Euro Declines as ECB Cuts Rates Amid Weakening Economy

8 minutes ago

The euro declined against the U.S. dollar on Thursday after the European Central Bank (ECB) cut interest rates for the third time this year as the world's third-largest economy shows signs of weakening.

The ECB cut its benchmark rate to 3.25% from 3.5% on Thursday, following up on a similar cut at its last meeting in September. The euro declined 0.2% against the dollar.

"Inflation is expected to rise in the coming months, before declining to target in the course of next year," the ECB said in a statement.

The reduced rate widens the gap between borrowing costs in the European Union and the U.S., where the benchmark federal funds rate stands between 4.75% and 5%.

-Nisha Gopalan

Elevance Health Stock Plunges on Fall in Medicaid Memberships

1 hr 3 min ago

Elevance Health (ELV) shares cratered Thursday after the insurer posted a lower-than-expected profit and slashed its outlook on falling Medicaid enrollments.

The company reported third-quarter earnings per share (EPS) of $4.36, missing analysts' estimates compiled by Visible Alpha. Revenue was up 5.3% from a year ago to $45.11 billion, which was higher than expected.

Medical membership dropped 3.3% to 45.76 million. Medicaid membership plunged 19% to 8.93 million, which the company blamed on eligibility redeterminations in the government-sponsored health program and other changes in several states.

Elevance said that given its third-quarter results and "the timing mismatch between Medicaid rates and acuity," it now anticipates full-year adjusted EPS of $33, down from its earlier outlook of $37.20. 

Shares of Elevance Health sank over 13% in early trading Thursday, sending them into negative territory for 2024.

-Bill McColl

TSMC Stock Jumps on AI-Fueled Earnings Beat

1 hr 48 min ago

U.S.-listed Taiwan Semiconductor Manufacturing Co. (TSM) shares jumped 9% Thursday morning after the chipmaker posted robust quarterly earnings and projected a buoyant outlook on the back of the artificial intelligence (AI) boom.

The company, which supplies tech heavyweights such as Apple (AAPL) and Nvidia (NVDA), reported a 54% year-over-year rise in third-quarter net income of 325.26 billion New Taiwan dollars ($10.12 billion), up from NT$211 billion. The profit figure beat the NT$300.78 billion consensus estimate of analysts polled by Visible Alpha.

TSMC also reported a 39% jump in revenue to NT$759.69 billion ($23.64 billion) for the quarter and a 57.8% gross margin, above analysts' estimates and the guidance it gave for both in the second quarter.

TSMC’s upbeat earnings, in contrast to Dutch semiconductor equipment manufacturer ASML Holding’s (ASML) downbeat outlook earlier in the week, bolstered investor faith in the AI boom, sending shares of AI chip giants Nvidia (NVDA), Arm Holdings (ARM), and Advanced Micro Devices (AMD) higher.

With Thursday's gains, TSMC shares have doubled this year.

-Nisha Gopalan

Stock Futures Advance as TSMC Fuels Chip Stock Rebound

2 hr 55 min ago

Futures contracts connected to the Dow Jones Industrial Average were up 0.2% in premarket trading on Thursday.

S&P 500 futures advanced 0.5%.

Nasdaq 100 futures were nearly 1% higher, lifted by rising semiconductor stocks.

Article Sources Investopedia requires writers to use primary sources to support their work. These include white papers, government data, original reporting, and interviews with industry experts. We also reference original research from other reputable publishers where appropriate. You can learn more about the standards we follow in producing accurate, unbiased content in our editorial policy.

1. U.S. Census Bureau. "Advance Monthly Sales for Retail and Food Services."

2. U.S. Department of Labor. "Unemployment Insurance Weekly Claims."

3. European Central Bank. “Monetary policy decisions.”

4. Elevance Health. "Elevance Health Reports Third Quarter 2024 Results."

5. Taiwan Semiconductor Manufacturing Company. “TSMC Reports Third Quarter EPS of NT$12.54.”

6. Taiwan Semiconductor Manufacturing Company. “TAIWAN SEMICONDUCTOR MANUFACTURING COMPANY LIMITED AND SUBSIDIARIES.”

7. Taiwan Semiconductor Manufacturing Company. "TSMC Reports Second Quarter EPS of NT$9.56."

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