- Barry Adams
- 26 Dec, 2023
- New York City
Stocks on Wall Street advanced in a holiday-shortened week of thin trading.
The S&P 500 index and the Nasdaq Composite extended their eight-week rally as trading for the final week began.
Stocks have been rallying for the last eight weeks in a row after inflation continued to drift lower over the last nine months and economic growth stayed above 2%, giving room to the Federal Reserve to engineer a soft landing.
Investors are hoping that the Fed will pause a rate hike at the end of its first policy meeting on January 31, 2024.
However, central bankers have pushed back against the rate-cut scenario over the last two weeks, but market indexes have continued to advance.
U.S. Indexes and Yields
The S&P 500 index gained 0.1% to 4,762.36, and the Nasdaq Composite increased 0.3% to 15,037.67.
The yield on 2-year Treasury notes increased to 4.37%, 10-year Treasury notes inched higher to 3.90%, and 30-year Treasury bonds eased to 4.05%.
WTI crude oil increased $1.70 to $75.25 a barrel, and natural gas prices increased 1 cent to $2.53 a thermal unit.
Gold advanced $5.96 to $2,058.98 an ounce and extended this year's gains to 13.5%.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 101.67.
U.S. Stock Movers
RayzBio Inc. jumped 100% to $61.30 after Bristol Myers Squibb said it agreed to acquire the radiopharmaceutical therapeutics for $62.50 a share, or $4.1 billion.
Gracell Biotechnology Inc. soared 60% to $9.92 after Astra Zeneca said it would acquire the China-based cell therapy company for $10 per share, or $1.2 billion.
Intel Corporation gained 2.2% to $49.05 after the advanced semiconductor chipmaker received $3.2 billion from the Israeli government to build a $25 billion plant in southern Israel.
Manchester United PLC increased 1.3% to $20.10 after UK investor Jim Ratcliffe finalized his agreement to acquire a 25% stake in the football club for $33 a share.
- Arun Goswami
- 26 Dec, 2023
- Mumbai
Stocks in Mumbai opened higher in the final week of 2023, and three companies listed their shares after completing their initial public offerings.
The Sensex index increased 16.98 points to 71,123.94, and the Nifty index rose 26.80 points to 21,376.20.
In the previous week, the Sensex eased 0.2% and the Nifty decreased 0.4%.
On the Mumbai stock exchange, 185 stocks traded at their 52-week highs and 16 stocks traded at their 52-week lows.
Banks, financial services providers, and vehicle makers were among the leading gainers in Tuesday's trading.
The State Bank of India, HDFC Bank, Kotak Mahindra, ICICI Bank, and Axis Bank gained between 0.4% and 0.7%.
Bajaj Auto, Mahindra & Mahindra, Maruti Suzuki, Hero Motocorp, Eicher Motors, Tata Motors, and Ashok Leyland gained between 0.1% and 3.5%.
One 97 Communications Ltd., parent of Paytm, decreased 1.3% to ₹633.50 after the company laid off 1,000 employees.
The company blamed the layoff on the recent tightening of rules by the Reserve Bank of India and the adoption of AI-driven technology tools.
Muthoot Microfin and Suraj Estates traded down compared to their initial public issue prices.
Suraj Estates traded ₹346.15 after pricing its initial public offering at ₹360 per share.
Muthoot Microfin declined to ₹273.14, and the company priced its initial public offering at ₹291 per share.
Motisons Jewellers opened at ₹103.90 and eased to ₹99.25 after the company priced its initial public offering at ₹55 per share.
Infosys declined 1.3% to ₹1,542.50 after the company said it lost a contract with a global client worth $1.3 billion over several years.
Anupam Rasayan Limited declined 0.5% to ₹1,004.0 after the company signed a ₹507 crore contract with a Japanese firm to supply a polymer intermediate for the next nine years.
Adani Green Energy increased 1.6% to ₹1,558.0 after the company signed an agreement to supply 1.8 GW of solar power to the Solar Energy Corporation of India.
With the latest agreement, the company has signed a total of 19.8 GW of power supply agreements.
Adani Wilmar declined 0.5% to ₹363.45, and the promoters plan to sell a 1.24% stake in the company before January 31 to comply with the SEBI requirements.
ONGC increased 1.6% to ₹207.30 after the company's wholly owned subsidiary, ONGC Videsh, plans to raise ₹5,000 crore through the sale of non-convertible bonds and finance its capital expenditure and debt refinancing.
- Arjun Pandit
- 26 Dec, 2023
- Mumbai
Stocks opened higher in Mumbai trading in the final week of 2023, and crude oil prices were in focus.
Benchmark indexes edged up about 0.1% in early trading, and markets in Tokyo and Shanghai traded lower in thin trading amid a lack of market-moving events.
Volatility is expected to be higher than normal this week because of the expiry of derivative contracts and the lack of international investor participation in Mumbai trading.
Stocks in Mumbai were under pressure after 628 new coronavirus cases were registered and total active cases rose to 4,054, according to India's health ministry.
Crude oil prices were volatile in international trading after prices rose 3% in the previous week amid rising tensions in the Red Sea.
Supply chain worries were in focus after more shipping companies announced their plans to divert cargo from the Red Sea to sea lanes along southern Africa.
Financial markets in Hong Kong, Australia, and New Zealand were closed to celebrate the Christmas holiday.
The jobless rate in Japan in November was 2.5%, unchanged from the previous month, the Ministry of Internal Affairs and Communications said Monday.
The jobless rate declined to the lowest since January after the number of employed persons increased by 560,000 to 67.8 million, surpassing the increase in the number of unemployed people by 40,000 to 1.69 million.
India Indexes and Yields
The Sensex index increased 16.98 points to 71,123.94, and the Nifty index rose 26.80 points to 21,376.20.
In the previous week, the Sensex eased 0.2% and the Nifty decreased 0.4%.
On the Mumbai stock exchange, 185 stocks traded at their 52-week highs and 16 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.18%, and the Indian rupee hovered near ₹83.15 against the U.S. dollar.
The gold price increased by 0.3% to ₹63,165 per ten grams, and silver edged up by 0.3% to ₹75,626 per kilo.
Crude oil decreased by 0.4% to ₹6,140 per barrel, and natural gas fell by 3.4% to ₹200.40 per thermal unit.
India Stock Movers
One 97 Communications Ltd. decreased 1.3% to ₹633.50 after the company laid off 1,000 employees.
The company blamed the layoff on the recent tightening of rules by the Reserve Bank of India and the adoption of AI-driven technology tools.
Banks, financial services providers, and vehicle makers were among the leading gainers in Tuesday's trading.
The State Bank of India, HDFC Bank, Kotak Mahindra, ICICI Bank, and Axis Bank gained between 0.4% and 0.7%.
Bajaj Auto, Mahindra & Mahindra, Maruti Suzuki, Hero Motocorp, Eicher Motors, Tata Motors, and Ashok Leyland gained between 0.1% and 3.5%.
- Brian Turner
- 22 Dec, 2023
- New York City
Sales of new single-family houses in November declined to a seasonally adjusted annual rate of 590,000, the U.S. Census Bureau and the Department of Housing and Urban Development estimated in a report released on Friday.
New home sales declined 12.2% from the revised October rate of 672,000, but were 1.4% higher than the 582,000 estimate in the month a year ago.
The media price of new homes sold in November was $434,700, and the average price was $488,900.
The seasonally adjusted estimate of new houses for sale at the end of November was 451,000. This represents a supply of 9.2 months at the current sales rate.
Seasonally adjusted private home sales peaked in July at an annual pace of 728,000 and dropped below 600,000 for the first time in 2023.
The monthly supply of available homes for sale jumped above 9 months for the first time in 2023 after dropping to a low of 7.1 in July.
The percentage of all homes sold above $750,000 dropped below 7% from 10% in October and from 15% in the month a year ago.
Meanwhile, housing starts and completions continued to rise at a healthy pace in November, according to a separate report released by the government agency on Tuesday.
Seasonally adjusted single-family housing starts in November increased 18% from the previous month to a rate of 1.14 million.
Seasonally adjusted single-family housing completion declined 3.2% from the previous month to a rate of 960,000.
Newly built homes have become an increasingly attractive option for home buyers after existing home sales are hovering at a 30-year low and new home sales are estimated to jump at least 9% this year.
New home sales, which account for about 14% of all home sales, are generally priced higher than existing homes, and about 76% of all new home sales were priced between $300,000 and $749,00 in November.
New homes are generally priced higher than existing ones.
Despite the median home price declining 6% from a year ago to $434,700, the new homes are still priced higher than the $391,800 median home price of existing homes in November.
The popular 30-year fixed-rate mortgage rate has edged slightly lower after peaking at a 23-year high of 7.79% in late October to just below 7%, according to the data available from the government-owned mortgage lender Freddie Mac.
- Brian Turner
- 22 Dec, 2023
- New York City
Personal income increased 0.4% from the previous month to $81.6 billion in November, according to estimates released Friday by the Bureau of Economic Analysis.
Disposable personal income, or personal income less personal current taxes, increased by 0.4% to $71.9 billion, and personal consumption expenditures (PCE) increased by 0.2% to $46.7 billion.
Personal outlays, the sum of PCE, personal interest payments, and personal current transfer payments, increased $47.8 billion in November.
Personal saving was $839.8 billion in November and the personal saving rate—personal saving as a percentage of disposable personal income—was 4.1%.
The PCE price index, an alternative measure of inflation preferred by policymakers, cooled more than expected.
The PCE price index decreased by 0.1%, and excluding food and energy, the PCE price index increased by 0.1% from the previous month, respectively.
The PCE price index declined to the lowest level since February 2021, to 2.6% from 2.9% in October, and the core PCE price index eased to 3.2% from 3.4% in the previous month, the lowest since mid-2021.
Real DPI increased 0.4% in November, and real PCE increased 0.3%; goods increased 0.5%, and services increased 0.2%.
The Federal Reserve, in its latest assessment on December 13, estimated the PCE price index at 2.8% and the core PCE price index at 3.2% in 2023.
- Scott Peters
- 22 Dec, 2023
- New York City
Karuna Therapeutics soared 47.4% to $317.22 after Bristol Myers agreed to pay $330 per share, or $14 billion, to acquire the maker of the schizophrenia drug KarXT.
The U.S. Food and Drug Administration has accepted KarXT for a review.
Bristol-Myers declined 1.7% to $50.36.
- Scott Peters
- 18 Dec, 2023
- New York City
U.S. Steel Corporation surged 28.2% to $50.33 after the steelmaker accepted the $55 per share offer from Japan-based Nippon Steel in cash.
The offer values the steel company at $14.9 billion in enterprise value, and the deal is expected to close in the second or third quarter of 2024.
- Barry Adams
- 22 Dec, 2023
- New York City
Stocks struggled in early trading, and benchmark indexes attempted to extend the market rally to eight consecutive weeks.
The yield on 10-year Treasury notes declined marginally, and investors generally stayed on the sidelines ahead of the holidays.
Crude oil prices advanced for the third week in a row on the growing worry of Houthi militant attacks on ships traveling in the Red Sea.
Moreover, Angola announced its plan to leave the OPEC+ after 16 years over a disagreement on the 2024 production quota and record U.S. daily crude oil production.
U.S. Indexes and Yields
The S&P 500 index gained 0.8% to 4,718.03, and the Nasdaq Composite increased 0.6% to 14,863.01.
The yield on 2-year Treasury notes decreased to 4.33%, 10-year Treasury notes inched lower to 3.85%, and 30-year Treasury bonds eased to 4.0%.
Crude oil prices dropped below $74 a barrel after U.S. daily production surged to a record high of 13.3 million barrels a day last week, the Energy Information Administration reported Thursday.
WTI crude oil increased $0.51 to $74.40 a barrel, and natural gas prices increased 4 cents to $2.61 a thermal unit.
Gold advanced $16.31 to $2,061.56 an ounce and extended this year's gains to 13.5%.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 101.57 and extended the previous week's loss of 1.4% and the loss of 0.9% in the year so far.
U.S. Stock Movers
Nike Inc. dropped 12.7% to $106.90 after the athletic shoe and sportswear maker lowered its annual sales growth outlook.
Revenue in the fiscal second quarter ending in November increased 1% to $13.4 billion from $13.3 billion, net income advanced $1.6 billion from $1.3 billion, and diluted earnings per share rose to $1.03 from 85 cents a year ago.
Inventories declined 14% from a year ago to $8.0 billion, reflecting a decrease in units and a sharp reversal from elevated inventories a year ago after the company discounted heavily old-style products to make way for new merchandise.
The company repurchased 11.9 million shares for $1.2 billion as a part of its $18 billion stock repurchase program for four years, starting in June 2022.
As of the end of November, the company had repurchased 65.9 million shares for $7.1 billion.
The company also announced its plan to cut $2 billion in costs over the next three years.
Foot Locker, the retailer that relies heavily on Nike products, dropped 8.9% to $29.49 after the announcement of the Nike results.
Karuna Therapeutics soared 47.4% to $317.22 after Bristol Myers agreed to pay $330 per share, or $14 billion, to acquire the maker of the schizophrenia drug KarXT.
The U.S. Food and Drug Administration has accepted KarXT for a review.
Bristol-Myers declined 1.7% to $50.36.
- Inga Muller
- 22 Dec, 2023
- Frankfurt
Benchmark indexes in Paris and Frankfurt edged lower but held firm in London.
The DAX index decreased 0.2% to 16,657.0, the CAC-40 index decreased 0.1% to 7,562.92, and the FTSE 100 index inched higher by 0.05% to 7,698.79.
The yield on 10-year German bonds decreased to 1.97%; French bonds inched lower to 2.48%; the UK gilts inched lower to 3.52%; and Italian bonds inched lower to 3.60%.
Adidas AG declined 6.5% to €182.52 and Puma SE decreased 5.9% to €50.60 after the U.S. rival Adidas lowered its revenue outlook and announced a plan to trim costs by $2 billion over the next three years.
Hapag Lloyd increased 1% to €144.30 after the shipping company said it plans to reroute 25 ships by the year's end to avoid Red Sea water lanes.
Air France KLM decreased 0.9% to €13.61 after the company said it would consider appealing the cancellation by the European Court of French state aid during the COVID-19 pandemic approved by the European Union.
Klockner & Company rose 2.8% to €6.76 after the German steel and metal distributing company said it plans to sell segments of its European commodity distribution business.
Vinci SA increased 0.4% to €114.14 after the French engineering construction company confirmed that its subsidiary Seymour Whyte was awarded a contract to modernize Cressbrook Dam in the Toowoomba region near Brisbane.
Enquest Plc soared 12.4% to 16.0 pence after the independent energy company said it agreed to sell 15% each of its Bressay field and floating production vessel in the North Sea to a unit of Viaro Energy.
- Bridgette Randall
- 22 Dec, 2023
- Frankfurt
European markets traded down on the final day of the week, and investors avoided taking larger bets ahead of the Christmas holidays.
Benchmark indexes in Frankfurt and Paris edged lower but rose in London after a volatile week of trading.
Bond yields held near a one-year low, and the euro edged higher against the dollar on speculation that the U.S. Federal Reserve is more likely to cut rates before the European Central Bank pivots to a rate cut.
UK passenger Car Production Rises In November
The UK passenger car production rose 14.8% from a year ago to 91,923 units in November, the Society of Motor Manufacturers and Traders reported on Friday.
The increase in November followed the 31.6% surge in October after supply chain issues eased and the European Union delayed the tariff on electric vehicles produced in the UK until 2027.
Electric vehicles—hybrids, plug-in hybrids, and battery-operated vehicles—increased by 20% to 35,169 units and accounted for 38% of total production.
The UK economy contracted in the third quarter.
The UK economy shrank 0.1% in the third quarter from the previous quarter, the Office for National Statistics reported Friday.
The economic growth was revised downward in the second estimate after the service sector decline was revised to 0.2% from the 0.1% fall in the first estimate.
Meanwhile, manufacturing growth was revised to 0.1% from no growth and construction to 0.4% from 0.1%.
Household spending declined more than expected by 0.5% from the previous estimate of a 0.4% fall, but business investment declined by less than expected by 3.2% compared to 4.2%, and government spending was revised higher to 0.8% from the decline of 0.5%.
The decline in exports was revised lower to 0.6% from 0.5% and imports to 1% from the previous estimate of a 0.8% fall.
On an annual basis, third-quarter GDP growth was trimmed to 0.3% from the 0.6% estimate, matching the revised growth rate in the second quarter.
Europe Indexes and Yields
The DAX index decreased 0.2% to 16,657.0, the CAC-40 index decreased 0.1% to 7,562.92, and the FTSE 100 index inched higher by 0.05% to 7,698.79.
The yield on 10-year German bonds decreased to 1.97%; French bonds inched lower to 2.48%; the UK gilts inched lower to 3.52%; and Italian bonds inched lower to 3.60%.
The euro traded higher to $1.10, the British pound inched higher to $1.267, and the U.S. dollar eased to 85.56 Swiss cents.
Brent crude increased $0.71 to $80.10 a barrel, and the Dutch TTF natural gas decreased by €0.65 to €33.55 per MWh.
Europe Stock Movers
Adidas AG declined 6.5% to €182.52 and Puma SE decreased 5.9% to €50.60 after the U.S. rival Adidas lowered its revenue outlook and announced a plan to trim costs by $2 billion over the next three years.
Hapag Lloyd increased 1% to €144.30 after the shipping company said it plans to reroute 25 ships by the year's end to avoid Red Sea water lanes.
Air France KLM decreased 0.9% to €13.61 after the company said it would consider appealing the cancellation by the European Court of French state aid during the COVID-19 pandemic approved by the European Union.
Klockner & Company rose 2.8% to €6.76 after the German steel and metal distributing company said it plans to sell segments of its European commodity distribution business.
Vinci SA increased 0.4% to €114.14 after the French engineering construction company confirmed that its subsidiary Seymour Whyte was awarded a contract to modernize Cressbrook Dam in the Toowoomba region near Brisbane.
Enquest Plc soared 12.4% to 16.0 pence after the independent energy company said it agreed to sell 15% each of its Bressay field and floating production vessel in the North Sea to a unit of Viaro Energy.
- Arun Goswami
- 22 Dec, 2023
- Mumbai
Stocks in Mumbai rebounded and trimmed weekly losses and investors reacted to domestic corporate news in the absence of economic releases.
The Sensex index increased 233.80 points to 71,188.05, and the Nifty index rose 113.45 points to 21,368.45.
For the week, the Sensex eased 0.2% and the Nifty decreased 0.4%.
GMR Airports Infrastructure gained 4.6% to ₹76.44 after the company signed an agreement to invest ₹675 crore in the planned airport at Bhogapuram, Andhra Pradesh.
Railtel Corporation increased 3.2% to ₹301.10 after the company won an order of ₹66.8 crore.
Allcargo Logistics gained 8.3% to ₹306.50 and Allcargo Gati advanced 1.4% to ₹140.0 after the boards of two companies agreed to restructure businesses.
Allcargo Logistics will manage the express and contract logistics business, and the international business will be spun off as a separate business as Allcargo ECU Ltd.
Allcargo Logostics shareholders will receive one-to-one additional shares in Allcargo ECU Ltd.
Allcargo Gati shareholders will receive 63 shares in Allcargo Logistics for every 10 shares held.
The latest restructuring scheme will take into account the 3-to-1 bonus approved by Allcargo Logistics shareholders.
Zomato Ltd. increased 2% to ₹129.95 after the delivery company confirmed that the company is not looking to acquire Shiprocket valued at ₹17,000 crore rupees.
Tata Motor gained 2.8% to ₹729.15, and Tata Motor DVR added 2.9% to ₹488.45 after the BSE and NSE approved the company's plan to exchange shares of Tata Motor DVR for Tata Motor.
Life Insurance Company of India, or LIC, jumped 5.4% to ₹805.0 after the Ministry of Finance granted an exemption until 2032 to meet the 25% minimum public shareholding rule.
- Arjun Pandit
- 22 Dec, 2023
- Mumbai
Benchmark indexes in Mumbai and Asia advanced following the rebound in New York in overnight trading.
Market indexes were on the rise after U.S. GDP growth in the third quarter was revised slightly lower to 4.9% from the previous estimate of 5.1%.
Moreover, the weekly jobless claims increased by 2,000 to 215,000, confirming tight U.S. labor market conditions.
U.S. market indexes rebounded on speculation that weakening economic growth and a slight increase in jobless claims may convince policymakers to cut rates in 2024.
Moreover, crude oil prices are set to increase for the third week in a row due to elevated security tensions in the Red Sea, forcing more shipping companies to reroute shipments around South Africa.
The Saudi Arabia-led OPEC+ was also in the spotlight after Angola announced its plan to leave the oil cartel over a 2024 production quota disagreement.
Japan's consumer price inflation eased to 2.8% in November from 3.3% in October, the Ministry of Internal Affairs and Communication reported Friday.
Overall inflation eased to the lowest level since July 2022 after food and transportation price inflation slowed.
Meanwhile, core inflation, which excludes food but includes energy prices, slowed to 2.5% from 2.9% in the previous month but stayed above the 2% target set by the Bank of Japan.
The yen edged up slightly in Tokyo trading and traded at 142.51 against the U.S. dollar.
India Indexes and Yields
The Sensex index increased 233.80 points to 71,188.05, and the Nifty index rose 113.45 points to 21,368.45.
For the week, the Sensex eased 0.2% and the Nifty decreased 0.4%.
On the Mumbai stock exchange, 82 stocks traded at their 52-week highs and 5 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held firm at 7.18%, and the Indian rupee hovered near ₹83.25 against the U.S. dollar.
The gold price increased by 0.7% to ₹62,720 per ten grams, and silver edged up by 0.4% to ₹75,680 per kilo.
Crude oil increased by 1.5% to ₹6,223 per barrel, and natural gas fell by 0.1% to ₹206.80 per thermal unit.
India Stock Movers
GMR Airports Infrastructure gained 4.6% to ₹76.44 after the company signed an agreement to invest ₹675 crore in the planned airport at Bhogapuram, Andhra Pradesh.
Railtel Corporation increased 3.2% to ₹301.10 after the company won an order of ₹66.8 crore.
Allcargo Logistics gained 8.3% to ₹306.50 and Allcargo Gati advanced 1.4% to ₹140.0 after the boards of two companies agreed to restructure businesses.
Allcargo Logistics will manage the express and contract logistics business, and the international business will be spun off as a separate business as Allcargo ECU Ltd.
Allcargo Logostics shareholders will receive one-to-one additional shares in Allcargo ECU Ltd.
Allcargo Gati shareholders will receive 63 shares in Allcargo Logistics for every 10 shares held.
The latest restructuring scheme will take into account the 3-to-1 bonus approved by Allcargo Logistics shareholders.
Zomato Ltd. increased 2% to ₹129.95 after the delivery company confirmed that the company is not looking to acquire Shiprocket valued at ₹17,000 crore rupees.
Tata Motor gained 2.8% to ₹729.15, and Tata Motor DVR added 2.9% to ₹488.45 after the BSE and NSE approved the company's plan to exchange shares of Tata Motor DVR for Tata Motor.
Life Insurance Company of India, or LIC, jumped 5.4% to ₹805.0 after the Ministry of Finance granted an exemption until 2032 to meet the 25% minimum public shareholding rule.