- Bridgette Randall
- 03 May, 2024
- Frankfurt
European markets advanced in Friday's trading and trimmed weekly losses after investors debated future rate paths and reacted to the latest corporate quarterly results.
Benchmark indexes in Frankfurt and Paris edged after European Central Bank policymaker Yannis Stournaras estimated three rate cuts in the remainder of 2024.
Moreover, benchmark indexes in London advanced after service sector growth accelerated in April, S&P Global reported in its final estimate on Friday.
Eurozone Jobless Rate Held Steady at Record Low
The jobless rate in the eurozone held at a record low of 6.5% in March, matching the rate in the previous three months, Eurostat reported Friday.
The number of jobless declined by 94,000 to 11.09 million, and the youth unemployment rate, those younger than 25 seeking jobs, decreased to 14.1% from 14.4% in February.
Among the four largest economies in the currency union, Spain led with the highest jobless rate of 11.7%, followed by France with 7.3%, Italy with 72%, and Germany with 3.2%.
UK Service Growth Accelerated In April
The UK Service Purchasing Managers' Index increased to 55.0 in April from 53.1 in March, higher than the preliminary estimate of 54.9.
Investors also overlooked the decline in industrial output in France, mainly because of the decline in food and beverage manufacturing.
France's Industrial Output Edged Lower
France's industrial output declined 0.3% from the previous month in March, reversing the 0.2% increase in February, the statistical agency INSEE reported Friday.
France's industrial production declined in six of the last twelve months, indicating an uneven economic recovery amid elevated inflation and weak export demand.
However, industrial production rose 0.7% from a year ago in March.
Europe Indexes and Yields
The DAX index increased by 0.5% to 17,988.51; the CAC-40 index rose by 0.6% to 7,965.24; and the FTSE 100 index inched higher by 0.5% to a new intraday record of 8,214.37.
The yield on 10-year German bonds edged down to 2.53%; French bonds inched lower to 3.03%; the UK gilts edged lower to 4.28%; and Italian bonds inched higher to 3.85%.
The euro edged higher to $1.074; the British pound inched higher to $1.255; and the U.S. dollar edged higher to 90.69 Swiss cents.
Brent crude increased $0.23 to $83.90 a barrel, and the Dutch TTF natural gas fell by €0.33 to €30.57 per MWh.
Europe Stock Movers
Henkel AG increased 6.6% to €78.78 after the German household products maker lifted its sales and earnings outlook for 2024.
Daimler Truck Holding decreased 4.9% to €40.49 after the German truck maker reported a decline in global sales in the first quarter.
Krones AG declined 1.6% to €122.60 despite the German packaging and bottling equipment maker reporting an increase in first-quarter profit and confirming its full-year 2024 outlook.
Societe Generale declined 3.8% to €24.80 after the French bank reported a smaller-than-expected 22% decline in earnings and reiterated its 2024 outlook.
Credit Agricole rose 3.3% to €15.10 after the French bank reported a 55% surge in first-quarter earnings, beating market expectations by a wide margin.
Future plc increased 1.5% to 708.74 pence, and the UK-based publishing company appointed Sharjeel Suleman as the company's chief financial officer.
Trainline jumped 6.6% to 320.97 pence after an online train and bus ticketing platform operator reported an increase in earnings and announced its plans to expand its stock buyback activities over the next year.
- Li Chen
- 03 May, 2024
- Hong Kong
Market indexes in Hong Kong advanced and inched further into bull territory as investors searched for bargains in tech and financial services stocks.
The Hang Seng index increased 1.1% to 18,413.79, and the Hang Seng Tech index jumped 2% after Apple announced a $100 billion stock repurchase plan.
Financial markets in mainland China are closed for a holiday, and markets are scheduled to reopen on Monday after the end of the Golden Week holidays.
The Hang Seng index is up more than 20% from its low reached on January 22, amid a slew of positive earnings and regulatory measures to revive market sentiment.
Market sentiment was further bolstered after China's top policymakers announced additional measures in a meeting held on April 30.
Policymakers are looking for banks to lower reserve ratios, encourage the People's Bank of China to lower rates, and provide additional financing to top property developers.
Policymakers are seeking to take steps that support real economic activities, such as increasing lending to small and medium businesses, which could lead to more job creation.
The Hang Seng index extended weekly gains to 6% and extended this year's increase to close to 10%, leading other large financial markets.
Tech stocks extended gains following the rally in tech stocks in overnight trading in New York.
Tencent Holdings gained 1% to HK$363.20, Alibaba Group advanced 3.5% to HK$78.75, and Meituan jumped 0.8% to HK$119.30.
Banks and financial services stocks traded mixed but extended this week's gains.
Bank of China decreased 0.3% to HK$119.30, China Construction Bank added 0.8% to HK$5.17, and HSBC Bank was unchanged at HK$69.25.
Chinese automakers generally traded higher, and electric vehicle makers inched higher after reporting mixed vehicle sales in April two days ago.
BYD added 0.6% to HK$226.40, Li Auto jumped 2.7% to $110.50, Xpeng increased 4.2% to HK$35.60, and Geely Automotive added 1.1% to HK$9.91.
- Arun Goswami
- 03 May, 2024
- Mumbai
Stocks in Mumbai advanced in Friday's trading and extended weekly gains to 2% and the year-to-date's advance to 4.8%.
The Sensex index increased by 0.5% to 75,028.02, and the Nifty index rose by 0.5% to 22,774.70.
On the Mumbai stock exchange, 120 stocks traded at their 52-week highs, and 3 stocks traded at their 52-week lows.
Adani Enterprises decreased by 0.9% to ₹3,029.0 after the Adani family's holding company reported mixed quarterly results.
Revenue in the March quarter rose 1% to ₹29,180 crore and net income fell 38% to ₹451 crore from a year ago, respectively.
Dabur India rose 4.1% to ₹528.60 after the consumer product maker reported quarterly results.
Revenue in the March quarter increased by 5% to ₹2,814.6 crore, and net profit soared by 16.5% to ₹341 crore from a year ago, respectively.
CEAT Ltd. advanced by 2.2% to ₹2,625.0 after the tiremaker reported a decline in profit in its latest quarter.
Revenue in the March quarter rose by 4% to ₹2,991.85 crore and net income dropped by 22.6% to ₹102.3 crore from a year ago, respectively.
Coal India decreased by 0.5% to ₹452.0 after the natural resource company reported weaker-than-expected quarterly revenue.
Consolidated revenue in the March quarter declined 2% to 37,410 crore, and net income surged 26% to 8,682 crore from a year ago, respectively.
Zydus Lifesciences advanced 3.6% to ₹987.90 after the company said it agreed to acquire the remaining 25% stake in Bayer Zydus Pharma for ₹282 crore.
After the purchase, Zydus will control 100% of the company.
Ajanta Pharma soared 11% to ₹2,469.80 after the company announced a plan to buyback 10 lakh shares, or 0.82% of the outstanding shares of the company.
Blue Dart Express gained 2% to ₹6,367.50 after the parcel delivery company reported slightly positive quarterly results.
Revenue in the March quarter increased to 1,333.9 crore from 1,225.2 crore, and net income soared 12% to 77.8 crore from 69.8 crore a year ago, respectively.
- Alexander Garcia
- 02 May, 2024
- Miami
Investors shook off rate jitters and bid up stocks amid earnings optimism.
Benchmark indexes on Wall Street edged higher after investors shifted their attention to corporate quarterly results and key economic data releases.
The S&P 500 index and the Nasdaq Composite turned higher in early trading as investors reviewed the latest comments from Federal Reserve Chair Jerome Powell.
The U.S. Federal Reserve held steady in its policy rate range between 5.25% and 5.50%, as widely anticipated by most market participants.
The Federal Reserve also noted that inflation is still too high but added that it is unlikely that the next policy move will be a rate increase.
Fed Chairman Jerome Powell said that the central bank is prepared to keep rates high as long as needed until it gains greater confidence that inflation is on the path of its target rate of 2%.
The Federal Reserve also announced its plans to slow down its quantitative tightening starting June 1.
The move is likely to contribute to lowering interest rates and ease the liquidity crunch in the financial system.
The Federal Reserve is holding about $7.4 trillion of Treasury securities on its balance sheet, and the Fed has been shrinking its balance sheet after it expanded to $9 trillion at the start of 2022 from pre-pandemic $4 trillion.
The central bank plans to reduce its monthly sale of Treasury securities to $25 billion from the current target of up to $60 billion beginning June 1st.
Investors shook off rate jitters and bid up stocks amid earnings optimism.
On the economic front, initial claims of jobless benefits were below market expectations for the fourth week in a row, suggesting labor market tightness.
The initial jobless benefits claims were unchanged from the previous week at 208,000 in the week ending on April 27, the U.S. Department of Labor reported Thursday.
Continuing claims matched the previous claims at 1,774 million, the lowest since January, indicating persistently tight labor market conditions.
Trade Deficit Held Steady In March Near 10-month Low
The overall goods and service trade deficit was nearly unchanged in March, the Bureau of Economic Analysis reported Thursday.
Exports declined 2% from the previous month to $257.6 billion, and imports decreased 1.6% to $327.0 billion, resulting in a trade deficit of $69.4 billion.
Exports of goods decreased $5.1 billion to $171.3 billion and services fell $0.2 billion to $86.4 billion in March, after sales of civilian aircraft, travel services, and petroleum products fell.
Imports of goods decreased $4.3 billion to $263.8 billion, and services fell $1.1 billion to $63.2 billion in March, amid the decline in demand for passenger cars, pharmaceuticals, home goods, and travel services.
The deficit with China increased from $2.2 billion to $24.1 billion in March. Exports decreased $0.5 billion to $12.7 billion, and imports increased $1.7 billion to $36.8 billion.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.4% to 5,040.27, and the Nasdaq Composite rose 0.5% to 15,738,22.
The yield on 2-year Treasury notes edged higher to 4.95%, 10-year Treasury notes inched lower to 4.61%, and 30-year Treasury bonds edged lower to 4.75%.
WTI crude oil increased $0.09 to $79.09 a barrel, and natural gas prices increased 9 cents to $2.02 a thermal unit.
Gold decreased by $24.71 to $2,299.14 an ounce, and silver fell 19 cents to $26.56.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.70.
U.S. Stock Movers
DoorDash plunged 9.9% to $114.80 after the food delivery company reported a wider-than-expected loss in its latest quarter.
Carvana soared 35% to $118.0 after the automotive retailer reported higher-than-expected revenue in the first quarter.
eBay Inc. declined 3.8% to $49.11 after the online marketplace operator estimated weaker-than-expected revenue in the current quarter.
Qualcomm increased 5.2% to $172.78 after the advanced chipmaker reported better-than-expected earnings in its latest quarter and issued strong guidance for the current quarter.
Moderna rose 1.9% to $113.67 after the vaccine maker reported a smaller-than-expected quarterly loss in its latest quarter after the company trimmed operating costs.
Wayfair Inc. advanced 7.5% to $54.31 after the online furniture retailer reported a narrower loss in its latest quarter, partly driven by layoffs.
Peloton Interactive increased 13% to $3.61 after the company announced its plans to lay off 15% of its staff, and chief executive officer Barry McCarthy will be stepping down.
McCarthy will act as a strategic adviser to the company through the end of the year, and chairperson Karen Boone and director Chris Bruzzo will assume the roles of interim co-CEO.
Rate Anxieties Keep European Markets Volatile
European markets traded sideways as investors debated future interest rate paths and the manufacturing sector outlook.
Benchmark indexes in Frankfurt and Paris edged lower after the U.S. Federal Reserve held steady its benchmark interest rate range between 5.25% and 5.50%.
Investors debated the spillover effect of the higher-for-longer U.S. interest rates on the currency union's rate path.
The European Central Bank has signaled that it is ready to cut its interest rates as early as June, but the central bank has not clarified the size of or the number of subsequent cuts in the year.
Market sentiment was further dented after an ongoing downturn in the manufacturing sector deepened in April.
Manufacturing Sector Woes Deepened In April
HCOB Eurozone Manufacturing PMI declined to 45.7 in April from 46.1 in March, S&P Global reported in its final reading on Thursday.
Any reading below the 50-mark indicates contraction, and any reading above the 50-mark shows expansion.
Market indexes in London traded higher after strong earnings from Standard & Chartered and Shell PLC lifted market sentiment.
Europe Indexes and Yields
The DAX index decreased by 0.2% to 17,896.50.18; the CAC-40 index fell by 0.9% to 7,914.65; and the FTSE 100 index inched higher by 0.6% to 8,172.15.
The yield on 10-year German bonds edged up to 2.55%; French bonds inched lower to 3.04%; the UK gilts edged lower to 4.31%; and Italian bonds inched higher to 3.87%.
The euro edged higher to $1.069; the British pound inched higher to $1.251; and the U.S. dollar edged higher to 91.25 Swiss cents.
Brent crude increased $0.13 to $83.58 a barrel, and the Dutch TTF natural gas fell by €2.02 to €30.88 per MWh.
Europe Stock Movers
Shell PLC gained 1% to 2,847.51 pence after the oil giant reported better-than-expected first-quarter earnings and announced a $3.5 billion stock repurchase plan.
Standard Chartered increased 5.4% to 732.60 pence after the financial services provider reported stronger-than-expected first-quarter profit amid elevated interest rates and higher demand for its wealth management services.
Smurfit Kappa Group advanced 4.5% to 3,638.0 pence after the packaging material maker reported first-quarter revenue of €2.7 billion.
Hugo Boss declined 9.4% to €45.77 after the German fashion retailer reported better-than-expected first-quarter earnings and projected revenue growth in the current year.
Teleperformance increased 8.2% to €92.50 after the French business service provider said first-quarter revenue rose 26.7%, driven largely by the integration of the Dutch rival Majorel last year.
Novo Nordisk decreased 2.5% to DKK 875.60 despite the Danish pharmaceutical company reporting better-than-expected first-quarter earnings.
Vestas Wind System declined 3.2% to DKK 180.85 after the Danish wind turbine maker reported a surprise loss in the first quarter.
Tokyo Indexes Struggle After Tech Stock Weakness
Stocks in Tokyo declined, and the yen rebounded for the second day in a row, amid tech stock weakness and the possible intervention by the central bank.
The Nikkei and the Topix indexes lacked direction in Thursday's trading after the U.S. Federal Reserve held rates steady but signaled that the future rate path is highly uncertain.
Fed Chair Jerome Powell also ruled out the possibility of a rate hike in the immediate future and confirmed that inflation has moderated over the last year, but progress has stalled in recent months.
Closer to home, the minutes of the Bank of Japan's policy meeting held on March 18 and 19 showed Thursday that policymakers believe the central bank's inflation target of 2% is within reach.
Moreover, the monetary base increased 2.1% from a year ago in April to 689.896 trillion yen, and the adjusted monetary base soared 11.4% from a year ago. the Bank of Japan said Thursday.
The Japanese yen rebounded for the second day in a row to 155.70, stoking speculation that the Bank of Japan, in coordination with the ministry of finance, intervened for the second day in a row.
Tech stocks in the U.S. sold on the worry that higher rates are likely to stay elevated amid positive U.S. economic data and resilient labor market conditions.
The Nikkei 225 Stock Average decreased 0.07% to 38,245.08, and the Topix index declined a fraction to 2,729.17.
Tech stocks in Japan followed the weakness in New York.
Tokyo Electron, Advantest, Socionext, SoftBank, and Screen Holdings decreased between 0.3% and 1.8%.
Financial stocks were also among the leading decliners after the U.S. rate decision announcement.
Sumitomo Mitsui Group declined 1.2% to ¥8,881.0, Mitsubishi UFJ fell 0.5% to ¥1,557.50, and Mizuho Financial Group eased 0.3% to ¥3,010.0.
Sumitomo Pharma Plunges On Lowered Annual Outlook
Sumitomo Pharma dropped 7% to ¥373.0 after the company reported lower-than-estimated revenue and higher-than-estimated losses in the fiscal year 2024 ending in March.
Revenue was revised lower to 314.6 billion yen from the previous estimate of 317 billion yen, and net loss attributable to shareholders was revised higher to 315 billion yen from the previous estimate of 147 billion yen.
The loss per share was revised to 792.86 yen from the previous estimate of 354.90 yen.
The company also suspended its dividend after the sharp decline in core profit.
Hong Kong Stocks Rebound Amid Bargain Hunting
Stocks in Hong Kong advanced after investors returned from a holiday, and financial markets in China are closed for the week.
Optimism ruled Hong Kong trading after the U.S. Federal Reserve held steady its benchmark rate, driving financial and insurance stocks higher.
The Hong Kong Monetary Authority held its reference rate steady at 5.75%, following the move by the U.S. Federal Reserve, under its linked exchange rate system reflecting the Hong Kong dollar's peg to the U.S. dollar.
The interest rate move supported the rise in financial and insurance stocks, and HSBC, Ping An, and AIA rose between 0.9% and 3.5%.
Property developers rose after the interest rate decision announcement, and U.S. Federal Reserve Chair Jerome Powell ruled out rate hikes in the near future.
Longfor Group added 7.3% to HK$12.72, China Vanke soared 10.5% to $5.10, and China Resources Land jumped 4.5% to HK$29.65.
Henderson Land increased 1.4% to HK$24.20, and Sun Hung Kai Properties jumped 2.4% to HK$74.05.
The Hang Seng index rose 2.2% to 18,150.91, and the Hang Seng Tech index jumped 3.5%.
Tech leaders also participated in the market rally, and Tencent Holdings, Meituan, Baidu, and Alibaba Group jumped between 2% and 9%.
EV Makers Report Mixed Sales In April Amid Fierce Price War
Electric vehicle makers were in focus after the three leading makers reported mixed sales in April amid a brutal price war as the automakers struggled to gain market share amid slowing domestic demand growth.
Li Auto jumped 2.2% to HK$106.30 after the electric vehicle maker said April sales decreased 0.4% from the previous month to 25,787 units.
Sales in the first four months to April 2024 advanced 35.6% from a year ago to 106,187 units.
Xpeng soared 7.4% to HK$33.90 after the company said electric vehicle sales in April rose 4% from the previous month to 9,393 units.
Year-to-date sales rose 23% to 31,214 vehicles.
The company is engaged in a brutal price war amid fierce competition in the mid-price segment for cars priced between 200,000 and 300,000 yuan.
BYD jumped 4.3% to HK$225.60 after the largest electric vehicle maker in China said sales in April rose 3.6% to 313,245 units.
Year-to-date sales surged 49% to 210,295 units.
Nio soared 21.4% to HK$43.40 after the electric vehicle maker said April sales soared 31.6% from the previous month to 15,620 units, the largest monthly increase among the four leading automakers.
Sales in the first four months of April rose 21% from a year ago to 45,673 units.
- Brian Turner
- 02 May, 2024
- Washington, D.C.
The overall goods and service trade deficit was nearly unchanged in March, the Bureau of Economic Analysis reported Thursday.
Exports declined 2% from the previous month to $257.6 billion, and imports decreased 1.6% to $327.0 billion, resulting in a trade deficit of $69.4 billion.
Exports of goods decreased $5.1 billion to $171.3 billion and services fell $0.2 billion to $86.4 billion in March, after sales of civilian aircraft, travel services, and petroleum products fell.
Imports of goods decreased $4.3 billion to $263.8 billion, and services fell $1.1 billion to $63.2 billion in March, amid the decline in demand for passenger cars, pharmaceuticals, home goods, and travel services.
The deficit with China increased from $2.2 billion to $24.1 billion in March. Exports decreased $0.5 billion to $12.7 billion, and imports increased $1.7 billion to $36.8 billion.
- Barry Adams
- 02 May, 2024
- New York City
Benchmark indexes on Wall Street edged higher after investors shifted their attention to corporate quarterly results and key economic data releases.
The S&P 500 index and the Nasdaq Composite turned higher in early trading as investors reviewed the latest comments from Federal Reserve Chair Jerome Powell.
The U.S. Federal Reserve held steady in its policy rate range between 5.25% and 5.50%, as widely anticipated by most market participants.
The Federal Reserve also noted that inflation is still too high but added that it is unlikely that the next policy move will be a rate increase.
Fed Chairman Jerome Powell said that the central bank is prepared to keep rates high as long as needed until it gains greater confidence that inflation is on the path of its target rate of 2%.
The Federal Reserve also announced its plans to slow down its quantitative tightening starting June 1. The move is likely to contribute to lowering interest rates and ease the liquidity crunch in the financial system.
The central bank plans to reduce its monthly sale of Treasury securities to $25 billion from the current target of up to $60 billion beginning June 1st.
The Federal Reserve is holding about $7.4 trillion of Treasury securities on its balance sheet, and the Fed has been shrinking its balance sheet after it expanded to $9 trillion at the start of 2022 from pre-pandemic $4 trillion.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.6% to 5,046.63, and the Nasdaq Composite rose 0.7% to 15,672,89.
The yield on 2-year Treasury notes edged higher to 4.95%, 10-year Treasury notes inched lower to 4.61%, and 30-year Treasury bonds edged lower to 4.75%.
WTI crude oil increased $0.72 to $79.72 a barrel, and natural gas prices increased 4 cents to $1.97 a thermal unit.
Gold increased by $23.02 to $2,109.15 an ounce, and silver fell 47 cents to $26.21.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.70.
U.S. Stock Movers
DoorDash plunged 9.9% to $114.80 after the food delivery company reported a wider-than-expected loss in its latest quarter.
Carvana soared 35% to $118.0 after the automotive retailer reported higher-than-expected revenue in the first quarter.
eBay Inc. declined 3.8% to $49.11 after the online marketplace operator estimated weaker-than-expected revenue in the current quarter.
Qualcomm increased 5.2% to $172.78 after the advanced chipmaker reported better-than-expected earnings in its latest quarter and issued strong guidance for the current quarter.
Moderna rose 1.9% to $113.67 after the vaccine maker reported a smaller-than-expected quarterly loss in its latest quarter after the company trimmed operating costs.
Wayfair Inc. advanced 7.5% to $54.31 after the online furniture retailer reported a narrower loss in its latest quarter, partly driven by layoffs.
Peloton Interactive increased 13% to $3.61 after the company announced its plans to lay off 15% of its staff, and chief executive officer Barry McCarthy will be stepping down.
McCarthy will act as a strategic adviser to the company through the end of the year, and chairperson Karen Boone and director Chris Bruzzo will assume the roles of interim co-CEO.
- Scott Peters
- 02 May, 2024
- New York City
DoorDash plunged 9.9% to $114.80 after the food delivery company reported a wider-than-expected loss in its latest quarter.
Revenue increased 23% to $2.5 billion from $2.05 billion, net loss attributable to shareholders shrank to $25 million from $161 million, and diluted loss per share fell to 6 cents from 41 cents a year ago.
In the first quarter, total orders increased by 21% to 620 million, and gross sales volume rose by 21% to $19.2 billion, driven in part by a more than 100% increase in the new vertical, grocery delivery.
Free cash flow increased to $487 million from $316 million, and operating cash flow rose to $553 million from $397 million a year ago.
Carvana soared 35% to $118.0 after the automotive retailer reported higher-than-expected revenue in the first quarter.
Net sales in the first quarter rose to $3.06 billion from $2.60 billion, net income attributable to shareholders swung to a profit of $28 million from a loss of $160 million, and diluted earnings per share were 23 cents from a loss of $1.51 a year ago.
Vehicles sold in the first quarter rose 16% from a year ago to 91,878, and gross profit jumped to 19.3%.
Gross per unit in the first quarter jumped to $6,802 from $6,432 a year ago.
eBay Inc. declined 3.8% to $49.11 after the online marketplace operator estimated weaker-than-expected revenue in the current quarter.
Revenue in the first quarter increased 2% to $2.55 billion from $2.51 billion, net income declined 23% to $439 million from $569 million, and diluted earnings per share dropped to 85 cents from $1.05 a year ago.
The company estimated second-quarter revenue in the range of $2.49 billion and $2.54 billion, an increase between -1% and +1%.
The online marketplace operator estimated second-quarter diluted earnings per share between 76 cents and 81 cents.
Qualcomm increased 5.2% to $172.78 after the advanced chipmaker reported better-than-expected earnings in its latest quarter and issued strong guidance for the current quarter.
Revenue in the fiscal second quarter ending on March 24 rose 1% to $9.38 billion, net income surged 37% to $2.3 billion from $1.7 billion, and diluted earnings per share advanced 36% to $2.06 from $152 a year ago.
During the fiscal second quarter, the company returned $1.6 billion to stockholders, including cash dividends of $895 million, or 80 cents per share, and $731 million through repurchases of 5 million shares of its own common stock.
The company guided fiscal third quarter revenue to range between $8.8 billion and $9.6 billion and GAAP earnings per share between $1.74 and $1.94.
Moderna rose 1.9% to $113.67 after the vaccine maker reported a smaller-than-expected quarterly loss in its latest quarter after the company trimmed operating costs.
Wayfair Inc. advanced 7.5% to $54.31 after the online furniture retailer reported a narrower loss in its latest quarter, partly driven by layoffs.
Total net revenue in the first quarter declined 1.6% to $2.72 billion from $2.77 billion, net loss shrank to $248 million from $355 million, and diluted loss per share eased to $2.06 from $3.22 a year ago.
Active customers in the first quarter increased by 2.8% from a year ago to 22.3 million.
The company processed 9.6 million orders in the quarter, a decline of 1%, and repeat customers placed 7.7 million, an increase of 1.3% from a year ago, respectively.
The average order value in the first quarter decreased to $285 from $287 in the corresponding period a year ago.
Peloton Interactive increased 13% to $3.61 after the company announced its plans to lay off 15% of its staff, and chief executive officer Barry McCarthy will be stepping down.
McCarthy will act as a strategic adviser to the company through the end of the year, and chairperson Karen Boone and director Chris Bruzzo will assume the roles of interim co-CEO.
- Inga Muller
- 02 May, 2024
- Frankfurt
European markets lacked direction amid interest rate uncertainties and ongoing weakness in the manufacturing sector.
The DAX index decreased by 0.1% to 17,912.18; the CAC-40 index fell by 0.9% to 7,909.23; and the FTSE 100 index inched higher by 0.4% to 8,150.63.
The yield on 10-year German bonds edged up to 2.55%; French bonds inched lower to 3.04%; the UK gilts edged lower to 4.31%; and Italian bonds inched higher to 3.87%.
Shell PLC gained 1% to 2,847.51 pence after the oil giant reported better-than-expected first-quarter earnings and announced a $3.5 billion stock repurchase plan, which is expected to be completed in the second quarter.
Revenue in the first quarter decreased to $74.7 billion from $89.02 billion, net income dropped to $11.0 billion from $14.3 billion, and diluted earnings per share fell to $1.13 from $1.25.
The company announced a first-quarter cash dividend of 34.4 cents per share and added that it returned to shareholders $5 billion through repurchases of $2.8 billion and a cash dividend of $2.2 billion.
Standard Chartered increased 5.4% to 732.60 pence after the financial services provider reported stronger-than-expected first-quarter profit amid elevated interest rates and higher demand for its wealth management services.
Smurfit Kappa Group advanced 4.5% to 3,638.0 pence after the packaging material maker reported first-quarter revenue of €2.7 billion.
Hugo Boss declined 9.4% to €45.77 after the German fashion retailer reported better-than-expected first-quarter earnings and projected revenue growth in the current year.
The fashion group said revenue in the first quarter increased 5% to €1.01 billion from €968 million, driven by sales increases in both BOSS and HUGO brands, across all channels, and across all regions.
Net income in the quarter increased 7% to €41 million from €38 million, and earnings per share rose to 55 cents from 50 cents a year ago, respectively.
The company reiterated its full-year revenue between €4.30 billion and €4.45 billion, representing growth between 3% and 6%.
The fashion house estimated operating earnings to range between €430 million and €475 million, an increase between 5% and 15% from a year ago.
Teleperformance increased 8.2% to €92.50 after the French business service provider said first-quarter revenue rose 26.7%, driven largely by the integration of the Dutch rival Majorel last year.
Novo Nordisk decreased 2.5% to DKK 875.60 despite the Danish pharmaceutical company reporting better-than-expected first-quarter earnings.
Vestas Wind System declined 3.2% to DKK 180.85 after the Danish wind turbine maker reported a surprise loss in the first quarter.
Revenue in the first quarter declined 5.2% to €2.68 billion from €2.82 billion, and net income in the period swung to a loss of €75 million from a profit of €16 million a year ago.
The company reiterated its full-year revenue outlook between €16 billion and €18 billion and its operating income margin before special items between 4% and 6%.
- Bridgette Randall
- 02 May, 2024
- Frankfurt
European markets traded sideways as investors debated future interest rate paths and the manufacturing sector outlook.
Benchmark indexes in Frankfurt and Paris edged lower after the U.S. Federal Reserve held steady its benchmark interest rate range between 5.25% and 5.50%.
Investors debated the spillover effect of the higher-for-longer U.S. interest rates on the currency union's rate path.
The European Central Bank has signaled that it is ready to cut its interest rates as early as June, but the central bank has not clarified the size of or the number of subsequent cuts in the year.
Market sentiment was further dented after an ongoing downturn in the manufacturing sector deepened in April.
HCOB Eurozone Manufacturing PMI declined to 45.7 in April from 46.1 in March, S&P Global reported in its final reading on Thursday.
Any reading below the 50-mark indicates contraction, and any reading above the 50-mark shows expansion.
Market indexes in London traded higher after strong earnings from Standard & Chartered and Shell PLC lifted market sentiment.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 17,912.18; the CAC-40 index fell by 0.9% to 7,909.23; and the FTSE 100 index inched higher by 0.4% to 8,150.63.
The yield on 10-year German bonds edged up to 2.55%; French bonds inched lower to 3.04%; the UK gilts edged lower to 4.31%; and Italian bonds inched higher to 3.87%.
The euro edged higher to $1.069; the British pound inched higher to $1.251; and the U.S. dollar edged higher to 91.25 Swiss cents.
Brent crude increased $0.65 to $84.09 a barrel, and the Dutch TTF natural gas fell by €1.25 to €30.11 per MWh.
Europe Stock Movers
Shell PLC gained 1% to 2,847.51 pence after the oil giant reported better-than-expected first-quarter earnings and announced a $3.5 billion stock repurchase plan.
Standard Chartered increased 5.4% to 732.60 pence after the financial services provider reported stronger-than-expected first-quarter profit amid elevated interest rates and higher demand for its wealth management services.
Smurfit Kappa Group advanced 4.5% to 3,638.0 pence after the packaging material maker reported first-quarter revenue of €2.7 billion.
Hugo Boss declined 9.4% to €45.77 after the German fashion retailer reported better-than-expected first-quarter earnings and projected revenue growth in the current year.
Teleperformance increased 8.2% to €92.50 after the French business service provider said first-quarter revenue rose 26.7%, driven largely by the integration of the Dutch rival Majorel last year.
Novo Nordisk decreased 2.5% to DKK 875.60 despite the Danish pharmaceutical company reporting better-than-expected first-quarter earnings.
Vestas Wind System declined 3.2% to DKK 180.85 after the Danish wind turbine maker reported a surprise loss in the first quarter.
- Akira Ito
- 02 May, 2024
- Tokyo
Stocks in Tokyo declined, and the yen rebounded for the second day in a row, amid tech stock weakness and the possible intervention by the central bank.
The Nikkei and the Topix indexes lacked direction in Thursday's trading after the U.S. Federal Reserve held rates steady but signaled that the future rate path is highly uncertain.
Fed Chair Jerome Powell also ruled out the possibility of a rate hike in the immediate future and confirmed that inflation has moderated over the last year, but progress has stalled in recent months.
Powell added that the central bank is prepared to keep rates high as long as needed until it gains greater confidence that inflation is on the path of its target rate of 2%.
Closer to home, the minutes of the Bank of Japan's policy meeting held on March 18 and 19 showed Thursday that policymakers believe the central bank's inflation target of 2% is within reach.
Moreover, the monetary base increased 2.1% from a year ago in April to 689.896 trillion yen, and the adjusted monetary base soared 11.4% from a year ago. the Bank of Japan said Thursday.
The Japanese yen rebounded for the second day in a row to 155.70, stoking speculation that the Bank of Japan, in coordination with the ministry of finance, intervened for the second day in a row.
Tech stocks in the U.S. sold on the worry that higher rates are likely to stay elevated amid positive U.S. economic data and resilient labor market conditions.
The Nikkei 225 Stock Average decreased 0.07% to 38,245.08, and the Topix index declined a fraction to 2,729.17.
Tech stocks in Japan followed the weakness in New York.
Tokyo Electron, Advantest, Socionext, SoftBank, and Screen Holdings decreased between 0.3% and 1.8%.
Financial stocks were also among the leading decliners after the U.S. rate decision announcement.
Sumitomo Mitsui Group declined 1.2% to ¥8,881.0, Mitsubishi UFJ fell 0.5% to ¥1,557.50, and Mizuho Financial Group eased 0.3% to ¥3,010.0.
Sumitomo Pharma dropped 7% to ¥373.0 after the company reported lower-than-estimated revenue and higher-than-estimated losses in the fiscal year 2024 ending in March.
Revenue was revised lower to 314.6 billion yen from the previous estimate of 317 billion yen, and net loss attributable to shareholders was revised higher to 315 billion yen from the previous estimate of 147 billion yen.
The loss per share was revised to 792.86 yen from the previous estimate of 354.90 yen.
The company also suspended its dividend after the sharp decline in core profit.