Market Update
U.S. and European Markets Trimmed Monthly Losses, Fed and BoE Decisions Awaited
Barry Adams
31 Oct, 2023
New York City
Market indexes closed higher on the final day of the month but fell for the third month in a row on interest rate uncertainties and elevated geopolitical tensions in the Middle East.
On the final day of the month, market indexes on Wall Street rebounded from earlier losses as investors booked losses in the month after Treasury yields surged to 16-year highs.
The S&P 500 index and the Nasdaq Composite declined about 3% in October, and both indexes extended losses for the third month in a row.
Investors are focused on the Fed's interest rate decision on Wednesday, and the central bank is expected to hold rates steady for the second time in a row.
Market participants are also hoping that the Fed policymakers may provide more clarity on the future direction of interest rates and hold rates at the final and next meeting in December.
In today's trading, investors reacted to another batch of earnings releases and awaited Apple Inc.'s quarterly results after the close on Thursday.
NAR and Residential Brokerages Conspired to Inflate Commissions
Real estate brokers were in focus after a Missouri jury awarded $1.8 billion in damages against the National Association of Realtors, Keller Williams, and Berkshire Hathaway's HomeServices of America.
The jury found the industry association and residential brokerages guilty of colluding to keep high brokerage commissions.
Immediately after the verdict, Keller Williams and HomeServices said they planned to appeal the decision.
Decades ago, when the commission system was designed, average home prices were below $50,000.
Over the decades, home prices have jumped multi-fold, but commissions have not adjusted to reflect higher home prices, making homes more expensive for buyers.
Zillow Group declined 7%, Redfin Corp. dropped 5.4%, and Compass Inc. plunged 6%.
In a separate case, the Justice Department is seeking damages from the industry association and others for sharing commissions between agents for buyers and sellers.
U.S. indexes and Yields
The S&P 500 index increased 0.5% to 4,187.15, and the Nasdaq Composite advanced 0.4% to 12,831.43.
The yield on 2-year Treasury notes decreased to 5.07%, 10-year Treasury notes inched lower to 4.83%, and 30-year Treasury bonds edged down to 5.0%.
Crude oil decreased $1.02 to $81.28 a barrel, and natural gas prices rose 23 cents to $3.58 a thermal unit.
Gold increased $10.15 to $1,985.17 an ounce following the weakness in 10-year Treasury yields.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 106.63, and the index is set to decline in the month after rising for two months in a row.
U.S. Stock Movers
Caterpillar Inc. declined 5.8% to $226.77 after the industrial equipment maker reported better-than-expected third-quarter results.
Revenue in the third quarter rose to $16.8 billion, and adjusted earnings were $5.52 per share.
However, the company forecasted sales in the current quarter would be "slightly higher" than the same year ago.
JetBlue Airways Corporation plunged 14.6% to $3.59 after the regional airline reported lower-than-expected sales and a wider-than-expected loss in the third quarter.
Revenue in the quarter was $2.35 billion, and the adjusted loss was 39 cents.
Chewy Inc. jumped 4.8% to $19.26 after Morgan Stanley analysts upgraded the stock to "overweight" from "equal weight" and lowered the stock price target to $28 from $31.
Arista Networks Inc. soared 10.5% to $193.75 after the networking gear maker reported better-than-expected quarterly results and lifted its sales outlook for the current quarter on the back of higher enterprise demand.
Simon Property Group Inc. increased 1.4% to $106.80 after the real estate mall developer lifted its annual fund flow estimate and reported better-than-expected quarterly results.
Revenue in the quarter ending in September increased 7.2% to $1.41 billion, and earnings per share rose to $3.20 from $1.65 a year ago.
Pfizer Inc. decreased 0.6% to $30.39 after the drugmaker recorded charges related to its COVID vaccine and COVID antiviral treatment Paxlovid.
The company took a $5.6 billion inventory write-down in the third quarter related to COVID products.
European Bond Yields Eased After Inflation Dropped to 2-year Low
European market indexes rebounded after inflation in the eurozone, France, and the Netherlands declined.
Benchmark indexes in Frankfurt, Paris, and London advanced more than 0.5%, and bond yields decreased after inflation measures eased.
Eurozone Inflation Slowed
The consumer price index in the eurozone eased to 2.9% in October, the lowest since July 2021, Eurostat reported Tuesday.
The core rate of inflation in the currency union, which excludes volatile energy and food prices, also slowed to 4.2%, the lowest since July 2022.
Eurozone Q3 GDP Contracted
The Euro Area economy contracted 0.1% on the quarter in the three months to September, following an upwardly revised 0.2% increase in the second quarter, the statistical agency reported in a separate report.
On an annual basis, the economy barely expanded by 0.1%, the weakest economic growth since the decline in 2021.
French Economy Barely Expanded
The French economy barely expanded 0.1% on the quarter in the third quarter, following an upwardly revised 0.6% increase in the second quarter, the statistical agency INSEE reported Tuesday.
On an annual basis, the economy expanded by 0.7% in the third quarter, slower than the upwardly revised 1.2% growth in the second quarter.
Italian GDP stalled in the third quarter from the previous quarter, following the 0.4% contraction in the second quarter, the Italian statistical agency ISTAT reported Tuesday.
Europe Indexes and Yields
The DAX index increased 0.4% to 14,810.34, the CAC-40 index advanced 0.9% to 6,888.65, and the FTSE 100 index edged lower by 0.05% to 7,321.72.
The yield on 10-yetrar German bonds decreased to 2.78%, French bonds traded lower to 3.39%, the UK gilts edged up to 4.49%, and Italian bonds inched higher to 4.69%.
The euro hovered near a three-month low at $1.066, the British pound at $1.219, and the U.S. dollar at 90.18 Swiss cents.
Brent crude decreased $1.21 to $85.0 a barrel, and the Dutch TTF natural gas edged higher by €2.54 to €48.01 per MWh.
Europe Stock Movers
Anheuser-Busch Inbev SA jumped 3.9% to €52.86 after the company reported higher-than-expected sales growth in the third quarter.
Carlsberg A/S Class B declined 1.3% to €111.90 after the brewery warned of weak consumer sentiment in Europe and Southeast Asia.
BP Plc decreased 4.0% to 505.70 pence after the U.K.-based energy company reported a sharp decline in quarterly profit and smaller-than-expected results from its gas trading operation.
Last week, Exxon Mobil and Chevron also reported a sharp decline in quarterly revenue and profit, reflecting lower crude oil and natural gas prices from a year ago.
BBVA SA declined 1.1% to €7.42 despite the Spanish bank reporting strong third-quarter earnings.
Wartsila Oyj Abp soared 16.2% to €11.32 after the power engineering company reported improved profitability in the third quarter.
Spectris Plc advanced 4% to 3,127.0 pence after the precision instrumentation and control company said 2023 revenue is expected to be near the top end of previous guidance.
Thales SA declined 2.6% to €137.35 after the French defense electronics contractor said new order inflow in the nine-month period ending in September declined 18% from a year ago.
Order intake in the period declined to €12.4 billion from €15.5 billion, a decrease of 20% in nominal terms and 18% on an organic basis from a year ago.
In the nine-month period, sales increased 4.5% to €12.8 billion, and in the third quarter, sales rose 2.4% to €4.1 billion.
The company reiterated full-year 2023 organic sales growth between 5% and 7%, or between €17.9 billion and €18.2 billion.
Elementis plc gained 4.9% to 118.0 pence, despite the chemical company reporting a decline in revenue in the third quarter.
BASF SE increased 4.2% to €43.39 after the German chemical company announced its plan to cut investment and reduce its operating costs.
Siemens Energy AG declined 2.4% to €8.23 after the company said it plans to sell its India-listed Siemens Ltd. to its former parent, Siemens AG.
Uniper SE jumped 7.3% to €4.74 after the German utility company swung to a nine-month profit of €9.8 billion.
Bouygues SA increased 4.4% to €33.16 after the diversified French conglomerate reported strong nine-month results and reiterated its financial year 2023 outlook.
U.S. Movers: Arista Networks, Caterpillar, Chewy, JetBlue, Pfizer, Simon Property Group
Scott Peters
31 Oct, 2023
New York City
Caterpillar Inc. declined 6.4% to $226.71 after the industrial equipment maker reported better-than-expected third-quarter results.
Sales and revenues in the third quarter increased 12% to $16.8 billion from $15 billion, largely driven by price increases and volume growth.
Net income increased to $2.8 billion from $2.0 billion, and diluted earnings per share advanced to $5.45 from $3.87 a year ago.
Sales in the construction industry increased 12% to $7.0 billion, the resource industry advanced 9% to $3.3 billion, the energy and transportation industry jumped 11% to $6.9 billion, and financial services revenue soared 20% to $979 million.
Revenue in the third quarter rose to $16.8 billion, and adjusted earnings were $5.52 per share.
However, the company forecasted sales in the current quarter would be "slightly higher" than the same year ago, and the adjusted operating profit margin in the fourth quarter will be lower than in the third quarter.
The company estimated restructuring expenses of about $700 million for the full year and capital expenditures of about $1.5 billion in the period.
JetBlue Airways Corporation plunged 14.6% to $3.59 after the regional airline reported lower-than-expected sales and a wider-than-expected loss in the third quarter.
Revenue in the quarter declined 8% to $2.35 billion from $2.2.6 billion, and the company swung to a net loss of $153 million from a profit of $57 million, and diluted earnings per share were ($0.46) compared to 18 cents a year ago.
The airline said revenue in the fourth quarter is expected to decline between 6.5% and 10.5% compared to a year ago, and adjusted loss per share is expected to range between 35 cents and 55 cents.
The airline also said revenue growth in the fourth quarter is likely to be driven by international travel demand, and added industry capacity is ahead of demand in the off-peak season.
Chewy Inc. jumped 4.8% to $19.26 after Morgan Stanley analysts upgraded the stock to "overweight" from "equal weight" and lowered the stock price target to $28 from $31.
Arista Networks Inc. soared 14.5% to $201.15 after the networking gear maker reported better-than-expected quarterly results and lifted its sales outlook for the current quarter on the back of higher enterprise demand.
Revenue in the third quarter increased 28.3% to $1.5 billion, net income soared to $545.3 million from $354.0 million, and diluted earnings per share advanced to $1.72 from $1.13 a year ago.
The networking equipment maker forecasted fourth-quarter revenue between $1.50 billion and $1.55 billion, a non-GAAP gross margin of 63%, and a non-GAAP operating margin of 42%.
Simon Property Group Inc. increased 1.4% to $106.80 after the real estate mall developer lifted its annual fund flow estimate and reported better-than-expected quarterly results.
Revenue in the quarter ending in September increased 7.2% to $1.41 billion from $1.35 billion, net income rose to $594 million from $539 million, and diluted earnings per share advanced to $1.82 from $1.65 a year ago.
Funds from operations were $1.201 billion, or $3.20 per diluted share, including the gain from SPARC stake sales, as compared to $1.099 billion, or $2.93 per diluted share, in the prior year.
The company lowered its stake in the SPARC joint venture to 33% from 50% and booked non-cash after-tax gains of $118.1 million.
The company increased quarterly dividends per share by 10 cents, or 5.6%, to $1.90 payable on December 29 to shareholders on record on December 15.
The company estimated full-year 2023 net income in the range of $6.67 and $6.77 per diluted share and funds from operations to be within a range of $12.15 to $12.25 per diluted share, an increase from the previous range of $11.85 and $11.95.
Pfizer Inc. decreased 0.6% to $30.39 after the drugmaker recorded charges related to its COVID vaccine and COVID antiviral treatment Paxlovid.
The company took a $5.6 billion inventory write-down in the third quarter related to COVID products.
Revenue in the third quarter plunged 42% to $13.2 billion from $22.6 billion, and the company swung to a net loss of $2.4 billion from a profit of $8.6 billion, and diluted earnings per share declined to ($0.42) from $1.54 a year ago.
The pharmaceutical company guided full-year 2023 revenue to decline between 39% and 42% from a year ago, primarily because of the lower demand for COVID products.
S&P 500, Nasdaq Extend Losses to Third Month with 3% Decline
Barry Adams
31 Oct, 2023
New York City
On the final day of the month, market indexes on Wall Street edged slightly lower as investors booked losses in the month after Treasury yields surged to 16-year highs.
The S&P 500 index and the Nasdaq Composite are set to decline about 3% in October, and both indexes extended losses for the third month in a row.
Investors are focused on the Fed's interest rate decision on Wednesday, and the central bank is expected to hold rates steady for the second time in a row.
Market participants are also hoping that the Fed policymakers may provide more clarity on the future direction of interest rates and hold rates at the final and next meeting in December.
In Tuesday's trading, investors reacted to earnings releases and awaited Apple Inc.'s quarterly results after the close on Thursday.
U.S. indexes and Yields
The S&P 500 index increased 0.7% to 4,148.90, and the Nasdaq Composite advanced 0.6% to 12,722.30.
The yield on 2-year Treasury notes decreased to 5.07%, 10-year Treasury notes inched lower to 4.83%, and 30-year Treasury bonds edged down to 5.0%.
Crude oil decreased $0.25 to $82.59 a barrel, and natural gas prices rose 11 cents to $3.47 a thermal unit.
Gold increased $2.02 to $1,997.50 an ounce following the weakness in 10-year Treasury yields.
The dollar index, which weighs the U.S. dollar against a basket of foreign currencies, edged higher to 106.48, and the index is set to decline in the month after rising for two months in a row.
U.S. Stock Movers
Caterpillar Inc. declined 5.8% to $226.77 after the industrial equipment maker reported better-than-expected third-quarter results.
Revenue in the third quarter rose to $16.8 billion, and adjusted earnings were $5.52 per share.
However, the company forecasted sales in the current quarter would be "slightly higher" than the same year ago.
JetBlue Airways Corporation plunged 14.6% to $3.59 after the regional airline reported lower-than-expected sales and a wider-than-expected loss in the third quarter.
Revenue in the quarter was $2.35 billion, and the adjusted loss was 39 cents.
Chewy Inc. jumped 4.8% to $19.26 after Morgan Stanley analysts upgraded the stock to "overweight" from "equal weight" and lowered the stock price target to $28 from $31.
Arista Networks Inc. soared 10.5% to $193.75 after the networking gear maker reported better-than-expected quarterly results and lifted its sales outlook for the current quarter on the back of higher enterprise demand.
Simon Property Group Inc. increased 1.4% to $106.80 after the real estate mall developer lifted its annual fund flow estimate and reported better-than-expected quarterly results.
Revenue in the quarter ending in September increased 7.2% to $1.41 billion, and earnings per share rose to $3.20 from $1.65 a year ago.
Pfizer Inc. decreased 0.6% to $30.39 after the drugmaker recorded charges related to its COVID vaccine and COVID antiviral treatment Paxlovid.
The company took a $5.6 billion inventory write-down in the third quarter related to COVID products.
Europe Movers: Anheuser-Busch, BASF, BBVA, BP, Bouygues, Carlsberg, Elementis, Siemens Energy, Spectris, Thales, Uniper, Wartsila
Inga Muller
31 Oct, 2023
Frankfurt
Market indexes in the eurozone advanced after inflation in the currency union declined to a two-year low and GDP contracted in the third quarter.
The DAX index increased 0.6% to 14,805.80, the CAC-40 index advanced 0.9% to 6,888.56, and the FTSE 100 index edged higher by 0.5% to 7,363.12.
The yield on 10-yetrar German bonds decreased to 2.78%, French bonds traded lower to 3.39%, the UK gilts edged up to 4.49%, and Italian bonds inched higher to 4.69%.
Anheuser-Busch Inbev SA jumped 3.9% to €52.86 after the company reported higher-than-expected sales growth in the third quarter.
Carlsberg A/S Class B declined 1.3% to €111.90 after the brewery warned of weak consumer sentiment in Europe and Southeast Asia.
BP Plc decreased 4.0% to 505.70 pence after the U.K.-based energy company reported a sharp decline in quarterly profit and smaller-than-expected results from its gas trading operation.
Last week, Exxon Mobil and Chevron also reported a sharp decline in quarterly revenue and profit, reflecting lower crude oil and natural gas prices from a year ago.
BBVA SA declined 1.1% to €7.42 despite the Spanish bank reporting strong third-quarter earnings.
Wartsila Oyj Abp soared 16.2% to €11.32 after the power engineering company reported improved profitability in the third quarter.
Spectris Plc advanced 4% to 3,127.0 pence after the precision instrumentation and control company said 2023 revenue is expected to be near the top end of previous guidance.
Thales SA declined 2.6% to €137.35 after the French defense electronics contractor said new order inflow in the nine-month period ending in September declined 18% from a year ago.
Order intake in the period declined to €12.4 billion from €15.5 billion, a decrease of 20% in nominal terms and 18% on an organic basis from a year ago.
In the nine-month period, sales increased 4.5% to €12.8 billion, and in the third quarter, sales rose 2.4% to €4.1 billion.
The company reiterated full-year 2023 organic sales growth between 5% and 7%, or between €17.9 billion and €18.2 billion.
Elementis plc gained 4.9% to 118.0 pence, despite the chemical company reporting a decline in revenue in the third quarter.
BASF SE increased 4.2% to €43.39 after the German chemical company announced its plan to cut investment and reduce its operating costs.
Siemens Energy AG declined 2.4% to €8.23 after the company said it plans to sell its India-listed Siemens Ltd. to its former parent, Siemens AG.
Uniper SE jumped 7.3% to €4.74 after the German utility company swung to a nine-month profit of €9.8 billion.
Bouygues SA increased 4.4% to €33.16 after the diversified French conglomerate reported strong nine-month results and reiterated its financial year 2023 outlook.
Eurozone Inflation Slowed and GDP Contracted In the Third Quarter
Bridgette Randall
31 Oct, 2023
Frankfurt
European market indexes rebounded after inflation in the eurozone, France, and the Netherlands declined.
Benchmark indexes in Frankfurt, Paris, and London advanced more than 0.5%, and bond yields decreased after inflation measures eased.
Eurozone Inflation Slowed
The consumer price index in the eurozone eased to 2.9% in October, the lowest since July 2021, Eurostat reported Tuesday.
The core rate of inflation in the currency union, which excludes volatile energy and food prices, also slowed to 4.2%, the lowest since July 2022.
Eurozone Q3 GDP Contracted
The Euro Area economy contracted 0.1% on the quarter in the three months to September, following an upwardly revised 0.2% increase in the second quarter, the statistical agency reported in a separate report.
On an annual basis, the economy barely expanded by 0.1%, the weakest economic growth since the decline in 2021.
French Economy Barely Expanded
The French economy barely expanded 0.1% on the quarter in the third quarter, following an upwardly revised 0.6% increase in the second quarter, the statistical agency INSEE reported Tuesday.
On an annual basis, the economy expanded by 0.7% in the third quarter, slower than the upwardly revised 1.2% growth in the second quarter.
Italian GDP stalled in the third quarter from the previous quarter, following the 0.4% contraction in the second quarter, the Italian statistical agency ISTAT reported Tuesday.
Europe Indexes and Yields
The DAX index increased 0.6% to 14,805.80, the CAC-40 index advanced 0.9% to 6,888.56, and the FTSE 100 index edged higher by 0.5% to 7,363.12.
The yield on 10-yetrar German bonds decreased to 2.78%, French bonds traded lower to 3.39%, the UK gilts edged up to 4.49%, and Italian bonds inched higher to 4.69%.
The euro hovered near a three-month low at $1.066, the British pound at $1.219, and the U.S. dollar at 90.18 Swiss cents.
Brent crude decreased $0.68 to $87.02 a barrel, and the Dutch TTF natural gas edged higher by €0.35 to €50.17 per MWh.
Europe Stock Movers
Anheuser-Busch Inbev SA jumped 3.9% to €52.86 after the company reported higher-than-expected sales growth in the third quarter.
Carlsberg A/S Class B declined 1.3% to €111.90 after the brewery warned of weak consumer sentiment in Europe and Southeast Asia.
BP Plc decreased 4.0% to 505.70 pence after the U.K.-based energy company reported a sharp decline in quarterly profit and smaller-than-expected results from its gas trading operation.
Last week, Exxon Mobil and Chevron also reported a sharp decline in quarterly revenue and profit, reflecting lower crude oil and natural gas prices from a year ago.
BBVA SA declined 1.1% to €7.42 despite the Spanish bank reporting strong third-quarter earnings.
Wartsila Oyj Abp soared 16.2% to €11.32 after the power engineering company reported improved profitability in the third quarter.
Spectris Plc advanced 4% to 3,127.0 pence after the precision instrumentation and control company said 2023 revenue is expected to be near the top end of previous guidance.
Thales SA declined 2.6% to €137.35 after the French defense electronics contractor said new order inflow in the nine-month period ending in September declined 18% from a year ago.
Order intake in the period declined to €12.4 billion from €15.5 billion, a decrease of 20% in nominal terms and 18% on an organic basis from a year ago.
In the nine-month period, sales increased 4.5% to €12.8 billion, and in the third quarter, sales rose 2.4% to €4.1 billion.
The company reiterated full-year 2023 organic sales growth between 5% and 7%, or between €17.9 billion and €18.2 billion.
Elementis plc gained 4.9% to 118.0 pence, despite the chemical company reporting a decline in revenue in the third quarter.
BASF SE increased 4.2% to €43.39 after the German chemical company announced its plan to cut investment and reduce its operating costs.
Siemens Energy AG declined 2.4% to €8.23 after the company said it plans to sell its India-listed Siemens Ltd. to its former parent, Siemens AG.
Uniper SE jumped 7.3% to €4.74 after the German utility company swung to a nine-month profit of €9.8 billion.
Bouygues SA increased 4.4% to €33.16 after the diversified French conglomerate reported strong nine-month results and reiterated its financial year 2023 outlook.
S&P 500 and Nasdaq Rally 1% After a Week of Volatile Trading
Barry Adams
30 Oct, 2023
New York City
Stocks on Wall Street advanced, and investors searched for bargains after two popular indexes dipped into correction territory amid ongoing interest rate uncertainties.
Wall Street indexes extended gains for the day, and investors looked ahead to another batch of quarterly earnings and rate decisions from the Federal Reserve, the Bank of England, and the Bank of Japan.
Market indexes rebounded after volatile trading in the previous week on ongoing rate anxieties and worries about the rise of long-term interest rates and their negative impact on the U.S. economy.
Investors are hoping that the Federal Reserve will leave the fed funds rates unchanged at the end of its two-day meeting on November 1 and provide insights into the economy.
Investors are also looking forward to reviewing the Fed's estimate of economic growth in 2023, inflation outlook, and jobless rate estimate.
Many investors are hoping that the Fed will hold rates after the December meeting as well, paving the way for investors to focus on corporate earnings and other economic metrics.
Interest rate uncertainties rose after the third quarter. GDP growth accelerated to 4.9%, powered by strong growth in consumer spending.
Consumer spending has been resilient despite multiple rate hikes over the last eighteen months because wages adjusted for inflation are still rising and strong labor market conditions are also bolstering consumer confidence.
Last week, the S&P 500 index fell to correction territory and the Nasdaq Composite sank deeper into correction, largely because of rate uncertainties.
On the earnings front, companies are reporting a sustained rise in sales, driven in part by price hikes passed on to consumers.
Amazon, Microsoft, Meta Platforms, and Intel advanced after earnings met or exceeded investors' expectations, but Google-parent Alphabet plunged after the company reported slower-than-expected growth in its cloud unit.
Investors are looking ahead to quarterly results from Apple on Thursday after the close of regular trading sessions, and the stock has declined 15% from its 52-week high.
U.S. indexes and Yields
The S&P 500 index increased 0.7% to 4,148.90, and the Nasdaq Composite advanced 0.6% to 12,722.30.
The yield on 2-year Treasury notes decreased to 5.06%, 10-year Treasury notes inched lower to 4.90%, and 30-year Treasury bonds edged down to 5.06%.
Crude oil decreased $2.85 to $82.71 a barrel, and natural gas prices fell 14 cents to $3.34 a thermal unit.
Gold declined 0.4% to $1,997.20 an ounce following the slight weakness in the 10-year Treasury yields.
The dollar index edged higher to 106.28, the level last seen in November 2022, as the prospect of a widening war in the Middle East rose amid negative comments over the last five days from leaders in Lebanon, Egypt, Iran, Syria, the UAE, Saudi Arabia, and Qatar.
U.S. Stock Movers
McDonald's Corp. gained 2.2% to $261.24 after the fast-food company reported third-quarter earnings ahead of market expectations.
Revenue in the quarter increased 4% to $5.9 billion from $5.7 billion, net income soared 63% to $1.8 billion from $1.1 billion, and diluted earnings per share jumped to $2.45 from $1.68 a year ago.
The fast food chain reported strong business metrics in the quarter.
Global comparable sales in the quarter increased 12.6%, reflecting strong comparable sales of 12.6% in each market segment; systemwide sales increased 9%; and consolidated operating income rose 10% from a year ago.
U.S. comparable sales jumped to 12.6% from 3.5% in the period a year ago after the company passed on higher prices to customers.
European Markets Rebounded
European markets advanced after a volatile week of downward trading, and investors awaited economic data releases and another batch of corporate earnings this week.
European market indexes rebounded after investors shifted their focus to quarterly results and awaited rate decisions from the Bank of England, the U.S. Federal Reserve, and the Bank of Japan.
Investors remained focused on the latest earnings results and overlooked growing worries about a wider war in the Middle East and a slower-than-expected economic rebound in China.
The DAX index jumped more than 0.5% after the German economy contracted less than expected in the third quarter.
German Economy Contacted In Third Quarter
The German economy contracted by 0.1% in the third quarter, following the upwardly revised 0.1% in the second quarter, the Federal Statistics Office, or Destatis, reported Monday.
Consumer spending fell sharply as consumers battled elevated inflation and rising interest rates, but investment in equipment rose, limiting the contraction in the economy.
The seasonally adjusted GDP shrank by 0.3% from a year ago in the third quarter, after remaining unchanged in the second quarter.
The largest economy in the Euro Area has been struggling under the weight of high energy prices and rising interest rates, and the economy has stagnated for three quarters in a row.
Swedish Economic Growth Stalled
In other economic news, the Swedish economy stalled in the third quarter, following a 0.8% contraction in the second quarter, Statistics Sweden reported Monday.
According to the preliminary estimate, the Swedish economy shrank 1.2% from a year ago.
UK Mortgage Approvals Declined In September
Net mortgage approvals in September declined to 43,328 from the revised 45,447 in August, the Bank of England reported Monday.
The mortgage approvals act as an indicator for future borrowing, and the approvals dropped to the lowest level since January.
The UK's' housing market activities have been depressed after home prices surged in the last three years and mortgage rates rose following the aggressive rate hikes by the Bank of England.
Europe Indexes and Yields
The DAX index increased 0.2% to 14,716.54, the CAC-40 index advanced 0.4% to 6,825.09, and the FTSE 100 index edged higher by 0.5% to 7,327.39.
The yield on 10-yetrar German bonds decreased to 2.80%, French bonds traded lower to 3.42%, the UK gilts edged up to 4.55%, and Italian bonds inched higher to 4.73%.
The euro hovered near a three-month low at $1.058, the British pound at $1.212, and the U.S. dollar at 90.28 Swiss cents.
Brent crude decreased $2.58 to $87.98 a barrel, and the Dutch TTF natural gas edged lower by €0.90 to €49.63 per MWh.
Europe Stock Movers
Clariant AG rose 3.3% to CHF 12.79 after the company said it plans to acquire Lucas Meyer Cosmetics from International Flavors and Fragrances for $810 million.
Ascential jumped 27% to 273.60 pence after the UK-based information and analytics firm said it plans to sell its digital commerce and consumer research unit for an enterprise value of £1.4 billion.
Glencore Plc rose 1.1% to 450 pence despite the mining company lowering its 2023 nickel production estimate.
Frasers Group edged up 1.1% to 805 pence after the company announced the sale of the Missguided brand and intellectual property rights associated with the brand.
ArcelorMittal SA decreased 4.6% to €20.09 after a fire killed 32 people at a mine in Kazakhstan controlled by the company.
Reckitt Benckiser Group Plc advanced 1.6% to 5,540 pence, and the consumer products maker launched the first tranche of its stock repurchase program.
Bargain Hunting Lifts Wall Street Indexes
Barry Adams
30 Oct, 2023
New York City
Wall Street indexes advanced, and investors looked ahead to another batch of quarterly earnings and rate decisions from the Federal Reserve, the Bank of England, and the Bank of Japan.
Market indexes rebounded after volatile trading in the previous week on ongoing rate anxieties and worries about the rise of long-term interest rates and their negative impact on the U.S. economy.
Investors are hoping that the Federal Reserve will leave the fed funds rates unchanged at the end of its two-day meeting on November 1 and provide insights into the economy.
Investors are also looking forward to reviewing the Fed's estimate of economic growth in 2023, inflation outlook, and jobless rate estimate.
Interest rate uncertainties rose after the third quarter. GDP growth accelerated to 4.9%, powered by strong consumer spending growth, indicating resilient consumers despite multiple rate hikes over the last eighteen months.
Last week, the S&P 500 index fell to correction territory and the Nasdaq Composite sank deeper into correction, largely because of rate uncertainties.
On the earnings front, companies are reporting a sustained rise in sales, driven in part by price hikes passed on to consumers.
Amazon, Microsoft, Meta Platforms, and Intel advanced after earnings met or exceeded investors' expectations, but Google-parent Alphabet plunged after the company reported slower-than-expected growth in its cloud unit.
Investors are looking ahead to quarterly results from Apple on Thursday after the close of regular trading sessions, and the stock has declined 15% from its 52-week high.
U.S. indexes and Yields
The S&P 500 index increased 0.2% to 4,145.06, and the Nasdaq Composite advanced 0.8% to 12,714.50.
The yield on 2-year Treasury notes decreased to 5.06%, 10-year Treasury notes inched lower to 4.90%, and 30-year Treasury bonds edged down to 5.06%.
Crude oil decreased $1.15 to $84.14 a barrel, and natural gas prices fell 14 cents to $3.34 a thermal unit.
The dollar index edged higher to 106.28, the level last seen in November 2022, as the prospect of a widening war in the Middle East rose amid negative comments over the last five days from leaders in Lebanon, Egypt, Iran, Syria, the UAE, Saudi Arabia, and Qatar.
U.S. Stock Movers
McDonald's Corp. gained 2.2% to $261.24 after the fast-food company reported third-quarter earnings ahead of market expectations.
Revenue in the quarter increased 4% to $5.9 billion from $5.7 billion, net income soared 63% to $1.8 billion from $1.1 billion, and diluted earnings per share jumped to $2.45 from $1.68 a year ago.
The fast food chain reported strong business metrics in the quarter.
Global comparable sales in the quarter increased 12.6%, reflecting strong comparable sales of 12.6% in each market segment; systemwide sales increased 9%; and consolidated operating income rose 10% from a year ago.
U.S. comparable sales jumped to 12.6% from 3.5% in the period a year ago after the company passed on higher prices to customers.
Europe Movers: Arcelor Mittal, Ascential, Clariant, Frasers Group, Glencore, Reckitt Benckiser
Inga Muller
30 Oct, 2023
Frankfurt
European market indexes rebounded on Monday as investors prepared for a busy week of earnings and rate decisions from the central banks in the U.S., the U.K., and Japan.
The DAX index increased 0.6% to 14,775.64, the CAC-40 index advanced 0.7% to 6,840.90, and the FTSE 100 index edged higher by 0.8% to 7,350.11.
The yield on 10-yetrar German bonds decreased to 2.80%, French bonds traded lower to 3.42%, the UK gilts edged up to 4.55%, and Italian bonds inched higher to 4.73%.
Clariant AG rose 3.3% to CHF 12.79 after the company said it plans to acquire Lucas Meyer Cosmetics from International Flavors and Fragrances for $810 million.
Ascential jumped 27% to 273.60 pence after the UK-based information and analytics firm said it plans to sell its digital commerce and consumer research unit for an enterprise value of £1.4 billion.
Glencore Plc rose 1.1% to 450 pence despite the mining company lowering its 2023 nickel production estimate.
Frasers Group edged up 1.1% to 805 pence after the company announced the sale of the Missguided brand and intellectual property rights associated with the brand.
ArcelorMittal SA decreased 4.6% to €20.09 after a fire killed 32 people at a mine in Kazakhstan controlled by the company.
Reckitt Benckiser Group Plc advanced 1.6% to 5,540 pence, and the consumer products maker launched the first tranche of its stock repurchase program.
European Markets Rebounded, German and Swedish Economy Struggled In Third Quarter
Bridgette Randall
30 Oct, 2023
Frankfurt
European markets advanced after a volatile week of downward trading, and investors awaited economic data releases and another batch of corporate earnings this week.
European market indexes rebounded after investors shifted their focus to quarterly results and awaited rate decisions from the Bank of England, the U.S. Federal Reserve, and the Bank of Japan.
Investors remained focused on the latest earnings results and overlooked growing worries about a wider war in the Middle East and a slower-than-expected economic rebound in China.
The DAX index jumped more than 0.5% after the German economy contracted less than expected in the third quarter.
German Economy Contacted In Third Quarter
The German economy contracted by 0.1% in the third quarter, following the upwardly revised 0.1% in the second quarter, the Federal Statistics Office, or Destatis, reported Monday.
Consumer spending fell sharply as consumers battled elevated inflation and rising interest rates, but investment in equipment rose, limiting the contraction in the economy.
The seasonally adjusted GDP shrank by 0.3% from a year ago in the third quarter, after remaining unchanged in the second quarter.
The largest economy in the Euro Area has been struggling under the weight of high energy prices and rising interest rates, and the economy has stagnated for three quarters in a row.
Swedish Economic Growth Stalled
In other economic news, the Swedish economy stalled in the third quarter, following a 0.8% contraction in the second quarter, Statistics Sweden reported Monday.
According to the preliminary estimate, the Swedish economy shrank 1.2% from a year ago.
UK Mortgage Approvals Declined In September
Net mortgage approvals in September declined to 43,328 from the revised 45,447 in August, the Bank of England reported Monday.
The mortgage approvals act as an indicator for future borrowing, and the approvals dropped to the lowest level since January.
The UK's' housing market activities have been depressed after home prices surged in the last three years and mortgage rates rose following the aggressive rate hikes by the Bank of England.
Europe Indexes and Yields
The DAX index increased 0.6% to 14,775.64, the CAC-40 index advanced 0.7% to 6,840.90, and the FTSE 100 index edged higher by 0.8% to 7,350.11.
The yield on 10-yetrar German bonds decreased to 2.80%, French bonds traded lower to 3.42%, the UK gilts edged up to 4.55%, and Italian bonds inched higher to 4.73%.
The euro hovered near a three-month low at $1.058, the British pound at $1.212, and the U.S. dollar at 90.28 Swiss cents.
Brent crude decreased $0.88 to $89.58 a barrel, and the Dutch TTF natural gas edged higher by €2.17 to €52.70 per MWh.
Europe Stock Movers
Clariant AG rose 3.3% to CHF 12.79 after the company said it plans to acquire Lucas Meyer Cosmetics from International Flavors and Fragrances for $810 million.
Ascential jumped 27% to 273.60 pence after the UK-based information and analytics firm said it plans to sell its digital commerce and consumer research unit for an enterprise value of £1.4 billion.
Glencore Plc rose 1.1% to 450 pence despite the mining company lowering its 2023 nickel production estimate.
Frasers Group edged up 1.1% to 805 pence after the company announced the sale of the Missguided brand and intellectual property rights associated with the brand.
ArcelorMittal SA decreased 4.6% to €20.09 after a fire killed 32 people at a mine in Kazakhstan controlled by the company.
Reckitt Benckiser Group Plc advanced 1.6% to 5,540 pence, and the consumer products maker launched the first tranche of its stock repurchase program.