- Arun Goswami
- 03 Apr, 2024
- Mumbai
Stocks in Mumbai faced headwinds in early trading on the worry of resurgent inflation after metal prices advanced and crude oil prices traded at a five-month high.
The Sensex index decreased 0.2% to 73,757.23, and the Nifty index edged down 0.3% to 22,385.70.
On the Mumbai stock exchange, 33 stocks traded at their 52-week highs and 3 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.10%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
UltraTech Cement rose 1% to ₹10,057.0, and the company reiterated its plans to increase its annual cement production capacity to 200 million tons.
The company also said it plans to invest ₹32,400 crore over the next three years to achieve its production goals.
JSW Energy rose 4.3% to ₹542.0, and the company's board approved an institutional equity offering to raise as much as ₹5,000 crore with a floor price of ₹510.09 per share.
HCL Technologies declined 1.6% to ₹1,531.95 after the company agreed to sell its 49% stake in a joint venture with the U.S.-based State Street for $172.5 million.
DroneAcharya Aerial Innovation gained 6.8% to ₹150.55 after the company received an order worth ₹4.7 crore for geographical information processing from a UK-based company.
Anupam Rasayan gained 0.5% to ₹884.60 after the company signed an agreement with a leading Japanese company to supply two intermediate chemicals using fluorination technology.
The $90 million, or ₹713 crore, contract spans seven years.
Olectra Greentech increased 0.1% to ₹1,916.95 after the company extended its contract with the China-based BYD Auto Industry for manufacturing and maintaining electric buses till the end of 2030.
National Aluminium Co. or Nalco gained 2.5% to ₹170.40 after the company reported record cast metal production and sales and record bauxite excavation in the fiscal year 2024 ending in March.
The aluminium production rose to 0.46 million tons and sale increased to 0.47 million tons and bauxite excavation increased to 7.6 million tons.
Ashiana Housing advanced 2.4% to ₹309.10 after the company announced the sale of all 224 residential units located in Gurugram, Haryana valued at ₹440.3 crore.
- Barry Adams
- 02 Apr, 2024
- New York City
U.S. benchmark indexes extended losses to the second day in a row, and yields on Treasury notes approached three-month highs after a string of data points highlighted a resilient economy.
The S&P 500 index and the Nasdaq Composite fell more than 1%, and the yield on 10-year Treasury notes advanced to a three-month high of 4.39%.
Manufactured goods orders surged more than 7% from a year ago, following the rise of construction spending by 10.7%.
Moreover, job openings edged slightly higher, and hirings and separations were stable for the third month in a row in February.
Investors are scaling back expectations of interest rate cuts as early as June after the personal consumption expenditures price index eased but stayed sharply higher than the Fed's 2% target rate.
Total construction activities, private and public, in February also rose more than expected from a year ago, monthly update from the U.S. Census Bureau showed on Monday.
New orders for manufactured goods in February rose following two consecutive monthly declines, increasing 1.4% monthly to $576.8 billion, the U.S. Census Bureau reported Tuesday.
This followed a monthly 3.8% decrease in January.
New orders for all manufactured goods rose 7.5% from a year ago, indicating strong demand for goods.
Shipments, following two consecutive months of decline, rose 1.4% from the previous month to $581.6 billion and advanced 7.1% from a year ago.
U.S. Indexes and Yields
The S&P 500 index decreased 0.9% to 5,198.17, and the Nasdaq Composite fell 1.1% to 16,219.45.
The yield on 2-year Treasury notes increased to 4.73%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $0.86 to $84.75 a barrel, and natural gas prices increased 4 cents to $1.87 a thermal unit.
Gold jumped to a record high on the hopes that the U.S. Federal Reserve is more likely to lower interest rates after the release of the weaker-than-expected PCE Price Index.
Moreover, elevated geopolitical tensions in the Middle East and the ongoing war in Ukraine contributed to market anxieties.
Gold increased by $10.60 to $2,261.11 an ounce, and silver rose 72 cents to $25.82.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.79.
U.S. Stock Movers
Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services finalized its capitation rates to 3.7% for financial year 2025, matching the rate in financial year 2024.
Humana dropped 10.9% to $313.0, CVS Health fell 6.5% to $74.49, UnitedHealth Group declined 4.3% to $468.54, and Cigna Group eased 1.9% to $357.32 on the worry that operating margin will remain under pressure.
Payments from the government to Medicare Advantage plans are expected to increase on average by 3.70%, or over $16 billion, from 2024 to 2025.
The federal government is projected to pay between $500 and $600 billion in Medicare Advantage payments to private health plans in 2025.
PVH Corp. plunged 22% to $108.40 after the apparel maker and the parent company of popular brands Tommy Hilfiger and Calvin Klein offered a weak full-year outlook, citing weak macroeconomic conditions in Europe.
General Electric Co. dropped 20% to $139.91 after the diversified conglomerate completed its three-way breakup, and its aerospace and energy business is scheduled to trade as a separate company starting Tuesday.
Canoo Inc. plunged 30% to $2.68 after the management highlighted "substantial doubt" about the company's ability to continue as a going concern.
Trump Media & Technology Group declined 1% to $48.16 and extended a two-day loss to more than 22% after the company reported a sharply higher quarterly loss in its latest quarter a day ago.
Tesla declined 6.7% to $163.65 after the electric vehicle maker reported sharply lower deliveries in the first quarter.
Tesla deliveries in the first quarter declined to 386,810 units from 412,376 units a year ago, and production eased to 433,371 units from 440.808 units a year ago.
European Markets Drop 1% Tracking Losses in New York
European market indexes struggled to advance, bond yields edged higher, and the euro held steady in Tuesday's trading.
Market sentiment was cautiously optimistic as investors reviewed mixed updates on factory activities in the eurozone, the U.K., Spain, Italy, and Holland.
Benchmark indexes in Paris, Frankfurt, and London hovered near recent record highs as investors debated future interest rate paths amid a weak macroeconomic backdrop and a moderating but elevated inflation level.
Crude oil prices advanced to a five-month high, stoking fears that higher energy prices may fuel another bout of inflation, supporting the case for higher-for-longer interest rates.
In the afternoon trading, benchmark indexes dropped more than 1% tracking losses in New York on the worry that the Federal Reserve is more likely to delay its rate cut following the recent string of positive economic data.
UK Home Price Annual Change Accelerate In March
The UK home price unexpectedly declined in March from the previous month, according to the latest update released by the Nationwide Building Society.
The Nationwide Building Society's house price index decreased 0.2% from the previous month in March, after rising 0.7% in February.
The home price index increased 1.6% from a year ago, faster than 1.2% rise in February, and the average home price increased to £261,142 from £260,420 in the previous month.
Euro Area Inflation Expectations Moderate
The consumer expectations of inflation in the Euro Area moderated in February, according to the latest survey released by the European Central Bank.
Median expectations of inflation over the next 12 months eased to 3.1% in February from 3.3% in January, the survey showed.
The inflation expectations dropped to the lowest since the start of the Ukraine war; however, the three-year forward inflation outlook was unchanged at 2.5%.
However, consumers anticipated home prices to advance at a slightly faster pace of 2.4% from 2.2% in January, but mortgage rate expectations were unchanged at 5.1%.
Unemployment rate expectations over the next 12 months stayed the same at 10.9%, and economic growth over the same period was unchanged at -1.1%.
Consumers were slightly more optimistic about nominal income growth expectations, with an increase of 1.4% compared to the previous expectation of 1.2% in January, but nominal spending growth expectations were stable at 3.7%.
Europe Indexes and Yields
The DAX index decreased by 1.1% to 18,283.13, the CAC-40 index fell by 0.9% to 8,130.05, and the FTSE 100 index inched lower by 0.2% to 7,935.09.
The yield on 10-year German bonds edged up to 2.39%; French bonds inched higher to 2.89%; the UK gilts edged higher to 4.09%; and Italian bonds inched lower to 3.76%.
The euro edged higher to $1.076, the British pound inched higher to $1.256, and the U.S. dollar held steady at 90.84 Swiss cents.
Brent crude increased $0.73 to $88.37. a barrel, and the Dutch TTF natural gas fell by €0.88 to €26.47 per MWh.
Europe Stock Movers
Rheinmetall AG jumped 2.2% to €533.40 after the German automotive products and arms maker won an order worth 135 million from the military contractor KNDS Group.
UBS Group advanced 0.5% to CHF 27.89 after the Swiss bank launched a new stock repurchase program of up to $2 billion.
Metals and mining companies advanced after manufacturing activities expanded at a faster pace in the U.S. and China.
Antofagasta, Anglo America, and Glencore gained between 1% and 2.5%.
BP plc and Shell PLC jumped 2.9% after Brent crude oil prices approached a five-month high of $89 a barrel on the expectation of rising demand in China and falling inventories in the U.S.
Persimmon declined 1.9% to 1,290.50 pence, and Taylor Wimpey decreased 1,290.50 pence after the home price index unexpectedly fell in March after higher mortgage rates dented demand.
CTS Eventim increased 0.5% to €82.95 after the German festival ticketing company signed a put option agreement to acquire Vivendi's festival and ticketing operation outside of France for an undisclosed amount.
See Tickets, owned by Vivendi, sold about 44 million tickets in 2023 for trade shows, sports events, concerts, and other consumer and business events in the U.S., Belgium,
Vivendi's ticketing business generated about €105 million of the total of €137 million through its broader festival operations, with U.S. and UK revenues accounting for the majority of the share.
Asian Markets Turn Lower Amid Rate Uncertainties
Asian markets rebounded; the Nikkei index in Tokyo soared more than 1.5% but erased most of the gains; and market indexes in Shanghai struggled to gain traction.
The Hang Seng index in Hong Kong advanced 2.4% after investors returned from a long weekend and reacted to an improving economic manufacturing activity report released over the weekend.
However, market indexes in South Korea and Australia closed mixed amid interest rate uncertainties.
Japan Indexes Erase Early Gains in Choppy Trading
Stocks in Japan attempted to rebound in Tuesday's trading in cautious trading after the U.S. manufacturing survey showed stronger-than-expected activities in March.
Moreover, investors also turned cautious a day after the release of data on business confidence among large manufacturing companies and the persistent weakness in factory activities for the tenth month in a row.
In other economic news, the monetary base in Japan increased by 1.6% from a year ago in March to 666,240 trillion yen, the Bank of Japan said on Tuesday.
The monetary base data for February was revised higher to 2.4% from the previous estimate of 2.1%, and the seasonally adjusted monetary base rose 3.6%.
The Nikkei 225 index rose 0.1% to 39,837.47, and the Topix index fell 0.2% to 2,714.93.
Large manufacturing companies traded lower on the prospect of higher labor costs, but tech companies continued to extend this year's gains.
Tokyo Electron, SoftBank, Screen Holdings, and Disco Corp. gained between 1% and 3%.
Sumco Corp., Ebara Corp., and Rrenesas Electronics gained between 2% and 4%.
Toyota Motor, Honda Motor, Nissan Motor, and Subaru declined between 1% and 4%.
Nippon Steel advanced 2% to ¥3,689.0 as the company made its final push to acquire U.S. Steel for $14.1 billion.
Hong Kong Stocks Rebound, Shanghai Stocks Struggle Near Flatline
Stocks in Shanghai lacked direction, but benchmark indexes in Hong Kong advanced after investors reacted positively to the rising factory activity data released over the weekend.
China's manufacturing purchasing managers' index increased to 50.8 in March from 49.1 in February, the National Bureau of Statistics reported on Sunday.
Moreover, investors hoped that foreign investors would continue to purchase Chinese stocks following the net inflows in February and March.
The Hang Seng index declined nearly 3% in the first quarter and extended four-year losses on the protracted property market slump, weak consumer and investor confidence, and the government's prioritizing of national security over the economy, targeting foreign firms.
The CSI 300 index decreased 0.5% to 3,576.11, but the Hang Seng index rose 2.2% to 16,912.34.
Bank of China, China Merchant Bank, ICBC, and Agriculture Bank of China advanced between 1% and 4% in Hong Kong trading.
Xiaomi Corp. soared 10.4% to HK$16.48 after the smart phone maker reported strong demand for its electric vehicle released last week.
India Stocks Look Down, Rupee Holds Firm Near Record Low
Stocks lacked direction in Mumbai trading, and investors awaited interest rate decisions from the Reserve Bank of India on Friday.
The Sensex and the Nifty indexes traded around the flatline as investors debated future rate paths and domestic macroeconomic conditions.
The yield on 5-year Indian government bonds held stable, and the Indian rupee traded near record lows after the U.S. dollar edged higher against major international currencies.
The Sensex index increased 0.04% to 74,044.45, and the Nifty index edged up 0.2% to 22,490.05.
On the Mumbai stock exchange, 68 stocks traded at their 52-week highs and 12 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.05%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
- Brian Turner
- 02 Apr, 2024
- New York City
The number of job openings, hires, and separations were a little unchanged for the third month in a row.
Job openings at the end of the last business day of February rose by 8.000 to 8.8 million, the U.S. Bureau of Labor Statistics reported Tuesday.
Total hires in the month were 5.8 million and separations were 5.6 million; both activities were little changed from the previous month.
Job Openings
The number of job openings is down from a series high of 12.2 million in March 2022, after post-pandemic demand drove demand for new staff.
The rate was 5.3% for the third month in a row.
In February, job openings increased in finance and insurance by 126,000; state and local government, excluding education, by 91,000; and arts, entertainment, and recreation by 51,000.
Job openings decreased in information by 85,000 and in federal government by 21,000.
Job Separations
The number of total separations in February changed little, at 5.6 million, and the rate was unchanged at 3.5%.
Over the month, the number of total separations increased in arts, entertainment, and recreation by 64,000 but decreased in transportation, warehousing, and utilities by 62,000.
In February, the number of quits was little changed at 3.5 million, and the rate was 2.2% for the fourth consecutive month.
In February, the number and rate of layoffs and discharges changed little, at 1.7 million and 1.1%, respectively.
The number of layoffs and discharges increased in accommodation and food services by 67,000 and in arts, entertainment, and recreation by 57,000.
- Scott Peters
- 02 Apr, 2024
- New York City
Stocks on Wall Street headed lower, and the tech-heavy Nasdaq Composite index declined more than 1%.
Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services proposed a lower than expected rate increase in the financial year 2025.
The S&P 500 index decreased 0.8% to 5,200.07, and the Nasdaq Composite fell 1.2% to 16,198.84.
The yield on 2-year Treasury notes increased to 4.73%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $1.12 to $85.01 a barrel, and natural gas prices decreased 4 cents to $1.78 a thermal unit.
Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services finalized its capitation rates to 3.7% for financial year 2025, matching the rate in financial year 2024.
Humana dropped 10.9% to $313.0, CVS Health fell 6.5% to $74.49, UnitedHealth Group declined 4.3% to $468.54, and Cigna Group eased 1.9% to $357.32 on the worry that operating margin will remain under pressure.
Payments from the government to Medicare Advantage plans are expected to increase on average by 3.70%, or over $16 billion, from 2024 to 2025.
The federal government is projected to pay between $500 and $600 billion in Medicare Advantage payments to private health plans in 2025.
PVH Corp. plunged 22% to $108.40 after the apparel maker and the parent company of popular brands Tommy Hilfiger and Calvin Klein offered a weak full-year outlook, citing weak macroeconomic conditions in Europe.
General Electric Co. dropped 20% to $139.91 after the diversified conglomerate completed its three-way breakup, and its energy business, GE Vernova, is scheduled to trade as a separate company starting Tuesday.
General Electric spun off its medical devices business, GE Healthcare, in 2023.
The industrial conglomerate's ill-focused expansion in financial services, powered by financial leverage, forced the company's breakup years later.
Canoo Inc. plunged 30% to $2.68 after the management highlighted "substantial doubt" about the company's ability to continue as a going concern.
Trump Media & Technology Group declined 1% to $48.16 and extended a two-day loss to more than 22% after the company reported a sharply higher quarterly loss in its latest quarter a day ago.
Tesla declined 6.7% to $163.65 after the electric vehicle maker reported sharply lower deliveries in the first quarter.
Tesla deliveries in the first quarter declined to 386,810 units from 412,376 units a year ago, and production eased to 433,371 units from 440.808 units a year ago.
- Barry Adams
- 02 Apr, 2024
- New York City
U.S. stocks declined for the second day in a row, and yields on Treasury notes approached three-month highs after a string of data points highlighted a resilient economy.
The S&P 500 index and the Nasdaq Composite fell close to 1%, and the yield on 10-year Treasury notes advanced to a three-month high of 4.39%.
Investors are scaling back expectations of interest rate cuts as early as June after the personal consumption expenditures price index eased but stayed sharply higher than the Fed's 2% target rate.
Moreover, a private survey showed manufacturing activities were ahead of the market's expectations in March.
Total construction activities, private and public, in February also rose more than expected from a year ago, indicating resilient economic conditions.
Investors are also awaiting the release of the JOLT job openings report and the factory orders report later in the day.
U.S. Indexes and Yields
The S&P 500 index decreased 0.8% to 5,200.07, and the Nasdaq Composite fell 1.2% to 16,198.84.
The yield on 2-year Treasury notes increased to 4.73%, 10-year Treasury notes inched up to 4.39%, and 30-year Treasury bonds edged up to 4.53%.
WTI crude oil increased $1.12 to $85.01 a barrel, and natural gas prices decreased 4 cents to $1.78 a thermal unit.
Gold jumped to a record high on the hopes that the U.S. Federal Reserve is more likely to lower interest rates after the release of the weaker-than-expected PCE Price Index.
Moreover, elevated geopolitical tensions in the Middle East and the ongoing war in Ukraine contributed to market anxieties.
Gold increased by $6.41 to $2,256.04 an ounce, and silver rose 4 cents to $25.01.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.93.
U.S. Stock Movers
Health insurance stocks fell sharply after the Centers for Medicare and Medicaid Services finalized its capitation rates to 3.7% for financial year 2025, matching the rate in financial year 2024.
Humana dropped 10.9% to $313.0, CVS Health fell 6.5% to $74.49, UnitedHealth Group declined 4.3% to $468.54, and Cigna Group eased 1.9% to $357.32 on the worry that operating margin will remain under pressure.
Payments from the government to Medicare Advantage plans are expected to increase on average by 3.70%, or over $16 billion, from 2024 to 2025.
The federal government is projected to pay between $500 and $600 billion in Medicare Advantage payments to private health plans in 2025.
PVH Corp. plunged 22% to $108.40 after the apparel maker and the parent company of popular brands Tommy Hilfiger and Calvin Klein offered a weak full-year outlook, citing weak macroeconomic conditions in Europe.
General Electric Co. dropped 20% to $139.91 after the diversified conglomerate completed its three-way breakup, and its aerospace and energy business is scheduled to trade as a separate company starting Tuesday.
Canoo Inc. plunged 30% to $2.68 after the management highlighted "substantial doubt" about the company's ability to continue as a going concern.
Trump Media & Technology Group declined 1% to $48.16 and extended a two-day loss to more than 22% after the company reported a sharply higher quarterly loss in its latest quarter a day ago.
Tesla declined 6.7% to $163.65 after the electric vehicle maker reported sharply lower deliveries in the first quarter.
Tesla deliveries in the first quarter declined to 386,810 units from 412,376 units a year ago, and production eased to 433,371 units from 440.808 units a year ago.
- Inga Muller
- 02 Apr, 2024
- Frankfurt
European markets struggled to advance after a four-day holiday weekend, and bond yields edged higher.
The DAX index decreased by 0.1% to 18,480.81, the CAC-40 index rose by 0.2% to 8,218.86, and the FTSE 100 index inched higher by 0.3% to 7,973.30.
The yield on 10-year German bonds edged up to 2.39%; French bonds inched higher to 2.89%; the UK gilts edged higher to 4.09%; and Italian bonds inched lower to 3.76%.
Rheinmetall AG jumped 2.2% to €533.40 after the German automotive products and arms maker won an order worth 135 million from the military contractor KNDS Group.
UBS Group advanced 0.5% to CHF 27.89 after the Swiss bank launched a new stock repurchase program of up to $2 billion.
Metals and mining companies advanced after manufacturing activities expanded at a faster pace in the U.S. and China.
Antofagasta, Anglo America, and Glencore gained between 1% and 2.5%.
BP plc and Shell PLC jumped 2.9% after Brent crude oil prices approached a five-month high of $89 a barrel on the expectation of rising demand in China and falling inventories in the U.S.
Home builders in the U.K. edged lower on the worry that rising home prices may dent demand in the months ahead.
Persimmon declined 1.9% to 1,290.50 pence, and Taylor Wimpey decreased 1,290.50 pence after the home price index unexpectedly fell in March after higher mortgage rates dented demand.
CTS Eventim increased 0.5% to €82.95 after the German festival ticketing company signed a put option agreement to acquire Vivendi's festival and ticketing operation outside of France for an undisclosed amount.
See Tickets, owned by Vivendi, sold about 44 million tickets in 2023 for trade shows, sports events, concerts, and other consumer and business events in the U.S., Belgium,
Vivendi's ticketing business generated about €105 million of the total of €137 million through its broader festival operations, with U.S. and UK revenues accounting for the majority of the share.
- Bridgette Randall
- 02 Apr, 2024
- Frankfurt
European market indexes struggled to advance, bond yields edged higher, and the euro held steady in Tuesday's trading.
Market sentiment was cautiously optimistic as investors reviewed mixed updates on factory activities in the eurozone, the U.K., Spain, Italy, and Holland.
Benchmark indexes in Paris, Frankfurt, and London hovered near recent record highs as investors debated future interest rate paths amid a weak macroeconomic backdrop and a moderating but elevated inflation level.
Crude oil prices advanced to a five-month high, stoking fears that higher energy prices may fuel another bout of inflation, supporting the case for higher-for-longer interest rates.
UK Home Price Annual Change Accelerate In March
The UK home price unexpectedly declined in March from the previous month, according to the latest update released by the Nationwide Building Society.
The Nationwide Building Society's house price index decreased 0.2% from the previous month in March, after rising 0.7% in February.
The home price index increased 1.6% from a year ago, faster than 1.2% rise in February, and the average home price increased to £261,142 from £260,420 in the previous month.
Euro Area Inflation Expectations Moderate
The consumer expectations of inflation in the Euro Area moderated in February, according to the latest survey released by the European Central Bank.
Median expectations of inflation over the next 12 months eased to 3.1% in February from 3.3% in January, the survey showed.
The inflation expectations dropped to the lowest since the start of the Ukraine war; however, the three-year forward inflation outlook was unchanged at 2.5%.
However, consumers anticipated home prices to advance at a slightly faster pace of 2.4% from 2.2% in January, but mortgage rate expectations were unchanged at 5.1%.
Unemployment rate expectations over the next 12 months stayed the same at 10.9%, and economic growth over the same period was unchanged at -1.1%.
Consumers were slightly more optimistic about nominal income growth expectations, with an increase of 1.4% compared to the previous expectation of 1.2% in January, but nominal spending growth expectations were stable at 3.7%.
Europe Indexes and Yields
The DAX index decreased by 0.1% to 18,480.81, the CAC-40 index rose by 0.2% to 8,218.86, and the FTSE 100 index inched higher by 0.3% to 7,973.30.
The yield on 10-year German bonds edged up to 2.39%; French bonds inched higher to 2.89%; the UK gilts edged higher to 4.09%; and Italian bonds inched lower to 3.76%.
The euro edged higher to $1.076, the British pound inched higher to $1.256, and the U.S. dollar held steady at 90.84 Swiss cents.
Brent crude increased $1.21 to $88.92. a barrel, and the Dutch TTF natural gas fell by €0.35 to €26.98 per MWh.
Europe Stock Movers
Rheinmetall AG jumped 2.2% to €533.40 after the German automotive products and arms maker won an order worth 135 million from the military contractor KNDS Group.
UBS Group advanced 0.5% to CHF 27.89 after the Swiss bank launched a new stock repurchase program of up to $2 billion.
Metals and mining companies advanced after manufacturing activities expanded at a faster pace in the U.S. and China.
Antofagasta, Anglo America, and Glencore gained between 1% and 2.5%.
BP plc and Shell PLC jumped 2.9% after Brent crude oil prices approached a five-month high of $89 a barrel on the expectation of rising demand in China and falling inventories in the U.S.
Persimmon declined 1.9% to 1,290.50 pence, and Taylor Wimpey decreased 1,290.50 pence after the home price index unexpectedly fell in March after higher mortgage rates dented demand.
CTS Eventim increased 0.5% to €82.95 after the German festival ticketing company signed a put option agreement to acquire Vivendi's festival and ticketing operation outside of France for an undisclosed amount.
See Tickets, owned by Vivendi, sold about 44 million tickets in 2023 for trade shows, sports events, concerts, and other consumer and business events in the U.S., Belgium,
Vivendi's ticketing business generated about €105 million of the total of €137 million through its broader festival operations, with U.S. and UK revenues accounting for the majority of the share.
- Akira Ito
- 02 Apr, 2024
- Tokyo
Asian markets rebounded; the Nikkei index in Tokyo soared more than 1.5% but erased most of the gains; and market indexes in Shanghai struggled to gain traction.
The Hang Seng index in Hong Kong advanced 2.4% after investors returned from a long weekend and reacted to an improving economic manufacturing activity report released over the weekend.
However, market indexes in South Korea and Australia closed mixed amid interest rate uncertainties.
Japan Indexes Erase Early Gains in Choppy Trading
Stocks in Japan attempted to rebound in Tuesday's trading in cautious trading after the U.S. manufacturing survey showed stronger-than-expected activities in March.
Moreover, investors also turned cautious a day after the release of data on business confidence among large manufacturing companies and the persistent weakness in factory activities for the tenth month in a row.
In other economic news, the monetary base in Japan increased by 1.6% from a year ago in March to 666,240 trillion yen, the Bank of Japan said on Tuesday.
The monetary base data for February was revised higher to 2.4% from the previous estimate of 2.1%, and the seasonally adjusted monetary base rose 3.6%.
The Nikkei 225 index rose 0.1% to 39,837.47, and the Topix index fell 0.2% to 2,714.93.
Large manufacturing companies traded lower on the prospect of higher labor costs, but tech companies continued to extend this year's gains.
Tokyo Electron, SoftBank, Screen Holdings, and Disco Corp. gained between 1% and 3%.
Sumco Corp., Ebara Corp., and Rrenesas Electronics gained between 2% and 4%.
Toyota Motor, Honda Motor, Nissan Motor, and Subaru declined between 1% and 4%.
Nippon Steel advanced 2% to ¥3,689.0 as the company made its final push to acquire U.S. Steel for $14.1 billion.
Hong Kong Stocks Rebound, Shanghai Stocks Struggle Near Flatline
Stocks in Shanghai lacked direction, but benchmark indexes in Hong Kong advanced after investors reacted positively to the rising factory activity data released over the weekend.
China's manufacturing purchasing managers' index increased to 50.8 in March from 49.1 in February, the National Bureau of Statistics reported on Sunday.
Moreover, investors hoped that foreign investors would continue to purchase Chinese stocks following the net inflows in February and March.
The Hang Seng index declined nearly 3% in the first quarter and extended four-year losses on the protracted property market slump, weak consumer and investor confidence, and the government's prioritizing of national security over the economy, targeting foreign firms.
The CSI 300 index decreased 0.5% to 3,576.11, but the Hang Seng index rose 2.2% to 16,912.34.
Bank of China, China Merchant Bank, ICBC, and Agriculture Bank of China advanced between 1% and 4% in Hong Kong trading.
Xiaomi Corp. soared 10.4% to HK$16.48 after the smart phone maker reported strong demand for its electric vehicle released last week.
India Stocks Look Down, Rupee Holds Firm Near Record Low
Stocks lacked direction in Mumbai trading, and investors awaited interest rate decisions from the Reserve Bank of India on Friday.
The Sensex and the Nifty indexes traded around the flatline as investors debated future rate paths and domestic macroeconomic conditions.
The yield on 5-year Indian government bonds held stable, and the Indian rupee traded near record lows after the U.S. dollar edged higher against major international currencies.
The Sensex index increased 0.04% to 74,044.45, and the Nifty index edged up 0.2% to 22,490.05.
On the Mumbai stock exchange, 68 stocks traded at their 52-week highs and 12 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds held steady at 7.05%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
- Arun Goswami
- 02 Apr, 2024
- Mumbai
Stocks in Mumbai trading lacked direction and, investors debated future rate paths after crude oil prices rose to a five-month high.
The Sensex index increased 0.04% to 74,044.45, and the Nifty index edged up 0.2% to 22,490.05.
On the Mumbai stock exchange, 68 stocks traded at their 52-week highs and 12 stocks traded at their 52-week lows.
JTL Industries increased 5.2% to ₹211.50, and the pipe and tube maker said its fiscal year 2024 sales rose to a record high of 341,845 metric tons.
NMDC gained 0.1% to ₹212.90, and the iron ore mining company said its production declined 13.2% from the previous month to 4.86 million tons in March.
Jubilant Pharmova decreased 0.6% to ₹571.35 after the company received a demand of ₹228.8 crore from the Income Tax Department.
Bharat Dynamics declined 3% to ₹1,720.00, and the company said sales in the fiscal year 2024 decreased to 2,350 crore from 2,489 crore in the previous year, citing supply chain disruptions linked to the ongoing war in Ukraine and rebel attacks in Red Sea lanes.
South Indian Bank decreased 4.1% to ₹27.95, and the financial service company said gross loans in the fiscal year 2024 increased 11.4% to ₹80,337 crore and total deposits rose 11.2% to ₹1.01 lakh crore.
Indian Renewable Energy Development Agency, or Ireda, gained 5% to ₹149.75, and the financing company said total outstanding loans expanded 26.7% to ₹59,650 crore.
IIFL Finance added 0.9% to ₹348.60, and the company received approval to increase its stake in the National Stock Exchange through the purchase of ₹284.4 crore worth of stake from FIH Mauritius Investments Ltd.
Maruti Suzuki India decreased 0.04% to ₹12,564.30, and the vehicle maker said production in the fiscal year 2024 rose to 166,730 units from 154,148 units a year ago.
Anant Raj rose 2% to ₹330.55 after the residential development company confirmed the sale of ₹4,150 crore for its projects located at Sector 63 A Gurugram, Haryana.
Aditya Birla Fashion and Retail soared 14% to ₹241.15 after the retailer confirmed its plans to spinoff Madura Fashion as a separate company.
Hero Motocorp declined 2% to ₹4,578.0 and the maker of 2-wheeler vehicles said unit sales declined 5.6% to 490,415 units in March.
Total vehicle sale in the fiscal year 2024 rose 5.5% from a year ago to 5.621 million or 56.21 lakhs.
TVS Motor Company increased 0.1% to ₹2,141.50 after the maker of two-wheeler said its vehicle sales in March rose 12% to 354,592 units.
Vehicle sales in the fiscal year 2024 rose 14% to 4.2 million or 42 lakh units.
- Barry Adams
- 01 Apr, 2024
- New York City
Stocks on Wall Street lacked direction after traders returned from a three-day weekend.
Benchmark indexes struggled around the flat line after February's price consumption expenditures index met market expectations.
Moreover, construction spending eased in February from the previous month but rose in double digits from a year ago.
The U.S. Personal Consumption Expenditures Price Index in February and the alternative measure of inflation rose less than expected. The index is closely watched by the Federal Reserve to monitor how consumers react to inflation and adjust purchases.
The latest update on the index was released on Friday, and U.S. investors reacted to the data after trading resumed following the Good Friday holiday.
The widely followed stock market indexes advanced in the first quarter, and the S&P 500 index gained 10.2%, its best quarterly performance in five years.
The Nasdaq Composite advanced 9.1%, and the Dow Jones Industrial Average added 5.6%.
Investors have been bidding up stocks in the hopes that central banks around the world are laying the groundwork for possible rate cuts in the second half as inflation continues to soften.
A week ago, the US, the UK, and Norway held their policy rates, but Switzerland bucked the trend and led other central banks by lowering rates by 25 basis points.
This week investors are looking ahead to the release of the Job Openings and Labor Turnover Survey report on Tuesday, the ADP’s private sector employment update on Wednesday, and the nonfarm payrolls report on Friday.
PCE Price Index Slows But Stays Elevated
The PCE price index rose 2.5% from a year ago and advanced 0.3% from the previous month, the U.S. Bureau of Economic Analysis reported Friday.
The index accelerated to an annual rate of 2.5% from 2.4% and slowed to 0.3% monthly from 1.0% in the previous month, respectively.
The core rate, which excludes volatile food and energy prices, rose at a slower pace of 2.8% from the 2.9% rate in January.
Construction Spending Edges Lower
Construction spending in February decreased by 0.3% from the previous month but soared by 10.7% from a year ago, the U.S. Census Bureau reported Monday.
Total construction spending eased to an annual pace of $2.091 trillion, up from $2.096 trillion.
Private construction was unchanged from the previous month but rose 9% from a year ago to $1.6 trillion, and public construction spending edged down 1.2% from the previous month but rose 16.8% to an annual pace of $474.4 billion.
Of the private construction spending, residential construction spending increased 0.7% from the previous month or rose 6.3% from a year ago to $901 billion.
U.S. Indexes and Yields
The S&P 500 index decreased 0.3% to 5,237.58, and the Nasdaq Composite fell 0.1% to 16,368.48.
The yield on 2-year Treasury notes increased to 4.62%, 10-year Treasury notes inched down to 4.21%, and 30-year Treasury bonds edged up to 4.37%.
WTI crude oil increased $1.26 to $84.39 a barrel, and natural gas prices increased 9 cents to $1.84 a thermal unit.
Gold jumped to a record high on the hopes that the U.S. Federal Reserve is more likely to lower interest rates after the release of the weaker-than-expected PCE Price Index.
Moreover, elevated geopolitical tensions in the Middle East and the ongoing war in Ukraine contributed to market anxieties.
Gold increased by $9.88 to $2,241.81 an ounce, and silver rose 8 cents to $25.05.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 105.03.
Indexes In Japan and China Diverge After Factory Activities Updates
Stock markets in Asia lacked momentum amid thin trading as investors in Japan confronted weak economic data, but factory activities rose more than expected in China.
Investors also reviewed the U.S. Personal Consumption Expenditures Price Index in February, and the alternative measure of inflation watched by the Federal Reserve rose less than expected.
Nikkei 225 Drops 1% Amid Weak Key Economic Reports
Benchmark indexes in Tokyo headed lower and extended losses after the Bank of Japan showed a decline in sentiment among large manufacturers.
The quarterly Tankan survey showed that sentiment among large manufacturers eased to +11 in the first quarter from an upwardly revised +13 in the fourth quarter, while the manufacturing outlook for the second quarter points to a further slowdown to +10.
The weakness in the outlook was due to the shut-down of automobile manufacturing plants.
The au Jibun Bank Japan Manufacturing PMI was confirmed at 48.2% in March, following the final reading of 47.2 in February, which was the lowest level since August 2020, according to S&P Global.
The private survey showed that factory activities contracted for the tenth month in a row, but the decline was the smallest since November, amid softer declines in output and new orders falling at the slowest pace in five months.
Nonetheless, factory activities continued to shrink amid global macroeconomic headwinds and continued supply chain disruptions in the Red Sea and Panama Canal.
The Nikkei 225 stock average decreased 1.1% to 39,920.18, and the Topix index dropped 1.5% to 39,920.18.
Stocks declined in a broad-based sell-off, and technology, financial services providers, and diversified conglomerates led the decliners.
SoftBank, Screen Holdings, Advantest, Tokyo Electron, and Disco Holdings dropped between 1.5% and 4%.
Mitsubishi UFJ, Mizuho Financial Group, and Sumitomo Mitsui are around 3.5%.
Marubeni, Itochu, Mitsui & Company, Mitsubishi Corp., and Sumitomo declined between 1.3% and 3.0%.
China Manufacturing Activities Expanded Fifth Consecutive Month
Chinese stocks jumped and benchmark indexes advanced the most in a month after a private survey showed China's manufacturing activities rose at a faster-than-expected pace in March.
The Caixin China General Manufacturing PMI was 51.1 in March, higher than 50.9 in February.
The 50-level mark separates growth from contraction, and activities expanded for the fifth month in a row and reached their highest level since February 2023.
The CSI 300 index jumped 1.5% to 3,589.29, and financial markets in Hong Kong were closed for a public holiday.
Foreign Investors Increase Exposure to Chinese stocks
Stocks also powered ahead after the data from exchanges showed that foreign investors purchased $11.5 billion of mainland stocks in the last two months.
Funds controlled by foreign investors purchased 22 billion yuan, or $3 billion, of stocks in March, following the purchase of 60.7 billion yuan in February, according to Stock Connect data.
Foreign investors have been selling mainland China stocks for six months in a row between August and January due to the protracted property market malaise, weak consumer confidence, and fragile economic recovery after the ending of zero COVID restrictions.
BYD added 3.8% to 210.70 yuan, CATL gained 4% to 197.96 yuan, Ganfeng Lithium Group advanced 7.7% to 39.15 yuan, and Tianqi Lithium added 4.8% to 50.27 yuan.
India Stocks Advance Ahead of Rate Decision
Stocks in Mumbai advanced amid thin trading in Asia and positive international sentiment.
The Sensex and the Nifty indexes gained more than 0.7%, and the yield on Indian government bonds held steady in the hopes that the Reserve Bank of India would hold its benchmark rate later in the week.
Market sentiment was positive, and metals stocks advanced after a private survey showed China's manufacturing activities rose at a faster-than-expected pace in March.
The Sensex index increased 0.7% to 74,213.44, and the Nifty index edged up 0.8% to 22,519.55.
On the Mumbai stock exchange, 95 stocks traded at their 52-week highs and 37 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds decreased to 7.05%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
Prestige Estates Projects jumped 4% to ₹1,217.60 after the company struck an investment partnership with the Abu Dhabi Investment Authority and funds controlled by Kotak Mahindra.
NHPC rose 0.5% to ₹89.30, and the company secured a loan of 20 billion yen from a Japan-controlled investment company for the construction of a power plant in Manipur.
- Barry Adams
- 01 Apr, 2024
- New York City
Benchmark stock indexes edged higher in early trading after investors reacted for the first time to the release of an alternative measure of inflation on Friday.
The U.S. Personal Consumption Expenditures Price Index in February and the alternative measure of inflation watched by the Federal Reserve rose less than expected.
The latest update on the index was released on Friday, and U.S. investors reacted to the data after trading resumed following the Good Friday holiday.
The PCE price index rose 2.5% from a year ago and advanced 0.3% from the previous month, the U.S. Bureau of Economic Analysis reported Friday.
The index accelerated to an annual rate of 2.5% from 2.4% and slowed to 0.3% monthly from 1.0% in the previous month, respectively.
The core rate, which excludes volatile food and energy prices, rose at a slower pace of 2.8% from the 2.9% rate in January.
The widely followed indexes advanced in the first quarter, and the S&P 500 index gained 10.2%, its best quarterly performance in five years.
The Nasdaq Composite advanced 9.1%, and the Dow Jones Industrial Average added 5.6%.
Investors have been bidding up stocks in the hopes that central banks around the world are laying the groundwork for possible rate cuts in the second half as inflation continues to soften.
A week ago, the US, the UK, and Norway held their policy rates, but Switzerland bucked the trend and led other central banks by lowering rates by 25 basis points.
This week investors are looking ahead to the release of the Job Openings and Labor Turnover Survey report on Tuesday, the ADP’s private sector employment update on Wednesday, and the nonfarm payrolls report on Friday.
The construction spending report for February is scheduled to be released later today.
U.S. Indexes and Yields
The S&P 500 index increased 0.08% to 5,269.37, and the Nasdaq Composite rose 0.36% to 16,441.28.
The yield on 2-year Treasury notes increased to 4.62%, 10-year Treasury notes inched down to 4.21%, and 30-year Treasury bonds edged up to 4.37%.
WTI crude oil increased $0.22 to $82.90 a barrel, and natural gas prices decreased 1 cent to $1.74 a thermal unit.
Gold jumped to a record high on the hopes that the U.S. Federal Reserve is more likely to lower interest rates after the release of the weaker-than-expected PCE Price Index.
Moreover, elevated geopolitical tensions in the Middle East and the ongoing war in Ukraine contributed to market anxieties.
Gold increased by $14.94 to $2,247.51 an ounce, and silver rose 4 cents to $25.01.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 104.53.
- Li Chen
- 01 Apr, 2024
- Hong Kong
Stock markets in Asia lacked momentum amid thin trading as investors in Japan confronted weak economic data, but factory activities rose more than expected in China.
Investors also reviewed the U.S. Personal Consumption Expenditures Price Index in February, and the alternative measure of inflation watched by the Federal Reserve rose less than expected.
The latest update on the index was released on Friday, and the U.S. market will react to the data for the first time on Monday after trading resumes following the Good Friday holiday.
The PCE price index rose 2.5% from a year ago and advanced 0.3% from the previous month, the U.S. Bureau of Economic Analysis reported Friday.
The index accelerated to an annual rate of 2.5% from 2.4% and slowed to 0.3% monthly from 1.0% in the previous month, respectively.
The core rate, which excludes volatile food and energy prices, rose at a slower pace of 2.8% from the 2.9% rate in January.
Nikkei 225 Drops 1% Amid Weak Key Economic Reports
Benchmark indexes in Tokyo headed lower and extended losses after the Bank of Japan showed a decline in sentiment among large manufacturers.
The quarterly Tankan survey showed that sentiment among large manufacturers eased to +11 in the first quarter from an upwardly revised +13 in the fourth quarter, while the manufacturing outlook for the second quarter points to a further slowdown to +10.
The weakness in the outlook was due to the shut-down of automobile manufacturing plants.
The au Jibun Bank Japan Manufacturing PMI was confirmed at 48.2% in March, following the final reading of 47.2 in February, which was the lowest level since August 2020, according to S&P Global.
The private survey showed that factory activities contracted for the tenth month in a row, but the decline was the smallest since November, amid softer declines in output and new orders falling at the slowest pace in five months.
Nonetheless, factory activities continued to shrink amid global macroeconomic headwinds and continued supply chain disruptions in the Red Sea and Panama Canal.
The Nikkei 225 stock average decreased 1.1% to 39,920.18, and the Topix index dropped 1.5% to 39,920.18.
Stocks declined in a broad-based sell-off, and technology, financial services providers, and diversified conglomerates led the decliners.
SoftBank, Screen Holdings, Advantest, Tokyo Electron, and Disco Holdings dropped between 1.5% and 4%.
Mitsubishi UFJ, Mizuho Financial Group, and Sumitomo Mitsui are around 3.5%.
Marubeni, Itochu, Mitsui & Company, Mitsubishi Corp., and Sumitomo declined between 1.3% and 3.0%.
China Manufacturing Activities Expanded Fifth Consecutive Month
Chinese stocks jumped and benchmark indexes advanced the most in a month after a private survey showed China's manufacturing activities rose at a faster-than-expected pace in March.
The Caixin China General Manufacturing PMI was 51.1 in March, higher than 50.9 in February.
The 50-level mark separates growth from contraction, and activities expanded for the fifth month in a row and reached their highest level since February 2023.
The CSI 300 index jumped 1.5% to 3,589.29, and financial markets in Hong Kong were closed for a public holiday.
Foreign Investors Increase Exposure to Chinese stocks
Stocks also powered ahead after the data from exchanges showed that foreign investors purchased $11.5 billion of mainland stocks in the last two months.
Funds controlled by foreign investors purchased 22 billion yuan, or $3 billion, of stocks in March, following the purchase of 60.7 billion yuan in February, according to Stock Connect data.
Foreign investors have been selling mainland China stocks for six months in a row between August and January due to the protracted property market malaise, weak consumer confidence, and fragile economic recovery after the ending of zero COVID restrictions.
BYD added 3.8% to 210.70 yuan, CATL gained 4% to 197.96 yuan, Ganfeng Lithium Group advanced 7.7% to 39.15 yuan, and Tianqi Lithium added 4.8% to 50.27 yuan.
India Stocks Advance Ahead of Rate Decision
Stocks in Mumbai advanced amid thin trading in Asia and positive international sentiment.
The Sensex and the Nifty indexes gained more than 0.7%, and the yield on Indian government bonds held steady in the hopes that the Reserve Bank of India would hold its benchmark rate later in the week.
Market sentiment was positive, and metals stocks advanced after a private survey showed China's manufacturing activities rose at a faster-than-expected pace in March.
The Sensex index increased 0.7% to 74,213.44, and the Nifty index edged up 0.8% to 22,519.55.
On the Mumbai stock exchange, 95 stocks traded at their 52-week highs and 37 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds decreased to 7.05%, and the Indian rupee held steady at ₹83.35 against the U.S. dollar.
Prestige Estates Projects jumped 4% to ₹1,217.60 after the company struck an investment partnership with the Abu Dhabi Investment Authority and funds controlled by Kotak Mahindra.
NHPC rose 0.5% to ₹89.30, and the company secured a loan of 20 billion yen from a Japan-controlled investment company for the construction of a power plant in Manipur.
- Arun Goswami
- 01 Apr, 2024
- Mumbai
Stocks in Mumbai advanced following positive international market sentiment and ahead of the Reserve Bank of India's rate decision on Friday.
The Sensex index increased 0.7% to 74,213.44, and the Nifty index edged up 0.8% to 22,519.55.
On the Mumbai stock exchange, 95 stocks traded at their 52-week highs and 37 stocks traded at their 52-week lows.
Chennai Petroleum Corporation declined 0.9% to ₹906.0, and the company board approved the cost revision for the construction of a petroleum refinery in Tamil Nadu in a joint venture with Indian Oil Corporation, Cauvery Basin Refinery, and Petrochemicals Limited.
The board approved the cost revision to ₹33,023 crore from ₹29,361 crore.
Rail Vikas Nigam dropped 1.2% to ₹252.20, and the company was deemed the lowest bidder for three rail infrastructure development projects totaling ₹148.3 crore.
Indian Oil rose 1% to ₹168.0, and the company signed an agreement to manufacture lithium ion cells in India with Panasonic Energy.
NCC jumped 3.9% to ₹241.50 after the company said it received orders worth ₹3,084 crore in March.
Torrent Power dropped 3.9% to ₹1,365.40, and the company received an order from its power distribution unit for ₹1,825 crore.
Garden Reach Shipbuilders decreased 1.4% to ₹765.90, and the company reported a record revenue of ₹3,400 crore in fiscal year 2024.
Prestige Estates Projects jumped 4% to ₹1,217.60 after the company struck an investment partnership with the Abu Dhabi Investment Authority and funds controlled by Kotak Mahindra.
NHPC rose 0.5% to ₹89.30, and the company secured a loan of 20 billion yen for the construction of a power plant in Manipur.
Veranda Learning declined 2.8% to ₹178.0, and the company acquired a 50% stake for ₹240 crore in Tapasaya Educational Institutions.
Infosys gained 1.1% to ₹1,514.75, and the technology services provider said it expects a windfall refund of ₹6,329 crore from the Income Tax Department.
- Scott Peters
- 29 Mar, 2024
- New York City
Home Depot agreed to acquire SRS Distribution as the company ramps up its offering to residential home contractors.
Home offered to pay $18.25 billion for the building supply distributor, and the deal is expected to be finalized before the end of the current financial year and funded with additional debt and cash on hand.
The company is currently owned by the private equity firms Leonard Green & Partners and Berkshire Partners.
"SRS is an industry leader with a proven track record of profitable growth across verticals," said Ted Decker, chair, president, and chief executive of Home Depot.
Home Depot has been looking to expand its offerings to professional customers who are active in building homes, providing roofing services, and carrying out large and complex renovation projects.
Professional customers are just 10% of the company's customer base, but they drive about half of the company's sales.
The specialty retailer was one of the major beneficiaries of the pandemic boom, but in the last two years, do-it-yourself activities have been shrinking as individuals focus on smaller projects while dealing with high prices.
But in the last two years, the retailer has been struggling with a slowdown in the do-it-yourself segment as individual customers shift their attention away from expensive projects.
SRS Distribution provides supplies to contractors involved in roofing, landscaping, and pool construction.
The company will assume $5.5 billion of SRS's debt and raise about $12.5 billion in a debt offering; the balance will be funded by cash on hand.
The company plans to maintain its current investment-grade rating after the debt offering.
The debt-funded transaction is expected to be dilutive to earnings per share due to amortization expenses, but accretive from a cash perspective in the first year and post-closing, excluding synergies.
The McKinny, Texas-based distribution company was founded in 2008 and generated revenue of $10 billion in 2023, or about 6% of Home Depot's sales.
employs 11,000 people, has a network of 760 stores in 47 states, and has 4,000 delivery trucks and vehicles to deliver directly to the jobsite.
Home Depot has been adding capabilities for its professional contractor space with the reacquisition of HD Supply for $8 billion in 2020, after selling the company for $10.3 billion to a group of private equity investors in 2007.
Home Depot operates 2,335 stores in the U.S., Canada, and Mexico and employs about 465,000 people as of the end of its fiscal year in late January.
The retailer confirmed that it plans to open new distribution centers in Detroit, Toronto, Los Angeles, and San Antonio and provide a wider set of products, including lumber, shingles, and insulation, to its professional customers.
- Arun Goswami
- 29 Mar, 2024
- Mumbai
Stock markets in Japan and Asia lacked momentum as most markets in the region were closed for a public holiday.
In thin trading, the benchmark indexes in Tokyo advanced as investors digested the latest batch of economic releases.
The jobless rate inched up to 2.6% in February, and the job-to-applicants ratio moderated to 1.26%, indicating tight but easing labor market conditions.
The unemployment rate increased from 2.4% in January, and the measure of unemployment rose to its highest level since last September, the labor ministry reported Friday.
In February, the number of unemployed increased by 120,000 to 1.82 million, and payrolls rose by 220,000 to 67.83 million, the Ministry of Internal Affairs and Communications said Friday.
On the inflation front, consumer price inflation in Tokyo eased in March but stayed above the Bank of Japan's target level.
Consumer prices excluding fresh food rose 2.4% in March, rising at a slower pace than 2.5% in February, according to a separate report released by the ministry.
The non-seasonally adjusted labor force participation edged up to 62.8% from 62.1% in the corresponding month a year ago.
Japan's industrial output declined 0.1% from the previous month and dropped 3.4% from a year ago in February, the Ministry of Economy, Trade, and Industry reported Friday.
Industrial production improved from a decline of 6.7% in January, the sharpest fall since May 2020, due to the continued weakness in vehicle and machinery production.
Japan's retail sales rose 4.6% from a year ago to 12.9 trillion yen and expanded from the downwardly revised increase of 2.4% in January, said the ministry in a separate report.
Commercial sales increased 3.3% to 47.8 trillion yen, and wholesale sales rose 2.9% to 34.9 trillion yen from a year ago, respectively.
The Nikkei 225 stock average added 0.4% to 40,345.11, and the Topix gained 0.6% to 40,345.11.
Tech stocks were among the leading gainers, and Tokyo Electron, Screen Holdings, Disco Corp., and Advantest rose between 1.5% and 4%.
SoftBank declined 0.9%, and Uniqlo parent Fast Retailing jumped 0.9%.
Vehicle makers traded mixed, and Toyota Motor Edged fell a fraction, but Honda Motor and Nissan Motor rose about 2%.