2024-07-22 21:32
July 22 (Reuters) - NXP Semiconductors (NXPI.O) , opens new tab forecast third-quarter revenue below analysts' estimates on Monday, as it battles sluggish demand from automotive customers and rising geopolitical risks, sending its shares down about 8% in extended trading. The company recorded its worst decline in quarterly revenue in four years in the second quarter and its automotive sales slumped the most in more than three years, according to LSEG data. The Dutch company forecast revenue in the range of $3.15 billion to $3.35 billion, compared to analysts' average estimate of $3.36 billion. Clients in the automotive industry - NXP's biggest segment - have been pulling back on orders on tepid demand as customers await an improved macroeconomic environment and interest rate cuts by global central banks. Revenue in the automotive segment fell 7% to $1.73 billion in the second quarter while total revenue of $3.13 billion was in line with estimates. Chipmakers are also gauging the impact of China's straining trade relations with the U.S. and the European Union. With tightening export restrictions, Chinese companies have been investing heavily in expanding production of older chips, known as legacy chips, Reuters reported earlier in July. Increased competition in the market may hurt NXP's sales to China - the largest contributor to its revenue in 2023, accounting for about 33% of total annual revenue. Automotive declines offset growth in the company's mobile segment. The division recorded a 21% jump in revenue to $345 million, as artificial intelligence-linked upgrades fueled a rebound in demand from the smartphone industry. The company expects adjusted earnings with a midpoint of $3.42 per share for the third quarter, missing estimates of $3.61. NXP has made significant investments to diversify its manufacturing base beyond China, pouring $1.6 billion into a 40% stake in a joint venture with TSMC-backed (2330.TW) , opens new tab Vanguard to produce silicon wafers in Singapore. Sign up here. https://www.reuters.com/technology/nxp-semi-forecasts-third-quarter-revenue-below-estimates-auto-weakness-2024-07-22/
2024-07-22 21:30
July 22 (Reuters) - Nucor Corp (NUE.N) , opens new tab beat estimates for quarterly earnings on Monday as increased volumes in the steel products segment partially offset the lower domestic steel prices. The steel products segment makes steel joists, decks, tubes and fasteners used in construction. However, the steelmaker expects lower prices to continue to weigh on earnings, forecasting a weaker third quarter compared to the second one. On an adjusted basis, Nucor reported a profit of $2.68 per share, beating average analysts' expectations of $2.35 per share, according to LSEG data. Average steel pricing fell due to an oversupply of steel from both domestic production and imports, prompting distributors to refrain from purchasing excess inventory. Last month, the North Carolina-based company flagged a fall in quarterly profits on account of the deteriorating steel prices. Despite a beat in profit and revenue, net sales in the quarter have fallen 15.1% compared to last year, while profit per share is down nearly 54%. Total revenue for the quarter ended June 29 was $8.1 bln, compared with estimates of $7.69 billion. Sign up here. https://www.reuters.com/markets/commodities/steelmaker-nucor-beats-estimates-volumes-partially-offset-weak-pricing-2024-07-22/
2024-07-22 21:00
July 22 (Reuters) - The U.S. Securities & Exchange Commission has told at least two of the eight firms that have applied to launch the first U.S. exchange-traded funds (ETFs) tied to the price of ether that their products can begin trading on Tuesday. The new products from BlackRock (BLK.N) , opens new tab VanEck and six others will begin trading Tuesday morning on three different exchanges. Those exchanges -- Cboe, Nasdaq and NYSE (ICE.N) , opens new tab -- all confirmed they are prepared to launch trading. Sign up here. https://www.reuters.com/technology/us-sec-approves-first-spot-ether-etfs-start-trading-tuesday-2024-07-22/
2024-07-22 20:43
Nvidia jumps on report of new AI chip for China market Mattel soars after Reuters reports buyer interest CrowdStrike slips after Friday's global cyber outage Verizon falls on Q2 revenue miss Indexes rise: Dow 0.32%, S&P 1.08%, Nasdaq 1.58% July 22 (Reuters) - Wall Street's three benchmarks ended higher on Monday as investors returned to megacap growth stocks, helping both the S&P 500 (.SPX) , opens new tab and Nasdaq Composite (.IXIC) , opens new tab recover from their worst weekly performance since April. The Dow Jones Industrial Average (.DJI) , opens new tab was also back in positive territory, breaking a two-session skid since hitting an all-time closing high last Wednesday. Megacaps Alphabet (GOOGL.O) , opens new tab, Meta Platforms (META.O) , opens new tab and Tesla (TSLA.O) , opens new tab all advanced between 2.2% and 5.1% after being major drags on the market last week. Nvidia (NVDA.O) , opens new tab also rose 4.8% after Reuters reported the artificial intelligence chip leader was working on a version of its new flagship AI chips for the China market that would be compliant with current U.S. export controls. The Information Technology index (.SPLRCT) , opens new tab climbed 2%, topping sectoral gainers and snapping a four-day losing streak. "We think this move today probably has more to do with a rebound from the selling that occurred last week than anything else," said Jason Pride, chief of investment strategy & research at Glenmede. Chief among the other factors on traders' minds was a reexamination of the state of the presidential race after U.S. President Joe Biden announced his withdrawal and endorsed Vice President Kamala Harris' candidacy for the November election on Sunday. Biden's exit could prompt investors to unwind trades on bets that a victory for Republican Trump would increase U.S. fiscal and inflationary pressures. But some analysts said markets could benefit from an increased chance of a divided government under the next administration. Online betting site PredictIt showed pricing for a Donald Trump victory slipped 4 cents to 60 cents, while climbing 12 cents for a Harris win to 39 cents. Trump-linked stocks were mixed on Monday, with Trump Media & Technology Group (DJT.O) , opens new tab dropping 0.8%, while software firm Phunware (PHUN.O) , opens new tab gained 4%. Having digested the news of Biden's withdrawal, investors will now be looking for answers to key questions including who will join Harris on the Democratic presidential ticket and to what degree, if any, the vice president will deviate from the platform which Biden was headlining. This element of uncertainty is present alongside traders' angst over quarterly earnings, including from two of the so-called Magnificent Seven companies - Alphabet and Tesla - on deck this week. The results will test whether the recent rally in top-tier high-momentum stocks is tenable and if a move to underperforming sectors will continue. "We're seeing the market begin to price in a little bit a faster set of rate cuts, and that is leading to a bit of a shift in leadership to favor smaller-cap stocks and to deviate from the focus on the largest tech companies," said Glenmede's Pride. "Obviously today looks a little bit different to that, but it's still a trend in the background." The S&P 500 (.SPX) , opens new tab gained 59.41 points, or 1.08%, at 5,564.41 points, while the Nasdaq Composite (.IXIC) , opens new tab climbed 280.63 points, or 1.58%, to 18,007.57. The Dow Jones Industrial Average (.DJI) , opens new tab rose 127.91 points, or 0.32%, to 40,415.44. Cybersecurity firm CrowdStrike (CRWD.O) , opens new tab slumped 13.5%, extending losses after a software update from the company sparked Friday's global tech outage. Delta Air Lines (DAL.N) , opens new tab dropped 3.5% after canceling over 600 flights as it struggled to restore operations after the outage. Verizon Communications (VZ.N) , opens new tab fell 6.1% after a second-quarter revenue miss. Mattel Inc (MAT.O) , opens new tab jumped 15.1% after Reuters reported the toy maker had been approached by buyout firm L Catterton with an acquisition offer. Volume on U.S. exchanges was 10.95 billion shares, compared with the 11.37 billion average for the full session over the last 20 trading days. Sign up here. https://www.reuters.com/markets/us/futures-rise-after-biden-pulls-out-presidential-race-2024-07-22/
2024-07-22 20:43
TSX ends up 0.8% at 22,872.65 Real estate and utilities sectors lead gains Sleep Country Canada jumps on takeover deal Air Canada falls after lower profit forecast July 22 (Reuters) - Canada's main stock index rose on Monday, with the real estate and utilities sectors leading a broad-based rally ahead of an expected interest rate cut this week by the Bank of Canada. The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 182.26 points, or 0.8%, at 22,872.65, moving back in reach of the record closing high it touched last Tuesday at 22,995.39. "Expectations seem to be pretty high for a small interest rate cut this week and so as a result I think investors are feeling a little more encouraged that the economy is capable of holding its own," said Michael Sprung, president at Sprung Investment Management. The BoC is widely expected to cut its benchmark rate by 25 basis points to 4.50% on Wednesday, its second cut in as many months, after recent data showed inflation cooling. "We are still in a very tumultuous period," Sprung said. "I personally don't believe that inflation is entirely beaten yet ... so I think we are going to have mixed signals for the rest of the year and the U.S. is election is part of that." Wall Street also advanced as investors reexamined the state of the presidential race after U.S. President Joe Biden said he would not pursue a second term. The real estate and utilities sectors, which are dominated by high dividend paying stocks that could particularly benefit from lower interest rates, rose nearly 2% and 1.3% respectively. Heavily weighted financials added 0.9%, energy was up 0.8% and technology ended nearly 1% higher. Materials was the only major sector not to notch gains. Shares of Sleep Country Canada Holdings Inc (ZZZ.TO) , opens new tab were a standout, jumping 27.1% after Fairfax Financial (FFH.TO) , opens new tab agreed to buy the retailer. In contrast, Air Canada (AC.TO) , opens new tab shares fell 2.5% after the company cut its full-year core profit forecast. Sign up here. https://www.reuters.com/markets/tsx-futures-rise-after-biden-exits-us-election-race-2024-07-22/
2024-07-22 20:38
MEXICO CITY, July 22 (Reuters) - Mining and transport conglomerate Grupo Mexico (GMEXICOB.MX) , opens new tab reported a 34% increase in second-quarter net profit on Monday, fueled by higher copper prices and mining output. Net profit of $1.122 billion topped the average estimate of analysts polled by LSEG for $952.6 million. Revenue rose 27% to $4.397 billion in the quarter, beating analyst expectations for $4.09 billion. JPMorgan analysts said in a note that the strong prices Grupo Mexico received for its copper more than compensated for softer sales volumes and higher than expected costs. Controlled by billionaire German Larrea, Grupo Mexico is one of the world's largest copper producers, with mines in Peru, the United States, Spain and Mexico, where it also operates major freight railroads. Quarterly copper production totaled 270,747 metric tons, up 4.7% from a year earlier, thanks to more output from Peru and Mexico operations and bringing mining sales up 33% to $3.4 billion. Copper prices rose around 8% over the quarter, according to LSEG data. The miner said it expected to produce 1.08 million tons of the red metal this year. It had previously forecast 1.06 million tons. Grupo Mexico on July 1 restarted work on Tia Maria in southern Peru, a project that was held up for over a decade due to fears of the mine's environmental impact. Peruvian officials predicted that construction could start in 2025 and production by 2027. The mine is expected to eventually produce 120,000 tons of copper annually. 'SIGNIFICANT REVENUES' "Considering current copper prices, we expect to export $17.5 billion and contribute $3.4 billion in taxes and royalties during the first 20 years of (Tia Maria's) operation," Grupo Mexico said in a filing. Grupo Mexico said it was reviewing its planned $1.4 billion investment in the project and would provide an update by the end of 2024. The firm's transport unit saw a 9% increase in sales to $881 million. In a call with analysts, the division's planning chief, Alberto Vergara, said the group's rail network had been affected by "unprecedented numbers of migrants" causing congestion that was raising costs and reducing performance. Dozens of northbound cargo trains belonging to Grupo Mexico subsidiary Ferromex were stopped last September after several migrants hoping to climb aboard were injured and some died. Sign up here. https://www.reuters.com/business/energy/miner-grupo-mexico-posts-q2-net-profit-up-34-2024-07-22/
