2025-05-02 11:39

May 2 (Reuters) - DuPont (DD.N) , opens new tab beat Wall Street expectations for first-quarter profit and revenue on Friday, helped by higher sales in its unit that caters to the electronics industry, although it warned of a hit to full-year earnings from tariffs. U.S. President Donald Trump has upended the global order through tariffs, forcing companies to assess the potential fallout from his chaotic trade policies. Sign up here. DuPont said it was expecting a net cost impact of roughly $60 million, or 10 cents per share, from tariffs and that it was actively engaging with customers and suppliers to mitigate their impact. The chemicals maker said the tariff exposure on imports into the United States was limited, but it might be bigger on products it exports to China. It left its current-year forecast for adjusted profit of $4.30 to $4.40 per share unchanged, saying it did not include the tariff impact. DuPont - which plans to spin off its electronics business, its biggest by revenue, by November 1 - reported its latest-quarter results under the new company structure. The firm recorded a $768 million non-cash impairment charge related to the Aramids reporting unit, which led to a loss of $548 million from continuing operations. DuPont's total sales grew 4.6% to $3.07 billion, beating expectations of $3.04 billion, according to data compiled by LSEG, though they were partially offset by flat sales at the industrials segment, which will remain with DuPont post spinoff. Net sales in the electronics segment rose to $1.12 billion from $984 million a year earlier, driven by AI technology applications and strong volumes in China. Demand for semiconductors is booming due to the proliferation of AI-powered technology, benefiting companies such as DuPont, which supports advanced chip manufacturing, packaging and assembly processes. DuPont posted an adjusted profit of $1.03 per share for the three months ended March 31, compared with analysts' estimates of 95 cents per share. https://www.reuters.com/sustainability/boards-policy-regulation/dupont-beats-profit-estimates-electronics-unit-gains-ai-chip-boom-2025-05-02/

2025-05-02 11:34

TSX ends up 1% at 25,031.51 For the week, the index adds 1.3% Canadian National Railway gains 5.7% Magna falls 5.8% after earnings miss May 2 (Reuters) - Canada's main stock index rose to a one-month high on Friday, led by gains for industrial shares, as stronger-than-expected U.S. jobs data contributed to increased investor confidence that a recession can be avoided. Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 235.96 points, or 1%, at 25,031.51, its highest closing level since April 2. For the week, the index was up 1.3%. Sign up here. Trade tariff developments, as well as the strength of the U.S. jobs report and corporate earnings "suggest that we're moving further away from the worst case scenarios," said Angelo Kourkafas, senior investment strategist at Edward Jones. "We're looking at a potential slowdown, not a recession, in the U.S., or Canada for that matter." Wall Street stocks also advanced on signs of easing trade tensions between the U.S. and China and after the U.S. economy added more jobs than expected last month. Prime Minister Mark Carney said he would be in Washington next Tuesday for what he expects will be "difficult but constructive" talks with U.S. President Donald Trump, who he has accused of trying to break Canada. Industrials rose 2.1% as Canadian National Railway Co (CNR.TO) , opens new tab added 5.7% after its quarterly results beat estimates. Technology was up 1.6% and heavily weighted financials ended 1.2% higher. Imperial Oil Ltd (IMO.TO) , opens new tab posted its highest-ever first-quarter earnings, driven primarily by stronger margins in its refining and fuel sales business. Its shares rose 1.2%. The energy sector added 0.9% even as U.S. crude oil futures settled 1.6% lower. The materials group was one of just two major sectors to end lower, falling 0.4%, as the price of gold edged down. Auto parts supplier Magna International Inc (MG.TO) , opens new tab missed quarterly earnings estimates and said it plans to implement cost-saving measures to cushion the hit from tariffs. Its shares ended 5.8% lower. https://www.reuters.com/markets/europe/tsx-futures-rise-signs-us-china-trade-conflict-easing-2025-05-02/

2025-05-02 11:28

MUMBAI, May 2 (Reuters) - A working group set up by the Indian central bank has recommended longer operating hours for the interbank money markets, while maintaining the current schedule for the bond and forex markets, according to a notice issued on Friday. The Reserve Bank of India set up the group to study the changing needs of market participants and suggest necessary adjustments across different market segments. Sign up here. The group suggested that the interbank money markets remain operational till 7 p.m. local time, instead of 5 p.m. currently, to meet the needs of banks in real-time payment systems. It also suggested the closing time for the market repo and tri-party repo markets, used by mutual funds, be extended to 4 p.m. Market repo is currently available till 2.30 p.m., while tri-party repo is available for half an hour beyond that. The group, however, has not recommended changing the timings of the government securities and foreign exchange markets. The RBI said it will field suggestions on the proposals till the end of May before finalising the timings. https://www.reuters.com/markets/currencies/india-central-bank-working-group-recommends-longer-hours-interbank-money-markets-2025-05-02/

2025-05-02 11:23

Chevron maintains dividend and share buyback strategy despite lower crude prices Production flat year-over-year, impacted by asset sales Chevron's Q1 oil and gas earnings drop from previous year HOUSTON, May 2 (Reuters) - Chevron (CVX.N) , opens new tab on Friday reported first-quarter earnings that met Wall Street estimates, but said it would spend less on share repurchases in the current quarter, reflecting the shaky economic outlook faced by Big Oil. The company's share repurchases this year could be between $11.5 billion and $13 billion, said Chevron Chief Financial Officer Eimear Bonner, which would be in the lower end of the company's guidance of $10 billion to $20 billion. Sign up here. Shares of Chevron rose 1.4% in afternoon trading. Chevron and other oil producers have been contending with falling crude prices since April 2, when U.S. President Donald Trump announced sweeping tariffs that are expected to reduce global economic growth. An unexpected decision by OPEC+ to increase output has further pressured oil prices, which hit a four-year low last month. The lower crude prices have raised questions about whether producers will meet their goals for paying dividends and repurchasing shares - a cornerstone of Big Oil's strategy to woo investors - or cut capital expenditure budgets. Chevron said it paid $3 billion in dividends and repurchased $3.9 billion in shares during the quarter. In the second quarter, the company said it expects to repurchase between $2 billion and $3.5 billion in shares. If rolled forward, that would mean Chevron could land between $11.5 billion and $13 billion in repurchases for 2025, Bonner said in an interview. "We're still buying back a significant amount of our shares annually, on top of a dividend that's growing faster than our peers," she said. The second-largest U.S. oil producer posted adjusted earnings of $3.8 billion during the three months ended March 31, or $2.18 per share, matching analyst estimates, according to LSEG data. Chevron's global oil production , opens new tab totaled 3.35 million barrels of oil equivalent per day (boepd), flat from the same period last year. Earnings from oil and gas production were $3.76 billion, down from $5.24 billion in the year-ago quarter. Refining profit improved from the previous quarter, when Chevron's downstream operations reported the first loss in four years. During an earnings conference call, analysts repeatedly asked Chevron about its production in Kazakhstan and Venezuela, which has been caught in geopolitical crosshairs. Kazakhstan has consistently exceeded OPEC+ oil production quotas, raising questions about whether Chevron will curtail output from the Tengiz oilfield, while the Trump administration hit the company with an order to wind down operations in Venezuela. Chevron CEO Mike Wirth said he traveled to Kazakhstan last month to meet with President Kassym-Jomart Tokayev and the two men discussed mutual interest in extending the project's contract beyond 2033. Wirth later said they did not discuss curtailing production. Bonner told Reuters the company is operating unrestricted. Meanwhile, Chevron's license to operate in Venezuela is set to expire May 27. "We're in dialogue with the (U.S.) government on how that license will be modified and extended if, in fact, that's what they choose to do," Wirth said during the conference call. The company is also set to defend its planned $53-billion acquisition of oil producer Hess, which would give it a crucial foothold in a prolific oilfield off the coast of Guyana. Exxon and CNOOC filed arbitration challenges that have delayed closure of the deal. An arbitration hearing in the case is scheduled for May 26 in London. https://www.reuters.com/business/energy/chevron-meets-wall-street-profit-estimates-refining-recovers-previous-quarter-2025-05-02/

2025-05-02 11:21

May 2 (Reuters) - Indian consumer goods maker Marico (MRCO.NS) , opens new tab reported quarterly profit above analysts' expectations on Friday, boosted by improving rural demand and price increases for its key hair and cooking oil brands. Its consolidated net profit rose 8% to 3.43 billion rupees ($40.6 million) in the January-March quarter, beating analysts' estimate of 3.34 billion rupees, according to data compiled by LSEG. Sign up here. Marico also said it would aim to post double-digit growth in operating profit for the fiscal year that started on April 1. Hair and edible oil, considered household staples in India, have been relatively resilient to an inflation-led slowdown in branded consumer goods sales for the last few quarters, despite manufacturers raising prices to counter higher raw material costs. Sales of Marico's 'Saffola' edible oil rose 26% year-on-year in India for the fourth quarter, while the 'Parachute' brand of coconut hair oil grew 22%. Together, they make up more than half of Marico's revenue in India, which accounts for three-fourths of its topline. India's rural areas, in particular, which account for over a third of overall consumer goods sales, have been a bright spot for urban-centric Marico and its peers struggling with a spending slowdown in large cities. "Consumer sentiment remained stable amidst improving demand in rural," Marico said in a presentation, adding it plans to expand its presence in villages across the country. Its revenue rose 20%, led by price hikes, to 27.30 billion rupees, with overall volumes from the Indian business growing 7%. Earlier in the week, India's AWL Agri Business (AWLA.NS) , opens new tab, previously known as Adani Wilmar, reported a 22% jump in profit, before raising its forecast for fiscal 2026 sales volumes, betting on delivery boom and easing inflation. Shares of Marico closed nearly 2% lower before its results, cutting gains to 9% this year. ($1 = 84.4730 Indian rupees) https://www.reuters.com/world/india/indias-marico-beats-quarterly-profit-view-packaged-oil-price-hikes-2025-05-02/

2025-05-02 11:21

LONDON, May 2 (Reuters) - What matters in U.S. and global markets today By Mike Dolan , opens new tab, Editor-At-Large, Financial Industry and Financial Markets Sign up here. It's Friday, so today I'll provide a quick overview of what's happening in global markets and then offer you some weekend reading suggestions away from the headlines. Today's Market Minute * Beijing is "evaluating" an offer from Washington to hold talks over U.S. President Donald Trump's 145% tariffs, although it warned the United States not to engage in "extortion and coercion." * Japan could use its $1 trillion-plus holdings of U.S. Treasuries as a card in trade talks with Washington, raising explicitly for the first time its leverage as a massive creditor to the United States. * Apple CEO Tim Cook told analysts on Thursday that tariffs could add about $900 million in costs this quarter as the iPhone maker shifts its vast supply chain to minimize the impact of the trade war. * The Trump administration ended U.S. duty-free access for low-value shipments from China and Hong Kong on Friday, removing the "de minimis" exemptions availed of by Shein, Temu and other e-commerce firms as well as traffickers of fentanyl and other illicit goods. * A Reuters review of almost 100 Chinese and Hong Kong companies added to the U.S. entity list in 2023 and 2024 found more than a quarter contained erroneous details, such as incorrect names and addresses and outdated information. Buy in May? The U.S. stock rebound has gathered steam as the new month gets underway, confounding the old 'sell in May' adage, largely due to trade war de-escalation hopes and some selective tech optimism. April's employment report on Friday will tell us a lot about the durability of this rally, as last month's jobs market picture remained mixed. A big jump in jobless claims last week was put down to seasonal quirks related to a late Easter. Meanwhile, the broader economic picture continues to be less a cause for cheer than a case of "it could have been worse". ISM's manufacturing survey on Thursday showed an ongoing contraction in factory activity in April, but by slightly less than feared. Signs of some rowback in the extreme U.S.-China trade standoff could be more of a boost, coming as they do alongside the week's impressive Microsoft and Meta earnings beats. That said, the fortunes of Big Tech megacaps may be diverging. Apple (AAPL.O) , opens new tab disappointed the Street overnight after it noted the high costs associated with shifting its supply chains, and its stock was down about 4% ahead of Friday's bell. And Amazon (AMZN.O) , opens new tab shares were also down 2% as its cloud business and income guidance fell short of expectations. Pharma stocks were also hit on Thursday. Even though Eli Lilly (LLY.N) , opens new tab results topped expectations, its shares tumbled 12% after CVS Health said it was dropping Lilly's obesity drug Zepbound from some lists of medicines covered for reimbursement. And yet the more positive mood music around the trade war seems to have encouraged the broader market nonetheless. Beijing is "evaluating" an offer from Washington to hold talks over President Donald Trump's steep tariffs, China's Commerce Ministry said on Friday, signalling a potential breakthrough in the severe faceoff. The pressure to talk has been building as the Trump administration ended U.S. duty-free access for low-value shipments from China and Hong Kong, removing "de minimis" exemptions. Taking it all in, however, S&P 500 futures were up another 0.5% ahead of Friday's open, adding to yesterday's cash market gains. Futures on the small cap Russell 2000 were up 1%. All of which means the main Wall Street indexes (.IXIC) , opens new tab, (.SPX) , opens new tab, (.RUT) , opens new tab have recovered most or all of the losses seen since the April 2 tariff sweep, even though they remain deeply negative for the year. Given the unusually negative start for the year, many strategists wonder if seasonal trends captured in the "sell in May and go away" quip will hold this year. And most reckon the huge macro uncertainties mean it's equally impossible to apply it in reverse. Flipping back to Friday's diary, the payrolls report will dominate early on, with consensus set for a drop in job growth last month to 130,000. 'Big Oil' dominates the earnings slate. With next week's Federal Reserve meeting set to leave interest rates on hold for now, Treasury yields backed-up sharply on Thursday on a combination of relief at the ISM survey results and the stock market rally. The Trump administration was not short of advice for the Fed. Renewing his attack on Fed Chair Jerome Powell as "a guy in the Fed that I'm not a huge fan of", Trump said: "He should reduce interest rates. I think I understand interest a lot better than him, because I've had to really use interest rates." Treasury Secretary Scott Bessent also said the Fed should cut. "We are seeing that two-year rates are now below fed funds rates, so that's a market signal that they think the Fed should be cutting," he said. Maybe even more alarming for the bond market, Japan finance minister Katsunobu Kato said the country could use its $1 trillion-plus holdings of U.S. Treasuries as a card in trade talks with Washington, raising explicitly for the first time its leverage as a massive creditor to the United States. The dollar (.DXY) , opens new tab fell back across the board, as the yen recouped some of its losses and China's offshore yuan hit its highest since March. Elsewhere, Britain's FTSE 100 (.FTSE) , opens new tab is heading for its 15th straight consecutive daily gain, which would be the longest winning streak since the index was first compiled in 1984. Weekend reading suggestions Here are some articles away from the day-to-day headlines that you may find interesting. 1. TRADE DEFENSE: In a videoed conversation this week with Council on Foreign Relations President Michael Froman, Donald Trump's first term Trade Representative Robert Lighthizer , opens new tab shared his take on the current administration's trade agenda, sketching out the rationale for these policies. 2. TARIFF ILLUSION?: In an article published on CEPR's VoxEU site, geopolitics and economics professors Simon Evenett and Marc-Andreas Muendler , opens new tab examine the extent to which U.S. import tariffs could fund the government. 3. PARADISE LOST: Pacific archipelago Palau, the site of some brutal World War Two clashes, is once again on the frontline. Reuters correspondents Pete McKenzie and Hollie Adams show how China and the United States and its allies are preparing forces in an intensifying contest for control over the Asia-Pacific region. 4. TAX WEDGES: The annual OECD report , opens new tab on take-home pay shows that as inflation fell last year, the average worker's post-tax income rose in real terms in almost three quarters of the 38 countries surveyed after two years of declines for a majority of them. 5. ENDURING TAILWINDS: In an article for Project Syndicate, economist and professor Nouriel Roubini , opens new tab - once known as "Dr Doom" - takes a positive long-term view of the U.S. economy amid a blistering critique of the current administration. He argues that American private sector leadership in tech and other sectors will see it resume its 'exceptional' performance over the coming decade despite this year's policy shocks. 6. AI AND MINERALS: Reuters correspondent Ernest Scheyder shows how control of a U.S. government-created artificial intelligence program that aims to predict the supply and price of critical minerals has been transferred to a non-profit organization, helping miners and manufacturers strike supply deals. 7. RE-ARM, RE-GREEN: As Europe juggles defence and climate priorities, Bruegel Senior Fellow Simone Tagliapietra , opens new tab outlines seven converging interests between both agendas. 8. TRIPLE HEDGING: In another Project Syndicate article, economist and author Dambisa Moyo , opens new tab discusses how investors hedge against "worse case" scenarios of economic, financial and rule-of-law breakdowns, with the last of the three likely to require holding real, physical, portable assets. 9. RIGHT OFF: Reuters correspondents Anita Komuves, Andrew R.C. Marshall and Krisztina Than explain how U.S. tariffs have undermined hopes among Europe's far right leaders that Trump's presidency would usher in a golden era for them. Chart of the day It was a rollercoaster April for the so-called "Magnificent Seven" U.S. big tech megacap stocks - Microsoft, Apple, Alphabet, Amazon, Nvidia, Meta and Tesla. Exchange-traded funds invested in the group plunged as much as 13% after April 2's tariff sweep only to regain all that ground by May 1. First-quarter earnings from three of the seven were greeted favorably by investors in the past week, though Apple and Amazon were snubbed again overnight. Despite the wild swings, the Mag 7 remain down 12% for the year so far. Excluding these huge stocks, the rest of S&P 500 is effectively back to where it started 2025. Today's events to watch * US April employment report (8:30EDT), March factory orders (10:00EDT) * U.S. corporate earnings: Exxon, Chevron, Dupont De Nemours, Franklin Resources, T Rowe Price, Cigna, Apollo, Cboe Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles , opens new tab, is committed to integrity, independence, and freedom from bias. https://www.reuters.com/markets/us/global-markets-view-usa-2025-05-02/