Global Markets React to Local Earnings as Attention Shifts Away from Central Banks

Wall Street indexes traded around the flatline, and investors reviewed the latest batch of earnings. 

Investors turned cautious a day after the Federal Reserve poured cold water over imminent rate-cut expectations, citing elevated inflation.

The S&P 500 index increased 0.2%, and the Nasdaq Composite declined 0.2%, and investors reviewed a slew of corporate results, including updates from Microsoft, Meta, Tesla, and IBM.

Investor sentiment has been on the defensive after the emergence of a cheaper chatbot from a Chinese startup raised worries about the need for expensive computer servers using advanced chips made by American companies.

Moreover, market sentiment wavered after the GDP growth in the fourth quarter slowed to an annual pace of 2.3%, the U.S. Bureau of Economic Analysis reported Thursday in its flash estimate.

The U.S. economy expanded at the slowest pace in three quarters and slowed from 3.1% in the third quarter, according to the preliminary estimate released by the government agency.

The Federal Reserve left the fed funds rate range unrevised between 4.25% and 4.50% and halted its rate-cutting cycle after trimming in the previous three meetings. 

Policymakers are likely to hold rates steady at the end of the next meeting on March 19, until a solid evidence emerges of sustained decline in inflation. 

While the Fed's tough talk on inflation garners headlines, interest rates have been far from restrictive for more than a year, and inflation in the service sector and core inflation have been significantly higher than the target rate of 2% and showing no sign of easing for more than nine months.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.2% to 6,050.44, the Nasdaq Composite edged down 0.1% to 19,609.31, and the Russell 2000 index traded up 1.2% to 2,310.52.

The yield on 2-year Treasury notes edged lower to 4.21%, 10-year Treasury notes dropped to 4.50%, and 30-year Treasury bonds eased to 4.74%.

WTI crude oil decreased $0.12 to $72.52 a barrel, and natural gas prices edged higher by $0.02 to $3.19 a thermal unit.

Gold rose by $21.62 to 2,781.76 an ounce, and silver edged up by $0.35 to $31.21.

The dollar index, which weighs the US currency against a basket of foreign currencies, dropped 0.03 to 107.98 and traded at a two-year high.

U.S. Stock Movers

Microsoft Corp dropped 4.6% to $421.85 despite the company posting strong results for its fiscal 2025 second quarter ending in December, helped by a 21% increase in cloud service sales.

However, the software company's revenue outlook in the current quarter disappointed some investors. 

Meta Platforms Inc surged 2.3% to $692 after the parent company of Facebook, Instagram, and WhatsApp posted strong earnings for the fourth quarter ending in December.

Tesla gained 3% to $400.86 after the electric vehicle maker posted mixed earnings in the fourth quarter ending in December.

IBM soared 9.4% to $250.29 after the legacy technology company reported fourth-quarter results that surpassed market expectations. 

The company said its software business expanded by double digits in the second half, and the generative artificial intelligence business order book increased by $2 billion to $5 billion. 

UPS plunged 14.2% to $114.72 after the parcel delivery company said it reached a deal with Amazon, its largest customer, to lower shipment volume by 50% by the second half of 2026. 

UPS was under pressure after the company reported better-than-expected earnings, but revenue fell short of market expectations in the fourth quarter. 

European Markets Extended Gains After ECB Cuts Rates

European stock market indexes extended the three-day rally, and investors welcomed rate decisions by the European Central Bank. 

Benchmark indexes in Frankfurt, Paris, Milan, and London advanced after the central bank delivered on the widely anticipated 25 basis point rate cut.

The European Central Bank lowered its deposit rate to 2.75%, its main refinancing rate to 2.9%, and its marginal lending rate to 3.15%, effective February 5. 

The central bank said inflationary pressures are still elevated, largely because of the delayed wage increases and price adjustments, but wage growth is moderating, and corporations are absorbing some of the higher costs of operations. 

The central bank signaled that additional rate cuts are likely if inflation continues to fall as estimated by policymakers. 

"The disinflation process is well on track. Inflation has continued to develop broadly in line with the staff projections and is set to return to the Governing Council’s 2% medium-term target in the course of this year," the ECB noted in a statement released after the meeting. 

Most measures of underlying inflation suggest that inflation will settle at around the target on a sustained basis, according to the governing council's estimate. 

Eurozone GDP Growth Unexpectedly Stalled In Fourth Quarter

The Euro Area's GDP in the fourth quarter unexpectedly stalled from the previous quarter, Eurostat, the statistical agency of the region, reported Wednesday.

Economic activities rose at an annual pace of 0.9% in the fourth quarter, but the growth was overshadowed by the ongoing weakness in Germany and France.

For the full year 2024, GDP expanded at an annual pace of 0.7% in the euro area and 0.8% in the European Union. 

Separately, France's statistical agency, INSEE, reported economic growth unexpectedly contracted for the first time in nearly two years in the fourth quarter.

Gross domestic product shrank 0.1% sequentially after expanding at 0.3% in the third quarter.

Two separate reports supported the case for the European Central Bank to continue to lower key lending rates and soften the economic contraction.

Spain's Annual CPI Jumped to 7-Month High in January

Spain's annual inflation rate advanced for the fourth consecutive month and reached the highest in seven months, the National Statistics Institute reported Thursday.

The annual pace of inflation in January rose to 3.0% from 2.8% in December, largely driven by an increase in fuel prices.

However, the core rate of inflation, which excludes volatile food and energy prices, slowed to 2.4% from a four-month high of 2.6% in December.

From the previous month, the consumer price inflation increased by 0.2%, following a 0.5% rise in December. 

However, the EU-harmonized consumer inflation advanced at an annual pace of 2.9% year-on-year and decreased by 0.1% from the previous month.

Europe Indexes and Yields

The DAX index moved higher by 0.3% to 21,694.57; the CAC-40 index climbed 0.5% to 7,909.78; and the FTSE 100 index advanced by 0.2% to 8,574.94.

The yield on 10-year German bonds inched lower to 2.53%, French bonds declined to 3.27%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.62%.

The euro was flat at $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.75 Swiss cents.

Brent crude decreased $0.43 to $76.15 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

Europe Stock Movers

Nokia gained 2.3% to €4.40 after the mobile technology company posted strong fourth-quarter results ending in December.

ABB Ltd. increased 1.3% to CHF 52.28 after the Swiss engineering company reported an increase in revenue, profit, and orders in the fourth quarter.

The company's board also proposed to increase an ordinary dividend to 0.90 Swiss franc compared to 0.84 Swiss franc in the previous year.

The company also proposed a new $1.5 billion stock repurchase plan, ending on January 28, 2026.

Deutsche Bank decreased 3.5% to €18.85, and Germany's largest bank announced a larger-than-expected provision decline in earnings in the fourth quarter and 2024 as a result of a higher provision for legal expenses and restructuring costs.

Electrolux AB dropped 6% to 103.45 krona after the Swedish home appliance maker swung to a profit in the fourth quarter, but the company signaled market uncertainty in North America.

The appliance maker skipped a dividend for the third year in a row.

H&M declined 5.1% to €12.81 after the Swedish apparel retailer reported weaker-than-expected sales in the fourth quarter.

Sensex Extends 3-Day Rally and Erases Weekly Losses

Stocks in Mumbai extended gains for the third session in a row, and benchmark indexes erased sharp losses of Monday. 

The S&P 500 and Nifty indexes advanced 0.4% as investors reviewed the latest batch of earnings and debated economic growth outlook ahead of the release of the Union Budget this weekend. 

Financial markets are looking forward to the government's plan to increase renewable electric power production, improve water distribution, modernize the railway network, and provide incentives to expand the manufacturing sector. 

The Reserve Bank of India is set to announce its rate decisions next week, and investors are anticipating the central bank to hold rates steady. 

The U.S. Federal Reserve left its key lending rate range unrevised, citing elevated inflation, after trimming rates in three previous meetings in a row. 

The Fed funds rate range was left unrevised between 4.25% and 4.50%, and it was confirmed that the policymakers are struggling to lower inflation to its long-term target rate of 2% despite eleven rate hikes over 2022 and 2023. 

European markets advanced following the latest batch of positive earnings, and investors held out for a rate cut of at least 25 basis points after the policy meeting next week. 

Stock Indexes and Bond Yields

The Sensex index increased by 0.4% to 76,855.46, and the Nifty index increased by 0.5% to 23,290.70.

On the Mumbai stock exchange, 44 stocks traded at their 52-week highs, and 56 stocks traded at their 52-week lows.

The yield on the 10-year Indian government bonds inched lower to 6.7%, and the Indian rupee hovered near a record and traded at 86.57 against the U.S. dollar.

The gold price increased by 0.3% to ₹81,128 per ten grams, and silver edged up by 0.6% to ₹92,400 per kilo.

Crude oil rose by 0.1% to ₹6,297 per barrel, and natural gas rose by 0.2% to ₹274.1 per thermal unit.

Stock Movers

Blue Dart Express Ltd. increased 0.4% to ₹6431.65, and the company reported an 8% increase in revenue and a 9% decline in profit in the December quarter.

Tata Motors Ltd. dropped 8.1% to ₹691.80, and the company reported an increase in revenue and a 22% decline in profit in the December quarter.

Maruti Suzuki India Ltd. increased 3% to ₹12,011.50 after the company reporting an increase in revenue and earnings. 

Ambuja Cements Ltd. decreased 4% to ₹522.20 after the company reported a 24% increase in net income but margins fell sharply in the December quarter. 

Indian Bank increased 6% to ₹544.70, and the company reported a marginal increase in earnings in the fiscal third quarter.

Adani Power Ltd. decreased 0.4% to ₹520.50 after the company reporting an increase in revenue and earnings in the fiscal third quarter. 

Voltas Ltd. dropped 11.2% to ₹1,449.95 despite the company swinging to a profit from a year ago in the December quarter.

Bajaj Finance Limited increased 4.5% to ₹8110.15, and the company reported revenue in the December quarter rose 28% from a year ago.

U.S. Movers: IBM, Meta Platforms, Microsoft, Tesla, UPS

Microsoft Corp dropped 4.6% to $421.85 despite the company posting strong results for its fiscal 2025 second quarter ending in December, helped by a 21% increase in cloud service sales.

However, the software company's revenue outlook in the current quarter disappointed some investors. 

Revenue increased to $69.63 billion from $62.02 billion; net income surged to $24.11 billion from $21.87 billion, and earnings per diluted share rose to $3.23 from $2.93 a year ago.

Cash and cash equivalents declined to $54.07 billion from $57.23 billion, driven by fewer short-term investments.

“Our artificial intelligence (AI) business has surpassed an annual sales run rate of $13 billion, up 175% year-over-year,” said Satya Nadella, chairman and chief executive officer of Microsoft.

Meta Platforms Inc surged 2.3% to $692 after the parent company of Facebook, Instagram, and WhatsApp posted strong earnings for the fourth quarter ending in December.

Revenue climbed 21% to $48.38 billion from $40.11 billion; net income jumped 49% to $20.84 billion from $14.02 billion, and earnings per diluted share rose to $8.02 from $5.33 a year ago.

Cash and cash equivalents increased to $43.89 billion from $41.86 billion a year earlier, brining to significantly higher total assets and lower income taxes.

Looking ahead to fiscal first quarter of 2025, the company estimates revenue of $39.5 billion to $41.8 billion, despite higher infrastructure costs. 

In the fourth quarter total costs and expenses increased to $25.02 billion from $23.73 billion a year earlier. 

Tesla gained 3% to $400.86 after the electric vehicle maker posted mixed earnings in the fourth quarter ending in December.

Revenue decreased 8% to $19.8 billion from $21.56 billion; net income slumped 71% to $2.32 billion from $7.93 billion, and earnings per diluted share fell to 66 cents from $2.27 a year ago.

Cash flow from operating activities declined to $2.33 billion from $7.94 billion a year earlier.

For the full year, model Y became the best-selling vehicle in China, and overall car sales also climbed in Europe, South Korea and the Philippines. 

Semi-factory construction continued in the fourth quarter, with first truck builds scheduled to start by the end of 2025 and ramp beginning in early 2026.

The company is planning to ramp up Cybercab production at its Gigafactory in Texas in 2026.

IBM soared 9.4% to $250.29 after the legacy technology company reported fourth-quarter results that surpassed market expectations. 

The company said its software business expanded by double digits in the second half, and the generative artificial intelligence business order book increased by $2 billion to $5 billion. 

UPS plunged 14.2% to $114.72 after the parcel delivery company said it reached a deal with Amazon, its largest customer, to lower shipment volume by 50% by the second half of 2026. 

UPS was under pressure after the company reported better-than-expected earnings, but revenue fell short of market expectations in the fourth quarter. 

U.S. Movers: IBM, Meta Platforms, Microsoft, Tesla, UPS

Microsoft Corp dropped 4.6% to $421.85 despite the company posting strong results for its fiscal 2025 second quarter ending in December, helped by a 21% increase in cloud service sales.

However, the software company's revenue outlook in the current quarter disappointed some investors. 

Revenue increased to $69.63 billion from $62.02 billion; net income surged to $24.11 billion from $21.87 billion, and earnings per diluted share rose to $3.23 from $2.93 a year ago.

Cash and cash equivalents declined to $54.07 billion from $57.23 billion, driven by fewer short-term investments.

“Our artificial intelligence (AI) business has surpassed an annual sales run rate of $13 billion, up 175% year-over-year,” said Satya Nadella, chairman and chief executive officer of Microsoft.

Meta Platforms Inc surged 2.3% to $692 after the parent company of Facebook, Instagram, and WhatsApp posted strong earnings for the fourth quarter ending in December.

Revenue climbed 21% to $48.38 billion from $40.11 billion; net income jumped 49% to $20.84 billion from $14.02 billion, and earnings per diluted share rose to $8.02 from $5.33 a year ago.

Cash and cash equivalents increased to $43.89 billion from $41.86 billion a year earlier, brining to significantly higher total assets and lower income taxes.

Looking ahead to fiscal first quarter of 2025, the company estimates revenue of $39.5 billion to $41.8 billion, despite higher infrastructure costs. 

In the fourth quarter total costs and expenses increased to $25.02 billion from $23.73 billion a year earlier. 

Tesla gained 3% to $400.86 after the electric vehicle maker posted mixed earnings in the fourth quarter ending in December.

Revenue decreased 8% to $19.8 billion from $21.56 billion; net income slumped 71% to $2.32 billion from $7.93 billion, and earnings per diluted share fell to 66 cents from $2.27 a year ago.

Cash flow from operating activities declined to $2.33 billion from $7.94 billion a year earlier.

For the full year, model Y became the best-selling vehicle in China, and overall car sales also climbed in Europe, South Korea and the Philippines. 

Semi-factory construction continued in the fourth quarter, with first truck builds scheduled to start by the end of 2025 and ramp beginning in early 2026.

The company is planning to ramp up Cybercab production at its Gigafactory in Texas in 2026.

IBM soared 9.4% to $250.29 after the legacy technology company reported fourth-quarter results that surpassed market expectations. 

The company said its software business expanded by double digits in the second half, and the generative artificial intelligence business order book increased by $2 billion to $5 billion. 

UPS plunged 14.2% to $114.72 after the parcel delivery company said it reached a deal with Amazon, its largest customer, to lower shipment volume by 50% by the second half of 2026. 

UPS was under pressure after the company reported better-than-expected earnings, but revenue fell short of market expectations in the fourth quarter. 

Wall Street Reviews Mega-Cap Tech Earnings, Fourth Quarter GDP Growth Slowest In Three Quarters

Wall Street indexes lacked direction in Thursday's trading, and investors turned cautious a day after the Federal Reserve poured cold water over imminent rate cut expectations, citing elevated inflation.

The S&P 500 index decreased 0.2%, and the Nasdaq Composite declined 0.4%, and investors reviewed a slew of corporate results, including updates from Microsoft, Meta, Tesla, and IBM.

Investor sentiment has been on the defensive after the emergence of cheaper chatbot from a Chinese startup raised worries about the need for expensive computer servers using advanced chips made by American companies.

Moreover, market sentiment wavered after the GDP growth in the fourth quarter slowed to an annual pace of 2.3%, the U.S. Bureau of Economic Analysis reported Thursday in its flash estimate.

The U.S. economy expanded at the slowest pace in three quarters and slowed from 3.1% in the third quarter, according to the preliminary estimate released by the government agency.

The Federal Reserve left the fed funds rate range unrevised between 4.25% and 4.50% and halted its rate-cutting cycle after trimming in the previous three meetings. 

Policymakers are likely to hold rates steady at the end of the next meeting on March 19, until a solid evidence emerges of sustained decline in inflation. 

While the Fed's tough talk on inflation garners headlines, interest rates have been far from restrictive for more than a year, and inflation in the service sector and core inflation have been significantly higher than the target rate of 2% and showing no sign of easing for more than nine months.

U.S. Indexes and Treasury Yields

The S&P 500 index increased 0.3% to 6,057.51, the Nasdaq Composite edged up 0.2% to 19,669.37, and the Russell 2000 index was down 0.3% to 2,283.10.

The yield on 2-year Treasury notes edged lower to 4.21%, 10-year Treasury notes dropped to 4.50%, and 30-year Treasury bonds eased to 4.74%.

WTI crude oil decreased $0.12 to $72.52 a barrel, and natural gas prices edged higher by $0.02 to $3.19 a thermal unit.

Gold rose by $21.62 to 2,781.76 an ounce, and silver edged up by $0.35 to $31.21.

The dollar index, which weighs the US currency against a basket of foreign currencies, dropped 0.03 to 107.98 and traded at a two-year high.

U.S. Stock Movers

Microsoft Corp dropped 4.6% to $421.85 despite the company posting strong results for its fiscal 2025 second quarter ending in December, helped by a 21% increase in cloud service sales.

However, the software company's revenue outlook in the current quarter disappointed some investors. 

Meta Platforms Inc surged 2.3% to $692 after the parent company of Facebook, Instagram, and WhatsApp posted strong earnings for the fourth quarter ending in December.

Tesla gained 3% to $400.86 after the electric vehicle maker posted mixed earnings in the fourth quarter ending in December.

IBM soared 9.4% to $250.29 after the legacy technology company reported fourth-quarter results that surpassed market expectations. 

The company said its software business expanded by double digits in the second half, and the generative artificial intelligence business order book increased by $2 billion to $5 billion. 

UPS plunged 14.2% to $114.72 after the parcel delivery company said it reached a deal with Amazon, its largest customer, to lower shipment volume by 50% by the second half of 2026. 

UPS was under pressure after the company reported better-than-expected earnings, but revenue fell short of market expectations in the fourth quarter. 

Wall Street Reviews Mega-Cap Tech Earnings, Fourth Quarter GDP Growth Slowest In Three Quarters

Wall Street indexes lacked direction in Thursday's trading, and investors turned cautious a day after the Federal Reserve poured cold water over imminent rate cut expectations, citing elevated inflation.

The S&P 500 index decreased 0.2%, and the Nasdaq Composite declined 0.4%, and investors reviewed a slew of corporate results, including updates from Microsoft, Meta, Tesla, and IBM.

Investor sentiment has been on the defensive after the emergence of cheaper chatbot from a Chinese startup raised worries about the need for expensive computer servers using advanced chips made by American companies.

Moreover, market sentiment wavered after the GDP growth in the fourth quarter slowed to an annual pace of 2.3%, the U.S. Bureau of Economic Analysis reported Thursday in its flash estimate.

The U.S. economy expanded at the slowest pace in three quarters and slowed from 3.1% in the third quarter, according to the preliminary estimate released by the government agency.

The Federal Reserve left the fed funds rate range unrevised between 4.25% and 4.50% and halted its rate-cutting cycle after trimming in the previous three meetings. 

Policymakers are likely to hold rates steady at the end of the next meeting on March 19, until a solid evidence emerges of sustained decline in inflation. 

While the Fed's tough talk on inflation garners headlines, interest rates have been far from restrictive for more than a year, and inflation in the service sector and core inflation have been significantly higher than the target rate of 2% and showing no sign of easing for more than nine months.

U.S. Stock Movers

Microsoft Corp dropped 4.6% to $421.85 despite the company posting strong results for its fiscal 2025 second quarter ending in December, helped by a 21% increase in cloud service sales.

However, the software company's revenue outlook in the current quarter disappointed some investors. 

Meta Platforms Inc surged 2.3% to $692 after the parent company of Facebook, Instagram, and WhatsApp posted strong earnings for the fourth quarter ending in December.

Tesla gained 3% to $400.86 after the electric vehicle maker posted mixed earnings in the fourth quarter ending in December.

IBM soared 9.4% to $250.29 after the legacy technology company reported fourth-quarter results that surpassed market expectations. 

The company said its software business expanded by double digits in the second half, and the generative artificial intelligence business order book increased by $2 billion to $5 billion. 

UPS plunged 14.2% to $114.72 after the parcel delivery company said it reached a deal with Amazon, its largest customer, to lower shipment volume by 50% by the second half of 2026. 

UPS was under pressure after the company reported better-than-expected earnings, but revenue fell short of market expectations in the fourth quarter. 

Europe Movers: ABB Ltd., Deutsche Bank, Electrolux, H&M, Nokia, Shell plc, SThree Micro, Wizz Air

Stock market indexes in Europe extended a three-day rally ahead of the widely anticipated rate cut decisions. 

The eurozone economy unexpectedly stalled in the fourth quarter, following a weakness in France and Germany. Spain's inflation accelerated to a seven-month high in January. 

The DAX index moved higher by 0.3% to 21,694.57; the CAC-40 index climbed 0.5% to 7,909.78; and the FTSE 100 index advanced by 0.2% to 8,574.94.

The yield on 10-year German bonds inched lower to 2.53%, French bonds declined to 3.27%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.62%.

Nokia gained 2.3% to €4.40 after the mobile technology company posted strong fourth-quarter results ending in December.

Net sales surged 10% to €5.98 billion from €5.42 billion; operating profit jumped 72% to €917 million from €534 million, and earnings per diluted share swung to profit of 15 euro cents from a loss of 0.01 euro cents a year ago.

Comparable sales increased 10%, and gross margin expanded to 47.2% from 44.7% a year earlier.

Looking ahead to fiscal year 2025, Nokia estimates comparable operating profit between €1.9 billion and €2.4 billion, and free cash flow conversion between 50% and 80%.

The company proposed to pay a dividend of 14 euro cents on February 13 to shareholders on record as of February 4.

Nokia plans to return up to €600 million of cash to shareholders in tranches over a period of two years, according to its share buyback program started on March 20, 2024.

ABB Ltd. increased 1.3% to CHF 52.28 after the Swiss engineering company reported an increase in revenue, profit, and orders in the fourth quarter.

The company's board also proposed to increase an ordinary dividend to 0.90 Swiss franc compared to 0.84 Swiss franc in the previous year.

The company also proposed a new $1.5 billion stock repurchase plan, ending on January 28, 2026.

Deutsche Bank decreased 3.5% to €18.85, and Germany's largest bank announced a larger-than-expected provision decline in earnings in the fourth quarter and 2024 as a result of a higher provision for legal expenses and restructuring costs.

Electrolux AB dropped 6% to 103.45 krona after the Swedish home appliance maker swung to a profit in the fourth quarter, but the company signaled market uncertainty in North America.

The appliance maker skipped a dividend for the third year in a row.

Net sales increased 7% to 37.97 billion krona from 35.64 billion krona, income swung to profit of 150 million krona from a loss of 4.11 billion, and earnings per diluted share swung to profit of 56 krona cents from a loss of 15.23 krona a year ago.

Operating cash flow after investments declined to 2.66 billion krona from 3.87 billion krona a year earlier.

Looking ahead to fiscal year 2025 the company estimates reduced product costs and therefore earnings of 3.5 billion krona to 4.0 billion krona.

Wizz Air plunged 13% to 1,192 pence after the deep discount airline posted weak results for the fiscal third quarter 2025 ending in December.

Revenue declined 10.5% to €1.18 billion from €1.06 billion, and net loss widened to €241.1 million from a loss of €105.4 million a year ago.

Net debt climbed 7.3% to €5.14 billion from €4.79 billion a year earlier, despite a 0.7% increase of total cash.

H&M declined 5.1% to €12.81 after the Swedish apparel retailer reported weaker-than-expected sales in the fourth quarter.

Net sales fell to 62.19 billion krona from 62.65 billion; profit surged to 3.08 billion krona from 1.57 billion krona, and earnings per diluted share rose to 1.92 krona from 0.97 krona a year ago.

Cash and cash equivalents declined to 17.34 billion krona from 26.4 billion a year earlier, impacted by the later occurrence of Black Friday.

However, sales geared up in December and January, in a positive start to the new fiscal year, as online sales remain strong and customers welcome the women’s fashion collections and the company’s bargain prices.

Shell Plc gained 1.5% to 2,633 pence after the Anglo-Dutch oil and gas company posted strong results for the fourth quarter ending in December.

Income attributable to shareholders increased to $928 million from $474 million, and earnings per share rose to 15 cents from 0.07 cents a year ago.

Cash flow from operations jumped to $13.16 billion from $12.58 billion a year earlier, driven by lower debts and expenses.

Shell proposed a 4% increase in dividends to 36 cents per share and launched another share buyback program of $3.5 billion, which is expected to be completed over the next three months.

STMicroelectronics NV slumped 5.5% to €22.47 after the semiconductor company posted mixed results for its fourth quarter ending in December.

Revenue declined 22.4% to $3.32 billion from $4.28 billion; net income slumped 68.3% to $321 million from $1.08 billion, and earnings per diluted share fell 67.5% to 37 cents from $1.14 a year ago.

Free cash flow decreased to $128 million from $1.48 billion a year earlier.

For the first quarter of fiscal 2025 the company estimates net revenue of $2.51 billion, a decrease of 24.4% sequentially, and gross margin of 33.8%.

Europe Movers: ABB Ltd., Deutsche Bank, Electrolux, H&M, Nokia, Shell plc, SThree Micro, Wizz Air

Stock market indexes in Europe extended a three-day rally ahead of the widely anticipated rate cut decisions. 

The eurozone economy unexpectedly stalled in the fourth quarter, following a weakness in France and Germany. Spain's inflation accelerated to a seven-month high in January. 

The DAX index moved higher by 0.3% to 21,694.57; the CAC-40 index climbed 0.5% to 7,909.78; and the FTSE 100 index advanced by 0.2% to 8,574.94.

The yield on 10-year German bonds inched lower to 2.53%, French bonds declined to 3.27%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.62%.

Nokia gained 2.3% to €4.40 after the mobile technology company posted strong fourth-quarter results ending in December.

Net sales surged 10% to €5.98 billion from €5.42 billion; operating profit jumped 72% to €917 million from €534 million, and earnings per diluted share swung to profit of 15 euro cents from a loss of 0.01 euro cents a year ago.

Comparable sales increased 10%, and gross margin expanded to 47.2% from 44.7% a year earlier.

Looking ahead to fiscal year 2025, Nokia estimates comparable operating profit between €1.9 billion and €2.4 billion, and free cash flow conversion between 50% and 80%.

The company proposed to pay a dividend of 14 euro cents on February 13 to shareholders on record as of February 4.

Nokia plans to return up to €600 million of cash to shareholders in tranches over a period of two years, according to its share buyback program started on March 20, 2024.

ABB Ltd. increased 1.3% to CHF 52.28 after the Swiss engineering company reported an increase in revenue, profit, and orders in the fourth quarter.

The company's board also proposed to increase an ordinary dividend to 0.90 Swiss franc compared to 0.84 Swiss franc in the previous year.

The company also proposed a new $1.5 billion stock repurchase plan, ending on January 28, 2026.

Deutsche Bank decreased 3.5% to €18.85, and Germany's largest bank announced a larger-than-expected provision decline in earnings in the fourth quarter and 2024 as a result of a higher provision for legal expenses and restructuring costs.

Electrolux AB dropped 6% to 103.45 krona after the Swedish home appliance maker swung to a profit in the fourth quarter, but the company signaled market uncertainty in North America.

The appliance maker skipped a dividend for the third year in a row.

Net sales increased 7% to 37.97 billion krona from 35.64 billion krona, income swung to profit of 150 million krona from a loss of 4.11 billion, and earnings per diluted share swung to profit of 56 krona cents from a loss of 15.23 krona a year ago.

Operating cash flow after investments declined to 2.66 billion krona from 3.87 billion krona a year earlier.

Looking ahead to fiscal year 2025 the company estimates reduced product costs and therefore earnings of 3.5 billion krona to 4.0 billion krona.

Wizz Air plunged 13% to 1,192 pence after the deep discount airline posted weak results for the fiscal third quarter 2025 ending in December.

Revenue declined 10.5% to €1.18 billion from €1.06 billion, and net loss widened to €241.1 million from a loss of €105.4 million a year ago.

Net debt climbed 7.3% to €5.14 billion from €4.79 billion a year earlier, despite a 0.7% increase of total cash.

H&M declined 5.1% to €12.81 after the Swedish apparel retailer reported weaker-than-expected sales in the fourth quarter.

Net sales fell to 62.19 billion krona from 62.65 billion; profit surged to 3.08 billion krona from 1.57 billion krona, and earnings per diluted share rose to 1.92 krona from 0.97 krona a year ago.

Cash and cash equivalents declined to 17.34 billion krona from 26.4 billion a year earlier, impacted by the later occurrence of Black Friday.

However, sales geared up in December and January, in a positive start to the new fiscal year, as online sales remain strong and customers welcome the women’s fashion collections and the company’s bargain prices.

Shell Plc gained 1.5% to 2,633 pence after the Anglo-Dutch oil and gas company posted strong results for the fourth quarter ending in December.

Income attributable to shareholders increased to $928 million from $474 million, and earnings per share rose to 15 cents from 0.07 cents a year ago.

Cash flow from operations jumped to $13.16 billion from $12.58 billion a year earlier, driven by lower debts and expenses.

Shell proposed a 4% increase in dividends to 36 cents per share and launched another share buyback program of $3.5 billion, which is expected to be completed over the next three months.

STMicroelectronics NV slumped 5.5% to €22.47 after the semiconductor company posted mixed results for its fourth quarter ending in December.

Revenue declined 22.4% to $3.32 billion from $4.28 billion; net income slumped 68.3% to $321 million from $1.08 billion, and earnings per diluted share fell 67.5% to 37 cents from $1.14 a year ago.

Free cash flow decreased to $128 million from $1.48 billion a year earlier.

For the first quarter of fiscal 2025 the company estimates net revenue of $2.51 billion, a decrease of 24.4% sequentially, and gross margin of 33.8%.

Eurozone GDP Growth Stalled In Fourth Quarter, Spain's Inflation Accelerated In January to 7-Month High

European stock market indexes extended the three-day rally, and investors awaited rate decisions by the European Central Bank later today. 

Benchmark indexes in Frankfurt, Paris, Milan, and London advanced ahead of the widely anticipated 25 basis point deposit facility rate cut to 2.75%.

Investors are looking forward to the central bank's guidance about the amount and timing of the future rate cuts and policymakers outlook on economic growth, inflation, and labor market conditions.

In addition, investors also reviewed the latest update on economic growth in the eurozone and in France.

Eurozone GDP Growth Unexpectedly Stalled In Fourth Quarter

The Euro Area's GDP in the fourth quarter unexpectedly stalled from the previous quarter, Eurostat, the statistical agency of the region, reported Wednesday.

Economic activities rose at an annual pace of 0.9% in the fourth quarter, but the growth was overshadowed by the ongoing weakness in Germany and France.

For the full year 2024, GDP expanded at an annual pace of 0.7% in the euro area and 0.8% in the European Union. 

Separately, France's statistical agency, INSEE, reported economic growth unexpectedly contracted for the first time in nearly two years in the fourth quarter.

Gross domestic product shrank 0.1% sequentially after expanding at 0.3% in the third quarter.

Two separate reports supported the case for the European Central Bank to continue to lower key lending rates and soften the economic contraction.

Spain's Annual CPI Jumped to 7-Month High in January

Spain's annual inflation rate advanced for the fourth consecutive month and reached the highest in seven months, the National Statistics Institute reported Thursday.

The annual pace of inflation in January rose to 3.0% from 2.8% in December, largely driven by an increase in fuel prices.

However, the core rate of inflation, which excludes volatile food and energy prices, slowed to 2.4% from a four-month high of 2.6% in December.

From the previous month, the consumer price inflation increased by 0.2%, following a 0.5% rise in December. 

However, the EU-harmonized consumer inflation advanced at an annual pace of 2.9% year-on-year and decreased by 0.1% from the previous month.

Europe Indexes and Yields

The DAX index moved higher by 0.3% to 21,694.57; the CAC-40 index climbed 0.5% to 7,909.78; and the FTSE 100 index advanced by 0.2% to 8,574.94.

The yield on 10-year German bonds inched lower to 2.53%, French bonds declined to 3.27%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.62%.

The euro was flat at $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.75 Swiss cents.

Brent crude decreased $0.43 to $76.15 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

Europe Stock Movers

Nokia gained 2.3% to €4.40 after the mobile technology company posted strong fourth-quarter results ending in December.

ABB Ltd. increased 1.3% to CHF 52.28 after the Swiss engineering company reported an increase in revenue, profit, and orders in the fourth quarter.

The company's board also proposed to increase an ordinary dividend to 0.90 Swiss franc compared to 0.84 Swiss franc in the previous year.

The company also proposed a new $1.5 billion stock repurchase plan, ending on January 28, 2026.

Deutsche Bank decreased 3.5% to €18.85, and Germany's largest bank announced a larger-than-expected provision decline in earnings in the fourth quarter and 2024 as a result of a higher provision for legal expenses and restructuring costs.

Electrolux AB dropped 6% to 103.45 krona after the Swedish home appliance maker swung to a profit in the fourth quarter, but the company signaled market uncertainty in North America.

The appliance maker skipped a dividend for the third year in a row.

H&M declined 5.1% to €12.81 after the Swedish apparel retailer reported weaker-than-expected sales in the fourth quarter.

Eurozone GDP Growth Stalled In Fourth Quarter, Spain's Inflation Accelerated In January to 7-Month High

European stock market indexes extended the three-day rally, and investors awaited rate decisions by the European Central Bank later today. 

Benchmark indexes in Frankfurt, Paris, Milan, and London advanced ahead of the widely anticipated 25 basis point deposit facility rate cut to 2.75%.

Investors are looking forward to the central bank's guidance about the amount and timing of the future rate cuts and policymakers outlook on economic growth, inflation, and labor market conditions.

In addition, investors also reviewed the latest update on economic growth in the eurozone and in France.

Eurozone GDP Growth Unexpectedly Stalled In Fourth Quarter

The Euro Area's GDP in the fourth quarter unexpectedly stalled from the previous quarter, Eurostat, the statistical agency of the region, reported Wednesday.

Economic activities rose at an annual pace of 0.9% in the fourth quarter, but the growth was overshadowed by the ongoing weakness in Germany and France.

For the full year 2024, GDP expanded at an annual pace of 0.7% in the euro area and 0.8% in the European Union. 

Separately, France's statistical agency, INSEE, reported economic growth unexpectedly contracted for the first time in nearly two years in the fourth quarter.

Gross domestic product shrank 0.1% sequentially after expanding at 0.3% in the third quarter.

Two separate reports supported the case for the European Central Bank to continue to lower key lending rates and soften the economic contraction.

Spain's Annual CPI Jumped to 7-Month High in January

Spain's annual inflation rate advanced for the fourth consecutive month and reached the highest in seven months, the National Statistics Institute reported Thursday.

The annual pace of inflation in January rose to 3.0% from 2.8% in December, largely driven by an increase in fuel prices.

However, the core rate of inflation, which excludes volatile food and energy prices, slowed to 2.4% from a four-month high of 2.6% in December.

From the previous month, the consumer price inflation increased by 0.2%, following a 0.5% rise in December. 

However, the EU-harmonized consumer inflation advanced at an annual pace of 2.9% year-on-year and decreased by 0.1% from the previous month.

Europe Indexes and Yields

The DAX index moved higher by 0.3% to 21,694.57; the CAC-40 index climbed 0.5% to 7,909.78; and the FTSE 100 index advanced by 0.2% to 8,574.94.

The yield on 10-year German bonds inched lower to 2.53%, French bonds declined to 3.27%, the UK gilts moved up to 4.60%, and Italian bonds edged lower to 3.62%.

The euro was flat at $1.04; the British pound was lower at $1.24; and the U.S. dollar was higher and traded at 90.75 Swiss cents.

Brent crude decreased $0.43 to $76.15 a barrel, and the Dutch TTF natural gas was higher by €0.17 to €49.91 per MWh.

Europe Stock Movers

Nokia gained 2.3% to €4.40 after the mobile technology company posted strong fourth-quarter results ending in December.

ABB Ltd. increased 1.3% to CHF 52.28 after the Swiss engineering company reported an increase in revenue, profit, and orders in the fourth quarter.

The company's board also proposed to increase an ordinary dividend to 0.90 Swiss franc compared to 0.84 Swiss franc in the previous year.

The company also proposed a new $1.5 billion stock repurchase plan, ending on January 28, 2026.

Deutsche Bank decreased 3.5% to €18.85, and Germany's largest bank announced a larger-than-expected provision decline in earnings in the fourth quarter and 2024 as a result of a higher provision for legal expenses and restructuring costs.

Electrolux AB dropped 6% to 103.45 krona after the Swedish home appliance maker swung to a profit in the fourth quarter, but the company signaled market uncertainty in North America.

The appliance maker skipped a dividend for the third year in a row.

H&M declined 5.1% to €12.81 after the Swedish apparel retailer reported weaker-than-expected sales in the fourth quarter.

India Movers: Ambuja Cements, Adani Power, Bajaj Finance, Blue Dart Express, Indian Bank, Maruti Suzuki, Tata Motor, Voltas

The Sensex and Nifty indexes advanced for the third consecutive day and erased weekly losses amid sustained buying from domestic investors.  

The Sensex index increased by 0.4% to 76,855.46, and the Nifty index increased by 0.5% to 23,290.70.

On the Mumbai stock exchange, 44 stocks traded at their 52-week highs, and 56 stocks traded at their 52-week lows.

Blue Dart Express Ltd. increased 0.4% to ₹6,431.65, and the company reported an 8% increase in revenue and a 9% decline in profit in the December quarter.

Consolidated revenue in the December quarter increased to ₹1,523.6 crore from ₹1,407.28 crore, after-tax profit declined to ₹81 crore from ₹88.9 crore, and diluted earnings per share dropped to ₹34.1 from ₹37.5 a year ago

Tata Motors Ltd. dropped 8.1% to ₹691.80, and the company reported a slight increase in revenue and a 22% decline in profit in the December quarter.

Consolidated revenue in the December quarter increased to ₹1,15,365 crore from ₹1,12,076 crore, net income fell to ₹5,578 crore from ₹7,145 crore, and diluted earnings per share decreased to ₹14.80 from ₹18.30 a year ago.

Maruti Suzuki India Ltd. increased 3% to ₹12,011.50 after the company reported an increase in revenue and earnings in the December quarter. 

Consolidated revenue in the December quarter increased to ₹39,822 crore from ₹34,509.2 crore, after-tax profit rose to ₹3,726.9 crore from ₹3,206.8 crore, and diluted earnings per share jumped to ₹118.54 from ₹102 a year ago.

Ambuja Cements Ltd. decreased 4% to ₹522.20 after the company reported a jump in net income but margins fell sharply in the December quarter. 

Consolidated revenue in the December quarter advanced to ₹10,680.8 crore from ₹8,322.5 crore, net income jumped to ₹2,620.1 crore from ₹1,090.7 crore, and diluted earnings per share rose to ₹8.59 from ₹3.87 a year ago.

Indian Bank increased 6% to ₹544.70, and the company reported a marginal increase in earnings in the fiscal third quarter.

Consolidated revenue in the December quarter increased to ₹2,397.4 crore from ₹2,112.8 crore, after-tax profit rose to ₹2,876.2 crore from ₹2,136.3 crore, and diluted earnings per share jumped to ₹21.60 from ₹17.46 a year ago.

Adani Power Ltd. decreased 0.4% to ₹520.50 despite the company reporting an increase in revenue and earnings in the fiscal third quarter. 

Consolidated revenue in the December quarter advanced to ₹14,833.4 crore from ₹13,355.7 crore, net income expanded to ₹2,940.1 crore from ₹2,738 crore, and diluted earnings per share rose to ₹7.67 from ₹6.61 a year ago.

Voltas Ltd. dropped 11.2% to ₹1,449.95 despite the company swinging to a profit from a year ago in the December quarter.

Consolidated revenue in the December quarter increased to ₹3,164.16 crore from ₹2,683.6 crore, net income swung to a profit of ₹130.76 crore from a loss of ₹27.60 crore, and diluted earnings per share jumped to ₹3.99 from loss of 92 paisa a year ago.

Bajaj Finance Limited increased 4.5% to ₹8110.15, and the company reported revenue in the December quarter rose 28% from a year ago.

Consolidated revenue in the December quarter increased to ₹18,058.3 crore from ₹14,167 crore, net income jumped to ₹4,308.19 crore from ₹3,639 crore, and diluted earnings per share rose to ₹68.47 from ₹59.20 a year ago.

India Movers: Ambuja Cements, Adani Power, Bajaj Finance, Blue Dart Express, Indian Bank, Maruti Suzuki, Tata Motor, Voltas

The Sensex and Nifty indexes advanced for the third consecutive day and erased weekly losses amid sustained buying from domestic investors.  

The Sensex index increased by 0.4% to 76,855.46, and the Nifty index increased by 0.5% to 23,290.70.

On the Mumbai stock exchange, 44 stocks traded at their 52-week highs, and 56 stocks traded at their 52-week lows.

Blue Dart Express Ltd. increased 0.4% to ₹6,431.65, and the company reported an 8% increase in revenue and a 9% decline in profit in the December quarter.

Consolidated revenue in the December quarter increased to ₹1,523.6 crore from ₹1,407.28 crore, after-tax profit declined to ₹81 crore from ₹88.9 crore, and diluted earnings per share dropped to ₹34.1 from ₹37.5 a year ago

Tata Motors Ltd. dropped 8.1% to ₹691.80, and the company reported a slight increase in revenue and a 22% decline in profit in the December quarter.

Consolidated revenue in the December quarter increased to ₹1,15,365 crore from ₹1,12,076 crore, net income fell to ₹5,578 crore from ₹7,145 crore, and diluted earnings per share decreased to ₹14.80 from ₹18.30 a year ago.

Maruti Suzuki India Ltd. increased 3% to ₹12,011.50 after the company reported an increase in revenue and earnings in the December quarter. 

Consolidated revenue in the December quarter increased to ₹39,822 crore from ₹34,509.2 crore, after-tax profit rose to ₹3,726.9 crore from ₹3,206.8 crore, and diluted earnings per share jumped to ₹118.54 from ₹102 a year ago.

Ambuja Cements Ltd. decreased 4% to ₹522.20 after the company reported a jump in net income but margins fell sharply in the December quarter. 

Consolidated revenue in the December quarter advanced to ₹10,680.8 crore from ₹8,322.5 crore, net income jumped to ₹2,620.1 crore from ₹1,090.7 crore, and diluted earnings per share rose to ₹8.59 from ₹3.87 a year ago.

Indian Bank increased 6% to ₹544.70, and the company reported a marginal increase in earnings in the fiscal third quarter.

Consolidated revenue in the December quarter increased to ₹2,397.4 crore from ₹2,112.8 crore, after-tax profit rose to ₹2,876.2 crore from ₹2,136.3 crore, and diluted earnings per share jumped to ₹21.60 from ₹17.46 a year ago.

Adani Power Ltd. decreased 0.4% to ₹520.50 despite the company reporting an increase in revenue and earnings in the fiscal third quarter. 

Consolidated revenue in the December quarter advanced to ₹14,833.4 crore from ₹13,355.7 crore, net income expanded to ₹2,940.1 crore from ₹2,738 crore, and diluted earnings per share rose to ₹7.67 from ₹6.61 a year ago.

Voltas Ltd. dropped 11.2% to ₹1,449.95 despite the company swinging to a profit from a year ago in the December quarter.

Consolidated revenue in the December quarter increased to ₹3,164.16 crore from ₹2,683.6 crore, net income swung to a profit of ₹130.76 crore from a loss of ₹27.60 crore, and diluted earnings per share jumped to ₹3.99 from loss of 92 paisa a year ago.

Bajaj Finance Limited increased 4.5% to ₹8110.15, and the company reported revenue in the December quarter rose 28% from a year ago.

Consolidated revenue in the December quarter increased to ₹18,058.3 crore from ₹14,167 crore, net income jumped to ₹4,308.19 crore from ₹3,639 crore, and diluted earnings per share rose to ₹68.47 from ₹59.20 a year ago.

Fed Pauses Rate-Cut Cycle Citing Elevated Inflation

The Federal Reserve held rates steady after cutting rates after three meetings in a row, and the fed funds rate range was left unrevised between 4.25% and 4.50% at the end of a two-day meeting today. 

The U.S. economy has been growing at a healthy clip over the last four years; labor market conditions have moderated, but employers are still adding jobs at a healthy clip. 

Moreover, wages are still rising at a faster pace than overall inflation, driving an increase in real consumer income and supporting the increase in consumer spending. 

However, the U.S. economy is likely to face higher inflation, largely driven by looming Trump tariffs and labor shortages created by the nationwide crackdown on illegal immigrants.

Persistent inflation in the service sector is also adding pressures to inflationary forces. 

In addition, chaotic presidential administration and weak cabinet appointments are likely to negatively impact consumer confidence and support possible federal government shutdowns in the months ahead. 

Fed Pauses Rate-Cut Cycle Citing Elevated Inflation

The Federal Reserve held rates steady after cutting rates after three meetings in a row, and the fed funds rate range was left unrevised between 4.25% and 4.50% at the end of a two-day meeting today. 

The U.S. economy has been growing at a healthy clip over the last four years; labor market conditions have moderated, but employers are still adding jobs at a healthy clip. 

Moreover, wages are still rising at a faster pace than overall inflation, driving an increase in real consumer income and supporting the increase in consumer spending. 

However, the U.S. economy is likely to face higher inflation, largely driven by looming Trump tariffs and labor shortages created by the nationwide crackdown on illegal immigrants.

Persistent inflation in the service sector is also adding pressures to inflationary forces. 

In addition, chaotic presidential administration and weak cabinet appointments are likely to negatively impact consumer confidence and support possible federal government shutdowns in the months ahead. 

U.S. Movers: F5, General Motors, Lockheed Martin, Royal Caribbean, Starbucks

Lockheed Martin gained 0.6% to $460 after the aircraft builder posted lower earnings for the fourth quarter ending in December.

Net sales dropped to $18.6 billion from $18.9 billion; net income declined to $527 million from $1.9 billion, and earnings per diluted share fell to $2.22 from $5.45 a year ago.

Cash from operations declined to $1.0 billion from $2.4 billion, reflecting a pension contribution of $990 million.

Starbucks eased 0.8% to $99.60 after the coffee shop retailer posted fiscal first quarter 2025 results ending in December.

Revenue was flat at $9.4 billion; net income plunged 23.8% to $780.8 million from $1.02 billion, and earnings per diluted share declined 23.3% to 69 cents from 90 cents a year ago.

Comparable store sales in North America and the U.S. declined 4% while in China dropped 6%.

Starbucks opened 377 net new stores in the first quarter, with a 61% of global stores in the U.S. and China.

F5 Inc surged 15% to $310.22 after the technology company posted strong earnings for its fiscal first quarter 2025 ending in December.

Revenue increased to $766 million from $693 million; net income climbed to $166 million from $138 million, and earnings per share jumped to $2.82 from $2.32 a year ago.

Looking ahead to the company’s second quarter, F5 estimated revenue in the range of $705 million to $725 million, with non-GAAP earnings in the range of $3.02 to $3.14 per diluted share.

Royal Caribbean Cruises eased 0.2% to $264.8 after the cruise company posted strong fourth-quarter earnings.

Revenue increased to $3.76 billion from $3.33 billion; net income surged to $559 million from $280 million, and earnings per diluted share rose to $2.02 from $1.06 a year ago.

Looking ahead for fiscal year 2025, the company projects adjusted earnings per share between $14.35 and $14.65.

General Motors Co gained 0.06% to $50.07 after the company posted mixed earnings for the fourth quarter ending in December.

Revenue increased to $47.70 billion from $42.98 billion; net income swung to a loss of $2.96 billion from a profit of $2.10 billion, and diluted loss per share was $1.64 compared to a profit of $1.59 a year ago.