2025-02-24 23:13

Nike gains after Jefferies upgrades to 'buy' Berkshire Hathaway hits record high after record Q4 profit Nvidia, Microsoft close lower Indexes: Dow up 0.08%, S&P 500 down 0.50%, Nasdaq down 1.21% Feb 24 (Reuters) - The Nasdaq Composite fell more than 1% on Monday, with big technology stocks creating the biggest drag as investors worried about demand for technology supporting artificial intelligence while they waited for results from market heavyweight Nvidia. The S&P 500 closed slightly lower, marking its third straight day of declines, while the Dow managed to eke out a tiny gain. It was also Nasdaq's third consecutive loss and its fourth daily drop of more than 1% so far in February. Investors were concerned about future demand for Nvidia's (NVDA.O) , opens new tab pricey AI chips as they awaited its quarterly results on Wednesday. Worries about hefty spending on the technology have mounted since low-cost AI models from China's DeepSeek rattled the industry in January. Adding to uncertainty, a TD Cowen analyst note published late on Friday reported that Microsoft Corp (MSFT.O) , opens new tab has scrapped leases for sizeable data center capacity in the U.S., suggesting a potential oversupply of AI infrastructure. Microsoft said its plan to invest over $80 billion in AI and cloud capacity this fiscal year was intact but that it "may strategically pace or adjust" infrastructure in some areas. "Markets are already jittery and looking for a reason to take profits," said Gene Goldman, chief investment officer at Cetera Investment Management, noting that any question about AI is seen as a reason to take profits since the technology has driven market growth for the last few years. Along with worries about tariffs and inflation, investors are getting more anxious about economic growth after last week's batch of weak economic data and a disappointing forecast from Walmart (WMT.N) , opens new tab. "Volatility is being driven by market uncertainty about whether we're facing a growth scare or an inflation scare," said Goldman. The Dow Jones Industrial Average (.DJI) , opens new tab rose 33.19 points, or 0.08%, to 43,461.21, the S&P 500 (.SPX) , opens new tab lost 29.88 points, or 0.50%, to 5,983.25 and the Nasdaq (.IXIC) , opens new tab lost 237.08 points, or 1.21%, to 19,286.93. The more defensive healthcare index (.SPXHC) , opens new tab led percentage gains, closing up 0.75% while technology (.SPLRCT) , opens new tab was the biggest laggard, ending down 1.43%. Nvidia was the S&P 500's biggest index point drag, ending the session down 3.1%, and it was followed by chip maker Broadcom Inc (AVGO.O) , opens new tab, down 4.9%, Amazon.com (AMZN.O) , opens new tab, down 1.8%. Microsoft shares ended down 1%. The tech sector's biggest percentage decliner with, a 10.5% drop, was another popular AI stock, Palantir Technologies (PLTR.O) , opens new tab. "The dominance of the AI tech trade has run its course, not that these companies aren't great stocks. We're headed for a major digestion phase," said Peter Boockvar, CIO at Bleakley Financial Group. On the data front, the Personal Consumption Expenditure index - the Federal Reserve's preferred inflation gauge - is expected on Friday and could help markets gauge the timing of the central bank's first rate cut this year. Interest rate futures indicate trader expectations that the Fed will leave borrowing costs unchanged until June, according to CME Group's FedWatch , opens new tab tool. In individual stocks, Apple (AAPL.O) , opens new tab finished up 0.7% after the iPhone maker unveiled plans to spend $500 billion in U.S. investments in the next four years, including setting up a factory in Texas for AI servers. Berkshire Hathaway (BRKa.N) , opens new tab, shares hit record highs in early trading, after Warren Buffett's conglomerate reported a record annual profit and its class B shares ended up more than 4%. Nike (NKE.N) , opens new tab finished up 4.9% after Jefferies raised its rating to "buy" from "hold". Declining issues outnumbered advancers by a 1.25-to-1 ratio on the NYSE where there were 90 new highs and 134 new lows. On the Nasdaq, 1,518 stocks rose and 2,888 fell as declining issues outnumbered advancers by a 1.9-to-1 ratio. The S&P 500 posted 28 new 52-week highs and 8 new lows while the Nasdaq recorded 40 new highs and 232 new lows. On U.S. exchanges about 15.32 billion shares changed hands compared with the 15.34 billion average for the last 20 sessions. Sign up here. https://www.reuters.com/markets/us/futures-bounce-after-wall-st-selloff-nvidia-results-draw-near-2025-02-24/

2025-02-24 23:08

Feb 24 (Reuters) - Coterra Energy (CTRA.N) , opens new tab beat Wall Street estimates for fourth-quarter profit on Monday and announced a 5% dividend increase, as the oil and gas company benefited from higher oil and natural gas liquids (NGLs) production. The U.S. Energy Information Administration reported that oil production in the country rose to a record high in the previous quarter as drilling efficiencies helped producers pump more. The Houston-based company reported a rise in fourth-quarter production to 681,500 barrels of oil equivalent per day (boepd), exceeding the high end of its outlook of 630,000 to 660,000 boepd, driven by improved cycle times and strong well performance. While the company's output mix had more oil and NGLs compared to the year-ago quarter, overall it was less than the 697,400 boepd produced in that quarter. Coterra also forecast total overall production for 2025 to be between 710,000 and 770,000 boepd, with a higher oil mix, while natural gas production is expected to be relatively flat year over year at the midpoint. Betting on organic growth in its legacy assets and in the Permian, Coterra expects an average oil growth of 5% or greater from 2025 through 2027, and anticipates average annual capital ranging between $2.1 billion and $2.4 billion, which includes proforma combined growth in 2026 and 2027. In November last year, Coterra acquired certain assets of Avant Natural Resources and Franklin Mountain Energy for a combined $3.95 billion to expand its operations in the Delaware Basin. The transaction closed in January, and the company expects capital expenditure to be around 28% higher year over year from the $1.76 billion spent in 2024. It also expects drilling and completion in the Marcellus Basin capital expenditures to be $50 million higher than expected in November last year as it restarts activity in the basin early in the second quarter, and could also increase by $50 million in the second half of the year. The company's adjusted profit was 49 cents per share for the three months ended December 31, compared with the analysts' average estimate of 43 cents per share, according to data compiled by LSEG. Sign up here. https://www.reuters.com/business/energy/coterra-energy-beats-quarterly-profit-estimates-2025-02-24/

2025-02-24 22:45

Russia's Putin says Europeans welcome to join peace talks Says Europe had rejected all contact with Russia Putin approved notion of deep cuts in military spending MOSCOW, Feb 24 (Reuters) - Russian President Vladimir Putin said on Monday that Russia was not opposed to Europe's involvement in Russia-U.S. peace talks aimed at settling the conflict in Ukraine, but noted that Brussels had long rejected any dialogue with Moscow. Putin, interviewed on Russian state television, also said U.S. President Donald Trump was approaching the Russia-Ukraine conflict rationally and not emotionally. Russia and the United States held an initial round of talks on Ukraine last week in Saudi Arabia. Ukraine and Kyiv's European allies were not invited, sparking objections from both. Putin said it was logical for Europe to take part in talks on a settlement to the three-year-old conflict. "Their participation in the negotiating process is needed. We never rejected that, we held constant discussions with them," Putin said. "At times, on the pretext of inflicting on Russia a battlefield defeat, they were the ones who refused contact with us. If they want to come back, that's fine." He said negative reactions to the talks in Riyadh had been "emotional and void of any kind of logic". "And why? Because in order to resolve complex and difficult questions, including the Ukrainian issue, Russia and the United States must make the first step. And that first step must be devoted to raising the level of trust between our countries. And that is what we did in Riyadh." The Ukraine conflict had been discussed, he said, "but not in its essence. We simply agreed that we get to it. And here we are not rejecting the participation of European countries." Putin also said he approved a suggestion that Russia and the United States could discuss deep cuts -- up to 50% -- in military spending. "We could come to an agreement with the United States. We're not against that," Putin said. "The idea seems like a good one to me. The United States reduces theirs by 50% and we reduce ours by 50%. And China could join us later if it wishes." And Putin dismissed any notion that Trump's sharp alteration of Washington's policy on Ukraine, including criticism of Ukrainian President Volodymyr Zelenskiy and suggestions that Kyiv might not recover all lost territory, was based on emotion. Trump, he said, was acting logically and free of the constraints of promises to Ukraine made by European leaders. "Unlike them, the new president of the United States has his hands free from shackles that don't allow you to move forward," he said, "He is moving in a straightforward manner and without particular constraints. He is in a unique position: he doesn't just say what he thinks, he says what he wants. This is the privilege of the leader of one of the major powers." Sign up here. https://www.reuters.com/world/europe/putin-says-russia-open-europes-involvement-peace-talks-ukraine-2025-02-24/

2025-02-24 22:42

Feb 24 (Reuters) - Pipeline operator ONEOK (OKE.N) , opens new tab forecast annual income growth of about 11% and reported a 34.2% rise in fourth-quarter profit on Monday, helped by higher demand and accretive contributions from the EnLink acquisition. In November, the company said it would buy the remaining shares of EnLink Midstream for $4.3 billion, following its acquisition of a 43% controlling interest in the peer from Global Infrastructure Partners for about $3.3 billion. The company also reported a 3% growth in the Rocky Mountain region natural gas liquids (NGL) raw feed throughput volumes and a 4% increase in crude oil volume shipped. Last year, ONEOK acquired an NGL pipeline system from Easton Energy to broaden its NGL asset portfolio, and also expanded its refined products pipeline to the Greater Denver area. Its quarterly core profit from the NGL segment was up 13.5% at $696 million from a year earlier, while its quarterly core profit from the refined products and crude segment was up 42.2% at $603 million. Earnings were also boosted by adjusted core profit from its natural gas pipelines segment, which more than tripled to $417 million on the back of the company selling three of its pipelines to peer DT Midstream (DTM.N) , opens new tab for $1.2 billion. The company now expects current-year net income between $3.21 billion and $3.69 billion, the mid-point of which was up about 11% from last year. The pipeline operator also expects annual capital expenditure between $2.8 billion and $3.2 billion, which was higher than Wall Street expectation of $2.24 billion, according to data compiled by LSEG. The Tulsa, Oklahoma-based company reported net income attributable of $923 million, or $1.57 per share, for the quarter ended December 31, compared with $688 million, or $1.18 per share, a year earlier. Sign up here. https://www.reuters.com/business/energy/oneok-fourth-quarter-profit-rises-higher-demand-expects-higher-2025-earnings-2025-02-24/

2025-02-24 21:51

Feb 25 (Reuters) - A look at the day ahead in Asian markets. World markets are at a delicate juncture as a string of unexpectedly soft economic indicators intensify U.S. growth concerns, just as rising global trade tensions and geopolitical uncertainty are already clouding the investment landscape. Stocks are feeling the heat and the dollar is under pressure too, while safe-haven assets like Treasuries and gold - especially gold - are attracting strong demand. Investors on Monday initially welcomed Germany's election result and gave a thumbs up to the new government's 'pro-growth' policies, but the early bounce in Europe faded and Asian bourses were a sea of red. Wall Street managed to erase some losses after U.S. President Donald Trump said G7 nations are united in their resolve to see an end to the Russia-Ukraine war, and that he and Russian President Vladimir Putin are in "serious discussions" about achieving that goal. But Trump later repeated his commitment to slapping tariffs on imports from Canada and Mexico soon, and stocks stumbled again. The Asian calendar on Tuesday includes an interest rate decision from the Bank of Korea, trade figures from Thailand and Hong Kong, and Taiwanese industrial production figures for January. Economists expect the BOK to cut its key interest rate by 25 basis points to 2.75% on Tuesday, after unexpectedly standing pat last month as policymakers waited for domestic political turmoil to stabilize before easing further. Economists polled by Reuters expect Tuesday's cut to be followed by a further 50 points of easing this year. Money markets are a little less dovish, pricing in only two full quarter point cuts this year. Industrial production in Taiwan ended last year on a high, boosted by seasonal factors and perhaps firms accelerating production ahead of potential U.S. tariffs. The 20% year-on-year rise in December was the fastest growth in five years, and is unlikely to be repeated in January. The bigger issue for markets right now, however, is the deterioration in U.S. economic numbers. Having convinced themselves that the 'soft landing' was assured, investors are now entertaining the possibility that the economy may be in the early stages of rolling over. Citi's U.S. economic surprises index is now negative, and the lowest since the Fed kicked off its easing cycle with a 50-basis point cut last September. It has been mostly falling since the November presidential election. Two more quarter-point cuts from the Fed this year are now fully priced into the U.S. rates futures curve, and options market activity may also be pointing in the same direction. S&P 500 option volumes hit an all-time high of 4.74 million contracts on Friday, according to CBOE, with demand for 'puts' rising. Here are key developments that could provide more direction to Asian markets on Tuesday: - South Korea interest rate decision - Taiwan industrial production (January) - BoE, Fed, ECB policymakers speak at BoE conference Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphics-2025-02-24/

2025-02-24 21:42

NEW YORK, Feb 24 (Reuters) - The operator of the OKX cryptocurrency exchange pleaded guilty on Monday to violating U.S. anti-money laundering laws and will pay nearly $505 million in fines and forfeited fees, the U.S. Department of Justice said. Aux Cayes FinTech Co, a Seychelles-based entity, admitted to one count of operating an unlicensed money transmitting business. It entered its plea at a hearing before U.S. District Judge Katherine Polk Failla in Manhattan, who imposed the sentence. OKX is the world's fourth-ranked cryptocurrency spot exchange based on traffic, liquidity, trading volumes, and confidence in the legitimacy of reported trading volumes, according to CoinMarketCap. Binance, Bybit and Coinbase rank higher. Prosecutors said that from 2018 through early 2024, OKX contravened its own policy against letting people in the United States use its platform, and was used to facilitate more than $5 billion of suspicious transactions and criminal proceeds. OKX let U.S. customers conduct more than $1 trillion of transactions overall, generating hundreds of millions of dollars of fees and profits, and sometimes encouraged customers to skirt the train ban, prosecutors said. One employee allegedly told a customer to say it was based in the United Arab Emirates and to use random numbers for identification purposes. OKX also promoted itself in the United States, including by sponsoring the Tribeca Film Festival in Manhattan, prosecutors said. The guilty plea includes an $84.4 million fine plus a $420.3 million forfeiture, and requires OKX to employ through February 2027 an external compliance consultant it hired early last year. OKX received credit for cooperating with the probe. In a statement, Aux Cayes FinTech acknowledged the improper trading by U.S. customers, attributing them to "legacy compliance gaps." It also said the U.S. customers were a small percentage of its overall customer base, and are no longer on OKX's platform. Sign up here. https://www.reuters.com/legal/operator-okx-crypto-exchange-enters-guilty-plea-pay-more-than-504-million-us-2025-02-24/