2024-04-25 20:46

Alphabet, Microsoft advance in extended hours after results IBM drops after HashiCorp deal, disappointing Q1 revenue Caterpillar falls on downbeat Q2 sales forecast Indexes end down: Dow 0.98%, S&P 0.46%, Nasdaq 0.64% NEW YORK, April 25 (Reuters) - Wall Street stocks closed lower on Thursday as markets were stunned by data showing slower-than-expected U.S. economic growth and persistent inflation, coupled with a sell-off in large cap stocks triggered by disappointing results from Meta Platforms (META.O) New Tab, opens new tab. Data on Thursday showed that the U.S. economy grew at its slowest pace in nearly two years in the first quarter while inflation accelerated, dampening hopes that the Federal Reserve would begin cutting interest rates this year. Disappointing results from Meta, whose shares plunged nearly 11%, also weighed on market sentiment. Three other Magnificent Seven stocks, including Alphabet (GOOGL.O) New Tab, opens new tab, Amazon.com (AMZN.O) New Tab, opens new tab and Microsoft (MSFT.O) New Tab, opens new tab, finished lower. However, shares of Alphabet and Microsoft were advancing in extended hours trading after both companies reported quarterly results that beat Wall Street estimates. Intel (INTC.O) New Tab, opens new tab forecast second-quarter revenue and profit below market estimates, sending its shares down 8% in extended hours trading. Equities in the communications sector (.SPLRCL) New Tab, opens new tab, dragged down by Meta, were the biggest losers in S&P 500 (.SPX) New Tab, opens new tab. Other categories of stocks that lost ground are in healthcare, real estate, financials, consumer staples, and consumer discretionary sectors. "The GDP numbers definitely puts a ding in the paradigm that markets were hanging onto for equities in terms of high growth; and if you don't have high growth that will translate to lower-than-expected earnings," said James St. Aubin, chief investment officer at Sierra Mutual Funds in California. The Dow Jones Industrial Average (.DJI) New Tab, opens new tab fell 375.12 points, or 0.98%, to 38,085.80, the S&P 500 (.SPX) New Tab, opens new tab lost 23.21 points, or 0.46%, to 5,048.42 and the Nasdaq Composite (.IXIC) New Tab, opens new tab lost 100.99 points, or 0.64%, to 15,611.76. Money markets are pricing in just about 36 basis points of rate cuts from the Fed this year, down from about 150 bps seen at the start of the year, according to LSEG data. Separately, the number of Americans filing new claims for unemployment benefits unexpectedly fell last week, pointing to still tight labor market conditions. The March Personal Consumption expenditures (PCE) index, the Fed's preferred inflation gauge, is due on Friday. "The double whammy was also the inflation number that came in stronger than expected so there wasn't really a silver lining in that report; it's still positive in absolute terms but relative to high expectations it was disappointing," St. Aubin added. International Business Machines (IBM.N) New Tab, opens new tab fell 8% after it announced a $6.4 billion deal to buy HashiCorp (HCP.O) New Tab, opens new tab alongside its first-quarter results, in which revenue missed estimates. Southwest Airlines (LUV.N) New Tab, opens new tab slid nearly 7% as the carrier slashed its projections for new aircraft deliveries from Boeing (BA.N) New Tab, opens new tab in 2024 for the third time. Caterpillar (CAT.N) New Tab, opens new tab shed 7% after it cut second quarter sales forecasts as demand for its construction equipment eases from last year's boom. Rising gold prices helped Newmont(NEM.N) New Tab, opens new tab, the world's largest bullion miner, to report first quarter profit that beat estimates. Its shares gained 12%. Declining issues outnumbered advancers by a 2.3-to-1 ratio on the NYSE. There were 72 new highs and 85 new lows on the NYSE. On the Nasdaq, 1,410 stocks rose and 2,819 fell as declining issues outnumbered advancers by a 2-to-1 ratio. The S&P 500 posted 14 new 52-week highs and seven new lows while the Nasdaq recorded 37 new highs and 203 new lows. Volume on U.S. exchanges was 10.7 billion shares, compared with the 11.07 billion average for the last 20 days. Sign up here. https://www.reuters.com/markets/us/futures-falter-meta-platforms-weighs-megacaps-2024-04-25/

2024-04-25 20:46

April 25 (Reuters) - Refiner Valero Energy (VLO.N) New Tab, opens new tab beat first-quarter profit estimates on Thursday, benefiting from sustained demand as supplies remained tight due to disruptions in Russia and maintenance work at U.S. refineries. Fuel supplies came under pressure as Ukrainian drone attacks shut several Russian refineries, while U.S. refiners routinely scheduled maintenance in the first quarter to prepare equipment for high demand in the summer driving season. Despite the disruptions, overall U.S. product supplied, a proxy for demand, averaged at 20.10 million barrels per day (bpd) at the end of March, compared with 19.7 million bpd a year earlier, according to U.S. Energy Information Administration data. "We are pleased to report strong financial results for the first quarter despite heavy planned maintenance across our refining system," Valero CEO Lane Riggs said. The company said it plans to run its refineries at up to 95% of their total combined throughput capacity of 3.2 million barrels per day in the second quarter. Its seven U.S. Gulf coast refineries are set to operate at 99% of combined 1.9 million bpd throughput capacity, the company said on Thursday. Shares of the company were little changed, trading around $167 on Thursday afternoon. The stock is up 28% year-to-date. Valero, which kicked off earnings for refiners, said its quarterly margins stood at $3.53 billion, compared with $5.9 billion a year earlier. Its refining throughput volumes averaged 2.8 million bpd, down from 2.9 million bpd. Margins and profits of U.S. refiners have normalized after hitting sky-high levels in 2022, when Russia's invasion of Ukraine had disrupted crude supplies. Weaker economic activity and an increase in global refining capacity have further stabilized their earnings. "Valero posted stronger results in all three operating segments, although lower costs and higher volumes in refining and better volumes and margins in renewable diesel made the most difference," said Matthew Blair, managing director at TPH&Co. The refiner reported an adjusted net income of $3.82 per share in the quarter, above analysts' average estimate of $3.24 per share, according to LSEG data. Valero also said its sustainable aviation fuel project, DGD Port Arthur plant, is now expected to be operational in the fourth quarter, ahead of its earlier target of 2025. Sign up here. https://www.reuters.com/business/energy/refiner-valero-beats-first-quarter-profit-estimates-2024-04-25/

2024-04-25 20:14

April 25 (Reuters) - The U.S. Environmental Protection Agency on Thursday finalized new regulations targeting pollution from power plants, including a landmark rule that requires sweeping reductions in carbon emissions from existing coal and new gas plants to combat climate change. The move is expected to usher in major legal challenges. Here’s what you need to know. WHAT DO THE RULES DO? The EPA’s four rules require drastic cuts in carbon pollution from power plants and update long-standing measures to reduce mercury and toxic air pollutants, clean up wastewater and lessen coal ash discharges. The power plant emissions rule mandates that many new gas and existing coal plants reduce their greenhouse gas emissions by 90% by 2032. That could require the U.S. power industry to install billions of dollars worth of emissions control technologies or shut down the dirtiest facilities operating today. The agency says the most stringent reductions can be achieved through the installation of carbon capture and sequestration (CCS) technology, which traps greenhouse gasses as they are released. The EPA projects the emissions rule will cut 1.38 billion metric tons of carbon pollution through 2047, which is equivalent to preventing the annual emissions from 328 million gas-powered cars. HOW HAVE COURTS RESPONDED TO EARLIER PLANT RESTRICTIONS? The new carbon emissions regulations come nearly two years after the U.S. Supreme Court struck down a previous power plant emissions rule developed during the Obama administration, which sought to spur a shift from coal to cleaner energy sources. In its 6-3 ruling in West Virginia v. EPA New Tab, opens new tab, the Supreme Court found that the Clean Air Act did not expressly authorize the EPA to require electricity generators to shift from fossil fuels to energy sources like wind or solar that emit less carbon dioxide. The decision invoked the "major questions" legal doctrine, which requires regulatory agencies to possess explicit congressional authorization before they can take consequential actions on issues of far-reaching importance and societal impact. The new plant emissions rule does not directly require a shift from fossil fuels. Legal experts say it attempts to hew closer to a more traditional reading of the agency's power in the Clean Air Act by favoring technologies like carbon capture and sequestration that can be installed at the power plants themselves. HOW COULD LEGAL CLASHES OVER THE RULE SHAPE UP? West Virginia Attorney General Patrick Morrissey on Thursday promised to challenge the power plant emissions rule in court. Last year, Morrissey led a group of Republican attorneys general who complained that the rule sets “unrealistic” and expensive standards that go well beyond the EPA’s legal authority. The states said the rules would “kill jobs, raise energy prices, and hurt energy reliability.” U.S. Senator Shelley Moore Capito of West Virginia, the top Republican on the Senate environment committee, separately said on Thursday she would introduce a resolution to overturn the rules. Republican-led states and industry groups are likely to claim in any lawsuits that the emissions rule far surpasses the EPA's legal authority, triggers the major questions doctrine and violates administrative law. The other pollution rules announced Thursday are also likely to be targeted in court. Legal experts say the EPA’s decision to trim the final carbon emissions rule compared to an earlier proposal – including by removing hydrogen as a “best system of emissions reduction,” and removing requirements New Tab, opens new tab for existing gas plants – may make the rule somewhat easier to defend but will not stop the coming courtroom blitz. Business and electric utility groups including the U.S. Chamber of Commerce and the Edison Electric Institute have said the rule relies too heavily on carbon-quelling technologies that have not been deployed at scale and face significant regulatory hurdles. They also argued that installing capture and sequestration systems would require building pipelines and emissions storage facilities outside the power plants themselves. Sign up here. https://www.reuters.com/legal/new-epa-power-sector-rules-set-up-likely-legal-clashes-2024-04-25/

2024-04-25 20:11

TSX ends up 0.1%, at 21,885.38 Materials group rallies 2.2% Teck Resources gains on higher copper production Technology shares lead declines April 25 (Reuters) - Canada's main stock index ended higher on Thursday, clawing back its earlier losses, as higher commodity prices offset worries that sticky inflation in the United States could delay Federal Reserve interest rate cuts. The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) New Tab, opens new tab ended up 11.66 points, or 0.1%, at 21,885.38, recovering after it was down more than 1% earlier in the session. "It's doing a lot better than the U.S. market," said Colin Cieszynski, chief market strategist at SIA Wealth Management. "When the U.S. market is tanking, gold is usually going up. That always cushions us on the downside." Wall Street stocks fell as markets were stunned by data showing slower-than-expected U.S. economic growth and persistent inflation coupled with a sell-off in large cap stocks. The materials group (.GSPTTMT) New Tab, opens new tab, which includes metal miners and fertilizer companies, rallied 2.2% as gold and copper prices climbed. Teck Resources Ltd (TECKb.TO) New Tab, opens new tab reported a 74% rise in quarterly copper production, helped by a ramp-up at its Quebrada Blanca (QB) mine in Chile, sending its shares up 8.7%. Energy (.SPTTEN) New Tab, opens new tab also gained ground, rising 0.7%, as the price of oil settled 0.9% higher at $83.57 a barrel. Bombardier (BBDb.TO) New Tab, opens new tab obtained an exemption from recent Canadian sanctions on Russian titanium, its CEO said, as it joined Airbus (AIR.PA) New Tab, opens new tab in securing a government waiver that allows access to the strategic metal. Shares of Bombardier climbed 8.3%. Technology (.SPTTTK) New Tab, opens new tab shares were among the biggest decliners, with the sector falling 1.8%. Shares of Mullen Group (MTL.TO) New Tab, opens new tab sank 9.1% after the logistics provider's first-quarter results missed analysts' estimates. Sign up here. https://www.reuters.com/markets/tsx-futures-fall-downbeat-earnings-2024-04-25/

2024-04-25 19:50

April 25 (Reuters) - The International Monetary Fund (IMF) and Ecuadorean authorities have reached a staff-level agreement to underpin a four-year, $4 billion extended fund facility (EFF), the IMF said in a statement on Thursday. "Amid a challenging macroeconomic outlook, our objective has been and remains to support the authorities' efforts to improve the living standards of all Ecuadoreans, with a focus on protecting the most vulnerable and promoting sustainable growth," said IMF mission chief for Ecuador Varapat Chensavasdijai. The deal is subject to executive board approval, the statement added, without specifying a date for a board discussion. "The amount is a positive as well as the fact that it is an EFF program," said Shamaila Khan, head of fixed income for Emerging Markets and Asia Pacific at UBS Asset Management. "Risk is, as with all IMF programs, being able to stick to the policies required," she added, noting that the agreement was already expected in financial markets. Given the $4 billion is roughly similar to what Ecuador needs to repay the fund in principal over the same time period, meaning no additional fresh cash, Goldman Sachs said they do not expect the program to hinge on a demanding set of requirements. "Payments to the IMF constitute a significant fraction of external debt repayment obligations," added Goldman economist Sergio Armella in a research note. "As such, conditional on its approval, the new program should reduce near term financial risks." Ecuadorean officials had in the past week hinted that a deal with the Washington lender was near, boosting the price of the country's international bonds. Ecuador bonds had returned over 55% year to date at the index level (.JPMEGDEQUR) New Tab, opens new tab, and on Thursday spreads to comparable U.S. debt narrowed by 41 basis points to 1,118 bps, on track to end the day at the tightest since February 2023 according to LSEG data. Sign up here. https://www.reuters.com/world/americas/imf-ecuador-reach-four-year-4-bln-staff-level-agreement-2024-04-25/

2024-04-25 19:41

CHICAGO, April 25 (Reuters) - Colombia has restricted the import of beef and beef products coming from U.S. states where dairy cows have tested positive for avian influenza as of April 15, according the U.S. Department of Agriculture. It is the first country to officially limit trade in beef due to bird flu in cows, in a sign of a broadening economic impact of the virus that has restricted poultry trade globally. Colombia imports a small amount of beef from the U.S. annually, according to government data and market analysts. In a notice New Tab, opens new tab this week on the USDA's Food Safety and Inspection Service website, which was last updated on April 22, the agency said the ban includes beef products derived from cattle slaughtered in Idaho, Kansas, Michigan, New Mexico, North Carolina, Ohio, South Dakota and Texas. Colombia imposed temporary restrictions on raw bovine meat products, the notice said. If exporters have a valid import permit, shipments may still be held at the port. The restrictions come as the U.S. government said it will require dairy cattle moving between states to be tested for bird flu starting on Monday, as federal officials ramp up their response to an outbreak that has bled over into the U.S. milk supply. The measures aim to contain the spread of bird flu, which has been reported in eight states and 33 dairy herds since it was first detected in late March in Texas. A person exposed to cattle tested positive for the disease and suffered conjunctivitis. To date, no U.S. beef cattle have tested positive for bird flu, government officials said. Colombia is the only country that has officially imposed restrictions on U.S. beef exports over the H5N1 outbreak, said Joe Schuele, spokesman for the U.S. Meat Export Federation, an industry group. "We don't feel that import restrictions related to the avian flu outbreak have any scientific basis," he said, adding: "It's certainly a big deal for exporters who are doing business in Colombia and for their customers." USDA officials are talking with Colombia about the issue, Schuele said. Trading partners have requested additional information on the government's epidemiology, Rosemary Sifford, USDA's chief veterinary officer, said in a webinar on Thursday. "We are responding to their requests for information as we receive them, to provide information that assists them in mitigating any trade impacts," Sifford said. USDA officials did not say which trading partners asked for such information. Sign up here. https://www.reuters.com/markets/commodities/colombia-becomes-first-country-restrict-us-beef-due-bird-flu-dairy-cows-2024-04-25/