- Akira Ito
- 02 Sep, 2024
- Tokyo
Benchmark indexes in Tokyo opened higher and extended gains of the previous month but face selling pressure in the afternoon trading.
The Nikkei 225 and Topix indexes closed nearly unchanged after market indexes struggled to hold early lead.
Market sentiment weakened after capital spending for plant and equipment in the second quarter rose at a slower-than-expected pace of 7.4%, the Ministry of Finance reported Monday.
Capital spending stayed positive for the thirteenth quarter in a row and accelerated from an increase of 6.8% in the first quartet.
Electricity production and transmission spending soared nearly 32%, followed by an increase of 23.7% in real estate and 20.6% in transportation.
However, fabricated metal products spending declined 25.1%, machinery production fell by 15.6%, and wholesale and retail trade fell 8.9%.
The final update on the manufacturing activities showed activities remained in contraction, according to the S&P Global Market Intelligence.
The final au Jibun Bank Japan manufacturing purchasing managers' index edged up to 49.8 in August from 49.1 in July, and the index improved from 49.5 reported in the preliminary estimate.
The index stayed below 50, the level that separates expansion from contraction.
Weak new order trends from key customers in China and South Korea continued to weigh on the overall index.
The yen edged slightly lower to 146.45 against the U.S. dollar, supporting the early rise in benchmark indexes.
Japan Stock Movers
The Nikkei 225 stock average increased 0.1% to 38,680.61 and the Topix index rose 0.09% to 2,714.96.
Banks edged higher in Tokyo in Monday's trading as investors awaited the Bank of Japan's monetary policy decisions later in the month.
Sumitomo Mitsui Financial increased 0.5% to ¥9,597.0, Mitsubishi UFJ gained 1.3% to ¥1,548.50, and Mizuho Financial Group jumped 1.7% to ¥3,059.0.
IHI Corp. increased 5.5% to ¥6,688.0, Kawasaki Heavy Industries advanced 3.5% to ¥5,321.0, Yakasawa Electric edged higher 1.4% to ¥4,900.0, and Tokyo Electric advanced 0.5% to ¥698.10.
Seven & I Holding advanced 2.8% to ¥2,156.50, Takashimaya gained 2.7% to ¥1,146.50, Fast Retailing gained 0.4% to ¥46,820.0, and Isetan Mitsukoshi jumped 2% to ¥2,236.50.
Sumitomo Pharma declined 6% to ¥628.0, Chugai Pharma decreased 6% to ¥6,936.0, and Toto fell 2.9% to ¥4,911.0.
- Li Chen
- 02 Sep, 2024
- Hong Kong
Stock market sentiment soured after manufacturing activities contracted and weak quarterly results from leading property developers.
The Hang Seng and CSI 300 indexes dropped more than 1%, following a rebound of nearly 4% in April, after the official manufacturing survey showed activities contracted for the fourth month in a row in August.
The official Manufacturing Purchasing Managers' Index fell to 49.1 in August, down from 49.4 in July, the National Bureau of Statistics reported Monday.
The non-manufacturing survey, which includes activities in service and construction sectors, edged slightly higher to 50.3 from 50.2 in July.
Caixin Manufacturing PMI, which mostly focuses on private and smaller companies, held at 50.4 in August.
A reading above 50 indicates expansion, and below 50 shows contraction in activities.
China's manufacturing sector is going through a rough patch amid restrictive economic policy and an uncertain macroeconomic outlook amid fragile economic recovery over the last nine months.
Market sentiment was also weak after two China Vanke reported its first interim loss in two decades, and China Construction Bank and Industrial and Commercial Bank of China reported weaker-than-estimated quarterly results.
China Stock Movers
The Hang Seng index declined 1.6% to 17,700.40 and the CSI 300 index dropped 1.2% to 3,280.55.
New World Development Company dropped 13% to HK $6.82 after the real estate developer estimated annal loss.
China Vanke declined 4.4% to HK $3.93, and the state-controlled residential real estate developer reported a net loss of 9.85 billion yuan in the first six months of 2024.
The company swung from a net profit of 9.87 billion yuan in the six-month period in 2023 after revenue dropped 29% to 142.8 billion yuan.
Contracted home sales in the period plunged 37% to 127 billion yuan.
China Vanke, along with other leading mainland developers Shimao Group, Kaisa Group, and Fantasia, reported large losses last Thursday.
China Resources Land declined 4.5% to HK $21.15 and China Overseas Land dropped 5.3% to HK $11.72.
China Shenhua Energy eased 0.5% to HK $33.55 after the coal producer said net income in the first half declined 11% from a year ago.
ICBC declined 3.2% to HK $4.35 and China Construction Bank dropped 1.8% to HK $5.42 after the two leading banks reported a 2% decline in profit in the first half.
- Arun Goswami
- 02 Sep, 2024
- Mumbai
Stocks in Mumbai edged higher following the continued strength in international markets.
TVS Motor, Tata Motors, and Eicher Motors reported a decline in vehicle sales in August.
The Sensex index increased by 0.3% to 82,612.60, and the Nifty index rose 0.3% to 25,315.05.
On the Mumbai stock exchange, 122 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 higher to 6.86%, and the Indian rupee weakened to 83.87 against the U.S. dollar.
Gujarat Gas Limited soared 5% to ₹637.15, and the company's board approved the amalgamation of Gujarat State Petroleum Corporation, Gujarat State Petronet, and GSPC Energy with the company.
The company's gas transmission business will be listed as a separate company, GSPL Transmission Limited.
TVS Motor Company increased 2.1% to ₹2,822.0, and the company said two-wheeler sales in August jumped 13% to 3,91,588 units from 3,45,848 units a year ago.
Tata Motors decreased 1.1% to ₹1,098.95, and the company said vehicle sales in August decreased 8.1% to 71,693 units, driven by a decline of commercial vehicle sales by 15% to 27,107 units and the fall in passenger vehicle sales by 3.2% to 44,486 units.
GPT Infraprojects decreased 1.5% to ₹177.10 after the company won a construction project from South Eastern Railway for a road project near Kolkata.
Bandhan Bank increased 0.5% to ₹201.43, and UBS Principal Capital Asia acquired a 1.19% stake in the bank at an average price of ₹200.27 per share for a total of ₹354.6 crore.
Insecticides India Ltd. decreased 5.6% to ₹940.80, and the company's board has approved its stock buyback for ₹50 crore at ₹1,000 per share from shareholders on record on September 11.
HDFC Asset Management Company increased 1.3% to ₹4,458.0, and Life Insurance Corporation lowered its stake in the company to 2.88% from 4.91% over the two-month period ending in August.
- Barry Adams
- 30 Aug, 2024
- New York City
Market indexes advanced on the final trading day of August and are set to end the volatile month on a higher level.
The S&P 500 index trimmed its weekly losses to 0.2%, and the Nasdaq Composite trimmed its weekly losses to less than 1%.
In August, the S&P 500 index advanced 2.0% and the Nasdaq Composite gained 0.2%.
Investor sentiment recovered from sharp losses of as much as 10% over the two-week period ending in the first week in August, driven by the fears of an economic slowdown and weakening labor market conditions.
However, those fears turned out to be unfounded after a string of positive economic data in the second half of the month, fueling a market rally that lasted three weeks.
Market sentiment also improved after Fed Chair signaled "monetary policy adjustment," providing another boost to the broader market rally last week.
On Friday, the Fed's alternative measure of inflation highlighted mixed picture on the inflation front.
The Core Personal Consumption Expenditure Price Index increased on a monthly basis by 0.2%, matching the increase in the previous month, the Bureau of Economic Analysis reported Friday.
The overall index rose 0.2% on a monthly basis, matching expectations set by several economists.
On an annual basis, the overall PCE price index advanced 2.5%, matching the rate in the previous month, indicating prices are still rising at a pace faster than the Fed's 2% target rate.
The core PCE price index, which excludes volatile food and energy prices, rose 2.6% and held steady for the third month in a row.
Investors are still anticipating that the Federal Reserve is ready to start its interest rate cycle as early as next month, but those hopes could be dashed if policymakers decide to wait for more evidence for the downward path for inflation.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.6% to 5,627.04, the Nasdaq Composite rose 0.9% to 17,668.90, and the Russell 2000 index gained 0.6% to 2,202.98.
The yield on 2-year Treasury notes edged higher to 3.92%, 10-year Treasury notes increased to 3.86%, and 30-year Treasury bonds inched lower to 4.14%.
WTI crude oil increased $0.01 to $75.92 a barrel, and natural gas prices edged down 3 cents to $2.16 a thermal unit.
Gold rose by $2.20 to $2,521.75 an ounce, and silver increased by $0.20 to $29.57.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.36.
U.S. Stock Movers
Lululemon gained 3.9% to $269.0, and the athletic retailer reported mixed quarterly results.
Revenue in the latest quarter increased to $2.37 billion, and diluted earnings per share were $3.25, beating the estimates by at least 20 cents.
However, comparable sales increase slowed sharply to 2% from as high as 7% in the fourth quarter of 2023 and flat in the first quarter of this year.
Ulta Beauty dropped 7.1% to $341.50, and the cosmetic retailer reported weaker-than-estimated second quarter sales, and the company lowered its full-year outlook after comparable store sales declined.
Dell Technologies increased 5.2% to $116.44, and the personal computer and data server company reported earnings ahead of market expectations.
MongoDB soared 17% to $289.10, and the database developer's revenue and earnings were ahead of market expectations.
Revenue in the fiscal second-quarter ending in July increased 13% to $478.1 million, net loss advanced to $54.5 million from $37.6 million, and diluted loss per share expanded to 74 cents from 53 cents a year earlier.
The company guided full-year revenue to range between $1.92 billion and $1.93 billion, from the previous range between $1.88 billion and $1.90 billion.
The company also lifted its adjusted earnings per share outlook to between $2.33 and $2.47 from the previous estimate between $2.15 and $2.30.
Gap Inc. declined 1.5% to $22.57 after the specialty apparel retailer reported revenue and earnings that surpassed market expectations.
Revenue in the quarter that ended on August 3 rose 5% to $3.72 billion from $3.55 billion, net income advanced to $206 million from $117 million, and diluted earnings per share rose to 54 cents from 32 cents a year ago.
- Scott Peters
- 30 Aug, 2024
- New York City
Lululemon gained 3.9% to $269.0, and the athleisure retailer reported mixed quarterly results.
Revenue in the latest quarter increased to $2.37 billion, and diluted earnings per share were $3.25, beating the estimates by at least 20 cents.
However, comparable sales increase slowed sharply to 2% from as high as 7% in the fourth quarter of 2023 and flat in the first quarter of this year.
Ulta Beauty dropped 7.1% to $341.50, and the cosmetic retailer reported weaker-than-estimated second quarter sales.
The cosmetic retailer lowered its full-year sales outlook, following the decline in comparable store sales.
Dell Technologies increased 5.2% to $116.44, and the personal computer and data server company reported earnings ahead of market expectations.
MongoDB soared 17% to $289.10, and the database developer's revenue and earnings were ahead of market expectations.
Revenue in the fiscal second-quarter ending in July increased 13% to $478.1 million, net loss advanced to $54.5 million from $37.6 million, and diluted loss per share expanded to 74 cents from 53 cents a year earlier.
The company guided full-year revenue to range between $1.92 billion and $1.93 billion, from the previous range between $1.88 billion and $1.90 billion.
The company also lifted its adjusted earnings per share outlook to between $2.33 and $2.47 from the previous estimate between $2.15 and $2.30.
Gap Inc. declined 1.5% to $22.57 after the specialty apparel retailer reported revenue and earnings that surpassed market expectations.
Revenue in the quarter that ended on August 3 rose 5% to $3.72 billion from $3.55 billion, net income advanced to $206 million from $117 million, and diluted earnings per share rose to 54 cents from 32 cents a year ago.
- Inga Muller
- 30 Aug, 2024
- Frankfurt
European markets advanced for the third consecutive week, and inflation in the region edged lower.
But the core rate of inflation stayed steady, suggesting a difficult road ahead for policymakers. The jobless rate eased in the eurozone and held steady in Germany.
The DAX index increased by 0.2% to 18,947.56; the CAC-40 index rose by 0.5% to 7,678.25; and the FTSE 100 index rose by 0.3% to 8,406.11.
For the week, the DAX index advanced 2%, the CAC-40 index declined 1.1%, and the FTSE 100 index gained 1.5%.
ThyssenKrupp AG decreased 0.3% to €3.22, and the chairman and CEO of the steel division and five board members resigned after disagreeing with the parent company about the future direction of the business.
Ambu plunged 14.5% to DKK 131.30, and the Danish medical device company reported disappointing results in its fiscal third quarter.
Revenue increased 15.7% to DKK 1.38 billion, and operating earnings before special items rose to DKK 178 million from DKK 91 million.
Endoscopy solutions' organic revenue growth slowed to 18%, driven by a 9.9% increase in the pulmonology division, and anesthesia and patient monitoring organic revenue increased by 10.9%.
Banks advanced in the region after lower inflation stoked speculation of a lower interest rate in the eurozone.
Societe Generale increased 1.2% to €21.93, BNP Paribas rose 0.8% to €62.61, Intesa Sanpaolo added 1.3% to €3.78, UniCredit edged higher 0.8% to €37.18, and Deutsche Bank gained 0.5% to €14.75.
- Bridgette Randall
- 30 Aug, 2024
- London
European markets edged higher in Friday's trading as investors reviewed the slew of regional economic updates.
Benchmark indexes in Frankfurt, Paris, and London advanced and extended weekly gains after investors reviewed the latest updates on inflation, GDP growth, and labor markets.
The eurozone inflation slowed to 2.2% in August from 2.6% in July, according to the preliminary estimate released by Eurostat.
The decline in inflation was driven by the sustained cooling of volatile energy prices from a year ago, but inflation in the broader economy remained well entrenched and above the central bank's target rate of 2%.
The core rate of inflation, which excludes energy and unprocessed food, remained unchanged at 2.8%, indicating a difficult road ahead for policymakers.
On the labor market front, the unemployment rate in the eurozone eased by 0.2 percentage points to 6.4%, a separate report by Eurostat showed on Friday.
In addition, Germany's jobless rate stayed at a three-year high of 6.0% in August, and the unemployed increased by 2,000 from the previous month to 2.80 million after adjusting for seasonal factors.
On an unadjusted basis, the jobless count increased by 63,000 to 2.87 million, a three-and-a-half-year high amid tightening labor demand.
France's inflation cooled to 1.9% in August from 2.3% in the previous month, according to the latest data released by the INSEE.
France's statistical agency, INSEE, also said in a separate report that GDP in the second quarter rose at a slower pace of 0.2%.
Europe Indexes and Yields
The DAX index increased by 0.2% to 18,947.56; the CAC-40 index rose by 0.5% to 7,678.25; and the FTSE 100 index rose by 0.3% to 8,406.11.
For the week, the DAX index advanced 2%, the CAC-40 index declined 1.1%, and the FTSE 100 index gained 1.5%.
The yield on 10-year German bonds edged higher to 2.25%, French bonds inched down to 2.97%, the UK gilts edged up to 3.97%, and Italian bonds increased to 3.64%.
The euro edged down to $1.10; the British pound inched higher to $1.31; and the U.S. dollar weakened to 84.89 Swiss cents.
Brent crude decreased $0.11 to $78.94 a barrel, and the Dutch TTF natural gas rose by €0.65 to €39.93 per MWh.
Europe Stock Movers
ThyssenKrupp AG decreased 0.3% to €3.22, and the chairman and CEO of the steel division and five board members resigned after disagreeing with the parent company about the future direction of the business.
Ambu plunged 14.5% to DKK 131.30, and the Danish medical device company reported disappointing results in its fiscal third quarter.
Revenue increased 15.7% to DKK 1.38 billion, and operating earnings before special items rose to DKK 178 million from DKK 91 million.
Endoscopy solutions' organic revenue growth slowed to 18%, driven by a 9.9% increase in the pulmonology division, and anesthesia and patient monitoring organic revenue increased by 10.9%.
Banks advanced in the region after lower inflation stoked speculation of a lower interest rate in the eurozone.
Societe Generale increased 1.2% to €21.93, BNP Paribas rose 0.8% to €62.61, Intesa Sanpaolo added 1.3% to €3.78, UniCredit edged higher 0.8% to €37.18, and Deutsche Bank gained 0.5% to €14.75.
- Akira Ito
- 30 Aug, 2024
- Tokyo
Benchmark indexes in Tokyo advanced in Friday's trading, and investors reviewed the latest updates on retail sales, the jobless rate, and Tokyo-area inflation.
The Nikkei 225 and Topix indexes gained 0.7% and closed nearly unchanged in August after falling sharply earlier in the month.
Stocks plunged in the first week of August following the Bank of Japan's hawkish shift to an interest rate stance, leading to the yen's rally and the unwinding of the carry trade.
Investor sentiment recovered over the next three weeks after worries of a U.S. economic slowdown eased and the central bank reassured markets that it would not raise rates further when markets are unstable.
The yen traded at 144.93 against the U.S. dollar, nearly unchanged from the previous session, but the possibility of a rate hike by the Bank of Japan in three weeks loomed.
Japan's unemployment rate increased to 2.7% in July from 2.5% in the previous month, the Ministry of Internal Affairs and Communications reported Friday.
The jobless rate rose to the highest level since August 2023.
The number of unemployed increased by 110,000 to 1.87 million, while employment fell by 200,000 to 67.66 million, and the labor force shrank by 90,000 to 69.54 million.
At the same time, the jobs-to-applicants ratio increased to 1.24 from 1.23 in June.
Core consumer price inflation for the Ku-area of Tokyo increased for the fourth month in a row and increased to a six-month high, the Statistics Bureau of Japan reported Friday.
Core consumer price inflation increased to 2.4% in August from 2.2% in July and matched the level in March.
Meanwhile, overall consumer price inflation rose to 2.6% in August from 2.2% in July.
Retail sales in Japan advanced 2.6% from a year ago in July, slowing from a 3.8% increase in June, the Ministry of Economy, Trade & Industry reported in a separate report on Friday.
On a monthly basis, retail sales advanced 0.2%, slower than 0.6% in the previous month.
Retail sales advanced for the 28th month in a row as rising wages contributed to the growth in retail sales, driven by a 9.6% increase in non-store sales, a 6.3% rise in automobile sales, and pharmaceuticals & cosmetics by 5.1%.
Industrial production in July increased 2.7%, the Ministry of Economy, Trade & Industry said in a separate report on Friday.
The ministry also adjusted its production growth estimate and acknowledged the volatile nature of the series.
Industrial production is expected to slow to 2.2% in August and shrink 3.3% in September.
Japan Stock Movers
The Nikkei 225 stock average increased 0.7% to 38,647.75, and the Topix index gained 0.73% to 2,712.63.
Tech stocks, banks, and industrial conglomerates were among the leading gainers in Tokyo in Friday's trading.
Tokyo Electron, Avantest, Screen Holdings, and Lasertec rose between 0.4% and 2%.
Retailers also participated in Friday's market rally.
Fast Retailing Co. increased 0.3% to ¥46,650.0, Aeon Co. declined 1.8% to ¥3,649.0, Isetan Mitsukoshi rose 0.5% to ¥2,193.0, and Seven & I decreased 0.9% to ¥2,098.50.
Mitsubishi UFJ Financial rose 1% to ¥1,528.0, Sumitomo Mitsui Financial decreased 0.2% to ¥9,550.0, and Mizuho Financial Group added 0.4% to ¥3,009.0.
Furukawa Electric rose 4.7% to ¥3,600.0, TDK Corp. added 3.5% to ¥9,847.0, and Taiyo Yuden gained 2.2% to ¥3,596.0.
Terumo Corp. declined 2.8% to ¥2,689.50 and Nitori Holdings dropped 2.9% to ¥21,720.0.
- Li Chen
- 30 Aug, 2024
- Hong Kong
Stocks in Hong Kong and Shanghai advanced after bargain hunters returned to acquire tech and leading vehicle maker stocks.
The Hang Seng index and the CSI 300 index advanced 2% and extended weekly gains after two months of turbulent trading.
The Hang Seng index closed above 18,000 for the first time since May as investors searched for bargains amid beaten-down tech stocks and electric vehicle makers.
Electric vehicle makers rebounded between 3% and 11% following a sell-off in the previous session after the leading companies reported rising revenue and earnings, but margins continued to decline amid an intense price war.
Market sentiment further improved after the U.S. second-quarter GDP growth was revised higher to 3.0% from the previous estimate of 2.8% and 1.4% in the first quarter.
For the week, the Hang Seng index advanced 2.0% and the CSI index gained 0.3%.
China Stock Movers
The Hang Seng index increased 2.2% to 18,166.76, and the CSI 300 index rose 2% to 3,342.08.
Li Auto Group gained 10.5% to HK $80.90, BYD Group added 6.6% to HK $242.60, Xpeng increased 9.4% to HK $32.15, and Geely Automobile closed up 3.3% to HK $8.92.
HSBC Holdings increased 0.8% to HK $68.85, and the newly appointed chief executive Georges Elhedery announced a management shakeup.
Elhedery is set to assume the CEO position next week and appointed a new head of the global wealth management unit and created a leadership position for digital banking and technology development.
Baidu increased 2.5% to HK $83.55, Meituan jumped 4.2% to $120.60, Alibaba Group gained 3.4% to HK $81.85, and Tencent Holdings increased 1.8% to HK $384.40.
- Arun Goswami
- 30 Aug, 2024
- Mumbai
Benchmark indexes in Mumbai extended gains for the third week in a row amid improving global market sentiment and a weakening inflation outlook in the U.S. and Europe.
The Sensex index increased by 0.3% to 82,361.39, and the Nifty index rose 0.3% to 25,225.80.
On the Mumbai stock exchange, 122 stocks traded at their 52-week highs, and 9 stocks traded at their 52-week lows.
Sugar stocks were in focus after the central government removed the restriction on using cane juice to make ethanol effective November 1.
Balrampur Chini Mills gained 5.4% to₹610.40, Shree Renuka Sugars increased 0.6% to ₹50.72, Bajaj Hindusthan Sugar jumped 6.5% to ₹43.42, and Kothari Sugars and Chemicals added 5.2% to ₹58.31.
Spicejet Ltd. decreased 5.6% to ₹62.50, and the aviation regulator placed the budget carrier under immediate "enhanced surveillance' to ensure safety of the operations.
ITI Ltd. increased 2.6% to ₹307.15, and the company won an order to provide 500 electronic voting machines to the election commission of West Bengal.
CDSL added 2.4% to ₹1,462.80, and the SEBI approved the appointment of Nehal Vora as the managing director and chief executive officer of the company.
Interglobe Aviation advanced 1.8% to ₹4,846.35, and the promoter entity controlled by the founder Rakesh Gangwal has sold a 5.24% stake in the company for ₹9,549 crore.
Jai Corporation declined 5.1% ₹372.40, and the diversified engineering and infrastructure company's board approved the stock buyback plan of 29.44 lakh shares at a price of ₹400 per share from shareholders on record September 10.
The company plans to acquire up to a 1.65% stake for ₹177.8 crore.
NBCC India Ltd. declined 3.9% to ₹187.20 after the company sold its entire inventory of office and commercial space inventory at World Trade Center, Sarojini Nagar, and downtown locations in New Delhi for ₹14,800 crore.
- Alexander Garcia
- 29 Aug, 2024
- Miami
Stocks on Wall Street extended recovery rally in the fourth week and rebound from the decline in the previous session after investors reviewed the latest results from artificial intelligence leader Nvidia Corp., Salesforce, Dollar General, and Best Buy.
Nvidia reported a surge in revenue and earnings, exceeding market forecasts, and the company issued a cautious sales growth outlook in the current quarter.
Despite the company's stellar quarter, Nvidia's stock faced selling in the early trading as short-term traders chose to lighten their holdings.
In other earnings news, Dollar General lowered its annual sales, earnings, and comparable sales outlook, citing stretched consumers amid high cost of living.
Best Buy reported better-than-expected quarterly results after comparable same-store sales fell at a slower pace from a year ago, but Salesforce's quarterly results exceeded market expectations.
U.S. Second Quarter GDP Growth Revised Higher
On the economic front, the U.S. economic growth in the second quarter was revised higher to 3.0% from the previous estimate of 2.8% and from 1.4% in the first quarter, the Bureau of Economic Analysis reported Thursday.
International Goods Deficit Widened In July
The U.S. goods trade deficit widened to $102.7 billion in July from the downwardly revised $96.6 billion in the previous month, according to the preliminary estimate by the U.S. Census Bureau.
The goods deficit was the widest in over two years, after imports expanded by 2.3% from the previous month to $275.6 billion and exports were flat at $172.9 billion.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.9% to 5,644.96, the Nasdaq Composite rose 1.2% to 17,771.48, and the Russell 2000 index advanced 1.3% to 2,217.42.
The yield on 2-year Treasury notes edged higher to 3.89%, 10-year Treasury notes increased to 3.86%, and 30-year Treasury bonds inched lower to 4.14%.
WTI crude oil increased $1.41 to $75.93 a barrel, and natural gas prices edged up 4 cents to $2.14 a thermal unit.
Gold fell by $14.85 to $2,522.93 an ounce, and silver increased by $0.33 to $29.50.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.44.
U.S. Stock Movers
Semiconductor-related stocks were under pressure after Nvidia's current quarter sales estimate fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, and dramatic transformation of the company have attracted worldwide attention, catapulting the company's valuation above one trillion only a few months ago.
The company's results are now viewed as a proxy for artificial intelligence spending by tech companies and provide critical support for the tech stock rally in 2024.
Nvidia said revenue in the fiscal second quarter ending in July soared 122% to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors lofty expectations.
Salesforce increased 4.5% to $270.50, and the customer relations management software developer reported better-than-expected fiscal second quarter results.
In addition, the company said chief financial officer Amy Weaver will step down.
Crowdstrike Holdings declined 1.3% to $260.78, and the cybersecurity company surpassed revenue and earnings expectations set by analysts.
Dollar General plunged 26% to $92.38, after the discount store chain operator reported weaker-than-estimated sales and earnings in the latest quarter and slashed its annual outlook.
Revenue in the second quarter increased 4.2% to $10.2 billion, net income dropped 20.2% to $374.2 million from $468.8 million, and diluted earnings per share decreased 20% to $1.70 from $2.13 a year earlier.
The retailer lowered its annual sales outlook to between 4.7% and 5.3% from the previous estimate between 6.0% and 6.7%, with the same store sales range between 1.0% and 1.7% compared to the previous range between 2.0% and 2.7%.
The company estimated full-year diluted earnings per share to range between $5.50 and $6.20, lower than the previously estimated range between $6.80 and $7.55.
Best Buy Company soared 14.2% to $100.45 after the electronics retailer reported better-than-estimated profit and lifted its annual adjusted earnings outlook.
Net sales in the quarter dropped to $9.29 billion from $9.58 billion, net income in the fiscal fourth quarter increased to $291 million from $274 million, and diluted earnings per share rose to $1.34 from $1.25 a year earlier.
The company said comparable sales in the quarter decreased 2.3%, compared with a shrink of 6.2% in the period a year earlier.
The retailer now expects full-year adjusted earnings per share in the range of $6.10 to $6.35, up from the previously estimated range of $5.75 to $6.20.
EU Inflation Outlook Weakened, Passenger Car Registration Edged Slightly Higher
European market indexes advanced for the third consecutive day in a row amid rising hopes of a possible rate cut in September.
Benchmark indexes in Frankfurt advanced 0.7% after a report showed inflation in six key states in Germany in August inched lower, lifting hopes of a rate cut.
The euro edged lower after Germany's inflation eased more than expected in August, setting the stage for a possible rate cut in September.
Consumer price inflation slowed to 1.9% in August from 2.3% in July, the lowest level since March 2023, according to data released by the Federal Statistical Office, or Destatis.
Spain's annual inflation rate declined to a one-year low, according to a preliminary report released by the National Statistics Institute on Thursday.
Consumer price inflation eased to 2.2% in August from 2.8% in July, mainly because of the decline in fuel prices.
The core rate of inflation, which excludes volatile food and energy prices, slowed to 2.7%, the lowest since January 2022, and down from 2.8% in July.
Bond yields in the euro zone eased following the easing of inflation, raising the prospect of a possible rate cut in September after the policy meeting on September 12.
EU Passenger Car Sales Growth Slowed in July
Passenger car registration in the European Union increased slowed to 0.2% in July from 4.3% in the prior month, the European Automobile Manufacturers' Association reported Thursday.
Car registration increased to 852,051 units in July, driven by mixed results in the four largest markets in the region.
Registrations from a year ago increased 4.7% in Italy, 3.4% in Spain, but declined 2.3% in France and 2.1% in Germany.
Battery electric car registration declined 10.8% to 102,700 units, with total market share shrank to 12.1% from 13.5% a year earlier, driven largely by the decline of 36.8% in Germany.
Hybrid-electric vehicles continued to be in favor in July, with car registrations rising by 25.7% to 273,003 units.
All four of the largest markets recorded double-digit gains, and sales surged in France by 47.4%, Spain by 31.5%, Germany by 22.4%, and Italy by 17.4%.
This increase in sales lifted the hybrid-electric car market share to 32%, up from 25.5% a year ago.
For the first seven months of 2024, car registration increased 3.9% from the previous year to 6.5 million.
Europe Indexes and Yields
The DAX index increased by 0.6% to 18,912.57; the CAC-40 index rose by 0.8% to 7,640.95; and the FTSE 100 index rose by 0.4% to 8,379.64.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched down to 2.94%, the UK gilts edged up to 3.98%, and Italian bonds increased to 3.63%.
The euro edged down to $1.10; the British pound inched higher to $1.31; and the U.S. dollar weakened to 84.34 Swiss cents.
Brent crude decreased $1.29 to $79.92 a barrel, and the Dutch TTF natural gas rose by €0.94 to €39.24 per MWh.
Europe Stock Movers
Automakers edged slightly higher after passenger car registration in the European Union advanced in July.
Volkswagen Group AG edged up 0.1% to €103.50, Mercedes-Benz Group added 0.6% to €62.55, BMW increased 0.2% to €83.66, and Renault inched up 0.4% to €43.03.
British bank stocks rebounded between 1% and 2% and reversed losses in the previous session on the worry that the latest budget from the new government could impose additional taxes on the sector.
HSBC Holdings jumped 0.5% to 662.90 pence, Barclays PLC advanced 1.4% to 227.10, NatWest Group PLC inched up 0.5% to 339.80 pence, and Lloyds Banking Group jumped 0.9% to 339.80 pence.
GSK plc increased 0.6% to 1,660.50 pence after the pharmaceutical company's RSV received approval for a wider use in adults in Europe.
Delivery Hero SE soared 10% to €25.85 after the food delivery service provider reported better-than-expected results in the first half.
Revenue increased to €3.09 billion from €2.6 billion a year earlier, driven by an increase in gross merchandise volume to €11.89 billion from €11.08 billion.
The company reiterated its annual gross merchandise volume to increase between 7% and 9%, revenue to jump between 18% and 21%, and adjusted operating earnings between €725 million and €775 million.
Japan's Nikkei 225 Index Extended Losses to Third Consecutive Day Amid Weak Tech Stocks
Benchmark indexes in Tokyo struggled to advance for the third day in a row, and losses in technology stocks outweighed gains in other sectors.
Semiconductor-related stocks were under pressure in Tokyo after Nvidia's current quarter sales outlook fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, and dramatic transformation of the company have attracted worldwide attention, catapulting the company's valuation above one trillion only a few months ago.
The company's results are now viewed as a proxy for artificial intelligence spending by tech companies and provide critical support for the tech stock rally in 2024.
Nvidia said revenue in the fiscal second quarter ending in July soared 122% to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors lofty expectations.
Closer to home, the yen weakened 0.13 to 144.53 yen against the U.S. dollar after comments from Deputy Governor Ryozo Himino soothed market anxieties about future rate paths.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.1% to 38,352.12, and the broader Topix index declined 0.1% to 2,692.15.
Semiconductor stocks plunged, tracking losses in Nvidia's stock in after-hours trading in New York.
Tokyo Electron, Advantest, Screen Holding, Disco Corp., and Lasertec fell between 0.5% and 4%.
Nidec declined 3.3% to ¥5,887.0, ZOZO dropped 3% to ¥4,615.0, Shiseido fell 2.2% to ¥3,271.0, and Rakuten Group eased 4.3% to ¥1,002.0.
However, Sompo Holding increased 2.6% to ¥3,421.0, and Taiyo Yuden advanced 2.2% to ¥3,506.0.
Sumitomo Mitsui Financial declined 0.4% to ¥9,597.0, Mitsubishi UFJ Financial increased 0.4% to ¥1,516.0, and Mizuho Financial Group fell 0.4% to ¥3,003.0.
Toyota Motor decreased 0.7% to ¥2,726.0, Honda Motor increased 0.7% to ¥1,583.0, and Nissan Motor plunged 1.8% to ¥420.20.
EV Makers In China Report Weakening Margins, Meituan Earnings Soared
Stocks in Hong Kong and Shanghai faced another day of selling pressure, and electric vehicle makers led the decliners in Hong Kong trading.
The Hang Seng index fell 0.3% and the CSI 300 index decreased 0.2% after Li Auto reported weaker-than-expected earnings and a sharp decline in margins.
The intense price war among electric vehicle makers finally caught up with leading companies in the sector, and Li Auto's results reflected the worsening market environment.
Moreover, semiconductor-related stocks were under pressure in Hong Kong and mainland China after Nvidia's current quarter sales outlook fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, reported revenue soared 122% from a year ago to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors expectations.
Tech stocks declined despite the shopping platform operator Meituan reporting a sharp jump in profit in the second quarter.
China Stock Movers
The Hang Seng index declined 0.3% to 17,636.0 and the CSI 300 index dropped 0.2% to 3,278.07.
Li Auto decreased 8.3% to HK $74.35 and BYD declined 1.3% to HK $223.0 after the electric vehicle makers reported their quarterly results.
Li Auto profit in the second quarter soared 86% to 1.1 billion yuan, and gross margin shrank 1.1 percentage points to 19.5%.
Li Auto said unit sales in the second quarter increased 35.1% to 108,581, and the electric vehicle maker estimated sales in the current quarter to range between 145,000 and 155,000 unis.
BYD said first-half profit increased to 13.6 billion yuan, resulting in an increase of 32.8% from a year ago in the second quarter to 9.1 billion yuan.
China is the world's largest electric vehicle market, with sales of battery-operated cars now accounting for more than 50% of all passenger car sales in the country.
Meituan jumped 9.3% to HK $113.70, and the Chinese's largest shopping platform operator reported a jump in revenue and earnings in the second quarter.
Revenue increased 21% to 82 billion yuan from 68 billion yuan, and net income soared 142% to 11 billion yuan from 4.7 billion yuan a year ago.
On-demand transactions in the quarter rose 14% to 6.1 billion, driven by an increase in products available for sale and several campaigns for discounted delivery services.
China Mengniu Dairy Company jumped 9.5% to HK $13.14 after the company announced a stock buyback worth HK $2 billion.
- Scott Peters
- 29 Aug, 2024
- New York City
Semiconductor-related stocks were under pressure after Nvidia's current quarter sales estimate fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, and dramatic transformation of the company have attracted worldwide attention, catapulting the company's valuation above one trillion only a few months ago.
The company's results are now viewed as a proxy for artificial intelligence spending by tech companies and provide critical support for the tech stock rally in 2024.
Nvidia said revenue in the fiscal second quarter ending in July soared 122% to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors lofty expectations.
Salesforce increased 4.5% to $270.50, and the customer relations management software developer reported better-than-expected fiscal second quarter results.
In addition, the company said chief financial officer Amy Weaver will step down.
Crowdstrike Holdings declined 1.3% to $260.78, and the cybersecurity company surpassed revenue and earnings expectations set by analysts.
Dollar General plunged 26% to $92.38, after the discount store chain operator reported weaker-than-estimated sales and earnings in the latest quarter and slashed its annual outlook.
Revenue in the second quarter increased 4.2% to $10.2 billion, net income dropped 20.2% to $374.2 million from $468.8 million, and diluted earnings per share decreased 20% to $1.70 from $2.13 a year earlier.
The retailer lowered its annual sales outlook to between 4.7% and 5.3% from the previous estimate between 6.0% and 6.7%, with the same store sales range between 1.0% and 1.7% compared to the previous range between 2.0% and 2.7%.
The company estimated full-year diluted earnings per share to range between $5.50 and $6.20, lower than the previously estimated range between $6.80 and $7.55.
Best Buy Company soared 14.2% to $100.45 after the electronics retailer reported better-than-estimated profit and lifted its annual adjusted earnings outlook.
Net sales in the quarter dropped to $9.29 billion from $9.58 billion, net income in the fiscal fourth quarter increased to $291 million from $274 million, and diluted earnings per share rose to $1.34 from $1.25 a year earlier.
The company said comparable sales in the quarter decreased 2.3%, compared with a shrink of 6.2% in the period a year earlier.
The retailer now expects full-year adjusted earnings per share in the range of $6.10 to $6.35, up from the previously estimated range of $5.75 to $6.20.
American Eagle Outfitters declined 6.6% to $20.26, and the apparel retailer reported weaker-than-estimated sales in the second quarter.
The retailer said revenue in the second quarter increased 8% to $1.3 billion from $1.2 billion, net income advanced to $77.3 million from $48.5 million, and diluted earnings per share rose to 39 cents from 25 cents a year earlier.
The company estimated comparable store sales in 2024 to increase between 3% and 4% and operating earnings to range between $120 million and $140 million.
The young-adult-focused apparel retailer has struggled to lift its store sales as shoppers shift to online, where retailers are struggling with intense price competitions from China-based shopping platforms.
- Barry Adams
- 29 Aug, 2024
- New York City
Stocks on Wall Street attempted to rebound from the decline in the previous session after investors reviewed the latest results from artificial intelligence leader Nvidia Corp., Salesforce, Dollar General, and Best Buy.
Nvidia reported a surge in revenue and earnings, exceeding market forecasts, and the company issued a cautious sales growth outlook in the current quarter.
Despite the company's stellar quarter, Nvidia's stock faced selling in the early trading as short-term traders chose to lighten their holdings.
In other earnings news, Dollar General lowered its annual sales, earnings, and comparable sales outlook, citing stretched consumers amid high cost of living.
Best Buy reported better-than-expected quarterly results after comparable same-store sales fell at a slower pace from a year ago, but Salesforce's quarterly results exceeded market expectations.
On the economic front, the U.S. economic growth in the second quarter was revised higher to 3.0% from the previous estimate of 2.8% and from 1.4% in the first quarter, the Bureau of Economic Analysis reported Thursday.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.3% to 5,608.56, the Nasdaq Composite rose 0.4% to 17,642.17, and the Russell 2000 index fell 0.7% to 2,188.14.
The yield on 2-year Treasury notes edged higher to 3.89%, 10-year Treasury notes increased to 3.86%, and 30-year Treasury bonds inched lower to 4.14%.
WTI crude oil increased $0.50 to $75.02 a barrel, and natural gas prices edged down 4 cents to $2.05 a thermal unit.
Gold fell by $1.03 to $2,506.81 an ounce, and silver increased by $0.14 to $29.32.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 101.44.
U.S. Stock Movers
Semiconductor-related stocks were under pressure after Nvidia's current quarter sales estimate fell short of some analysts high expectations.
Nvidia, the leading artificial intelligence technology player, and dramatic transformation of the company have attracted worldwide attention, catapulting the company's valuation above one trillion only a few months ago.
The company's results are now viewed as a proxy for artificial intelligence spending by tech companies and provide critical support for the tech stock rally in 2024.
Nvidia said revenue in the fiscal second quarter ending in July soared 122% to $30 billion, net income advanced 168% to $16.6 billion from $6.2 billion, and earnings per share rose to 67 cents from 25 cents a year ago.
The company guided revenue in the current quarter of $32.5 billion, which fell short of some investors lofty expectations.
Salesforce increased 4.5% to $270.50, and the customer relations management software developer reported better-than-expected fiscal second quarter results.
In addition, the company said chief financial officer Amy Weaver will step down.
Crowdstrike Holdings declined 1.3% to $260.78, and the cybersecurity company surpassed revenue and earnings expectations set by analysts.
Dollar General plunged 26% to $92.38, after the discount store chain operator reported weaker-than-estimated sales and earnings in the latest quarter and slashed its annual outlook.
Revenue in the second quarter increased 4.2% to $10.2 billion, net income dropped 20.2% to $374.2 million from $468.8 million, and diluted earnings per share decreased 20% to $1.70 from $2.13 a year earlier.
The retailer lowered its annual sales outlook to between 4.7% and 5.3% from the previous estimate between 6.0% and 6.7%, with the same store sales range between 1.0% and 1.7% compared to the previous range between 2.0% and 2.7%.
The company estimated full-year diluted earnings per share to range between $5.50 and $6.20, lower than the previously estimated range between $6.80 and $7.55.
Best Buy Company soared 14.2% to $100.45 after the electronics retailer reported better-than-estimated profit and lifted its annual adjusted earnings outlook.
Net sales in the quarter dropped to $9.29 billion from $9.58 billion, net income in the fiscal fourth quarter increased to $291 million from $274 million, and diluted earnings per share rose to $1.34 from $1.25 a year earlier.
The company said comparable sales in the quarter decreased 2.3%, compared with a shrink of 6.2% in the period a year earlier.
The retailer now expects full-year adjusted earnings per share in the range of $6.10 to $6.35, up from the previously estimated range of $5.75 to $6.20.
- Inga Muller
- 29 Aug, 2024
- Frankfurt
The weakening inflation outlook in the Euro Area supported the case for a possible rate cut after the next policy meeting in September.
The EU's passenger car registration edged slightly higher, and more buyers preferred hybrid cars.
The DAX index increased by 0.7% to 18,900.39; the CAC-40 index rose by 0.7% to 7,630.93; and the FTSE 100 index rose by 0.2% to 8,366.16.
The yield on 10-year German bonds edged higher to 2.24%, French bonds inched down to 2.94%, the UK gilts edged up to 3.98%, and Italian bonds increased to 3.63%.
Automakers edged slightly higher after passenger car registration in the European Union advanced in July.
Volkswagen Group AG edged up 0.1% to €103.50, Mercedes-Benz Group added 0.6% to €62.55, BMW increased 0.2% to €83.66, and Renault inched up 0.4% to €43.03.
British bank stocks rebounded between 1% and 2% and reversed losses in the previous session on the worry that the latest budget from the new government could impose additional taxes on the sector.
HSBC Holdings jumped 0.5% to 662.90 pence, Barclays PLC advanced 1.4% to 227.10, NatWest Group PLC inched up 0.5% to 339.80 pence, and Lloyds Banking Group jumped 0.9% to 339.80 pence.
GSK plc increased 0.6% to 1,660.50 pence after the pharmaceutical company's RSV received approval for a wider use in adults in Europe.
Delivery Hero SE soared 10% to €25.85 after the food delivery service provider reported better-than-expected results in the first half.
Revenue increased to €3.09 billion from €2.6 billion a year earlier, driven by an increase in gross merchandise volume to €11.89 billion from €11.08 billion.
The company reiterated its annual gross merchandise volume to increase between 7% and 9%, revenue to jump between 18% and 21%, and adjusted operating earnings between €725 million and €775 million.