- Brian Turner
- 24 Jul, 2024
- Washington, D.C.
Sales of new single-family houses in June declined 0.6% from the previous month to a seasonally adjusted annual rate of 617,000, according to the U.S. Census Bureau and Department of Housing and Urban Development.
The high home prices, elevated mortgage rates, and higher base for property tax continue to weigh on buyers' affordability.
The annual rate declined to the lowest in the last seven months, and May house sales data were revised higher to an annual pace of 621,000.
The median sales price of new houses sold in June was $417,300, the highest since March, while the average sales price was $487,200, the lowest since January 2023.
Sales in the Northeast declined 7.7% to 12,000 and in the Midwest fell 6.9% to 81,000; however, sales rose 1.4% to 149,000 and edged up 0.3% to 375,000.
Homes are taking longer to sell, and the available home supply at the end of June increased to 9.3 months at the current sales rate.
- Alexander Garcia
- 24 Jul, 2024
- Miami
Stock market indexes on Wall Street extended morning losses after mega-cap companies reported lower than expected earnings.
The S&P 500 index and the Nasdaq Composite declined, more than 1.8% and nearly 3% respectively, after traders reviewed the latest quarterly results from Google-parent Alphabet and Tesla.
Alphabet reported better-than-expected quarterly revenue and earnings, but YouTube revenue disappointed some analysts.
Tesla plunged more than 10% after the electric vehicle maker reported a 2% increase in overall revenue, but automotive revenue fell 7% in the second quarter.
Tesla is losing market share to a growing list of competitors, and Tesla's discounts and financial incentives in the U.S. and China also hit the company's profitability.
Meta, Microsoft, Nvidia, and Amazon dropped more than 1% after Tesla and Alphabet reported weaker-than-expected quarterly results.
New Home Sales In June Confirm Declining Trend
Sales of new single-family houses in June declined 0.6% from the previous month to a seasonally adjusted annual rate of 617,000, according to the U.S. Census Bureau and Department of Housing and Urban Development.
The high home prices, elevated mortgage rates, and higher base for property tax continue to weigh on buyers' affordability.
The annual rate declined to the lowest in the last seven months, and May house sales data were revised higher to an annual pace of 621,000.
The median sales price of new houses sold in June was $417,300, the highest since March, while the average sales price was $487,200, the lowest since January 2023.
Sales in the Northeast declined 7.7% to 12,000 and in the Midwest fell 6.9% to 81,000; however, sales rose 1.4% to 149,000 and edged up 0.3% to 375,000.
Homes are taking longer to sell, and the available home supply at the end of June increased to 9.3 months at the current sales rate.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 1.7% to 5,462.17, the Nasdaq Composite fell 2.8% to 17,497.73, and the Russell 2000 index fell 0.5% to 2,232.55.
The yield on 2-year Treasury notes edged lower to 4.41%, 10-year Treasury notes increased to 4.24%, and 30-year Treasury bonds edged higher to 4.48%.
WTI crude oil increased $0.06 to $78.02 a barrel, and natural gas prices edged down 5 cents to $2.14 a thermal unit.
Gold increased by $6.62 to $2,414.88 an ounce, and silver decreased 7 cents to $29.12.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.17.
U.S. Stock Movers
Tesla plunged 12.2% to $216.18, and the company reported a drop in its automotive unit sales declined for the second quarter in a row.
Moreover, the company's discounts and financial incentives lowered its profitability.
Revenue in the second quarter increased 2% to $25.5 billion from $24.9 billion, net income attributable to shareholders plunged 45% to $1.5 billion from $2.7 billion, and diluted earnings per share plunged to 52 cents from 91 cents a year ago.
Alphabet dropped 3.9% to $176.49 after the parent company of Google reported better-than-expected quarterly results, but YouTube's revenue disappointed investors.
Revenue in the second quarter increased 14% to $84.7 billion from $74.6 billion, net income rose to $24.6 billion from $18.4 billion, and diluted earnings per share increased to $1.89 from $1.44 a year ago.
YouTube revenue increased to $8.6 billion from $7.6 billion, Google cloud revenue rose to $10.3 billion from $8.0 billion, and Google search revenue jumped to $48.5 billion from $42.6 billion a year ago, respectively.
European Indexes Declined, Private Sector Growth Stalled
European market indexes declined after business activities stagnated in the eurozone, and earnings season picked up pace.
Benchmark indexes in Paris, London, and Frankfurt struggled to advance and lost as much as 1% amid worries of economic growth.
The HCOB Eurozone Composite PMI eased to 50.1 in July from 50.9 in June, according to a preliminary estimate released by S&P Global.
The index dropped to a five-month low, and the latest reading signaled near stagnation in the currency union as the fragile economic recovery continues to lose steam.
Manufacturing sector activities contracted to 45.6 from 45.8, and the service sector slowed to 51.9 from 52.8.
The economic backdrop was weaker in two of the largest economies in the region; business activities declined in Germany for the first time in four months, and in France, growth eased for the third consecutive month.
Europe Indexes and Yields
The DAX index decreased by 0.9% to 18,387.46; the CAC-40 index declined by 1.1% to 7,513.73; and the FTSE 100 index fell by 0.2% to 8,153.69.
The yield on 10-year German bonds edged lower to 2.43%, French bonds inched higher to 3.12%, the UK gilts inched higher to 4.13%, and Italian bonds increased to 3.77%.
The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar weakened to 88.53 Swiss cents.
Brent crude increased $1.04 to $82.05 a barrel, and the Dutch TTF natural gas fell by €1.38 to €32.73 per MWh.
Europe Stock Movers
Informa PLC jumped 3.9% to 880.40 pence after the company agreed to acquire Ascential plc for £1.2 billion or $1.5 billion.
Marston's PLC rose 2.9% to 39.25 pence, and the pub operator reported positive momentum for the 16-week period.
LVMH dropped 4.4% to €663.20 after the luxury goods maker reported weaker-than-expected second quarter results, raising the prospect of a wider slowdown in the industry.
Revenue in the first half declined 1% to €41.7 billion from €44.3 billion, and net profit declined 14% to €7.3 billion from €8.5 billion.
Hermes declined 1.8% to €2,045.0, Kering dropped 4.4% to €301.45, and Richemont fell 1.1% to CHF 134.0.
Remy Cointreau decreased 0.4% to €70.55 after the spirit maker reported a wider-than-expected decline in first-quarter sales of 15.6%.
Deutsche Bank dropped 6.1% to €14.72, and the German bank reported its first quarterly loss in four years.
BNP Paribas fell 1% to €64.08, despite the French financial service company reporting second-quarter earnings that surpassed market expectations.
Nikkei and Topix Extended Weekly Losses After Factory Activity Unexpectedly Shrank
Benchmark indexes in Tokyo dropped more than 1% after business activity indexes declined in July.
Market sentiment was weak after the Au Jibun Bank Japan Manufacturing Purchasing Managers' Index eased to 49.2 in July from 50.0 in June, indicating the first decline in factory activities since April.
The manufacturing sector growth has been volatile this year, and growth eased for the fifth time, data from S&P Global showed.
On the other hand, service sector PMI rebounded to 53.9 in July from 49.4 in June, increasing to a 3-month high.
Any reading above 50 shows growth, and below 50 shows a decline in activities.
The yen rebounded to 154.56 against the U.S. dollar in the hopes that the Bank of Japan may signal rate increases as early as next week at the policy meeting on July 31.
Japan Stock Movers
The Nikkei 225 stock average decreased 1.1% to 39,154.85, and the Topix index fell 1.4% to 2,793.12.
Tech stocks advanced ahead of the start of the earnings season later in the week.
Advantest, Tokyo Electron, and Lasertec declined around 1%, and Screen Holdings gained 1.9%.
Asics Corp. declined 2% to ¥2,468.0, and the sportswear company priced its secondary offering of 75 million shares at 2,442.50 per share, raising about 180.5 billion yen.
Honda Motor declined 2.6% to ¥1,630.0 after the vehicle maker recalled prologue SUVs for defective control links.
A week ago, Honda Motor priced its secondary stock offering at 1,664 yen per share and raised 497 billion yen, or $3.2 billion.
China Indexes Erase 2024 Gains, Chow Tai Fook Sales Drop 20%
Investors focused on corporate results as the earnings season kicked off, and market sentiment was cautious as property market malaise showed no signs of easing.
Stocks in Hong Kong and Shanghai declined on the worry that the recent flurry of salary cuts announced in the financial sector are going to create another headwind for property prices in tier-1 cities.
Property prices have been still rising in the tier-1 cities, unlike smaller cities where prices have declined for the third year in a row.
However, prices have started to soften in Shanghai, Beijing, and Shenzhen after the latest cuts in staff and salaries in the financial services industry.
Investors were cautious after the jewelry retailer Chow Tai Fook said sales in the latest quarter declined 20% from a year ago.
Li Auto and other electric vehicle makers declined after Tesla reported weaker-than-expected earnings in the second quarter.
The two widely followed indexes, the Hang Seng index and the CSI index, have nearly erased this year's gains amid a weak economic growth outlook, a protracted property market slump, and weakening consumer confidence.
China Stock Movers
The Hang Seng index declined 0.8% to 17,338.51 and the CSI 300 index dropped 0.5% to 3,423.40.
Chow Tai Fook Jewelry Group Ltd. dropped 5.5% to HK$7.49 after the retailer reported weak quarterly results.
Same store sales in Mainland China plunged 26.4% and in Hong Kong declined 30.8% from a year ago, respectively.
Same store average selling price of gold jewelry was resilient, and in Mainland China it rose to HK $6,200 from HK $5,400, and in Hong Kong and Macau it increased to HK $8,900 from HK $8,400.
Electric vehicle makers declined after Tesla reported weaker-than-expected quarterly earnings.
Li Auto declined 4.4% to HK $74.25, BYD dropped 2.7% to HK $232.0, and Xpeng decreased 5.5% to $32.10.
Tech stocks also traded volatile amid market anxieties ahead of the start of the earnings season.
Tencent Holdings declined 0.7% to HK $363.40, Alibaba Group increased 0.7% to HK $74.45, Baidu fell 0.5% to HK $87.85, and Meituan dropped 4.7% to HK 105.10.
- Scott Peters
- 24 Jul, 2024
- New York City
Tesla plunged 12.2% to $216.18, and the company reported automotive unit sales declined for the second quarter in a row.
Moreover, the company's discounts and financial incentives lowered its profitability.
Revenue in the second quarter increased 2% to $25.5 billion from $24.9 billion, net income attributable to shareholders plunged 45% to $1.5 billion from $2.7 billion, and diluted earnings per share plunged to 52 cents from 91 cents a year ago.
Alphabet dropped 3.9% to $176.49 after the parent company of Google reported better-than-expected quarterly results, but YouTube's revenue disappointed investors.
Revenue in the second quarter increased 14% to $84.7 billion from $74.6 billion, net income rose to $24.6 billion from $18.4 billion, and diluted earnings per share increased to $1.89 from $1.44 a year ago.
YouTube revenue increased to $8.6 billion from $7.6 billion, Google cloud revenue rose to $10.3 billion from $8.0 billion, and Google search revenue jumped to $48.5 billion from $42.6 billion a year ago, respectively.
Visa dropped 4.3% to $253.55 after the electronic payment network operator reported lower-than-expected revenue in the June quarter.
Revenue in fiscal third quarter ending in June increased 10% to $8.9 billion from $8.1 billion, net income soared 17% to $4.9 billion from $4.2 billion, and diluted earnings per Class A share advanced to $2.40 from $2.0 a year ago.
Payment volume jumped 7% and cross border volume rose 14% from a year ago, respectively.
During the quarter, Visa repurchased 17.2 million shares of class A common stock at an average cost of $276.75 per share for $4.8 billion, and about $18.9 billion are available for share repurchases as of June 30, 2024.
The board of directors declared a quarterly cash dividend of $0.520 per share of class A common stock payable on September 3, to all holders of record as of August 9.
Lamb Weston plunged 27% to $57.44 after the french fry maker reported a decline in revenue and earnings in its latest quarter.
Revenue in the fiscal fourth quarter ending in May declined 5% to $1.61 billion from $1.69 billion, net income plunged 74% to $129.6 million from $498.8 million, and diluted earnings per share dropped to 89 cents from $3.40 a year ago.
The food processing company estimated fiscal 2025 revenue between $6.6 billion and $6.8 billion, net income between $630 million and $685 million, and diluted earnings per share between $4.35 and $4.85.
"The operating environment has changed rapidly over the past twelve months as global restaurant traffic and frozen potato demand softened due to menu price inflation continuing to negatively affect global restaurant traffic.
This has resulted in an increase in available capacity in North America and Europe. We believe this supply-demand imbalance will persist through much, if not all, of fiscal 2025," said chief executive Tom Werner in a statement released to investors.
- Barry Adams
- 24 Jul, 2024
- New York City
Stock market indexes on Wall Street turned lower after mega-cap companies reported lower than expected earnings.
The S&P 500 index and the Nasdaq Composite declined more than 1.5% after traders reviewed the latest quarterly results from Google-parent Alphabet and Tesla.
Alphabet reported better-than-expected quarterly revenue and earnings, but YouTube revenue disappointed some analysts.
Tesla plunged more than 10% after the electric vehicle maker reported a 2% increase in overall revenue, but automotive revenue fell 7% in the second quarter.
Tesla is losing market share to a growing list of competitors, and Tesla's discounts and financial incentives in the U.S. and China also hit the company's profitability.
Meta, Microsoft, Nvidia, and Amazon dropped more than 1% after Tesla and Alphabet reported weaker-than-expected quarterly results.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 1.4% to 5,481.04, the Nasdaq Composite fell 1.9% to 17,648.01, and the Russell 2000 index fell 0.7% to 2,226.55.
The yield on 2-year Treasury notes edged lower to 4.41%, 10-year Treasury notes increased to 4.24%, and 30-year Treasury bonds edged higher to 4.48%.
WTI crude oil increased $0.06 to $78.02 a barrel, and natural gas prices edged down 5 cents to $2.14 a thermal unit.
Gold increased by $13.15 to $2,421.65 an ounce, and silver increased 7 cents to $29.30.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.17.
U.S. Stock Movers
Tesla plunged 12.2% to $216.18, and the company reported a drop in its automotive unit sales declined for the second quarter in a row.
Moreover, the company's discounts and financial incentives lowered its profitability.
Revenue in the second quarter increased 2% to $25.5 billion from $24.9 billion, net income attributable to shareholders plunged 45% to $1.5 billion from $2.7 billion, and diluted earnings per share plunged to 52 cents from 91 cents a year ago.
Alphabet dropped 3.9% to $176.49 after the parent company of Google reported better-than-expected quarterly results, but YouTube's revenue disappointed investors.
Revenue in the second quarter increased 14% to $84.7 billion from $74.6 billion, net income rose to $24.6 billion from $18.4 billion, and diluted earnings per share increased to $1.89 from $1.44 a year ago.
YouTube revenue increased to $8.6 billion from $7.6 billion, Google cloud revenue rose to $10.3 billion from $8.0 billion, and Google search revenue jumped to $48.5 billion from $42.6 billion a year ago, respectively.
- Inga Muller
- 24 Jul, 2024
- Frankfurt
European markets were under pressure amid a batch of mixed earnings, and business activities nearly stagnated in the currency union in July.
The DAX index decreased by 0.7% to 18,432.36; the CAC-40 index declined by 1% to 7,532.58; and the FTSE 100 index fell by 0.1% to 8,162.83.
The yield on 10-year German bonds edged lower to 2.43%, French bonds inched higher to 3.12%, the UK gilts inched higher to 4.13%, and Italian bonds increased to 3.77%.
Informa PLC jumped 3.9% to 880.40 pence after the company agreed to acquire Ascential plc for £1.2 billion or $1.5 billion.
Ascential PLC jumped 26.8% to 566.50 pence.
Marston's PLC rose 2.9% to 39.25 pence, and the pub operator reported positive momentum for the 16-week period.
LVMH dropped 4.4% to €663.20 after the luxury goods maker reported weaker-than-expected second quarter results, raising the prospect of a wider slowdown in the industry.
Revenue in the first half declined 1% to €41.7 billion from €44.3 billion, and net profit declined 14% to €7.3 billion from €8.5 billion.
Hermes declined 1.8% to €2,045.0, Kering dropped 4.4% to €301.45, and Richemont fell 1.1% to CHF 134.0.
Remy Cointreau decreased 0.4% to €70.55 after the spirit maker reported a wider-than-expected decline in first-quarter sales of 15.6%.
Deutsche Bank dropped 6.1% to €14.72, and the German bank reported its first quarterly loss in four years.
BNP Paribas fell 1% to €64.08, despite the French financial service company reporting second-quarter earnings that surpassed market expectations.
- Bridgette Randall
- 24 Jul, 2024
- London
European market indexes declined after business activities stagnated in the eurozone, and earnings season picked up pace.
Benchmark indexes in Paris, London, and Frankfurt struggled to advance and lost as much as 1% amid worries of economic growth.
The HCOB Eurozone Composite PMI eased to 50.1 in July from 50.9 in June, according to a preliminary estimate released by S&P Global.
The index dropped to a five-month low, and the latest reading signaled near stagnation in the currency union as the fragile economic recovery continues to lose steam.
Manufacturing sector activities contracted to 45.6 from 45.8, and the service sector slowed to 51.9 from 52.8.
The economic backdrop was weaker in two of the largest economies in the region; business activities declined in Germany for the first time in four months, and in France, growth eased for the third consecutive month.
Europe Indexes and Yields
The DAX index decreased by 0.7% to 18,432.36; the CAC-40 index declined by 1% to 7,532.58; and the FTSE 100 index fell by 0.1% to 8,162.83.
The yield on 10-year German bonds edged lower to 2.43%, French bonds inched higher to 3.12%, the UK gilts inched higher to 4.13%, and Italian bonds increased to 3.77%.
The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar weakened to 88.53 Swiss cents.
Brent crude decreased $0.53 to $81.81 a barrel, and the Dutch TTF natural gas fell by €0.57 to €31.30 per MWh.
Europe Stock Movers
Informa PLC jumped 3.9% to 880.40 pence after the company agreed to acquire Ascential plc for £1.2 billion or $1.5 billion.
Marston's PLC rose 2.9% to 39.25 pence, and the pub operator reported positive momentum for the 16-week period.
LVMH dropped 4.4% to €663.20 after the luxury goods maker reported weaker-than-expected second quarter results, raising the prospect of a wider slowdown in the industry.
Revenue in the first half declined 1% to €41.7 billion from €44.3 billion, and net profit declined 14% to €7.3 billion from €8.5 billion.
Hermes declined 1.8% to €2,045.0, Kering dropped 4.4% to €301.45, and Richemont fell 1.1% to CHF 134.0.
Remy Cointreau decreased 0.4% to €70.55 after the spirit maker reported a wider-than-expected decline in first-quarter sales of 15.6%.
Deutsche Bank dropped 6.1% to €14.72, and the German bank reported its first quarterly loss in four years.
BNP Paribas fell 1% to €64.08, despite the French financial service company reporting second-quarter earnings that surpassed market expectations.
- Akira Ito
- 24 Jul, 2024
- Tokyo
Benchmark indexes in Tokyo dropped more than 1% after business activity indexes declined in July.
Market sentiment was weak after the Au Jibun Bank Japan Manufacturing Purchasing Managers' Index eased to 49.2 in July from 50.0 in June, indicating the first decline in factory activities since April.
The manufacturing sector growth has been volatile this year, and growth eased for the fifth time, data from S&P Global showed.
On the other hand, service sector PMI rebounded to 53.9 in July from 49.4 in June, increasing to a 3-month high.
Any reading above 50 shows growth, and below 50 shows a decline in activities.
The yen rebounded to 154.56 against the U.S. dollar in the hopes that the Bank of Japan may signal rate increases as early as next week at the policy meeting on July 31.
Japan Stock Movers
The Nikkei 225 stock average decreased 1.1% to 39,154.85, and the Topix index fell 1.4% to 2,793.12.
Tech stocks advanced ahead of the start of the earnings season later in the week.
Advantest, Tokyo Electron, and Lasertec declined around 1%, and Screen Holdings gained 1.9%.
Asics Corp. declined 2% to ¥2,468.0, and the sportswear company priced its secondary offering of 75 million shares at 2,442.50 per share, raising about 180.5 billion yen.
Honda Motor declined 2.6% to ¥1,630.0 after the vehicle maker recalled prologue SUVs for defective control links.
A week ago, Honda Motor priced its secondary stock offering at 1,664 yen per share and raised 497 billion yen, or $3.2 billion.
- Li Chen
- 24 Jul, 2024
- Hong Kong
Investors focused on corporate results as the earnings season kicked off, and market sentiment was cautious as property market malaise showed no signs of easing.
Stocks in Hong Kong and Shanghai declined on the worry that the recent flurry of salary cuts announced in the financial sector are going to create another headwind for property prices in tier-1 cities.
Property prices have been still rising in the tier-1 cities, unlike smaller cities where prices have declined for the third year in a row.
However, prices have started to soften in Shanghai, Beijing, and Shenzhen after the latest cuts in staff and salaries in the financial services industry.
Investors were cautious after the jewelry retailer Chow Tai Fook said sales in the latest quarter declined 20% from a year ago.
Li Auto and other electric vehicle makers declined after Tesla reported weaker-than-expected earnings in the second quarter.
The two widely followed indexes, the Hang Seng index and the CSI index, have nearly erased this year's gains amid a weak economic growth outlook, a protracted property market slump, and weakening consumer confidence.
China Stock Movers
The Hang Seng index declined 0.8% to 17,338.51 and the CSI 300 index dropped 0.5% to 3,423.40.
Chow Tai Fook Jewelry Group Ltd. dropped 5.5% to HK$7.49 after the retailer reported weak quarterly results.
Same store sales in Mainland China plunged 26.4% and in Hong Kong declined 30.8% from a year ago, respectively.
Same store average selling price of gold jewelry was resilient, and in Mainland China it rose to HK $6,200 from HK $5,400, and in Hong Kong and Macau it increased to HK $8,900 from HK $8,400.
Electric vehicle makers declined after Tesla reported weaker-than-expected quarterly earnings.
Li Auto declined 4.4% to HK $74.25, BYD dropped 2.7% to HK $232.0, and Xpeng decreased 5.5% to $32.10.
Tech stocks also traded volatile amid market anxieties ahead of the start of the earnings season.
Tencent Holdings declined 0.7% to HK $363.40, Alibaba Group increased 0.7% to HK $74.45, Baidu fell 0.5% to HK $87.85, and Meituan dropped 4.7% to HK 105.10.
- Arun Goswami
- 24 Jul, 2024
- Mumbai
Benchmark indexes in Mumbai traded lower after the government proposed to increase tax on long-term and short-term capital gains.
The Union Budget also rationalized the property transaction tax rate with other financial assets and removed the indexation benefit.
The Sensex index decreased by 0.2% to 80,284.08, and the Nifty index fell by 0.2% to 24,432.30.
On the Mumbai stock exchange, 118 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 inched higher to 7.08%, and the Indian rupee edged higher to <0x01>83.71 against the U.S. dollar.
Schaeffler India increased 3.6% to ₹4,035.65, and the company reported higher sales and earnings in the June quarter.
Revenue increased 7% to ₹2,071.9 crore from ₹1,829.1 crore, and net income advanced 7% to ₹253.4 crore from 237.3 crore a year ago.
Mahindra & Mahindra Financial Services increased 1.8% to ₹301.15, and the company reported a sharp increase in revenue and earnings in the June quarter.
Total revenue increased 20% to ₹3,760 crore, and assets under management advanced 23% to ₹1.1 lakh crore.
Net income rose 45% to ₹513 crore from ₹353 crore, and net interest margin narrowed to 6.6% from 7.1% a year ago, respectively.
Hindustan Unilever declined 1.5% to ₹2,725.30, and the company reported higher revenue and earnings in the June quarter.
Revenue increased 1.4% to ₹15,707 crore, and net income rose 2.2% to ₹2,610 crore.
ICICI Prudential Life jumped 6.9% to ₹682.60 after the insurance company reported better-than-expected results in the June quarter.
Net income jumped 8.7% to ₹225.4 crore and new business premium increased 23% to ₹3,769 crore from ₹3,051 crore from a year ago, respectively.
Tata Consumer Products declined 2.5% to ₹1,223.50, and the company said it plans to sell 3.66 crore of shares in a rights offering and raise ₹2,998 crore.
Bajaj Finance declined 2.6% to ₹6,550.95 after the financial services company reported weaker-than-expected June quarter results.
Net interest income soared 25% to ₹8,365 crore and net profit advanced 14% to ₹3,912 core from a year ago, respectively.
Assets under management increased 31% to ₹3.5 lakh crore, new loan transactions increased by 10% to 1.1 crore, and deposits rose 26% to ₹62,750 crore.
Gross non-performing assets eased to 1.06% from 1.09% and net non-performing assets edged up to 0.47% from 0.39% a year ago, respectively.
- Alexander Garcia
- 23 Jul, 2024
- Miami
Benchmark indexes on Wall Street stayed close to a flatline, and investors reviewed a fresh batch of earnings and awaited key tech earnings after the close.
The S&P 500 index and the Nasdaq Composite hugged the flatline, and the dollar edged slightly higher against the euro and Asian currencies.
Investors review the latest batch of quarterly results, including updates from General Motors, UPS, Crown Holdings, NXP Semiconductor, and Cadence.
General Motors reported strong gains in second quarter sales and earnings, and the vehicle maker said it plans to restructure its struggling China unit.
UPS plunged more than 10% after the company revised its annual outlook and its second quarter performance fell far short of market expectations.
In the latest earnings season, companies have generally met or exceeded investor expectations, supporting the move in market indexes and helping the rally to broaden beyond mega-cap stocks.
Investors are still rotating out of mega-cap stocks into smaller-cap companies and cyclical stocks in the hopes that the Federal Reserve is likely to cut rates starting as early as September.
The lower interest rates stimulate demand and benefit smaller and cyclical companies because of higher demand for their products and services.
Existing Home Sales Slipped In June, Median Price Jumps to Record High
Existing home sales in June declined for the fourth month in a row, but median home prices rose to a record high for the second consecutive month.
Existing home sales declined 5.4% from the previous month and from a year ago to 3.89 million, the National Association of Realtors reported Tuesday.
“We're seeing a slow shift from a seller's market to a buyer's market,” said NAR Chief Economist Lawrence Yun.
“Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”
Median sales price for all housing types increased 4.1% to a record high of $426,900, and total housing inventory at the end of June increased 23.4% from a year ago to 1.32 million.
U.S. Indexes and Treasury Yields
The S&P 500 index decreased 0.1% to 5,564.32, the Nasdaq Composite rose 0.09% to 18,024.72, and the Russell 200 advanced 0.8% to 2,238.53.
The yield on 2-year Treasury notes edged lower to 4.52%, 10-year Treasury notes increased to 4.24%, and 30-year Treasury bonds edged higher to 4.47%.
WTI crude oil decreased $0.91 to $77.49 a barrel, and natural gas prices edged down 3 cents to $2.21 a thermal unit.
Gold increased by $8.60 to $2,403.89 an ounce, and silver decreased 5 cents to $29.01.
The dollar index, which weighs the U.S. currency against a basket of foreign currencies, edged lower to 104.50.
U.S. Stock Movers
Cadence Design Systems increased 1% to $289.12, and the advanced chip design software trimmed its current quarter earnings outlook to between $1.39 and $1.49 per share.
NXP Semiconductor plunged 8.3% to $260.60 after the advanced semiconductor company reported weaker than expected adjusted earnings.
Adjusted earnings in the second quarter were $3.20 per share, lower than market expectations between $3.22 and $3.27 per share.
Crown Holdings soared 9.8% to $85.06 after the packaging company lifted its annual earnings outlook.
Revenue in the second quarter edged lower to $3.04 billion from $3.1 billion, net income increased to $174 million from $157 million, and diluted earnings per share rose to $1.45 from $1.31 a year ago.
The company estimated full-year diluted earnings per share in the range of $6.00 to $6.25 compared to previous guidance of $5.80 to $6.20 and free cash flow to be at least $750 million.
Third quarter adjusted earnings per share are expected to be in the range of $1.75 to $1.85.
General Motors declined 5.8% to $46.67, despite the automaker reporting better-than-expected second quarter results.
Revenue increased 7% to $47.9 billion from $44.7 billion, net income rose to 14.3% to $2.9 billion from $2.6 billion, and diluted earnings per share advanced to $2.55 from $1.83 a year ago.
The vehicle maker also revised its full-year earnings per share outlook to between $8.93 and $9.93 from the previous estimate between $8.94 and $9.94.
The company also declared a quarterly cash dividend of 12 cents payable on September 19 to shareholders on record on September 9.
United Parcel Service dropped 13.1% to $126.01 after the package delivery company reported lower than expected results in the second quarter.
Consolidated revenue in the second quarter declined 1.1% to $21.8 billion from $22.1 billion, net income dropped 32.2% to $1.4 billion from $2.1 billion, and diluted earnings per share fell to $1.65 from $2.42 a year ago.
The company also estimated full-year consolidated revenue of $93 billion and capital expenditure of $4.0 billion, lower than $4.5 billion in the previous estimate.
European Market Indexes Flatlined In Cautious Trading
European market indexes traded mixed, and tech stock gains were overshadowed by a weakness in resource stocks.
Benchmark indexes in Paris, London, and Frankfurt flatlined, and the euro and the pound held firm.
Tech stocks advanced after SAP and Logitech reported better-than-expected quarterly results, but mining stocks edged lower on demand growth worries in China.
The price of copper fell to a three-month low following China's lack of major economic reform announced at the end of the Third Plenum last week.
Moreover, luxury stocks in Paris also faced a sharp fall for the second week due to persistent demand growth worries in mainland China and Hong Kong.
However, market sentiment recovered slightly after U.S. President Joe Biden announced his plan to exit the presidential race and endorsed the nomination of Vice President Kamala Harris as a Democratic Party candidate.
Harris is more likely to continue the current policy of supporting NATO spending targets and support the efforts in defending the Ukraine war, unlike Republican Party candidate Donald Trump's plan to end financial support.
Europe Indexes and Yields
The DAX index increased by 0.8% to 18,557.70; the CAC-40 index fell by 0.3% to 7,598.63; and the FTSE 100 index fell by 0.3% to 8,167.37.
The yield on 10-year German bonds edged lower to 2.45%, French bonds inched lower to 3.10%, the UK gilts inched higher to 4.14%, and Italian bonds decreased to 3.75%.
The euro edged lower to $1.09; the British pound inched higher to $1.29; and the U.S. dollar weakened to 89.19 Swiss cents.
Brent crude decreased $1.20 to $81.19 a barrel, and the Dutch TTF natural gas fell by €0.51 to €31.37 per MWh.
Europe Stock Movers
SAP SE jumped 6.5% to €195.20 after the German software company reported better-than-expected second-quarter results.
Logitech SA increased 1.3% to CHF 83.14 after the Swiss computer accessories maker lifted its annual sales and earnings outlook.
Porsche Automobil declined 2.9% to €41.44 after the luxury vehicle maker cut its annual sales outlook and warned of possible impairment charges linked to supply chain disruptions.
Thales SA declined 5.4% to €145.95, despite the France-based largest European defense electronics company reporting slightly better-than-expected operating profit in the first half.
Alfa Laval rose 0.2% to SEK 467.80 after the Swedish thermal equipment and plant maker reported an increase in sales and earnings in the second quarter.
Compass Group jumped 4.7% after the airline catering company revised its full-year revenue and earnings outlook.
Japan Stocks Rebounded, Nippon Yusen and Yokohama Rubber In Focus
Japan stocks rebounded and halted a 4-day decline following a rise in tech stocks.
The Nikkei 225 gained 0.1% and the Topix index rose 0.3% after the tech stocks mirrored the gain in overnight trading in New York.
The yen drifted higher to 156.65 against the U.S. dollar as investors suspected that the central bank continued its effort to shore up the weak yen.
Toshimitsu Motegi, the general secretary of the ruling Liberal Democratic Party, urged the Bank of Japan to clearly communicate its plan for ending massive stimulus and avoiding an excessive decline in the yen.
The comments of the senior ruling party leader come ahead of the Bank of Japan's policy meeting at the end of the month, and investors are hoping that the central bank will cut down sharply on its monthly 6 trillion yen bond purchase program.
Japan Stock Movers
The Nikkei 225 stock average increased 0.1% to 39,643.39, and the Topix index advanced 0.3% to 2,834.79.
Ocean Transportation Company stocks were focused on the tight container shipment market and rising rates for trans-Pacific routes.
Kawasaki Kisen jumped 6.4% to ¥2,395.50, Nippon Yusen gained 8.2% to ¥4,825.0, and Mitsui OSK gained 5.4% to ¥4,810.0.
Nippon Yusen upwardly revised its financial outlook for the fiscal first half and 2025, citing higher ocean freight rates, positive trends in its air cargo and bulk shipment business, and a weaker yen.
The company revised its first-half revenue to 1.295 trillion yen from 1.165 trillion yen in the previous estimate, net profit attributable to shareholders to 250 billion yen from 135 billion yen, and earnings per share to 547.80 yen from 294.03 yen.
The company revised its annual revenue outlook to 2.57 trillion yen from 2.25 trillion yen, its net income to 390 billion yen from 245 billion yen, and its earnings per share outlook to 855.9 yen from 533.6 yen.
The company said it has completed the purchase of 4.32 million of its own shares and reiterated its commitment to complete its 100 billion yen or as many as 35 million share repurchase plan.
Yokohama Rubber soared 7.5% to ¥3,539.0 after Goodyear announced its plans to sell its off-the-road tire business to the company for $905 million in cash.
Goodyear will retain its business providing OTR tires for U.S. military and defense applications and Goodyear will manufacture certain OTR tires for Yokohama at some of its manufacturing locations for an initial period of up to five years after the closing of the transaction.
China Stocks Lack Direction Amid Worries of Escalating Government Debt and Weak Earnings Growth
Stocks in Shanghai and Hong Kong retained a downward bias for the second day in a row amid a lack of catalysts.
The Hang Seng index declined 0.2%, and the CSI 300 index, tracking the largest mainland stocks, fell 1% after the lack of major economic reform announcements following the Communist Party's Third Plenum last week.
China's Politburo is set to meet later in the month, and investors are hoping for more concrete market-supportive measures after the high-level meeting of ministers.
During the Third Plenum, where dissent or debate on policies is rarely entertained, most participants voiced strong support for meeting the annual economic growth target of 5% and also supported additional measures.
China's government is likely to meet its growth target by surpassing its budget deficit of 5.8% in 2023 and reaching as high as 7%.
China's fiscal deficit has averaged 6.4% since 2020, and the annual deficit is likely to grow at a faster pace in 2024 and 2025.
On Monday, the People's Bank of China unexpectedly lowered its key short-term lending rates, and investors are hoping that the central bank is likely to lower its reserve ratio requirement for banks to increase financial liquidity.
Despite the recent slowdown in spending, China's debt-to-GDP ratio rose close to 300%.
China's total outstanding non-financial debt as a percentage of gross domestic product increased 13.5 percentage points from a year ago to 287.8% at the end of 2023, according to the National Institution for Finance and Development.
In the first half of 2024, the government's debt increased at least by another six percentage points, according to an estimate by Ticker.com.
China Stock Movers
The Hang Seng index decreased 0.2% to 17,609.06, and the CSI 300 index dropped 1% to 3,478.06.
BYD declined 3.5% to HK $237.40 after a Hong Kong Stock Exchange filing showed that the U.S.-based Berkshire Hathaway sold 1.4 million shares, lowering its stake to 4.95%.
BYD Electronic International decreased 3.6% to HK $32.50.
Bank stocks were in focus amid expectations that the People's Bank of China is likely to lower the reserve ratio requirement to facilitate more lending to the industrial economy.
ICBC increased 2.2% to HK $4.37, Orient Overseas gained 0.7% to $108.60, and Bank of China advanced 1.1% to HK $3.46.
- Brian Turner
- 23 Jul, 2024
- New York City
Existing home sales in June declined for the fourth month in a row, but median home prices rose to a record high for the second consecutive month.
Existing home sales declined 5.4% from the previous month and from a year ago to 3.89 million, the National Association of Realtors reported Tuesday.
“We're seeing a slow shift from a seller's market to a buyer's market,” said NAR Chief Economist Lawrence Yun.
“Homes are sitting on the market a bit longer, and sellers are receiving fewer offers. More buyers are insisting on home inspections and appraisals, and inventory is definitively rising on a national basis.”
Median sales price for all housing types increased 4.1% to a record high of $426,900, and total housing inventory at the end of June increased 23.4% from a year ago to 1.32 million.