LVMH falls 6% as third-quarter revenue falls; European markets are down
LVMH shares slid 6.3% at the open after disappointing third-quarter earnings
Bernard Arnault, chairman and CEO of LVMH Moet Hennessy Louis Vuitton, speaks during a press conference to present LVMH's 2023 annual results on Jan. 25, 2024, in Paris, France.
Gonzalo Fuentes Reuters
share of LVMH The luxury group opened down 6.3% on Wednesday after reporting a 3% drop in third-quarter sales.
LVMH announced on Tuesday that it generated revenue of 19.08 billion euros ($20.8 billion) for the three months ending in September, a 3% decline in organic growth from the same quarter last year.
In an earnings statement, it said “in the third quarter, the slight decline in revenue was mainly from lower growth seen in Japan, mainly due to the stronger yen.”
It added that “in an uncertain economic and geopolitical environment, the group remains confident and will continue to maintain a strategy focused on enhancing the desirability of its brands.”
In addition to Louis Vuitton and Moët Hennessy, LVMH owns brands including Christian Dior, Bulgari, Givenchy and Fendi.
— Holly Elliott with Reuters
ASML stock has been spotted after disappointing sales forecasts
The ASML logo is seen at its headquarters in Velhoven, Netherlands on June 16, 2023.
Piroschka Van De Wouw Reuters
share of ASML Will be closely watched on Wednesday after the Dutch chip firm released financial results a day earlier, issuing disappointing sales forecasts.
ASML, which is based in Velhoven in the Netherlands, said it expects net sales to come in between 30 billion euros and 35 billion euros ($32.7 billion and $38.1 billion) for 2025, in the lower half of the range it previously provided.
Net bookings for the September quarter were 2.6 billion euros ($2.83 billion), the company said – below the LSEG consensus estimate of 5.6 billion euros. Net sales, however, exceeded expectations, coming in at 7.5 billion euros.
Read more: Shares of chip company ASML plunged 16% in an early release after warning of weak China sales
– Ryan Brown
UK inflation fell to 1.7% in September
Shoppers walk along the high street in Rochester, UK on Tuesday, July 16, 2024.
Chris Ratcliffe Bloomberg | Getty Images
Inflation in the UK fell sharply to 1.7% in September, the Office for National Statistics said on Wednesday.
Economists polled by Reuters had expected the headline rate to come in at a higher 1.9% for the month, the first dip in print below the Bank of England's 2% target since April 2021.
Inflation has been hovering around that level for the past four months, and has arrived 2.2% in August.
Read more: UK inflation falls to 1.7%, below Bank of England target for first time in three years
-Jenny Reid
CNBC Pro: Citi Names 'Underappreciated' AI Stock as 'Top Pick' – Gives It a 25% Surge
Citi named a little-known company as its new “Top Pick,” citing an “underappreciated” artificial intelligence story and attractive valuation.
The tech company's stock price is up more than 50% year-to-date, compared to the broader benchmark iShares Expanded Tech-Software Sector ETFWhich is up about 14% this year.
The Wall Street bank also said the firm reported a “strong” set of second-quarter financial results.
CNBC Pro subscribers can read more here.
– Ganesh Rao
Chip stocks were the biggest culprits in the Nasdaq 100's decline on Tuesday
D Nasdaq 100 Tuesday fell 1.37%, and semiconductors were the biggest contributor to the index's slide.
Nasdaq 100 over the last five trading days
CNBC Pro: Aggressive pace won't cut rates — here's how to position, according to strategists
Market watchers say US interest rate cuts are unlikely to move at an aggressive pace.
The Fed kicked off its easing cycle in September with a jumbo 50 basis-point rate cut — but subsequent ones will be even lighter, they said.
They explain why, and say how investors should be positioned.
CNBC Pro subscribers can read more here.
— Wizen Tan
European Market: Here are the opening calls
European markets are expected to open lower on Wednesday.
of the United Kingdom FTSE 100 The index is expected to open 6 points lower at 8,249 in Germany DAX France, down 35 points to 19,482 CAC 59 points down to 7,469 and Italy's position FTSE MIB According to data from IG, down 137 points to 34,246.
UK and Italian inflation data released today.
Correction: This post has been updated to reflect the timing of ASML's earnings release.
– Holly Elliott
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