2024-04-17 22:38

United Airlines gains on upbeat Q2 profit forecast Travelers falls after Q1 profit miss Fed's Beige Book shows slight expansion in economic activity Indexes off: Dow 0.12%, S&P 500 0.58%, Nasdaq 1.15% NEW YORK, April 17 (Reuters) - U.S. stocks fell in choppy trading on Wednesday as investors assessed the Federal Reserve's interest rate stance and a batch of soft earnings early in the financial reporting season. Travelers(TRV.N) New Tab, opens new tab tumbled 7.41% and was among the biggest drags on the S&P 500 and largest on the Dow Industrials after the insurance giant missed Wall Street expectations for first-quarter profit. Also weighing on the benchmark S&P index (.SPX) New Tab, opens new tab after quarterly results were Prologis(PLD.N) New Tab, opens new tab, with the warehouse-focused real estate investment trust dropping 7.19%, and Abbott Laboratories(ABT.N) New Tab, opens new tab, which fell 3.03% after topping quarterly estimates but disappointing on its annual forecast. After a rally in the last two months of 2023 that extended into the first quarter, equities have struggled with the S&P 500 registering its fourth straight session of declines. The index is on pace for its third straight weekly loss as investors have dialed back expectations for the timing and size of the Fed's rate cuts. On Tuesday, U.S. central bank officials including Fed Chair Jerome Powell backed away from providing guidance on when rates may be cut, saying instead that monetary policy needs to be restrictive for longer. "The markets are dealing with a couple things - inflation is hotter than most expect, rate cut expectations are coming down and we've had a ramp higher in geopolitical tensions, particularly out of the Middle East," said Anthony Saglimbene, chief market strategist at Ameriprise Financial in Troy, Michigan. "It's just an excuse for traders to kind of move to the sidelines and markets to kind of take a breath after a really, really strong five months of gains." The Dow Jones Industrial Average (.DJI) New Tab, opens new tab fell 45.66 points, or 0.12%, to 37,753.31, the S&P 500 (.SPX) New Tab, opens new tab lost 29.20 points, or 0.58%, to 5,022.21 and the Nasdaq Composite (.IXIC) New Tab, opens new tab lost 181.88 points, or 1.15%, to 15,683.37. The four-session S&P 500 sell-off is the longest in just over four months, matching a four-day run of declines ended on Jan. 4. Fed Board Governor Michelle Bowman and Cleveland Fed President Loretta Mester are scheduled to speak later in the day. The Fed's Beige Book survey of economic activity showed a slight expansion from late February through early April and companies feared that progress in lowering inflation would stall. After the market began to largely price in a June cut from the Fed earlier this year, expectations for a cut of at least 25 basis points have shriveled to 16.8%, and for a July cut to 46%, CME'sFedWatch Tool New Tab, opens new tabshowed. Stocks pared losses as U.S. Treasury yields eased further from the previous day's multi-month highs following a strong auction of 20-year bonds , with the 10-year note last around 4.59%. Among gainers, United Airlines (UAL.O) New Tab, opens new tab surged 17.45% after it forecast stronger-than-expected current-quarter numbers, helping to boost the NYSE Arca airline index (.XAL) New Tab, opens new tab by 3.82%. its biggest daily percentage jump since Feb. 6. JB Hunt Transport Services (JBHT.O) New Tab, opens new tab slumped 8.12% as the worst performer on the S&P 500 after the trucking firm missed Wall Street estimates for first-quarter results. U.S. Bancorp (USB.N) New Tab, opens new tab dropped 3.61% after the lender cut its forecast for full-year interest income and reported a 22% fall in first-quarter profit. On the NYSE declining issues outnumbered advancers by a 1.1-to-1 ratio and a 1.54-to-1 ratio on the Nasdaq. The NYSE had 21 new highs and 103 new lows. On the Nasdaq, there were 27 new highs and 240 new lows. Volume on U.S. exchanges was 10.8 billion shares, compared with the 11.05 billion average for the full session over the last 20 trading days. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/us/futures-inch-up-megacap-support-earnings-fed-comments-tap-2024-04-17/

2024-04-17 22:07

April 17 (Reuters) - U.S. railroad operator CSX (CSX.O) New Tab, opens new tab reported first-quarter earnings above Wall Street estimates on Wednesday, helped by higher intermodal volumes and coal export demand, sending its shares up 2% in after-hours trading. The Jacksonville, Florida-based company's net earnings fell to $893 million, or 46 cents per share, for the quarter ended March 31, from $987 million, or 48 cents per share, a year earlier. However, it narrowly beat profit estimates of 45 cents per share, according to LSEG data. Revenue slipped 1% to $3.68 billion, but it was slightly above analysts' average expectations of $3.67 billion. The year-on-year fall was due to lower fuel surcharge, weaker trucking revenue and reduced export coal prices, which offset gains in merchandise pricing and higher intermodal and coal volumes. The company reported quarterly merchandise volumes of 645,000 units, marginally down from 647,000 units a year ago. Its total coal shipments were up 2% at 21.2 million tons, while domestic shipments were down 17% on the back of replenished utility stockpiles and weaker natural gas prices. Unfavorable winter weather and the recent collapse of Francis Scott key bridge in Baltimore posed infrastructure and operational challenges to railroads, which continue to operate in an elongated freight downcycle. Earlier this month, CSX said it was starting a new freight rail service between Baltimore and New York in order to circumvent the closure of the Port of Baltimore following the bridge collapse. It also said its existing coal customers should expect "potential shipment delays" after the accident and added that it plans to keep its Curtis Bay coal pier operational, which is located near the site of the accident. The company's operating margin came in at 36.8% for the quarter, down 2.7% from a year earlier. CSX's East Coast competitor Norfolk Southern (NSC.N) New Tab, opens new tab is scheduled to report its first-quarter results on April 24. Stay up to date with the latest news, trends and innovations that are driving the global automotive industry with the Reuters Auto File newsletter. Sign up here. https://www.reuters.com/business/autos-transportation/csx-beats-quarterly-estimates-higher-intermodal-coal-export-volumes-2024-04-17/

2024-04-17 21:52

WASHINGTON, April 17 (Reuters) - The European Central Bank deposit rate should be "much closer" to 3% by the end of the year from a record high of 4% currently if disinflation continues as expected, ECB policymaker Bostjan Vasle said on Wednesday. "We should be much closer to 3% towards the end of the year if everything goes according to plan,” Vasle, Slovenia's central bank governor, told Reuters on the sidelines of the International Monetary Fund and World Bank's Spring Meetings. He cautioned, however, that he saw "some worrying developments in the Middle East" after Iran's attack on Israel last weekend. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/markets/rates-bonds/ecbs-vasle-sees-rates-much-closer-3-year-end-2024-04-17/

2024-04-17 21:46

April 18 (Reuters) - A look at the day ahead in Asian markets. Amid a flurry of commentary from global financial leaders at the International Monetary Fund and World Bank Spring meetings in Washington, and with many markets having undergone huge moves in recent weeks, investors are taking a bit of a time out. The relentless bond selling of late reversed on Wednesday and pushed yields lower New Tab, opens new tab, gold flatlined again, oil tumbled 3% for its biggest fall in over two months, and stocks wobbled. Whether it's fatigue (gold), short-covering (bonds), worries about the impact of higher borrowing costs on growth and demand (stocks and oil), or just seeking refuge from the barrage of headlines from Washington, investors are trimming back risk. This is the backdrop to Thursday's market open in Asia, where the calendar includes Japan's tertiary index of industrial activity, unemployment from Australia and Hong Kong, and a speech by Bank of Japan board member Asahi Noguchi. On the equity front, the correction that appears to be developing in some quarters gathered momentum on Wednesday, despite a notable decline in bond yields and the dollar's first daily loss in seven. Japan's Nikkei 225 index is down 3.6% this week, on course for its biggest weekly drop since December 2022. The S&P 500 fell for a fourth day, is on track for its third weekly loss in a row, and is down 5% since its all-time high last month. The MSCI Asia ex-Japan index is down year-to-date. Exchange rates - and by extension trade competitiveness, restrictions, and tariffs - remain under close scrutiny. President Joe Biden on Wednesday called for sharply higher U.S. tariffs on Chinese metal products, duties of up to 25% on certain steel and aluminum products, in a move that will risk angering Beijing. Finance leaders from the United States, Japan and South Korea, meanwhile, agreed to "consult closely" on FX markets in their first trilateral meeting on Wednesday, nodding to concern by Tokyo and Seoul over their currencies' recent sharp declines. The agreement in their first trilateral meeting came as receding expectations of a near-term U.S. interest rate cut pushed the yen to 34-year lows, keeping markets on alert on the chance of yen-buying intervention by Japanese authorities. "We will continue to cooperate to promote sustainable economic growth, financial stability, as well as orderly and well-functioning financial markets," a joint statement read. While Japan may not be actively trying to export its way to prosperity, and the yen's weakness may be justified on relative economic and interest rate fundamentals, seismic terms of trade shifts like this in Asia tend not to go unmatched. Could Asia be sliding towards a 'beggar thy neighbor' wave of competitive FX depreciation? The trilateral U.S.-Japanese-South Korean statement shows officials are acutely aware of the risks. Here are key developments that could provide more direction to markets on Thursday: - IMF/World Bank meetings in Washington - Australia unemployment (March) - BOJ's Noguchi speaks Get a look at the day ahead in Asian and global markets with the Morning Bid Asia newsletter. Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-pix-2024-04-17/

2024-04-17 21:44

RIO DE JANEIRO, April 17 (Reuters) - The board of directors of Brazilian state-run oil company Petrobras (PETR4.SA) New Tab, opens new tab is scheduled to meet on Friday, but a much-awaited discussion on extra dividends will not be on the agenda, four sources familiar with the matter told Reuters. Market participants have been eagerly awaiting a decision on whether the oil giant will pay out the extraordinary dividends relative to its 2023 results or not, but the final word will likely come next week when shareholders gather for a general assembly, the sources said. Petrobras' board in March voted to set aside 43.9 billion reais ($8.39 billion) to pay out in extra dividends in the future, with Brazil's government - which controls the company and its board - hoping it would be able to reinvest that cash. Recent local media reports, however, indicated that members of President Luiz Inacio Lula da Silva's cabinet managed to reach a deal for at least 50% of that amount to be doled out to shareholders - a move that would also help the government as it tries to balance public accounts. The reports gave a boost to Petrobras shares and markets started to speculate regarding when the decision could come, with many hoping the board of directors itself would resume discussions on the matter this week to sign off on the dividend payout. But they will need to wait a little longer, according to the sources, who said the matter was not included on the agenda of the next board meeting on April 19. "The decision about the dividends will come from the shareholders' meeting (scheduled for April 25), not the board," said one of the sources, who asked not to be named in order to discuss sensitive issues. Petrobras did not immediately respond to a request for comment. ($1 = 5.2333 reais) The Reuters Power Up newsletter provides everything you need to know about the global energy industry. Sign up here. https://www.reuters.com/business/energy/petrobras-board-not-discuss-extra-dividends-friday-meeting-sources-say-2024-04-17/

2024-04-17 21:40

Ukraine says Russia is using riot control gases illegally One soldier died, 500 treated after gas attacks, Kyiv says Moscow has said previous allegations are unconfirmed KYIV/DONETSK REGION, Ukraine, April 17 (Reuters) - The Ukrainian infantryman, call sign "Ray", said he quickly pulled on his gas mask after a Russian drone flying above his trench on the eastern front dropped a tear gas grenade. "It's like pepper spray, it makes your eyes tear up. It's not lethal, but it disturbs and knocks you out. It makes it very difficult to carry out your duties once you've inhaled it," he told Reuters of the attack he said he experienced in January. The Ukrainian military says Russia has ramped up its illegal use of riot control agents on the front to try to clear trenches as it begins to make bigger advances in the east more than two years since its full-scale invasion. Riot control agents such as tear gas are banned on the battlefield by the international Chemical Weapons Convention, which Russia and Ukraine are signatories to. While civilians can usually escape from tear gas used to break up riots or protests in cities, soldiers stuck in trenches without gas masks must either flee under enemy fire or risk suffocating on the gas. Colonel Serhii Pakhomov, acting head of the military's atomic, biological and chemical defence forces, said Kyiv had recorded around 900 uses of riot control agents by Russia in the past six months out of over 1,400 since the Feb. 2022 invasion. Russia mainly used K-51, VOH and RH-VO hand-grenades loaded with CS, CN and other gases, he told Reuters in an interview. Ukraine's military previously alleged that Russian forces also used chloropicrin, which was used as poison gas in World War I. Russia's embassy in The Netherlands, where the Organisation for the Prohibition of Chemical Weapons (OPCW) is based, said on X in January that allegations about Russia's use of grenades with CN gas use unconfirmed data. Russia's defence ministry did not respond to a request for comment for this article. Moscow previously accused Ukrainian forces of using chemical weapons, something Kyiv denies. Reuters has not been able to independently verify the use of banned chemical substances by either side. UKRAINE CONDUCTS GAS MASK DRILLS Five hundred Ukrainian troops have required medical help after exposure to toxic substances on the battlefield and at least one soldier died after suffocating on tear gas, Pakhomov said. "In addition to demoralization, the person loses physical capabilities – he can't see, he can't breathe, everything is irritated," he said. "Yes, it is temporary, but it is the very moment the enemy can use to take over this position or another." The Ukrainian military is distributing gas masks and conducting drills to prepare soldiers to defend their position during such attacks. At one drill near Kharkiv, instructors told Reuters that gas masks help to protect troops from almost all combat poisons but the length of exposure could impact their effectiveness. Russian forces, which have occupied 18% of Ukrainian territory, are advancing slowly but steadily in the east, after months of deadly fighting. Volodymyr, 37, a doctor at a medical stabilization point in the Donetsk region, said gas attacks cases have picked up recently as he was seeing an average of two soldiers a week. They complain about gas attacks of varying characteristics - colorless, blue or green - and with a strong chemical smell. "The symptoms, it looks like irritation ... it's like tear gas or something like that," he said, unable to identify the exact substance. Natalia Khovanets, 53, a head nurse at a Ukrainian army medical unit in a forested part of the mostly-occupied region of Luhansk, told Reuters they had treated soldiers who had been hit with tear gas grenades dropped by a Russian drone. "(The symptoms we saw were) bitterness in the patients' mouths, dizziness... these are mild symptoms. That meant we could manage treating them on our own." An official with the OPCW, which investigates alleged use of chemicals as weapons, told Reuters it had received no request for an investigation or technical assistance related to the alleged use of banned chemicals in the war. "However, the use of riot control agents as weapons by Russian troops was widely debated," at the organization's recent meetings, the official said, speaking on condition of anonymity due to the sensitivity of the issue. The task of documenting each case of alleged toxic chemicals use falls to special groups within the Ukrainian military who collect evidence and contaminated ground samples for field labs before passing them to Ukraine's security services. Pakhomov said that the 1,400 recorded cases is likely a considerable underestimate because heavy artillery fire and fighting often prevents the groups from visiting trenches, making documentation and accountability harder to achieve. The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/europe/ukraine-says-russia-steps-up-illegal-use-tear-gas-clear-trenches-2024-04-17/