- Scott Peters
- 04 Apr, 2024
- New York City
Stocks advanced, Treasury yields held steady, and gold prices jumped to a record high as investors looked beyond rate jitters and dialed down rate-cut expectations.
The S&P 500 index increased 0.4% to 5,251.70, and the Nasdaq Composite rose 0.9% to 16,411.42.
The yield on 2-year Treasury notes edged lower to 4.70%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
Levi Strauss & Co. soared 10.5% to $22.05 after the denim apparel maker reported quarterly results that met market expectations.
Revenue in the fiscal first quarter ending on February 25 declined 7.8% to $1.56 billion, net income swung a loss of $10.6 million from a profit of $114.7 million, and diluted earnings per share were a loss of 3 cents compared to 29 cents a year ago.
The company declared a cash dividend of 12 cents per share payable on May 23 to shareholders on record on May 9.
Intuitive Machines jumped 2% to $6.16 after the company won a U.S. space agency's $30 million contract to build a lunar terrain vehicle.
ConAgra Brands jumped 4.9% to $30.50 after the company reported quarterly results that met market expectations.
Revenue in the fiscal third quarter declined 1.7% to $3.03 billion, net income declined 9.8% to $308.7 million from $341.7 million, and diluted earnings per share dropped to 64 cents from 71 cents a year ago.
Volvo SE gained 0.6% to SEK 288.50 after the vehicle maker reported a significant increase in sales in March and in the first quarter.
The Sweden-based vehicle maker, owned by China-based Geely, said the company sold 78,970 passenger cars in March, an increase of 25% from a year ago.
First-quarter vehicle sales soared 12% from a year ago to 182,687.
Electric vehicle sales in Europe advanced 34% in March and rose 22% in the first quarter; however, electric vehicle sales in China plunged 34%.
Lamb Weston Holdings plunged 18% to $83.44 after the potato processing company reported weaker-than-expected earnings due to the slower transition to a new computer system.
Revenue in the fiscal third quarter ending on February 25 increased 16% to $1.46 billion, net income fell to $146.1 million from $175.1 million, and diluted earnings per share dropped to $1.01 from $1.21 a year ago.
“The ERP transition temporarily reduced the visibility of finished goods inventories located at distribution centers, which affected our ability to fill customer orders,” the company highlighted in a statement to investors.
The lower visibility negatively impacted sales and margins.
Lamb Weston forecasts 2024 adjusted income between $5.50 and $5.65 a share and 2024 sales between $6.54 billion and $6.6 billion; both metrics are below Wall Street analyst expectations.
- Barry Adams
- 04 Apr, 2024
- New York City
Stocks on Wall Street bounced around amid interest rate uncertainty and rising commodity prices.
The S&P 500 index gained 0.4% and the Nasdaq Composite advanced 0.9% as the yield on the 10-year Treasury note hovered near a four-month high.
Investors scaled their rate-cut expectations after Federal Reserve Chair Jerome Powell said on Wednesday that more evidence is needed that inflation is moving toward the target level of 2% before policymakers can begin to cut rates.
Federal Reserve Bank of Atlanta president Raphael Bostic said in an interview with CNBC that only one rate cut is likely in 2024.
Investors have been digesting a flood of mixed economic news in the last two weeks, and the PCE price index showed it stayed well above the Fed's target rate in February.
Moreover, manufactured goods orders and construction spending also increased sharply from a year ago in February.
Initial Weekly Jobless Claims Rose to a 2-month High
U.S. initial jobless claims in the week ending March 30 rose by 9,000 to 221,000, according to the latest update released by the Department of Labor.
The initial claims rose to a two-month high, and continuing claims, which lag by a week, inched slightly lower to 1.79 million.
U.S. Trade Deficit Expanded to a 10-month High
The U.S. Commerce Department reported that the trade deficit rose by $1.3 billion from the previous month to $68.9 billion in February.
Exports of goods and services in February rose 2.3% to $263.0 billion, and imports advanced 2.2% to $331.9 billion.
The goods deficit decreased by $0.3 billion to $91.4 billion, and the services surplus fell by $1.6 billion to $22.5 billion.
U.S. Indexes and Yields
The S&P 500 index increased 0.4% to 5,251.70, and the Nasdaq Composite rose 0.9% to 16,411.42.
The yield on 2-year Treasury notes edged lower to 4.70%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $0.35 to $85.23 a barrel, and natural gas prices decreased 1 cent to $1.83 a thermal unit.
Gold decreased by $9.88 to $2,287.25 an ounce, and silver fell 11 cents to $26.99.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.05.
U.S. Stock Movers
Levi Strauss & Co. soared 10.5% to $22.05 after the denim apparel maker reported quarterly results that met market expectations.
Revenue in the fiscal first quarter ending on February 25 declined 7.8% to $1.56 billion, net income swung a loss of $10.6 million from a profit of $114.7 million, and diluted earnings per share were a loss of 3 cents compared to 29 cents a year ago.
The company declared a cash dividend of 12 cents per share payable on May 23 to shareholders on record on May 9.
Intuitive Machines jumped 2% to $6.16 after the company won a U.S. space agency's $30 million contract to build a lunar terrain vehicle.
ConAgra Brands jumped 4.9% to $30.50 after the company reported quarterly results that met market expectations.
Revenue in the fiscal third quarter declined 1.7% to $3.03 billion, net income declined 9.8% to $308.7 million from $341.7 million, and diluted earnings per share dropped to 64 cents from 71 cents a year ago.
Volvo SE gained 0.6% to SEK 288.50 after the vehicle maker reported a significant increase in sales in March and in the first quarter.
The Sweden-based vehicle maker, owned by China-based Geely, said the company sold 78,970 passenger cars in March, an increase of 25% from a year ago.
First-quarter vehicle sales soared 12% from a year ago to 182,687.
Electric vehicle sales in Europe advanced 34% in March and rose 22% in the first quarter; however, electric vehicle sales in China plunged 34%.
- Inga Muller
- 04 Apr, 2024
- Frankfurt
European markets edged higher but stayed near the flatline as investors reviewed the latest update on private sector activities in the eurozone and producer price inflation.
Producer price inflation extended its annual decline in February to the eighth month in a row due to the lower cost of energy.
The eurozone private sector's business activity expanded for the first time in ten months, according to the latest survey released by S&P Global on Thursday.
The DAX index increased by 0.01% to 18,369.64, the CAC-40 index rose by 0.1% to 8,158.65, and the FTSE 100 index inched higher by 0.4% to 7,970.61.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched lower to 2.88%; the UK gilts edged lower to 4.07%; and Italian bonds inched higher to 3.76%.
DS Smith increased 1.7% to 409.60 pence after the company confirmed it is still in merger talks with the U.K.-listed and Austria-based Mondi Plc.
DS Smith is also evaluating a competitive bid from the U.S.-based International Paper, which valued the company at 415 pence per share of £5.72 billion, higher than the £5.1 billion offer from Mondi.
The packaging industry is going through a wave of consolidation after demand soared for packaging materials following the boom in pandemic-driven e-commerce.
Basilea Pharmaceutica AG jumped 7.2% to CHF 41.45 after the Switzerland-based pharmaceutical company received approval from the U.S. drug regulator for Zevtera, an antibiotic drug for the treatment of multiple infections.
Future Plc jumped 12.1% to 671.50 pence after the diversified specialist media company reported revenue growth in the second quarter.
The company reiterated its full-year fiscal 2024 outlook, citing continued improvement in its U.S. business.
Entain PLC rose 3.5% to 785.80 pence after sports betting and online gambling company Chairman of the Board Barry Gibson stepped down from the management position in September after spending four years in the office.
Volvo SE gained 0.6% to SEK 288.50 after the vehicle maker reported a significant increase in sales in March and in the first quarter.
The Sweden-based vehicle maker, owned by China-based Geely, said the company sold 78,970 passenger cars in March, an increase of 25% from a year ago.
First-quarter vehicle sales soared 12% from a year ago to 182,687.
Electric vehicle sales in Europe advanced 34% in March and rose 22% in the first quarter; however, electric vehicle sales in China plunged 34%.
- Bridgette Randall
- 04 Apr, 2024
- Frankfurt
European stock market indexes rebounded as investors reacted to a fresh batch of economic news and corporate updates.
Benchmark indexes in Paris, Frankfurt, and London edged higher into record territory as investors shifted their attention from interest rate uncertainty to the upcoming earnings season.
Eurozone Private Sector Activities Expanded for the First Time In Ten Months
The eurozone private sector's business activity expanded for the first time in ten months, according to the latest survey released by S&P Global on Thursday.
The HCOB Eurozone Composite PMI was revised upward to 50.3 in March from the initial estimate of 49.9 and higher than 49.2 in February.
The overall increase in business activity was modest because the weakness in manufacturing output continued to overshadow service sector activities.
Manufacturing output contracted at 46.1 compared to 46.5, and the service sector improved to 51.5 from 50.2 in February, respectively.
The index tracking expectation for future business activities reached a high not seen since February 2022, indicating a positive outlook in the coming months.
Producer Prices Extended Annual Decline to 10th Month
On the economic front, producer prices in the eurozone declined 8.3% in February after falling at an annual rate of 8.0% in January, Eurostat reported Thursday.
Producer prices, a measure of wholesale inflation, eased by 1.0% in February from the previous month after easing 0.9% in the previous month.
Producer prices declined on a monthly basis for the fourth month in a row and eased on an annual basis for the tenth month in a row.
The monthly decline in producer prices was the largest in February since May 2023, after energy prices fell at a faster pace of 3.5% compared to 3.0% in January and prices for intermediate goods held steady for the second consecutive month.
Producer prices, excluding volatile energy prices, inched higher by 0.1% following a 0.3% increase in January.
Europe Indexes and Yields
The DAX index increased by 0.01% to 18,369.64, the CAC-40 index rose by 0.1% to 8,158.65, and the FTSE 100 index inched higher by 0.4% to 7,970.61.
The yield on 10-year German bonds edged down to 2.38%; French bonds inched lower to 2.88%; the UK gilts edged lower to 4.07%; and Italian bonds inched higher to 3.76%.
The euro edged higher to $1.085, the British pound inched higher to $1.265, and the U.S. dollar edged higher to 90.61 Swiss cents.
Brent crude increased $0.40 to $89.15. a barrel, and the Dutch TTF natural gas fell by €0.18 to €25.80 per MWh.
Europe Stock Movers
DS Smith increased 1.7% to 409.60 pence after the company confirmed it is still in merger talks with the U.K.-listed and Austria-based Mondi Plc.
DS Smith is also evaluating a competitive bid from the U.S.-based International Paper, which valued the company at 415 pence per share of £5.72 billion, higher than the £5.1 billion offer from Mondi.
The packaging industry is going through a wave of consolidation after demand soared for packaging materials following the boom in pandemic-driven e-commerce.
Basilea Pharmaceutica AG jumped 7.2% to CHF 41.45 after the Switzerland-based pharmaceutical company received approval from the U.S. drug regulator for Zevtera, an antibiotic drug for the treatment of multiple infections.
Future Plc jumped 12.1% to 671.50 pence after the diversified specialist media company reported revenue growth in the second quarter.
The company reiterated its full-year fiscal 2024 outlook, citing continued improvement in its U.S. business.
Entain PLC rose 3.5% to 785.80 pence after sports betting and online gambling company Chairman of the Board Barry Gibson stepped down from the management position in September after spending four years in the office.
- Arun Goswami
- 04 Apr, 2024
- Mumbai
Stocks in Mumbai struggled for the second day in a row after higher commodity prices posed additional risks to inflation and the interest rate outlook.
The Sensex index decreased 0.03% to 73,876.83, and the Nifty index edged down 0.08% to 22,434.65.
On the Mumbai stock exchange, 194 stocks traded at their 52-week highs and 17 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.10%, and the Indian rupee held steady at ₹83.49 against the U.S. dollar.
Vodafone Idea increased 1.1% to ₹13.60 after the company scheduled a board meeting to review a proposal to issue preferred stock or convertible securities to promoter groups worth ₹2,075 crore.
Power Finance jumped 2.5% to ₹417.60, and the company paid a record ₹2,033 crore in interim dividends to the central government.
Union Bank of India rose 0.6% to ₹157.80, and the company said it raised $500 million, or ₹4,200 crore, with the help of its Dubai-based office.
RBL Bank Ltd. increased 1.1% to ₹253.30, and the company said its loans outstanding and deposits rose in the March quarter from a year ago.
Loans advanced rose 22% to ₹1.03 trillion, or lakh crore, and deposits rose 19% to ₹85,640 crore from a year ago, respectively.
Federal Bank increased 0.5% to ₹154.75 after the bank said its loan portfolio and deposit base increased in the March quarter.
Outstanding loans increased by 20% to 2.13 trillion or lakh crore, and total deposits rose by 18% to ₹2.52 trillion or lakh crore from a year ago, respectively.
GE Power India soared 10.1% to ₹334.60 after the company won an order worth 774.9 crore from Jaiprakash Power.
Avenue Supermarts gained 1.2% to ₹4,465.0 after the grocery retailer said stand-alone revenue in the March quarter rose 19.9% from a year ago to ₹12,393.5 crore.
KEC International jumped 4.5% to ₹768.0 after the company said its construction, mining, and cable business units received orders worth ₹816 crore.
- Barry Adams
- 03 Apr, 2024
- New York City
Market indexes on Wall Street lacked direction as investors debated the rate outlook and the Fed's action.
Market participants turned cautious amid the growing realization that the Federal Reserve may wait longer before lowering rates after a string of economic reports showed a resilient economy and a healthy job market.
The S&P 500 index and the Nasdaq Composite pulled higher after trading around flatline in early hours as investors dialed back rate-cut expectations amid stronger-than-expected manufacturing and jobs market data following a sticky inflation report in the previous week.
Despite eleven rate cuts over the last two years, inflation has moderated but stayed above the Fed's preferred target rate of 2%.
Moreover, policymakers may keep interest rates unrevised because of resilient economic conditions and a moderating but healthy labor market.
U.S. Treasury yields held steady and approached a five-month high after investors walked away from rate-cut expectations.
The private sector added more than expected jobs in March, according to the latest monthly update released by payroll processing firm ADP on Wednesday morning.
Companies expanded payrolls by 184,000 in March, faster than the revised 155,000 increase in February.
However, the ADP data series is highly volatile and subject to severe revisions.
U.S. Indexes and Yields
The S&P 500 index increased 0.4% to 5,226.45, and the Nasdaq Composite fell 0.6% to 16,332.38.
The yield on 2-year Treasury notes hovered at 4.72%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $0.41 to $85.85 a barrel, and natural gas prices increased 2 cents to $1.87 a thermal unit.
Gold decreased by $4.84 to $2,284.28 an ounce, and silver rose 6 cents to $26.21.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.75.
U.S. Stock Movers
Intel declined 5.2% to $41.65 after the advanced semiconductor maker reported a wider loss in its foundry operation.
Operating loss in 2023 expanded to $7.0 billion from $5.2 billion in 2022, after sales in 2023 plunged to $18.9 billion from $27.5 billion in the previous year.
Dave & Buster's gained 6.3% to $65.80 after the company reported its latest quarterly results.
Revenue in the fiscal fourth quarter ending on February 4, which included the 14th week, rose 6.3% to $599.1 million, net income declined to $36.2 million from $39 million, and diluted earnings per share rose to 88 cents from 80 cents a year ago.
The 14th week in the fourth quarter, also the 53rd week in the fiscal year, contributed $39.5 million in revenue.
Cal-Maine jumped 5.6% to $62.46 after egg producers reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending on March 2 decreased to $703.1 million from $997.5 million, bet income plunged to $146.4 million from $322.7 million, and diluted earnings per share dropped to $3.0 from $6.62 a year ago.
The net average selling price per dozen of eggs declined to $2.24 from $3.30 a year ago.
European Markets Rebound from Morning Lows
European markets pared morning losses after eurozone inflation eased more than expected in March.
Benchmark indexes in Paris and Frankfurt inched closer to record territory, and the reference indexes in London struggled to gain traction.
Stocks rebounded after eurozone inflation unexpectedly eased in March, stoking speculation that policymakers may lower the rate as early as June.
Despite the easing of overall and core inflation in March, prices are still rising faster than the central bank's target rate of 2%, suggesting that it may be too soon for policymakers to lower the interest rate.
Moreover, crude oil prices rebounded to a five-month high due to the ongoing war in Ukraine, and persistent supply chain disruptions in the Red Sea.
Eurozone Inflation Slowed In March
Consumer price inflation in the eurozone eased to 2.4% in March from 2.6% in February, according to a preliminary report released by Eurostat.
Overall inflation dropped to a 28-month low and matched the level last seen in November.
The core rate of inflation, which excludes volatile energy and food prices, slowed to 2.9% from 3.1% in February.
Much of the decline in overall inflation was driven by the slowdown in price increases for goods, but service inflation held steady at 4.0%.
Energy price declines slowed to 1.8% from 3.7%, but food, tobacco, and alcohol inflation moderated to 2.7% from 3.9%, and non-energy industrial goods inflation slowed to 1.1% from 1.6% from the previous month, respectively.
On a monthly basis, inflation accelerated to an increase of 0.8% in March from a rise of 0.6% in February.
Euro Area Unemployment Held at Record Low 6.5%
The jobless rate in the Euro Area held firm at 6.5% in February, matching January's level, Eurostat reported Wednesday.
The number of people looking for jobs increased by 17,000 from January to 11.102 million; however, the jobless rate among those younger than 25 years was unchanged at 14.6%.
The number of unemployed declined by 30,000 from a year ago.
The youth jobless rate held steady for the fourth consecutive month, and about 2.319 people were looking for a job in the eurozone.
The unemployment rate across the eurozone varied sharply, and across the four major economies of the currency union, Spain led with 11.5%, followed by Italy with 7.5%, Italy with 7.4%, and Germany with 3.2%.
Europe Indexes and Yields
The DAX index increased by 0.4% to 18,363.20, the CAC-40 index rose by 0.3% to 8,153.10, and the FTSE 100 index inched higher by 0.01% to 7,936.86.
The yield on 10-year German bonds edged down to 2.36%; French bonds inched higher to 2.89%; the UK gilts edged lower to 4.08%; and Italian bonds inched higher to 3.79%.
The euro edged higher to $1.077, the British pound inched higher to $1.257, and the U.S. dollar held steady at 90.85 Swiss cents.
Brent crude increased $0.47 to $89.76. a barrel, and the Dutch TTF natural gas fell by €0.85 to €25.62 per MWh.
Europe Stock Movers
Lonza Group advanced 1.5% to CHF 540.20 before the Swiss chemical maker requested a trading halt before the pending announcement.
Swiss Re declined 2% to CHF 113.05 after the company appointed Andreas Berger as Group Chief Executive Office effective July 1.
Renishaw plc declined 3.3% to 4,205.0 pence after Siemens AG confirmed it has no plans to acquire the British engineering company.
Genmab A/S fell 1.8% to DKK 2,048.0 after the Danish biotech company announced the purchase of the privately held Profound Bio for $1.8 billion.
Wizz Air Holdings rose 0.6% to 2,132.0 pence after the discount carrier announced its March passenger traffic statistics.
In March 2024, Wizz Air carried 4,778,980 passengers, representing a 12.0% increase from a year ago at a load factor of 90.8%, impacted by home-bound traffic during the Easter holiday.
Over the twelve-month period to March, passenger traffic surged 21.4% to 62.0 million from 51.0 million in the similar period ending in March 2023.
Topps Tiles declined 3.9% to 42.30 pence after the UK-based tiles and supplies retailer reported lower half-year sales.
Sales in the first half ending in March declined 5.9% to £122 million, due to comparable sales in the second quarter falling 11.3%, driven by fewer customers and smaller sales volume.
The company also issued a profit warning, citing weak market conditions and subdued demand for renovation from individual customers.
"Group profitability in the first half of the year will be impacted by a number of factors, including the weaker market, the timing of the holiday pay accrual, and seasonally higher energy usage in the period.
We continue to expect the group's profits in 2024 to be weighted towards the second half as indicated in our Q1 trading update," the company highlighted in its statement to investors.
Meyer Burger Technology AG dropped 22% to CHF 0.016 after the Swiss solar panel maker said it completed its rights offering to raise additional capital.
Asian Markets Decline, Investors Dial Down Rate Cut Expectations
Market indexes in Japan, South Korea, and China dropped as much as 1% on the growing skepticism that the U.S. Federal Reserve would lower its rate in June after a string of economic data suggested stronger-than-expected economic activities.
Construction spending and manufactured goods orders rose sharply from a year ago in February, and job openings edged higher in March to 8.6 million, indicating moderate but healthy labor market conditions.
Taiwan Struck with 7.3 Magnitude Earthquake
Japan issued a tsunami alert after a 7.3-magnitude earthquake struck Taiwan and tremors felt as far away as Hong Kong.
Semiconductor plants evacuated plants in Taiwan after the earthquake struck the east coast of Taiwan at 7:58 local time on Wednesday, according to local authorities.
Taiwan Power Company confirmed that most of the power supply was restored within two hours of the earthquake.
The quake was the strongest to hit the island since 1999, when a 7.6-magnitude earthquake rocked the island and killed 2,400 people and damaged 50,000 structures in Taiwan's worst-recorded earthquakes.
Tokyo Indexes Turn Lower In Volatile Trading
Market indexes in Tokyo edged lower and dropped to a two-week low after investors dialed back U.S. rate-cut expectations.
Market sentiment was dented after the latest U.S. jobs report showed strong labor demand and resilient economic conditions.
Moreover, investors were on guard after Japan issued a tsunami alert for Okinawa Prefecture after Taiwan was struck by a 7.3-magnitude earthquake, killing at least 4 and injuring 97.
Japan's service index was revised lower to a seven-month high of 54.1 in March from the preliminary estimate of 54.9.
Despite the downward revision, service sector activities have been expanding for 19 consecutive months due to improving demand and an expanding customer base.
The Nikkei 225 index decreased 0.6% to 39,621.99, and the Topix index eased 0.01% to 2,715.70.
Rate-sensitive stocks and technology stocks were among the leading gainers amid weak market conditions in Tokyo trading.
Mitsubishi UFJ, Mizuho Group, and Sumitomo Mitsui gained between 0.3% and 2.2%.
Tokyo Electron, Screen Holdings, and Advantest gained between 0.4% and 1.6%, but SoftBank eased 1.3%.
Kansai Electric Power, Tokyo Gas, and Chubu Electric Power advanced between 2% and 4%.
Shanghai and Hong Kong Indexes Ease
Stocks in Shanghai and Hong Kong fell after strong U.S. economic data pushed U.S. bond yields to a three-month high, sparking global risk-off sentiment.
The market sentiment was overwhelmed by the global sell-off, and investors overlooked the improving service activities in China.
China's service activities rose at the fastest pace in three months, according to a private survey released by S&P Global.
The increase in service activities was driven by the rise in new orders and exports, which rose at the fastest pace in nine months amid improvements in demand conditions and new business development activities.
The Caixin China General Service PMI Index improved to 52.7 in March from a three-month low of 52.5 in February, and the index showed rising activities for the 15th month in a row.
Markets in Shanghai and Hong Kong have been on the defensive after the government intervention in February failed to spark a sustained recovery in financial markets.
The CSI 300 index declined 0.3% to 3,570.78, and the Hang Seng index dropped 0.7% to 16,806.29.
Alibaba Group declined 0.3% to HK$70.80 and erased an early gain of as much as 1.2% after the company confirmed the repurchase of $4.8 billion of its own stock in the first quarter.
Interest-rate-sensitive stocks and banks were among the leading decliners.
Bank of China declined 1.3% to HK$3.25, HSBC Holdings plc dropped 1.1% to $61.25, and China Construction Bank eased 0.2% to HK$4.84.
Xiaomi Corp. decreased 3.1% to HK$15.78 and erased about 9% of the gain in the previous session after the smartphone maker launched its first electric vehicle.
India Indexes Under Pressure Amid Rising Commodity Prices
Stocks in Mumbai struggled to advance in Wednesday's trading amid weakness in Asian markets.
The Sensex and the Nifty indexes edged down, and gold traded at a new record high amid rising tensions in the Middle East.
Moreover, crude oil prices in international markets traded at a 5-month high after Brent crude oil crossed $85 a barrel.
Investors remained cautious ahead of the start of the earnings season, and tech service companies are expected to report muted earnings growth.
Higher commodity prices in international markets also weighed on market sentiment, as rising tensions in the Middle East and Red Sea and the protracted war in Ukraine added to supply chain disruption worries and global interest rate uncertainty.
The Sensex index decreased 0.2% to 73,757.23, and the Nifty index edged down 0.3% to 22,385.70.
The yield on the 10-year Indian government bonds held steady at 7.10%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
- Scott Peters
- 03 Apr, 2024
- New York City
Intel declined 5.2% to $41.65 after the advanced semiconductor maker reported a wider loss in its foundry operation.
Operating losses in 2023 expanded to $7.0 billion from $5.2 billion in 2022, after sales in 2023 plunged to $18.9 billion from $27.5 billion in the previous year.
Dave & Buster's gained 6.3% to $65.80 after the company reported its latest quarterly results.
Revenue in the fiscal fourth quarter ending on February 4, which included the 14th week, rose 6.3% to $599.1 million, net income declined to $36.2 million from $39 million, and diluted earnings per share rose to 88 cents from 80 cents a year ago.
The 14th week in the fourth quarter, also the 53rd week in the fiscal year, contributed $39.5 million in revenue.
Cal-Maine jumped 5.6% to $62.46 after egg producers reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending on March 2 decreased to $703.1 million from $997.5 million, bet income plunged to $146.4 million from $322.7 million, and diluted earnings per share dropped to $3.0 from $6.62 a year ago.
The net average selling price per dozen of eggs declined to $2.24 from $3.30 a year ago.
Tesla declined 1.7% to $163.76 and extended its two-day loss to 10% after the electric vehicle maker reported unit sales declined 8.5% in the first quarter.
Fabless semiconductor companies traded down after a 7.3-magnitude earthquake hit Taiwan, forcing several semiconductor manufacturing companies to evacuate plants and close factories.
Taiwan Semiconductor decreased 0.3% to $139.85 after the largest semiconductor manufacturing company confirmed closing some operations earlier in the day.
Nvidia, Qualcomm, Arm Holdings, and Marvell, which rely on Taiwan Semiconductor for chip manufacturing, decreased by around 0.5% following the earthquake news.
- Barry Adams
- 03 Apr, 2024
- New York City
Stocks on Wall Street struggled to advance, and major indexes traded sideways as investors debated the future rate path and interest rate levels.
The S&P 500 index and the Nasdaq Composite traded around flatline in early trading as investors dialed back rate-cut expectations amid stronger-than-expected manufacturing and jobs market data following a sticky inflation report in the previous week.
Despite eleven rate cuts over the last two years, inflation has moderated but stayed above the Fed's preferred target rate of 2%.
Moreover, policymakers may keep interest rates unrevised because of resilient economic conditions and a moderating but healthy labor market.
U.S. Treasury yields held steady and approached a five-month high after investors walked away from rate-cut expectations.
The private sector added more than expected jobs in March, according to the latest monthly update released by payroll processing firm ADP on Wednesday morning.
Companies expanded payrolls by 184,000 in March, faster than the revised 155,000 increase in February.
However, the ADP data series is highly volatile and subject to severe revisions.
U.S. Indexes and Yields
The S&P 500 index decreased 0.1% to 5,202.45, and the Nasdaq Composite fell 0.3% to 16,190.98.
The yield on 2-year Treasury notes hovered at 4.72%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $0.39 to $85.83 a barrel, and natural gas prices increased 2 cents to $1.87 a thermal unit.
Gold decreased by $12.24 to $2,268.60 an ounce, and silver rose 6 cents to $26.21.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.75.
U.S. Stock Movers
Intel declined 5.2% to $41.65 after the advanced semiconductor maker reported a wider loss in its foundry operation.
Operating loss in 2023 expanded to $7.0 billion from $5.2 billion in 2022, after sales in 2023 plunged to $18.9 billion from $27.5 billion in the previous year.
Dave & Buster's gained 6.3% to $65.80 after the company reported its latest quarterly results.
Revenue in the fiscal fourth quarter ending on February 4, which included the 14th week, rose 6.3% to $599.1 million, net income declined to $36.2 million from $39 million, and diluted earnings per share rose to 88 cents from 80 cents a year ago.
The 14th week in the fourth quarter, also the 53rd week in the fiscal year, contributed $39.5 million in revenue.
Cal-Maine jumped 5.6% to $62.46 after egg producers reported better-than-expected quarterly results.
Revenue in the fiscal third quarter ending on March 2 decreased to $703.1 million from $997.5 million, bet income plunged to $146.4 million from $322.7 million, and diluted earnings per share dropped to $3.0 from $6.62 a year ago.
The net average selling price per dozen of eggs declined to $2.24 from $3.30 a year ago.
- Inga Muller
- 03 Apr, 2024
- Frankfurt
European stock market indexes flirted near record levels after overall inflation in the Euro Area unexpectedly eased in March.
The DAX index increased by 0.3% to 18,337.92, the CAC-40 index rose by 0.3% to 8,150.63, and the FTSE 100 index inched lower by 0.4% to 7,904.85.
The yield on 10-year German bonds edged down to 2.36%; French bonds inched higher to 2.89%; the UK gilts edged lower to 4.08%; and Italian bonds inched higher to 3.79%.
Lonza Group advanced 1.5% to CHF 540.20 before the Swiss chemical maker requested a trading halt before the pending announcement.
Swiss Re declined 2% to CHF 113.05 after the company appointed Andreas Berger as Group Chief Executive Office effective July 1.
Renishaw plc declined 3.3% to 4,205.0 pence after Siemens AG confirmed it has no plans to acquire the British engineering company.
Genmab A/S fell 1.8% to DKK 2,048.0 after the Danish biotech company announced the purchase of the privately held Profound Bio for $1.8 billion.
Wizz Air Holdings rose 0.6% to 2,132.0 pence after the discount carrier announced its March passenger traffic statistics.
In March 2024, Wizz Air carried 4,778,980 passengers, representing a 12.0% increase from a year ago at a load factor of 90.8%, impacted by home-bound traffic during the Easter holiday.
Over the twelve-month period to March, passenger traffic surged 21.4% to 62.0 million from 51.0 million in the similar period ending in March 2023.
Topps Tiles declined 3.9% to 42.30 pence after the UK-based tiles and supplies retailer reported lower half-year sales.
Sales in the first half ending in March declined 5.9% to £122 million, due to comparable sales in the second quarter falling 11.3%, driven by fewer customers and smaller sales volume.
The company also issued a profit warning, citing weak market conditions and subdued demand for renovation from individual customers.
"Group profitability in the first half of the year will be impacted by a number of factors, including the weaker market, the timing of the holiday pay accrual, and seasonally higher energy usage in the period.
We continue to expect the group's profits in 2024 to be weighted towards the second half as indicated in our Q1 trading update," the company highlighted in its statement to investors.
Meyer Burger Technology AG dropped 22% to CHF 0.016 after the Swiss solar panel maker said it completed its rights offering to raise additional capital.
- Bridgette Randall
- 03 Apr, 2024
- Frankfurt
European markets pared morning losses after eurozone inflation eased more than expected in March.
Benchmark indexes in Paris and Frankfurt inched closer to record territory, and the reference indexes in London struggled to gain traction.
Stocks rebounded after eurozone inflation unexpectedly eased in March, stoking speculation that policymakers may lower the rate as early as June.
Despite the easing of overall and core inflation in March, prices are still rising faster than the central bank's target rate of 2%, suggesting that it may be too soon for policymakers to lower the interest rate.
Moreover, crude oil prices rebounded to a five-month high due to the ongoing war in Ukraine, and persistent supply chain disruptions in the Red Sea.
Eurozone Inflation Slowed In March
Consumer price inflation in the eurozone eased to 2.4% in March from 2.6% in February, according to a preliminary report released by Eurostat.
Overall inflation dropped to a 28-month low and matched the level last seen in November.
The core rate of inflation, which excludes volatile energy and food prices, slowed to 2.9% from 3.1% in February.
Much of the decline in overall inflation was driven by the slowdown in price increases for goods, but service inflation held steady at 4.0%.
Energy price declines slowed to 1.8% from 3.7%, but food, tobacco, and alcohol inflation moderated to 2.7% from 3.9%, and non-energy industrial goods inflation slowed to 1.1% from 1.6% from the previous month, respectively.
On a monthly basis, inflation accelerated to an increase of 0.8% in March from a rise of 0.6% in February.
Euro Area Unemployment Held at Record Low 6.5%
The jobless rate in the Euro Area held firm at 6.5% in February, matching January's level, Eurostat reported Wednesday.
The number of people looking for jobs increased by 17,000 from January to 11.102 million; however, the jobless rate among those younger than 25 years was unchanged at 14.6%.
The number of unemployed declined by 30,000 from a year ago.
The youth jobless rate held steady for the fourth consecutive month, and about 2.319 people were looking for a job in the eurozone.
The unemployment rate across the eurozone varied sharply, and across the four major economies of the currency union, Spain led with 11.5%, followed by Italy with 7.5%, Italy with 7.4%, and Germany with 3.2%.
Europe Indexes and Yields
The DAX index increased by 0.3% to 18,337.92, the CAC-40 index rose by 0.3% to 8,150.63, and the FTSE 100 index inched lower by 0.4% to 7,904.85.
The yield on 10-year German bonds edged down to 2.36%; French bonds inched higher to 2.89%; the UK gilts edged lower to 4.08%; and Italian bonds inched higher to 3.79%.
The euro edged higher to $1.077, the British pound inched higher to $1.257, and the U.S. dollar held steady at 90.85 Swiss cents.
Brent crude increased $0.12 to $89.40. a barrel, and the Dutch TTF natural gas fell by €0.70 to €25.77 per MWh.
Europe Stock Movers
Lonza Group advanced 1.5% to CHF 540.20 before the Swiss chemical maker requested a trading halt before the pending announcement.
Swiss Re declined 2% to CHF 113.05 after the company appointed Andreas Berger as Group Chief Executive Office effective July 1.
Renishaw plc declined 3.3% to 4,205.0 pence after Siemens AG confirmed it has no plans to acquire the British engineering company.
Genmab A/S fell 1.8% to DKK 2,048.0 after the Danish biotech company announced the purchase of the privately held Profound Bio for $1.8 billion.
Wizz Air Holdings rose 0.6% to 2,132.0 pence after the discount carrier announced its March passenger traffic statistics.
In March 2024, Wizz Air carried 4,778,980 passengers, representing a 12.0% increase from a year ago at a load factor of 90.8%, impacted by home-bound traffic during the Easter holiday.
Over the twelve-month period to March, passenger traffic surged 21.4% to 62.0 million from 51.0 million in the similar period ending in March 2023.
Topps Tiles declined 3.9% to 42.30 pence after the UK-based tiles and supplies retailer reported lower half-year sales.
Sales in the first half ending in March declined 5.9% to £122 million, due to comparable sales in the second quarter falling 11.3%, driven by fewer customers and smaller sales volume.
The company also issued a profit warning, citing weak market conditions and subdued demand for renovation from individual customers.
"Group profitability in the first half of the year will be impacted by a number of factors, including the weaker market, the timing of the holiday pay accrual, and seasonally higher energy usage in the period.
We continue to expect the group's profits in 2024 to be weighted towards the second half as indicated in our Q1 trading update," the company highlighted in its statement to investors.
Meyer Burger Technology AG dropped 22% to CHF 0.016 after the Swiss solar panel maker said it completed its rights offering to raise additional capital.
- Arjun Pandit
- 03 Apr, 2024
- Mumbai
Market indexes in Japan, South Korea, and China dropped as much as 1% on the growing skepticism that the U.S. Federal Reserve would lower its rate in June after a string of economic data suggested stronger-than-expected economic activities.
Construction spending and manufactured goods orders rose sharply from a year ago in February, and job openings edged higher in March to 8.6 million, indicating moderate but healthy labor market conditions.
Taiwan Struck with 7.3 Magnitude Earthquake
Japan issued a tsunami alert after a 7.3-magnitude earthquake struck Taiwan and tremors felt as far away as Hong Kong.
Semiconductor plants evacuated plants in Taiwan after the earthquake struck the east coast of Taiwan at 7:58 local time on Wednesday, according to local authorities.
Taiwan Power Company confirmed that most of the power supply was restored within two hours of the earthquake.
The quake was the strongest to hit the island since 1999, when a 7.6-magnitude earthquake rocked the island and killed 2,400 people and damaged 50,000 structures in Taiwan's worst-recorded earthquakes.
Tokyo Indexes Turn Lower In Volatile Trading
Market indexes in Tokyo edged lower and dropped to a two-week low after investors dialed back U.S. rate-cut expectations.
Market sentiment was dented after the latest U.S. jobs report showed strong labor demand and resilient economic conditions.
Moreover, investors were on guard after Japan issued a tsunami alert for Okinawa Prefecture after Taiwan was struck by a 7.3-magnitude earthquake, killing at least 4 and injuring 97.
Japan's service index was revised lower to a seven-month high of 54.1 in March from the preliminary estimate of 54.9.
Despite the downward revision, service sector activities have been expanding for 19 consecutive months due to improving demand and an expanding customer base.
The Nikkei 225 index decreased 0.6% to 39,621.99, and the Topix index eased 0.01% to 2,715.70.
Rate-sensitive stocks and technology stocks were among the leading gainers amid weak market conditions in Tokyo trading.
Mitsubishi UFJ, Mizuho Group, and Sumitomo Mitsui gained between 0.3% and 2.2%.
Tokyo Electron, Screen Holdings, and Advantest gained between 0.4% and 1.6%, but SoftBank eased 1.3%.
Kansai Electric Power, Tokyo Gas, and Chubu Electric Power advanced between 2% and 4%.
Shanghai and Hong Kong Indexes Ease
Stocks in Shanghai and Hong Kong fell after strong U.S. economic data pushed U.S. bond yields to a three-month high, sparking global risk-off sentiment.
The market sentiment was overwhelmed by the global sell-off, and investors overlooked the improving service activities in China.
China's service activities rose at the fastest pace in three months, according to a private survey released by S&P Global.
The increase in service activities was driven by the rise in new orders and exports, which rose at the fastest pace in nine months amid improvements in demand conditions and new business development activities.
The Caixin China General Service PMI Index improved to 52.7 in March from a three-month low of 52.5 in February, and the index showed rising activities for the 15th month in a row.
Markets in Shanghai and Hong Kong have been on the defensive after the government intervention in February failed to spark a sustained recovery in financial markets.
The CSI 300 index declined 0.3% to 3,570.78, and the Hang Seng index dropped 0.7% to 16,806.29.
Alibaba Group declined 0.3% to HK$70.80 and erased an early gain of as much as 1.2% after the company confirmed the repurchase of $4.8 billion of its own stock in the first quarter.
Interest-rate-sensitive stocks and banks were among the leading decliners.
Bank of China declined 1.3% to HK$3.25, HSBC Holdings plc dropped 1.1% to $61.25, and China Construction Bank eased 0.2% to HK$4.84.
Xiaomi Corp. decreased 3.1% to HK$15.78 and erased about 9% of the gain in the previous session after the smartphone maker launched its first electric vehicle.
India Indexes Under Pressure Amid Rising Commodity Prices and Rate Uncertainties
Stocks in Mumbai struggled to advance in Wednesday's trading amid weakness in Asian markets.
The Sensex and the Nifty indexes edged down, and gold traded at a new record high amid rising tensions in the Middle East.
Moreover, crude oil prices in international markets traded at a 5-month high after Brent crude oil crossed $85 a barrel.
Investors remained cautious ahead of the start of the earnings season, and tech service companies are expected to report muted earnings growth.
Higher commodity prices in international markets also weighed on market sentiment, as rising tensions in the Middle East and Red Sea and the protracted war in Ukraine added to supply chain disruption worries and global interest rate uncertainty.
The Sensex index decreased 0.2% to 73,757.23, and the Nifty index edged down 0.3% to 22,385.70.
The yield on the 10-year Indian government bonds held steady at 7.10%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
- Arun Goswami
- 03 Apr, 2024
- Mumbai
Stocks in Mumbai faced headwinds in early trading on the worry of resurgent inflation after metal prices advanced and crude oil prices traded at a five-month high.
The Sensex index decreased 0.2% to 73,757.23, and the Nifty index edged down 0.3% to 22,385.70.
On the Mumbai stock exchange, 33 stocks traded at their 52-week highs and 3 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.10%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
UltraTech Cement rose 1% to ₹10,057.0, and the company reiterated its plans to increase its annual cement production capacity to 200 million tons.
The company also said it plans to invest ₹32,400 crore over the next three years to achieve its production goals.
JSW Energy rose 4.3% to ₹542.0, and the company's board approved an institutional equity offering to raise as much as ₹5,000 crore with a floor price of ₹510.09 per share.
HCL Technologies declined 1.6% to ₹1,531.95 after the company agreed to sell its 49% stake in a joint venture with the U.S.-based State Street for $172.5 million.
DroneAcharya Aerial Innovation gained 6.8% to ₹150.55 after the company received an order worth ₹4.7 crore for geographical information processing from a UK-based company.
Anupam Rasayan gained 0.5% to ₹884.60 after the company signed an agreement with a leading Japanese company to supply two intermediate chemicals using fluorination technology.
The $90 million, or ₹713 crore, contract spans seven years.
Olectra Greentech increased 0.1% to ₹1,916.95 after the company extended its contract with the China-based BYD Auto Industry for manufacturing and maintaining electric buses till the end of 2030.
National Aluminium Co. or Nalco gained 2.5% to ₹170.40 after the company reported record cast metal production and sales and record bauxite excavation in the fiscal year 2024 ending in March.
The aluminium production rose to 0.46 million tons and sale increased to 0.47 million tons and bauxite excavation increased to 7.6 million tons.
Ashiana Housing advanced 2.4% to ₹309.10 after the company announced the sale of all 224 residential units located in Gurugram, Haryana valued at ₹440.3 crore.
- Barry Adams
- 02 Apr, 2024
- New York City
U.S. benchmark indexes extended losses to the second day in a row, and yields on Treasury notes approached three-month highs after a string of data points highlighted a resilient economy.
The S&P 500 index and the Nasdaq Composite fell more than 1%, and the yield on 10-year Treasury notes advanced to a three-month high of 4.39%.
Manufactured goods orders surged more than 7% from a year ago, following the rise of construction spending by 10.7%.
Moreover, job openings edged slightly higher, and hirings and separations were stable for the third month in a row in February.
Investors are scaling back expectations of interest rate cuts as early as June after the personal consumption expenditures price index eased but stayed sharply higher than the Fed's 2% target rate.
Total construction activities, private and public, in February also rose more than expected from a year ago, monthly update from the U.S. Census Bureau showed on Monday.
New orders for manufactured goods in February rose following two consecutive monthly declines, increasing 1.4% monthly to $576.8 billion, the U.S. Census Bureau reported Tuesday.
This followed a monthly 3.8% decrease in January.
New orders for all manufactured goods rose 7.5% from a year ago, indicating strong demand for goods.
Shipments, following two consecutive months of decline, rose 1.4% from the previous month to $581.6 billion and advanced 7.1% from a year ago.
U.S. Indexes and Yields
The S&P 500 index decreased 0.9% to 5,198.17, and the Nasdaq Composite fell 1.1% to 16,219.45.
The yield on 2-year Treasury notes increased to 4.73%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $0.86 to $84.75 a barrel, and natural gas prices increased 4 cents to $1.87 a thermal unit.
Gold jumped to a record high on the hopes that the U.S. Federal Reserve is more likely to lower interest rates after the release of the weaker-than-expected PCE Price Index.
Moreover, elevated geopolitical tensions in the Middle East and the ongoing war in Ukraine contributed to market anxieties.
Gold increased by $10.60 to $2,261.11 an ounce, and silver rose 72 cents to $25.82.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.79.
U.S. Stock Movers
Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services finalized its capitation rates to 3.7% for financial year 2025, matching the rate in financial year 2024.
Humana dropped 10.9% to $313.0, CVS Health fell 6.5% to $74.49, UnitedHealth Group declined 4.3% to $468.54, and Cigna Group eased 1.9% to $357.32 on the worry that operating margin will remain under pressure.
Payments from the government to Medicare Advantage plans are expected to increase on average by 3.70%, or over $16 billion, from 2024 to 2025.
The federal government is projected to pay between $500 and $600 billion in Medicare Advantage payments to private health plans in 2025.
PVH Corp. plunged 22% to $108.40 after the apparel maker and the parent company of popular brands Tommy Hilfiger and Calvin Klein offered a weak full-year outlook, citing weak macroeconomic conditions in Europe.
General Electric Co. dropped 20% to $139.91 after the diversified conglomerate completed its three-way breakup, and its aerospace and energy business is scheduled to trade as a separate company starting Tuesday.
Canoo Inc. plunged 30% to $2.68 after the management highlighted "substantial doubt" about the company's ability to continue as a going concern.
Trump Media & Technology Group declined 1% to $48.16 and extended a two-day loss to more than 22% after the company reported a sharply higher quarterly loss in its latest quarter a day ago.
Tesla declined 6.7% to $163.65 after the electric vehicle maker reported sharply lower deliveries in the first quarter.
Tesla deliveries in the first quarter declined to 386,810 units from 412,376 units a year ago, and production eased to 433,371 units from 440.808 units a year ago.
European Markets Drop 1% Tracking Losses in New York
European market indexes struggled to advance, bond yields edged higher, and the euro held steady in Tuesday's trading.
Market sentiment was cautiously optimistic as investors reviewed mixed updates on factory activities in the eurozone, the U.K., Spain, Italy, and Holland.
Benchmark indexes in Paris, Frankfurt, and London hovered near recent record highs as investors debated future interest rate paths amid a weak macroeconomic backdrop and a moderating but elevated inflation level.
Crude oil prices advanced to a five-month high, stoking fears that higher energy prices may fuel another bout of inflation, supporting the case for higher-for-longer interest rates.
In the afternoon trading, benchmark indexes dropped more than 1% tracking losses in New York on the worry that the Federal Reserve is more likely to delay its rate cut following the recent string of positive economic data.
UK Home Price Annual Change Accelerate In March
The UK home price unexpectedly declined in March from the previous month, according to the latest update released by the Nationwide Building Society.
The Nationwide Building Society's house price index decreased 0.2% from the previous month in March, after rising 0.7% in February.
The home price index increased 1.6% from a year ago, faster than 1.2% rise in February, and the average home price increased to £261,142 from £260,420 in the previous month.
Euro Area Inflation Expectations Moderate
The consumer expectations of inflation in the Euro Area moderated in February, according to the latest survey released by the European Central Bank.
Median expectations of inflation over the next 12 months eased to 3.1% in February from 3.3% in January, the survey showed.
The inflation expectations dropped to the lowest since the start of the Ukraine war; however, the three-year forward inflation outlook was unchanged at 2.5%.
However, consumers anticipated home prices to advance at a slightly faster pace of 2.4% from 2.2% in January, but mortgage rate expectations were unchanged at 5.1%.
Unemployment rate expectations over the next 12 months stayed the same at 10.9%, and economic growth over the same period was unchanged at -1.1%.
Consumers were slightly more optimistic about nominal income growth expectations, with an increase of 1.4% compared to the previous expectation of 1.2% in January, but nominal spending growth expectations were stable at 3.7%.
Europe Indexes and Yields
The DAX index decreased by 1.1% to 18,283.13, the CAC-40 index fell by 0.9% to 8,130.05, and the FTSE 100 index inched lower by 0.2% to 7,935.09.
The yield on 10-year German bonds edged up to 2.39%; French bonds inched higher to 2.89%; the UK gilts edged higher to 4.09%; and Italian bonds inched lower to 3.76%.
The euro edged higher to $1.076, the British pound inched higher to $1.256, and the U.S. dollar held steady at 90.84 Swiss cents.
Brent crude increased $0.73 to $88.37. a barrel, and the Dutch TTF natural gas fell by €0.88 to €26.47 per MWh.
Europe Stock Movers
Rheinmetall AG jumped 2.2% to €533.40 after the German automotive products and arms maker won an order worth 135 million from the military contractor KNDS Group.
UBS Group advanced 0.5% to CHF 27.89 after the Swiss bank launched a new stock repurchase program of up to $2 billion.
Metals and mining companies advanced after manufacturing activities expanded at a faster pace in the U.S. and China.
Antofagasta, Anglo America, and Glencore gained between 1% and 2.5%.
BP plc and Shell PLC jumped 2.9% after Brent crude oil prices approached a five-month high of $89 a barrel on the expectation of rising demand in China and falling inventories in the U.S.
Persimmon declined 1.9% to 1,290.50 pence, and Taylor Wimpey decreased 1,290.50 pence after the home price index unexpectedly fell in March after higher mortgage rates dented demand.
CTS Eventim increased 0.5% to €82.95 after the German festival ticketing company signed a put option agreement to acquire Vivendi's festival and ticketing operation outside of France for an undisclosed amount.
See Tickets, owned by Vivendi, sold about 44 million tickets in 2023 for trade shows, sports events, concerts, and other consumer and business events in the U.S., Belgium,
Vivendi's ticketing business generated about €105 million of the total of €137 million through its broader festival operations, with U.S. and UK revenues accounting for the majority of the share.
Asian Markets Turn Lower Amid Rate Uncertainties
Asian markets rebounded; the Nikkei index in Tokyo soared more than 1.5% but erased most of the gains; and market indexes in Shanghai struggled to gain traction.
The Hang Seng index in Hong Kong advanced 2.4% after investors returned from a long weekend and reacted to an improving economic manufacturing activity report released over the weekend.
However, market indexes in South Korea and Australia closed mixed amid interest rate uncertainties.
Japan Indexes Erase Early Gains in Choppy Trading
Stocks in Japan attempted to rebound in Tuesday's trading in cautious trading after the U.S. manufacturing survey showed stronger-than-expected activities in March.
Moreover, investors also turned cautious a day after the release of data on business confidence among large manufacturing companies and the persistent weakness in factory activities for the tenth month in a row.
In other economic news, the monetary base in Japan increased by 1.6% from a year ago in March to 666,240 trillion yen, the Bank of Japan said on Tuesday.
The monetary base data for February was revised higher to 2.4% from the previous estimate of 2.1%, and the seasonally adjusted monetary base rose 3.6%.
The Nikkei 225 index rose 0.1% to 39,837.47, and the Topix index fell 0.2% to 2,714.93.
Large manufacturing companies traded lower on the prospect of higher labor costs, but tech companies continued to extend this year's gains.
Tokyo Electron, SoftBank, Screen Holdings, and Disco Corp. gained between 1% and 3%.
Sumco Corp., Ebara Corp., and Rrenesas Electronics gained between 2% and 4%.
Toyota Motor, Honda Motor, Nissan Motor, and Subaru declined between 1% and 4%.
Nippon Steel advanced 2% to ¥3,689.0 as the company made its final push to acquire U.S. Steel for $14.1 billion.
Hong Kong Stocks Rebound, Shanghai Stocks Struggle Near Flatline
Stocks in Shanghai lacked direction, but benchmark indexes in Hong Kong advanced after investors reacted positively to the rising factory activity data released over the weekend.
China's manufacturing purchasing managers' index increased to 50.8 in March from 49.1 in February, the National Bureau of Statistics reported on Sunday.
Moreover, investors hoped that foreign investors would continue to purchase Chinese stocks following the net inflows in February and March.
The Hang Seng index declined nearly 3% in the first quarter and extended four-year losses on the protracted property market slump, weak consumer and investor confidence, and the government's prioritizing of national security over the economy, targeting foreign firms.
The CSI 300 index decreased 0.5% to 3,576.11, but the Hang Seng index rose 2.2% to 16,912.34.
Bank of China, China Merchant Bank, ICBC, and Agriculture Bank of China advanced between 1% and 4% in Hong Kong trading.
Xiaomi Corp. soared 10.4% to HK$16.48 after the smart phone maker reported strong demand for its electric vehicle released last week.
India Stocks Look Down, Rupee Holds Firm Near Record Low
Stocks lacked direction in Mumbai trading, and investors awaited interest rate decisions from the Reserve Bank of India on Friday.
The Sensex and the Nifty indexes traded around the flatline as investors debated future rate paths and domestic macroeconomic conditions.
The yield on 5-year Indian government bonds held stable, and the Indian rupee traded near record lows after the U.S. dollar edged higher against major international currencies.
The Sensex index increased 0.04% to 74,044.45, and the Nifty index edged up 0.2% to 22,490.05.
On the Mumbai stock exchange, 68 stocks traded at their 52-week highs and 12 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.05%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
- Brian Turner
- 02 Apr, 2024
- New York City
The number of job openings, hires, and separations were a little unchanged for the third month in a row.
Job openings at the end of the last business day of February rose by 8.000 to 8.8 million, the U.S. Bureau of Labor Statistics reported Tuesday.
Total hires in the month were 5.8 million and separations were 5.6 million; both activities were little changed from the previous month.
Job Openings
The number of job openings is down from a series high of 12.2 million in March 2022, after post-pandemic demand drove demand for new staff.
The rate was 5.3% for the third month in a row.
In February, job openings increased in finance and insurance by 126,000; state and local government, excluding education, by 91,000; and arts, entertainment, and recreation by 51,000.
Job openings decreased in information by 85,000 and in federal government by 21,000.
Job Separations
The number of total separations in February changed little, at 5.6 million, and the rate was unchanged at 3.5%.
Over the month, the number of total separations increased in arts, entertainment, and recreation by 64,000 but decreased in transportation, warehousing, and utilities by 62,000.
In February, the number of quits was little changed at 3.5 million, and the rate was 2.2% for the fourth consecutive month.
In February, the number and rate of layoffs and discharges changed little, at 1.7 million and 1.1%, respectively.
The number of layoffs and discharges increased in accommodation and food services by 67,000 and in arts, entertainment, and recreation by 57,000.
- Scott Peters
- 02 Apr, 2024
- New York City
Stocks on Wall Street headed lower, and the tech-heavy Nasdaq Composite index declined more than 1%.
Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services proposed a lower than expected rate increase in the financial year 2025.
The S&P 500 index decreased 0.8% to 5,200.07, and the Nasdaq Composite fell 1.2% to 16,198.84.
The yield on 2-year Treasury notes increased to 4.73%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $1.12 to $85.01 a barrel, and natural gas prices decreased 4 cents to $1.78 a thermal unit.
Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services finalized its capitation rates to 3.7% for financial year 2025, matching the rate in financial year 2024.
Humana dropped 10.9% to $313.0, CVS Health fell 6.5% to $74.49, UnitedHealth Group declined 4.3% to $468.54, and Cigna Group eased 1.9% to $357.32 on the worry that operating margin will remain under pressure.
Payments from the government to Medicare Advantage plans are expected to increase on average by 3.70%, or over $16 billion, from 2024 to 2025.
The federal government is projected to pay between $500 and $600 billion in Medicare Advantage payments to private health plans in 2025.
PVH Corp. plunged 22% to $108.40 after the apparel maker and the parent company of popular brands Tommy Hilfiger and Calvin Klein offered a weak full-year outlook, citing weak macroeconomic conditions in Europe.
General Electric Co. dropped 20% to $139.91 after the diversified conglomerate completed its three-way breakup, and its energy business, GE Vernova, is scheduled to trade as a separate company starting Tuesday.
General Electric spun off its medical devices business, GE Healthcare, in 2023.
The industrial conglomerate's ill-focused expansion in financial services, powered by financial leverage, forced the company's breakup years later.
Canoo Inc. plunged 30% to $2.68 after the management highlighted "substantial doubt" about the company's ability to continue as a going concern.
Trump Media & Technology Group declined 1% to $48.16 and extended a two-day loss to more than 22% after the company reported a sharply higher quarterly loss in its latest quarter a day ago.
Tesla declined 6.7% to $163.65 after the electric vehicle maker reported sharply lower deliveries in the first quarter.
Tesla deliveries in the first quarter declined to 386,810 units from 412,376 units a year ago, and production eased to 433,371 units from 440.808 units a year ago.