China's Retail Sales Growth Slowed and Property Investment Decline Deepened In November

Stock market indexes in China and Hong Kong declined in Monday's trading after a raft of mixed economic data confirmed the continuing deflationary trend. 

The Hang Seng index decreased 1.1%, and the CSI 300 index dropped 1% after retail sales growth slowed and property market investment decline deepened. 

China's annual retail sales growth in November slowed to 3.0% from 4.8% in October, the National Bureau of Statistics reported over the weekend. 

China's annual fixed-asset investment growth slowed to 3.3% this year to November from 3.3% in the period to October, the statistical bureau reported. 

Fixed-asset investment has been slowing from the peak of 4.5% in March, amid weak earnings growth and persistent worries about a lack of domestic demand growth. 

Real estate investment, closely watched by investors, fell 10.4% between January and November, slightly faster than the 10.3% decline in the ten months to October. 

China's new home prices continued to slide for the 17th month in a row amid a lack of demand and worries about the health of the real estate developers. 

New home prices across the 70 largest cities in China declined 5.4% in November, slower than a nine-year low of 5.9% in the previous month. 

New home sales and prices continue to struggle, despite the Chinese authorities announcing a slew of measures to revive market activities, including lowering mortgage rates for first-time buyers. 

New home prices declined in Beijing by 5.3% compared to 4.9%, in Guangzhou by 9.1% from 10.4%, and in Shenzhen by 7.1% from 8.1% in October, respectively. 

However, new home prices rose in Shanghai by 5%, matching the rate of increase in the previous month.

China's industrial output expanded at an annual pace of 5.4% in November, driven by a faster increase in manufacturing, according to the latest update from the statistical bureau. 

Industrial output increased from 5.3% in October, after manufacturing expanded at an annual rate of 6% compared to 5.4% in October. 

In the first eleven months of the year, industrial production rose 5.8%, driven by increases in manufacturing and mining. 

China Stock Movers 

The Hang Seng index decreased 1.1% to 19,760.77, and the CSI 300 index fell 0.5% to 3,911.84. 

CNOOC Ltd. increased 0.8% to HK $17.82, and the energy exploration company agreed to sell its oil and gas assets in the Gulf of Mexico to the UK-based chemical company Ineos. 

Property developers declined after the release of the latest economic data. 

China Vanke Ltd. decreased 2.2% to HK $6.02, China Resources Land Ltd. dropped 2.5% to HK $22.85, and Longfor Group fell 4.6% to HK $10.18. 

India Movers: Aeroflex, Afcon, Dixon Technologies, Happy Forgings, Mazagon Dock, RITES, Zinka Technologies

Stock market indexes in Mumbai struggled to advance amid a cautious earnings outlook for the second half in the current financial year. 

The Sensex index decreased by 0.5% to 81,700.21, and the Nifty index declined by 0.5% to 24,641.35. 

On the Mumbai stock exchange, 270 stocks traded at their 52-week highs, and 18 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched higher to 6.79%, and the Indian rupee eased to 84.83 against the U.S. dollar.

Afcon Infrastructure Limited increased 5.1% to ₹548.95 after the company won a ₹1,007 crore project from Madhya Pradesh Metro Rail Corporation. 

Happy Forgings Ltd. decreased 0.8% to ₹1,039.55, and the company won an order to supply crankshafts for ₹140 crore. 

RITES Ltd. rose 2.7% to ₹304.30 after the company won an order from the Ministry of External Affairs for constructing an Integrated Check Post over the next five years. 

The total value of the project is estimated at ₹297.9 crore.

Aeroflex Industries declined 0.8% to ₹225.39, and the diversified flexible flow solution provider's board approved a secondary stock offering to raise as much as ₹400 crore. 

Dixon Technologies India Ltd. rose 4.2% to ₹18,740.05, and the electronics manufacturing company and China-based Vivo formed a joint venture to manufacture electronic devices, including smartphones. 

Zinka Logistics dropped 3.9% to ₹406.10 after the company said net loss in the current quarter expanded. 

Revenue in the September quarter soared to ₹98.8 crore from ₹63.4 crore, and net loss expanded to ₹270 crore from ₹47.7 crore a year ago, respectively. 

Mazagon Dock Shipbuilders rose 2.7% to ₹4,996.05, and the company clarified that the recent news about the company winning six submarine contracts from the Indian Navy 

India Movers: Aeroflex, Afcon, Dixon Technologies, Happy Forgings, Mazagon Dock, RITES, Zinka Technologies

Stock market indexes in Mumbai struggled to advance amid a cautious earnings outlook for the second half in the current financial year. 

The Sensex index decreased by 0.5% to 81,700.21, and the Nifty index declined by 0.5% to 24,641.35. 

On the Mumbai stock exchange, 270 stocks traded at their 52-week highs, and 18 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched higher to 6.79%, and the Indian rupee eased to 84.83 against the U.S. dollar.

Afcon Infrastructure Limited increased 5.1% to ₹548.95 after the company won a ₹1,007 crore project from Madhya Pradesh Metro Rail Corporation. 

Happy Forgings Ltd. decreased 0.8% to ₹1,039.55, and the company won an order to supply crankshafts for ₹140 crore. 

RITES Ltd. rose 2.7% to ₹304.30 after the company won an order from the Ministry of External Affairs for constructing an Integrated Check Post over the next five years. 

The total value of the project is estimated at ₹297.9 crore.

Aeroflex Industries declined 0.8% to ₹225.39, and the diversified flexible flow solution provider's board approved a secondary stock offering to raise as much as ₹400 crore. 

Dixon Technologies India Ltd. rose 4.2% to ₹18,740.05, and the electronics manufacturing company and China-based Vivo formed a joint venture to manufacture electronic devices, including smartphones. 

Zinka Logistics dropped 3.9% to ₹406.10 after the company said net loss in the current quarter expanded. 

Revenue in the September quarter soared to ₹98.8 crore from ₹63.4 crore, and net loss expanded to ₹270 crore from ₹47.7 crore a year ago, respectively. 

Mazagon Dock Shipbuilders rose 2.7% to ₹4,996.05, and the company clarified that the recent news about the company winning six submarine contracts from the Indian Navy 

Broadcom Inc. soared 17.5% to $212.36 after the advanced semiconductor chipmaker reported better-than-expected fiscal fourth quarter earnings. 

Total revenue in the fourth quarter soared 51% to $14.1 billion from $9.3 billion, net income advanced to $4.3 billion from $3.5 billion, and diluted earnings per share rose 90 cents from 83 cents a year earlier. 

"Broadcom's fiscal year 2024 revenue grew 44% year-over-year to a record $51.6 billion, as infrastructure software revenue grew to $21.5 billion, on the successful integration of VMware," said Hock Tan, President and CEO. 

"Semiconductor revenue was a record $30.1 billion, driven by AI revenue of $12.2 billion. AI revenue, which grew 220 percent year-on-year, was driven by our leading AI XPUs and Ethernet networking portfolio," added Tan. 

The company guided fiscal first quarter revenue of $14.6 billion and estimated adjusted operating earnings of 66% of projected revenue, indicating rising operating margin because of the sale of higher-value chips. 

The company declared a quarterly cash dividend of 59 cents per share payable on December 31 to shareholders on record on December 23. 

In the previous quarter, the chipmaker reported lukewarm revenue when adjusted for the purchase of VMware. 

Consolidated revenue in the third quarter, including the latest acquisition of VMware, soared 47% to $13.1 billion from $8.9 billion, and excluding VMware, it rose 4% from a year ago, respectively. 

Net income swung to a loss of $1.9 billion from a profit of $3.3 billion, and diluted earnings per share were a loss of 40 cents compared to a profit of 77 cents a year earlier. 

RH jumped 13.5% to $432.99 after the home furnishing company lifted its fourth quarter and full-year outlook. 

The retailer estimated revenue in the fourth quarter to rise between 18% and 20% and in the full year to advance between 6.8% and 7.2%. 

Revenue in the third quarter ending on November 2 increased to $811.7 million from $751.2 million, net income swung to a profit of $33.2 million from a loss of $2.2 million, and diluted earnings per share were $1.66 compared to a loss of 12 cents a year earlier. 

Adobe Inc. dropped 10.6% to $491.50 after the software company issued a weaker-than-expected revenue outlook for the fiscal first quarter. 

Total revenue in the fiscal fourth quarter ending in November increased to $5.6 million from $5.0 million, net income rose to $1.68 million from $1.48 million, and diluted earnings per share advanced to $3.79 from $3.23 a year earlier. 

The company estimated fiscal first quarter revenue to range between $5.63 billion and $5.68 billion and earnings per share between $3.85 and $3.89. 

Chewy Inc. decreased 3.3% to $31.44 after the company announced a fully underwritten stock offering of $500 million by a key shareholder. 

Buddy Chester Sub LLC will receive all proceeds from the offering, and concurrently Chewy said it plans to acquire $50 million of its share directly from the investor. 

Dave & Buster's Entertainment plunged 16.7% to $30.77 after the arcade and dining venue operator reported a loss and announced the departure of the company's chief executive. 

Revenue in the third quarter decreased 3% to $453 million, driven by a 7% decline in comparable sales from a year ago. 

Net loss expanded to $32.7 million from $5.2 million, and diluted earnings per share rose to 84 cents from 12 cents a year ago, respectively. 

The company's chief executive, Chris Morris, has resigned, and the current chairman of the board, Kevin Sheehan, is acting as the interim chief executive until a permanent chief executive has been appointed. 

During the third quarter, the company repurchased $28 million of shares, bringing its total repurchases year to date to $88 million, representing 2 million shares or 5.1% of the outstanding shares as of the end of fiscal 2023. 

The company has $112 million remaining on its share repurchase authorization. 

Macy's declined 10.5% to $14.92 after the department store chain cut its full-year earnings estimate. 

The company lowered its adjusted earnings per share to range between $2.25 and $2.50 from the previous estimate between $2.55 and $2.90. 

However, the company revised its full-year sales to fall between $22.3 billion and $22.5 billion from the previous estimate between $22.1 billion and $22.4 billion. 

GE Vernova Inc. increased 2.7% to $336.37 after the company released its full-year outlook for 2024 and 2025. 

The company estimated revenue in 2024 closer to the upper end of its range between $34 billion and $35 billion and in 2025 to range between $36 billion and $37 billion. 

Free cash flow in 2024 is expected to trend closer to the range between $1.3 billion and $1.7 billion and in 2025 to range between $2.0 billion and $2.5 billion. 

Uber Technologies rose 3% to $63.03, and investors worried about the company's alliance with General Motors after the vehicle maker scrapped its plans to continue to fund the robotaxi venture Cruise. 

Cruise has a multi-year contract with Uber to introduce autonomous vehicles on the Uber platform; however, after the GM's announcement, the future of that contract is in doubt. 

General Motors advanced 0.7% to $53.55 after the company canceled its plan to stop funding self-driving technology by car company Cruise. 

 

 

Vail Resorts jumped 4% to $198.50 after the ski resort operator reported quarterly results. 

Revenue in the fiscal first quarter ending in October increased to $260.3 million from $258.6 million, net loss shrank to $172.8 million from $175.5 million, and diluted loss per share edged up to $4.61 from $4.60 a year ago. 

For the fiscal year 2025, the company revised its estimate of operating earnings to range between $240 million and $316 million from $224 million to $300 million. 

The company declared a cash dividend of $2.22 per share, payable on January 9 to shareholders on record on December 26. 

MongoDB declined 7.4% to $325.50 after the database developer lifted its outlook for the fourth quarter. 

Total revenue in the third quarter increased 22% to $529.4 million, net loss shrank to $9.8 million from $29.3 million, and diluted loss per share eased to 13 cents from 41 cents a year ago. 

The company estimated fourth quarter revenue to range between $515 million and $519 million, adjusted operating income between $55 million and $58 million, and adjusted earnings per share between 62 cents and 65 cents. 

Oracle Corp. dropped 6.5% to $178.06 after the database developer and cloud services provider reported strong revenue growth in the fiscal second quarter, but earnings fell short of expectations. 

Total revenue in the quarter increased 9% to $14.1 billion, driven by a 24% surge in cloud service revenue of $5.9 billion. 

Net income jumped 26% to $3.2 billion from $2.5 billion, and diluted earnings per share advanced to $1.10 from 89 cents a year ago. 

The company's board of directors declared a cash dividend of 40 cents per share payable on January 23 to shareholders on record on January 9.