2024-11-07 21:38

Nov 7 (Reuters) - Shares of Nvidia (NVDA.O) , opens new tab rallied to a record high on Thursday, making the chipmaker the first company in history to surpass a stock market value of $3.6 trillion as Wall Street extended a rally sparked by Donald Trump's return to the White House. The dominant AI chipmaker's shares rose 2.2%, lifted by broad investor optimism about tax cuts and lower regulations after the Republican candidate's Tuesday election victory. Nvidia's stock market value ended the day at $3.65 trillion, beating Apple's (AAPL.O) , opens new tab record closing market capitalization of $3.57 trillion reached on Oct. 21, before the chipmaker on Tuesday overtook the iPhone maker as the world's most valuable company, according to LSEG data. Apple's stock rose 2.1% on Thursday, leaving it with a market value of $3.44 trillion. The S&P 500 technology index (.SPLRCT) , opens new tab has surged over 4% in the two sessions since Trump won the election on Tuesday. Nvidia has been the U.S. stock market's biggest winner from a race between Microsoft (MSFT.O) , opens new tab, Alphabet (GOOGL.O) , opens new tab and other heavyweights to build out their AI computing capacity and dominate the emerging technology. The Silicon Valley chip designer's stock has climbed 12% in November, with its value tripling so far in 2024. Following this year's surge, Nvidia now exceeds the combined value of Eli Lilly (LLY.N) , opens new tab, Walmart (WMT.N) , opens new tab, JPMorgan (JPM.N) , opens new tab, Visa (V.N) , opens new tab, UnitedHealth Group (UNH.N) , opens new tab and Netflix (NFLX.O) , opens new tab. Analysts on average see Nvidia increasing its quarterly revenue by over 80% to $32.9 billion when it reports its results on Nov. 20, according to LSEG. In June, Nvidia briefly became the world's most valuable company before it was overtaken by Microsoft (MSFT.O) , opens new tab and Apple. The tech trio's market capitalizations have been neck-and-neck for several months. Microsoft's market value stood at nearly $3.16 trillion, with its stock up 1.25% on Thursday. Sign up here. https://www.reuters.com/technology/nvidia-surpasses-36-trillion-market-value-after-trump-win-2024-11-07/

2024-11-07 21:30

WASHINGTON, Nov 7 (Reuters) - U.S. mortgage rates increased to a four-month high this week and could rise further amid fears that President-elect Donald Trump's proposed economic policies could stoke inflation. The average rate on the popular 30-year fixed-rate mortgage climbed to 6.79%, the highest level since July, from 6.72% last week, mortgage finance agency Freddie Mac said on Thursday. It has increased for six straight weeks and has risen by 71 basis points since late September. As supply remains below pre-pandemic levels, rising mortgage rates and elevated house prices have combined to stifle sales of previously owned homes, which hit a 14-year low in September. "Buyers who were waiting until after the election to get into the market may not see rates as low as they had hoped," said Lisa Sturtevant, chief economist at Bright MLS. The 30-year fixed mortgage rate tracks the benchmark 10-year Treasury note, whose yield jumped to a four-month high in the aftermath of Republican Trump's victory in the U.S. presidential race. Trump campaigned on a platform of tax cuts, which economists say would juice the economy, widen budget deficits and increase government borrowing. He also promised to impose a 60% tariff on Chinese goods and at least a 10% levy on all other imports, which economists expect to re-ignite inflation and reduce the Federal Reserve's scope to cut interest rates. Most home owners have mortgage rates below 4% and the so-called "rate lock" is starving the market for previously owned homes of supply. Bright MLS estimated that the median monthly payment on a mortgage to buy a $400,000 home has increased by almost $200 in just six weeks. Sign up here. https://www.reuters.com/markets/us/us-30-year-fixed-rate-mortgage-rise-four-month-high-679-2024-11-07/

2024-11-07 21:28

Nov 7 (Reuters) - EOG Resources (EOG.N) , opens new tab boosted its share repurchase program on Thursday after the oil and gas firm beat Wall Street estimates for third-quarter profit, as higher production helped offset lower prices. Shares were up 1.6% after the bell. Data from the U.S. Energy Information Administration showed that the country's total oil consumption rose in July to the highest seasonal level since 2019. In July, gasoline demand was also at the highest seasonal levels since 2019, whereas jet fuel demand was the highest for any month since August 2019, benefiting oil firms like EOG Resources. Quarterly crude oil equivalent volumes was up 7.7% at 1.08 million barrels of oil equivalent per day (MMboepd) from the previous year. "Although we expect somewhat mediocre energy pricing in 2025, we think EOG's habitual focus on high-ROI projects, and its track record on cost reductions, suggests to us that earnings power will still be decent in the near-term," said CFRA Research analyst Stewart Glickman. EOG said it has approved a $5 billion increase in share repurchase authorization and also raised its regular dividend by 7%. "We are on track to return more than 85% of our expected full‐year free cash flow to shareholders and have the potential for additional cash return over the balance of the year," said CEO Ezra Yacob. The company now expects fourth-quarter crude oil equivalent volumes between 1.08 and 1.11 MMboepd and current year volumes in the range of 1.06 and 1.07 MMboepd. The Houston, Texas-based firm reported an adjusted profit of $2.89 per share for the quarter ended Sept. 30, compared with analysts' average estimate of $2.77 per share, according to data compiled by LSEG. Sign up here. https://www.reuters.com/business/energy/eog-resources-beats-third-quarter-profit-estimates-2024-11-07/

2024-11-07 21:13

Energy Dept funding key to Li-Cycle's US recycling plans Biden officials had rushed to close ahead of Trump's return Upstate NY plant would be one of the largest US sources of lithium Loan includes principal and capitalized interest Company now needs to secure private financing Nov 7 (Reuters) - The U.S. Department of Energy on Thursday finalized a $475 million loan for Li-Cycle Holdings (LICY.N) , opens new tab, giving the metals recycler a financial lifeline to build a New York battery processing facility seen as key to outgoing President Joe Biden's vision for a domestic electric vehicle supply chain. The long-awaited loan, which is $100 million higher than provisionally announced early last year, will keep the Glencore-backed (GLEN.L) , opens new tab company alive as it works to expand the recycling of batteries that are increasingly powering Americans' everyday lives, ranging from everyday electronics to EVs. The loan for the plant, which would be one of the largest U.S. sources of the battery metal lithium, also cements a key part of Biden's climate agenda, ensuring the company receives government financial support regardless of any steps that President-elect Donald Trump may take when he assumes office in January. Concerns that Trump could try to slow Washington's financial support for the renewable energy transition have spooked investors since his Tuesday victory. While Trump is not expected to be able to stop that transition, Biden officials are quickly moving to close loans and approve projects before January. Li-Cycle had sought the loan for nearly three years, but cost overruns and technical issues forced it to hire a corporate restructuring expert last year, a step that sparked questions about its survival. The company essentially found itself in a holding pattern while Washington reviewed the loan application, unable to advance its business plan even as it contended with rising inflation. Its stock has dropped more than 75% in the past year. The loan - which includes $445 million of principal and $30 million of capitalized interest - will allow the Toronto-based company to now solicit private capital to fund the remainder of its $960 million project, slated for Rochester near New York's border with Ontario. Construction could take 12 to 15 months once full funding is secured. "The loan demonstrates (the Energy Department's) role in supporting a strong domestic EV battery and critical materials supply chain, which is critical to strengthening America's national and energy security," said Jigar Shah, head of the Energy Department's Loan Program Office, which issued the financing. Biden officials in recent weeks have pushed to advance several U.S. critical minerals projects before leaving office in January, including permitting ioneer's INR.AX Nevada lithium mine, issuing a loan to Lithium Americas LAC.TO, and expanding a manufacturing tax credit to miners. "The big task from here is to get private financing and build this facility," said Ajay Kochhar, Li-Cycle's CEO. "We're positive that we're going to meet our end of the bargain, and we're positive that the U.S. government is going to do the same." The loan will have a 15-year term and an interest rate matching the 10-year U.S. Treasury rate when funds are issued. U.S. Senator Chuck Schumer, a New York Democrat who will lose his role as Senate majority leader in January, had advocated for Li-Cycle to receive the funding. The facility had been slated to open last year at a cost of roughly $485 million, but the Energy Department's rules for loan recipients to use union labor in part contributed to cost overruns and delays. Li-Cycle has developed a network of facilities in Arizona, Alabama and Ontario that produce black mass, which is essentially shredded battery parts. The Rochester facility will break down that black mass into lithium and other metals, the only facility of its kind in North America. Li-Cycle aims for the facility to produce 8,250 metric tons of lithium carbonate per year, as well as 72,000 metric tons of mixed hydroxide precipitate (MHP), which is essentially a precursor product containing nickel and cobalt that can be used to make batteries. Glencore, which has issued debt to Li-Cycle that can be converted into equity that would make it the company's largest shareholder, has agreed to buy all of the New York facility's MHP. That agreement, announced last week, helped secure the Energy Department loan, officials said. The facility is expected to create 825 jobs during construction and 200 permanent jobs once open. Li-Cycle plans to release its second-quarter earnings on Thursday. The Energy Department has provisionally agreed to lend $2 billion to Li-Cycle peer Redwood Materials, although that loan has not yet been finalized. Sign up here. https://www.reuters.com/sustainability/sustainable-finance-reporting/washington-seals-475-million-loan-battery-recycler-li-cycle-ahead-trumps-arrival-2024-11-07/

2024-11-07 21:01

NEW YORK, Nov 7 (Reuters) - Duke Energy will include minimum take provisions in its agreements for two new gigawatts of U.S. data centers in its service areas, as the utility continues to hammer out details of its power agreements with the businesses, Duke's chief financial officer told Reuters on Thursday. As the technology industry's race for electricity to power technologies like generative artificial intelligence drives up U.S. power demand, electric utilities have proposed new contract structures to protect the general public from higher power bills caused by the data center build-out. Contracts for data centers and other Duke customers with power demand at a single site of more than 100 megawatts would require payments for a minimum amount of electricity regardless of usage, CFO Brian Savoy said, adding that any agreements would need to be approved by regulators. The new data center customers, who have not been identified, have signed agreements, identified land they would use, but have not finalized power contracts with Duke. "Now we're negotiating over the next few months on what the contracts would look like," Savoy said. Discussions with the data center operators include whether they would co-invest in infrastructure needed for the centers and whether there would be a special tariff rate to try to safeguard the general public from rising power bills. Negotiations will likely happen over the next eight to 12 months on an agreement that would establish what the customer will pay for power, Duke said later on Wednesday in a company earnings call. The Carolinas, which Duke is the main power provider for, has attracted particular interest from data centers, the company said. Duke's service area includes North Carolina, South Carolina, Florida, Indiana, Ohio, and Kentucky. Sign up here. https://www.reuters.com/business/energy/duke-energys-new-2-gws-us-data-centers-include-minimum-take-agreements-cfo-says-2024-11-07/

2024-11-07 21:00

US weekly jobless claims rise moderately Fed cuts rates by 25 bps JP Morgan, Goldman weigh on Dow Indexes: Dow flat, S&P 500 up 0.74%, Nasdaq up 1.5% NEW YORK, Nov 7 (Reuters) - U.S. stocks closed higher on Thursday, after the Federal Reserve announced a cut of 25 basis points (bps) in interest rates, extending a sharp rally sparked by Donald Trump's return as U.S. president. The Fed cut interest rates by a quarter of a percentage point as policymakers took note of a job market that has "generally eased" while inflation continues to move toward the U.S. central bank's 2% target. Markets had almost fully priced in a 25-basis-point rate cut for the November meeting and will now eye upcoming commentary from the central bank for guidance about the path of monetary policy. Investor expectations that Trump would lower corporate taxes and loosen regulations sparked a surge in each of the three major indexes in the prior session, with both the Dow Industrials and S&P 500 recording their largest one-day percentage jumps in two years. "In an action-packed week, the Fed didn’t add any drama. Cutting by 25 basis points still keeps the federal funds rate restrictive, but not as restrictive as it was," said Brian Jacobsen, chief economist at Annex Wealth Management in Menomonee Falls, Wisconsin. "Elections have consequences and we could see a marginal improvement in growth relative to their forecasts, but also a marginal increase in inflation relative to their forecasts. That would call for a more gradual pace of rate reductions." The Dow Jones Industrial Average (.DJI) , opens new tab fell 0.59 point, or flat, to 43,729.34, the S&P 500 (.SPX) , opens new tab gained 44.06 points, or 0.74%, to 5,973.10 and the Nasdaq Composite (.IXIC) , opens new tab gained 285.99 points, or 1.51%, to 19,269.46. Communications services (.SPLRCL) , opens new tab, up 1.92%, led S&P sector gains, buoyed by a jump of 11.81% in Warner Bros Discovery (WBD.O) , opens new tab after a surprise third-quarter profit. Financials (.SPSY) , opens new tab were the weakest of the 11 major S&P sectors, down 1.62% to give back some of the outsized gains in the prior session, as banks (.SPXBK) , opens new tab declined 3.09% after a surge of nearly 11% on Wednesday. JP Morgan (JPM.N) , opens new tab lost 4.32% and Goldman Sachs (GS.N) , opens new tab shares shed 2.32% to weigh on the Dow. Expectations for continued rate cuts have been dialed back recently, however, as economic data continues to point to a resilient economy and the potential for higher inflation as a result of likely tariffs and increased government spending under Trump's administration. Fed Chair Jerome Powell said no decision has been made on what sort of policy action the central bank will take in December but the central bank is "prepared to adjust our assessment of the appropriate pace and destination” for monetary policy amid uncertainty. Investors are also eying whether Republicans could win control of both houses of Congress, making it easier for Trump's agenda to proceed. Treasury yields, which have surged in recent weeks, retreated after a sharp rise on Wednesday, as the benchmark 10-year yield eased from a four-month high of 4.479%, before briefly paring declines slightly after the Fed statement and were last at 4.332%. Data earlier on Thursday showed U.S. weekly jobless claims rose marginally last week, suggesting no material change in labor market conditions. Advancing issues outnumbered decliners by a 1.94-to-1 ratio on the NYSE and by a 1.18-to-1 ratio on the Nasdaq. The S&P 500 posted 56 new 52-week highs and 4 new lows while the Nasdaq Composite recorded 193 new highs and 88 new lows. Volume on U.S. exchanges was 16.78 billion shares, compared with the 12.46 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-steady-after-trump-fueled-rally-feds-rate-decision-awaited-2024-11-07/