- Scott Peters
- 08 Aug, 2024
- New York City
Warner Bros. Discovery dropped 10% to $6.93 after the media company reported disappointing second-quarter results, and the company took a one-time write-down of $9.1 billion.
Bumble Inc. declined 40.5% to $4.79 after the online dating platform reported weaker-than-expected revenue in the second quarter.
Duolingo soared 7.2% to $173.0 after the online language learning app developer reported better-than-expected quarterly results.
Eli Lilly increased 12.1% to $865.0 after the pharmaceutical company reported better-than-expected second-quarter earnings.
The company also raised its full-year outlook due to the strong demand for its obesity drug Zepbound and diabetes treatment Mounjaro.
Zillow Group rose 13.8% to $47.55 after the real estate platform operator reported better-than-expected second quarter results.
Revenue increased 13% to $572 million from $509 million, net loss shrank to $17 million from $35 million, and diluted loss per share decreased to 7 cents from 15 cents a year ago.
The company guided revenue in the third quarter to range between $545 million and $560 million, and added that available stock repurchase authorization was $381 million at the end of the second quarter.
- Barry Adams
- 08 Aug, 2024
- New York City
Stock market indexes advanced in Thursday's trading following the less-than-expected increase in jobless claims, soothing fears of weakening labor market conditions.
The S&P 500 index and the Nasdaq Composite advanced 1% after recession fears eased following the weaker-than-expected increase in jobless claims.
The weekly jobless claims have declined considerably from the pandemic-high but have been creeping up in the last seven months after reaching a low of 194,000 in the second week of January.
U.S. Initial jobless claims increased by 17,000 to 233,000 in the week ending on August 3, the Department of Labor reported in its weekly update on Thursday.
Initial claims in the previous week were revised higher to 250,000.
Continuing claims, which lag by one week, increased by 6,000 to 1,87 million, the highest since January 2021.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 1.1% to 5,255.50, the Nasdaq Composite advanced 1.1% to 16,373.40, and the Russell 2000 index declined 1.4% to 2,035.11.
The yield on 2-year Treasury notes edged lower to 3.97%, 10-year Treasury notes increased to 3.93%, and 30-year Treasury bonds advanced to 4.24%.
WTI crude oil decreased $0.10 to $75.12 a barrel, and natural gas prices edged down 5 cents to $2.06 a thermal unit.
Gold increased by $29.25 to $2,413.66 an ounce, and silver increased by $0.38 to $27.04.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.04.
U.S. Stock Movers
Warner Bros. Discovery dropped 10% to $6.93 after the media company reported disappointing second-quarter results, and the company took a one-time write-down of $9.1 billion.
Bumble Inc. declined 40.5% to $4.79 after the online dating platform reported weaker-than-expected revenue in the second quarter.
Duolingo soared 7.2% to $173.0 after the online language learning app developer reported better-than-expected quarterly results.
Eli Lilly increased 12.1% to $865.0 after the pharmaceutical company reported better-than-expected second-quarter earnings.
The company also raised its full-year outlook due to the strong demand for its obesity drug Zepbound and diabetes treatment Mounjaro.
- Inga Muller
- 08 Aug, 2024
- Frankfurt
European stocks reacted to domestic corporate results in the absence of economic news.
Global markets calmed down after a week of jittery trading, and investors shifted their focus to the rate path in the eurozone.
The DAX index decreased by 0.7% to 17,500.76; the CAC-40 index fell by 1.0% to 7,194.02; and the FTSE 100 index declined by 1.0% to 8,084.26.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched lower to 2.97%, the UK gilts inched higher to 3.94%, and Italian bonds decreased to 3.67%.
Zurich Insurance Group decreased 2.5% to CHF 452.0 despite the Swiss reinsurance company reporting first-half earnings that surpassed market expectations.
Beazley PLC jumped 12.5% to 716.50 pence after the UK-based insurance company reported its first-half results and revised its 2024 combined ratio estimate.
Allianz increased 1.3% to €252.50 after the German insurance company reported better-than-expected second quarter earnings and reiterated its annual outlook.
Siemens AG declined 0.8% to €154.64 after the German industrial company reported better-than-expected operating earnings and confirmed its full-year outlook.
Uniper SE declined 4.2% to €40.58 after the German utility company agreed to sell significant future hydropower production as a part of its hedging strategy.
Deutsche Telekom increased 2.2% to €24.45 after the wireline and wireless telecom service provider reported in-line core earnings in the second quarter and raised its free cash flow outlook.
Sandoz Group dropped 6.2% to CHF 33.56, and the generic and biosimilar medicines maker reported first-half net income slumped 36%.
Persimmon plc increased 2.5% to 1,575.50 pence after the UK-based home builder said it plans to build near the top end of the previously announced target range in 2024.
Hikma Pharma soared 7.5% to 1,978.0 pence after the company posited strong half-year results and revised its full-year 2024 estimate.
PageGroup declined 1.9% after the UK-based recruiting company reported a decline in revenue and earnings in the first half amid "challenging" market conditions.
Entain PLC jumped 8.8% to 569.80 pence after the gambling group raised its annual outlook.
- Bridgette Randall
- 08 Aug, 2024
- London
European markets struggled to get traction after two days of gains, as caution prevailed in global market trading.
Benchmark indexes in Paris, London, and Frankfurt traded down amid stagnant domestic economic conditions, weak consumer confidence compounded by a fragile economic recovery in China, and the growing possibility of a U.S. economic slowdown.
Investors were cautious, and an additional batch of mixed earnings did little to improve market sentiment.
China is set to release its official consumer and producer price inflation updates on Friday, and the initial jobless claims are also closely watched in the U.S. later in the day.
The European Central Bank can keep its rate cut plan intact if there is increased confidence that inflation is on a sustainable downward path, ECB Governing Council member and Bank of Finland governor Olli Rehn commented on Thursday.
Global markets gyrated after a string of U.S. economic data suggested a possible economic downturn and a weakening of labor market conditions.
Market volatility spiked to a level not seen since 1987, after the Bank of Japan lifted its interest rates, forcing the unwinding of the yen carry trade and strengthening the yen to an 8-month high.
Europe Indexes and Yields
The DAX index decreased by 0.7% to 17,500.76; the CAC-40 index fell by 1.0% to 7,194.02; and the FTSE 100 index declined by 1.0% to 8,084.26.
The yield on 10-year German bonds edged lower to 2.23%, French bonds inched lower to 2.97%, the UK gilts inched higher to 3.94%, and Italian bonds decreased to 3.67%.
The euro edged down to $1.09; the British pound inched lower to $1.268; and the U.S. dollar weakened to 85.80 Swiss cents.
Brent crude decreased $0.29 to $78.06 a barrel, and the Dutch TTF natural gas rose by €0.08 to €38.81 per MWh.
Europe Stock Movers
Zurich Insurance Group decreased 2.5% to CHF 452.0 despite the Swiss reinsurance company reporting first-half earnings that surpassed market expectations.
Beazley PLC jumped 12.5% to 716.50 pence after the UK-based insurance company reported its first-half results and revised its 2024 combined ratio estimate.
Allianz increased 1.3% to €252.50 after the German insurance company reported better-than-expected second quarter earnings and reiterated its annual outlook.
Siemens AG declined 0.8% to €154.64 after the German industrial company reported better-than-expected operating earnings and confirmed its full-year outlook.
Uniper SE declined 4.2% to €40.58 after the German utility company agreed to sell significant future hydropower production as a part of its hedging strategy.
Deutsche Telekom increased 2.2% to €24.45 after the wireline and wireless telecom service provider reported in-line core earnings in the second quarter and raised its free cash flow outlook.
Sandoz Group dropped 6.2% to CHF 33.56, and the generic and biosimilar medicines maker reported first-half net income slumped 36%.
Persimmon plc increased 2.5% to 1,575.50 pence after the UK-based home builder said it plans to build near the top end of the previously announced target range in 2024.
Hikma Pharma soared 7.5% to 1,978.0 pence after the company posited strong half-year results and revised its full-year 2024 estimate.
PageGroup declined 1.9% after the UK-based recruiting company reported a decline in revenue and earnings in the first half amid "challenging" market conditions.
Entain PLC jumped 8.8% to 569.80 pence after the gambling group raised its annual outlook.
- Akira Ito
- 08 Aug, 2024
- Tokyo
The market rally in Tokyo lost steam as investors stayed cautious after a week of volatile trading and the strengthening of the yen.
The Nikkei 225 and the Topix indexes dropped more than 0.7%, and the yen continued to drift lower amid worries about the future rate path.
Calmness returned to financial markets in Tokyo after deputy governor Shinichi Uchida reassured investors that the central bank would refrain from raising rates amid volatile market conditions.
However, investors turned cautious on Thursday following the weak close in New York in overnight trading, and artificial-intelligence-linked stocks failed to rebound.
The summary of opinions from the latest policy meeting of the Bank of Japan in July showed some members urged even larger rate increases.
Closer to home on the economic front, the current account surplus widened to 1.533 trillion in June from 1.519 trillion in the corresponding month a year ago, the Ministry of Finance reported Thursday.
The current account surplus rose for the 17th month in a row, following faster increases in exports than imports.
The surplus in goods increased to 556.3.9 billion yen from 328.0 billion a year ago, driven by a 5.9% increase in exports faster than a 3.4% rise in imports.
Meanwhile, the deficit in secondary income decreased to 120.7 billion from 132.4 billion.
The primary income surplus narrowed to 1,473.7 billion from 1,680 billion in the previous year, and the gap in the services account slightly widened to 375.8 billion from 356.2 billion.
Japan Stock Movers
The Nikkei 225 stock average decreased 0.7% to 34,829.31, and the Topix index dropped 1.2% to 2,458.63.
Advanced chipmakers turned lower, tracking volatile trading in New York.
Advantest, Tokyo Electron, Screen Holdings, Disco Corp., and Softbank declined between 3% and 7%.
Sumco Corp. plunged 15.8% to ¥1,687.0 after the Japanese semiconductor company reported a decline in earnings in the June quarter.
Net sales declined 5.4% to ¥104.7 billion, and net income plunged 37% to ¥7.56 billion from a year ago, respectively.
Financial stocks were among the leading decliners after gyrating by more than 15% in previous trading sessions.
Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, and Mizuho Financial Group fell between 1% and 3%.
Shiseido dropped 15.3% to ¥3,810.0 after the Japanese cosmetics company said weak China demand hit sales and earnings in the June quarter.
Shiseisdo stock plunged the most in several decades after its earnings were negatively impacted by weak demand in China.
Revenues in the June quarter were 259.1 billion, and net income was 3.3 billion yen.
Revenue in the first half increased by 14.3% to 508.5 billion yen from 494.2 billion yen, and net income dropped to a breakeven point from 11.8 billion yen a year ago.
However, the company retained its full-year sales estimate of 1 trillion yen, net income of 22 billion yen, and annual dividend of 60 yen per share.
- Li Chen
- 08 Aug, 2024
- Hong Kong
Investor sentiment recovered after a week of tumultuous trading, and market indexes rebounded for the second session in a row.
The Hang Seng index gained 0.7%, and the CSI 300 index advanced 0.4% in cautiously optimistic trading in Hong Kong and Shanghai.
Technology, financial, real estate developers, and industrial companies were among the most actively traded companies.
Investors are looking forward to the release of official consumer and producer price inflation data on Friday.
Consumer price inflation is expected to be positive, suggesting that demand may pick up after months of caution, but producer price inflation is expected to show a price deflation trend for the second year in a row.
Global market sentiment was positive as investors in Japan, Europe, and the U.S. returned to add stock positions after worries about the U.S. economic slowdown eased and the sharp reversal in correction in the AI-fueled tech rally halted.
China Stock Movers
The Hang Seng index increased 0.7% to 16,998.45, and the CSI 300 index rose 0.4% to 3,355.96.
Black Sesame International Holding dropped 25% to HK $21.10 after the chip designer for autonomous vehicles raised HK $1.04 billion, or $133 million, through the sale of 37 million shares in a Hong Kong listing.
The company priced its offering at the bottom end of its filing range at HK $28 per share.
Xiaomo, Tencent Holdings, and SAIC Motor Corp. are among the company's leading stockholders.
Alibaba Group Holding increased 1.9% to HK $77.90, Tencent Holdings advanced 2.7% to HK $373.0, Meituan was unchanged at HK $105.90, and Baidu added 0.6% to HK $81.75.
China Merchants Bank increased 1.7% to HK $32.10, China Mingsheng Banking declined 0.4% to HK $2.69, and HSBC Holdings declined 0.22% to HK $63.10.
- Arun Goswami
- 08 Aug, 2024
- Mumbai
Stocks in Mumbai reacted to the latest earnings update, and the Reserve Bank of India is expected to hold interest rates steady at 6.5% for the ninth time in a row.
The Sensex index decreased by 0.3% to 79,246.65, and the Nifty index fell 0.3% to 24,233.85.
On the Mumbai stock exchange, 64 stocks traded at their 52-week highs, and 7 stocks traded at their 52-week lows.
Gujarat Pipavav rose 3.5% to ₹229.11, and the port operator reported a double-digit increase in revenue and earnings in the June quarter.
Revenue increased 14.5% to ₹246 crore from ₹214.9 crore, and net income soared 91.4% to ₹100.2 crore from ₹52.3 crore a year ago, respectively.
ITD Cementation advanced 5.1% to ₹503.20, and the cement maker reported better-than-expected profit in the June quarter.
Revenue jumped 30% to ₹2,381.5 crore from ₹1,832.6 crore, and net income soared 91.4% to ₹100.2 crore from ₹52.3 crore a year ago.
Apollo Tyres decreased 2% to ₹510.0 after the company reported a decline in earnings in the June quarter.
Revenue increased 1.4% to ₹6,334.8 from ₹1,832.6 crore, and net income decreased 24% to ₹302 crore from ₹396.9 crore a year earlier.
Lemon Tree Hotels fell 3.8% to ₹134.13 after the mid-priced hotel chain operator reported a decline in earnings in the June quarter.
Revenue increased 19.5% to ₹268 crore from ₹224.2 crore, and net income dropped 27% to ₹20.1 crore from ₹27.5 crore a year ago, respectively.
Balaji Amines dropped 5.5% to ₹2,259.50 after the specialty chemical maker used in personal care and crop protection reported a decline in earnings and revenue in the June quarter.
Revenue fell 17% to 384.7 crore from 463.7 crore, and net income fell 32.7% to 45.6 crore from 67.7 crore a year ago, respectively.
Welspun declined 2.5% to ₹634.90, and the large-diameter pipe maker reported a decline in revenue in the June quarter.
Revenue fell 23% to 3,137.2 crore from 4,069.7 crore, and net income rose 47% to 247.9 crore from 168.5 crore a year ago.
Godrej Consumer Products dropped 4.3% to ₹1,440.0, and the personal hygiene products maker reported a decline in revenue in the June quarter.
Revenue fell 3.4% to 3,331.6 crore from 3,348.9 crore, and net profit soared 41.4% to 450.7 crore from 318.8 crore a year ago.
- Alexander Garcia
- 07 Aug, 2024
- Miami
Stocks attempted to rebound on Wall Street for the second day in a row as market sentiment stabilized and investors tried to recoup Monday's losses.
The S&P 500 index gained more than 1% and the Nasdaq Composite advanced closer to 2% as investors surmised that the recent three-day sell-off may have been overdone.
Investors debated the health of the U.S. economy and looked for alternative indicators to assess the underlying drivers, such as rail cargo loadings, ocean freight demand, online traffic at shopping sites, and credit card charge volumes.
Market indexes rebounded on Wednesday after falling sharply in the previous three sessions in a row, following worries that labor market conditions are deteriorating faster than previously estimated and factory activities shrank for the third month in a row in June.
Moreover, market sentiment was weak after mega-cap tech companies reported weaker-than-expected earnings results, stoking fears that the elevated capital expenditure to build out artificial intelligence infrastructure may be cut.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 0.4% to 5,263.01, the Nasdaq Composite advanced 0.6% to 16,450.79, and the Russell 2000 index rose 0.1% to 2,064.88.
The yield on 2-year Treasury notes edged higher to 4.0%, 10-year Treasury notes increased to 3.93%, and 30-year Treasury bonds advanced to 4.23%.
WTI crude oil increased $1.75 to $75.03 a barrel, and natural gas prices edged up 6 cents to $2.07 a thermal unit.
Gold increased by $13.75 to $2,397.68 an ounce, and silver rose by $0.09 to $26.92.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.22.
U.S. Stock Movers
Airbnb plunged 14.2% to $111.92 after the online booking platform reported a weaker-than-expected third-quarter outlook.
The booking platform operator estimated revenue to fall between $3.67 billion and $3.73 billion, slightly below analysts expectations of at least $3.85 billion.
Wynn Resorts declined 0.3% to $76.10 after the casino and resort operator reported weaker-than-expected revenue in the second quarter.
Reddit dropped 6% to $51.08, despite the social news company reporting better-than-expected second quarter revenue and earnings and issuing third quarter revenue in line with market expectations.
The company estimated revenue in the third quarter to fall between $290 million and $310 million.
Walt Disney & Company decreased 2.5% to $87.77 after the theme park operator reported better-than-expected quarterly results.
Lyft Inc. dropped 16.6% to $9.15, and the digital ride-hailing company issued weaker-than-expected third-quarter revenue guidance.
The company estimated gross booking in the third quarter to range between $4.0 billion and $4.1 billion and adjusted operating earnings between $90 million and $95 million.
CVS Health decreased 0.6% to $57.95 after the drugstore chain operator reported better-than-expected second quarter earnings, but the company lowered its full-year net income outlook, citing higher costs.
Super Micro Computer dropped 14.3% to $528.77 after the computer server company reported weaker-than-expected fiscal fourth quarter earnings.
The company also announced a 10-for-1 stock split.
European Markets Rebounded Shaking Off Global Worries
European markets rebounded as investors reacted to domestic economic updates and economic reports in China.
Benchmark indexes in London, Paris, and Frankfurt increased between 1% and 2%, and German industrial output rose more than expected and exports fell in June.
Global market sentiment recovered after days of weakness following a string of weak key economic U.S. data and weaker-than-expected earnings from big tech companies.
Moreover, investors were also on edge after the Bank of Japan unexpectedly raised the interest rate, forcing the yen carry trade to unwind, roiling global financial markets, and spiking volatility to a level not seen since 1987.
Advanced chip equipment makers were under pressure for the second week in a row after investors unwound artificial intelligence-linked stocks on fears of stretched valuations and a possible slowdown in spending by mega-cap tech companies.
Germany's Exports and Imports Eased In June
Calendar and seasonally adjusted goods exports from Germany in June declined 3.4% from the previous month to €127.7 billion, and goods imports rose 0.3% to €107.3 billion, resulting in a trade surplus of €20.4 billion.
On an annual basis, exports decreased 4.4% and imports fell 6.4%, the Federal Statistics Office, or Destatis, reported Thursday.
The trade balance in May 2024 was €25.3 billion, and it was €19.0 billion in June 2023.
Exports to the EU countries decreased 3.4% to €69.7 billion, shipments to the U.S. fell 7.7% to €12.9 billion, shipments to China rose 3.4% to €7.9 billion, and shipments to the U.K. edged down 0.6% to €6.5 billion.
Imports from the EU nations eased 0.4% to €51.9 billion, declined 6.9% to €12.9 billion, from the U.S. decreased 6.5% to €7.4 billion, and from the UK increased 11.1% to €3.1 billion.
German Industrial Output Expanded
In a separate report, the statistical office noted industrial production increased 1.4% in June but declined 4.1% from a year ago.
Production rebounded largely because of a 7.5% increase in the automotive sector, reversing the decline of 9.9% in the previous month.
Industrial production, excluding energy and construction, increased by 1.5% in June compared to May, adjusted for seasonal and calendar effects.
Production of capital goods rose by 2.5%, intermediate goods by 2.1%, but consumer goods fell by 2.4%.
Outside industry, electricity and energy production rose by 2.9%, and construction activities rose by 0.3% in June 2024 compared to the previous month.
Europe Indexes and Yields
The DAX index increased by 1.5% to 17,615.15; the CAC-40 index rose by 1.9% to 7,266.01; and the FTSE 100 index advanced by 1.8% to 8,186.88.
The yield on 10-year German bonds edged higher to 2.28%, French bonds inched higher to 3.02%, the UK gilts inched higher to 3.92%, and Italian bonds increased to 3.71%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 86.39 Swiss cents.
Brent crude increased $1.72 to $78.19 a barrel, and the Dutch TTF natural gas fell by €2.15 to €38.73 per MWh.
Europe Stock Movers
Novo Nordisk declined 3.7% to DKK 855.0 despite the Danish pharmaceutical company reporting weaker-than-expected second quarter profit and trimming its full-year outlook.
Puma SE decreased 11.2% to €36.79 after the athleticwear maker trimmed its full-year outlook.
Commerzbank AG decreased 4.9% to €12.53 after the financial services company reported a decline in profit in the second quarter.
Continental AG soared 5.8% to €57.54 after the automobile parts maker reported solid second-quarter results.
Beiersdorf AG decreased 1.8% to €129.05, and the consumer products maker reported lower-than-expected second quarter results.
ABN AMRO jumped 4.8% to €15.13 after the Dutch financial services company lifted its annual net interest income estimate.
Coca-Cola HBC decreased 2.7% to 2,686.0 pence after the Greece-based beverage bottling company cited macroeconomic headwinds in the second half of the year.
Glencore increased 2.2% to 401.60 pence after the mining company shelved its plan to spin off its coal mining division, despite gaining support from its shareholders.
Vodafone Group gained 3.2% to 72.66 pence after the wireless telecom operator launched its €500 million stock repurchase plan.
WPP declined 2.6% to 698.40 pence after the advertising services provider agreed to sell its majority stake in FGS Global to KKR at an enterprise value of £1.7 billion.
The state sale will generate a total of £604 million after tax.
TotalEnergies SE increased 2.5% to €60.64 after the company agreed to sell a 50% stake in Total PARCO Pakistan Ltd. to Switzerland-based Gunvor Group.
Japan Indexes Extended 2-day Gains, Yen Weakened Again
Stock market indexes rebounded in Tokyo for the second day in a row, but market participants were worried about the outlook for the yen in the near future.
The Nikkei 225 stock average jumped more than 1%, and the broader Topix advanced more than 2%.
Global markets rebounded after calm returned to financial markets, following steep losses over the last five trading sessions as investors worried about the weakening U.S. economic conditions and the unexpected increase in interest rates by the Bank of Japan.
The Bank of Japan's policy tightening led to a swift unwinding of the yen carry trade, stoking a surge in market volatility not seen since 1987.
The yen eased to 146.90 against the U.S. dollar after Bank of Japan Deputy Governor Shinichi Uchida said the central bank will not raise rates if the market is unstable.
Those comments contributed to positive market sentiment and supported the market advance in Thursday's trading.
However, investors worry that the pressure on the yen is likely to remain high, as the wide yield gap between the U.S. and Japan is likely to persist.
Japan Stock Movers
The Nikkei 225 stock average jumped 1.3% to 35,124.54, and the Topix index advanced 2.2% to 2,489.38.
Financial services providers led the market gainers in Thursday's trading.
Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, and Mizuho Financial advanced between 8% and 10%.
Leading industrial exporters led the gainers, and Canon jumped 9.9% to ¥4,405.0, Mitsubishi Electric advanced 3% to ¥2,160.50, and SoftBank Group jumped 6.5% to ¥7,544.0.
Nichirei jumped 7.6% to ¥3,970.0, Nichias advanced 13.1% to ¥5,230.0, and Fujikura increased 8.3% to ¥2,650.0.
Daikin Industries dropped 9.5% to ¥17,200.0 after the world's largest air conditioner manufacturer reported weaker-than-expected results.
Net sales in the June quarter increased 14% to 1.25 trillion yen, and net income fell 21% to 63.10 billion yen from a year ago.
The company estimated fiscal year revenue of 4.54 trillion yen, net income of 2.67 billion yen, and dividends of 320 yen.
China Indexes Rebound from 3-Month Lows
Market indexes in Shanghai and Hong Kong rebounded from a three-month low after calm returned to global markets.
The Hang Seng index jumped more than 1.5%, and the CSI 300 index advanced 0.4%.
Financial markets recovered from steep losses over the last three days, heightened by worries about the unexpected weakening of U.S. economic conditions and the Bank of Japan's increase in interest rates.
Positive market sentiment was supported by a strong rise in China's exports and imports in July, indicating sustained domestic demand for imported goods.
China's Exports and Imports Rise 7% In July
Exports increased 7% to $300.6 billion, and imports advanced 7.2% to $216 billion, driving the trade surplus to $84.7 billion, lower than $99.1 billion in June and higher than $80 billion a year ago.
China's exports to the U.S. rose for the third month in a row and advanced 8%; to the ASEAN region, they increased 12.2%; to the European Union, they rose 7.9%; but declined by 2.8% to Russia.
Exports to the U.S. have been surging in the past few months, ahead of the expected tariffs on over 100 Chinese goods in the next few weeks.
However, the outlook for China's exports is not clear in the second half, after the implementation of additional tariffs and import hurdles in the U.S. and the European Union.
China Stock Movers
The Hang Seng index soared 1.8% to 16,951.78, and the CSI 300 index added 0.4% to 3,355.76.
Internet leaders led the gainers in Hong Kong trading after falling for three weeks in a row.
Alibaba Group advanced 2.9% to HK $77.45, Tencent Holding increased 2.9% to HK $364.60, and Meituan gained 1.8% to HK $107.50.
Techtronic Industries increased 4.9% to HK$96.05 after the power tool maker reported a 16% increase in first-half profit.
BYD Company advanced 0.08% to HK $211.05, Li Auto jumped 4.1% to HK $76.05, and Xpeng decreased 1.9% to HK $28.10.
- Scott Peters
- 07 Aug, 2024
- New York City
Airbnb plunged 14.2% to $111.92 after the online booking platform reported a weaker-than-expected third-quarter outlook.
The booking platform operator estimated revenue to fall between $3.67 billion and $3.73 billion, slightly below analysts expectations of at least $3.85 billion.
Wynn Resorts declined 0.3% to $76.10 after the casino and resort operator reported weaker-than-expected revenue in the second quarter.
Reddit dropped 6% to $51.08, despite the social news company reporting better-than-expected second quarter revenue and earnings and issuing third quarter revenue in line with market expectations.
The company estimated revenue in the third quarter to fall between $290 million and $310 million.
Walt Disney & Company decreased 2.5% to $87.77 after the theme park operator reported better-than-expected quarterly results.
Lyft Inc. dropped 16.6% to $9.15, and the digital ride-hailing company issued weaker-than-expected third-quarter revenue guidance.
The company estimated gross booking in the third quarter to range between $4.0 billion and $4.1 billion and adjusted operating earnings between $90 million and $95 million.
CVS Health decreased 0.6% to $57.95 after the drugstore chain operator reported better-than-expected second quarter earnings, but the company lowered its full-year net income outlook, citing higher costs.
Super Micro Computer dropped 14.3% to $528.77 after the computer server company reported weaker-than-expected fiscal fourth quarter earnings.
The company also announced a 10-for-1 stock split.
- Barry Adams
- 07 Aug, 2024
- New York City
Stocks rebounded on Wall Street for the second day in a row as market sentiment stabilized.
The S&P 500 index gained more than 1% and the Nasdaq Composite advanced closer to 2% as investors surmised that the recent three-day sell-off may have been overdone.
Investors debated the health of the U.S. economy and looked for alternative indicators to assess the underlying drivers, such as rail cargo loadings, ocean freight demand, online traffic at shopping sites, and credit card charge volumes.
Market indexes rebounded on Wednesday after falling sharply in the previous three sessions in a row, following worries that labor market conditions are deteriorating faster than previously estimated and factory activities shrank for the third month in a row in June.
Moreover, market sentiment was weak after mega-cap tech companies reported weaker-than-expected earnings results, stoking fears that the elevated capital expenditure to build out artificial intelligence infrastructure may be cut.
U.S. Indexes and Treasury Yields
The S&P 500 index gained 1.3% to 5,311.19, the Nasdaq Composite advanced 1.7% to 16,620.93, and the Russell 2000 index rose 1.1% to 2,086.65.
The yield on 2-year Treasury notes edged higher to 4.0%, 10-year Treasury notes increased to 3.93%, and 30-year Treasury bonds advanced to 4.23%.
WTI crude oil increased $1.71 to $74.69 a barrel, and natural gas prices edged up 9 cents to $2.10 a thermal unit.
Gold increased by $19.65 to $2,403.78 an ounce, and silver declined by $0.07 to $27.07.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 103.18.
U.S. Stock Movers
Airbnb plunged 14.2% to $111.92 after the online booking platform reported a weaker-than-expected third-quarter outlook.
The booking platform operator estimated revenue to fall between $3.67 billion and $3.73 billion, slightly below analysts expectations of at least $3.85 billion.
Wynn Resorts declined 0.3% to $76.10 after the casino and resort operator reported weaker-than-expected revenue in the second quarter.
Reddit dropped 6% to $51.08, despite the social news company reporting better-than-expected second quarter revenue and earnings and issuing third quarter revenue in line with market expectations.
The company estimated revenue in the third quarter to fall between $290 million and $310 million.
Walt Disney & Company decreased 2.5% to $87.77 after the theme park operator reported better-than-expected quarterly results.
Lyft Inc. dropped 16.6% to $9.15, and the digital ride-hailing company issued weaker-than-expected third-quarter revenue guidance.
The company estimated gross booking in the third quarter to range between $4.0 billion and $4.1 billion and adjusted operating earnings between $90 million and $95 million.
CVS Health decreased 0.6% to $57.95 after the drugstore chain operator reported better-than-expected second quarter earnings, but the company lowered its full-year net income outlook, citing higher costs.
Super Micro Computer dropped 14.3% to $528.77 after the computer server company reported weaker-than-expected fiscal fourth quarter earnings.
The company also announced a 10-for-1 stock split.
- Inga Muller
- 07 Aug, 2024
- Frankfurt
European market indexes traded higher and overcame global worries after market sentiment stabilized.
The bond yields in the region traded near a six-month low, and the euro and the pound edged slightly higher.
The DAX index increased by 1.3% to 17,573.64; the CAC-40 index rose by 1.7% to 7,252.66; and the FTSE 100 index advanced by 1.2% to 8,116.19.
The yield on 10-year German bonds edged higher to 2.28%, French bonds inched higher to 3.02%, the UK gilts inched higher to 3.92%, and Italian bonds increased to 3.71%.
Novo Nordisk declined 3.7% to DKK 855.0 despite the Danish pharmaceutical company reporting weaker-than-expected second quarter profit and trimming its full-year outlook.
Puma SE decreased 11.2% to €36.79 after the athleticwear maker trimmed its full-year outlook.
Commerzbank AG decreased 4.9% to €12.53 after the financial services company reported a decline in profit in the second quarter.
Continental AG soared 5.8% to €57.54 after the automobile parts maker reported solid second-quarter results.
Beiersdorf AG decreased 1.8% to €129.05, and the consumer products maker reported lower-than-expected second quarter results.
ABN AMRO jumped 4.8% to €15.13 after the Dutch financial services company lifted its annual net interest income estimate.
Coca-Cola HBC decreased 2.7% to 2,686.0 pence after the Greece-based beverage bottling company cited macroeconomic headwinds in the second half of the year.
Glencore increased 2.2% to 401.60 pence after the mining company shelved its plan to spin off its coal mining division, despite gaining support from its shareholders.
Vodafone Group gained 3.2% to 72.66 pence after the wireless telecom operator launched its €500 million stock repurchase plan.
WPP declined 2.6% to 698.40 pence after the advertising services provider agreed to sell its majority stake in FGS Global to KKR at an enterprise value of £1.7 billion.
The state sale will generate a total of £604 million after tax.
TotalEnergies SE increased 2.5% to €60.64 after the company agreed to sell a 50% stake in Total PARCO Pakistan Ltd. to Switzerland-based Gunvor Group.
- Bridgette Randall
- 07 Aug, 2024
- London
European markets rebounded as investors reacted to domestic economic updates and economic reports in China.
Benchmark indexes in London, Paris, and Frankfurt increased between 1% and 2%, and German industrial output rose more than expected and exports fell in June.
Global market sentiment recovered after days of weakness following a string of weak key economic U.S. data and weaker-than-expected earnings from big tech companies.
Moreover, investors were also on edge after the Bank of Japan unexpectedly raised the interest rate, forcing the yen carry trade to unwind, roiling global financial markets, and spiking volatility to a level not seen since 1987.
Advanced chip equipment makers were under pressure for the second week in a row after investors unwound artificial intelligence-linked stocks on fears of stretched valuations and a possible slowdown in spending by mega-cap tech companies.
Germany's Exports and Imports Eased In June
Calendar and seasonally adjusted goods exports from Germany in June declined 3.4% from the previous month to €127.7 billion, and goods imports rose 0.3% to €107.3 billion, resulting in a trade surplus of €20.4 billion.
On an annual basis, exports decreased 4.4% and imports fell 6.4%, the Federal Statistics Office, or Destatis, reported Thursday.
The trade balance in May 2024 was €25.3 billion, and it was €19.0 billion in June 2023.
Exports to the EU countries decreased 3.4% to €69.7 billion, shipments to the U.S. fell 7.7% to €12.9 billion, shipments to China rose 3.4% to €7.9 billion, and shipments to the U.K. edged down 0.6% to €6.5 billion.
Imports from the EU nations eased 0.4% to €51.9 billion, declined 6.9% to €12.9 billion, from the U.S. decreased 6.5% to €7.4 billion, and from the UK increased 11.1% to €3.1 billion.
German Industrial Output Expanded
In a separate report, the statistical office noted industrial production increased 1.4% in June but declined 4.1% from a year ago.
Production rebounded largely because of a 7.5% increase in the automotive sector, reversing the decline of 9.9% in the previous month.
Industrial production, excluding energy and construction, increased by 1.5% in June compared to May, adjusted for seasonal and calendar effects.
Production of capital goods rose by 2.5%, intermediate goods by 2.1%, but consumer goods fell by 2.4%.
Outside industry, electricity and energy production rose by 2.9%, and construction activities rose by 0.3% in June 2024 compared to the previous month.
Europe Indexes and Yields
The DAX index increased by 1.3% to 17,573.64; the CAC-40 index rose by 1.7% to 7,252.66; and the FTSE 100 index advanced by 1.2% to 8,116.19.
The yield on 10-year German bonds edged higher to 2.28%, French bonds inched higher to 3.02%, the UK gilts inched higher to 3.92%, and Italian bonds increased to 3.71%.
The euro edged down to $1.09; the British pound inched lower to $1.272; and the U.S. dollar weakened to 86.39 Swiss cents.
Brent crude increased $1.22 to $77.21 a barrel, and the Dutch TTF natural gas fell by €0.50 to €37.08 per MWh.
Europe Stock Movers
Novo Nordisk declined 3.7% to DKK 855.0 despite the Danish pharmaceutical company reporting weaker-than-expected second quarter profit and trimming its full-year outlook.
Puma SE decreased 11.2% to €36.79 after the athleticwear maker trimmed its full-year outlook.
Commerzbank AG decreased 4.9% to €12.53 after the financial services company reported a decline in profit in the second quarter.
Continental AG soared 5.8% to €57.54 after the automobile parts maker reported solid second-quarter results.
Beiersdorf AG decreased 1.8% to €129.05, and the consumer products maker reported lower-than-expected second quarter results.
ABN AMRO jumped 4.8% to €15.13 after the Dutch financial services company lifted its annual net interest income estimate.
Coca-Cola HBC decreased 2.7% to 2,686.0 pence after the Greece-based beverage bottling company cited macroeconomic headwinds in the second half of the year.
Glencore increased 2.2% to 401.60 pence after the mining company shelved its plan to spin off its coal mining division, despite gaining support from its shareholders.
Vodafone Group gained 3.2% to 72.66 pence after the wireless telecom operator launched its €500 million stock repurchase plan.
WPP declined 2.6% to 698.40 pence after the advertising services provider agreed to sell its majority stake in FGS Global to KKR at an enterprise value of £1.7 billion.
The state sale will generate a total of £604 million after tax.
TotalEnergies SE increased 2.5% to €60.64 after the company agreed to sell a 50% stake in Total PARCO Pakistan Ltd. to Switzerland-based Gunvor Group.
- Akira Ito
- 07 Aug, 2024
- Tokyo
Stock market indexes rebounded in Tokyo for the second day in a row, but market participants were worried about the outlook for the yen in the near future.
The Nikkei 225 stock average jumped more than 1%, and the broader Topix advanced more than 2%.
Global markets rebounded after calm returned to financial markets, following steep losses over the last five trading sessions as investors worried about the weakening U.S. economic conditions and the unexpected increase in interest rates by the Bank of Japan.
The Bank of Japan's policy tightening led to a swift unwinding of the yen carry trade, stoking a surge in market volatility not seen since 1987.
The yen eased to 146.90 against the U.S. dollar after Bank of Japan Deputy Governor Shinichi Uchida said the central bank will not raise rates if the market is unstable.
Those comments contributed to positive market sentiment and supported the market advance in Thursday's trading.
However, investors worry that the pressure on the yen is likely to remain high, as the wide yield gap between the U.S. and Japan is likely to persist.
Japan Stock Movers
The Nikkei 225 stock average jumped 1.3% to 35,124.54, and the Topix index advanced 2.2% to 2,489.38.
Financial services providers led the market gainers in Thursday's trading.
Mitsubishi UFJ Financial, Sumitomo Mitsui Financial, and Mizuho Financial advanced between 8% and 10%.
Leading industrial exporters led the gainers, and Canon jumped 9.9% to ¥4,405.0, Mitsubishi Electric advanced 3% to ¥2,160.50, and SoftBank Group jumped 6.5% to ¥7,544.0.
Nichirei jumped 7.6% to ¥3,970.0, Nichias advanced 13.1% to ¥5,230.0, and Fujikura increased 8.3% to ¥2,650.0.
Daikin Industries dropped 9.5% to ¥17,200.0 after the world's largest air conditioner manufacturer reported weaker-than-expected results.
Net sales in the June quarter increased 14% to 1.25 trillion yen, and net income fell 21% to 63.10 billion yen from a year ago.
The company estimated fiscal year revenue of 4.54 trillion yen, net income of 2.67 billion yen, and dividends of 320 yen.
- Li Chen
- 07 Aug, 2024
- Hong Kong
Market indexes in Shanghai and Hong Kong rebounded from a three-month low after calm returned to global markets.
The Hang Seng index jumped more than 1.5%, and the CSI 300 index advanced 0.4%.
Financial markets recovered from steep losses over the last three days, heightened by worries about the unexpected weakening of U.S. economic conditions and the Bank of Japan's increase in interest rates.
Positive market sentiment was supported by a strong rise in China's exports and imports in July, indicating sustained domestic demand for imported goods.
Exports increased 7% to $300.6 billion, and imports advanced 7.2% to $216 billion, driving the trade surplus to $84.7 billion, lower than $99.1 billion in June and higher than $80 billion a year ago.
China's exports to the U.S. rose for the third month in a row and advanced 8%; to the ASEAN region, they increased 12.2%; to the European Union, they rose 7.9%; but declined by 2.8% to Russia.
Exports to the U.S. have been surging in the past few months, ahead of the expected tariffs on over 100 Chinese goods in the next few weeks.
However, the outlook for China's exports is not clear in the second half, after the implementation of additional tariffs and import hurdles in the U.S. and the European Union.
China Stock Movers
The Hang Seng index soared 1.8% to 16,951.78, and the CSI 300 index added 0.4% to 3,355.76.
Internet leaders led the gainers in Hong Kong trading after falling for three weeks in a row.
Alibaba Group advanced 2.9% to HK $77.45, Tencent Holding increased 2.9% to HK $364.60, and Meituan gained 1.8% to HK $107.50.
Techtronic Industries increased 4.9% to HK$96.05 after the power tool maker reported a 16% increase in first-half profit.
BYD Company advanced 0.08% to HK $211.05, Li Auto jumped 4.1% to HK $76.05, and Xpeng decreased 1.9% to HK $28.10.
- Arun Goswami
- 07 Aug, 2024
- Mumbai
Stocks in Mumbai recovered from two days of steep losses driven by volatile international markets.
The Reserve Bank of India is expected to hold interest rates steady at the end of the policy meeting on Thursday.
The Sensex index increased by 0.8% to 79,237.88, and the Nifty index rose 0.9% to 24,222.55.
On the Mumbai stock exchange, 74 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 6.86%, and the Indian rupee edged lower to ₹83.91 against the U.S. dollar.
PB Fintech increased 1.4% to ₹1,454.95, and the online insurance marketplace operator swung to a profit in the June quarter.
Revenue increased 52% to ₹1,010 crore from ₹666 crore, and net income swung to a profit of ₹60 crore from a loss of ₹11.9 crore in the period year over year.
Cummins India declined 0.9% to ₹3,490.0, and the industrial equipment maker reported a sharp jump in profit in the June quarter.
Revenue increased 4.3% to ₹2,304 crore from ₹2,208.7 crore, and net income soared 33% to ₹419.8 crore from ₹315.7 crore a year ago.
Linde India declined 0.2% to ₹7,784.0, and the natural gas company reported mixed quarterly results.
Revenue in the June quarter fell 9.4% to ₹638.9 crore from ₹636.1 crore, and net income advanced 13.8% to ₹113.7 crore from ₹99.9 crore a year ago.
VIP Industries gained 1.4% to ₹451.0, and the molded luggage maker reported a steep decline in earnings in the June quarter.
Revenue edged up 0.4% to 638.9 crore from 636.1 crore, and net income plunged 93% to 4 crore from 57.8 crore a year ago.
Bata India declined 4.5% to ₹1,447.25, and footwear retailer reported a jump in income in the June quarter driven by a one-time exceptional gain.
Revenue fell 1.4% to ₹944.6 crore from ₹958.1 crore, but net income advanced 62.8% to ₹174 crore from ₹106.9 crore a year ago.
Tata Power decreased 2.2% to ₹427.70, and the electric power generator reported a rise in revenue and net income in the June quarter.
Revenue increased 14% to ₹17,294 crore from ₹15,213 crore and net income advanced 4% to ₹1,189 crore from ₹1,141 crore a year ago.
Lupin Ltd. jumped 4.7% to ₹2,001.25 after the company reported solid results in the June quarter.
Revenue increased 16% to ₹5,514.60 crore from ₹4,895.10 crore, and net income soared 77% to ₹801.3 crore from ₹452.3 crore a year ago.
Gulf Oil Lubricants India soared 10.3% to ₹1,189.80 after the chemical company reported solid quarterly results.
Revenue increased 9% to ₹885.1 crore from ₹811.7 crore, and net income soared 29% to ₹88 crore from ₹68 crore a year ago.