2024-12-09 23:27

Nvidia falls after Chinese regulator launches antitrust probe Hershey jumps after report that Mondelez exploring acquisition Indexes down: Dow 0.54%, S&P 0.61%, Nasdaq 0.62% Dec 9 (Reuters) - Wall Street's main indexes closed lower on Monday, driven by a drop in AI leader Nvidia that weighed on tech stocks, as investors looked ahead to a crucial inflation report set for later this week. Nvidia (NVDA.O) , opens new tab fell 2.5% after China's market regulator launched an investigation into the chipmaker over suspected violation of antimonopoly law, dragging the information technology sector (.SPLRCT) , opens new tab down 0.45%. Advanced Micro Devices (AMD.O) , opens new tab slipped 5.7% after BofA Global Research downgraded its rating on the stock, weighing on the Philadelphia Semiconductor Index (.SOX) , opens new tab, which slipped 0.87%. "The market was taken a bit by surprise regarding China's investigating (Nvidia) as a possible antimonopoly-law violation. So that's one thing that's putting a little damper on the market," said Sam Stovall, chief investment strategist at CFRA Research in New York. The Dow Jones Industrial Average (.DJI) , opens new tab fell 240.59 points, or 0.54%, to 44,401.93, the S&P 500 (.SPX) , opens new tab lost 37.42 points, or 0.61%, to 6,052.85 and the Nasdaq Composite (.IXIC) , opens new tab lost 123.08 points, or 0.62%, to 19,736.69. Nine out of 11 S&P 500 sectors lost ground, led by declines in financial stocks. Comcast (CMCSA.O) , opens new tab slid 9.5% after forecasting a loss of more than 100,000 broadband subscribers in the fourth quarter, denting the communication services sector (.SPLRCL) , opens new tab by 1.3%. Shares of Hershey (HSY.N) , opens new tab surged 10.9% following a media report that Cadbury parent Mondelez (MDLZ.O) , opens new tab was exploring an acquisition of the chocolate maker. Mondelez shares fell 2.3%. Investors are anticipating the consumer price index (CPI) data set for release on Wednesday, along with the producer price index (PPI) on Thursday, ahead of the Federal Reserve's meeting on Dec. 17-18. Bets of a 25-basis-point rate cut at the upcoming meeting shot up to more than 85% after data on Friday showed a rise in the unemployment rate to 4.2% in November, indicating an easing labor market. Several Fed officials, including Chair Jerome Powell, emphasized caution regarding the central bank's approach to easing monetary policy due to the economy's resilience. Wall Street's main indexes started December on a positive note, with the benchmark S&P 500 (.SPX) , opens new tab and the tech-heavy Nasdaq (.IXIC) , opens new tab both gaining in their first week, while the blue-chip Dow (.DJI) , opens new tab ended the week slightly lower. On Monday, Workday (WDAY.O) , opens new tab rose 5.1% after S&P Dow Jones Indices said last week the company would be added to the S&P 500 index. Interpublic Group (IPG.N) , opens new tab climbed 3.6% following a report that marketing giant Omnicom (OMC.N) , opens new tab was in advanced talks to acquire the advertising company. Omnicom shares fell 10.3%. U.S. stocks soared in November after Donald Trump won the presidential election and his party secured control of both houses of Congress, raising expectations for a more business-friendly policy agenda. Declining issues outnumbered advancers by a 1.24-to-1 ratio on the NYSE. There were 216 new highs and 35 new lows on the NYSE. The S&P 500 posted 21 new 52-week highs and 2 new lows while the Nasdaq Composite recorded 122 new highs and 60 new lows. Volume on U.S. exchanges was 15.11 billion shares, compared with the 14.46 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-steady-investor-focus-turns-inflation-data-2024-12-09/

2024-12-09 22:34

LONDON, Dec 9 (Reuters) - British finance minister Rachel Reeves said she wanted government departments to find 5% savings in their budgets in an attempt to cut waste and focus on policy priorities, in an overhaul how the public sector works ahead of a spending review. The Treasury said in a statement that every pound the government spends would be subjected to a line-by-line review to ensure it was being spent on delivering the agenda that Starmer set out last week, and giving value for money. The last time government departments were asked to undertake a so-called 'zero-based review' of public spending was 17 years ago, it said. The government is due to announce the details of its multi-year spending review next year. Reeves said that reform of public services would ensure they were "up to scratch for modern-day demands," and that by inspecting every pound of government spend, the government would put an end to waste. "I have no doubt that we can find efficiency savings within government spending of 5% and I am determined to do so," Reeves told reporters on Tuesday. "It's through finding those efficiency savings that we'll have the money to spend on the priorities of the British people." Departmental budgets will be scrutinised by panels of external experts and letters had been sent to each department advising they should take "difficult" decisions to stop any spending that does not contribute to a government priority. Reeves said in October that she was aiming to balance day-to-day spending with tax revenues by the end of the decade and she set tight limits for spending on public services in the coming years. Following an election win for the Labour Party in July, Reeves' first budget was criticised by businesses for increasing tax on hiring, and demand for workers in Britain collapsed following the announcement, a survey showed on Monday. Asked if she would put up taxes again next year, she said she couldn't write future fiscal policy now, but said that October's budget was a one-off. Sign up here. https://www.reuters.com/world/uk/britain-tells-departments-focus-spending-starmers-priorities-2024-12-09/

2024-12-09 22:05

Dec 10 (Reuters) - A look at the day ahead in Asian markets. The Reserve Bank of Australia's interest rate decision takes center stage on Tuesday, while debate intensifies over the likely success - or otherwise - of China's surprise announcement that it plans to implement looser monetary and fiscal policy. The RBA is widely expected to keep its cash rate unchanged at 4.35%, so the focus will be on when Governor Michele Bullock signals the easing cycle might start. Economists polled by Reuters reckon it will be some time in the second quarter, and Aussie money markets are pointing to a quarter point cut on April 1. Sentiment across Asia may be dented by Wall Street's slide on Monday, but investors continue to digest the first shift in China's broad policy stance since 2010. The Politburo's recommendation that a "more proactive" fiscal policy and "moderately loose" monetary policy be followed may not be on the same scale as Mario Draghi's famous "whatever it takes" pledge to save the euro in 2012. But it could still be hugely significant in China's battle to emerge from the property bust, deflation and sub-par growth. China bulls argue that, following the blitz of fiscal and market-supporting liquidity measures earlier this year, Beijing's commitment to get the economy back on track can no longer be questioned. Although it will take time for policies to take effect, the dial has definitely shifted, so investors would do well to get in and buy Chinese equities now. Those of a more cautious persuasion will say actions speak louder than words, and point out that Beijing has promised much in recent years but always under-delivered. Unless Beijing assumes the banking sector's bad loans and bails out the banks, nothing will materially change. Chinese stocks are still considerably higher than they were before the first stimulus and market support measures were announced in September, and billionaire hedge fund manager David Tepper's subsequent "buy everything" call on China. China's economic surprises index has bounced back too. But economists remain skeptical over the 2025 growth outlook and Chinese bond yields are sinking - the 10-year yield is below 2% for the first time on record, and the 30-year yield is below the Japanese equivalent for the first time in around 20 years. Hardly the signs of recovery. In addition, any optimism may be tempered by the latest inflation figures which suggest Beijing's efforts to revive economic activity and demand are having a limited impact so far. Sino-US trade tensions are bubbling up again too. China said on Monday it has launched an investigation into Nvidia Corp over suspected violations of the country's anti-monopoly law. The move is widely seen as a retaliatory shot against Washington's latest curbs on the Chinese chip sector. Here are key developments that could provide more direction to markets on Tuesday: - Australia's interest rate decision - China trade (November) - Taiwan's TSMC monthly sales announcement Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-2024-12-09/

2024-12-09 21:25

HOUSTON, Dec 9 (Reuters) - Oilfield service companies ramped up hiring in November, adding 1,890 jobs in the sector, according to data from trade group Energy Workforce & Technology Council released on Monday. WHY IT'S IMPORTANT Oilfield service hiring can serve as an indicator of the health of the sector. Companies bringing on more employees could imply more drilling to come. BY THE NUMBERS Total jobs in the U.S. energy services sector rose to 655,630 in November, up from 654,062 in October, the data showed. In Texas, home of the prolific Permian basin which accounts for just under half of national oil production, 765 jobs were added, bringing the state's total to 319,489. CONTEXT President-elect Donald Trump promised voters lower fuel prices, pledging to ramp up domestic production in his "dril, baby, drill" campaign. But in practical terms, Trump cannot fully control prices. And producers broadly remain focused on capital discipline over new drilling. Sign up here. https://www.reuters.com/business/energy/oilfield-service-companies-add-more-jobs-november-trade-group-says-2024-12-09/

2024-12-09 21:19

Dec 9 (Reuters) - Bitcoin, the world's biggest and best-known cryptocurrency, fell 5% to $95,519 at 2103 GMT on Monday. Bitcoin is down 7.1% from the year's high of $103,647 on Dec. 5. Sign up here. https://www.reuters.com/technology/bitcoin-falls-5-95519-2024-12-09/

2024-12-09 21:15

Dec 9 (Reuters) - Kinder Morgan (KMI.N) , opens new tab forecast higher earnings for 2025 on Monday as the U.S. pipeline operator bets on growth in its natural gas pipelines and energy transition ventures amid rising demand for the fuel. Shares of the Houston, Texas-based company were up 1.7% after the market close. Pipeline operators such as Kinder Morgan are also banking on electric generation associated with artificial intelligence operations, cryptocurrency mining and data centers. Net income attributable to the company is expected to be $1.27 per share in 2025, in line with analysts' average estimate, according to data compiled by LSEG. Kinder Morgan had forecast a profit of $1.17 per share for end-2024. The company's third-quarter profit fell short of Wall Street estimates earlier this year. It had also lowered its annual profit forecast as the U.S. pipeline operator contended with lower crude volumes. However, the company now expects to generate $8.3 billion of adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) in 2025, up nearly 4% from the 2024 forecast of $8 billion. Kinder Morgan, one of the largest energy infrastructure companies in North America, operates about 79,000 miles of pipelines. A lower net debt-to-adjusted EBITDA ratio would provide the company with good capacity for "additional opportunistic investment," said CEO Kim Dang in the statement. Kinder Morgan added it expects to invest $2.3 billion in discretionary capital expenditures, including expansion projects and contributions to joint ventures. Sign up here. https://www.reuters.com/business/energy/kinder-morgan-forecasts-higher-profit-2025-2024-12-09/