Caution Prevailed On Wall Steet After Israel Conducted Limited Strike Targeting Iran

Safe-have assets were in demand after the long-running conflict between Israel and Iran spilled over into public view amid rapidly escalating tensions in the Middle East. 

Israel's limited strike targeted locations deep into Iran's territory after the nuclear-armed nation conducted missile strikes in a retaliatory move. 

However, Israel and Iran appear to be in no mood to step up more attacks for now, after diplomats on both sides worked to lower tensions and limit the conflict from spreading to a regional war. 

The so-called safe-haven assets were in demand, and the U.S. Treasury yields held stable; crude oil prices soared 4% before erasing most of the gains; and gold edged slightly higher in early trading. 

Investors also reviewed the fresh batch of earnings and reacted negatively to Netflix's announcement that it no longer plans to release a paid subscriber count starting in 2025. 

The S&P 500 index and the Nasdaq Composite are set to extend weekly losses for the third week in a row after a week of choppy trading. 

The S&P 500 index and the Nasdaq Composite have fallen nearly 5% from their peaks. 

U.S. Indexes and Yields

The S&P 500 index declined 0.1% to 5,014.45, and the Nasdaq Composite decreased 0.3% to 15,550.10. 

The yield on 2-year Treasury notes edged higher to 4.98%, 10-year Treasury notes inched down to 4.59%, and 30-year Treasury bonds edged lower to 4.69%.

WTI crude oil decreased $0.59 to $82.13 a barrel, and natural gas prices decreased 1 cent to $1.74 a thermal unit.

Gold decreased by $0.82 to $2,379.82 an ounce, and silver fell 1 cent to $28.22. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.88.

U.S. Stock Movers

Intuitive Surgical rose 3.3% to $385.0 after the robotic surgical equipment maker reported better-than-expected quarterly results. 

Western Alliance decreased 3.4% to $53.82 after the regional bank posted weaker-than-expected quarterly results. 

KB Home increased 1% to $61.04 after the home builder said its board of directors announced a new $1 billion stock repurchase plan. 

Netflix declined 5.7% to $571.95 after the online streaming service provider reported better-than-expected quarterly results and added it will stop publishing paid subscriber counts starting in 2025. 

Revenue in the first quarter increased to $9.37 billion from $8.16 billion, net income rose to $2.13 billion from $1.30 billion, and diluted earnings per share advanced to $5.28 from $2.88 a year ago. 

Europe Movers: 888 Holdings, L'Oreal, Man Group, Schneider Electric, Sodexo

European market indexes traded at six-week lows after tensions between Israel and Iran escalated, crude oil surged as much as 4%, and the bond yield edged slightly lower. 

The DAX index decreased by 0.6% to 17,720.0; the CAC-40 index fell by 0.3% to 7,998.50; and the FTSE 100 index inched lower by 0.6% to 7,831.73.

The yield on 10-year German bonds edged up to 2.45%; French bonds inched lower to 2.97%; the UK gilts edged higher to 4.24%; and Italian bonds inched lower to 3.84%.

Sodexo increased 4.1% to €80.40 after the company reported a net loss in the first half, driven by the weakness in discontinued operations. 

The company also confirmed organic revenue growth in 2024 will be near its previously estimated range of between 6% and 8%. 

Schneider Electric SA decreased 2.7% to €209.90 after the digital automation and energy management company confirmed that it is in preliminary purchase talks with the U.S.-based software company Bentley Systems Inc. 

Man Group declined 5% to 255.0 pence after the UK-based investment management company confirmed a net fund outflow of $1.6 billion in the first quarter. 

888 Holdings increased 2.0% to 81.36 pence after the online gambling company reiterated its full-year outlook. 

L'Oreal jumped 4.1% to €441.0 after the French cosmetic company reported a 9.4% increase in comparable sales in the first quarter. 

Europe's Stock Indexes at Six-week Low, Germany's Producer Price Deflation Extends to Ninth Month

Investors sought safety in precious metals, government bonds, and large-cap stocks after news reports confirmed Israeli airstrikes deep into Iran's territory. 

Benchmark indexes in Frankfurt, Paris, and London traded down on the final day of the week amid rapidly escalating tensions between Iran and Israel. 

Benchmark indexes are set to decline between 1% and 2% in Europe, extending losses for the third week in a row in Paris and Frankfurt. 

Crude oil surged as much as 4% after the news of Israel's airstrikes broke, but prices cooled on reports suggesting that diplomats in Oman, Switzerland, France, and the U.S. are looking for ways to avoid the situation deteriorating further. 

Tensions between Israel and Iran have been simmering for the last six months in parallel to the war between Israel and Hamas. 

Germany's Producer Price Deflation Extends to the Ninth Month

On the economic front, Germany's producer price index declined 2.9% from a year ago in March, following a decline of 4.1% in the previous month, the Federal Statistical Office reported Friday. 

The overall cost of energy prices fell by 7%, driving down producer prices in the month, with natural gas prices falling 15.4% and electricity prices by 12.6%. 

Producer prices have been falling for the ninth month in a row, but they fell at the slowest pace since July 2023. 

UK Retail Sales Held Steady In March 

The UK's retail sales volume was unchanged in March from the previous month but rose 0.8% from a year ago, the Office for National Statistics reported on Friday. 

Retail sales in February were revised to an increase of 0.1% from the previous month.  

The increase in sales of automotive fuel by 3.2% and non-food stores by 0.5% was offset by declines of 0.7% in food stores and 1.5% in non-store retailers. 

Retail sales rose 1.9% in the quarter ending in March when compared to the previous quarter ending in December. 

Europe Indexes and Yields

The DAX index decreased by 0.6% to 17,720.0; the CAC-40 index fell by 0.3% to 7,998.50; and the FTSE 100 index inched lower by 0.6% to 7,831.73.

The yield on 10-year German bonds edged up to 2.45%; French bonds inched lower to 2.97%; the UK gilts edged higher to 4.24%; and Italian bonds inched lower to 3.84%.

The euro edged higher to $1.064; the British pound inched higher to $1.246; and the U.S. dollar edged higher to 90.68 Swiss cents.

Brent crude decreased $0.49 to $86.61 a barrel, and the Dutch TTF natural gas fell by €0.59 to €31.51 per MWh.

Europe Stock Movers

Sodexo increased 4.1% to €80.40 after the company reported a net loss in the first half, driven by the weakness in discontinued operations. 

The company also confirmed organic revenue growth in 2024 will be near its previously estimated range of between 6% and 8%. 

Schneider Electric SA decreased 2.7% to €209.90 after the digital automation and energy management company confirmed that it is in preliminary purchase talks with the U.S.-based software company Bentley Systems Inc. 

Man Group declined 5% to 255.0 pence after the UK-based investment management company confirmed a net fund outflow of $1.6 billion in the first quarter. 

888 Holdings increased 2.0% to 81.36 pence after the online gambling company reiterated its full-year outlook. 

L'Oreal jumped 4.1% to €441.0 after the French cosmetic company reported a 9.4% increase in comparable sales in the first quarter. 

Nikkei 225 In Japan Leads Asian Market Selloff Amid Growing Worries of Regional War in the Middle East

Market sentiment in Tokyo and other financial capitals in Asia was battered by the worries of an all-out regional war sparked by rapidly escalating tensions between Israel and Iran. 

Asian markets fell in Friday's trading, and the Nikkei 225 Stock Average led the decliners with a loss of 3.4%.

In Tokyo, market sentiment has been weak as investors grapple with interest rate uncertainties, a persistent fall in the yen, worries about resurgent inflation, and escalating tensions in the Middle East. 

Israel is widely expected to be behind several confirmed explosions in Iraq, Syria, and western Iran's city of Isfahan, where Iran's key nuclear installations are located. 

However, Iranian officials told Reuters that there was no explosion near the nuclear installation, but the noise was related to Iran activating its air defense system, contradicting reports of explosions in Iran's local media. 

The U.S. official confirmed in an interview with ABC News that Israel is targeting Israel's nuclear installations as a retaliation to Iran's conducting its first-ever direct attack on Israel. 

Iran carried out its 300 drones and missile strikes after Israel attacked Iran's embassy in Syria, which Iran considers an attack on its territory and that killed two Iranian generals and six other ranking officials. 

Crude oil jumped 4%, gold edged 0.4%, and the yield on 10-year U.S. Treasury notes edged higher as investors sought safe-have assets. 

The CSI 300 index in Shanghai fell 1%, the ASX 200 index in Sydney dropped 1.5%, the KOSPI index in Seoul decreased 2.8%, and the Nifty 50 index in Mumbai fell 0.6%. 

In early afternoon trading, the Nikkei 225 Stock Average dropped 2.7% to 37,049.36 and the Topix index declined 2% to 2,623.30. 

The Nikkei 225 fell below 37,000 for the first time in ten weeks on the weakness in semiconductor stocks. 

The Nikkei 225 dropped as much as 3.4%, or 1,313.27, in the morning session but recovered from the session's low in the afternoon trading. 

The safe-haven yen rebounded to 153 before falling back to 154.40 against the U.S. dollar in late morning Tokyo trading, and the yield on a 10-year Japanese government bond was held at 0.84%. 

The Korean won declined to 1,385.53, the Indian rupee recovered from a record low of 83.65, and the Chinese yuan hovered near 7.25 against the U.S. dollar. 

Tech stocks led the decliners, with SoftBank, Tokyo Electron, Advantest, Screen Holdings, Renesas Electronics, and Disco Corp. declining between 3.5% and 8%. 

Banks and financial services stocks were also among the leading decliners as the yen approached the 155 mark. 

Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial Group declined between 0.7% and 0.9%. 

Inpex jumped as much as 3% before easing to a 1.1% increase to 2,398.50 after crude oil prices advanced 4%. 

Vehicle makers Toyota Motor, Honda Motor, Nissan Motor, and Subaru declined between 2% and 3%. 

China Indexes Drop 1% After Middle East Conflict Escalates

Market indexes in Shanghai and Hong Kong declined on the final day of the week after tensions in the Middle East rose. 

Three explosions were heard near Isfahan City in western Iran, and other large explosions were confirmed in Iraq and Syria that are suspected Israeli retaliatory attacks. 

The conflict between Iran and Israel is now playing out in the open after six months of covert fights between the two warring nations, in parallel to the Israel-Hamas conflict. 

Israel's missiles are likely to target Iran's nuclear facilities in Isfahan City and weaken Iran's nuclear program, but that could also lead to more intense and deadlier attacks from Iran targeting Israel's military and nuclear installations. 

Asian markets fell in Friday's trading, and the Nikkei 225 Stock Average led the decliners with a loss of 3.3%.

Crude oil jumped 4%, gold advanced 0.6%, and the yield on 10-year U.S. Treasury yields edged down to 4.56% as investors sought safer assets in the time of rising geopolitical tensions. 

The CSI 300 index in Shanghai fell 1%, the ASX 200 index in Sydney dropped 1.5%, and the KOSPI index in Seoul decreased 2.8%. 

The CSI 300 index decreased 0.9% to 3,538.37, and the Hang Seng index dropped 1.2% to 16,184.02. 

This week, the CSI 300 index is up 1.8%, and the Hang Seng index is down 1.9%. 

In a broad sell-off, tech stocks, financial services providers, and automobile makers were among the leading decliners. 

Alibaba Group declined 1.9% to HK$66.60, Tencent Holdings fell 0.5% to $302.60, and Baidu dropped 1.4% to HK$92.20.

Energy companies traded higher, reflecting a 4% jump in crude oil prices. 

CNOOC jumped 2.1% to HK$18.78, China Petroleum and Chemical gained 1.4% to HK$4.65, and Sinopec China Petrochemical gained 4.2% to HK$1.04. 

Sands China declined 4.4% to HK$18.06, and Galaxy Entertainment Group fell 0.9% to $33.80. 

Electric vehicle makers fell sharply on the worries of a prolonged price war after Li Auto priced its latest model cheaper than Tesla's best-selling car. 

Li Auto declined 7% to HK$106.40, BYD dropped 2.4% to HK$200.40, and Geely Automobile Holdings fell 3.2% to HK$8.76. 

India Movers: Bajaj Auto, HDFC Life, ICICI Securities, Infosys, Spicejet

Benchmark indexes in Mumbai dropped as much as 0.7% in the early trading after tensions between Iran and Israel escalated after three bombs exploded in western Iran. 

The Sensex index increased by 0.7% to 71,995.30, and the Nifty index fell by 0.6% to 21,861.50. 

On the Mumbai stock exchange, 42 stocks traded at their 52-week highs, and 4 stocks traded at their 52-week lows.

Infosys decreased 0.6% to ₹1,429.50 after the company reported weaker-than-expected quarterly results. 

The tech services exporter said consolidated revenue in the March quarter rose by 1.3% to ₹37,923 crore from ₹37,441 crore, and net income rose to ₹7,969 crore from ₹6,128 crore a year ago, respectively. 

Bajaj Auto increased 1.6% to ₹9,063.15 after the company reported a sharp jump in consolidated revenue and earnings, but the company's results on a standalone basis showed a decline in revenue. 

Consolidated revenue in the March quarter increased 30% to ₹11,250 crore, and net profit rose 18% to ₹2,011 crore. 

HDFC Life Insurance increased 0.5% to ₹607.95 after the life insurance company reported net profit in the March quarter jumped 14.7% to ₹411.6 crore from ₹358.6 crore a year ago.

Spicejet declined 0.6% to ₹62.96 after three aircraft leasing companies filed an insolvency petition with the National Company Law Tribunal demanding payment of ₹77 crore. 

ICICI Securities advanced 0.4% to ₹706.0 after the financial brokerage company reported a sharp jump in profit.

Revenue in the March quarter 74% to ₹1.544 crore from ₹885 crore and after-tax profit more than doubled to ₹537 crore from ₹263 crore a year ago. 

Rate Path Uncertainty and Stretched Tech Valuations Drag Down U.S. Indexes

Stocks turned lower on Wall Street, and benchmark indexes extended weekly losses as investors adjusted their rate path expectations and future levels of interest rates. 

The S&P 500 index and the Nasdaq Composite lacked direction in choppy trading, and investors debated future rate paths, the impact of sharply higher energy prices on inflation, and escalating tensions between Iran and Israel. 

Popular indexes wavered around the flatline, and the S&P 500 index is down more than 2% in the week, while the Nasdaq Composite has lost more than 3%.

The S&P 500 index and the Nasdaq Composite are likely to extend their losses to the third and fourth weeks, respectively, if they decline this week. 

Crude oil prices eased for the second day in a row after U.S. inventories rose more than expected at the end of last week, suggesting a slightly weakening demand outlook. 

The U.S. dollar's strength is also in focus, as a large number of companies in the S&P 500 index rely on foreign markets for their sales and earnings growth. 

The Japanese yen is trading at a 34-year low; the South Korean won is hovering near an 18-month low; the Indian rupee is at a record low; and the euro and the British pounds are at 4-month lows. 

The Chinese yuan is approaching a record low. 

U.S. Indexes and Yields

The S&P 500 index declined 0.2% to 5,010.01, and the Nasdaq Composite decreased 0.4% to 15,622.37. 

The yield on 2-year Treasury notes edged higher to 4.95%, 10-year Treasury notes inched down to 4.59%, and 30-year Treasury bonds edged lower to 4.71%.

WTI crude oil decreased $0.37 to $83.06 a barrel, and natural gas prices increased 3 cents to $1.75 a thermal unit.

Gold increased by $15.39 to $2,383.23 an ounce, and silver rose 10 cents to $28.32. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.88.

U.S. Stock Movers

D.R. Horton increased 5.2% to $153.31 after the homebuilder reported better-than-expected results in the fiscal second quarter. 

Revenue in the March quarter increased 14% to $9.1 billion from $7.9 billion, net income rose to $1.2 billion from $941 million, and diluted earnings per share advanced to $3.52 from $2.73 a year ago.  

Blackstone decreased 1.8% to $121.0 after the alternative asset manager reported better-than-expected quarterly results. 

The company also lowered its cash dividend to 83 cents per share, payable on May 6 to shareholders on record on April 29. 

Total revenue increased to $3.7 billion from $1.4 billion, net income soared to $1.7 billion from $210 million, and diluted earnings per share advanced to $1.11 from 11 cents a year ago. 

The company repurchased 0.7 million common shares in the quarter and 3.4 million common shares over the last twelve months. 

Total assets under management rose to $1.06 trillion from $991 billion a year ago. 

European Markets Rebounded, Bond Yields Edged Lower 

European markets edged higher, bond yields in the region inched lower, and the euro held near recent levels as investors debated future rate paths. 

Benchmark indexes in Frankfurt, Paris, and London looked up in choppy trading, and investors reviewed the latest update on EU car registration, current account surplus, and construction activities in the currency union. 

Eurozone Current Account Surplus Expands 

The current account surplus widened to €31.6 billion in February from €10.7 billion a year ago, the European Central Bank reported Thursday. 

The increase was driven by the surge in international goods trade surplus to €40.5 billion from €21.0 billion, and service surplus decreased to €2.1 billion from €4.6 billion from a year ago, respectively. 

On a seasonally adjusted basis, the current account surplus declined to a three-month low of €29 billion from €39 billion in January. 

EU Passenger Car Registration Falls In March 

New passenger car registration in the European Union decreased 5.2% from a year ago in March to 1.0 million vehicles, according to the European Automobile Manufacturers' Association. 

The annual pace of passenger car registration declined for the first time in three months on weak demand in all four leading markets in the union. 

Car registration reversed the increase of 10.1% in February, and the annual pace of decline was the largest since July 2022, largely because of the timing of the Easter holidays. 

However, passenger car registration increased 16% from February to 884,000. 

Car registration declined 6.2% in Germany, 4.7% in Spain, 3.7% in Italy, and 1.5% in France. 

In the first quarter of the year, car registrations increased by 4.4%, reaching nearly 2.8 million units. 

The bloc’s major markets saw solid growth from January to March, with Italy and France each recording a 5.7% increase, followed by 4.2% in Germany and 3.1% in Spain.

Battery-electric car registrations fell by 11.3% to 134,397 units amid a broader market downturn, and as a result, battery-powered vehicle's market share shrank to 13% from 13.9% in the month a year ago. 

The first quarter of 2024 ended with a total of 332,999 new battery-electric cars registered, a 3.8% rise from the same quarter in the previous year.

Europe Indexes and Yields

The DAX index increased by 0.4% to 17,837.40; the CAC-40 index rose by 0.5% to 8,023.26; and the FTSE 100 index inched higher by 0.4% to 7,877.05.

The yield on 10-year German bonds edged up to 2.45%; French bonds inched lower to 2.95%; the UK gilts edged lower to 4.23%; and Italian bonds inched lower to 3.84%.

The euro edged higher to $1.064; the British pound inched higher to $1.246; and the U.S. dollar edged higher to 90.68 Swiss cents.

Brent crude decreased $0.14 to $87.43 a barrel, and the Dutch TTF natural gas rose by €0.26 to €32.19 per MWh.

Europe Stock Movers

BHP Group declined 0.5% to 2,354.0 pence after iron ore production declined in the fiscal third quarter. 

Centamin PLC dropped 4.5% to 123.40 pence after production in the first quarter slightly declined. 

Danone SA rose 1.8% to €59.60 after the yogurt maker posted better-than-expected results and reiterated its fiscal year 2024 sales outlook. 

Net sales in the first quarter decreased by 2.5% to 6.78 billion from 6.96 billion in the quarter a year ago. 

Comparable sales in the quarter rose 4.1% after taking into account the sale of its French biscuit brand, Michel et Augustin. 

The company guided comparable sales to increase between 3% and 5%, with a moderate improvement in recurring operating margin. 

easyJet rose 2.5% to 531.0 pence after the discount airline forecasted a smaller-than-expected loss in the first half. 

Passengers in the fiscal second quarter increased to 16.8 million from 15.6 million, and seats flown increased to 19.3 million from 17.7 million, resulting in a slight decline in load factor to 87% from 88% in the quarter a year ago. 

Total group revenue and headline costs for the first half are expected to be around £3,270 million and around £3,620 million, respectively. 

China Indexes Struggle In Cautious Trading 

Stocks in Shanghai and Hong Kong diverged for the second day in a row this week as investors grappled with multiple headwinds amid optimism about corporate results. 

Market sentiment was cautious in China after the latest batch of economic data confirmed a fragile recovery. 

Chinese policymakers are betting on technology and manufacturing to drive exports higher to overcome domestic market weakness primarily linked to weak consumer demand and a protracted property market slump. 

China's transition from property market-led economic growth to manufacturing-driven expansion is not without its own challenges, as many sectors face overcapacity, falling margins, and intense competition. 

Moreover, investors were on the sidelines after the U.S. Fed's hawkish stance on rate outlook and escalating tensions between Iran and Israel stoked fears of crude oil supply disruptions. 

In stock trading, casino and insurance companies were among the leading gainers, and tech stocks were among the leading decliners. 

The CSI 300 index advanced 0.6% to 3,587.11, and the Hang Seng index gained 1.4% to 16,469.29. 

CNOOC and Petro China declined 2% after crude oil prices stayed near five-week highs, denting companies refining margins. 

JD.com, Baidu.com, Alibaba Group, and Tencent Holdings traded between a loss of 0.5% and an increase of 1.5%. 

Longfor Group, China Vanke, China Resource Land, and Henderson Land advanced between 0.4% and 1.5%. 

Sands China and Galaxy Entertainment Group gained around 1.8% in active trading in the hopes of rising tourism spending. 

Bank of China, ICBC, Agriculture Bank of China, China Communication Bank, and China Construction Bank advanced between 0.1% and 2.5%. 

Rising Home Supply Failed to Lift Existing Home Sales In March

Existing home sales in March declined as buyers struggled to find homes amid elevated prices and rising mortgage rates. 

Existing home sales, which include single-family and multi-family homes, decreased in March by 4.3% to an annual pace of 4.19 million, the National Association of Realtors said in its monthly update Thursday. 

Existing home sales decreased 3.7% from 4.35 million in March 2023. 

"Though rebounding from cyclical lows, home sales are stuck because interest rates have not made any major moves," said NAR Chief Economist Lawrence Yun. 

Despite the higher availability of homes, home sales declined and the median home price increased. 

Homes available for sale at the end of March increased by 4.7% from February to 1.11 million units, and by 14.4% from 970,000 a year ago. 

The median existing-home sale price increased 4.8% from a year ago to $393.500, the ninth monthly price increase in a row and the record price for the month of March. 

Higher mortgage rates weighed on the market, and 30-year fixed-rate mortgages averaged 6.88% as of the end of last week, compared to 6.82% in the previous week and 6.27% a year ago. 

Single-family home sales declined to a seasonally adjusted annual rate of 3.8 million in March, down 4.3% from 3.97 million in February and 2.8% from the prior year. 

The median existing single-family home price increased 4.7% from a year ago to $397,200.

Regionally, sales declined in the larger markets but rose in the Northeast. 

Existing home sales in the Northeast increased 4.2% from February to a 500,000 annual pace; in the Midwest, sales shrank 1.9% to an annual rate of 1.01 million; in the South, sales decreased 5.9% to an annual rate of 1.9 million; and in the West, sales dropped 8.2% to an annual rate of 780,000 in March, respectively. 

U.S. Movers: Alaska Air, Blackstone, D.R. Horton, Equifax

 D.R. Horton increased 5.2% to $153.31 after the homebuilder reported better-than-expected results in the fiscal second quarter. 

Revenue in the March quarter increased 14% to $9.1 billion from $7.9 billion, net income rose to $1.2 billion from $941 million, and diluted earnings per share advanced to $3.52 from $2.73 a year ago.  

Blackstone decreased 1.8% to $121.0 after the alternative asset manager reported better-than-expected quarterly results. 

The company also lowered its cash dividend to 83 cents per share, payable on May 6 to shareholders on record on April 29. 

Total revenue increased to $3.7 billion from $1.4 billion, net income soared to $1.7 billion from $210 million, and diluted earnings per share advanced to $1.11 from 11 cents a year ago. 

The company repurchased 0.7 million common shares in the quarter and 3.4 million common shares over the last twelve months. 

Total assets under management rose to $1.06 trillion from $991 billion a year ago. 

Equifax declined 9.6% to $214.04 after the credit score company's second quarter outlook fell short of market expectations. 

Revenue in the first quarter increased 7% to $1.4 billion from $1.3 billion, net income to $124.9 million from $112.4 million, and diluted earnings per share advanced to $1.01 from 92 cents a year ago. 

The company projected revenue in the second quarter to range between $1.41 billion and $1.43 billion and diluted earnings per share between $1.65 and $1.75. 

Alaska Air Group jumped 4.4% to $44.66 after the regional airline reported better-than-expected quarterly results. 

Revenue in the March quarter increased 2% to $2.23 billion from $2.19 billion, net loss shrank to $132 million from $142 million, and diluted loss per share contracted to $1.05 from $1.11 a year ago. 

The company received $162 million in compensation from Boeing related to Flight 1282 and the Boeing Max plane grounding ordered by the Federal Aviation Authority. 

The company said it expects additional payments from Boeing. 

The company's purchase of Hawaiian Airlines for $18 a share was approved by Hawaiian shareholders, and the proposed merger needs regulatory approval. 

Alaska Air projected earnings per share for the second quarter between $2.20 and $2.40 and for full-year 2024 between $3.25 and $5.25. 

U.S. Averages Struggle, Dollar's Strength to Weigh on Earnings

Stocks advanced in early trading as investors shifted their focus to earnings releases, and Treasury yields hovered near recent highs. 

The S&P 500 index and the Nasdaq Composite lacked direction in choppy trading, and investors debated future rate paths, the impact of sharply higher energy prices on inflation, and escalating tensions between Iran and Israel. 

Crude oil prices eased for the second day in a row after U.S. inventories rose more than expected at the end of last week, suggesting a slightly weakening demand outlook. 

The U.S. dollar's strength is also in focus, as a large number of companies in the S&P 500 index rely on foreign markets for their sales and earnings growth. 

The Japanese yen is trading at a 34-year low, the South Korean won is hovering near an 18-month low, the Indian rupee is at a record low, and the euro and the British pounds are at 4-month lows. 

The Chinese yuan is approaching its record low. 

U.S. Indexes and Yields

The S&P 500 index increased 0.07% to 5,023.36, and the Nasdaq Composite decreased 0.03% to 15,678.15. 

The yield on 2-year Treasury notes edged higher to 4.95%, 10-year Treasury notes inched down to 4.59%, and 30-year Treasury bonds edged lower to 4.71%.

WTI crude oil decreased $0.48 to $82.21 a barrel, and natural gas prices increased 5 cents to $1.76 a thermal unit.

Gold increased by $17.22 to $2,383.56 an ounce, and silver rose 22 cents to $28.43. 

The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.88.

U.S. Stock Movers

D.R. Horton increased 5.2% to $153.31 after the homebuilder reported better-than-expected results in the fiscal second quarter. 

Revenue in the March quarter increased 14% to $9.1 billion from $7.9 billion, net income rose to $1.2 billion from $941 million, and diluted earnings per share advanced to $3.52 from $2.73 a year ago.  

Blackstone decreased 1.8% to $121.0 after the alternative asset manager reported better-than-expected quarterly results. 

The company also lowered its cash dividend to 83 cents per share, payable on May 6 to shareholders on record on April 29. 

Total revenue increased to $3.7 billion from $1.4 billion, net income soared to $1.7 billion from $210 million, and diluted earnings per share advanced to $1.11 from 11 cents a year ago. 

The company repurchased 0.7 million common shares in the quarter and 3.4 million common shares over the last twelve months. 

Total assets under management rose to $1.06 trillion from $991 billion a year ago. 

Equifax declined 9.6% to $214.04 after the credit score company's second quarter outlook fell short of market expectations. 

Revenue in the first quarter increased 7% to $1.4 billion from $1.3 billion, net income to $124.9 million from $112.4 million, and diluted earnings per share advanced to $1.01 from 92 cents a year ago. 

The company projected revenue in the second quarter to range between $1.41 billion and $1.43  billion and diluted earnings per share between $1.65 and $1.75. 

Europe Movers: ABB, BHP, Centamin, Danone, easyJet, Nokia, Sartorius

European markets advanced, bond yields edged slightly lower, and the euro held firm as investors debated future rate paths and appropriate levels for interest rates.  

The DAX index increased by 0.5% to 17,767.51; the CAC-40 index rose by 0.4% to 8,010.58; and the FTSE 100 index inched higher by 0.2% to 7,864.08.

The yield on 10-year German bonds edged up to 2.45%; French bonds inched lower to 2.95%; the UK gilts edged lower to 4.23%; and Italian bonds inched lower to 3.84%.

BHP Group declined 0.5% to 2,354.0 pence after iron ore production declined in the fiscal third quarter. 

Centamin PLC dropped 4.5% to 123.40 pence after production in the first quarter slightly declined. 

Danone SA rose 1.8% to €59.60 after the yogurt maker posted better-than-expected results and reiterated its fiscal year 2024 sales outlook. 

Net sales in the first quarter decreased by 2.5% to 6.78 billion from 6.96 billion in the quarter a year ago. 

Comparable sales in the quarter rose 4.1% after taking into account the sale of its French biscuit brand, Michel et Augustin. 

The company guided comparable sales to increase between 3% and 5%, with a moderate improvement in recurring operating margin. 

easyJet rose 2.5% to 531.0 pence after the discount airline forecasted a smaller-than-expected loss in the first half. 

Passengers in the fiscal second quarter increased to 16.8 million from 15.6 million, and seats flown increased to 19.3 million from 17.7 million, resulting in a slight decline in load factor to 87% from 88% in the quarter a year ago. 

Total group revenue and headline costs for the first half are expected to be around £3,270 million and around £3,620 million, respectively. 

ABB Ltd. increased 5.4% to CHF 43.98 after the Swiss engineering company reported higher operating earnings and offered a positive outlook for revenue growth in 2024. 

Nokia increased 0.1% to €3.17 after the Finnish telecom equipment maker reported weaker-than-expected profit in the first quarter. 

Sartorius AG declined 10.4% to €223.0 after the German lab supply maker reported weaker-than-expected new orders and revenue in the first quarter. 

Automakers advanced following the release of monthly passenger car registrations in the European Union. 

Volkswagen increased 0.5% to €121.65, Mercedes-Benz Group added 0.4% to €74.70, Renault added 0.9% to €48.75, and Peugeot Invest gained 0.7% to €110.20. 

Stellantis declined 0.4% to €24.18. 

EU Current Account Surplus Widened, EU Passenger Car Registration Fell 5.2%

European markets edged higher, bond yields in the region inched lower, and the euro held near recent levels as investors debated future rate paths. 

Benchmark indexes in Frankfurt, Paris, and London looked up in choppy trading, and investors reviewed the latest update on EU car registration, current account surplus, and construction activities in the currency union. 

Eurozone Current Account Surplus Expands 

The current account surplus widened to €31.6 billion in February from €10.7 billion a year ago, the European Central Bank reported Thursday. 

The increase was driven by the surge in international goods trade surplus to €40.5 billion from €21.0 billion, and service surplus decreased to €2.1 billion from €4.6 billion from a year ago, respectively. 

On a seasonally adjusted basis, the current account surplus declined to a three-month low of €29 billion from €39 billion in January. 

EU Passenger Car Registration Falls In March 

New passenger car registration in the European Union decreased 5.2% from a year ago in March to 1.0 million vehicles, according to the European Automobile Manufacturers' Association. 

The annual pace of passenger car registration declined for the first time in three months on weak demand in all four leading markets in the union. 

Car registration reversed the increase of 10.1% in February, and the annual pace of decline was the largest since July 2022, largely because of the timing of the Easter holidays. 

However, passenger car registration increased 16% from February to 884,000. 

Car registration declined 6.2% in Germany, 4.7% in Spain, 3.7% in Italy, and 1.5% in France. 

In the first quarter of the year, car registrations increased by 4.4%, reaching nearly 2.8 million units. 

The bloc’s major markets saw solid growth from January to March, with Italy and France each recording a 5.7% increase, followed by 4.2% in Germany and 3.1% in Spain.

Battery-electric car registrations fell by 11.3% to 134,397 units amid a broader market downturn, and as a result, battery-powered vehicle's market share shrank to 13% from 13.9% in the month a year ago. 

The first quarter of 2024 ended with a total of 332,999 new battery-electric cars registered, a 3.8% rise from the same quarter in the previous year.

Europe Indexes and Yields

The DAX index increased by 0.5% to 17,767.51; the CAC-40 index rose by 0.4% to 8,010.58; and the FTSE 100 index inched higher by 0.2% to 7,864.08.

The yield on 10-year German bonds edged up to 2.45%; French bonds inched lower to 2.95%; the UK gilts edged lower to 4.23%; and Italian bonds inched lower to 3.84%.

The euro edged higher to $1.064; the British pound inched higher to $1.246; and the U.S. dollar edged higher to 90.68 Swiss cents.

Brent crude decreased $1.27 to $86.27 a barrel, and the Dutch TTF natural gas rose by €0.14 to €31.81 per MWh.

Europe Stock Movers

BHP Group declined 0.5% to 2,354.0 pence after iron ore production declined in the fiscal third quarter. 

Centamin PLC dropped 4.5% to 123.40 pence after production in the first quarter slightly declined. 

Danone SA rose 1.8% to €59.60 after the yogurt maker posted better-than-expected results and reiterated its fiscal year 2024 sales outlook. 

Net sales in the first quarter decreased by 2.5% to 6.78 billion from 6.96 billion in the quarter a year ago. 

Comparable sales in the quarter rose 4.1% after taking into account the sale of its French biscuit brand, Michel et Augustin. 

The company guided comparable sales to increase between 3% and 5%, with a moderate improvement in recurring operating margin. 

easyJet rose 2.5% to 531.0 pence after the discount airline forecasted a smaller-than-expected loss in the first half. 

Passengers in the fiscal second quarter increased to 16.8 million from 15.6 million, and seats flown increased to 19.3 million from 17.7 million, resulting in a slight decline in load factor to 87% from 88% in the quarter a year ago. 

Total group revenue and headline costs for the first half are expected to be around £3,270 million and around £3,620 million, respectively. 

ABB Ltd. increased 5.4% to CHF 43.98 after the Swiss engineering company reported higher operating earnings and offered a positive outlook for revenue growth in 2024. 

Nokia increased 0.1% to €3.17 after the Finnish telecom equipment maker reported weaker-than-expected profit in the first quarter. 

Sartorius AG declined 10.4% to €223.0 after the German lab supply maker reported weaker-than-expected new orders and revenue in the first quarter. 

Automakers advanced following the release of monthly passenger car registrations in the European Union. 

Volkswagen increased 0.5% to €121.65, Mercedes-Benz Group added 0.4% to €74.70, Renault added 0.9% to €48.75, and Peugeot Invest gained 0.7% to €110.20. 

Stellantis declined 0.4% to €24.18. 

Nikkei Index Extends Losses to Fourth Consecutive Day, Yen Hovers Near 34-year Low

Benchmark indexes in Tokyo declined for the fourth session in a row as investors weigh the upcoming earnings outlook against weakening global market sentiment. 

Stocks were under pressure in Tokyo after the yield on 10-year Japanese government bonds edged higher to 0.9% and the yen hovered near its 34-year low at 154.30 against the U.S. dollar. 

The yield on 2-year Japanese government bonds decreased to 0.27%, andthe yield on 30-year bbondsedged lower to 1.92%. 

Investors are looking forward to the release of earnings from vehicle makers, trading companies, banks, and electronics exporters. 

But market sentiment remained negative following the decline in indexes on Wall Street. 

The S&P 500 index and the Nasdaq Composite declined for the fourth day in a row on the ongoing interest rate uncertainty after the latest batch of economic data pointed to resilient U.S. economies and labor market conditions. 

Moreover, several of the of the Federal Reserve's policymakers poured cold water over the expectations of a rate cut at the next meeting in June. 

The Nikkei 225 Stock Average rose 0.2% to 38,037.33, and the Topix index added 0.6% to 2,677.82. 

Tokyo Electron, Advantest, SoftBank, and Lasertec declined between 0.5% and 4%. 

Toyota Motor advanced 0.4% to ¥3,611.0 on the news that the vehicle maker is recalling 211,000 Prius to fix a door handle malfunction. 

Mitsubishi UFJ, Sumitomo Mitsui, and Mizuho Financial Group rose between 1.2% and 1.5%. 

Marubeni, Itochu, Mitsui & Co., and Sumitomo Group rose between 1.5% and 2.5%. 

China Indexes Struggle In Cautious Trading

Stocks in Shanghai and Hong Kong diverged for the second day in a row this week as investors grappled with multiple headwinds amid optimism about corporate results. 

Market sentiment was cautious in China after the latest batch of economic data confirmed a fragile recovery. 

Chinese policymakers are betting on technology and manufacturing to drive exports higher to overcome domestic market weakness primarily linked to weak consumer demand and a protracted property market slump. 

China's transition from property market-led economic growth to manufacturing-driven expansion is not without its own challenges, as many sectors face overcapacity, falling margins, and intense competition. 

Moreover, investors were on the sidelines after the U.S. Fed's hawkish stance on rate outlook and escalating tensions between Iran and Israel stoked fears of crude oil supply disruptions. 

In stock trading, casino and insurance companies were among the leading gainers, and tech stocks were among the leading decliners. 

The CSI 300 index advanced 0.6% to 3,587.11, and the Hang Seng index gained 1.4% to 16,469.29. 

CNOOC and Petro China declined 2% after crude oil prices stayed near five-week highs, denting companies refining margins. 

JD.com, Baidu.com, Alibaba Group, and Tencent Holdings traded between a loss of 0.5% and an increase of 1.5%. 

Longfor Group, China Vanke, China Resource Land, and Henderson Land advanced between 0.4% and 1.5%. 

Sands China and Galaxy Entertainment Group gained around 1.8% in active trading in the hopes of rising tourism spending. 

Bank of China, ICBC, Agriculture Bank of China, China Communication Bank, and China Construction Bank advanced between 0.1% and 2.5%. 

Movers: Ambuja Cements, Angel One, ICICI Lombard, IIFL, Infosys, Tata Communications, Vodafone Idea

Stocks struggled to stay above the flatline in Thursday's trading as investors reviewed a fresh batch of earnings and overlooked elevated tensions in the Middle East. 

The Sensex index increased by 0.3% to 73,183.10, and the Nifty index rose by 0.3% to 22,212.35. 

On the Mumbai stock exchange, 59 stocks traded at their 52-week highs, and 2 stocks traded at their 52-week lows.

Vodafone Idea decreased 1.3% to ₹12.90 after the company confirmed raising ₹5,400 crore through the sale of stocks at ₹11 per share to an anchor investor. 

The embattled wireless telecom company is looking to raise an additional ₹18,000 crore in an offering to investors as early as next week. 

Infosys decreased 3.6% to ₹1,415.20 ahead of the company's release of March quarter results later in the day, and investors are estimating sales and earnings to increase by single digits. 

ICICI Lombard General Insurance rose 1.5% to ₹1,654.10 after the insurance company reported March quarter earnings rose, driven by a healthy increase in premiums and investment income. 

Net income in the quarter rose 18.9% to ₹519.50 crore compared to ₹436.9 crore a year ago. 

Angel One increased 0.7% to ₹2,855.0 after the stock brokerage company reported a surge in revenue and earnings in the March quarter. 

Revenue rose 65% to 1,357 crore, and net income advanced 27% to 350 crore from a year ago, respectively. 

Ambuja Cements increased 2.5% to ₹622.0, and the Adani family exercised the final tranche of warrants and increased their stake in the company to 70.3% through an investment of ₹8,339 crore. 

Tata Communications declined 2.9% to ₹1,853.0 after the company reported mixed results in the March quarter. 

Consolidated revenue rose 24.5% to ₹5,691 crore, and net profit fell slightly to ₹321.5 crore from ₹326.6 crore in the similar period a year ago. 

IIFL increased 1.7% to ₹429.20 and the company's board approved the right issue of 1 share for every nine held by shareholders.