ticker

Existing home sales in June declined for the fourth month in a row, but median home prices rose to a record high for the second consecutive month.

Existing home sales declined 5.4% from the previous month and from a year ago to 3.89 million, the National Association of Realtors reported Tuesday.

“We're seeing a slow shift from a seller's market to a buyer's market,” said NAR Chief Economist Lawrence Yun.

“Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”

Median sales price for all housing types increased 4.1% to a record high of $426,900, and total housing inventory at the end of June increased 23.4% from a year ago to 1.32 million.

23 Jul, 2024

U.S. Movers: Cadence Design, Crown Holdings, General Motors, NXP Semiconductor, UPS

Scott Peters
23 Jul, 2024
New York City

Cadence Design Systems increased 1% to $289.12, and the advanced chip design software trimmed its current quarter earnings outlook to between $1.39 and $1.49 per share.

NXP Semiconductor plunged 8.3% to $260.60 after the advanced semiconductor company reported weaker than expected adjusted earnings.

Adjusted earnings in the second quarter were $3.20 per share, lower than market expectations between $3.22 and $3.27 per share.

Crown Holdings soared 9.8% to $85.06 after the packaging company lifted its annual earnings outlook.

Revenue in the second quarter edged lower to $3.04 billion from $3.1 billion, net income increased to $174 million from $157 million, and diluted earnings per share rose to $1.45 from $1.31 a year ago.

The company estimated full-year diluted earnings per share in the range of $6.00 to $6.25 compared to previous guidance of $5.80 to $6.20 and free cash flow to be at least $750 million.

Third quarter adjusted earnings per share are expected to be in the range of $1.75 to $1.85.

General Motors declined 5.8% to $46.67, despite the automaker reporting better-than-expected second quarter results.

Revenue increased 7% to $47.9 billion from $44.7 billion, net income rose to 14.3% to $2.9 billion from $2.6 billion, and diluted earnings per share advanced to $2.55 from $1.83 a year ago.

The vehicle maker also revised its full-year earnings per share outlook to between $8.93 and $9.93 from the previous estimate between $8.94 and $9.94.

The company also declared a quarterly cash dividend of 12 cents payable on September 19 to shareholders on record on September 9.

United Parcel Service dropped 13.1% to $126.01 after the package delivery company reported lower than expected results in the second quarter.

Consolidated revenue in the second quarter declined 1.1% to $21.8 billion from $22.1 billion, net income dropped 32.2% to $1.4 billion from $2.1 billion, and diluted earnings per share fell to $1.65 from $2.42 a year ago.

The company also estimated full-year consolidated revenue of $93 billion and capital expenditure of $4.0 billion, lower than $4.5 billion in the previous estimate.

U.S. Major Averages Flatlined as Investors Review Latest Quarterly Results

Barry Adams
23 Jul, 2024
New York City

Benchmark indexes on Wall Street traded in a tight range, and investors reviewed a fresh batch of earnings and awaited key tech earnings after the close.

The S&P 500 index and the Nasdaq Composite hugged the flatline, and the dollar edged slightly higher against the euro and Asian currencies.

Investors review the latest batch of quarterly results, including updates from General Motors, UPS, Crown Holdings, NXP Semiconductor, and Cadence.

General Motors reported strong gains in second quarter sales and earnings, and the vehicle maker said it plans to restructure its struggling China unit.

UPS plunged more than 10% after the company revised its annual outlook and its second quarter performance fell far short of market expectations.

In the latest earnings season, companies have generally met or exceeded investor expectations, supporting the move in market indexes and helping the rally to broaden beyond mega-cap stocks.

Investors are still rotating out of mega-cap stocks into smaller-cap companies and cyclical stocks in the hopes that the Federal Reserve is likely to cut rates starting as early as September.

The lower interest rates stimulate demand and benefit smaller and cyclical companies because of higher demand for their products and services.

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.1% to 5,561.81, the Nasdaq Composite rose 0.02% to 18,011.80, and the Russell 2000 index advanced 0.9% to 2,241.29.

The yield on 2-year Treasury notes edged lower to 4.52%, 10-year Treasury notes increased to 4.24%, and 30-year Treasury bonds edged higher to 4.47%.

WTI crude oil decreased $0.91 to $77.49 a barrel, and natural gas prices edged down 3 cents to $2.21 a thermal unit.

Gold increased by $8.60 to $2,403.89 an ounce, and silver decreased 5 cents to $29.01.

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.50.

U.S. Stock Movers

Cadence Design Systems increased 1% to $289.12, and the advanced chip design software trimmed its current quarter earnings outlook to between $1.39 and $1.49 per share.

NXP Semiconductor plunged 8.3% to $260.60 after the advanced semiconductor company reported weaker than expected adjusted earnings.

Adjusted earnings in the second quarter were $3.20 per share, lower than market expectations between $3.22 and $3.27 per share.

Crown Holdings soared 9.8% to $85.06 after the packaging company lifted its annual earnings outlook.

Revenue in the second quarter edged lower to $3.04 billion from $3.1 billion, net income increased to $174 million from $157 million, and diluted earnings per share rose to $1.45 from $1.31 a year ago.

The company estimated full-year diluted earnings per share in the range of $6.00 to $6.25 compared to previous guidance of $5.80 to $6.20 and free cash flow to be at least $750 million.

Third quarter adjusted earnings per share are expected to be in the range of $1.75 to $1.85.

General Motors declined 5.8% to $46.67, despite the automaker reporting better-than-expected second quarter results.

Revenue increased 7% to $47.9 billion from $44.7 billion, net income rose to 14.3% to $2.9 billion from $2.6 billion, and diluted earnings per share advanced to $2.55 from $1.83 a year ago.

The vehicle maker also revised its full-year earnings per share outlook to between $8.93 and $9.93 from the previous estimate between $8.94 and $9.94.

The company also declared a quarterly cash dividend of 12 cents payable on September 19 to shareholders on record on September 9.

United Parcel Service dropped 13.1% to $126.01 after the package delivery company reported lower than expected results in the second quarter.

Consolidated revenue in the second quarter declined 1.1% to $21.8 billion from $22.1 billion, net income dropped 32.2% to $1.4 billion from $2.1 billion, and diluted earnings per share fell to $1.65 from $2.42 a year ago.

The company also estimated full-year consolidated revenue of $93 billion and capital expenditure of $4.0 billion, lower than $4.5 billion in the previous estimate.

Europe Movers: Alfa Laval, Compass Group, Logitech, Luxury Stocks, Porsche, Resource Stocks, SAP, Thales

Inga Muller
23 Jul, 2024
Frankfurt

European market indexes flatlined, and gains in tech stocks were overshadowed by the weakness in luxury and resource stocks.

The DAX index increased by 1.1% to 18,623.06; the CAC-40 index rose by 0.04% to 7,622.61; and the FTSE 100 index fell by 0.2% to 8,184.82.

The yield on 10-year German bonds edged lower to 2.45%, French bonds inched lower to 3.10%, the UK gilts inched higher to 4.14%, and Italian bonds decreased to 3.75%.

SAP SE jumped 6.5% to €195.20 after the German software company reported better-than-expected second-quarter results.

Logitech SA increased 1.3% to CHF 83.14 after the Swiss computer accessories maker lifted its annual sales and earnings outlook.

Porsche Automobil declined 2.9% to €41.44 after the luxury vehicle maker cut its annual sales outlook and warned of possible impairment charges linked to supply chain disruptions.

Thales SA declined 5.4% to €145.95, despite the France-based largest European defense electronics company reporting slightly better-than-expected operating profit in the first half.

Alfa Laval rose 0.2% to SEK 467.80 after the Swedish thermal equipment and plant maker reported an increase in sales and earnings in the second quarter.

Compass Group jumped 4.7% after the airline catering company revised its full-year revenue and earnings outlook.

European Market Indexes Flatlined In Cautious Trading

Bridgette Randall
23 Jul, 2024
London

European market indexes traded mixed, and tech stock gains were overshadowed by a weakness in resource stocks.

Benchmark indexes in Paris, London, and Frankfurt flatlined, and the euro and the pound held firm.

Tech stocks advanced after SAP and Logitech reported better-than-expected quarterly results, but mining stocks edged lower on demand growth worries in China.

The price of copper fell to a three-month low following China's lack of major economic reform announced at the end of the Third Plenum last week.

Moreover, luxury stocks in Paris also faced a sharp fall for the second week due to persistent demand growth worries in mainland China and Hong Kong.

However, market sentiment recovered slightly after U.S. President Joe Biden announced his plan to exit the presidential race and endorsed the nomination of Vice President Kamala Harris as a Democratic Party candidate.

Harris is more likely to continue the current policy of supporting NATO spending targets and support the efforts in defending the Ukraine war, unlike Republican Party candidate Donald Trump's plan to end financial support.

Europe Indexes and Yields

The DAX index increased by 1.1% to 18,623.06; the CAC-40 index rose by 0.04% to 7,622.61; and the FTSE 100 index fell by 0.2% to 8,184.82.

The yield on 10-year German bonds edged lower to 2.45%, French bonds inched lower to 3.10%, the UK gilts inched higher to 4.14%, and Italian bonds decreased to 3.75%.

The euro edged lower to $1.09; the British pound inched higher to $1.29; and the U.S. dollar weakened to 89.19 Swiss cents.

Brent crude decreased $0.53 to $81.81 a barrel, and the Dutch TTF natural gas fell by €0.57 to €31.30 per MWh.

Europe Stock Movers

SAP SE jumped 6.5% to €195.20 after the German software company reported better-than-expected second-quarter results.

Logitech SA increased 1.3% to CHF 83.14 after the Swiss computer accessories maker lifted its annual sales and earnings outlook.

Porsche Automobil declined 2.9% to €41.44 after the luxury vehicle maker cut its annual sales outlook and warned of possible impairment charges linked to supply chain disruptions.

Thales SA declined 5.4% to €145.95, despite the France-based largest European defense electronics company reporting slightly better-than-expected operating profit in the first half.

Alfa Laval rose 0.2% to SEK 467.80 after the Swedish thermal equipment and plant maker reported an increase in sales and earnings in the second quarter.

Compass Group jumped 4.7% after the airline catering company revised its full-year revenue and earnings outlook.

Japan Stocks Rebounded, Nippon Yusen and Yokohama Rubber In Focus

Akira Ito
23 Jul, 2024
Tokyo

Japan stocks rebounded and halted a 4-day decline following a rise in tech stocks.

The Nikkei 225 gained 0.1% and the Topix index rose 0.3% after the tech stocks mirrored the gain in overnight trading in New York.

The yen drifted higher to 156.65 against the U.S. dollar as investors suspected that the central bank continued its effort to shore up the weak yen.

Toshimitsu Motegi, the general secretary of the ruling Liberal Democratic Party, urged the Bank of Japan to clearly communicate its plan for ending massive stimulus and avoiding an excessive decline in the yen.

The comments of the senior ruling party leader come ahead of the Bank of Japan's policy meeting at the end of the month, and investors are hoping that the central bank will cut down sharply on its monthly 6 trillion yen bond purchase program.

Japan Stock Movers

The Nikkei 225 stock average increased 0.1% to 39,643.39, and the Topix index advanced 0.3% to 2,834.79.

Ocean Transportation Company stocks were focused on the tight container shipment market and rising rates for trans-Pacific routes.

Kawasaki Kisen jumped 6.4% to ¥2,395.50, Nippon Yusen gained 8.2% to ¥4,825.0, and Mitsui OSK gained 5.4% to ¥4,810.0.

Nippon Yusen upwardly revised its financial outlook for the fiscal first half and 2025, citing higher ocean freight rates, positive trends in its air cargo and bulk shipment business, and a weaker yen.

The company revised its first-half revenue to 1.295 trillion yen from 1.165 trillion yen in the previous estimate, net profit attributable to shareholders to 250 billion yen from 135 billion yen, and earnings per share to 547.80 yen from 294.03 yen.

The company revised its annual revenue outlook to 2.57 trillion yen from 2.25 trillion yen, its net income to 390 billion yen from 245 billion yen, and its earnings per share outlook to 855.9 yen from 533.6 yen.

The company said it has completed the purchase of 4.32 million of its own shares and reiterated its commitment to complete its 100 billion yen or as many as 35 million share repurchase plan.

Yokohama Rubber soared 7.5% to ¥3,539.0 after Goodyear announced its plans to sell its off-the-road tire business to the company for $905 million in cash.

Goodyear will retain its business providing OTR tires for U.S. military and defense applications and Goodyear will manufacture certain OTR tires for Yokohama at some of its manufacturing locations for an initial period of up to five years after the closing of the transaction.

China Stocks Lack Direction Amid Worries of Escalating Government Debt and Weak Earnings Growth

Li Chen
23 Jul, 2024
Mumbai

Stocks in Shanghai and Hong Kong retained a downward bias for the second day in a row amid a lack of catalysts.

The Hang Seng index declined 0.2%, and the CSI 300 index, tracking the largest mainland stocks, fell 1% after the lack of major economic reform announcements following the Communist Party's Third Plenum last week.

China's Politburo is set to meet later in the month, and investors are hoping for more concrete market-supportive measures after the high-level meeting of ministers.

During the Third Plenum, where dissent or debate on policies is rarely entertained, most participants voiced strong support for meeting the annual economic growth target of 5% and also supported additional measures.

China's government is likely to meet its growth target by surpassing its budget deficit of 5.8% in 2023 and reaching as high as 7%.

China's fiscal deficit has averaged 6.4% since 2020, and the annual deficit is likely to grow at a faster pace in 2024 and 2025.

On Monday, the People's Bank of China unexpectedly lowered its key short-term lending rates, and investors are hoping that the central bank is likely to lower its reserve ratio requirement for banks to increase financial liquidity.

Despite the recent slowdown in spending, China's debt-to-GDP ratio rose close to 300%.

China's total outstanding non-financial debt as a percentage of gross domestic product increased 13.5 percentage points from a year ago to 287.8% at the end of 2023, according to the National Institution for Finance and Development.

In the first half of 2024, the government's debt increased at least by another six percentage points, according to an estimate by Ticker.com.

China Stock Movers

The Hang Seng index decreased 0.2% to 17,609.06, and the CSI 300 index dropped 1% to 3,478.06.

BYD declined 3.5% to HK $237.40 after a Hong Kong Stock Exchange filing showed that the U.S.-based Berkshire Hathaway sold 1.4 million shares, lowering its stake to 4.95%.

BYD Electronic International decreased 3.6% to HK $32.50.

Bank stocks were in focus amid expectations that the People's Bank of China is likely to lower the reserve ratio requirement to facilitate more lending to the industrial economy.

ICBC increased 2.2% to HK $4.37, Orient Overseas gained 0.7% to $108.60, and Bank of China advanced 1.1% to HK $3.46.

India Movers: Rail Stocks, Shipping Stocks, Suzlon, Wipro

Arun Goswami
23 Jul, 2024
Mumbai

Investors are looking forward to the government's plans to increase infrastructure spending, modernize the rail network, and meet annual deficit targets.

The Sensex index increased by 0.1% to 80,899.43, and the Nifty index rose by 0.2% to 24,656.65.

On the Mumbai stock exchange, 63 stocks traded at their 52-week highs, and 9 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.96%, and the Indian rupee edged higher to ₹83.62 against the U.S. dollar.

Suzlon Energy increased 4.7% to ₹57.69 after the wind turbine company reported a sharp jump in its June quarter.

Revenue jumped 50% to ₹2,016 crore from ₹1,348 crore, and net income soared threefold to ₹302 crore from ₹101 crore a year ago, respectively.

The company delivered turbines generating 274 MW, compared to 135 MW a year ago.

Wipro declined 0.8% to ₹502.05, and the tech services exporter declined for the second day in a row after the company reported mixed quarterly results.

Revenue in the June quarter declined 3.8% to $2.6 billion, and net income rose 4.6% to $360.4 million.

In rupee terms, revenue decreased 3.8% to ₹21,960 crore and net income fell 4.6% to ₹3,000 crore from a year ago, respectively.

Earnings per share dropped 10% from a year earlier to ₹5.75, or 7 cents.

The company estimated revenue in the fiscal second quarter to range between $2.6 billion and $2.652 billion, between a 1% decline and a 1% increase from the previous quarter in constant currency terms.

Shipping sector stocks were in focus on the expectation that the central government is likely to allocate as much as ₹20,000 crore for the development of several ports.

Adani Ports added 0.4% to ₹1,473.0, Shipping Corporation of India decreased 0.2% to ₹318.25, Garden Reach Shipbuilders rose 0.8% to ₹2,588.0, and Cochin Shipyard rose 1.8% to ₹2,717.0.

Rail sector stocks also traded volatile ahead of the release of the Unio Budget.

Rail Vikas Nigam decreased 0.3% to ₹622.0, IRCTC increased 0.2% to ₹1,007.90, and Ircon International fell 0.3% to ₹318.65.

U.S. and Global Markets Rebound from Steep Losses of the Previous Week

Alexander Garcia
22 Jul, 2024
Miami

Stocks extended an early morning rebound in Monday's trading after sharp losses in the previous week, which halted a 3-month rally.

Market sentiment recovered following steep losses in Friday's trading after a product upgrade by Crowdstrike caused a severe meltdown of information systems around the world and pushed tech stocks lower.

The S&P 500 index and the Nasdaq Composite rebounded more than 1% in Monday's trading after falling more than 2% and 4%, respectively, in the previous week amid rising trade tensions between the U.S. and China and investors rotating into smaller and cyclical stocks.

Market indexes were on the upswing as traders kept their eye on the fast-developing political landscape after U.S. President Joe Biden dropped out of the presidential race and endorsed Vice President Kamala Harris's nomination for the Democratic Party.

57-year-old Harris is the front-runner for the Democratic Party, and she is likely to prove a tougher challenge for the Republican Party candidate, 78-year-old Donald Trump.

On the economic front this week, U.S. investors are looking ahead to the release of the second quarter GDP growth rate with an estimate of 2%, faster than the 1.4% rate in the first quarter.

In addition, the Price Consumption Expenditure Price Index, an alternative measure of inflation, is also expected to show a slight increase of 0.1% in June following a flat reading in May.

Investors are also looking forward to the release of quarterly results from some of the leading corporations this week, and Microsoft, Coca-Cola, Tesla, Visa, UPS, IBM, AT&T, and Exxon Mobil are scheduled to release their results.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 1.1% to 5,562.60, the Nasdaq Composite rose 1.6% to 18,007.38, and the Russell 200 advanced 0.9% to 2,204.20.

The yield on 2-year Treasury notes edged higher to 4.53%, 10-year Treasury notes increased to 4.23%, and 30-year Treasury bonds edged higher to 4.43%.

WTI crude oil decreased $0.35 to $78.77 a barrel, and natural gas prices edged up 11 cents to $2.24 a thermal unit.

Gold decreased by $1.13 to $2,393.53 an ounce, and silver was down 13 cents to $29.08.

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.31.

U.S. Stock Movers

Bank of America decreased 1.2% to $42.41 after Berkshire Hathaway said in a regulatory filing that it sold 33.9 million shares valued at $1.48 billion in the company.

Nvidia Corp. advanced 3.9% to $122.22 after Reuters news reported that the company is preparing a Chinese version of the Blackwell chip for artificial intelligence that is compliant with U.S. export control.

Crowdstrike Holdings decreased 10% to $274.13 after Guggenheim downgraded stock to "neutral' from "buy," adding that the company is likely to face near-term challenges after the company's product upgrade caused the global outage last weekend.

European Indexes Gained 1%

European market indexes rebounded in Monday's trading, and bond yields edged lower.

Benchmark indexes in Paris, London, and Frankfurt advanced, powered by a rebound in tech stocks, mining companies, and luxury retailers.

The People's Bank of China unexpectedly lowered its seven-day repo rate and one-year and five-year loan prime rates to record low levels.

The central bank lowered its one-year and five-year loan prime rates by 10 basis points to 3.35% and 3.85%, respectively, to support the fragile economic recovery.

Market sentiment was also positive after U.S. President Joe Biden dropped out of the presidential race and offered his support to Vice President Kamala Harris as a Democratic Party candidate.

The Republican Party's candidate, Donald Trump, a convicted felon and a target of several U.S. government investigations, has been a vocal critic of the Ukraine war and has supported the ending of the war.

Former U.S. President Trump threatened to drop out of NATO, the North Atlantic Treaty Organization, during his presidency between 2017 and 2021.

Europe Indexes and Yields

The DAX index increased by 1.3% to 18,407.07; the CAC-40 index rose by 1.2% to 7,622.02; and the FTSE 100 index advanced by 0.4% to 8,198.78.

The yield on 10-year German bonds edged higher to 2.46%, French bonds inched higher to 3.12%, the UK gilts inched higher to 4.13%, and Italian bonds decreased to 3.75%.

The euro edged lower to $1.09; the British pound inched higher to $1.29; and the U.S. dollar weakened to 88.84 Swiss cents.

Brent crude decreased $0.35 to $82.27 a barrel, and the Dutch TTF natural gas rose by €0.15 to €31.86 per MWh.

Europe Stock Movers

Ocado PLC rose 9.4% to 415.27 pence after the U.S.-based largest independent grocery chain operator placed an order for its customer fulfillment centers.

Rentokil Initial plc jumped 9.3% to 490.50 pence on reports that former BT chief Philip plans to acquire the British pest-control company.

Belimo Holding AG soared 15.2% to CHF 512.50 after the Swiss ventilation product company raised its sales outlook.

Ryanair Holdings plc dropped 13.4% to €14.37 after the discount airline reported a 46% decline in its quarterly profit.

Hammerson plc increased 3.4% to 30.14 pence after the British property company agreed to sell its entire stake in the Value Retail business for an enterprise value of £1.5 billion, generating cash flow of £600 million.

Entain PLC increased 5.6% to 680.52 pence after the UK-based gambling firm appointed Gavin Isaacs, former chief of Scientific Games, as its new chief executive.

Airbus SE increased by 0.9% to €133.0 after French media reports indicated that the European aerospace company has narrowed down to eight potential sites in India for the final assembly line for H125 helicopters.

Japan Indexes Extend 4-day Losses

Stocks in Tokyo faced selling pressure amid heightened geopolitical uncertainty and caution ahead of the Bank of Japan's monetary policy decisions next week.

The Nikkei 225 and the Topix indexes declined tracking losses in Friday's trading on Wall Street, following the losses in tech stocks after Microsoft and Crowdstrike product changes knocked down information systems around the world.

Two benchmark indexes extended losses to the fourth session in a row and dropped to their three-week lows.

Investors were also on the defensive after U.S. President Joe Biden dropped out of the presidential race and endorsed vice president Kamala Harris.

Democratic frontrunner Harris is likely to continue defense cooperation with Japan and maintain an active role in keeping international trade and defense alliances intact, unlike Republican Party candidate Donald Trump with a checkered past and weak grasp on international affairs.

The yen edged slightly higher to 156.85 against the U.S. dollar in the hopes that the Bank of Japan may revise rates higher at the end of its policy meeting next week and shrink the wide yield gap between the U.S. and Japan.

Japan Stock Movers

The Nikkei 225 stock average declined 1.3% to 39,558.24 and the Topix index dropped 1.2% to 2,827.88.

Tech stocks were among the leading decliners in Tokyo in Monday's trading.

Tokyo Electron, Avantest, Screen Holdings, and Lastertec declined between 1% and 2%.

Financial stocks were also under pressure amid interest rate path uncertainty.

Mitsubishi UFJ Financial, Mizuho Financial, and Sumitomo Mitsui Financial declined between 0.2% and 1%.

Teijin Ltd. increased 4% to ¥ 1,430.50, and East Japan Railway rose 3.2% to ¥2,779.50.

Travel stocks were in focus amid a surge in the arrival of foreign tourists following the sharp decline in the yen this year.

West Japan Railway increased 1.8% to ¥2,950.0, Central Japan Railway jumped 0.9% to ¥3,508.0, and Japan Airlines declined 0.1% to ¥2,500.0, and Isetan Mitsukoshi decreased 0.9% to ¥3,264.0.

Hong Kong Stocks Rebounded After PBoC Unexpectedly Lowered Rates

Market indexes in Hong Kong advanced but in Shanghai declined amid a lack of strong policy support for the revival of long-term economic growth after the ending of the third plenary session of Communist Party leaders.

The Hang Seng index gained 0.7%, and the CSI 300 index, tracking the largest stocks on the mainland, declined 1%.

The People's Bank of China unexpectedly lowered its seven-day reverse repo rate and loan prime rates as the central bank facilitated lending to corporations to revive economic growth.

The move comes after the policymakers vowed to offer more support to the economy during the four-day Third Plenum last week.

The one-year loan prime rate was lowered by 10 basis points to 3.35%, and the five-year rate was trimmed by the same amount to 3.85%.

Both rates dropped to new lows as the central bank reacted to a weak second quarter GDP growth rate and mixed economic data for June released a few days ago.

The central bank also lowered the seven-day reverse repo rate to 1.7% from 1.8%.

China Stock Movers

The Hang Seng index rebounded after falling nearly 5% in the previous week, its largest weekly loss in nearly two months.

The Hang Seng index increased 0.7% to 17,539.38 and the CSI 300 index decreased 1% to 3,502.10.

Travel-related stocks were focused on the expected surge in demand ahead of the summer travel in a few weeks.

Trip.com increased 4% to HK $358.0, and Tongcheng Travel Holdings declined 0.3% to HK $13.72.

Technology stocks were also among the most actively traded stocks in Monday's trading.

Tencent Holdings jumped 2.4% to HK $372.60, Alibaba Group advanced 1% to HK $74.55, Baidu gained 11.1% to HK $89.15.

Hebei Keli Automobile Equipment, an automobile glassmaker, soared more than 110% on the first day of its trading to 65.32 yuan after the company priced its initial public offering at 30 yuan and raised 510 million yuan.

S&P 500, Nasdaq Composite, and Russell 2000 Rebound In Broad Market Rally

Barry Adams
22 Jul, 2024
New York City

Stocks on Wall Street rebounded following sharp losses in the previous week and in Friday's trading after a product upgrade by Crowdstrike caused a severe meltdown of information systems around the world.

The S&P 500 index and the Nasdaq Composite rebounded around 1% in Monday's trading after falling more than 2% and 4%, respectively, in the previous week amid rising trade tensions between the U.S. and China.

Market indexes were on the upswing as traders kept their eye on the fast-developing political landscape after U.S. President Joe Biden dropped out of the presidential race and endorsed Vice President Kamala Harris's nomination for the Democratic Party.

57-year-old Harris is the front-runner for the Democratic Party, and she is likely to prove a tougher challenge for the Republican Party candidate, 78-year-old Donald Trump.

On the economic front, U.S. investors are looking ahead to the release of the second quarter GDP growth rate with an estimate of 2%, faster than the 1.4% rate in the first quarter.

The PCE price index, an alternative measure of inflation, is also expected to show a slight increase of 0.1% following a flat reading in May.

On the earnings front, Microsoft, Coca-Cola, Tesla, Visa, UPS, IBM, AT&T, and Exxon Mobil are scheduled to release quarterly results.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.8% to 5,547.83, the Nasdaq Composite rose 1.1% to 17,922.48, and the Russell 200 advanced 0.4% to 2,192.39.

The yield on 2-year Treasury notes edged higher to 4.53%, 10-year Treasury notes increased to 4.23%, and 30-year Treasury bonds edged higher to 4.43%.

WTI crude oil decreased $0.75 to $77.88 a barrel, and natural gas prices edged up 9 cents to $2.22 a thermal unit.

Gold decreased by $2.63 to $2,397.82 an ounce, and silver was up 21 cents to $29.03.

The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.31.

U.S. Stock Movers

Bank of America decreased 1.2% to $42.41 after Berkshire Hathaway said in a regulatory filing that it sold 33.9 million shares valued at $1.48 billion in the company.

Nvidia Corp. advanced 3.9% to $122.22 after Reuters news reported that the company is preparing a Chinese version of the Blackwell chip for artificial intelligence that is compliant with U.S. export control.

Crowdstrike Holdings decreased 10% to $274.13 after Guggenheim downgraded stock to "neutral' from "buy," adding that the company is likely to face near-term challenges after the company's product upgrade caused the global outage last weekend.

Europe Movers: Airbus, Entain, Hammerson, Ocado, Rentokil, Ryanair

Inga Muller
22 Jul, 2024
Frankfurt

European markets rebounded as investors reacted to U.S. political developments and China's interest rate cut in the absence of domestic news.

The DAX index increased by 1.5% to 18,433.00; the CAC-40 index rose by 1.4% to 7,636.82; and the FTSE 100 index advanced by 0.8% to 8,222.02.

The yield on 10-year German bonds edged higher to 2.46%, French bonds inched higher to 3.12%, the UK gilts inched higher to 4.13%, and Italian bonds decreased to 3.75%.

Ocado PLC rose 9.4% to 415.27 pence after the U.S.-based largest independent grocery chain operator placed an order for its customer fulfillment centers.

Rentokil Initial plc jumped 9.3% to 490.50 pence on reports that former BT chief Philip plans to acquire the British pest-control company.

Belimo Holding AG soared 15.2% to CHF 512.50 after the Swiss ventilation product company raised its sales outlook.

Ryanair Holdings plc dropped 13.4% to €14.37 after the discount airline reported a 46% decline in its quarterly profit.

Hammerson plc increased 3.4% to 30.14 pence after the British property company agreed to sell its entire stake in the Value Retail business for an enterprise value of £1.5 billion, generating cash flow of £600 million.

Entain PLC increased 5.6% to 680.52 pence after the UK-based gambling firm appointed Gavin Isaacs, former chief of Scientific Games, as its new chief executive.

Airbus SE increased by 0.9% to €133.0 after French media reports indicated that the European aerospace company has narrowed down to eight potential sites in India for the final assembly line for H125 helicopters.

European Indexes Gained 1% as Investors Reacted to China Rate Cuts and U.S. Political Developments

Bridgette Randall
22 Jul, 2024
London

European market indexes rebounded in Monday's trading, and bond yields edged lower.

Benchmark indexes in Paris, London, and Frankfurt advanced, powered by a rebound in tech stocks, mining companies, and luxury retailers.

The People's Bank of China unexpectedly lowered its seven-day repo rate and one-year and five-year loan prime rates to record low levels.

The central bank lowered its one-year and five-year loan prime rates by 10 basis points to 3.35% and 3.85%, respectively, to support the fragile economic recovery.

Market sentiment was also positive after U.S. President Joe Biden dropped out of the presidential race and offered his support to Vice President Kamala Harris as a Democratic Party candidate.

The Republican Party's candidate, Donald Trump, a convicted felon and a target of several U.S. government investigations, has been a vocal critic of the Ukraine war and has supported the ending of the war.

Former U.S. President Trump threatened to drop out of NATO, the North Atlantic Treaty Organization, during his presidency between 2017 and 2021.

Europe Indexes and Yields

The DAX index increased by 1.5% to 18,433.00; the CAC-40 index rose by 1.4% to 7,636.82; and the FTSE 100 index advanced by 0.8% to 8,222.02.

The yield on 10-year German bonds edged higher to 2.46%, French bonds inched higher to 3.12%, the UK gilts inched higher to 4.13%, and Italian bonds decreased to 3.75%.

The euro edged lower to $1.09; the British pound inched higher to $1.29; and the U.S. dollar weakened to 88.84 Swiss cents.

Brent crude decreased $0.43 to $82.18 a barrel, and the Dutch TTF natural gas fell by €0.20 to €31.20 per MWh.

Europe Stock Movers

Ocado PLC rose 9.4% to 415.27 pence after the U.S.-based largest independent grocery chain operator placed an order for its customer fulfillment centers.

Rentokil Initial plc jumped 9.3% to 490.50 pence on reports that former BT chief Philip plans to acquire the British pest-control company.

Belimo Holding AG soared 15.2% to CHF 512.50 after the Swiss ventilation product company raised its sales outlook.

Ryanair Holdings plc dropped 13.4% to €14.37 after the discount airline reported a 46% decline in its quarterly profit.

Hammerson plc increased 3.4% to 30.14 pence after the British property company agreed to sell its entire stake in the Value Retail business for an enterprise value of £1.5 billion, generating cash flow of £600 million.

Entain PLC increased 5.6% to 680.52 pence after the UK-based gambling firm appointed Gavin Isaacs, former chief of Scientific Games, as its new chief executive.

Airbus SE increased by 0.9% to €133.0 after French media reports indicated that the European aerospace company has narrowed down to eight potential sites in India for the final assembly line for H125 helicopters.

Japan Indexes Extend 4-day Losses Ahead of BoJ Policy Decisions

Akira Ito
22 Jul, 2024
Tokyo