- Scott Peters
- 01 Feb, 2024
- New York City
Qualcomm declined 1.8% to $145.83 after the chipmaker reported better-than-expected fiscal first quarter revenue and the company's current quarter sales outlook fell short of expectations.
Revenue in the quarter increased 5% to $9.9 billion from $9.5 billion, net income increased by 24% to $2.7 billion from $2.2 billion, and diluted earnings per share advanced to $2.46 from $1.98 a year ago.
During the first quarter, the company returned $1.7 billion to stockholders, including $895 million, or $0.80 per share, of cash dividends paid and $784 million through repurchases of 6 million shares of its common stock.
The company estimated revenue in the fiscal second quarter between $8.9 billion and $9.7 billion and diluted earnings per share between $1.73 and $1.93.
Align Technology soared 12.2% to $300.0 after the orthodontics company reported better-than-expected sales and earnings in its latest quarter.
Revenue in the fourth quarter increased 6.1% to $956.7 million from $901.5 million, net income soared three-fold to $124.0 million from $41.8 million, and diluted earnings per share rose to $1.64 from 54 cents a year ago.
The company guided first quarter revenue between $960 million and $980 million and estimated 2024 total revenues to be "up mid-single digits over 2023."
Wolfspeed declined 4.5% to $31.0 after the company's fiscal third-quarter revenue fell short of market expectations.
Revenue in the fiscal second quarter ending in December increased to $208.4 million from $173.8 million; net loss expanded to $144.7 million from $90.9 million; and diluted loss per share rose to $1.15 from 73 cents a year ago.
The company estimated fiscal third quarter revenue between $185 million and $215 million, net loss from continuing operations between $134 million and $155 million, and diluted loss per share between $1.07 and $1.23.
Honeywell International declined 2.6% to $197.01 after the company announced mixed quarterly results.
Sales in the fiscal fourth quarter increased 3% to $9.4 billion from $9.2 billion, net income increased $1.3 billion from $1.0 billion, and diluted earnings per share rose to $1.91 from $1.51 a year ago.
The aerospace and building technology company estimated 2024 revenue between $38.1 billion and $38.9 billion and free cash flow between $5.6 billion and $6.0 billion.
- Barry Adams
- 01 Feb, 2024
- New York City
Stocks rebounded following a sharp decline in the previous session after Federal Reserve Chairman Powell said interest rate cuts in March were not likely.
The S&P 500 index and the Nasdaq Composite advanced more than 0.3% in early trading after investors reassessed their interest rate outlook after the Federal Reserve held its key lending rate for the fourth time in a row.
In Wednesday's trading the S&P 500 index declined 1.6% and the Nasdaq Composite dropped 2.2%.
Investors sold high-growth and tech stocks after Chairman Powell stressed that higher rates are needed until solid evidence emerges that inflation is on a sustained path to the target rate of 2%.
However, Chairman Powell left the door open for a rate cut later in the year but did not provide a specific timeline.
U.S. Indexes and Yields
The S&P 500 index increased 0.5% to 4,895.43, and the Nasdaq Composite rose 0.7% to 15,195.03.
The yield on 2-year Treasury notes decreased to 4.23%. 10-year Treasury notes declined to 3.99%, and 30-year Treasury bonds edged down to 4.19%.
WTI crude oil increased $0.70 to $76.55 a barrel, and natural gas prices increased 3 cents to $2.12 a thermal unit.
Gold decreased by $4.03 to $2,033.17 an ounce and extended the previous week's gains after the U.S. dollar drifted slightly lower in international trading.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged lower to 103.62.
U.S. Stock Movers
Qualcomm declined 1.8% to $145.83 after the chipmaker reported better-than-expected fiscal first quarter revenue.
Revenue in the quarter increased 5% to $9.9 billion from $9.5 billion, net income increased by 24% to $2.7 billion from $2.2 billion, and diluted earnings per share advanced to $2.46 from $1.98 a year ago.
During the first quarter, the company returned $1.7 billion to stockholders, including $895 million, or $0.80 per share, of cash dividends paid and $784 million through repurchases of 6 million shares of its common stock.
The company estimated revenue in the fiscal second quarter between $8.9 billion and $9.7 billion and diluted earnings per share between $1.73 and $1.93.
Align Technology soared 12.2% to $300.0 after the orthodontics company reported better-than-expected sales and earnings in its latest quarter.
Revenue in the fourth quarter increased 6.1% to $956.7 million from $901.5 million, net income soared three-fold to $124.0 million from $41.8 million, and diluted earnings per share rose to $1.64 from 54 cents a year ago.
The company guided first quarter revenue between $960 million and $980 million and estimated 2024 total revenues to be "up mid-single digits over 2023."
Wolfspeed declined 4.5% to $31.0 after the company's fiscal third-quarter revenue fell short of market expectations.
Revenue in the fiscal second quarter ending in December increased to $208.4 million from $173.8 million; net loss expanded to $144.7 million from $90.9 million; and diluted loss per share rose to $1.15 from 73 cents a year ago.
The company estimated fiscal third quarter revenue between $185 million and $215 million, net loss from continuing operations between $134 million and $155 million, and diluted loss per share between $1.07 and $1.23.
- Inga Muller
- 01 Feb, 2024
- Frankfurt
Benchmark indexes across Europe lacked direction, and Sweden maintained its lending rate at 4.0%.
The Bank of England is widely expected to hold its key lending rate steady at 5.25%.
The DAX index decreased 0.3% to 16,850.10, the CAC-40 index fell 0.8% to 7,599.65, and the FTSE 100 index inched higher by 0.4% to 7,658.88.
The yield on 10-year German bonds edged down to 2.20%; French bonds inched higher to 2.70%; the UK gilts edged lower to 3.82%; and Italian bonds inched lower to 3.77%.
BNP Paribas declined 8.2% to €57.51 after the French lender reported a decline in pre-tax income in the fourth quarter to €1.47 billion from €2.79 billion a year ago.
Adidas dropped 5.8% to €165.82 after the German sportswear maker's operating earnings guidance fell short of expectations.
Deutsche Bank added 4.4% to €12.56 after the German lender said it plans to increase shareholder payouts by 50% and announced a plan to cut 3,500 jobs.
Sanofi SA declined 2.3% to €91.16 after the global pharmaceutical company headquartered in Paris, France, reported weaker-than-expected fourth-quarter earnings.
Glencore PLC gained 1.9% to 428.55 pence, despite the resource company reporting a decline in production volumes of cobalt, nickel, and copper.
The mining company also signaled additional declines in production volumes in the current year.
Stora Enso declined 3.9% to €11.25 after the Finnish pulp and paper company reported a sharp fall in the fourth quarter and annual profit.
Shell PLC rose 3.3% to 2,520.50 after the energy explorer and distributor reported full-year earnings ahead of market expectations.
Ricardo plc increased 1.7% to 434.25 pence after the environmental consulting company reiterated its full-year earnings outlook.
- Bridgette Randall
- 01 Feb, 2024
- Frankfurt
In cautious trading, stocks in Europe edged slightly lower, but market indexes hovered near record highs.
Benchmark indexes in Frankfurt, Paris, and London traded in a tight range, and investors reviewed the monetary policy decisions in Sweden and the U.S.
The Swedish central bank, Riskbank, maintained its key policy rate at 4.0%, meeting market expectations.
The central bank noted that restrictive rates are having an impact on inflation, but prices are still rising at a faster-than-expected pace. Higher rates are needed to stabilize inflation at lower levels.
The Bank of England is widely expected to hold its key rate at a 16-year high of 5.25%, and the central bank is expected to reiterate its commitment to bringing down inflation to its target level.
The U.S. Federal Reserve held its key lending rate range for the fourth time between 5.25% and 5.50% and clarified that interest rates are not likely to be trimmed in the immediate future, dashing hopes of a rate cut at the end of the next policy meeting in March.
Eurozone Inflation Slowed
The Eurozone inflation rate decreased to 2.8% in January from 2.9% in the previous month, Eurostat reported Thursday.
The core rate of inflation, which excludes food and energy prices, slowed to 3.3% and dropped to the lowest level since March 2022.
The decline in overall inflation was driven by the fall in energy inflation to 6.3% from 6.7% in the previous month, and food, alcohol, and tobacco inflation eased to 5.7% from 6.1%.
On a monthly basis, overall consumer prices declined by 0.4% in the month after rising by 0.2% in the previous month.
Euro Area Jobless Rate Held Steady
Despite the sharp jump in interest rates and global market uncertainties, the labor market in the Euro Area has remained resilient.
The seasonally adjusted unemployment rate in the Euro Area held steady at 6.4% in December, Eurostat reported in a separate report on Thursday.
The number of individuals seeking jobs decreased by 17,000 to 10.909 million, but the jobless rate varied widely across the region.
The youth jobless rate, tracking applicants younger than 25 years and seeking jobs, decreased to 14.4% from 14.5% in November.
Spain led the jobless rate in the currency union with 11.7%, followed by France with 7.3% and Italy with 7.2%.
Germany reported the lowest jobless rate of 3.1% in the Euro Area.
Europe Indexes and Yields
The DAX index decreased 0.3% to 16,850.10, the CAC-40 index fell 0.8% to 7,599.65, and the FTSE 100 index inched higher by 0.4% to 7,658.88.
The yield on 10-year German bonds edged down to 2.20%; French bonds inched higher to 2.70%; the UK gilts edged lower to 3.82%; and Italian bonds inched lower to 3.77%.
The euro edged lower to $1.079, the British pound inched higher to $1.264, and the U.S. dollar gained to 86.31 Swiss cents.
Brent crude decreased $0.61 to $81.16 a barrel, and the Dutch TTF natural gas decreased by €0.30 to €29.98 per MWh.
Europe Stock Movers
BNP Paribas declined 8.2% to €57.51 after the French lender reported a decline in pre-tax income in the fourth quarter to €1.47 billion from €2.79 billion a year ago.
Adidas dropped 5.8% to €165.82 after the German sportswear maker's operating earnings guidance fell short of expectations.
Deutsche Bank added 4.4% to €12.56 after the German lender said it plans to increase shareholder payouts by 50% and announced a plan to cut 3,500 jobs.
Sanofi SA declined 2.3% to €91.16 after the global pharmaceutical company headquartered in Paris, France, reported weaker-than-expected fourth-quarter earnings.
- Brian Turner
- 31 Jan, 2024
- New York City
The Federal Reserve held rates steady for the fourth time in a row at a 23-year high between 5.25% and 5.50% and reiterated its data-dependent hawkish stance.
In an unanimous decision, all twelve members of the monetary policy committee voted to hold rates steady.
The Federal Reserve pushed back against those looking for immediate rate cuts but left a door open for future rate cuts, briefly sending market indexes lower.
"The Committee does not expect it will be appropriate to reduce the target range until it has gained greater confidence that inflation is moving sustainably toward 2 percent," highlighted the accompanying statement released by the Fed.
Treasury yields inched lower after the rate announcement, as the Federal Reserve stressed that it is not ready to lower interest rates until more solid evidence emerges that indicates inflation is on a sustained path towards its target rate of 2%.