Nvidia shares fell 3% pre-market
On November 20, 2024, a sign-in monitor appeared in the Nvidia office in Austin, Texas.
Brandon Bell | Getty Images
NVIDIA Shares fell in U.S. premarket trading on Thursday as the tech giant failed to impress investors with its third-quarter profit.
Shares of Nvidia fell 3.21% at around 5 a.m. ET after the chipmaker reported quarterly results on Wednesday. Both top and bottom line beat.
Revenue was US$35.08 billion, an increase of 94% year-on-year, exceeding LSEG analysts’ forecast of US$33.16 billion. Adjusted earnings per share were 81 cents, also higher than analysts expected.
— Ryan Brown
Zurich Insurance shares rise on new three-year plan announcement
zurich insurance The company announced a new three-year plan and said it expected to achieve its 2023-2025 goals one year ahead of schedule, sending its stock price up 2%.
The Swiss insurer attributed its performance to the execution of its strategy and “better-than-expected market conditions,” announcing the plans at its investor day on Thursday.
New goals include achieving core return on equity of more than 23% and core earnings per share compound annual growth rate of more than 9%.
“The entire organization is under strong momentum to perform well over the next three years and deliver more to shareholders,” CEO Mario Greco told CNBC’s “Squawk Box Europe.”
The stock was up 2.2% as of 10:03 a.m. London time.
— Karen Gilchrist
French manufacturing confidence rising despite Trump tariffs
An employee monitors the perfume bottle production line at the L’Oréal factory in Gaucy, near Saint-Quentin in northern France.
Denis Charlet | AFP | Getty Images
French manufacturers grew more confident about the economic outlook in November, despite uncertainty over the possibility of new tariffs from the European Union under President-elect Donald Trump.
Data released by statistics agency Insee on Thursday showed that the monthly confidence index rose to 97 in November from a low of 93 in October. Still, factory confidence remains below its long-term average of 100.
Meanwhile, broader business confidence, which includes services and wholesale trade data, fell slightly to 96 in November from 97 the previous month.
This is the first reading since the election of Trump, who has vowed to impose 10-20% tariffs on global imports, which could hinder EU exporters.
— Karen Gilchrist
JD Sports shares plunge 13% on profit warning
JD.com sporting goods store seen on London’s famous Oxford Street.
Sopa Images | Light Rocket | Getty Images
British sports retailer shares JD Sports The company warned that its annual profit would fall below the lower end of guidance after a difficult October and sluggish consumer spending, sending it down 13% in opening trading.
The retailer, which sells major brands such as Adidas and Nike in the UK, Europe and the US, said sales in the US were particularly sluggish ahead of the presidential election earlier this month.
Chief executive Régis Schultz said: “After a good start to the period, helped by strong back-to-school sales, we saw an increase in trading volatility in October, particularly during the North America and the UK, reflecting increased promotional activity and milder weather.
“Nonetheless, the trading environment remains volatile and following October’s trading we now expect full-year profits to be at the lower end of our guidance range,” he added.
— Karen Gilchrist
European markets open flat
European stocks opened flat on Thursday as global market sentiment declined.
Pan-European Stoke 600 The stock market edged up 0.02% in opening trading due to divergence among major exchanges and industries. Insurance stocks led the gains, rising 0.69%, while home furnishing stocks fell 0.62%.
British FTSE 100 Germany’s index rose 0.22% to 8,103 points German DAX Index France rose 0.16% to 19,034 CAC Down 0.19% to 7,185 points, Italy FTSE MIB It fell 0.13% to 33,202 points.
— Karen Gilchrist
Bond strategist says UK’s ‘mini-budget’ disaster should serve as warning to US
On November 19, 2024, US President-elect Donald Trump attended the sixth test flight launch ceremony of the SpaceX Starship rocket in Brownsville, Texas, USA.
Brandon Bell | Reuters
Concerns are growing that the United States may soon experience a British version of “mini budget‘Crisis,’ bond strategists warn Donald TrumpReturn to White House raises specter of currency volatility Bond yields soar.
President-elect Trump has promised to launch a series of measures to promote growth, including tax cuts, high tariffsand Plan to deregulate companies.
Former President’s Economic Agenda Concerns intensify Strategists say rising consumer prices could trigger major changes in bond yields and investor behavior.
Read the full story here.
— Sam Meredith
Asian chip stocks plummet as Nvidia’s slowing revenue growth worries investors
Asian semiconductor-related stocks fell on Thursday after Nvidia Profit forecast reported This failed to meet the ardent expectations of some investors.
Although Nvidia’s Third quarter results Despite beating analysts’ expectations and giving a strong forecast for the quarter, its shares fell 2.5% in after-hours trading to $142.20 each.
“No matter how well a company does…if the guidance is below the whisper high end, you may see some selling pressure,” Futurum Group CEO Daniel Newman told CNBC’s “Squawk Box Asia” following the report.
The sentiment has spread to Asia, with stocks linked to Nvidia suppliers and other chip companies mostly falling.
Read the full story here.
— Anne Bao
Adani Group Chairman Gautam Adani charged with fraud in New York, shares plummet
Billionaire chairman of India’s Adani Group shares plunge on Thursday Gautam Adani Indicted in New York federal court for alleged participation in crime Large-scale bribery and fraud.
The 62-year-old billionaire and seven other defendants are accused of paying more than $250 million in bribes to Indian government officials to secure solar contracts that could generate more than $2 billion in profits.
flagship company of india group Adani Enterprises Share price down 23%, company in eye of storm adani green energy down 18.95%. Adani Energy fell 20%.
Adani Power Company down 14.48%, adani portIts shares fell 20%, while the group’s retail arm Adani Wilmar fell 10%.
Read the full story here.
——Li Yingshan
CNBC Pro: HSBC lists 3 “undervalued” Asian stocks to watch in 2025 – one with 63% upside potential
HSBC said Asian markets will look “very different” in 2025 given China’s new policy measures, India’s economic slowdown and Southeast Asian countries’ investment in new infrastructure.
Still, there are several stocks that could “benefit from these changes in Asia as they are best positioned to seize growth opportunities from these opportunities,” the bank’s analysts noted. Our analysts take a bottom-up perspective. I also like this.”
“In focusing on these stocks, we decided to look outside the general hold consensus and our goal is to focus on quality stocks that are relatively undervalued,” they said.
CNBC Pro subscribers can read more here.
— Amala Balakrishna
Deutsche Bank says ‘major correction’ comes after stock markets have been so nervous in the past
Deutsche Bank macro strategist Henry Allen said in a note to clients this week that stocks will always pull back when valuations are as stretched as they are now.
“Turning points may come quickly, and … when valuations are initially stretched, room for further upside may be limited,” Allen noted. “(E)storical examples of high returns have often been accompanied by sizable returns. reversal.”
The bank cited the current high reading as Cyclically Adjusted Price to Earnings Ratio (CAPE) Posted by economist Robert Shiller, who argued that “the S&P 500’s CAPE ratio has been higher than it is today on only two other occasions in the last century.”
In the period before the dot-com bubble of the late 1990s and the global financial crisis of 2008, “because valuations were already so high to begin with, there was little room for further upside, and each time was followed by a major correction.” Lun wrote. “In fact, both times CAPE ratios got to where they are today and then there were major corrections.”
——Scott Schniper
Fed Governor Bowman says inflation progress has ‘stalled’
Federal Reserve Governor Michelle Bowman said on Wednesday that progress toward returning inflation to the central bank’s target has slowed.
“We have not yet achieved our inflation target, and as I have noted before, progress in lowering inflation appears to have stalled,” Bowman said in remarks in West Palm Beach, Florida. “I think the price stability aspect of our mission is more challenging. “There are big risks, especially with the labor market still close to full employment, but it’s also possible that we could see labor market conditions worsen.”
Recent data shows that while the all-items consumer price index edged higher in October and core interest rates have indeed remained stable at around 3.3% since August, the Fed is close to its 2% inflation target.
Inflation concerns led Bowman to vote against a 0.5 percentage point cut in September, although she voted for a 25 percentage point cut earlier this month, which she had preferred in her original move. The policymaker said she carries out her duties and considers the inflation mandate “in an independent manner, relying on facts, analysis, my own experience and judgment.”
“In some cases, this resulted in me deviating from my colleagues’ views,” she said.
— Jeff Cox
European Markets: Here are the opening calls
European markets are expected to open higher on Wednesday.
British FTSE 100 The German stock index is expected to open 4 points higher at 8,106 German DAX Index France rises 46 points to 19,108 CAC Up 23 points to 7,252 points, Italy FTSE MIB It rose 118 points to 33,567, according to IG data.
Proceeds will come from Severn Trent and British Land. The data release includes UK inflation data.
— Holly Elliot
