in the first half of this year.
The Hang Seng indexes jumped as much as 2%, but the CSI 300 index declined as two indexes diverged in Monday's trading.
Total profits of industrial companies in the first half rose 3.5% from a 0.1% increase in the first five months to May a year ago, the National Bureau of Statistics reported Saturday.
Investors are also looking forward to an announcement after the Politburo meeting in Beijing, which is likely to offer more policy support to meet the annual growth target rate of 5%.
Last week, the People's Bank of China lowered its policy rate for ultra-long-term bonds and announced its plan to purchase 300 billion yuan, or about $41 billion, of bonds.
Despite the market surge in Monday's trading, mood was subdued in Shanghai and Shenzhen trading on the worries ahead of the start of the earnings season this week.
Market sentiment was also cautious ahead of monetary policy announcements from major central banks in the U.S., the UK, and Japan.
The U.S. Federal Reserve is expected to keep interest rates steady for the eighth time in a row, and policymakers may provide clarity on the timing and amount of rate cuts later in the year.
Most market participants are anticipating the Fed to lower rates by 25 basis points as early as September.
China Stock Movers
The Hang Seng index increased 2% to 17,352.37, and the CSI 300 index decreased 0.4% to 3,397.37.
Tech stocks led the gainers in Monday's trading, and Alibaba Group advanced 5.4% to HK $77.05, Tencent Holdings increased 1.8% to HK $360.40, and Baidu gained 1.7% to HK $87.0.
Financial services stocks advanced after banks and insurance stocks participated in the market rally.
China Merchants Bank added 1.4% to HK $32.40, Industrial and Commercial Bank advanced 2.1% to HK $4.40, HSBC gained 1.3% to HK $67.10, and AIA Group jumped 1.9% to $52.70.
Stocks On Upswing Ahad of Mega-cap Earnings and Fed Rate Decisions
Barry Adams
29 Jul, 2024
New York City
Benchmark indexes on Wall Street advanced as investors prepared for a flood of results from corporations, including mega-cap tech companies.
In Monday's trading, the S&P 500 index advanced 0.4% and the Nasdaq Composite gained 0.8% as investors held out for higher earnings from leading tech companies.
In the previous week, the S&P 500 index and the Nasdaq Composite extended losses to the second week in a row as investors rotated into smaller companies and cyclical sectors after Alphabet and Tesla reported weak quarterly results.
In the previous week, the S&P 500 index declined 0.8% and the tech-heavy Nasdaq Composite dropped 2.1% amid heightened volatility.
This week, U.S. investors are looking forward to monetary policy decisions by the Federal Reserve.
The central bank is likely to keep key lending rates steady for the eighth time in a row, and investors are looking for clues about the rate path and the Fed’s views on the economy.
The U.S. economy is expected to add 185,000 jobs in July, slower than 206,000 in June, while the jobless rate is expected at 4.1% and wage growth is expected at 0.3%.
On the earnings front, Apple, Amazon, Microsoft, Mastercard, Toyota, AMD, Starbucks, Chevron, and Exxon Mobil are scheduled to release their results.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.4% to 5,481.73, the Nasdaq Composite added 0.8% to 17,493.94, and the Russell 2000 index rose 0.1% to 2,262.47.
The yield on 2-year Treasury notes edged lower to 4.39%, 10-year Treasury notes decreased to 4.17%, and 30-year Treasury bonds decreased to 4.42%.
WTI crude oil increased $0.04 to $77.16 a barrel, and natural gas prices edged up 3 cents to $2.04 a thermal unit.
Gold decreased by $5.19 to $2,391.18 an ounce, and silver declined by $0.02 to $27.90.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.65.
U.S. Stock Movers
McDonald's Corp. jumped 3.7% to $261.28 despite the fast food company reporting weaker-than-expected revenue and earnings in the second quarter.
Consolidated revenue in the second quarter was stable at $6.5 billion, net income declined 12% to $2.0 billion from $2.3 billion, and earnings per share dropped to $2.80 from $3.15 a year ago.
Global comparable sales declined 1.0%, driven by a 0.7% decrease at U.S. stores, and international location segments declined 1.1%.