- Scott Peters
- 31 Jan, 2024
- New York City
AMD dropped 6% to $161.65 after the maker of advanced semiconductors offered a weak revenue growth outlook, disappointing some investors.
Revenue in the fourth quarter increased 10% to $6.2 billion from $5.6 billion, net income soared to $667 million from $21 million, and diluted earnings per share advanced to 41 cents from 1 cent a year ago.
For the full year 2023, the company reported revenue of $22.7 billion, net income of $854 million, and diluted earnings per share of $0.53.
For the first quarter of 2024, AMD expects revenue to be approximately $5.4 billion.
AMD expects data center segment revenue to be flat, with a seasonal decline in server sales offset by a strong data center GPU ramp.
Client, embedded, and gaming segment sales are expected to decline sequentially, with semi-custom revenue expected to decline by a significant double-digit percentage.
The company added, non-GAAP gross margin is expected to be approximately 52%.
Microsoft Corp. decreased 0.9% to $404.75 despite the software company reporting higher-than-expected quarterly earnings.
Revenue in the fiscal second quarter ending in December increased 18% to $62.02 billion, net income surged 33% to $21.9 billion from $17.4 billion, and diluted earnings per share advanced to $2.93 from $2.32 a year ago.
Revenue in the cloud segment soared 20% to $25.9 billion, personal productivity and business segment jumped 13% to $19.2 billion, and personal computing segment increased 19% to $16.9 billion.
The company returned to shareholders $8.4 billion in the form of share repurchases and dividends in the second quarter of fiscal year 2024.
Starbucks increased 3.5% to $97.45 after the company reported quarterly results.
Revenue in the fiscal first quarter ending in December rose 8.2% to $9.4 billion from $8.7 billion, net earnings rose 19.8% to $1.02 billion from $855 million, and diluted earnings per share advanced to 90 cents from 74 cents a year ago.
Global comparable store sales increased 5%, driven by a 3% increase in comparable transactions and a 2% increase in average ticket sales.
North America and U.S. comparable store sales increased 5%, driven by a 4% increase in average ticket sales and a 1% increase in comparable transactions.
The company lowered its full-year revenue outlook because of the competitive environment in its second largest market, China, and rising tensions between the U.S. and China.
Same-store sales in China increased by 10%; however, average ticket sales at stores fell by 9% as consumers avoided high-priced coffee shops.
Because of sales weakness in China, the company lowered its fiscal year sales growth to between 7% and 10%, down from the previous estimate of between 10% and 12%.
The company reiterated its full-year earnings per share growth of between 15% and 20%.
Alphabet decreased 5.5% to $144.67 after the parent company of search engine Google, reported weaker-than-expected advertising revenue in its latest quarter.
Revenue in the fourth quarter increased 13% to $86.3 billion, net income soared to $20.6 billion from $13.6 billion, and diluted earnings per share advanced to $1.64 from $1.05 a year ago.
Google search revenue increased to $48 billion from $42.6 billion, and YouTube ads jumped to $9.2 billion from $7.9 billion a year ago.
- Inga Muller
- 31 Jan, 2024
- Frankfurt
European markets inched higher and markets indexes in France and Germany hovered near record highs.
The DAX index decreased 0.1% to 16,945.48, the CAC-40 index rose 0.1% to 7,683.51, and the FTSE 100 index inched lower by 0.1% to 7,657.63.
The yield on 10-year German bonds edged down to 2.20%; French bonds inched higher to 2.69%; the UK gilts edged lower to 3.87%; and Italian bonds inched lower to 3.74%.
Atoss Software jumped 3.7% to €254.0 after the German software company reported an increase in revenue and earnings in the fiscal year 2023.
FDM Group Holdings PLC decreased 1.5% to 444.0 pence after the UK-based IT services provider reported a slight increase in its annual revenue.
Revenue for 2023 is expected to increase by 1% to £334 million from £330 million a year ago.
On a constant currency basis, revenue increased by 2%, or £7.4 million.
The number of consultants placed with clients declined by 21% to 3,892 from 4,905 in the previous year.
Banco Santander SA increased 2.4% to €3.73 after the Spanish bank estimated a higher profit in the current year.
H&M dropped 9% to SEK 151.94 after the Swedish retailer appointed a new chief executive and the company missed its operating profit estimate.
Novo Nordisk increased 0.4% to DKK 751.20 after the Danish pharmaceutical group estimated a double-digit increase in sales and operating profit growth, driven by strong demand for its diabetes drug Ozempic and weight loss drug Wegovy.
- Bridgette Randall
- 31 Jan, 2024
- Frankfurt
Market indexes across Europe lacked direction but edged higher for the sixth session in a row, and investors awaited rate decisions.
The U.S. Federal Reserve and the Bank of England are widely anticipated to hold rates steady, and policymakers are expected to reiterate their commitments to keep rates restricted to lower inflation to the target rate of 2%.
Tech stocks were under pressure after weaker-than-expected results from Microsoft, Alphabet, and AMD.
On the economic front, France's inflation dropped to a two-year low in January, Swiss retail sales decreased for the sixth month in a row in December, and the Italian jobless rate dropped to a 16-year low.
France's Inflation Fell to a 2-year Low
Consumer price inflation slowed to 3.1% from 3.7% in December, according to a preliminary report released by the statistical office INSEE on Wednesday.
This was the lowest inflation since January 2022.
The overall decline in inflation was driven by a weakness in inflation in food, energy, and manufactured products.
Food price inflation slowed to 5.7% from 7.2%, and the increase in energy slowed to 1.8% from 5.7%. Manufactured product inflation dropped to 0.7% from 1.4%.
Service inflation edged up slightly to 3.2% from 3.1%.
EU harmonized inflation also weakened in January, to 3.4% from 4.1% in December.
On a monthly basis, both consumer prices and the harmonized index of consumer prices fell 0.2%, in contrast to the 0.1% increase in December.
Inflation in the first half is likely to stay around 3.0% before slowing to 2%, but energy shipment disruptions could add another bout of inflation.
Italy's Jobless Rate Dropped to a 16-year Low
Italy's jobless rate unexpectedly dropped to 7.2% in December from a downwardly revised 7.4% in the previous month, the statistical agency ISTAT reported Wednesday.
The jobless rate fell to the lowest level in 16 years after employment picked up in the northern industrial areas.
The number of unemployed people fell by 50,000 to 1.829 million, while the number of employed individuals increased by 14,000 to 23.754 million.
Meanwhile, the youth unemployment rate for job-seekers between 15 and 24 years old fell to 20.1% in December from 20.5% in November, the lowest level since July 2007.
Europe Indexes and Yields
The DAX index decreased 0.1% to 16,945.48, the CAC-40 index rose 0.1% to 7,683.51, and the FTSE 100 index inched lower by 0.1% to 7,657.63.
The yield on 10-year German bonds edged down to 2.20%; French bonds inched higher to 2.69%; the UK gilts edged lower to 3.87%; and Italian bonds inched lower to 3.74%.
The euro edged lower to $1.082, the British pound inched higher to $1.267, and the U.S. dollar gained to 86.28 Swiss cents.
Brent crude decreased $0.78 to $81.68 a barrel, and the Dutch TTF natural gas increased by €0.68 to €30.08 per MWh.
Europe Stock Movers
Atoss Software jumped 3.7% to €254.0 after the German software company reported an increase in revenue and earnings in the fiscal year 2023.
FDM Group Holdings PLC decreased 1.5% to 444.0 pence after the UK-based IT services provider reported a slight increase in its annual revenue.
Revenue for 2023 is expected to increase by 1% to £334 million from £330 million a year ago.
On a constant currency basis, revenue increased by 2%, or £7.4 million.
The number of consultants placed with clients declined by 21% to 3,892 from 4,905 in the previous year.
Banco Santander SA increased 2.4% to €3.73 after the Spanish bank estimated a higher profit in the current year.
H&M dropped 9% to SEK 151.94 after the Swedish retailer appointed a new chief executive and the company missed its operating profit estimate.
Novo Nordisk increased 0.4% to DKK 751.20 after the Danish pharmaceutical group estimated a double-digit increase in sales and operating profit growth, driven by strong demand for its diabetes drug Ozempic and weight loss drug Wegovy.
- Arjun Pandit
- 31 Jan, 2024
- Mumbai
Markets in China were under pressure after tech stocks led another downward day after weaker-than-expected earnings from AMD and Alphabet.
However, the indexes in Japan advanced after the release of retail sales and industrial output data.
The Nikkei 225 average advanced 0.6% to 36,286.55, and tech stocks led the gainers in Tokyo trading.
Retail trade sales increased by 2.1% from a year ago to 15.5 trillion yen in December, the Ministry of Economy, Trade, and Industry said on Wednesday.
For the fourth quarter of 2023, retail sales advanced 3.8% year over year but fell 1.7% from the previous quarter to 42.989 trillion yen.
Full-year 2023 retail sales gained 5.6% to 162.996 trillion yen.
Preliminary industrial output in Japan rose a seasonally adjusted 1.8% from the previous month in December, the Ministry of Economy, Trade, and Industry said on Wednesday.
Industrial production was down 0.7% on an annual basis.
The powerful earthquake in the Noto Peninsula on New Year's Day had little impact on industrial production data.
However, the recent halt in production at the Daihatsu plant over rigged collision-safety tests is likely to negatively impact production in January, according to the ministry.
Industrial production is expected to drop 6.2% per month in January and gain 2.2% in February.
In stock trading, Tokyo Electron, Disco, Advantest, and Keyence dropped between 2% and 3% after AMD reported sharply lower-than-expected earnings.
Elsewhere in the region, the KOSPI index decreased 0.1% to 2,497.09 and the ASX 200 index added 1% to 7,680.70.
Crude Oil in Focus After Red Sea Attacks Disrupt Supply Routes
Crude oil traded higher in international markets in the hopes that demand growth will rebound in China after the government pledged more policy support to stabilize financial markets.
Middle East oil-producing nations are also offering larger discounts to refineries in India and China after the producers face difficulties in shipping through the troubled waters of the Red Sea.
Diesel exporters from India are forced to divert shipments away from Red Sea Lanes to routes along South Africa after growing attacks by the Yemen-based Houthi group on cargo ships in the Red Sea.
Freight costs have risen more than twofold and added two weeks to the shipping time to Europe from India, making imports from the U.S. more competitive.
China Stocks Slide After Manufacturing Sector Extend Weakness
Stocks in China slipped after manufacturing sector remained in contraction and service sector showed an anemic growth.
China Manufacturing PMI edged slightly higher to 49.2 in January from 49.0 in December, the National Bureau of Statistics reported Wednesday.
Factory activities shrank for the fourth month in a row, and new orders, exports, and employment declined in the month.
The data for January and February months could be volatile because of the Lunar Year celebration, which falls this year on February 10.
China Service PMI rose to 50.7 in January from 50.4 in December, reaching a four-month high and the sector expanded for the thirteenth month in a row.
The CSI 300 index decreased 0.3% to 3,235.45 and the Hang Seng Index dropped 1.3% to 15,508.52.
The Hang Seng index dropped 7.6% in the month, the worst monthly decline since the fall of 9.6% in February.
Alibaba Group, Meituan, Baidu, Tencent, and JD.com dropped between 2% and 2.5%.
Henderson Land Development, Sun Hung Kai, and New World Development fell between 3% and 5%.
Broad Rally Lifts India Indexes Ahead of Union Budget
Stocks in Mumbai advanced, and bond yields and the rupee held firm ahead of the release of the budget by the finance ministry.
The Sensex and the Nifty index gained more than 0.3% as investors added positions in banks, oil refiners and distributors, and infrastructure developers.
Sustained buying by foreign and domestic investors supported the rebound in stocks a day after indexes dropped more than 1%.
The Sensex index increased 258.61 points to 71,397.30, and the Nifty index rose 74.60 points to 21,596.70.
On the Mumbai stock exchange, 248 stocks traded at their 52-week highs and 14 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.16%, and the Indian rupee held steady at ₹83.13 against the U.S. dollar.
Larsen & Toubro declined 1.9% to ₹3,639.85 after the infrastructure construction company estimated new order weakness in the next two quarters due to the Lok Sabha elections.
Revenue in the December quarter jumped 18.8% to ₹55,128 crore, and net income advanced 15.5% to ₹2,947 crore from ₹2,553 crore a year ago.
New orders in the quarter rose to ₹75,990 crore, driven by a 29% jump in international orders and a 44% decline in domestic orders.
Total order backlog soared to ₹4.69 lakh crore, or trillion, of which international orders are 29%, at the end of the quarter.
Dr. Reddy's Laboratories declined 0.2% to ₹5,835.0 after the generic pharmaceuticals maker reported a rise in sales and earnings in its latest quarter.
Revenue in the December quarter increased 7% to ₹7,215 crore, and net income jumped 11% to ₹1,379 crore from a year ago, respectively.
- Arun Goswami
- 30 Jan, 2024
- Mumbai
Voltas declined 2% to ₹1,020.0 after the home appliance maker reported a loss in its latest quarter.
Consolidated revenue in the December quarter rose 31% to ₹2,626 crore, and net loss narrowed to ₹27.6 crore from ₹110.5 crore a year ago.
Larsen & Toubro declined 1.9% to ₹3,639.85 after the infrastructure construction company estimated new order weakness in the next two quarters due to the Lok Sabha elections.
Revenue in the December quarter jumped 18.8% to ₹55,128 crore, and net income advanced 15.5% to ₹2,947 crore from ₹2,553 crore a year ago.
New orders in the quarter rose to ₹75,990 crore, driven by a 29% jump in international orders and a 44% decline in domestic orders.
Total order backlog soared to ₹4.69 lakh crore, or trillion, of which international orders are 29%, at the end of the quarter.
SRF decreased 0.8% to ₹2,227.75 after the intermediate chemicals maker reported a sharp decline in profit in its latest quarter.
Net profit in the December quarter dropped 50% to ₹253.4 crore from ₹511 crore a year ago.
Coromandel International plunged 7.7% to ₹1,050.0 after the crop protection fertilizer maker reported a sharp decline in its quarterly profit.
Consolidated net profit in the December quarter plunged 57% to ₹228 crore from ₹527 crore a year ago.
Petronet LNG rose 1.9% to ₹268.0 after the LNG importer and terminal operators reported a slight increase in profit in its latest quarter.
Consolidated profit in the December quarter increased 1.2% from a year ago to ₹1,903 crore.
PB Fintech gained 0.8% to ₹907.60 after the online marketplace for insurance products swung to a profit in its latest quarter.
Revenue in the December quarter rose 43% to ₹871 crore and swung to a net income of ₹37 crore from ₹87 crore a year ago.
Dr. Reddy's Laboratories declined 0.2% to ₹5,835.0 after the generic pharmaceuticals maker reported a rise in sales and earnings in its latest quarter.
Revenue in the December quarter increased 7% to 7,215 crore, and net income jumped 11% to 1,379 crore from a year ago, respectively.
- Barry Adams
- 30 Jan, 2024
- New York City
Market indexes on Wall Street danced around flatline as investors reviewed the latest batch of quarterly results and looked ahead to the Federal Reserve's monetary policy announcement.
The S&P 500 index and the Nasdaq Composite traded around flatline, and investors reacted to quarterly results from General Motors, UPS, JetBlue, and Whirlpool.
After the close, Alphabet, Microsoft, and AMD are scheduled to announce their results.
The SP 500 index and the Dow Jones Industrial Average closed at new record highs in the previous session.
The Federal Reserve is set to announce its monetary policy decision at the end of the two-day meeting on Wednesday.
Investors are anticipating that the Federal Reserve will hold rates and are looking forward to the central bank's guidance about the rate path.
The latest Job Openings and Labor Turnover report showed an unexpected increase in job openings, suggesting persistent tight labor market conditions.
U.S. Job Openings Expanded In December
The number of job openings rose by 101,000 in December 2023 from the previous month to 9.026 million, the U.S. Bureau of Labor Statistics reported Tuesday.
Job openings rose to a three-month high, driven by an increase of 239,000 in professional and business services but a decrease of 83,000 in wholesale trade.
Job openings, not evenly distributed, rose in the South by 115,000 and the Northeast by 12,000, but declined in the Midwest by 22,000, and the West by 4,000.
Over the month, the number of hires and total separations were little changed, at 5.6 million and 5.4 million, respectively.
Within separations, quits totaled 3.4 million, and layoffs and discharges were 1.6 million, and both changed little from the previous month.
U.S. Indexes and Yields
The S&P 500 index decreased 0.02% to 4,924.33, and the Nasdaq Composite declined 0.7% to 15,522.54.
The yield on 2-year Treasury notes decreased to 4.32%. 10-year Treasury notes declined to 4.07%, and 30-year Treasury bonds edged down to 4.30%.
WTI crude oil decreased $1.22 to $78.04 a barrel, and natural gas prices increased 1 cent to $2.06 a thermal unit.
Gold increased by $3.07 to $2,035.56 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 103.48.
U.S. Stock Movers
General Motors jumped 7.5% to $38.03 after the company reported better-than-expected quarterly earnings on flat sales in the fourth quarter.
Sales in the quarter edged slightly lower to $42.98 billion from $43.11 billion, net income edged higher to $2.1 billion from $2.0 billion, and earnings per share rose to $1.59 from $1.39 a year ago.
The company reiterated its commitment to electric vehicles and confirmed that adoption of the advanced vehicle has been slower than anticipated.
Despite the near-term sales challenges, General Motors plans to build a production capacity of one million electric vehicles by 2025.
JetBlue Airways declined 1.1% to $5.44 after the company reported a loss in the latest quarter.
Revenue in the fourth quarter decreased 3.7% to $2.3 billion, net income swung to a loss of $124 million from a profit of $24 million, and diluted earnings per share were $0.31 from 7 cents a year ago.
UPS declined 6.9% to $147.20 after the package delivery company reported mixed quarterly results and the company's outlook fell short of market expectations.
European Markets Close at New Record Highs
European market indexes inched higher in record territory as investors digested a fresh batch of corporate results.
The Euro Area barely avoided a technical recession after stalling in the fourth quarter of 2023 as consumer spending remained restrained amid elevated interest rates and high inflation.
Market indexes in Frankfurt and Paris jumped to new record highs, and the benchmark index in London edged higher in Tuesday's trading.
The Euro Area Barely Avoids Recession
The Euro Area economy struggled in the final quarter of 2023 after larger member nations showed little growth, the statistical agency Eurostat reported Tuesday.
The eurozone GDP in the December quarter stalled following a 0.1% contraction, narrowly avoiding a technical recession in the currency union.
The economies of Spain expanded by 0.6%, Portugal by 0.8%, Italy by 0.2%, and Belgium by 0.4%.
However, the economy of Spain stalled, and Germany contracted by 0.3%.
In full-year 2023, the eurozone economy expanded by 0.5%, despite the aggressive rate hike campaign and multi-year high inflation.
Spain's Inflation Accelerated
Spain's overall inflation unexpectedly accelerated in January, the National Statistics Institute reported Tuesday.
Inflation increased to an annual pace of 3.4% in January from 3.1% in the previous month, driven by a higher rate of electricity.
On a monthly basis, Spain's consumer price index edged up 0.1%.
The core rate of inflation, which excludes food and energy, eased for the sixth month in a row to 3.6% from 3.8% in the previous month and fell to the lowest level since March 2022.
Spain's EU harmonized annual inflation rate edged higher to 3.5% from 3.3% in each of the previous two months.
Europe Indexes and Yields
The DAX index increased 0.2% to 16,972.34, the CAC-40 index rose 0.5% to 7,677.47, and the FTSE 100 index inched higher by 0.4% to 7,666.41.
The yield on 10-year German bonds edged down to 2.24%; French bonds inched higher to 2.74%; the UK gilts edged lower to 3.87%; and Italian bonds inched lower to 3.75%.
The euro edged lower to $1.082, the British pound inched higher to $1.268, and the U.S. dollar gained to 86.30 Swiss cents.
Brent crude increased $0.82 to $82.65 a barrel, and the Dutch TTF natural gas increased by €1.22 to €29.39 per MWh.
Europe Stock Movers
BBVA increased 4.1% to €8.45 after the Spanish financial services provider posted strong fourth-quarter results and announced a stock repurchase plan of €781 million.
Hapag Lloyd declined 8.4% to €141.70 after the German shipping company's operating earnings declined 92% in the fourth quarter because of a lower freight rate reflecting the normalization of global supply chains from pandemic-era disruptions.
Diageo plc declined 3.5% to 2,749.0 pence after sales in the first half declined and profit fell by more than 10% after demand for expensive spirits eased in Latin America and the Caribbean region.
WPP PLC jumped 1.5% to 792.24 pence after the advertising agency upgraded its medium-term financial targets.
Foreign Investors Prefer Japan and India to China, BYD Earnings Soar
Market indexes in Asia diverged as foreign investors rotated out of stocks in China into Japan and India.
The Nikkei index increased 0.2% to 36,089.38 and advanced for the second day in a row this week following the gains on Wall Street in New York.
The unemployment rate in December eased to 2.4% from 2.5% in the previous two months, and investors are looking ahead to the release of retail sales, industrial production, and consumer confidence data later in the week.
Advanced semiconductor-related stocks were among the leading gainers in Tuesday's trading.
Advantest, Disco, and Renesas Electronics gained between 1% and 3%.
Foreign investors have been increasing their holdings in Japan in the hopes that the revamped individual tax-free savings plan will attract more domestic investors to the stock market after three decades of losses.
Foreign investors added about 384 billion yen worth of Japanese stocks, and domestic retail investors sold 185.5 billion yen of Japanese stocks in the period between January 15 and 19, according to the data available from the Tokyo Stock Exchange.
The Nikkei index is trading at about 15 times the estimated earnings of index-member Japanese companies.
Elsewhere in the region, the KOSPI index in Seoul added 0.1% to 2,504.60, and the ASX 200 index in Sydney advanced 0.3% to 7,600.20.
Selling Resumes on Chinese Stock Exchanges
Indexes in mainland China and Hong Kong resumed their slide amid persistent selling by foreign investors and protracted weakness in the property market.
Foreign investors continue to sell China stocks on the worry that the government may not be able to provide sustained reforms and stimulus to support financial markets amid a weakening macroeconomic backdrop and worsening tensions with the U.S.
The weak support from the government and restrained consumer spending growth also stoked fears of weak corporate earnings growth.
China's official estimate of the manufacturing industry is likely to show on Wednesday a contraction for the fourth month in a row in December.
The CSI 300 index in Shanghai declined 1% to 3,270.66, and the Hang Seng index in Hong Kong dropped 2% to 15,762.04.
The Hang Seng index has lost about 7.5% this month, trailing only to the worst start of the year at 10% in 2016.
Market sentiment was dented after BYD, the largest electric vehicle maker in the world, estimated an 86% surge in profit in 2023 but fell short of investor expectations.
BYD fell 5.7% to HK$175.50 and dragged down Li Auto by 1.9% to HK$107.20.
Other leading tech stocks also declined, reflecting weak market sentiment.
Alibaba Group, Tencent, Baidu, and Meituan declined between 2% and 3%.
India Stocks In Holding Pattern, Crude Oil Refiners and Exporters Face Houthi Reality
Stocks in Mumbai lacked direction in early trading as investors digested a fresh batch of earnings and looked forward to the release of the interim budget later in the week.
The Sensex and the Nifty indexes traded in a tight range around the flatline after Bajaj Finance reported a strong rise in earnings but fell short of market expectations.
Aditya Birla Sun Life, ITC, NTPC, and Piramal Enterprises met or exceeded investor expectations.
Tensions in the Red Sea continue to dominate crude oil and refined crude products trading as shippers divert cargo away from the troubled waters.
The Yemen-based Houthi group's missile attack in the Red Sea set on fire an oil cargo ship owned by one of the largest commodities trading firms, Trafigura, on Saturday.
Moreover, India's diesel shipments to Europe are facing difficulties because all shipments travel through the Red Sea lanes.
European countries are relying on diesel shipments from India and Saudi Arabia to meet their daily shortfall of 650,000 barrels.
India's diesel exports are taking a hit because of the higher freight costs and longer delivery time to the region, and European customers are switching supplies from the U.S.
At the same time, Middle East suppliers are forced to divert shipments around South Africa to Europe, lengthening delivery times by two weeks and increasing freight costs by at least 50%.
Facing higher shipping costs to Europe, Middle East crude oil suppliers are offering discounts to refiners in India and China.
The largest diesel exporter, Reliance Industries, declined 1.5%, but ONGC, Mangalore Refinery, Hindustan Petroleum, and Bharat Petroleum jumped between 2% and 4%.
The Sensex index decreased 57.84 points to 71,883.73, and the Nifty index rose 22.60 points to 21,760.20.
On the Mumbai stock exchange, 281 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
Bajaj Finance declined 4.4% to ₹6,892.50 after the financial services company reported a surge in quarterly profit and revenue but missed investor expectations.
Net interest income in the December quarter jumped 29% to 7,655 crore, and net profit jumped 22% to 3,639 crore from a year ago, respectively.
- Barry Adams
- 30 Jan, 2024
- New York City
Market indexes on Wall Street headed down as investors reviewed the latest batch of quarterly results and looked ahead to the Federal Reserve's monetary policy announcement.
The S&P 500 index and the Nasdaq Composite traded around flatline, and investors reacted to quarterly results from General Motors, UPS, JetBlue, and Whirlpool.
After the close, Alphabet, Microsoft, and AMD are scheduled to announce their results.
The SP 500 index and the Dow Jones Industrial Average closed at new record highs in the previous session.
The Federal Reserve is set to announce its monetary policy decision at the end of the two-day meeting on Wednesday.
Investors are anticipating that the Federal Reserve will hold rates and are looking forward to the central bank's guidance about the rate path.
U.S. Indexes and Yields
The S&P 500 index decreased 0.2% to 4,942.06, and the Nasdaq Composite declined 0.2% to 15,486.26.
The yield on 2-year Treasury notes decreased to 4.32%. 10-year Treasury notes declined to 4.07%, and 30-year Treasury bonds edged down to 4.30%.
WTI crude oil decreased $0.72 to $76.07 a barrel, and natural gas prices increased 2 cents to $2.07 a thermal unit.
Gold increased by $3.07 to $2,035.56 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 103.48.
U.S. Stock Movers
General Motors jumped 7.5% to $38.03 after the company reported better-than-expected quarterly earnings on flat sales in the fourth quarter.
Sales in the quarter edged slightly lower to $42.98 billion from $43.11 billion, net income edged higher to $2.1 billion from $2.0 billion, and earnings per share rose to $1.59 from $1.39 a year ago.
The company reiterated its commitment to electric vehicles and confirmed that adoption of the advanced vehicle has been slower than anticipated.
Despite the near-term sales challenges, General Motors plans to build a production capacity of one million electric vehicles by 2025.
JetBlue Airways declined 1.1% to $5.44 after the company reported a loss in the latest quarter.
Revenue in the fourth quarter decreased 3.7% to $2.3 billion, net income swung to a loss of $124 million from a profit of $24 million, and diluted earnings per share were $0.31 from 7 cents a year ago.
UPS declined 6.9% to $147.20 after the package delivery company reported mixed quarterly results and the company's outlook fell short of market expectations.
- Scott Peters
- 30 Jan, 2024
- New York City
F5 jumped 8% to $200.20 after the secured network management company reported better-than-expected quarterly results.
General Motors jumped 7.5% to $38.03 after the company reported better-than-expected quarterly earnings on flat sales in the fourth quarter.
Sales in the quarter edged slightly lower to $42.98 billion from $43.11 billion, net income edged higher to $2.1 billion from $2.0 billion, and earnings per share rose to $1.59 from $1.39 a year ago.
The company reiterated its commitment to electric vehicles and confirmed that adoption of the advanced vehicle has been slower than anticipated.
Despite the near-term sales challenges, General Motors plans to build a production capacity of one million electric vehicles by 2025.
JetBlue Airways declined 1.1% to $5.44 after the company reported a loss in the latest quarter.
Revenue in the fourth quarter decreased 3.7% to $2.3 billion, net income swung to a loss of $124 million from a profit of $24 million, and diluted earnings per share were $0.31 from 7 cents a year ago.
UPS declined 6.9% to $147.20 after the package delivery company reported mixed quarterly results and the company's outlook fell short of market expectations.
Sanmina Corp. soared 16.20% after the semiconductor equipment maker reported better-than-expected quarterly earnings and a current-quarter estimate.
Revenue in the fiscal first quarter ending in December decreased to $1.87 billion from $2.35 billion, net income plunged to $57 million from $92 million, and diluted earnings per share dropped to 98 cents from $1.54 a year ago.
The company guided fiscal second quarter revenue between $1.825 billion and $1.925 billion and diluted earnings per share between 95 cents and $1.05.
Whirlpool declined 4.5% to $112.27 after the company estimated a weaker-than-expected annual outlook.
Revenue in the fourth quarter increased 3.4% to $5.1 billion, net income swung to $491 million from $1.6 billion, and diluted earnings per share were $8.90 compared to a loss of $29.35 a year ago.
The company estimated 2024 revenue of $16.9 billion and diluted earnings per share between $8.50 and $10.50.
- Inga Muller
- 30 Jan, 2024
- Frankfurt
European market indexes in France and Germany traded at new highs, and the eurozone economy stalled in the fourth quarter, barely avoiding a technical recession.
The DAX index increased 0.1% to 16,962.54, the CAC-40 index rose 0.3% to 7,665.48, and the FTSE 100 index inched higher by 0.6% to 7,674.69.
The yield on 10-year German bonds edged down to 2.24%; French bonds inched higher to 2.74%; the UK gilts edged lower to 3.87%; and Italian bonds inched lower to 3.75%.
BBVA increased 4.1% to €8.45 after the Spanish financial services provider posted strong fourth-quarter results and announced a stock repurchase plan of €781 million.
Hapag Lloyd declined 8.4% to €141.70 after the German shipping company's operating earnings declined 92% in the fourth quarter because of a lower freight rate reflecting the normalization of global supply chains from pandemic-era disruptions.
Diageo plc declined 3.5% to 2,749.0 pence after sales in the first half declined and profit fell by more than 10% after demand for expensive spirits eased in Latin America and the Caribbean region.
WPP PLC jumped 1.5% to 792.24 pence after the advertising agency upgraded its medium-term financial targets.
Hill & Smith PLC added 1.8% to 1,863.40 pence, and the infrastructure products company appointed a new chief operating officer.
Delivery Hero SE plunged 6.7% to €21.03 after the company said it plans to sell a stake in Deliveroo as consumer demand falters.
- Bridgette Randall
- 30 Jan, 2024
- Frankfurt
European market indexes inched higher in record territory as investors digested a fresh batch of corporate results.
The Euro Area barely avoided a technical recession after stalling in the fourth quarter of 2023 as consumer spending remained restrained amid elevated interest rates and high inflation.
Market indexes in Frankfurt and Paris jumped to new record highs, and the benchmark index in London edged higher in Tuesday's trading.
The Euro Area Barely Avoids Recession
The Euro Area economy struggled in the final quarter of 2023 after larger member nations showed little growth, the statistical agency Eurostat reported Tuesday.
The eurozone GDP in the December quarter stalled following a 0.1% contraction, narrowly avoiding a technical recession in the currency union.
The economies of Spain expanded by 0.6%, Portugal by 0.8%, Italy by 0.2%, and Belgium by 0.4%.
However, the economy of Spain stalled, and Germany contracted by 0.3%.
In full-year 2023, the eurozone economy expanded by 0.5%, despite the aggressive rate hike campaign and multi-year high inflation.
Spain's Inflation Accelerated
Spain's overall inflation unexpectedly accelerated in January, the National Statistics Institute reported Tuesday.
Inflation increased to an annual pace of 3.4% in January from 3.1% in the previous month, driven by a higher rate of electricity.
On a monthly basis, Spain's consumer price index edged up 0.1%.
The core rate of inflation, which excludes food and energy, eased for the sixth month in a row to 3.6% from 3.8% in the previous month and fell to the lowest level since March 2022.
Spain's EU harmonized annual inflation rate edged higher to 3.5% from 3.3% in each of the previous two months.
Europe Indexes and Yields
The DAX index increased 0.1% to 16,962.54, the CAC-40 index rose 0.3% to 7,665.48, and the FTSE 100 index inched higher by 0.6% to 7,674.69.
The yield on 10-year German bonds edged down to 2.24%; French bonds inched higher to 2.74%; the UK gilts edged lower to 3.87%; and Italian bonds inched lower to 3.75%.
The euro edged lower to $1.082, the British pound inched higher to $1.268, and the U.S. dollar gained to 86.30 Swiss cents.
Brent crude increased $0.21 to $82.04 a barrel, and the Dutch TTF natural gas increased by €0.06 to €28.23 per MWh.
Europe Stock Movers
BBVA increased 4.1% to €8.45 after the Spanish financial services provider posted strong fourth-quarter results and announced a stock repurchase plan of €781 million.
Hapag Lloyd declined 8.4% to €141.70 after the German shipping company's operating earnings declined 92% in the fourth quarter because of a lower freight rate reflecting the normalization of global supply chains from pandemic-era disruptions.
Diageo plc declined 3.5% to 2,749.0 pence after sales in the first half declined and profit fell by more than 10% after demand for expensive spirits eased in Latin America and the Caribbean region.
WPP PLC jumped 1.5% to 792.24 pence after the advertising agency upgraded its medium-term financial targets.
- Arjun Pandit
- 30 Jan, 2024
- Mumbai
Market indexes in Asia diverged as foreign investors rotated out of stocks in China into Japan and India.
The Nikkei index increased 0.2% to 36,089.38 and advanced for the second day in a row this week following the gains on Wall Street in New York.
The unemployment rate in December eased to 2.4% from 2.5% in the previous two months, and investors are looking ahead to the release of retail sales, industrial production, and consumer confidence data later in the week.
Advanced semiconductor-related stocks were among the leading gainers in Tuesday's trading.
Advantest, Disco, and Renesas Electronics gained between 1% and 3%.
Foreign investors have been increasing their holdings in Japan in the hopes that the revamped individual tax-free savings plan will attract more domestic investors to the stock market after three decades of losses.
Foreign investors added about 384 billion yen worth of Japanese stocks, and domestic retail investors sold 185.5 billion yen of Japanese stocks in the period between January 15 and 19, according to the data available from the Tokyo Stock Exchange.
The Nikkei index is trading at about 15 times the estimated earnings of index-member Japanese companies.
Elsewhere in the region, the KOSPI index in Seoul added 0.1% to 2,504.60, and the ASX 200 index in Sydney advanced 0.3% to 7,600.20.
Selling Resumes on Chinese Stock Exchanges
Indexes in mainland China and Hong Kong resumed their slide amid persistent selling by foreign investors and protracted weakness in the property market.
Foreign investors continue to sell China stocks on the worry that the government may not be able to provide sustained reforms and stimulus to support financial markets amid a weakening macroeconomic backdrop and worsening tensions with the U.S.
The weak support from the government and restrained consumer spending growth also stoked fears of weak corporate earnings growth.
China's official estimate of the manufacturing industry is likely to show on Wednesday a contraction for the fourth month in a row in December.
The CSI 300 index in Shanghai declined 1% to 3,270.66, and the Hang Seng index in Hong Kong dropped 2% to 15,762.04.
The Hang Seng index has lost about 7.5% this month, trailing only to the worst start of the year at 10% in 2016.
Market sentiment was dented after BYD, the largest electric vehicle maker in the world, estimated an 86% surge in profit in 2023 but fell short of investor expectations.
BYD fell 5.7% to HK$175.50 and dragged down Li Auto by 1.9% to HK$107.20.
Other leading tech stocks also declined, reflecting weak market sentiment.
Alibaba Group, Tencent, Baidu, and Meituan declined between 2% and 3%.
India Stocks In Holding Pattern, Crude Oil Refiners and Exporters Face Houthi Reality
Stocks in Mumbai lacked direction in early trading as investors digested a fresh batch of earnings and looked forward to the release of the interim budget later in the week.
The Sensex and the Nifty indexes traded in a tight range around the flatline after Bajaj Finance reported a strong rise in earnings but fell short of market expectations.
Aditya Birla Sun Life, ITC, NTPC, and Piramal Enterprises met or exceeded investor expectations.
Tensions in the Red Sea continue to dominate crude oil and refined crude products trading as shippers divert cargo away from the troubled waters.
The Yemen-based Houthi group's missile attack in the Red Sea set on fire an oil cargo ship owned by one of the largest commodities trading firms, Trafigura, on Saturday.
Moreover, India's diesel shipments to Europe are facing difficulties because all shipments travel through the Red Sea lanes.
European countries are relying on diesel shipments from India and Saudi Arabia to meet their daily shortfall of 650,000 barrels.
India's diesel exports are taking a hit because of the higher freight costs and longer delivery time to the region, and European customers are switching supplies from the U.S.
At the same time, Middle East suppliers are forced to divert shipments around South Africa to Europe, lengthening delivery times by two weeks and increasing freight costs by at least 50%.
Facing higher shipping costs to Europe, Middle East crude oil suppliers are offering discounts to refiners in India and China.
The largest diesel exporter, Reliance Industries, declined 1.5%, but ONGC, Mangalore Refinery, Hindustan Petroleum, and Bharat Petroleum jumped between 2% and 4%.
The Sensex index decreased 57.84 points to 71,883.73, and the Nifty index rose 22.60 points to 21,760.20.
On the Mumbai stock exchange, 281 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
Bajaj Finance declined 4.4% to ₹6,892.50 after the financial services company reported a surge in quarterly profit and revenue but missed investor expectations.
Net interest income in the December quarter jumped 29% to 7,655 crore, and net profit jumped 22% to 3,639 crore from a year ago, respectively.
- Arun Goswami
- 30 Jan, 2024
- Mumbai
Stocks in Mumbai struggled to hold gains in early trading following a surge of more than 1% in the previous session.
The Sensex index decreased 130.45 points to 71,811.10, and the Nifty index declined 15.0 points to 21,722.60.
On the Mumbai stock exchange, 275 stocks traded at their 52-week highs and 8 stocks traded at their 52-week lows.
ITC Ltd. decreased 1.5% to ₹448.70 after the tobacco product maker reported quarterly results.
Consolidated net profit in the December quarter rose to ₹5,335.2 crore from ₹5,006.6 crore a year ago.
Bajaj Finance jumped 1.6% to ₹7,200.0 after the financial services company reported a surge in quarterly profit and revenue.
Net interest income in the December quarter jumped 29% to 7,655 crore, and net profit jumped 22% to 3,639 crore from a year ago, respectively.
Vodafone Idea fell 1% to ₹14.75 after the struggling telecom carrier reported a smaller loss compared to a year ago.
Net loss in the December quarter shrank 12% to 6,985 crore from 7,990 crore a year ago.
NTPC declined 0.8% to ₹321.85 after the power producer reported mixed quarterly results.
Revenue in the December quarter declined 4% to 42,820 crore, but net income rose 7.3% to 5,209 crore from a year ago, respectively.
Marico Ltd. increased 1% to ₹521.85 after the company reported mixed quarterly results.
Revenue in the December quarter declined 1.9% to 2,422 crore, but net profit rose 16% to 386 crore from a year ago, respectively.
Piramal Enterprises rose 0.8% to ₹891.50, and the company swung to a consolidated loss in its latest quarter.
The financial services provider in the December quarter swung to a loss of ₹2,378 crore from a profit of ₹3,545.4 crore in the corresponding period in the previous year.
Aditya Birla Sun Life AMC increased 3.4% to ₹493.75 after the company reported a rise in its quarterly profit.
Consolidated profit in the December quarter soared 26% from a year ago to ₹209.3 crore.
Newgen Software advanced 0.02% to ₹845.25 after the company's subsidiary won a seven-year contract to develop and support the digital apps for a customer in Singapore.
- Barry Adams
- 29 Jan, 2024
- New York City
U.S. stocks traded around flatline in Monday's session ahead of the Federal Reserve's policy announcement and a flood of earnings from mega-cap companies.
The S&P 500 index and the Nasdaq Composite gained 0.2% and 0.4%, respectively, and extended the previous week's gains.
The resilient U.S. economy and strong but not-too-hot labor market conditions are giving more room to the Federal Reserve to cool inflation to its 2% targe rate.
Last week, economic updates showed that the U.S. economy accelerated its growth in 2023, despite widespread predictions of an imminent slowdown at the beginning of the year.
The U.S. GDP expanded at a faster pace of 2.5% from 1.9% in the previous year, powered by sustained consumer spending.
Moreover, new home sales rose in December and advanced in 2023, despite elevated home prices and rising interest rates.
Investors are widely anticipating the Federal Reserve holding its key lending rates at the end of its two-day meeting on Wednesday.
Moreover, investors are looking forward to the release of non-farm payrolls and JOLT reports this week.
On the earnings front, about 800 companies are expected to release earnings this week.
Earnings season enters its third week, and Microsoft, Alphabet, Apple, AMD, MasterCard, and ExxonMobil are among the leading companies scheduled to release earnings in the U.S.
U.S. Indexes and Yields
The S&P 500 index increased 0.2% to 4,900.42, and the Nasdaq Composite added 0.4% to 15,512.90.
The yield on 2-year Treasury notes increased to 4.33%. 10-year Treasury notes declined to 4.10%, and 30-year Treasury bonds edged down to 4.34%.
WTI crude oil decreased $1.21 to $76.80 a barrel, and natural gas prices decreased 9 cents to $2.08 a thermal unit.
Gold increased by $10.13 to $2,028.45 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 103.63.
U.S. Stock Movers
iRobot plunged 7% to $160.81 and Amazon.com and the company agreed to terminate their merger plan after the deal faced several regulatory hurdles in Europe.
The maker of Roomba also announced its plan to lay off 350 employees, about 31% of company's staff.
Amazon.com increased 1.1% to $160.81 and will pay a previously agreed $94 million deal termination fee.
The company also announced preliminary full-year 2023 revenue of $891 million, a decline of 25% from a year ago, a GAAP operating loss of between $265 and $285 million, and a non-GAAP operating loss of approximately $200 million.
Flutter, the parent company of FanDuel is expected to list its stock on the New York Stock Exchange on Monday.
DraftKings and the company are the two dominant players in online sports betting in the U.S.
The company will keep its listing on the London Stock Exchange and remain a member of the FTSE 100 index.
European Markets Flatlined
European markets struggled in Monday's trading as investors prepared for monetary policy decisions from central banks in the U.S. and the U.K.
Market indexes in Frankfurt, Paris, and London traded around the flatline as earnings season enters the third week.
Investors are also awaiting the release of interest rate decisions from the U.S. Federal Reserve on Wednesday and the Bank of England on Thursday.
Both central banks are widely anticipated to hold rates steady and reiterate their commitment to keep interest rates restrictive to bring inflation down to the target level of 2%.
On Thursday, the European Central Bank left its key lending rates unrevised and signaled that interest rates will remain restrictive as long as necessary, without giving any clarity if and when rates may be cut.
Moreover, investors also reviewed the faster-than-expected economic growth in the U.S. in the fourth quarter while inflation slowed.
In Friday's trading, market indexes in New York lacked direction after an alternative measure of inflation in the U.S. showed a decline in December.
Closer to home, fourth quarter GDP rates for the Euro Area, Germany, France, Spain, and Italy are awaited by investors later in the week.
In addition, inflation figures from the Euro Area, Spain, France, and Germany are scheduled to be released this week.
Sweden's GDP Contracted In 2023
The Swedish economy expanded by 0.1% in the three months to December 2023, while reversing a 0.3% contraction in the previous quarter, according to a preliminary estimate released by Statistics Sweden on Monday.
Compared to the same period last year, the economy stagnated after shrinking by 0.8% in the second quarter and 0.3% in the third quarter.
For the whole year, the GDP shrank by 0.3%, the statistical agency noted.
“The last three months of 2023 saw relatively minor movements in overall economic activity, with weaker figures for domestic use weighed up by a strengthening of net exports,” highlighted Mattias Kain Wyatt, an economist at Statistics Sweden.
Europe Indexes and Yields
The DAX index decreased 0.1% to 16,941.74, the CAC-40 index rose 0.1% to 7,640.81, and the FTSE 100 index inched lower by 0.03% to 7,632.74.
The yield on 10-year German bonds edged down to 2.23%; French bonds inched lower to 2.72%; the UK gilts edged lower to 3.91%; and Italian bonds inched lower to 3.75%.
The euro edged lower to $1.082, the British pound inched higher to $1.272, and the U.S. dollar gained to 86.20 Swiss cents.
Brent crude decreased $1.01 to $81.92 a barrel, and the Dutch TTF natural gas increased by €0.17 to €28.27 per MWh.
Europe Stock Movers
Ryanair Holdings declined 1.8% to €18.17 after the deep discount airline trimmed its profit estimate for the fiscal year ending in March.
Holcim AG increased 3.2% to CHF 66.18 after the Swiss construction material company announced plans to spin off its North American business through a listing in New York.
The North American operation generated $11 billion in revenue and earnings before interest and taxes of $2 billion in 2023.
Post-spinoff, Holcim revenue in 2023 is estimated at $17 billion, with $2 billion of free cash flow.
Holcim North America employs about 16,000 people across 850 sites, and the company plans to generate $20 billion in revenue by 2030.
Ferrexpo decreased 3.1% to 83.19 pence after a court of appeals in Ukraine affirmed claims of $125 million against the iron ore pellet producer.
Philips NV plunged 6.5% to €19.70 after the Dutch medical device maker said it would halt new sales of sleep machines following a series of recalls.
Group sales in fiscal year 2023 increased 7% to €18.2 billion in 2023 and advanced 3% to €5.1 billion in the fourth quarter.
Income from operations swung to a loss of €115 million in 2023 and a profit of €24 million in the fourth quarter, including charges of €363 million connected with the Respironics consent decree.
The company reached a settlement with the U.S. Food and Drug Administration regarding a mass recall of its Respironics ventilators.
The medical device maker retained its 85-cent stock dividend for shareholders.
Philips expects to deliver 3% to 5% comparable sales growth and an adjusted EBITA margin of 11% to 11.5% in 2024.
Wacker Chemie declined 1.1% to €99.34 after the chemical company reported a 60% decline in its core earnings in 2023.
Bayer AG declined 4.5% to €30.76 after the company was ordered to pay $2.25 billion by a Pennsylvania court to a plaintiff who developed cancer due to exposure to the company's Roundup weed killer.
The company plans to appeal the decision.
Eutelsat Communications SA dropped 14.6% to €3.51 after the company lowered its annual revenue outlook.
The company revised its fiscal 2024 revenue in a range of €1.25 billion to €1.3 billion from its previous estimated range of €1.32 billion to €1.42 billion.
The company lowered its adjusted EBITDA in a range of €650 million to €680 million from its previous range between €725 million and €825 million.
The company attributed the revenue shortfall to the delay in ground network construction and the shift in revenue mix towards the sale of user terminals with lower margins.
Japan and India Markets Pull Ahead, China Markets Diverge
Across Asia, markets lacked direction, and investors looked ahead to the release of key economic data in the region.
Investors are also awaiting the release of interest rate decisions from the U.S. Federal Reserve on Wednesday and the Bank of England on Thursday.
Both central banks are widely anticipated to hold rates steady and reiterate their commitment to keep interest rates restrictive to bring inflation down to the target level of 2%.
In Friday's trading, market indexes in New York lacked direction after an alternative measure of inflation showed a decline in December.
Core Personal Consumption Expenditure, which excludes food and energy, rose to 0.2% from 0.1% on a monthly basis, and the annual core rate fell to 2.9% from 3.2%, the lowest level since March 2021.
A Broad Rally Lifts the Nikkei Index in Tokyo
The Nikkei index advanced more than 0.8% to 36,027.74 in a broad rally, and investors are awaiting the release of retail sales, unemployment, industrial production, and consumer confidence data in the coming week.
Financial, commodities importers, and vehicle and electronics exporters were among the most actively traded stocks in Tokyo.
Mitsubishi UFJ, Sumitomo Mitsui, Mizuho Financial, and Inpex Corp. gained between 2% and 4%.
Toyota Motor, Sony Group, and Honda Motor added between 2% and 3%.
China Announces Additional Measures; Evergrande Halted After Liquidation Order
Market indexes Shanghai eased 0.6% to 3,315.49 after China's market regulator placed a ban on lending restricted securities listed on mainland exchanges.
The latest measure adds to several steps taken by the government and the central bank to stabilize financial markets after indexes lost more than 30% in the last three years.
The Hang Seng index jumped 0.5% to 16,026.49 and extended last week's gain of 4.2%, and tech stocks were among the most active stocks.
Alibaba Group, JD.com, and Baidu gained about 3%, but Tencent declined 1%.
Homebuilders advanced after Guangzhou city regulators lifted the ban on the purchase of large homes.
Longfor and China Resources Land advanced 0.6%.
China Evergrande plunged 21% to 16 cents after a court in Hong Kong ordered the company's liquidation after the mainland real estate developer failed to present a credible restructuring plan and repay creditors.
Healthcare stocks were under pressure after U.S. lawmakers debated additional sanctions on Chinese biotech companies for collaborating with PLA-linked entities.
WuXi Apptec, Zhongji Innolight, and TCL Zhonghuan dropped between 9% and 12%.
India Stocks Soared Ahead of Interim Budget
Benchmark indexes in Mumbai lacked direction in Monday's trading as investors looked ahead to a busy week of economic data and corporate earnings.
Finance Minister Nirmala Sitharaman is scheduled to present the interim budget to the Lok Sabha on February 1.
Moreover, investors are looking ahead to the release of December automobile sales, infrastructure output, and fiscal deficit updates.
The Sensex index increased 639.59 points to 71,340.26, and the Nifty index rose 185.90 points to 21,538.50.
On the Mumbai stock exchange, 258 stocks traded at their 52-week highs and 9 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds increased to 7.17%, and the Indian rupee held steady at ₹83.13 against the U.S. dollar.
HDFC Bank increased 1.2% to ₹1,453.35 after the Reserve Bank of India permitted Life Insurance Corporation to increase its stake in the bank from 5.19% to up to 9.99%.
Elsewhere in the region, the KOSPI index in Seoul added 1.1% to 2,507.82, and the ASX 200 index in Sydney jumped 0.3% to 7,578.40.
- Barry Adams
- 29 Jan, 2024
- New York City
U.S. stocks traded slightly higher in Monday's session ahead of the Federal Reserve's policy announcement and a flood of earnings from mega-cap companies.
The S&P 500 index and the Nasdaq Composite edged higher and extended the previous week's gains.
The resilient U.S. economy and strong but not-too-hot labor market conditions are giving more room to the Federal Reserve to cool inflation to its 2% targe rate.
Last week, economic updates showed that the U.S. economy accelerated its growth in 2023, despite widespread predictions of an imminent slowdown at the beginning of the year.
The U.S. GDP expanded at a faster pace of 2.5% from 1.9% in the previous year, powered by sustained consumer spending.
Moreover, new home sales rose in December and advanced in 2023, despite elevated home prices and rising interest rates.
Investors are widely anticipating the Federal Reserve holding its key lending rates at the end of its two-day meeting on Wednesday.
Moreover, investors are looking forward to the release of non-farm payrolls and JOLT reports this week.
On the earnings front, about 800 companies are expected to release earnings this week.
Earnings season enters its third week, and Microsoft, Alphabet, Apple, AMD, MasterCard, and ExxonMobil are among the leading companies scheduled to release earnings in the U.S.
U.S. Indexes and Yields
The S&P 500 index increased 0.01% to 4,916.23, and the Nasdaq Composite added 0.1% to 15,672.82.
The yield on 2-year Treasury notes increased to 4.33%. 10-year Treasury notes declined to 4.10%, and 30-year Treasury bonds edged down to 4.34%.
WTI crude oil decreased $0.31 to $77.71 a barrel, and natural gas prices decreased 5 cents to $2.12 a thermal unit.
Gold increased by $10.93 to $2,029.31 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 103.63.
U.S. Stock Movers
Holcim AG increased 3.2% to CHF 66.18 after the Swiss construction material company announced plans to spin off its North American business through a listing in New York.
The North American operation generated $11 billion in revenue and earnings before interest and taxes of $2 billion in 2023.
Post-spinoff, Holcim revenue in 2023 is estimated at $17 billion, with $2 billion of free cash flow.
Holcim North America employs about 16,000 people across 850 sites, and the company plans to generate $20 billion in revenue by 2030.
Philips NV plunged 6.5% to €19.70 after the Dutch medical device maker said it would halt new sales of sleep machines following a series of recalls.
Group sales in fiscal year 2023 increased 7% to €18.2 billion in 2023 and advanced 3% to €5.1 billion in the fourth quarter.
Income from operations swung to a loss of €115 million in 2023 and a profit of €24 million in the fourth quarter, including charges of €363 million connected with the Respironics consent decree.
The company reached a settlement with the U.S. Food and Drug Administration regarding a mass recall of its Respironics products, including ventilators and breathing devices, in 2021.
Philips may take as long as five to seven years to meet the regulatory requirements before the company is able to sell new products in the U.S.
The company is still facing an investigation by the U.S. Department of Justice into how it handled the mass recall and numerous lawsuits from patients claiming their health has suffered due to the use of sleep apnea and breathing devices.
The medical device maker retained its 85-cent stock dividend for shareholders.
Philips expects to deliver 3% to 5% comparable sales growth and an adjusted EBITA margin of 11% to 11.5% in 2024.
Flutter, the parent company of FanDuel is expected to list its stock on the New York Stock Exchange on Monday.
DraftKings and the company are the two dominant players in online sports betting in the U.S.
The company will keep its listing on the London Stock Exchange and remain a member of the FTSE 100 index.
- Inga Muller
- 29 Jan, 2024
- Frankfurt
European markets hugged the flatline ahead of the rate decisions from the Bank of England and the U.S. Federal Reserve.
The DAX index decreased 0.5% to 16,874.0, the CAC-40 index rose 0.01% to 7,634.92, and the FTSE 100 index inched higher by 0.1% to 7,642.72.
The yield on 10-year German bonds edged down to 2.23%; French bonds inched lower to 2.72%; the UK gilts edged lower to 3.91%; and Italian bonds inched lower to 3.75%.
Ryanair Holdings declined 1.8% to €18.17 after the deep discount airline trimmed its profit estimate for the fiscal year ending in March.
Holcim AG increased 3.2% to CHF 66.18 after a Swiss construction material company announced plans to spin off its North American business through a listing in New York.
The North American operation generated $11 billion in revenue and earnings before interest and taxes of $2 billion in 2023.
Post-spinoff, Holcim revenue in 2023 is estimated at $17 billion, with $2 billion of free cash flow.
Ferrexpo decreased 3.1% to 83.19 pence after a court of appeals in Ukraine affirmed claims of $125 million against the iron ore pellet producer.
Philips NV plunged 6.5% to €19.70 after the Dutch medical device maker said it would halt new sales of sleep machines following a series of recalls.
Group sales in fiscal year 2023 increased 7% to €18.2 billion in 2023 and advanced 3% to €5.1 billion in the fourth quarter.
Income from operations swung to a loss of €115 million in 2023 and a profit of €24 million in the fourth quarter, including charges of €363 million connected with the Respironics consent decree.
The company reached a settlement with the U.S. Food and Drug Administration regarding a mass recall of its Respironics products, including ventilators and breathing devices, in 2021.
Philips may take as long as five to seven years to meet the regulatory requirements before the company is able to sell new products in the U.S.
The company is still facing an investigation by the U.S. Department of Justice into how it handled the mass recall and numerous lawsuits from patients claiming their health has suffered due to the use of sleep apnea and breathing devices.
The medical device maker retained its 85-cent stock dividend for shareholders.
Philips expects to deliver 3% to 5% comparable sales growth and an adjusted EBITA margin of 11% to 11.5% in 2024.
Wacker Chemie declined 1.1% to €99.34 after the chemical company reported a 60% decline in its core earnings in 2023.
Bayer AG declined 4.5% to €30.76 after the company was ordered to pay $2.25 billion by a Pennsylvania court to a plaintiff who developed cancer due to exposure to the company's Roundup weed killer.
The company plans to appeal the decision.
Eutelsat Communications SA dropped 14.6% to €3.51 after the company lowered its annual revenue outlook.
The company revised its fiscal 2024 revenue in a range of €1.25 billion to €1.3 billion from its previous estimated range of €1.32 billion to €1.42 billion.
The company lowered its adjusted EBITDA in a range of €650 million to €680 million from its previous range between €725 million and €825 million.
The company attributed the revenue shortfall to the delay in ground network construction and the shift in revenue mix towards the sale of user terminals with lower margins.