2024-08-08 20:27

Eli Lilly gains after lifting annual sales forecast Under Armour rallies on better-than-feared Q1 results Indexes: Dow up 1.8%, S&P 500 up 2.3%, Nasdaq up 2.9% NEW YORK, Aug 8 (Reuters) - U.S. stocks jumped on Thursday, with the Nasdaq and S&P 500 each ending more than 2% higher after jobless claims fell more than expected in the latest week, soothing worries the labor market was weakening too quickly. All the major S&P 500 sectors rose, led by gains in technology (.SPLRCT) , opens new tab and communication services (.SPLRCL) , opens new tab. Small-cap stocks also rallied, with the Russell 2000 index (.RUT) , opens new tab climbing 2.4%. Among the S&P 500's biggest gainers, shares of Eli Lilly (LLY.N) , opens new tab jumped 9.5% after the drugmaker raised its annual profit forecast, and sales of its popular weight-loss drug Zepbound crossed $1 billion for the first time in a quarter. Data showed the number of new applications last week for unemployment benefits fell more than expected. "This was the data point for the week, so it took on added importance," said Paul Nolte, senior wealth advisor and market strategist for Murphy & Sylvest in Elmhurst, Illinois. "Our reading on this is the labor market continues to be OK... The recession fears at this point are probably a little overblown." Stocks had sold off sharply after last week's July U.S. jobs report sparked fears of a potential U.S. recession. Traders also cited an unwinding of positions of carry trades, where investors borrow money from economies with low interest rates to fund their bets in high-yielding assets elsewhere. The Dow Jones Industrial Average (.DJI) , opens new tab rose 683.04 points, or 1.76%, to 39,446.49, the S&P 500 (.SPX) , opens new tab gained 119.81 points, or 2.30%, to 5,319.31 and the Nasdaq Composite (.IXIC) , opens new tab added 464.22 points, or 2.87%, to 16,660.02. The Cboe Volatility index (.VIX) , opens new tab, Wall Street's fear gauge, was down on Thursday. "Once volatility gets going, it takes a while for it to calm down," said David Lundgren, chief market strategist and portfolio manager at Little Harbor Advisors in Marblehead, Massachusetts. "The fact that we're up a lot doesn't necessarily mean the lows are in or that we're going straight up from here," he said. "But looking out three months, six months the tendency to experience above-average returns is very high." The second-quarter earnings season is winding down, but investors are watching final results closely after some disappointments earlier in the reporting period. Shares of Under Armour (UAA.N) , opens new tab surged 19.2% after the sports apparel maker posted a surprise first-quarter profit, benefiting from its efforts to cut inventory and promotions. Volume on U.S. exchanges was 11.98 billion shares, compared with the 12.60 billion average for the full session over the last 20 trading days. Advancing issues outnumbered declining ones on the NYSE by a 3.59-to-1 ratio; on Nasdaq, a 2.76-to-1 ratio favored advancers. The S&P 500 posted 7 new 52-week highs and 4 new lows; the Nasdaq Composite recorded 32 new highs and 183 new lows. Sign up here. https://www.reuters.com/markets/us/futures-waver-anxiety-ahead-jobs-data-2024-08-08/

2024-08-08 20:09

HOUSTON, Aug 8 (Reuters) - Occidental Petroleum (OXY.N) , opens new tab on Thursday said it will focus on cutting debt and catching up with promised production goals before an eagerly anticipated expansion of its cash distribution program. The U.S. oil producer posted better-than-expected second quarter results on Wednesday, largely due to strong production in Colorado, lower operating costs and onetime strong midstream earnings, which sent shares up 1.54% in afternoon trading. But the company failed to deliver the expected 170,000 barrels of oil equivalent per day (boepd) from recently acquired assets. Its $12 billion acquisition of producer CrownRock pushed debt levels up, forcing Occidental to put plans to increase its cash distribution program on hold. The strategy has sent share prices to a "much lower (level) than we believe it should be," Chief Executive Vicki Hollub said during a call with analysts to discuss results. But the company is ahead of schedule to repay the debt and expand returns to investors, she said. Occidental now needs to deliver on its promised debt reduction and asset sale goals before it can catch up with capital returns delivered by peers, UBS oil analyst Josh Silverstein said in a note. The company said it plans to cut debt by $3.1 billion by the third quarter, or about 70% of its near-term debt reduction commitment. Production goals from CrownRock assets will take longer than expected due to weather events and other operational downtime that led to a production rate 14,000 barrels short of the target, Occidental's president for U.S. onshore resources Richard Jackson told analysts. Occidental had little visibility on CrownRock's production plans and is now adjusting its plans. The company will focus on cutting costs, rather than expanding production beyond the target, he said. Third-quarter production is expected to increase by about 140,000 boepd to 1.39 million boepd. Sign up here. https://www.reuters.com/markets/commodities/occidental-delays-crownrock-output-goals-turns-debt-reduction-2024-08-08/

2024-08-08 20:01

MEXICO CITY, Aug 8 (Reuters) - Mexico's central bank lowered its benchmark interest rate in a divided vote to 10.75%, the monetary authority said on Thursday, cutting the key borrowing rate from 11.00% but also signaling that it expects prices to rise higher than previously expected. Three members of the bank's board voted to lower the rate by 25 basis points, while two others sought to hold it steady, according to a statement announcing the decision. In its statement, the bank noted it expects inflationary pressures in Latin America's No. 2 economy to allow for further discussion of rate adjustments going forward. Banxico, as the central bank is known, upwardly revised its forecast for year-end headline inflation to 4.4%, from 4.0% previously, while maintaining its expectation for core inflation at 3.9%. The expectation for higher inflation while lowering borrowing costs struck some analysts as incongruous. "It doesn't make sense that they expect higher inflation and cut the interest rate," said Banco Base director Gabriela Siller, adding that the decision could "diminish" the central bank's reputation. The uptick in July's inflation rate, to its highest level in over a year, was seen further complicating the bank's rates decision, as it balances combating inflation with the need to boost economic growth. Consumer price data for last month showed that annual headline inflation rose to 5.57%, surpassing June's rate of 4.98%. Immediately after the rate cut was announced, Mexico's peso pared gains, up 1.3% for the day to trade at 19.0108 pesos per U.S. dollar, after the currency had strengthened to 18.9110 pesos against the greenback moments before the bank's rate decision was released. The peso's slump since May is seen fueling inflation, and earlier this month the currency weakened to a nearly two-year low. In March, Banxico cut rates for the first time since it began its restrictive cycle in mid-2021. At the time, the bank noted that slowing inflation could pave the way for future cuts. The decision by Banxico, as the central bank is known, to cut rates contradicted a Reuters poll from earlier this week, in which a narrow majority of analysts surveyed expected the bank to hold the rate at 11%. Sign up here. https://www.reuters.com/markets/rates-bonds/mexicos-central-bank-cuts-benchmark-interest-rate-1075-divided-vote-2024-08-08/

2024-08-08 19:54

Aug 8 (Reuters) - The United States on Thursday banned imports from five more Chinese companies over alleged human rights abuses involving the Uyghurs, according to a government posting, as part of its effort to eliminate goods made with forced labor from the U.S. supply chain. The companies include Hong Kong-based Rare Earth Magnesium Technology Group Holdings (0601.HK) , opens new tab and its parent, Century Sunshine Group Holdings (0509.HK) , opens new tab, which manufacture magnesium fertilizer and magnesium alloy products. Also included is Zijin Mining Group Co (601899.SS) , opens new tab subsidiary Xinjiang Habahe Ashele Copper Co, which mines nonferrous metals. The targeted companies did not immediately respond to requests for comment. The companies were added to the Uyghur Forced Labor Prevention Act Entity List, which restricts imports tied to what the U.S. government characterizes as an ongoing genocide of minorities in China's western Xinjiang region. The list now includes over 70 entities tied to products including cotton apparel, automotive parts, vinyl flooring and solar panels. The list identifies those who work with the government of the Xinjiang Uyghur Autonomous Region to recruit and transport Uyghurs, Kazakhs, Kyrgyz or members of other persecuted groups out of the region, and those who source material from the region or from people who work with the government of Xinjiang. U.S. officials say Chinese authorities have established labor camps for Uyghurs and other Muslim minority groups in Xinjiang. Beijing denies any abuses. "The so-called 'forced labor in Xinjiang is nothing but an egregious lie propagated by anti-China forces and a tool for US politicians to destabilize Xinjiang and contain China’s development," a spokesperson for the Chinese embassy in Washington said on Thursday in a statement. "China will continue to firmly safeguard the legitimate and lawful rights and interests of Chinese companies." Sign up here. https://www.reuters.com/sustainability/society-equity/us-bans-imports-five-more-chinese-companies-over-uyghurs-2024-08-08/

2024-08-08 19:47

Canadian dollar gains 0.2% against the greenback Price of U.S. oil settles 1.3% higher Bond yields rise across the curve TORONTO, Aug 8 (Reuters) - The Canadian dollar strengthened against its U.S. counterpart on Thursday as financial markets globally continued to heal and ahead of domestic jobs data that could guide expectations for additional Bank of Canada interest rate cuts. The loonie was trading 0.2% higher at 1.3732 to the U.S. dollar, or 72.82 U.S. cents, extending its recovery from a near two-year low of 1.3946 on Monday when equity markets tumbled. The currency has benefited from increased stability in financial markets in recent days, said Amo Sahota, director at Klarity FX in San Francisco. "The reset button has been hit and CAD has appreciated accordingly," Sahota said. Wall Street's main indexes rose as economic data suggested the fear that the labor market was unraveling was overblown, while the price of oil , one of Canada's major exports, settled 1.3% higher at $76.19 a barrel. "Now the market is just resetting its expectations and looking at, one, the jobs report coming up for Canada, and then trying to prepare itself for what happens at the fourth of September meeting from the Bank of Canada," said Sahota. Canada's employment report for July, due on Friday, is expected to show the economy adding 22,500 jobs and the unemployment rate rising to 6.5% from 6.4%. The BoC is expected to cut its benchmark interest rate further at its next policy decision on Sept. 4, swaps market data shows, after lowering it to 4.50% last month. Canadian government bond yields moved higher across the curve, tracking moves in U.S. Treasuries. The 10-year was up 3.1 basis points at 3.181%, adding to its rebound from a 15-month low on Monday at 2.947%. Sign up here. https://www.reuters.com/markets/currencies/canadian-dollar-extends-recovery-ahead-jobs-report-2024-08-08/

2024-08-08 19:37

CAIRO, Aug 8 (Reuters) - The captain of the Delta Blue crude oil tanker reported an attack from two small craft 45 nautical miles south of Yemen's Mokha, with a rocket-propelled grenade exploding near the vessel, the United Kingdom Maritime Trade Operations (UKMTO) agency said on Thursday. Iran-aligned Houthi militants have launched attacks on international shipping near Yemen since November in solidarity with Palestinians in the war between Israel and Hamas. The Liberia-flagged Delta Blue and its crew are safe, and the ship is proceeding to its next port of call, UKMTO said. Athens-based Delta Tankers manages the vessel, according to LSEG data. The company was not immediately available for comment. The two small boats, white and black in colour, each had four people on board who were reported to be wearing what the agency said were white and yellow raincoats. The Houthi attacks have drawn U.S. and British retaliatory strikes and disrupted global trade as ship owners reroute vessels away from the Red Sea and Suez Canal to sail the longer route around the southern tip of Africa. Sign up here. https://www.reuters.com/world/middle-east/vessel-captain-reports-attack-south-yemens-mokha-uk-maritime-agency-says-2024-08-08/