- Akira Ito
- 28 Oct, 2024
- Tokyo
Stock market indexes in Tokyo closed higher after a day of volatile trading following a stinging defeat of the ruling coalition block.
The Nikkei 225 stock average jumped 1.8%, the broader Topix index advanced 1.5%, and the yen weakened to 153.67 against the U.S. dollar.
Japan heads for unprecedented political instability after the ruling coalition of the Liberal Democratic Party and Komeito lost their strong majority in the lower house of the parliament in Sunday's national election.
In the 465-member lower house of the parliament, a majority of 233 is needed to form the next government or pass any bill in the chamber.
The Liberal Democratic Party reduced its seat in the house to 179 from 247, and Komeito weakened its count to 24 from 32.
The Constitutional Democratic Party increased its lawmakers counts to 148, a sharp jump from 98; the Japan Innovation Party increased its tally to 48; and the Democratic Party for the People added seats to total 28 from 7.
For nearly seven decades, the Liberal Democratic Party has governed Japan, except between 2009 and 2012 and between 1993 and 1994.
The LDP was under pressure after the widespread slush fund scandal put the party in harsh light with voters.
Voters lacked enthusiasm and directed their anger at the established political order following the rising prices over the three years and stagnant wages for more than two decades.
The political upheaval is likely to add another layer of complexity as the Bank of Japan prepares to wean off Japan's economy from two decades of low interest rates.
The Bank of Japan is expected to leave its monetary policy and interest rates unchanged at the end of its policy meeting on Thursday, but the latest political outcome is likely to complicate the central bank's monetary policy plans.
Japan Stock Movers
The Nikkei 225 Stock Average closed up 1.8% to 38,605.53, and the broader Topix index edged higher 1.5% to 2,657.78.
In Monday's trading, tech stocks, banks, and industrial stocks traded volatile.
Advantest Corp. gained 4.6% to ¥8,181.0, Tokyo Electron advanced 2.8% to ¥23,860.0, Lasertec added 4.8% to ¥22,270.0, and Disco Corp. increased 5.3% to ¥39,670.0.
Mitsubishi UFJ Financial added 0.9% to ¥1,562.0, Sumitomo Mitsui Financial increased 1.8% to ¥3,160.0, and Mizuho Financial gained 1% to ¥3,115.0.
Toyota Motor Corp gained 4.2% to ¥2,707.0, Honda Motor advanced 4% to ¥1,582.0, and Nissan Motor increased 3.5% to ¥409.80.
IHI Corp. decreased 1.1% to ¥7,680.0, Panasonic Holdings rose 1.3% to ¥1,244.50, and Fanuc Corp. added 3.1% to ¥4,016.0.
- Li Chen
- 28 Oct, 2024
- Hong Kong
Stocks in China and Hong Kong lacked direction as investors awaited the release of fiscal measures early next week.
The Hang Seng index increased 0.4% and the CSI 300 index decreased 0.2% after the legislative committee of the National People's Congress scheduled a meeting next month.
The committee plans to meet between November 4 and 8 as lawmakers review government finances and increase the borrowing limit to finance additional measures to provide additional economic stimulus support.
Investors are hoping that the committee will approve at least 2 trillion yen of support to revive local government financing, among other measures, to facilitate property market transactions and bolster flailing consumer confidence.
The meeting will also review possible escalation of tariffs on China-made products exported to the U.S. after the presidential election on November 5.
Market sentiment was also dented after the decline in profits at large industrial companies fell at a faster pace in September, the National Bureau of Statistics reported Sunday.
Profits declined 27% from a year ago compared to a decline of 18% in August, amid a worsening economic environment and a weakening outlook.
For the nine-month period ending in September, profit declined 3.5% from a year ago.
Oil exploration companies declined after crude oil prices in international trading fell over 4% following the easing of tensions in the Middle East as Israel avoided wider military conflict.
China Stock Movers
The Hang Seng index increased 0.4% to 20,661.85 and the mainland-focused CSI 300 index decreased 0.2% to 3,948.17.
PetroChina declined 2% to HK $5.93, and China Petroleum and Chemical Corp fell 1.5% to HK $4.49 following the decline in crude oil prices in international trading.
Alibaba Group Holding gained 2.8% after the e-commerce company agreed to pay $433 million to settle a shareholder class action lawsuit in the U.S.
BYD increased 0.8% to HK $295.0, Li Auto rose 1.1% to HK $112.50, and Xpeng advanced 8.2% to HK $45.20.
- Arun Goswami
- 28 Oct, 2024
- Mumbai
Stocks rebounded on Dalal Street as Diwali festival dominated market sentiment. Bond yields and the rupee held firm after crude oil prices plunged 5% in international trading amid easing of tensions in the Middle East.
The Sensex index increased by 0.5% to 79,810.49, and the Nifty index rose by 0.3% to 24,257.15.
On the Mumbai stock exchange, 31 stocks traded at their 52-week highs, and 56 stocks traded at their 52-week lows.
ICICI Bank jumped 3.2% to ₹1,295.30 after the financial service company reported an increase in revenue and earnings in the September quarter.
Consolidated net interest income advanced 9.5% to ₹20,048 crore and net income rose 14.5% to ₹11,746 from ₹10,261 crore a year ago, respectively.
Gross non-performing asset ratio declined to 1.97% from 2.15%, and net non-performing asset ratio eased to 0.42% from 0.43% in the previous quarter, respectively.
Cholamandalam Investment declined 1.5% to ₹1,352.35 despite the company reporting rising revenue and earnings in the September quarter.
Consolidated total revenue increased ₹6,322.3 crore from 4,695.1 crore, and net income advanced to ₹968 crore from ₹772.9 crore a year ago.
Total assets under management increased to ₹1.77 lakh crore, driven by steady flows from retail investors and market gains in recent months.
Indian Bank gained 0.3% to ₹499.95 after the company successfully raised ₹5,000 crore through the sale of long-term infrastructure bonds with a coupon rate of 7.12%, and the offering was oversubscribed by 3.19 times.
IDBI Bank declined 1.5% to ₹81.43, and sources in the finance ministry said it plans to finalize the sale of the bank by March 2025.
The Reserve Bank of India shortlisted its approved bidders and indicated ithat the central bank will provide access to due diligence data in the imminent future.
The central government and LIC plan to sell a 60.72% stake in the bank.
Macrotech Developers decreased 1.4% to ₹1,067.30 after the Mumbai-based residential real estate developer reported a strong rise in revenue and earnings in the fiscal second quarter.
Revenue in the September quarter increased 50.1% from a year ago to ₹2,625.7 crore, and net income soared 108.6% to 423.1 crore.
DLF rose 5.2% to ₹817.0 after the Delhi-based residential developer reported a surge in revenue and earnings in the September quarter.
Consolidated revenue in the fiscal second quarter rose 46.5% to ₹1,975 crore, and net income advanced 122.1% to ₹1,381.2 crore from ₹621.9 crore a year ago.
Torrent Pharmaceuticals decreased 2.4% to ₹3,350.45; revenue rose 8.6% from a year ago to ₹1,352.35; and net income advanced 17.4% to ₹456 crore from ₹386 crore a year ago.
Coal India dropped 5.2% to ₹437.40 after the mining company reported a decline in revenue and earnings in the latest quarter.
Revenue in the fiscal second quarter decreased 6.4% from a year ago to ₹30,673 crore, and net income dropped 22% to ₹6,274.8 crore.
Bank of Baroda increased 3.2% to ₹248.60 after the financial services company reported rising revenue and earnings in the September quarter.
Consolidated net interest income rose 7.3% to ₹11,622 crore and net income advanced 23% to ₹5,238 crore from ₹4,253 crore a year ago, respectively.
- Scott Peters
- 25 Oct, 2024
- New York City
L3Harris Technologies rose 4.7% to $255.96 after the defense contractor reported better-than-expected results in the third quarter.
Deckers Outdoor Corporation jumped 10.7% to $168.28 after the maker of Ugg and Hoka reported sharply higher-than-expected fiscal second quarter earnings and revenue.
Tapestry Inc. increased 13.9% to $50.63, and Capri Holdings declined 47% to $22.09 after a federal judge blocked a merger between the two fashion companies.
Digital Realty Trust soared 14.3% to $188.88 after the real estate company reported record lease bookings in the third quarter.
DexCom declined 3.5% to $72.33 despite the company reporting higher-than-expected quarterly earnings, but slower revenue growth weighed on the stock.
- Barry Adams
- 25 Oct, 2024
- New York City
Stocks rebounded in Friday's trading after the S&P 500 index turned higher following losses in three sessions in a row, and bond yield edged lower.
The S&P 500 index gained 0.9% and the Nasdaq Composite advanced 1.4% as investors reacted to the latest batch of earnings.
For the week, the S&P 500 and the Nasdaq could close in the positive territory and extend the streak of weekly gains to the seventh consecutive week.
L3Harris, Deckers Outdoor, and Digital Realty Trust led the gainers following the release of their quarterly results.
Market sentiment improved after the bond yields edged slightly lower but hovered near a three-month high as investors scaled down expectations of aggressive interest rate cuts over the two remaining policy meetings in 2024.
Crude oil bounced around $70 a barrel, and investors continue to worry about possible supply disruptions in the near future as tensions between Iran and Israel remain high.
On the economic front, new orders for manufactured durable goods decreased 0.8% from the previous month in September, following a revised fall of 0.8% in August.
Nondefense capital goods orders, generally seen as a barometer of business spending, dropped 4.5% from the previous month and fell 7.5% from a year ago.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.9% to 5,862.06, the Nasdaq Composite rose 1.4% to 18,678.95, and the Russell 2000 index advanced 0.7% to 2,233.69.
For the year so far as of Thursday this week, the S&P 500 index is up 22.5%, the Nasdaq Composite has advanced 24.8%, and the Russell 2000 index has gained 10.3%.
The yield on 2-year Treasury notes edged higher to 4.06%, 10-year Treasury notes inched down to 4.18%, and 30-year Treasury bonds inched higher to 4.45%.
WTI crude oil increased $1.03 to $71.23 a barrel, and natural gas prices edged down 1 cent to $2.50 a thermal unit.
Gold fell by $4.53 to $2,729.27 an ounce, and silver decreased by $0.21 to $33.44.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged lower to 104.05.
U.S. Stock Movers
L3Harris Technologies rose 4.7% to $255.96 after the defense contractor reported better-than-expected results in the third quarter.
Deckers Outdoor Corporation jumped 10.7% to $168.28 after the maker of Ugg and Hoka reported sharply higher-than-expected fiscal second quarter earnings and revenue.
Tapestry Inc. increased 13.9% to $50.63, and Capri Holdings declined 47% to $22.09 after a federal judge blocked a merger between the two fashion companies.
Digital Realty Trust soared 14.3% to $188.88 after the real estate company reported record lease bookings in the third quarter.
DexCom declined 3.5% to $72.33 despite the company reporting higher-than-expected quarterly earnings, but slower revenue growth weighed on the stock.
- Inga Muller
- 25 Oct, 2024
- Frankfurt
European markets lacked direction as investors reassessed future rate actions by the European Central Bank.
For the week, benchmark indexes in Paris, London, and Frankfurt extended weekly losses. The Bank of Russia hikes key lending rate to 21%.
The DAX index increased by 0.2% to 19,472.90; the CAC-40 index fell by 0.1% to 7,493.28; and the FTSE 100 index decreased by 0.2% to 8,252.402.
The yield on 10-year German bonds edged higher to 2.27%, French bonds inched higher to 3.01%, the UK gilts edged up to 4.23%, and Italian bonds decreased to 3.49%.
Vinci SA declined 2.7% to €101.60 after the French construction company reported weak revenue growth in the third quarter and confirmed its annual outlook.
Revenue in the third increased 1.4% to €18.53 billion from €18.27 billion, and its order book swelled to €66.8 billion.
The company said net income in the current year is likely to be close to the level in 2023, before a potential increase in corporate income tax is considered by the parliament.
In Frankfurt trading, 18 companies included in the 40-member DAX index traded higher.
Daimler Truck Holding AG increased 3.7% to €38.88, Siemens Energy gained 2.4% to €37.88, and Heidelberg Materials added 2.2% to €98.98.
Rheinmetall AG decreased 2.2% to €492.20, Continental AG dropped 2.3% to €58.08, and Qiagen NV declined 1.3% to €38.46.
Resource companies traded higher in London ahead of China's large fiscal stimulus measures following the approval of the next budget by the committee of the National People's Congress in the next two weeks.
Antofagasta increased 0.2% to 1,798.0 pence, Anglo American advanced 1.1% to 2,417.50 pence, and Glencore PLC edged higher 0.4% to 399.70 pence.
- Bridgette Randall
- 25 Oct, 2024
- London
European markets struggled to advance in Friday's trading as investors reassessed rate paths and reviewed the latest batch of earnings.
Benchmark indexes in Paris, London, Milan, and Frankfurt traded around the flatline on a light day of economic data releases.
Sanofi and NatWest gained after reporting better-than-expected earnings, but Mercedes Benz Group fell after earnings plunged 64% following the sales weakness in China.
Spain's jobless rate dropped to 11.2% in the third quarter, the National Statistics Institute reported Friday.
The jobless rate dropped to the level last seen in the second quarter of 2008, as the number of unemployed people declined by 1,200 from the previous quarter to 2.754 million.
The number of employed individuals increased 138,300 to 21.823 million, lifting the employment participation rate to 59.04% from 58.9% in the previous quarter.
The Bank of Russia increased its key lending rate by 200 basis points to 21% and signaled that policymakers are ready to increase rates at the next meeting in December.
After the latest hike, rates are now at a record high, surpassing the previous high of 20% while shoring up the ruble following the invasion of Ukraine in March 2022.
The policy committee noted that inflation is running higher than previously estimated as the nation is struggling to adjust to labor shortages, the economy is suffering under Western sanctions, and there is a rapid increase in government spending.
Europe Indexes and Yields
The DAX index increased by 0.2% to 19,472.90; the CAC-40 index fell by 0.1% to 7,493.28; and the FTSE 100 index decreased by 0.2% to 8,252.02.
The yield on 10-year German bonds edged higher to 2.27%, French bonds inched higher to 3.01%, the UK gilts edged up to 4.23%, and Italian bonds decreased to 3.49%.
The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar strengthened to 86.70 Swiss cents.
Brent crude increased $0.60 to $74.97 a barrel, and the Dutch TTF natural gas rose by €0.59 to €42.87 per MWh.
Europe Stock Movers
Vinci SA declined 2.7% to €101.60 after the French construction company reported weak revenue growth in the third quarter and confirmed its annual outlook.
Revenue in the third increased 1.4% to €18.53 billion from €18.27 billion, and its order book swelled to €66.8 billion.
The company said net income in the current year is likely to be close to the level in 2023, before a potential increase in corporate income tax is considered by the parliament.
In Frankfurt trading, 18 companies included in the 40-member DAX index traded higher.
Daimler Truck Holding AG increased 3.7% to €38.88, Siemens Energy gained 2.4% to €37.88, and Heidelberg Materials added 2.2% to €98.98.
Rheinmetall AG decreased 2.2% to €492.20, Continental AG dropped 2.3% to €58.08, and Qiagen NV declined 1.3% to €38.46.
Resource companies traded higher in London ahead of China's large fiscal stimulus measures following the approval of the next budget by the committee of the National People's Congress in the next two weeks.
Antofagasta increased 0.2% to 1,798.0 pence, Anglo American advanced 1.1% to 2,417.50 pence, and Glencore PLC edged higher 0.4% to 399.70 pence.
- Akira Ito
- 25 Oct, 2024
- Tokyo
Stock market indexes closed down and extended weekly losses as investors stayed on the sidelines ahead of the national election this weekend.
The Nikkei 225 stock average declined 0.6% and the broader Topix index fell 0.7%, and both indexes extended weekly losses to 2.4%.
The yen traded at 151.37 against the U.S. dollar and hovered near its 3-month low ahead of the Sunday national election.
The ruling coalition government is likely to suffer losses, which could lead to post-election chaos as leading parties struggle to win sufficient seats to lead the nation amid widespread voter apathy.
The Liberal Democratic Party is struggling to win 199 seats, and its coalition partner, the New Komeito Party, is expected to win less than 25 seats.
The main opposition party, the Constitutional Democratic Party, is expected to increase its seat count to 150 from the current tally of 99.
The LDP may need help from other parties or independent candidates to form a coalition of at least 233 elected members, the needed majority in the 465-member lower house of the parliament.
On the economic front, Tokyo area core inflation in October dropped below 2% for the first time in five months.
Consumer price inflation, excluding food prices, in the capital slowed to 1.8%, and the price increase decelerated for the second consecutive month, the Ministry of Internal Affairs and Communication reported Friday.
Overall inflation also rose to 1.8% from a year ago in October, and a softer increase in energy prices contributed to the slowdown in price increases.
Service prices increased 0.6% from a year ago in October, including an increase in postal fares in the month.
Japan Post increased its ordinary mail charges by 30%, the first increase in three decades.
Japan Stock Movers
The Nikkei 225 Stock Average declined 0.6% to 37,913.92, and the broader Topix index eased 0.7% to 2,618.32.
Tokyo Metro declined 5.5% to ¥1,609.0 and extended two-day losses to 7% after the subway system operator listed its stock on the Tokyo Stock Exchange at 1,200 yen, or $8.0.
Mitsubishi UFJ Financial declined 1% to ¥1,548.50, Sumitomo Mitsui Financial dropped 0.4% to ¥3,103.0, and Mizuho Financial eased 0.5% to ¥3,086.0.
Seven & I Holdings decreased 0.1% to ¥2,264.0, Fast Retailing declined 0.7% to ¥49,850.0, and Isetan Mitsukoshi fell 2.7% to ¥2,208.0.
Konica Minolta soared 7.2% to ¥602.10, and the stock extended its weekly rise to 25%.
IHI Corp. advanced 0.2% to ¥7,767.0, Canon Inc. declined 1.6% to ¥4,959.0, Nidec Corp. gained 4.3% to ¥3,123.0, and Panasonic Holdings decreased 1.2% to ¥1,227.50.
Toyota Motor decreased 0.1% to ¥2,600.0, Honda Motor fell 1% to ¥1,520.50, and Nissan Motor fell 0.3% to ¥395.90.
In the year-to-date's trading, Nissan Motor fell 29%, Toyota Motor eased 1.3%, and Honda Motor gained 1.6%.
- Li Chen
- 25 Oct, 2024
- Hong Kong
Stock market indexes in China and Hong Kong advanced and trimmed weekly losses after property sales rebounded.
The Hang Seng index gained 0.8% and the mainland-focused CSI 300 index advanced 0.9% as investors bid up stocks related to the property sector.
For the week, the Hang Seng index and the CSI 300 index increased 0.4% and 0.3%, respectively.
New home bookings in the current week increased 22% from the previous week in the 30 largest cities across mainland China, according to financial data provider Wind.
Home sales increased slowed from a 58% surge in the week before, but new home bookings in the top-tier cities rose 27% in the latest week.
The latest home sales data over the last three weeks confirms the rising interest among home buyers following a list of measures announced by the People's Bank of China and local government.
Most cities across China have relaxed home buying restrictions, lowered down payment requirements, and curbed local residency rules for first-time home buyers.
Investors are still on edge and worry that the announced measures may not go far enough to arrest price declines in second- and third-tier cities as property developers lack funds to complete unfinished projects after years of delays and gross mismanagement.
Moreover, investors lack enthusiasm about quarterly results from leading companies as the economy faces deflationary trends and weak consumer confidence.
China Stock Movers
On stock exchanges, the Hang Seng index increased 0.8% to 20,663.91 and the CSI index advanced 0.9% to 3,963.71.
Li Auto increased 5.8% to HK $111.80, Geely rose 7.9% to HK $15.0, and BYD gained 3.2% to HK $294.80.
Xinyi Solar Holdings soared 20.3% to HK $4.32, and the stock advanced on speculation that China will take steps to curb overcapacity in the industry and the U.S. may trim tariffs on solar products.
Alnera Aluminium jumped nearly fourfold from its initial public offering price of 27.70 yuan to 137.98 yuan in Shenzhen trading.
The Chongqing-based company sold 24 million shares in its initial public offering and raised 664 million yuan.
- Arun Goswami
- 25 Oct, 2024
- Mumbai
Market indexes on Dalal Street declined and extended weekly losses to between 2% and 3% following a batch of weak quarterly results.
Hindustan Lever, Nestle India, Mahindra & Mahindra, SBI Life, Grasim, and UltraTech Cement were among the leading decliners.
The Sensex index decreased by 0.5% to 79,699.11, and the Nifty index fell by 0.6% to 24,247.40.
On the Mumbai stock exchange, 96 stocks traded at their 52-week highs, and 166 stocks traded at their 52-week lows.
The yield on the 10-year Indian government bonds inched higher to 6.82%, and the Indian rupee eased to 84.07 against the U.S. dollar.
NTPC decreased 1.8% to ₹404.35 after the power company reported mixed quarterly results.
Consolidated revenue in the September quarter fell 1.3% from a year earlier to ₹45,197.8 crore from ₹45,384.6 crore, and net income rose 14% to ₹5,380 crore.
ITC Ltd. increased 2.5% to ₹483.25 after the company reported a rise in revenue and earnings in the September quarter.
Consolidated operating revenue jumped 15.6% from a year ago to 22,281.9 crore, and net income advanced 1.8% to 5,054.4 crore.
Godrej Consumer Products Ltd. increased 2.5% to ₹1,286.95 after the company reported muted quarterly results in the September quarter.
Consolidated revenue in the fiscal second quarter increased 1.8% to ₹3,666.3 crore, and net income advanced 13.5% to ₹491.3 crore.
The company also declared a cash dividend payment of ₹5 per share payable on November 23 to shareholders on record on November 1.
Dixon Technologies Ltd. declined 5.8% to ₹14,189.25 despite the electronic manufacturing service provider reporting a surge in revenue and profit in the September quarter.
Consolidated revenue in the fiscal second quarter jumped twofold to ₹11,534.08 crore from ₹4,943.18 crore, and net income soared more than threefold to ₹411.7 crore from ₹113.36 crore a year earlier, respectively.
Indusind Bank plunged 15% to ₹1,088.05 after the bank reported a decline in quarterly profit amid a sharp jump in credit loss provisions.
Net interest income in the September quarter increased 5% to ₹5,347 crore, and net interest margin eased to 4.08% from 4.29% a year earlier and 4.25% in the previous quarter.
Net profit plunged 39.5% to ₹1,331 crore from ₹2,202 crore, and gross non-performing asset ratio advanced to 2.11% from 1.93% a year ago, respectively.
The bank increased its provision for loan losses by a whopping 87% to ₹1,820 crore from ₹974 crore a year ago.
Diamines & Chemicals dropped 3.4% to ₹491.95 after the company reported a decline in revenue and profit in its latest quarter.
Consolidated revenue in the September quarter declined 3.7% to ₹19.2 crore from ₹19.9 crore and net income fell 28% to ₹2.5 crore from ₹3.4 crore a year earlier.
- Brian Turner
- 24 Oct, 2024
- Washington, D.C.
Single-family home sales in September increased 6.3% from a year ago to a seasonally adjusted annual rate of 738,000, according to an estimate released by the U.S. Census Bureau.
Home sales rose 4.1% from the previous month, the highest level since May 2023, following a downwardly revised 709,000 in August.
The median price of a new home increased to $426,300 from $426,100, and the average price decreased to $501,000 from $515,000 a year earlier, respectively.
The seasonally adjusted estimate of new houses for sale at the end of September was 470,000, representing a supply of 7.6 months at the current sales rate.
Sales decreased 22.2% in the Northeast to 28,000 and declined 10.9% in the West to 156,000, but rose 14.9% to 77,000 in the Midwest and increased 14.7% to 477,000 in the South.
- Alexander Garcia
- 24 Oct, 2024
- Miami
Benchmark indexes on Wall Street lost early momentum and struggled to stay above the flatline as investors reviewed a batch of lackluster earnings.
The S&P 500 index added 0.2% and the Nasdaq Composite gained 0.6% as investors reviewed the fresh batch of earnings.
Tesla, UPS, Lam Research, and Whirlpool advanced after reporting quarterly results that met or exceeded investor expectations.
Yield on 10-year Treasury notes edged slightly higher and stayed near a three-month high of 4.24% as investors dialed down their expectations of another aggressive rate cut at the next two-day policy meeting ending on November 7.
About 170 companies so far in the S&P 500 index have reported quarterly results, and nearly 150 have either met or surpassed analysts' estimates, according to the data compiled by Ticker.com.
Banks, financial brokers, and industrial and consumer product makers have generally reported higher earnings and sales in their latest quarter.
About 400 companies are scheduled to report their quarterly results next week.
Initial weekly jobless claims declined 15,000 to 227,000 during the week ending on October 19, the lowest in three weeks, according to the data released by the Department of Labor.
Continuing jobless claims, which lags by a week, were 1.897 million, an increase of 28,000 from the previous week's revised level, and rose to the highest level since November 13, 2021, when it was 1.974 million.
U.S. New Home Sales Jump In September
Single-family home sales in September increased 6.3% from a year ago to a seasonally adjusted annual rate of 738,000, according to an estimate released by the U.S. Census Bureau.
Home sales rose 4.1% from the previous month, the highest level since May 2023, following a downwardly revised 709,000 in August.
The median price of a new home increased to $426,300 from $426,100, and the average price decreased to $501,000 from $515,000 a year earlier, respectively.
The seasonally adjusted estimate of new houses for sale at the end of September was 470,000, representing a supply of 7.6 months at the current sales rate.
Sales decreased 22.2% in the Northeast to 28,000 and declined 10.9% in the West to 156,000, but rose 14.9% to 77,000 in the Midwest and increased 14.7% to 477,000 in the South.
U.S. Indexes and Treasury Yields
The S&P 500 index increased 0.2% to 5,806.38, the Nasdaq Composite rose 0.6% to 18,379.73, and the Russell 2000 index decreased 0.3% to 2,207.53.
For the year so far as of Wednesday, the S&P 500 index is up 22.2%, the Nasdaq Composite has advanced 23.8%, and the Russell 2000 index has gained 9.9%.
The yield on 2-year Treasury notes edged higher to 4.07%, 10-year Treasury notes inched up to 4.22%, and 30-year Treasury bonds inched higher to 4.50%.
WTI crude oil decreased $0.78 to $69.98 a barrel, and natural gas prices edged up 9 cents to $2.43 a thermal unit.
Gold fell by $17.31 to $2,734.67 an ounce, and silver decreased by $0.24 to $33.59.
The dollar index, which weighs the US currency against a basket of foreign currencies, edged higher to 104.19.
U.S. Stock Movers
IBM declined 4.2% to $223.01 after the technology company reported weaker-than-expected revenue in the third quarter.
Tesla Inc. jumped 15.6% to $249.57 after the electric vehicle maker reported better-than-expected profit in the third quarter.
Boeing declined 1.9% to $154.15 after workers rejected a wage agreement between the machinists' union and the aviation company, extending the 5-weeklong strike.
United Parcel Service increased 6.2% to $139.19 after the company reported better-than-expected third quarter earnings and revenue.
Lam Research Corporation increased 3% to $75.10 after the advanced semiconductor equipment maker's earnings surpassed market expectations.
European Markets Halt 3-Day Slide After Positive Quarterly Results, Renault and Barclays Shine
European markets advanced in Thursday's trading as investors reacted positively to the latest batch of quarterly results.
Benchmark indexes in Paris, London, Frankfurt, and Milan edged higher, and bond yields in the region hovered at a two-month low.
Unilever, Renault, Sodexo, Danone, Symrise, Beiersdorf, Michelin, Indivior, Barclays, and Essentra traded higher after positive quarterly results.
On the economic front, investors reviewed the latest update on business activity in the Euro Area.
The HCOB Flash Eurozone Composite PMI inched up to 49.7 in October from a seven-month low of 49.6 in September, according to the latest data from S&P Global.
Service sector activity growth eased slightly and manufacturing downturn softened in the month, driven by a soft demand outlook as new orders declined for the fifth month in a row.
In Asia, market indexes in China declined after investors turned skeptical about the size of the possible fiscal stimulus and the lack of near-term catalysts for earnings.
Benchmark indexes in Japan struggled to stay above the flatline ahead of the national election this Sunday, and the ruling Liberal Democratic Party may lose its majority.
In New York, bond yields rose to a three-month high as traders scaled down bets for an aggressive interest rate cut over the remaining two policy meetings in 2024 amid robust economic data and stable labor market conditions.
Europe Indexes and Yields
The DAX index increased by 0.4% to 19,443.0; the CAC-40 index rose by 0.3% to 7,530.28; and the FTSE 100 index advanced by 0.1% to 8,269.38.
The yield on 10-year German bonds edged lower to 2.26%, French bonds inched higher to 2.98%, the UK gilts edged up to 4.23%, and Italian bonds decreased to 3.46%.
The euro edged lower to $1.08; the British pound inched higher to $1.29; and the U.S. dollar strengthened to 86.54 Swiss cents.
Brent crude decreased $0.73 to $74.21 a barrel, and the Dutch TTF natural gas rose by €0.86 to €42.32 per MWh.
Europe Stock Movers
Barclays PLC jumped 3.9% to 247.40 pence after the UK-based bank reported better-than-expected third quarter results.
Indivior PLC jumped 10% to 722.0 pence after the UK-based pharmaceutical company reported strong third-quarter results.
Essentra PLC rose 0.8% to 152.20 pence after the essential components manufacturer reiterated that adjusted operating earnings in the fiscal year 2024 would be in line with market expectations.
Anglo American plc advanced 4.3% to 2,422.50 pence after the resource company raised its annual production outlook for platinum and nickel.
The company estimated platinum production to reach between 3.7 and 3.9 million ounces and nickel production to advance to 38,000 to 39,000 tons, backed by stable production conditions at its mines in Brazil.
Abrdn dropped 9.3% to 148.75 pence after the Scottish asset management company reported a larger-than-expected fund outflow in the third quarter.
Renault SA gained 6.5% to €42.95 after the French automaker reported a rise in sales in the third quarter and reiterated its annual outlook.
Hermes International jumped 1.6% to €2,093.0 after the French luxury goods maker reported an 11.3% increase in sales in the third quarter.
Danone SA gained 2.4% to €65.50 after the French dairy product maker reported higher-than-expected organic sales growth in the third quarter.
Michelin SA declined 5.7% to €31.87 after the French tire maker lowered its annual sales volume outlook.
Japan Heads for Post-Election Chaos as Leading Parties Struggle to Win Voter's Attention
Investors remained cautious in Tokyo ahead of the general election this Sunday, and the yen hovered near a three-month low.
The Nikkei 225 stock average and the broader Topix index lacked direction and traded around the flatline amid uncertainty about the outcome of the national election.
The Liberal Democratic Party is struggling to win voters' attention, and the party may struggle to return to power for the first time in several years.
465 seats are up for grabs in Japan's lower house election, and the latest poll suggest that the ruling LDP party may lack enough seats to win outright majority.
LDP may lose its majority of 247 seats, and polls suggest that the corruption-tainted party may win as few as 199 seats.
The election uncertainty and the possible chaos in the aftermath are keeping foreign investors on the sidelines.
On the economic front, Japan's private sector activities contracted for the first time in four months in October.
The Au Jibun Japan Manufacturing PMI eased to 49.0 in October from 49.7 in September, and the services index slipped to 49.3 from 53.1, respectively.
The service industry index contracted for the first time in four months and fell to the lowest level since February 2022 as domestic and international customers held orders amid economic weakness.
Japan Stock Movers
The Nikkei 225 Stock Average increased 0.3% to 38,195.56, and the broader Topix index added 0.03% to 2,637.77.
The yen traded at 152.22 against the U.S. dollar ahead of election uncertainty, as leading parties are likely to have enough votes to form the next government.
Tokyo Electron increased 1.2% to ¥23,025.0, Advantest gained 2.3% to ¥8,053.0, and Lasertec Corp. jumped 2% to ¥21,460.0.
Marubeni Corp. declined 0.8% to ¥2,338.0, Mitsui & Company decreased 0.2% to ¥3,100.0, and Itochu Corp. fell 0.6% to ¥7,554.0.
Konica Minolta advanced for the second day in a row and jumped 5.2% to ¥561.20, IHI Corp. added 2.6% to ¥7,750.0, and the video game arcade operator Bandai Namco increased 3.3% to ¥3,197.0.
China Stocks Lack Near-term Catalysts to Support Recent Market Surge
Stock market indexes in China and Hong Kong eased as investors booked profit for the second day in a row.
The Hang Seng and CSI 300 indexes fell 1% as investors debated the size of the fiscal stimulus and its effectiveness on corporate earnings.
The mainland-focused CSI 300 index has jumped 35% over the three-week period to October 8; however, the market index has eased over the last two weeks.
The package of monetary stimulus measures is not strong enough to lift earnings in the near future, which could force investors to wait six months before the first evidence of earnings is available.
Moreover, additional large fiscal measures are not likely to be released after the U.S. presidential election on November 5, because a change in leadership could have a significant impact on the relationship between the U.S. and China.
In addition, earnings growth in the third and fourth quarters is likely to be weak and not provide much-needed support for the indexes to advance further from the current level.
Investors are likely to see the impact of monetary policy measures announced by the People's Bank of China only in the first quarter of 2025, testing the patience of investors in the near future.
Market sentiment in Hong Kong was further dented after investors lowered their expectations of aggressive rate cuts in the U.S. over the remaining two policy meetings in 2024.
The S&P 500 index and the Nasdaq Composite dropped as much as 1.5% in overnight trading in New York as yield on 10-year Treasury notes advanced to a 3-month high of 4.27%, following a string of robust economic data flows and worry about the growing budget deficit.
China Stock Movers
The Hang Seng Index declined 1.1% to 20,507.18 and the CSI 300 index dropped 1% to 3,931.11.
Sands China increased 2.7% to HK $19.16 after the casino operator in Macau reported a 16% rise in earnings in the third quarter.
Horizon Robotics soared to HK $4.38 after the autonomous driving technology firm priced its initial public offering at HK $3.99 per share and raised US$696 million.
The company sold 1.355 billion shares, and its Hong Kong tranche of 203.7 million shares was oversubscribed by 33.8 times and its international tranche of 1.15 billion by 13.8 times.
Baillie Gifford Overseas Limited, an associate of Scottish Mortgage Investment Trust plc, will retain a stake of 3.89% in the company after the global offering.
Alibaba Group declined 3.7% to HK $93.70, Tencent Holdings dropped 1.7% to HK $420.80, and JD.com Inc. fell 2.8% to HK $154.60.