2024-11-01 22:36

Intel worst performer on the Dow this year Nvidia stock rises 2.2% after hours, Intel down 1.6% Sherwin-Williams will also join the blue-chip index Nov 1 (Reuters) - Intel (INTC.O) , opens new tab will be replaced by Nvidia (NVDA.O) , opens new tab on the blue-chip Dow Jones Industrial Average index (.DJI) , opens new tab after a 25-year run, underscoring the shift in the chipmaking market and marking another setback for the struggling semiconductor firm. Nvidia will join the index next week along with paint-maker Sherwin-Williams (SHW.N) , opens new tab, which will replace Dow (DOW.N) , opens new tab, S&P Dow Jones Indices said on Friday. Once the dominant force in chipmaking, Intel has in recent years ceded its manufacturing edge to rival TSMC (2330.TW) , opens new tab and missed out on the generative artificial intelligence boom after missteps including passing on an investment in ChatGPT-owner OpenAI. Intel's shares have declined 54% this year, making the company the worst performer on the index and leaving it with the lowest stock price on the price-weighted Dow. Shares of Intel fell 1.6% in extended trading on Friday, while those of Nvidia were up 2.2%. This development comes a day after Intel expressed optimism about the future of its PC and server businesses, projecting current-quarter revenue above estimates but warning that it had "a lot of work to do." "Losing the status of Dow Jones inclusion would be another reputational blow for Intel, as it grapples with a painful transformation and loss of confidence," said Susannah Streeter, head of money and markets at Hargreaves Lansdown. "It would also mean that Intel is not included in exchange-traded funds (ETFs) which track the index, which could impact the share price further." Launched in 1968, the Silicon Valley pioneer sold memory chips before switching to processors that helped launch the personal computer industry. In the 1990s, "Intel Inside" stickers turned commodity electronic components into premium products, and eventually became ubiquitous on laptops. Intel's revenue was $54 billion in 2023, down nearly one-third from 2021, when Pat Gelsinger took over as CEO. Analysts expect Intel to report its first annual net loss this year since 1986. The company is worth less than $100 billion for the first time in 30 years. That pales in comparison to Nvidia, which is sitting at a $3.32 trillion valuation, making it the world's second-most valuable company. NVIDIA'S AI LEAD Nvidia has emerged as a cornerstone of the global semiconductor industry, thanks to the essential role its chips play in powering generative AI technologies which has driven a seven-fold surge in its shares over the past two years. The company's shares have risen more than two-fold this year alone. Once popular only among gamers who hunted for PCs with Nvidia's graphics processors, it is now seen as a barometer for the AI market. The company's 10-for-one stock split that took effect in June also helped pave the way for its addition to the index, making its soaring shares more accessible to retail traders. Intel, on the other hand, has struggled to gain share in the AI chip market dominated by Nvidia, with the front-runner's chips hard to get and even harder to replace in AI datacenters, owing to the processors' technological edge and the high costs of replacing them. Sign up here. https://www.reuters.com/technology/nvidia-replace-intel-dow-jones-industrial-average-2024-11-01/

2024-11-01 21:53

HOUSTON, Nov 1 (Reuters) - Chemical maker LyondellBasell Industries (LYB.N) , opens new tab on Friday detailed its long-announced plan to permanently shutter its 263,776 barrel-per-day (bpd) Houston oil refinery in the first quarter of 2025. The planned closing marks the latest in a wave of U.S. refinery closures as motor fuel demand is expected to peak this decade and decline under pressure from renewable fuels and electric vehicles. In January, one of the facility's crude distillation units (CDU) and coker production train will shut, Lyondell refining chief Kim Foley told analysts on a call to discuss third-quarter results. In February, the second CDU-coker production train, which supplies the gasoline-producing fluidic catalytic cracker (FCC) and ancillary units, will shut, ending motor fuel production, Foley said. For the fourth quarter of this year, Lyondell plans to run the refinery at 90% of its capacity. Lyondell originally planned to shutter the Houston refinery in 2023, but extended its life due to strong fuel margins. Last month, rival U.S. refiners Phillips 66 (PSX.N) , opens new tab and Valero Energy (VLO.N) , opens new tab announced plans to close one California refinery and put two others under review for possible closure in that state. Phillips 66's 139,000-bpd Los Angeles refinery will cease production by the end of 2025. "The refinery, if you think back historically, was originally designed to process in-state California crude production, and that has declined by about 75%," CEO Mark Lashier said. Valero CEO Lane Riggs said last month "all options are the table" for the company's 91,300-bpd Wilmington and 145,000-bpd Benicia, California, refineries. New California laws for maintaining emergency inventories would penalize operators and make their refineries unprofitable, Valero said in a filing with the U.S. Securities and Exchange Commission. In the last wave of U.S. refinery closures, which occurred between 2017 and 2022, nine crude oil refineries with a combined capacity of 1.2 million bpd were idled or converted to production of renewable fuels. Sign up here. https://www.reuters.com/business/energy/another-us-oil-refinery-vanish-with-lyondell-houston-plant-closing-2024-11-01/

2024-11-01 21:26

WINNIPEG, Manitoba, Nov 1 (Reuters) - Port of Vancouver foremen will be locked out on Monday unless they scrap a proposed strike, employers at Canada's biggest port said on Friday, but bulk grain handling would not be affected. Canada's west coast ports are major outlets for resource exports, including potash, coal, forestry products, pork and beef. A 13-day strike last year disrupted more than C$6 billion in trade at Vancouver and Port Rupert. The British Columbia Maritime Employers Association said the proposed lockout of more than 700 foremen was preventative as the unit of the International Longshore and Warehouse Union representing them had already issued a 72-hour strike notice. If the union withdraws the strike notice, Monday's lockout will not go ahead, the association said in a statement. The two sides are in protracted talks over a labor deal and have been negotiating with the help of a federal mediator. The stoppage would also affect the port of Prince Rupert. "In anticipation of escalating and unpredictable strike action, the BCMEA has made a decision to take defensive action in the form of a coastwide lockout," it said in a statement. "It will not affect longshoring operations on grain vessels or cruise operations." The association said the lockout notice has been issued in order to "facilitate a safe and orderly wind down of operations" in anticipation of a strike. ILWU local 514 president Frank Morena said in a statement that it had only planned "limited job action" such as refusing overtime and accepting some technological changes, Canadian Press reported. There impasse follows a long-simmering dispute over pay and working conditions, including concerns over automation. Each side has accused the other of bargaining in bad faith. On Thursday, a strike began at two terminals operated by Termont at the Port of Montreal. Grain and other exports from the west coast were hit in August by a labor dispute at Canada's two major railways, which the federal government ended by imposing binding arbitration. The government has resisted calls to interfere in collective bargaining in other disputes, other than offering mediation. While bulk grains like wheat and canola would not be affected, agricultural commodities shipped in containers like pulse crops and meats could be. "The potential lockout at British Columbia container terminals beginning Nov. 4 is catastrophic for Canada's pulse sector," said Pulse Canada President Greg Cherewyk. "This stoppage combined with the strike at two terminals at the Port of Montreal is jeopardizing the Canadian pulse industry's 1.4 million (metric) ton container export program in its peak shipping season." José Antonio Severin, business development manager at commodities supply chain consultancy the Mercury Group, said clients and local partners expected any possible strike to be short. U.S. meat exporters could benefit from Canada's inability to ship from the west coast. "A lengthy work stoppage at Vancouver could open an opportunity for the U.S. to sell more chilled pork to Japan," said Joe Schuele, spokesperson for the U.S. Meat Export Federation, a trade group. Sign up here. https://www.reuters.com/world/americas/vancouver-port-employer-could-shut-out-foremen-bulk-grain-will-not-be-hit-2024-11-01/

2024-11-01 20:36

Amazon.com surges as retail strength boosts profit US job growth slows sharply in October Consumer discretionary index pops 2.4% Indexes up: Dow 0.69%, S&P 0.41%, Nasdaq 0.8% Nov 1 (Reuters) - Wall Street's major indexes ended higher on Friday, rebounding from the previous day's sell-off as Amazon's strong earnings countered a significant drop in U.S. job growth in October. Amazon.com (AMZN.O) , opens new tab rose 6.2% after it reported earnings on Thursday that revealed strong retail sales, boosting profit above Wall Street estimates. Meanwhile, Apple (AAPL.O) , opens new tab fell 1.2% as investors worried about a decline in its China sales during its most recent quarter. Other so-called Magnificent Seven members Meta Platforms (META.O) , opens new tab and Microsoft (MSFT.O) , opens new tab also reported earnings earlier this week and warned on AI-related infrastructure costs, dragging the Nasdaq (.IXIC) , opens new tab down on Thursday. "A new month frequently seems to offer new optimism for investors - especially after we saw a sharp decline yesterday - and after seeing encouraging results from Apple and Amazon," said Sam Stovall, chief investment strategist at CFRA Research. Equity markets brushed off weak U.S. October nonfarm payrolls data, given disruptions from hurricanes and strikes. The data showed an increase of 12,000 jobs, much smaller than economists' estimate of a 113,000 rise. However, the unemployment rate held steady at 4.1%, reassuring investors the labor market remained on solid ground. After the jobs data was released, investors largely stuck to bets that the central bank would cut rates by 25 basis points in November. "Third-quarter earnings, interest rates and the election continue to be the main drivers in the near term," Stovall said. The Dow Jones Industrial Average (.DJI) , opens new tab rose 288.73 points, or 0.69%, to 42,052.19, the S&P 500 (.SPX) , opens new tab gained 23.35 points, or 0.41%, to 5,728.80 and the Nasdaq Composite (.IXIC) , opens new tab gained 144.77 points, or 0.80%, to 18,239.92. All three indexes were down for the week overall, with the S&P 500 falling 1.38%, the Nasdaq dropping 1.51% and the Dow slipping 0.16%. The U.S. election is on investors' minds, with many analysts predicting a close presidential race and some uncertainty over the final outcome. The Fed's November meeting kicks off the following day. Amazon.com's gains lifted the Consumer Discretionary index (.SPLRCD) , opens new tab 2.4% to a more than two-year high, while utility (.SPLRCU) , opens new tab and real estate (.SPLRCR) , opens new tab stocks were the biggest sectoral decliners. Intel (INTC.O) , opens new tab jumped 7.8% after a better-than-expected revenue forecast. An index of chip stocks (.SOX) , opens new tab rose 1%. Chevron (CVX.N) , opens new tab shares rose 2.8% after the company beat third-quarter profit estimates on higher oil output. Declining issues outnumbered advancers by a 1.21-to-1 ratio on the NYSE. There were 88 new highs and 93 new lows on the NYSE. The S&P 500 posted ten new 52-week highs and six new lows while the Nasdaq Composite recorded 67 new highs and 123 new lows. Volume on U.S. exchanges was 12.13 billion shares, compared with the 11.71 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-rise-amazon-results-boost-ahead-jobs-data-2024-11-01/

2024-11-01 20:35

TSX ends up 0.4% at 24,255.16 For the week, the index declines 0.9% Tech sector ends 1.3% higher Consumer discretionary adds 2% Nov 1 (Reuters) - Canada's main stock index rose on Friday, led by technology and consumer discretionary shares, as investors took advantage of the previous day's sharp decline and cheered the move into a seasonally strong period for the market. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 98.29 points, or 0.4%, at 24,255.16, after posting on Wednesday its biggest weekly decline in nearly three months. "I think there's probably a bit of rallying given the sell-off that happened yesterday," said Kevin Headland, co-chief investment strategist at Manulife Investment Management. "Seasonality tends to be strong" as November and December are typically strong months for the index, Headland added. Domestic economic data was upbeat. It showed that manufacturing activity increased at a faster pace in October as production and employment picked up in anticipation of rising orders. The consumer discretionary sector climbed 2%, helped by a 6.5% jump in the shares of Magna International (MG.TO) , opens new tab after the auto parts maker reported its third-quarter results. Shares of Air Canada (AC.TO) , opens new tab also posted strong gains, rising nearly 14%, after the company raised its annual core profit forecast and announced share buybacks, benefiting from strong demand for international travel. The move in Air Canada boosted industrials, which ended 0.7%higher, while technology added 1.3% and heavily weighted financials were up 0.9%. For the week, the index was down 0.9% as energy and interest-rate sensitive stocks lost ground and investors took some profits ahead of Tuesday's U.S. presidential election. Energy fell 0.9% on Friday as oil gave back much of its earlier gains, while the utilities and real estate sectors fell 0.9% and 0.8% respectively as bond yields rose. Sign up here. https://www.reuters.com/markets/tsx-futures-rise-higher-oil-prices-us-data-focus-2024-11-01/

2024-11-01 20:10

LONDON, Nov 1 (Reuters) - (This Nov. 1 story has been corrected to change the figure to 911 billion, not 911 million, in the headline and paragraph 1) An Australian computer scientist who claimed he invented bitcoin was on Friday accused of contempt of court after he filed a 911 billion-pound ($1.18 trillion) lawsuit against Twitter founder Jack Dorsey's payments firm Block (SQ.N) , opens new tab in Britain. Craig Wright claimed to have been the author of the foundational text of bitcoin published under the pseudonym "Satoshi Nakamoto". But a court found that there was "overwhelming evidence" that Wright did not write the 2008 text. The Crypto Open Patent Alliance took legal action against Wright to stop him suing bitcoin developers. After a trial at London's High Court, a judge said in a written ruling in May that Wright lied "extensively and repeatedly" and forged documents "on a grand scale". The judge in July referred Wright to Britain's Crown Prosecution Service to consider whether he should be prosecuted for perjury. He also made an injunction preventing Wright from bringing any litigation on the basis of his claim to be Satoshi. Wright is appealing against the ruling and a decision on whether he can bring an appeal has not yet been made. He denied forging documents when he gave evidence in February. COPA's lawyer Jonathan Hough said at a preliminary hearing on Friday that Wright was in breach of the injunction having filed a lawsuit against Square Up Europe Limited, which is ultimately owned by Block, earlier this month. Wright was not legally represented and appeared at the hearing by videolink from Singapore, Hough said. "I do not believe I am in contempt," Wright said. He added that, if he was found to be in contempt of court, he was willing to amend his lawsuit to make clear the case had "nothing to do with the ownership of the creation of the system". A hearing to determine whether Wright is in contempt will be heard in December. Wright's lawsuit against Block was put on hold in the meantime. Sign up here. https://www.reuters.com/technology/self-proclaimed-bitcoin-inventor-faces-contempt-court-case-over-12-bln-uk-2024-11-01/