- Arjun Pandit
- 14 Feb, 2023
- Mumbai
Asian markets advanced on the hopes that the U.S. inflation will show a moderation.
Market indexes in Tokyo advanced after GDP in the fourth quarter increased less than expected and the formal announcement of the Bank of Japan governor.
Prime Minister Fumio Kishida formally announced the nomination of academic Kazuo Ueda as the next Bank of Japan governor.
Japan's Fourth Quarter GDP Expanded
Fourth quarter GDP expanded 0.3% from the previous quarter and rose 0.6% from a year ago, the data from the Cabinet Office showed Tuesday.
The third quarter GDP contraction was downwardly revised to 0.3% from the previous estimate of 0.2% and annual increase was lowered to 1.0% from the previous estimate of 0.8% contraction.
Seasonally adjusted nominal GDP expanded at 5.2% annual rate in the fourth quarter compared to 0.7% increase in the corresponding period a year ago.
In calendar year 2022, seasonally adjusted GDP growth slowed to 1.1% after expanding at 2.1% in 2021 and contracting 4.3% in 2020.
Japan's Industrial Products Advanced Second Month In a Row
Japan's industrial production advanced for the second month in a row, a final report from the Ministry of Economy, Trade and Industry showed Tuesday.
Seasonally adjusted industrial production increased 0.3% in December from November, revised from 0.1% decline estimated on January 30.
Industrial production advanced 0.2% in November.
On an annual basis, industrial production contraction was revised to 2.4% in the final estimate from the 2.4% decline in the preliminary estimate.
The Nikkei 225 index increased 0.6% to 27,602.77 and the yen weakened to 133.09 against the U.S. dollar.
China Stocks Rebounded
Stocks in Mainland China and Hong Kong advanced and crude oil traded lower following the announcement of more release of oil from the U.S. Strategic Petroleum Reserve.
Tensions between the U.S. and China simmered down after reports suggested that the U.S. Secretary of State is considering to meeting China's top diplomat Wang Yi at the Munich Security Conference this week.
The Shanghai Composite index increased 0.3% to 3,293.28 and the Hang Seng index fell 0.3% to 21,113.76.
India Indexes Jumped Following New York Gains
Stocks in Mumbai rebounded following the overnight advance in New York and ahead of the wholesale inflation report.
The Sensex index soared 1% or 600.42 and the Nifty index increased 0.9% or 158.95 points to 17,929.85.
The Indian rupee edged lower to 82.92 against the U.S. dollar after India's retail inflation accelerated in January.
India's wholesale inflation slowed to 4.73% in January from 4.95% in December, Ministry of Commerce and Industry said in a preliminary report.
- Scott Peters
- 14 Feb, 2023
- New York City
Amkor Technology , Inc rose 1.3% to $27.64 after the company reported weaker-than-anticipated earnings but revenues were ahead of expectations.
Amkor said fourth quarter revenue increased 11% to $1.91 billion and net income fell 46% to $164 million from $306 million and diluted EPS declined to 67 cents from $1.24 a year ago.
In 2022, revenue rose to $7.1 billion and net income rose to $766 million or $3.11 from $2.62 a year ago.
Avis Budget Group increased 6.9% to $235.69 after the rental car company reported a sharp in revenue and earnings.
Avis Budget Group said revenue in the fourth quarter increased 8% to $2.77 billion and net income rose 11% to $424 million from $383 million or diluted earnings per share jumped to $10.10 from $6.63 a year ago.
Cadence Design Systems Inc increased 7.0% to $198.99 after the company reported better-than-expected quarterly results.
Cadence said fourth quarter revenue increased 16.4% to $899.8 million from $773 million. Net income in the quarter increased to $240.4 million from $176.5 million and diluted earnings per share rose to 88 cents from 66 cents a year ago.
Check Point Software Technologies Ltd declined 2.1% to $125.50 after the reported a decline in earnings in its latest quarter.
Check Point said revenue in the fourth quarter increased 7% to $638 million and net income rose to $269.9 million from $259.7 million and diluted EPS rose to $2.20 from $1.98 a year ago.
In 2022, revenue increased 10% to $2.3 billion and net income fell 2% to 796.9 million or $6.37 a share.
The Coca-Cola Company decreased 1.4% to $59.77 after the global beverage company reported a rise in sales despite the strong dollar.
Coca-Cola said revenue in the fourth quarter increased 7% to $10.1 billion and net income fell 16% to $2.0 billion from $2.5 billion and diluted EPS declined to 47 cents from 56 cents a year ago.
In 2022, net revenue rose 11% to $43 billion and net income fell 2% to $9.5 billion or $2.19 a share.
The company increased its capital spending in 2022 by 9% to $1.5 billion and paid dividends of $7.5 billion.
In 2022, the company issued $0.8 billion of shares in connection with the exercise of stock options by employees, and the company purchased $1.4 billion of shares, net share repurchases were $0.6 billion.
The company’s remaining share repurchase authorization is approximately $8 billion.
Coca-Cola guided 2023 organic revenue to increase between 7% and 8%.
IAC Inc rose 7.5% to $55.08 after the online platforms operator reported stronger-than-expected quarterly results.
IAC said fourth quarter revenue increased 8% to $1.25 billion and the company swung to a net loss of $1.4 million from a profit of $13.0 million and diluted EPS was ($0.02) from a profit of 14 cents a year ago.
IAC holds 64.7 million shares of MGM Resorts International and EPS reflects decreases or increases in MGM’s share price as unrealized losses and gains.
IAC’s stake in MGM was purchased for $1.3 billion in 2020 and 2022 and is worth $2.8 billion as of February 10, 2023.
Lattice Semiconductor Corp increased 7.7% to $89.10 after the company reported a rise in revenue and earnings in its latest quarter.
Lattice said revenue in the fourth quarter increased 24% to $175.9 million and net income rose 82% to $51.9 million from $28.5 million and diluted EPS rose to 37 cents from 20 cents a year ago.
In 2022, revenue increased 28% to $660.4 million and net income rose 87% to $179 million or $1.27 a share.
Marriott International Inc increased 3.2% to $179.58 after the hotel operator reported strong quarterly results on the back of a rebound in travel.
Marriott said revenue in the fourth quarter increased 33% to $5.9 billion and net income rose 44% to $673 million from $468 million and diluted earnings per share increased to $2.12 from $1.42 a year ago.
The company added 145 properties with 22,589 rooms to its worldwide lodging portfolio during the fourth quarter, including nearly 6,900 rooms converted from competitor brands and approximately 16,700 rooms in international markets.
At the end of the year, Marriott’s global lodging system totaled nearly 8,300 hotel and resorts properties, with over 1.525 million rooms.
PerkinElmer, Inc declined 0.8% to $137.66 after the diversified instruments and diagnostics equipment maker reported mixed quarterly results.
PerkinElmer said revenue in the fourth quarter declined to $741 million and net income dropped to $137.6 million from $190.1 million and diluted EPS fell to $1.09 from $1.50 a year ago.
In 2022, revenue fell to $3.3 million and net income fell to $579 million or $4.58 a share.
Treehouse Foods Inc declined 0.5% to $48.09 after the private label food products maker said quarterly loss declined.
Treehouse Foods said revenue in the fourth quarter rose 22% $996 million and net loss shrank to $23.4 million from $24.9 million and diluted loss per share fell to 41 cents from 52 cents a year ago.
In 2022, revenue increased to $3.4 billion and net loss increased to $146.3 million from $12.5 million.
- Barry Adams
- 13 Feb, 2023
- New York City
Stocks closed higher after two days of lackluster performance and investors took opposite bets on the key inflation report scheduled tomorrow.
The Consumer Price Index is expected to ease to 0.45% in January from the previous month, translating to an increase of 6.3% from a year ago.
But investors are worried that the stubborn food prices and rebound in gasoline prices may stoke inflation.
Retail inflation has been cooling after peaking at 9% i.1n June 2022 and has steadily dropped to 6.4% in December.
Despite the eight rate increases, inflation is still hovering above 6% and showing no sign of cooling.
The goods price increases have cooled in the last five months but service sector inflation has held steady.
The S&P 500 index increased 1.1% to 4,137.29 and the Nasdaq Composite index advanced 1.5% to 11,891.79.
Crude oil decreased 60 cents to $79.11 a barrel and natural gas futures fell 8 cents to $2.42 a thermal unit.
The yield on 2-year Treasury notes edged higher to 4.52%, 10-year Treasury notes to 3.70% and 30-year Treasury bonds to 3.78%.
U.S. Movers
Avis Budget Group Inc increased 1.8% to $218.82 ahead of the company's quarterly results after the close of regular trading hours.
Revenue in the fourth quarter increased 8% to $2.77 billion and net income rose 11% to $424 million from $383 million or diluted earnings per share rose to $10.10 from $6.63 a year ago.
"Our fourth quarter demand was strong with our commercial business performing well above 2019 levels, and the leisure segment continuing its strong performance, especially over the holiday period.
These trends have continued into the first quarter,” said Joe Ferraro, Avis Budget Group Chief Executive Officer.
Cadence Design Systems Inc increased 0.7% ahead of its quarterly earnings release after the close of regular trading hours.
Fourth quarter revenue increased 16.4% to $899.8 million from $773 million.
Net income in the quarter increased to $240.4 million from $176.5 million and diluted earnings per share rose to 88 cents from 66 cents a year ago.
In the third quarter, the chip design software maker reported revenue of $902 million and net income of $186 million or diluted earnings per share of 69 cents.
For the first quarter of 2023, the company expects total revenue in the range of $1.00 billion to $1.02 billion.
First quarter operating margin is expected to be in the range of 31% percent to 32% and net income per diluted share is expected to be in the range of $0.84 to $0.88.
European Commission Lifts 2023 Euro Area Growth Estimate
European markets closed higher as investors weighed risks of economic slowdown and interest rate hike amounts.
The U.S. consumer price index is scheduled to be released on Tuesday and economists are estimating the measure of inflation for January to to hold steady from the previous month.
The European Commission also revised higher its assessment of economic growth in 2023 by 0.6 percentage point to 0.9%.
The commission revised its growth estimate following the weakening of natural prices below the pre-war level and the labor market has held up despite the adverse conditions.
The commission also revised lower its inflation projections for 2023 to 5.6% and 2024 to 2.5%, decelerating from 8.4% in 2022.
The commission also revised higher its economic growth estimate to 0.8% for the European Union.
European Markets Closed Higher
The DAX index increased 0.6% to 15,397.34, the CAC-40 index rose 1.1% to 7,208.59 and the FTSE 100 index closed up 0.8% to 7,947.60.
The euro inched up to $1.07, the British pound closed up 1.21% and the Swiss franc closed unchanged at 91.97 U.S cents.
Brent crude fell 68 cents to $85.70 a barrel and the Dutch TTF natural gas fell 4% to Є51.71 per MWh.
The yield on 10-year German Bunds increased to 2.36%, French bonds increased to 2.81%, the UK Gilts to 3.4% and Italian bonds to 4.14%.
Europe Movers
French automaker Renault SA increased 1.4% to €41.54 after the company and its Japanese partner Nissan Motor plan to invest $600 million in India and to manufacture six models including two electric vehicles.
Lok'nStore Group decreased 3.5% to 929.0 pence despite the UK-based self-storage company saying revenue in the first-half increased 10.3%.
The company said operating costs and construction costs are also increasing at a faster pace and added these increases are expected to "return to a more normalized level in due course."
Brickability Group jumped 8.9% to 74.80 pence after the UK construction company confirmed that current year profits are likely to surpass market expectations.
The company revised higher its estimate of adjusted EBITDA profit to at least £47 million, ahead of market expectation of £44.7 million.
Homebuilders fell in London trading after Deutsche Bank lowered its rating on leading companies in the sector.
Barratt Developments PLC declined 1.3% to 463.09 pence and Taylor Wimpey plc decreased 2.8% to 118.25 pence.
Castellum AB declined 5.7% to SEK 138.35 after the company confirmed its plan to complete its rights offering plan to raise SEK 10 billion.
Japan Awaits BoJ Governor Nomination and GDP Data
Asian markets closed lower on the worries of inflation and ahead of the U.S. inflation report on Tuesday.
The U.S. dollar traded at one-month high and the Japanese yen sank nearly 1% ahead of the formal announcement of the next Bank of Japan Governor nominee on Tuesday.
Kazuo Ueda, former BoJ policy board member and academic, is set to be nominated for the role by Prime Minister Fumio Kishida.
The Nikkei 225 index decreased 0.9% to 27,427.32 and the yen weakened to 132.40 against the U.S. dollar.
China Bank Loans Rebound Lifts Hopes of Faster Recovery
Markets in China advanced bucking the trend in regional trading after new bank loans jumped more than expected in January, according to the latest data from Bank of China.
New loans issued by banks increased to 4.9 trillion yuan in January from 1.4 trillion yuan in December.
M2 broad money supply expanded 12.6% from a year ago in January, faster than the 11.8% increase in December.
The Shanghai Composite Index increased 0.7% to 3,284.16 and the Hang Seng index fell 0.1%.
India's Inflation Accelerated In January
Markets in India continued to drift lower after crude oil prices rebounded and inflation worry resurfaced. After, the close,
The Sensex index declined 0.4% or 250.86 points to 60,431.84 and the Nifty index declined 0.5% to 17,770.90.
The Indian rupee edged lower to 82.59 against the dollar after the consumer price index accelerated in January from December.
The Consumer Price Index increased to 6.5% in January from 5.7% in December, the statistical office said Monday.
The latest inflation data crossed the upper limit set by the Reserve Bank of India and last week the Reserve Bank of India increased its key lending rates by a smaller 25 basis points after inflation drifted below the upper limit in December.
Food prices increased at a faster pace of 5.9% from 4.2% in December.
Retail inflation in January rose 0.46% from the previous month.
India's Wholesale price inflation data is scheduled to be released on Tuesday.