U.S. Movers: Alphabet, AMD, Chipotle, Simon Property, Uber Technologies, Walt Disney

Alphabet Inc. plunged 7.3% to $192.60 after the parent company of Google and YouTube reported weaker-than-expected revenue in its cloud computing division as it escalates investment in artificial intelligence.

Revenue increased 12% to $96.45 billion from $86.31 billion, net income climbed 28% to $26.54 billion from $20.69 billion, and earnings per diluted share rose 31% to $2.15 from $1.64 a year ago.

Dividend payments to stockholders of Class A, Class B, and Class C shares totaled $2.4 billion for the quarter.

The company is planning to spend $75 billion this year as it continues to build out its artificial intelligence offering.

On Tuesday, China said it would probe Google over violations of antimonopoly laws after Washington slapped 10% levies on Chinese goods.

Although Google services are not accessible in China, the company still operates in the country, primarily focused on sales and engineering for its advertising business. It also has employees working on services including Google Cloud and customer solutions.

Virtually all brands, apart from Apple and Huawei, pay licensing fees to Google to use the Android system on their devices.

Simon Property Group Inc. eased 0.03% to $173.30 after the real estate investment company beat fourth-quarter estimates for funds from operations.

Revenue increased to $1.58 billion from $1.53 billion, net income declined to $667.2 million from $747.5 million, and earnings per diluted share fell to $2.04 from $2.29 a year ago.

Funds from operations for the quarter rose to $1.389 billion from $1.382 billion, and FFO earnings per share dropped to $3.68 from $3.69 in the prior year.

Real estate funds from operations climbed to $1.26 billion from $1.21 billion, and real estate FFO per share increased to $3.35 from $3.23 a year earlier.

Looking ahead to the full year 2025, the company estimated net income between $6.95 and $7.20 per share, and real estate FFO and FFO in the range of $12.40 to $12.65 per share.

Chipotle Mexican Grill Inc. dropped 5.5% to $55.78 after the fast food chain's same-store sales in fiscal 2025 are likely to slow to a low- to mid-single-digit increase.

Revenue increased to $2.85 billion from $2.52 billion, net income jumped to $331.8 million from $282.1 million, and earnings per diluted share rose to 24 cents from 20 cents a year ago.

The company opened 119 restaurants during the quarter, compared to 121 restaurants a year earlier.

The company proposed to purchase up to $300 million worth of its shares.

Advanced Micro Devices Inc. dropped 8.6% to $109.32 after the graphics and chip designer reported declining earnings in the fourth quarter.

Revenue surged 24% to $7.66 billion from $6.17 billion, net income slumped 28% to $482 million from $667 million, and earnings per diluted share fell to 29 cents from 41 cents a year ago.

The data center revenue in the quarter was up 69% to $3.9 billion, gaming revenue dropped 59% to $563 million, and embedded segment revenue slumped 13% to $923 million year-over-year.

For the first quarter of 2025, AMD estimated revenue of approximately $7.1 billion, up 30% from a year ago, and a non-GAAP gross margin at 54%.

Uber Technologies Inc. slumped 7% to $64.80 after the ride-sharing app and delivery platform operator's revenues were ahead of market expectations, but the company offered a conservative estimate of gross bookings in the first quarter. 

Revenue increased to $11.96 billion from $9.94 billion, net income climbed to $6.9 billion from $1.7 billion, and earnings per diluted share rose to $3.21 from 66 cents a year ago.

For the first quarter of 2025, the company estimated growth in gross bookings of 17% to 21% on a constant currency basis and adjusted EBITDA of $1.79 billion to $1.89 billion, or 30% to 37% higher than $1.5 billion year-over-year.

Gross bookings in the fourth quarter were $44.2 billion, and the company guided bookings in the first quarter to range between $42 billion and $43.5 billion.

Uber plans to repurchase $1.5 billion worth of shares of its common stock as part of its previously announced $7.0 billion share repurchase authorization.

The Walt Disney Co. gained 1.1% to $114.54 after the media and entertainment company reported higher earnings for the first quarter of 2025 ending in December.

Revenue increased 5% to $24.7 billion from $23.5 billion, net income jumped to $2.64 billion from $2.15 billion, and earnings per diluted share rose 35% to $1.40 from $1.04 a year ago.

Looking ahead to the second quarter, the company estimated a modest decline in Disney+ subscribers compared to the first quarter.

For the full year 2025, Disney’s India business will contribute $73 million, compared to $254 million in the prior year, and the sports segment will add $9 million, compared to a loss of $636 million a year ago.

U.S. Movers: Alphabet, AMD, Chipotle, Simon Property, Uber Technologies, Walt Disney

Alphabet Inc. plunged 7.3% to $192.60 after the parent company of Google and YouTube reported weaker-than-expected revenue in its cloud computing division as it escalates investment in artificial intelligence.

Revenue increased 12% to $96.45 billion from $86.31 billion, net income climbed 28% to $26.54 billion from $20.69 billion, and earnings per diluted share rose 31% to $2.15 from $1.64 a year ago.

Dividend payments to stockholders of Class A, Class B, and Class C shares totaled $2.4 billion for the quarter.

The company is planning to spend $75 billion this year as it continues to build out its artificial intelligence offering.

On Tuesday, China said it would probe Google over violations of antimonopoly laws after Washington slapped 10% levies on Chinese goods.

Although Google services are not accessible in China, the company still operates in the country, primarily focused on sales and engineering for its advertising business. It also has employees working on services including Google Cloud and customer solutions.

Virtually all brands, apart from Apple and Huawei, pay licensing fees to Google to use the Android system on their devices.

Simon Property Group Inc. eased 0.03% to $173.30 after the real estate investment company beat fourth-quarter estimates for funds from operations.

Revenue increased to $1.58 billion from $1.53 billion, net income declined to $667.2 million from $747.5 million, and earnings per diluted share fell to $2.04 from $2.29 a year ago.

Funds from operations for the quarter rose to $1.389 billion from $1.382 billion, and FFO earnings per share dropped to $3.68 from $3.69 in the prior year.

Real estate funds from operations climbed to $1.26 billion from $1.21 billion, and real estate FFO per share increased to $3.35 from $3.23 a year earlier.

Looking ahead to the full year 2025, the company estimated net income between $6.95 and $7.20 per share, and real estate FFO and FFO in the range of $12.40 to $12.65 per share.

Chipotle Mexican Grill Inc. dropped 5.5% to $55.78 after the fast food chain's same-store sales in fiscal 2025 are likely to slow to a low- to mid-single-digit increase.

Revenue increased to $2.85 billion from $2.52 billion, net income jumped to $331.8 million from $282.1 million, and earnings per diluted share rose to 24 cents from 20 cents a year ago.

The company opened 119 restaurants during the quarter, compared to 121 restaurants a year earlier.

The company proposed to purchase up to $300 million worth of its shares.

Advanced Micro Devices Inc. dropped 8.6% to $109.32 after the graphics and chip designer reported declining earnings in the fourth quarter.

Revenue surged 24% to $7.66 billion from $6.17 billion, net income slumped 28% to $482 million from $667 million, and earnings per diluted share fell to 29 cents from 41 cents a year ago.

The data center revenue in the quarter was up 69% to $3.9 billion, gaming revenue dropped 59% to $563 million, and embedded segment revenue slumped 13% to $923 million year-over-year.

For the first quarter of 2025, AMD estimated revenue of approximately $7.1 billion, up 30% from a year ago, and a non-GAAP gross margin at 54%.

Uber Technologies Inc. slumped 7% to $64.80 after the ride-sharing app and delivery platform operator's revenues were ahead of market expectations, but the company offered a conservative estimate of gross bookings in the first quarter. 

Revenue increased to $11.96 billion from $9.94 billion, net income climbed to $6.9 billion from $1.7 billion, and earnings per diluted share rose to $3.21 from 66 cents a year ago.

For the first quarter of 2025, the company estimated growth in gross bookings of 17% to 21% on a constant currency basis and adjusted EBITDA of $1.79 billion to $1.89 billion, or 30% to 37% higher than $1.5 billion year-over-year.

Gross bookings in the fourth quarter were $44.2 billion, and the company guided bookings in the first quarter to range between $42 billion and $43.5 billion.

Uber plans to repurchase $1.5 billion worth of shares of its common stock as part of its previously announced $7.0 billion share repurchase authorization.

The Walt Disney Co. gained 1.1% to $114.54 after the media and entertainment company reported higher earnings for the first quarter of 2025 ending in December.

Revenue increased 5% to $24.7 billion from $23.5 billion, net income jumped to $2.64 billion from $2.15 billion, and earnings per diluted share rose 35% to $1.40 from $1.04 a year ago.

Looking ahead to the second quarter, the company estimated a modest decline in Disney+ subscribers compared to the first quarter.

For the full year 2025, Disney’s India business will contribute $73 million, compared to $254 million in the prior year, and the sports segment will add $9 million, compared to a loss of $636 million a year ago.

U.S. Trade Deficit Widened In December and 2024 as Businesses Front Load Shipments

The U.S. international trade deficit soared in December and expanded in 2024 amid growing trade tensions. 

The US trade deficit expanded to $98.4 billion in December 2024, following a revised $78.9 billion gap in November, the U.S. Bureau of Economic Analysis reported Wednesday.

The goods deficit increased by $18.9 billion to $123 billion, and the services surplus shrank by $0.6 billion to $24.5 billion.

Total imports advanced 3.5% to $364.9 billion, while exports declined 2.6% to $266.5 billion, mainly due to crude oil, pharmaceutical preparations, and computers.

For 2024, the deficit increased 17% from 2023 to $918.4 billion.

For 2024, exports rose 3.9% to $3.2 trillion, and imports expanded by 6.6% to $4.1 trillion, resulting in an increase of 17% in deficit to $918.4 billion.

The largest trade deficits were recorded with China, totaling $295.4 billion, with the EU advancing to $235.6 billion, with Mexico expanding to $171.8 billion, and Vietnam increasing to $123.5 billion.

U.S. Trade Deficit Widened In December and 2024 as Businesses Front Load Shipments

The U.S. international trade deficit soared in December and expanded in 2024 amid growing trade tensions. 

The US trade deficit expanded to $98.4 billion in December 2024, following a revised $78.9 billion gap in November, the U.S. Bureau of Economic Analysis reported Wednesday.

The goods deficit increased by $18.9 billion to $123 billion, and the services surplus shrank by $0.6 billion to $24.5 billion.

Total imports advanced 3.5% to $364.9 billion, while exports declined 2.6% to $266.5 billion, mainly due to crude oil, pharmaceutical preparations, and computers.

For 2024, the deficit increased 17% from 2023 to $918.4 billion.

For 2024, exports rose 3.9% to $3.2 trillion, and imports expanded by 6.6% to $4.1 trillion, resulting in an increase of 17% in deficit to $918.4 billion.

The largest trade deficits were recorded with China, totaling $295.4 billion, with the EU advancing to $235.6 billion, with Mexico expanding to $171.8 billion, and Vietnam increasing to $123.5 billion.

Investor Confidence Shaken After Trump Tariffs Roil Global Markets, AMD and Alphabet Results Weigh

Wall Street indexes meandered in early trading on Wednesday after mixed earnings from AMD and Alphabet overwhelmed market sentiment. 

The S&P 500 index edged up 0.1%, and the Nasdaq Composite inched higher 0.2% as quarterly earnings announcements gathered pace. 

Investors shifted focus from hollow tariff threats to corporate results and reacted to the latest updates from about 80 companies, including Alphabet, Uber Technologies, AMD, Electronic Arts, Chipotle Mexican Grill, and Walt Disney Co. 

The yield on 10-year U.S. Treasury notes hovered around 4.5% as investors revise inflation expectations higher amid the persistent threat of Trump tariffs. 

Most manufactured goods from China now face a total of 25% tariffs after the latest increase of 10%, and European goods are likely to face at least 10% tariffs as early as the first week in April.

Tariffs are indirect taxes paid by consumers and not by suppliers or manufacturers located outside the U.S., and a key contributor to inflationary forces. 

Moreover, the tariffs on imported goods also disproportionately impact lower-income families, who rely on cheaper goods made in Asia.

The U.S. Postal Service reversed its previously announced plans to process incoming parcels from China and Hong Kong, altering its stance only hours after announcing the measure. 

U.S. Indexes and Treasury Yields

The S&P 500 index decreased 0.2% to 6,027.73, the Nasdaq Composite edged down 0.5% to 19,547.72, and the Russell 2000 index increased 1.41% to 2,290.21.

The yield on 2-year Treasury notes edged lower to 4.20%, 10-year Treasury notes decreased to 4.46%, and 30-year Treasury bonds declined to 4.70%.

WTI crude oil decreased $1.09 to $71.60 a barrel, and natural gas prices edged lower by $0.04 to $3.21 a thermal unit.

Gold rose by $23.38 to $2,864.27 an ounce, and silver edged up by $0.17 to $32.24.

The dollar index, which weighs the US currency against a basket of foreign currencies, declined 0.47 to 107.52 and traded at a two-year high.

U.S. Stock Movers 

Uber Technologies declined 5.3% to $66.05 after the ride-sharing app and delivery platform operator's revenues were ahead of market expectations, but the company offered a conservative estimate of gross bookings in the first quarter. 

Gross bookings in the fourth quarter were $44.2 billion, and the company guided bookings in the first quarter to range between $42 billion and $43.5 billion. 

AMD dropped 9.8% to $107.80 after the advanced chipmaker reported weaker-than-expected revenue in its data center unit in the fourth quarter. 

Alphabet plunged 7% to $191.70 after the parent company of Google and YouTube reported weaker-than-expected revenue in its cloud computing division as it escalates investment in artificial intelligence.

Apple decreased 2% to $228.16 on speculation that Chinese regulators are likely to expand its investigation list targeting American companies, which could include the popular smartphone maker. 

Walt Disney Co. increased 1.3% to $114.81 after the media company and theme park operator's fiscal first quarter earnings surpassed market expectations. 

Disney+ subscribers slightly declined, and the company estimated another "modest decline" in the current quarter. 

Chipotle Mexican Grill dropped 5.5% to $56.17 after the fast food chain's same-store sales in fiscal 2025 are likely to slow to a low- to mid-single-digit increase.

Investor Confidence Shaken After Trump Tariffs Roil Global Markets, AMD and Alphabet Results Weigh

Wall Street indexes meandered in early trading on Wednesday after mixed earnings from AMD and Alphabet overwhelmed market sentiment. 

The S&P 500 index edged up 0.1%, and the Nasdaq Composite inched higher 0.2% as quarterly earnings announcements gathered pace. 

Investors shifted focus from hollow tariff threats to corporate results and reacted to the latest updates from about 80 companies, including Alphabet, Uber Technologies, AMD, Electronic Arts, Chipotle Mexican Grill, and Walt Disney Co. 

The yield on 10-year U.S. Treasury notes hovered around 4.5% as investors revise inflation expectations higher amid the persistent threat of Trump tariffs. 

Most manufactured goods from China now face a total of 25% tariffs after the latest increase of 10%, and European goods are likely to face at least 10% tariffs as early as the first week in April.

Tariffs are indirect taxes paid by consumers and not by suppliers or manufacturers located outside the U.S., and a key contributor to inflationary forces. 

Moreover, the tariffs on imported goods also disproportionately impact lower-income families, who rely on cheaper goods made in Asia.

The U.S. Postal Service reversed its previously announced plans to process incoming parcels from China and Hong Kong, altering its stance only hours after announcing the measure. 

U.S. Stock Movers 

Uber Technologies declined 5.3% to $66.05 after the ride-sharing app and delivery platform operator's revenues were ahead of market expectations, but the company offered a conservative estimate of gross bookings in the first quarter. 

Gross bookings in the fourth quarter were $44.2 billion, and the company guided bookings in the first quarter to range between $42 billion and $43.5 billion. 

AMD dropped 9.8% to $107.80 after the advanced chipmaker reported weaker-than-expected revenue in its data center unit in the fourth quarter. 

Alphabet plunged 7% to $191.70 after the parent company of Google and YouTube reported weaker-than-expected revenue in its cloud computing division as it escalates investment in artificial intelligence.

Apple decreased 2% to $228.16 on speculation that Chinese regulators are likely to expand its investigation list targeting American companies, which could include the popular smartphone maker. 

Walt Disney Co. increased 1.3% to $114.81 after the media company and theme park operator's fiscal first quarter earnings surpassed market expectations. 

Disney+ subscribers slightly declined, and the company estimated another "modest decline" in the current quarter. 

Chipotle Mexican Grill dropped 5.5% to $56.17 after the fast food chain's same-store sales in fiscal 2025 are likely to slow to a low- to mid-single-digit increase.

Europe Mover: Banco Santander, Diego, Infineon, Ferrari, Pandora, Spotify, Tom Tom, Vodafone

European markets remained under pressure amid economic and international trade uncertainties, and investors shifted focus to the latest batch of earnings. 

The DAX index decreased by 0.4% to 21,415.70; the CAC-40 index fell 0.38% to 7,876.58; and the FTSE 100 index declined by 0.06% to 8,565.20. 

The yield on 10-year German bonds inched lower to 2.36%, French bonds eased to 3.07%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.45%.

European Stock Movers

Advanced semiconductor equipment makers declined after AMD reported weaker-than-estimated sales in its data center unit. 

ASML decreased 1.1% to €704.40, Infineon Technologies AG gained 0.6% to €34.70, and NXP Semiconductors fell 0.8% to €193.50.

Future plc increased 2.6% to 960.0 pence after the UK-based publishing company, and the parent company of Marie Claire, reiterated its fiscal 2025 annual outlook. 

GSK plc jumped 5.6% to 1,460.04 pence after the UK-based pharmaceutical company reported strong 2024 results, and the company raised its long-term sales outlook. 

Credit Agricole gained 1.6% to €14.82 after the French bank reported better-than-expected earnings for the fourth quarter of 2024, driven by higher revenue.

Banco Santander soared 7.2% to €5.35 after the Spanish bank reported a record quarterly profit and announced a stock repurchase plan worth €10 billion.

The Spanish bank with a vast network of branches across Europe and the Americas is reportedly reviewing its UK retail operations, which could lead to the closure of its branches.

Pandora AS decreased 0.5% to 1,367.0 Danish krone after the fashion jewelry retailer estimated organic growth in 2025 is likely to be lower than in the previous year.

Recent Earnings 

Infineon Technologies AG surged 10.4% to €34.49 despite the German semiconductors manufacturer reporting a decline in first quarter sales by 8%, but earnings improved sequentially from the fourth quarter of 2024.

Revenue dropped to €3.42 billion from €3.70 billion, profit decreased to €246 million from €587 million, and earnings per diluted share fell to 18 cents from 44 cents a year ago.

For the second quarter of fiscal 2025, the company estimated revenue of around €3.6 billion.

Infineon raised its full-year 2025 guidance for a flat to slightly higher revenue, compared to its previous forecast for a slight revenue decline.

In the fourth quarter of fiscal 2024, the company swung to a net loss of €84 million, and a diluted loss per share of 7 cents.

Diageo Plc dropped 1.6% to 2,326 pence after the UK-based alcoholic beverage company posted lower-than-expected earnings for the fiscal half year 2025 ending in December.

With 45% of U.S. sales coming from Canada and Mexico, the company expects a short-term hit with potential downside to its lowered fiscal 2025 profitability, if the proposed U.S. tariffs are implemented.

Net sales declined 0.6% to $10.90 billion from $10.96 billion, operating profit fell 5% to $3.15 billion from $3.32 billion, and earnings per share fell 12% to 86.9 cents from 98.4 cents a year ago.

Profit for the period fell to $2.07 billion from $2.34 billion a year earlier.

Diageo plans to pay an interim dividend of 40.50 cents per share on April 24 to holders of ordinary shares and U.S. ADRs on register as of February 28. 

Vodafone Group Plc slumped 7.1% to €65.08 pence after the British telecom company posted steady revenue growth for the third quarter of fiscal 2025, but sales in Germany declined.

Revenue increased to €9.81 billion from €9.35 billion, and operating profit declined to €1.02 billion from €1.25 billion a year ago.

Group service revenue growth accelerated to 5.2%, supported by a step-up in the U.K. and strong performance in Turkey and Africa, while in Germany is impacted by the TV law change.

During the quarter, Vodafone completed the sale of its Italian business for €8 billion, and agreed to merge with mobile data provider Three in the U.K.

Ferrari NV surged 8% to €448.70 after the Italian racing and sports car manufacturer reported higher revenue in fiscal year 2024, despite declining shipments in mainland China, Hong Kong and Taiwan.

Revenue increased to €6.67 billion from €5.97 billion, net profit rose to €1.53 billion from €1.26 billion, and earnings per diluted share rose to €8.46 from €6.90 a year ago.

For the three months ending in December, revenue jumped to €1.74 billion from €1.52 billion, net profit surged to €386 million from €294 million, and earnings per diluted share rose to €2.14 from €1.62 a year earlier.

For fiscal year 2025, Ferrari estimated a 5% revenue increase to €7 billion, operating profit up 7% to €2.03 billion from €1.89 billion in 2024, and earnings per share above €8.60.

The company proposed a share repurchase program worth €150 million, allocated no later than February 20.

TomTom N.V. plunged 14.2% to €4.30 after the Dutch developer and creator of location technology and consumer electronics estimated lower 2025 sales on automotive market slowdown.

Revenue in the fourth quarter decreased by 1% to €142.2 million from €143.4 million, net loss shrank to €5.7 million from €11.6 million, and diluted loss per share declined to 5 cents from 9 cents a year ago.

For fiscal year 2025, the company estimated revenue between €505 million to €565 million, compared to €574 million last year.

Spotify gained 1.3% to €595.90 after the Swedish music streaming company reported higher earnings for its fourth quarter ending in December.

Revenue increased to €4.24 billion from €3.67 billion, net income jumped to €367 million from a loss of €70 million, and earnings per diluted share rose to €1.76 from a loss of 36 cents a year ago.

For the first quarter of 2025, the company estimated monthly active users of 678 million and premium subscribers of 265 million.

The company revenue in the first quarter is estimated to increase to €4.2 billion from €3.6 billion a year earlier.

NXP Semiconductors N.V. dropped 0.8% to €193.50 after the Dutch company posted a 9% decline in fourth-quarter sales.

Revenue declined to $3.11 billion from $3.42 billion, net income slumped to $505 million from $703 million, and earnings per diluted share fell to $1.93 from $2.68 a year ago.

NXP paid $258 million in cash dividends during the quarter, in addition, the company repurchased $455 million of its common shares.

Looking ahead to the first quarter of 2025, NXP estimated revenue between $2.72 billion and $2.69 billion, and earnings per share between $2.29 and $2.79.

Europe Mover: Banco Santander, Diego, Infineon, Ferrari, Pandora, Spotify, Tom Tom, Vodafone

European markets remained under pressure amid economic and international trade uncertainties, and investors shifted focus to the latest batch of earnings. 

The DAX index decreased by 0.4% to 21,415.70; the CAC-40 index fell 0.38% to 7,876.58; and the FTSE 100 index declined by 0.06% to 8,565.20. 

The yield on 10-year German bonds inched lower to 2.36%, French bonds eased to 3.07%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.45%.

European Stock Movers

Advanced semiconductor equipment makers declined after AMD reported weaker-than-estimated sales in its data center unit. 

ASML decreased 1.1% to €704.40, Infineon Technologies AG gained 0.6% to €34.70, and NXP Semiconductors fell 0.8% to €193.50.

Future plc increased 2.6% to 960.0 pence after the UK-based publishing company, and the parent company of Marie Claire, reiterated its fiscal 2025 annual outlook. 

GSK plc jumped 5.6% to 1,460.04 pence after the UK-based pharmaceutical company reported strong 2024 results, and the company raised its long-term sales outlook. 

Credit Agricole gained 1.6% to €14.82 after the French bank reported better-than-expected earnings for the fourth quarter of 2024, driven by higher revenue.

Banco Santander soared 7.2% to €5.35 after the Spanish bank reported a record quarterly profit and announced a stock repurchase plan worth €10 billion.

The Spanish bank with a vast network of branches across Europe and the Americas is reportedly reviewing its UK retail operations, which could lead to the closure of its branches.

Pandora AS decreased 0.5% to 1,367.0 Danish krone after the fashion jewelry retailer estimated organic growth in 2025 is likely to be lower than in the previous year.

Recent Earnings 

Infineon Technologies AG surged 10.4% to €34.49 despite the German semiconductors manufacturer reporting a decline in first quarter sales by 8%, but earnings improved sequentially from the fourth quarter of 2024.

Revenue dropped to €3.42 billion from €3.70 billion, profit decreased to €246 million from €587 million, and earnings per diluted share fell to 18 cents from 44 cents a year ago.

For the second quarter of fiscal 2025, the company estimated revenue of around €3.6 billion.

Infineon raised its full-year 2025 guidance for a flat to slightly higher revenue, compared to its previous forecast for a slight revenue decline.

In the fourth quarter of fiscal 2024, the company swung to a net loss of €84 million, and a diluted loss per share of 7 cents.

Diageo Plc dropped 1.6% to 2,326 pence after the UK-based alcoholic beverage company posted lower-than-expected earnings for the fiscal half year 2025 ending in December.

With 45% of U.S. sales coming from Canada and Mexico, the company expects a short-term hit with potential downside to its lowered fiscal 2025 profitability, if the proposed U.S. tariffs are implemented.

Net sales declined 0.6% to $10.90 billion from $10.96 billion, operating profit fell 5% to $3.15 billion from $3.32 billion, and earnings per share fell 12% to 86.9 cents from 98.4 cents a year ago.

Profit for the period fell to $2.07 billion from $2.34 billion a year earlier.

Diageo plans to pay an interim dividend of 40.50 cents per share on April 24 to holders of ordinary shares and U.S. ADRs on register as of February 28. 

Vodafone Group Plc slumped 7.1% to €65.08 pence after the British telecom company posted steady revenue growth for the third quarter of fiscal 2025, but sales in Germany declined.

Revenue increased to €9.81 billion from €9.35 billion, and operating profit declined to €1.02 billion from €1.25 billion a year ago.

Group service revenue growth accelerated to 5.2%, supported by a step-up in the U.K. and strong performance in Turkey and Africa, while in Germany is impacted by the TV law change.

During the quarter, Vodafone completed the sale of its Italian business for €8 billion, and agreed to merge with mobile data provider Three in the U.K.

Ferrari NV surged 8% to €448.70 after the Italian racing and sports car manufacturer reported higher revenue in fiscal year 2024, despite declining shipments in mainland China, Hong Kong and Taiwan.

Revenue increased to €6.67 billion from €5.97 billion, net profit rose to €1.53 billion from €1.26 billion, and earnings per diluted share rose to €8.46 from €6.90 a year ago.

For the three months ending in December, revenue jumped to €1.74 billion from €1.52 billion, net profit surged to €386 million from €294 million, and earnings per diluted share rose to €2.14 from €1.62 a year earlier.

For fiscal year 2025, Ferrari estimated a 5% revenue increase to €7 billion, operating profit up 7% to €2.03 billion from €1.89 billion in 2024, and earnings per share above €8.60.

The company proposed a share repurchase program worth €150 million, allocated no later than February 20.

TomTom N.V. plunged 14.2% to €4.30 after the Dutch developer and creator of location technology and consumer electronics estimated lower 2025 sales on automotive market slowdown.

Revenue in the fourth quarter decreased by 1% to €142.2 million from €143.4 million, net loss shrank to €5.7 million from €11.6 million, and diluted loss per share declined to 5 cents from 9 cents a year ago.

For fiscal year 2025, the company estimated revenue between €505 million to €565 million, compared to €574 million last year.

Spotify gained 1.3% to €595.90 after the Swedish music streaming company reported higher earnings for its fourth quarter ending in December.

Revenue increased to €4.24 billion from €3.67 billion, net income jumped to €367 million from a loss of €70 million, and earnings per diluted share rose to €1.76 from a loss of 36 cents a year ago.

For the first quarter of 2025, the company estimated monthly active users of 678 million and premium subscribers of 265 million.

The company revenue in the first quarter is estimated to increase to €4.2 billion from €3.6 billion a year earlier.

NXP Semiconductors N.V. dropped 0.8% to €193.50 after the Dutch company posted a 9% decline in fourth-quarter sales.

Revenue declined to $3.11 billion from $3.42 billion, net income slumped to $505 million from $703 million, and earnings per diluted share fell to $1.93 from $2.68 a year ago.

NXP paid $258 million in cash dividends during the quarter, in addition, the company repurchased $455 million of its common shares.

Looking ahead to the first quarter of 2025, NXP estimated revenue between $2.72 billion and $2.69 billion, and earnings per share between $2.29 and $2.79.

European Markets React to Domestic Earnings, Eurozone PPI Accelerates In December

European markets struggled to advance after U.S. trade relations uncertainty added to market anxieties rooted in the ongoing weak economic backdrop. 

Benchmark indexes in Paris, Frankfurt, Milan, and London traded sideways as the European Union and the UK braced for contentious trade discussions with the U.S.

Investor confidence in the Trump administration weakened after the U.S. walked back from threats of aggressive tariffs on goods shipped from Mexico and Canada but increased tariffs by an additional 10% on all imports from China.

The U.S. flip-flop on tariffs stoked speculation in the European Union that the newly appointed presidential administration is more interested in scoring domestic political points rather than confronting structural U.S. economic issues.

Over the last sixty years, the U.S. international trade balance has resulted in an annual deficit, barring a few years, indicating persistent reliance on foreign-made goods from Asia and Europe.

Eurozone PPI Advanced Third Consecutive Month in December 

Closer to home, producer price inflation in the eurozone rose in December, an increase in six of the last seven months. 

Producer price inflation in the Euro Area increased monthly by 0.4% and was unchanged on an annual basis, according to the latest data released by Eurostat on Wednesday.

Prices in the currency union rose for the third consecutive month in December, and among the largest economies of the bloc, prices advanced 1% in France, 0.9% in Spain, and 0.8% in Italy, but fell 0.1% in Germany. 

Europe Indexes and Yields

The DAX index decreased by 0.4% to 21,415.70; the CAC-40 index fell 0.38% to 7,876.58; and the FTSE 100 index declined by 0.06% to 8,565.20. 

The yield on 10-year German bonds inched lower to 2.36%, French bonds eased to 3.07%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.45%.

The euro increased to $1.04; the British pound was higher at $1.25; and the U.S. dollar was lower and traded at 90.21 Swiss cents.

Brent crude decreased $0.69 to $75.51 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

European Stock Movers

Advanced semiconductor equipment makers declined after AMD reported weaker-than-estimated sales in its data center unit. 

ASML decreased 1.1% to €704.40, Infineon Technologies AG gained 0.6% to €34.70, and NXP Semiconductors fell 0.8% to €193.50.

Future plc increased 2.6% to 960.0 pence after the UK-based publishing company, and the parent company of Marie Claire, reiterated its fiscal 2025 annual outlook. 

GSK plc jumped 5.6% to 1,460.04 pence after the UK-based pharmaceutical company reported strong 2024 results, and the company raised its long-term sales outlook. 

Credit Agricole gained 1.6% to €14.82 after the French bank reported better-than-expected earnings for the fourth quarter of 2024, driven by higher revenue.

Banco Santander soared 7.2% to €5.35 after the Spanish bank reported a record quarterly profit and announced a stock repurchase plan worth €10 billion.

The Spanish bank with a vast network of branches across Europe and the Americas is reportedly reviewing its UK retail operations, which could lead to the closure of its branches.

Pandora AS decreased 0.5% to 1,367.0 Danish krone after the fashion jewelry retailer estimated organic growth in 2025 is likely to be lower than in the previous year.

European Markets React to Domestic Earnings, Eurozone PPI Accelerates In December

European markets struggled to advance after U.S. trade relations uncertainty added to market anxieties rooted in the ongoing weak economic backdrop. 

Benchmark indexes in Paris, Frankfurt, Milan, and London traded sideways as the European Union and the UK braced for contentious trade discussions with the U.S.

Investor confidence in the Trump administration weakened after the U.S. walked back from threats of aggressive tariffs on goods shipped from Mexico and Canada but increased tariffs by an additional 10% on all imports from China.

The U.S. flip-flop on tariffs stoked speculation in the European Union that the newly appointed presidential administration is more interested in scoring domestic political points rather than confronting structural U.S. economic issues.

Over the last sixty years, the U.S. international trade balance has resulted in an annual deficit, barring a few years, indicating persistent reliance on foreign-made goods from Asia and Europe.

Eurozone PPI Advanced Third Consecutive Month in December 

Closer to home, producer price inflation in the eurozone rose in December, an increase in six of the last seven months. 

Producer price inflation in the Euro Area increased monthly by 0.4% and was unchanged on an annual basis, according to the latest data released by Eurostat on Wednesday.

Prices in the currency union rose for the third consecutive month in December, and among the largest economies of the bloc, prices advanced 1% in France, 0.9% in Spain, and 0.8% in Italy, but fell 0.1% in Germany. 

Europe Indexes and Yields

The DAX index decreased by 0.4% to 21,415.70; the CAC-40 index fell 0.38% to 7,876.58; and the FTSE 100 index declined by 0.06% to 8,565.20. 

The yield on 10-year German bonds inched lower to 2.36%, French bonds eased to 3.07%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.45%.

The euro increased to $1.04; the British pound was higher at $1.25; and the U.S. dollar was lower and traded at 90.21 Swiss cents.

Brent crude decreased $0.69 to $75.51 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

European Stock Movers

Advanced semiconductor equipment makers declined after AMD reported weaker-than-estimated sales in its data center unit. 

ASML decreased 1.1% to €704.40, Infineon Technologies AG gained 0.6% to €34.70, and NXP Semiconductors fell 0.8% to €193.50.

Future plc increased 2.6% to 960.0 pence after the UK-based publishing company, and the parent company of Marie Claire, reiterated its fiscal 2025 annual outlook. 

GSK plc jumped 5.6% to 1,460.04 pence after the UK-based pharmaceutical company reported strong 2024 results, and the company raised its long-term sales outlook. 

Credit Agricole gained 1.6% to €14.82 after the French bank reported better-than-expected earnings for the fourth quarter of 2024, driven by higher revenue.

Banco Santander soared 7.2% to €5.35 after the Spanish bank reported a record quarterly profit and announced a stock repurchase plan worth €10 billion.

The Spanish bank with a vast network of branches across Europe and the Americas is reportedly reviewing its UK retail operations, which could lead to the closure of its branches.

Pandora AS decreased 0.5% to 1,367.0 Danish krone after the fashion jewelry retailer estimated organic growth in 2025 is likely to be lower than in the previous year.

Japan Indexes Extend 2-Day Rally, Panasonic and Isetan Mitsukoshi In Focus

Stock market indexes in Tokyo advanced for the second consecutive day amid a rally in tech stocks and easing of tensions between the U.S. and its two key trading partners. 

The Nikkei 225 stock average and the TOPIX dropped slightly after semiconductor equipment technology recovered following a rally on Wall Street. 

Market sentiment recovered after the U.S. presidential administration caved in and delayed the implementation of tariffs on goods shipped from Mexico and Canada. 

However, the U.S. imposed an additional 10% tariff on goods imported from China, and the U.S. Postal Service temporarily blocked parcels from China and Hong Kong. 

Japan's Real Wages Advanced for the Second Consecutive Month in December

Japan's real wages, adjusted for inflation, advanced for the second consecutive month in December, supported by the rise in winter bonuses. 

Nominal wages increased for the second consecutive month in December, surpassing the market expectations and advancing the most in three decades. 

The annual increase in nominal wages in December accelerated to 4.8% in December from 3.9% in November, and real wages adjusted for inflation advanced 0.6%, marking the second month of increase. 

December month's wage increase was largely driven by a 6.8% rise in winter bonuses, the Ministry of Health, Labour, and Welfare reported Wednesday. 

Despite the surge in wages, the ministry noted wages and base salaries are not "keeping pace with prices."

Real wages declined 0.2% in 2024, after nominal wages rose 2.9% while consumer price inflation in the year was 3.2%. 

Real wages declined for the third year in a row, after falling 2.5% in 2023, 1.0% in 2022, butt rising 0.6% in 2021. 

Japan's Services Sector Growth Accelerated In January

Japan's service sector activities accelerated in January, according to the data released by S&P Global. 

The au Jibun Bank Japan Services PMI increased to 53.0 in January from 50.9 in December. 

A reading above 50 indicates an increase in growth, while below 50 shows contraction.

Japan Indexes and Movers 

The Nikkei 225 Stock Average edged up a fraction to close at 38,831.48, and the TOPIX advanced 0.3% to 2,745.41. 

Panasonic Holdings Corp. soared 13.6% to ¥1,738.50 after the company raised earnings outlook for its battery division and announced its plans to reform management. 

Revenue in the nine months ending in December increased 1.6% to 6.4 trillion yen, but net profit declined 25.4% to 308.7 billion yen, and diluted earnings per share decreased to 123.51 yen from 170.96 yen.

The company said its reforms will begin in the next financial year starting in April and aims to improve profitability by 150 billion yen and an additional 150 billion yen over the next two fiscal years.

Panasonic said in a separate release that its battery unit's operating profit in the fiscal third quarter ending in December rose 39%, and the company raised its full-year outlook by 14% to 124 billion yen, or $799 million.

The company estimated fiscal year 2025 revenue to increase 98% from a year ago to 8.3 trillion yen and operating profit to jump 19% to 380 billion yen.

Isetan Mitsukoshi Holdings dropped 4.8% to ¥2,542.0, despite the department store retailer reporting a higher-than-expected 21% increase in operating profit in the fiscal third quarter. 

Revenue in the nine-month period ending in December increased 3.9% to 417.5 billion yen, ordinary profit surged 47% to 66 billion yen, and diluted earnings per share advanced to 124.72 yen from 81.28 yen a year ago.

Japan Indexes Extend 2-Day Rally, Panasonic and Isetan Mitsukoshi In Focus

Stock market indexes in Tokyo advanced for the second consecutive day amid a rally in tech stocks and easing of tensions between the U.S. and its two key trading partners. 

The Nikkei 225 stock average and the TOPIX dropped slightly after semiconductor equipment technology recovered following a rally on Wall Street. 

Market sentiment recovered after the U.S. presidential administration caved in and delayed the implementation of tariffs on goods shipped from Mexico and Canada. 

However, the U.S. imposed an additional 10% tariff on goods imported from China, and the U.S. Postal Service temporarily blocked parcels from China and Hong Kong. 

Japan's Real Wages Advanced for the Second Consecutive Month in December

Japan's real wages, adjusted for inflation, advanced for the second consecutive month in December, supported by the rise in winter bonuses. 

Nominal wages increased for the second consecutive month in December, surpassing the market expectations and advancing the most in three decades. 

The annual increase in nominal wages in December accelerated to 4.8% in December from 3.9% in November, and real wages adjusted for inflation advanced 0.6%, marking the second month of increase. 

December month's wage increase was largely driven by a 6.8% rise in winter bonuses, the Ministry of Health, Labour, and Welfare reported Wednesday. 

Despite the surge in wages, the ministry noted wages and base salaries are not "keeping pace with prices."

Japan's Services Sector Growth Accelerated In January

Japan's service sector activities accelerated in January, according to the data released by S&P Global. 

The au Jibun Bank Japan Services PMI increased to 53.0 in January from 50.9 in December. 

A reading above 50 indicates an increase in growth, while below 50 shows contraction.

Japan Indexes and Movers 

The Nikkei 225 Stock Average edged up a fraction to close at 38,831.48, and the TOPIX advanced 0.3% to 2,745.41. 

Panasonic Holdings Corp. soared 13.6% to ¥1,738.50 after the company raised earnings outlook for its battery division and announced its plans to reform management. 

Revenue in the nine months ending in December increased 1.6% to 6.4 trillion yen, but net profit declined 25.4% to 308.7 billion yen, and diluted earnings per share decreased to 123.51 yen from 170.96 yen.

The company said its reforms will begin in the next financial year starting in April and aims to improve profitability by 150 billion yen and an additional 150 billion yen over the next two fiscal years.

Panasonic said in a separate release that its battery unit's operating profit in the fiscal third quarter ending in December rose 39%, and the company raised its full-year outlook by 14% to 124 billion yen, or $799 million.

The company estimated fiscal year 2025 revenue to increase 98% from a year ago to 8.3 trillion yen and operating profit to jump 19% to 380 billion yen.

Isetan Mitsukoshi Holdings dropped 4.8% to ¥2,542.0, despite the department store retailer reporting a higher-than-expected 21% increase in operating profit in the fiscal third quarter. 

Revenue in the nine-month period ending in December increased 3.9% to 417.5 billion yen, ordinary profit surged 47% to 66 billion yen, and diluted earnings per share advanced to 124.72 yen from 81.28 yen a year ago.

China and Hong Kong Indexes Turned Lower Following U.S.-China Tariff War

Stock market indexes in China and Hong Kong traded down amid ongoing international trade uncertainties and domestic economic growth worries. 

The Hang Seng index decreased 1%, and the mainland-focused CSI 300 index declined 0.6%. 

Market indexes declined in Shanghai and Shenzhen after investors returned from a weeklong holiday and reviewed the new trade restrictions announced by the U.S. 

China imposed retaliatory tariffs of 15% on the U.S. certain types of coal and natural gas, and 10% on oil, farm equipment, and select automobile imports effective February 10.

China's countermeasures appear to be not as strong as expected, suggesting that policymakers in Beijing are less worried about the new tariffs and trade barriers. 

The 10% tariffs imposed by the U.S. are likely to have a short-term impact on shipments of lithium batteries, home appliances, and electric vehicles to the U.S. 

E-commerce companies traded down after the U.S. Postal Service temporarily blocked parcels from China and Hong Kong after the announcements of new tariffs. 

Despite the tit-for-tat tariffs, the U.S. presidential administration is struggling to stem the rising flow of manufactured goods from China, Asia, and Europe. 

The U.S. international trade balance has generated annual deficits for seven decades, and tariffs are not likely to change the long-term trend. 

U.S. politicians and economists have long promoted free trade, and adherence to that trade policy has saddled the world's largest economy with an annual trade deficit, which has now reached $1.1 trillion. 

China Stock Movers 

The Hang Seng index declined 1.1% to 20,556.82, and the mainland-focused CSI 300 index dropped 0.6% to 3,795.73.

JD.com declined 3.8% to HK $155.90, Alibaba Group Holding decreased 0.3% to HK $97.40, and Trip.com Group fell 5.6% to HK $537.50.

Shipping carriers advanced, despite the announcements of tariffs by the U.S. and China. 

Orient Overseas International rose 2.7% to HK $105.50, COSCO Shipping Holdings gained 2.5% to HK $11.68, and Pacific Basin Shipping gained 1.9% to HK $1.66.

Electric vehicle makers declined amid worries that large investments in factories in Mexico designed to deliver products in the U.S. may not deliver intended results. 

BYD decreased 1.7% to HK $281.40, Li Auto fell 4.2% to HK $90.25, and Xpeng Inc. dropped 1.7% to HK $64.55.

China and Hong Kong Indexes Turned Lower Following U.S.-China Tariff War

Stock market indexes in China and Hong Kong traded down amid ongoing international trade uncertainties and domestic economic growth worries. 

The Hang Seng index decreased 1%, and the mainland-focused CSI 300 index declined 0.6%. 

Market indexes declined in Shanghai and Shenzhen after investors returned from a weeklong holiday and reviewed the new trade restrictions announced by the U.S. 

China imposed retaliatory tariffs on the U.S. coal, oil, natural gas, farm equipment, and select automobile imports effective February 10.

China's countermeasures appear to be not as strong as expected, suggesting that policymakers in Beijing are less worried about the new tariffs and trade barriers. 

The 10% tariffs imposed by the U.S. are likely to have a short-term impact on shipments of lithium batteries, home appliances, and electric vehicles to the U.S. 

E-commerce companies traded down after the U.S. Postal Service temporarily blocked parcels from China and Hong Kong after the announcements of new tariffs. 

Despite the tit-for-tat tariffs, the U.S. presidential administration is struggling to stem the rising flow of manufactured goods from China, Asia, and Europe. 

The U.S. international trade balance has generated annual deficits for seven decades, and tariffs are not likely to change the long-term trend. 

U.S. politicians and economists have long promoted free trade, and adherence to that trade policy has saddled the world's largest economy with an annual trade deficit, which has now reached $1.1 trillion. 

China Stock Movers 

The Hang Seng index declined 1.1% to 20,556.82, and the mainland-focused CSI 300 index dropped 0.6% to 3,795.73.

JD.com declined 3.8% to HK $155.90, Alibaba Group Holding decreased 0.3% to HK $97.40, and Trip.com Group fell 5.6% to HK $537.50.

Shipping carriers advanced, despite the announcements of tariffs by the U.S. and China. 

Orient Overseas International rose 2.7% to HK $105.50, COSCO Shipping Holdings gained 2.5% to HK $11.68, and Pacific Basin Shipping gained 1.9% to HK $1.66.

Electric vehicle makers declined amid worries that large investments in factories in Mexico designed to deliver products in the U.S. may not deliver intended results. 

BYD decreased 1.7% to HK $281.40, Li Auto fell 4.2% to HK $90.25, and Xpeng Inc. dropped 1.7% to HK $64.55.