Market Update
U.S. Movers: Amazon, Auto Nation, Chipotle, Chevron, CBRE, Exxon Mobil, Hertz Global, Intel
Scott Peters
27 Oct, 2023
New York City
Amazon.com, Inc. soared 8.2% to $129.35 after the e-commerce giant reported stronger-than-expected quarterly results.
Revenue in the third quarter rose 13% to $143.1 billion, net income more than tripled to $9.9 billion from $2.9 billion, and diluted earnings per share surged to 94 cents from 28 cents.
The rebound in sales was partly driven by a 7% jump in Amazon's core online retail business in the quarter, following the 4% rise in the second quarter.
Amazon's cost-cutting program is showing early results; operating margin increased to 7.8%, the highest since early 2021.
AutoNation Inc. edged up a fraction to $130.54 after the auto dealer network operator reported mixed quarterly results.
Revenue in the third quarter increased 3% to $6.8 billion from $6.6 billion, net income plunged 31% to $243.7 million from $352.6 million, and diluted earnings per share declined 12% to $5.54 from $6.31.
New vehicle sales increased 11% to $3.2 billion, used vehicle sales declined 10% to $2.2 billion, and after-sales service revenue jumped 12% to $1.2 billion.
Customer financial services revenue edged up 2% to $370 million.
New vehicle days supply, the industry measure of selling days, increased to 31 days from 19 days, and used vehicle days supply rose to 33 days from 31 days.
Intel Corporation jumped 9.4% to $35.57 after the advanced semiconductor maker reported better-than-expected quarterly results, and the company also forecasted strong results in the current quarter.
Revenue in the third quarter declined 8% to $1.533 billion, marking the eighth quarterly decline in a row.
Net income in the period dropped to $297 million from $1.02 billion, and diluted earnings per share fell to 7 cents from 25 cents a year ago.
The board of directors declared a quarterly dividend of $0.125 per share payable on December 1 to shareholders of record as of November 7.
For the fourth quarter, Intel forecast revenue between $14.6 billion and $15.6 billion and diluted earnings per share of 23 cents, based on a gross margin of 43.3%.
Chipotle Mexican Grill, Inc. jumped 7.4% to $1,940.56 after the fast food chain operator reported better-than-expected same-store sales, driven by a price increase and higher customer traffic.
Total revenue in the third quarter increased 11.3% to $2.5 billion from $2.2 billion, net income increased to $313.2 million from $257.1 million, and diluted earnings per share advanced to $11.32 from $9.20 a year ago.
Comparable restaurant sales increased by 5%, and operating margin advanced to 16.0% from 15.1% a year ago.
Food, beverage, and packaging costs in the third quarter were 29.7% of total revenue, a decrease of about 10 basis points compared to the third quarter of 2022.
The benefit from last year's menu price increases was mostly offset by inflation across several food costs, primarily beef and queso.
BJ's Restaurants Inc. jumped 8.6% to $25.61 after the company reported a stable adjusted quarterly loss and said comparable sales are returning to a normal seasonal pattern after weakness in the third quarter.
Revenue in the third quarter increased 2.3% to $318.6 million, and comparable restaurant sales edged up 0.4%.
Restaurant sales are seasonal, and sales in August and September are generally softer than other months, but the company did not experience seasonal weakness last year.
In the first three weeks of October, restaurant sales have returned to their normal pattern, and comparable sales are trending in the "low single digits," an improvement of 500 basis points from September levels.
Net loss expanded to $3.8 million from $1.6 million, and diluted loss per share increased to 16 cents from 7 cents a year ago.
During the third quarter of 2023, BJ’s repurchased and retired approximately 164,000 shares of its common stock at a cost of $4.3 million.
As of October 3, 2023, the company had approximately $17.8 million remaining on its authorized stock repurchase program.
Hertz Global Holdings Inc. declined 4.6% to $8.62 after the vehicle rental company reported quarterly results.
Revenue in the third quarter increased 8% to $2.7 billion from $2.5 billion, net income jumped to $629 million from $577 million, and basic earnings per share increased to $2.02 from $1.62 a year ago.
Vehicle depreciation expense soared to $501 million from $294 million a year ago, after electric vehicle manufacturers lowered prices throughout 2023, resulting lower residual values and increasing depreciation expense and negatively impacting salvage cost.
Average rentable vehicles increased 12% to 562,267; vehicle utilization edged up to 83% from 80%; and transaction days jumped 16% to 43.1 million from 37.1 million.
Total revenue per day declined 7% to $62.46, and total revenue per month per vehicle fell 4% to $1,596 from $1,658 a year ago.
In the quarter, the company repurchased 3 million shares for $50 million.
CBRE Group declined 0.5% to $66.15 after the commercial real estate services and investment company reported a sharp decline in earnings.
Commercial real estate capital markets remain under severe pressure, leading to a sustained slowdown in property sales and debt financing activity.
Revenue in the third quarter increased 4.5% to $7.8 billion from $7.5 billion, net income plunged 57% to $191 million from $447 million, and diluted earnings per share declined to 61 cents from $1.38 a year ago.
CBRE revised its core earnings per share to decrease by mid-30%, compared with a 20% to 25% decline anticipated in the previous quarter.
Global leasing revenue declined 16%, driven by a 21% plunge in the Americas and 11% in Europe, the Middle East, and North Africa, but leasing revenue in the Asia-Pacific region jumped 11%.
Commercial property sales revenue plunged by 38% as buyers and sellers paused amid sharply rising interest rates.
In the Americas, commercial real estate sales revenue plunged 41%, EMEA dropped 47%, and APAC declined 12%.
The company repurchased approximately 6.2 million shares for $516 million, averaging $83.03 per share, during the third quarter of 2023, with approximately $1.5 billion of capacity remaining under the company’s authorized stock repurchase program as of September 30.
Chevron Corporation dropped 6.7% to $144.35 after the integrated energy company reported a sharp decline in quarterly earnings, reflecting weak energy commodities prices.
Revenue in the third quarter declined to $54. billion from $66.6 billion, net income plunged to $6.5 billion from $11 billion, and diluted earnings per share dropped to $3.48 from $5.78 a year ago.
Third-quarter earnings were negatively impacted by lower crude oil prices and weaker margins on refined product sales.
The company's worldwide net oil-equivalent production increased 4%, and U.S. production was up 20%, driven largely by the recent acquisition of PDC Energy.
PDC Energy added 179,000 oil-equivalent per day in the quarter.
In the quarter, the company distributed to shareholders about $6.2 billion, including dividends of $2.9 billion and stock repurchases of $3.4 billion.
Additionally, the company board of directors declared a cash dividend of $1.51 per share, payable on December 11 to shareholders on record on November 17.
The company is on track to complete its recently announced $60 billion acquisition of Hess Corp. by the end of 2024.
Exxon Mobil Corp. decreased 1.9% to $105.55 after the energy giant reported a sharp decline in quarterly earnings.
Revenue in the third quarter decreased to $90.7 billion from $112.1 billion, net income dropped to $9.1 billion from $19.7 billion, and diluted earnings per share fell to $2.25 from $4.68 a year ago.
The company confirmed full-year capital expenditures near the top end of its previously announced range between $23 billion and $25 billion.
The sharp decline in earnings reflected a steep fall in crude oil and natural gas prices from a year ago.
The company declared a fourth-quarter cash dividend of 95 cents per share, an increase of 4 cents, payable on December 11 to shareholders on record on November 15.
The company has increased its annual dividend for 41 consecutive years.
The debt-to-capital ratio remained at 17%, and the net-debt-to-capital ratio was 4%, reflecting a period-end cash balance of $33.0 billion.
In the quarter, the company completed the sale of its assets and refinery in Thailand, generating $0.9 billion in cash proceeds, bringing the year-to-date divestment total to $3.1 billion.
In July, the company agreed to an all-stock transaction to acquire Denbury Inc., the owner and operator of one of the largest carbon dioxide pipeline networks, for $4.9 billion or in exchange for 45 million shares.
The transaction is expected to close in November, after the Denbury shareholder vote on October 31.
Amazon and Intel Results Power Tech Stocks Rebound, Inflation Report Shows Little Progress
Barry Adams
27 Oct, 2023
New York City
Market indexes in Friday's trading lacked direction after investors reviewed another batch of earnings and a report on inflation.
Tech stocks rebounded after Amazon and Intel reported better-than-expected earnings and offered a positive outlook.
Broder market indexes also edged higher, reacting to a flood of earnings released later Thursday and Friday morning.
Market sentiment was dented after the latest alternative inflation measure showed little progress on the inflation front, supporting the Fed's narrative for another rate hike and higher rates through 2024.
The core Personal Consumption Expenditure Price Index, which excludes food and energy prices, increased in September to a four-month high of 0.3% in the month but eased slightly to 3.7% from the year ago, the U.S. Bureau of Economic Analysis reported Friday.
The overall PCE price index edged up 0.4% in the month, matching the rate in the previous month and increasing 3.4% from a year ago.
The watered-down measure of inflation, preferred by the Federal Reserve, is still significantly higher than the Fed's target rate of 2%, despite multiple interest rate hikes over the last eighteen months.
Supply chain-driven inflation in goods prices has eased after the end of pandemic-era disruptions, but demand-driven inflation shows no sign of easing as the Federal Reserve continues to fund the elevated federal government deficit.
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 5.03%, 10-year Treasury notes inched lower to 4.85%, and 30-year Treasury bonds edged down to 5.02%.
Natural gas prices soared more than 8% after the latest weekly report from the U.S. Energy Information Administration showed that U.S. utilities added 74 billion cubic feet of gas into storage in the week ending on October 20, lower than expected.
Moreover, weather reports suggest that the weather on the mainland U.S. is expected to be colder than previously estimated in the next two weeks, increasing demand for gas-fired heating.
But the expectations of record production kept the price surge in check.
The average U.S. natural production averaged 103.9 billion cubic feet in October, and the production is expected to surpass the record of 103.1 billion cubic feet in July.
Crude oil increased $0.95 to $84.16 a barrel, and natural gas prices jumped 8 cents to $3.56 a thermal unit.
The dollar index edged higher to 106.41, the level last seen in November 2022, due to elevated tensions in the Middle East and the ongoing war in Ukraine.
U.S. Stock Movers
Amazon.com, Inc. soared 8.2% to $129.35 after the e-commerce giant reported stronger-than-expected quarterly results.
Revenue in the third quarter rose 13% to $143.1 billion, net income more than tripled to $9.9 billion from $2.9 billion, and diluted earnings per share surged to 94 cents from 28 cents.
The rebound in sales was partly driven by a 7% jump in Amazon's core online retail business in the quarter, following the 4% rise in the second quarter.
Amazon's cost-cutting program is showing early results; operating margin increased to 7.8%, the highest since early 2021.
Intel Corporation jumped 9.4% to $35.57 after the advanced semiconductor maker reported better-than-expected quarterly results, and the company also forecasted strong results in the current quarter.
Revenue in the third quarter declined 8% to $1.533 billion, marking the eighth quarterly decline in a row.
Net income in the period dropped to $297 million from $1.02 billion, and diluted earnings per share fell to 7 cents from 25 cents a year ago.
The board of directors declared a quarterly dividend of $0.125 per share payable on December 1 to shareholders of record as of November 7.
For the fourth quarter, Intel forecast revenue between $14.6 billion and $15.6 billion and diluted earnings per share of 23 cents, based on a gross margin of 43.3%.
Chipotle Mexican Grill, Inc. jumped 7.4% to $1,940.56 after the fast food chain operator reported better-than-expected same-store sales, driven by a price increase and higher customer traffic.
Total revenue in the third quarter increased 11.3% to $2.5 billion from $2.2 billion, net income increased to $313.2 million from $257.1 million, and diluted earnings per share advanced to $11.32 from $9.20 a year ago.
Comparable restaurant sales increased by 5%, and operating margin advanced to 16.0% from 15.1% a year ago.
Food, beverage, and packaging costs in the third quarter were 29.7% of total revenue, a decrease of about 10 basis points compared to the third quarter of 2022.
The benefit from last year's menu price increases was mostly offset by inflation across several food costs, primarily beef and queso.
Europe Movers: Covestro, Eni, IAG, MTU Aero, NatWest, Remy Cointreau, Sanofi, Signify, SKF
Bridgette Randall
27 Oct, 2023
Frankfurt
European markets lacked direction and extended weekly losses after the European Central Bank paused key lending rates after ten consecutive hikes.
The DAX index increased 0.2% to 14,764.62, the CAC-40 index fell 0.6% to 6,845.73, and the FTSE 100 index edged higher by 0.06% to 7,378.05.
SKF AB Class B increased 0.8% to 178.70 Swedish kronor after the largest industrial bearing company said it plans to exit from its non-core operations.
Covestro AG decreased 2% to €47.69 after the company confirmed it was in merger talks with Abu Dhabi National Oil Company, or ADNOC.
Sanofi SA plunged 16.9% to €83.42 after the French pharmaceutical company said it plans to split its consumer healthcare business in the fourth quarter of 2024 through a stock exchange listing in Paris.
The French pharmaceutical company reiterated its full-2023 earnings per share to grow in the "mid single-digits" at a constant currency exchange rate.
Revenue in the third quarter declined 4% to €11.95 billion, but net income soared 21.6% to €2.5 billion, or €2.01 per share.
Eni SpA rose 0.7% to €15.57, despite the Italian energy company reporting a 67% drop in third-quarter profit.
Signify NV, formerly known as Philips Lighting NV, jumped 5.7% to €24.02 after the Dutch company reported strong core earnings.
International Consolidated Airlines Group SA, or IAG, declined 0.3% to €1.64 despite the parent companies of British Air and Iberian Air reporting better-than-expected quarterly results.
NatWest Group Plc plunged 11.9% to 181.25 pence after the UK's Financial Conduct Authority said in a report that the bank may have committed potential "regulatory breaches" related to a baking account scandal that led to the ouster of its chief executive, Alison Rose.
Remy Cointreau SA plunged 8.9% to €107.40 after the French spirit and wine company lowered its sales outlook and trimmed its profit estimate.
MTU Aero Engines AG declined 2.2% to €175.75 after the German aerospace and defense company reported a rise in adjusted sales and earnings and reiterated its annual outlook.
Mixed Earnings Dragged Down European Markets, Spanish GDP Growth Slowed
Bridgette Randall
27 Oct, 2023
Frankfurt
Market indexes in Europe traded mixed in Friday's trading, and investors reviewed a mixed batch of earnings.
After a week of volatile trading, benchmark indexes lacked direction, the euro edged lower, and crude oil prices rebounded in active trading.
On Thursday, the European Central Bank paused its interest rate hike for the first time in a year after lifting rates ten times in a row.
The central bank left its main refinancing rate at 4.5%, the marginal lending facility rate at 4.75%, and the deposit facility rate at 4.0%.
The central bank noted in the accompanying statement that the euro area economy "remains weak," and inflation is weakening but still remains far above the target rate of 2.0%.
A strong labor market has supported economic activity, and the unemployment rate stood at a historical low of 6.4% in August.
"At the same time, there are signs that the labor market is weakening. Fewer new jobs are being created, including in services, consistent with the cooling economy gradually feeding through to employment," the statement highlighted.
The central bank also noted that it will take time for inflation to come down to its target level because core inflation, which excludes food and energy prices, still remains far above the target level.
In Friday's trading, investors focused on corporate earnings and economic updates in the region and overlooked the decline in market indexes in New York.
Spain's GDP expanded by 0.3% in the third quarter, following the revised 0.4% growth in the second quarter, the National Statistics Institute said on Friday.
The economy expanded by 1.8% from a year ago in the third quarter, after expanding by 2.0% in the second quarter.
Europe Indexes and Yields
The DAX index increased 0.2% to 14,764.62, the CAC-40 index fell 0.6% to 6,845.73, and the FTSE 100 index edged higher by 0.06% to 7,378.05.
The yield on 10-yetrar German bonds decreased to 2.84%, French bonds traded higher to 3.45%, the UK gilts edged up to 4.56%, and Italian bonds inched higher to 4.80%.
The euro hovered near a three-month low at $1.056, the British pound at $1.213, and the U.S. dollar at 90.71 Swiss cents.
Brent crude increased $0.78 to $88.70 a barrel, and the Dutch TTF natural gas edged higher by €0.34 to €50.47 per MWh.
Europe Stock Movers
SKF AB Class B increased 0.8% to 178.70 Swedish kronor after the largest industrial bearing company said it plans to exit from its non-core operations.
Covestro AG decreased 2% to €47.69 after the company confirmed it was in merger talks with Abu Dhabi National Oil Company, or ADNOC.
Sanofi SA plunged 16.9% to €83.42 after the French pharmaceutical company said it plans to split its consumer healthcare business in the fourth quarter of 2024 through a stock exchange listing in Paris.
The French pharmaceutical company reiterated its full-2023 earnings per share to grow in the "mid single-digits" at a constant currency exchange rate.
Revenue in the third quarter declined 4% to €11.95 billion, but net income soared 21.6% to €2.5 billion, or €2.01 per share.
Eni SpA rose 0.7% to €15.57, despite the Italian energy company reporting a 67% drop in third-quarter profit.
Signify NV, formerly known as Philips Lighting NV, jumped 5.7% to €24.02 after the Dutch company reported strong core earnings.
International Consolidated Airlines Group SA, or IAG, declined 0.3% to €1.64 despite the parent companies of British Air and Iberian Air reporting better-than-expected quarterly results.
NatWest Group Plc plunged 11.9% to 181.25 pence after the UK's Financial Conduct Authority said in a report that the bank may have committed potential "regulatory breaches" related to a baking account scandal that led to the ouster of its chief executive, Alison Rose.
Remy Cointreau SA plunged 8.9% to €107.40 after the French spirit and wine company lowered its sales outlook and trimmed its profit estimate.
MTU Aero Engines AG declined 2.2% to €175.75 after the German aerospace and defense company reported a rise in adjusted sales and earnings and reiterated its annual outlook.
Tech Earnings Jitters and Interest Rate Worries Power Market Selloff
Barry Adams
26 Oct, 2023
New York City
Investors turned cautious in Thursday's trading, and tech stocks faced another day of sell-off after the U.S. economy expanded at a faster pace in the third quarter.
The surge in consumer spending to a 4% annual pace in the third quarter from a 0.8% rate in the previous quarter accelerated the U.S. economic expansion.
However, economists were quick to point out that consumer spending growth is not sustainable, and economic growth is likely to slow down considerably in the fourth quarter.
But the damage was done on Wall Street, and high growth and tech stocks extended losses over the weeks, and jittery investors looked for reasons to sell even when Facebook parent Meta Platforms reported a surge in quarterly earnings.
The Nasdaq Composite dropped more than 1% and extended its decline to 10% from its high in late July, entering bear market territory.
Meta Platforms reported quarterly revenue and earnings that showed strength in the company's business, but investors turned cautious after the company cited a weakening advertising growth rate in the current quarter.
Big tech companies like Microsoft, Google-parent Alphabet, Meta Platforms, and IBM are reporting healthy revenue and earnings, but these companies are still falling short of investors inflated expectations, as reflected in their stock prices.
Investors are divided about the future direction of short-term and long-term interest rates, and despite the repeated forecasts of an economic slowdown over the last year, the U.S. economy continues to expand at a faster-than-expected pace.
Consumers Power U.S. GDP Growth In Third Quarter
The U.S. economy expanded at annual pace of 4.9% in the third quarter, faster than 2.1% in the second quarter and at the fastest pace since the fourth quarter of 2021.
The economy managed to accelerate its expansion despite the Federal Reserve's efforts to cool the economy by increasing its short-term benchmark rate to a 22-year high near 5.5%.
The increases in consumer spending, exports, business investment in inventories, government spending at all levels, and residential fixed investment was partly offset by a decline in nonresidential fixed investment.
The economy's total output of goods and services was kicked in higher gear after consumers accelerated their spending on high-ticket items from cars to travel and restaurant meals.
Consumer spending accelerated to 4% from 0.8% in the second quarter, the Commerce Department noted in the report released Thursday.
International trade also contributed the growth story after exports rebounded 6.2% from the decline of 9.3% in the second quarter, and imports also increased by 5.6% compared to a decline of 7.6% respectively.
Residential investment increased for the first time in nearly two years, and rose 3.9% from the decline of 2.2% in the previous quarter.
On the other hand, nonresidential fixed investment declined for the first time in two years by an annual pace of 0.1% from the increase of 7.4% in the second quarter.
Government spending rose at a faster annual pace of 4.6% from 3.3% in the second quarter.
The breakneck pace of the economic expansion is expected to cool in the current quarter, after the economy adjusts to Federal Reserve's short-term rate hikes and elevated long-term borrowing rates begin to cool consumer and business spending.
U.S. Indexes and Yields
The S&P 500 index decreased 1.2% to 4,138.16, and the Nasdaq Composite dropped 1.8% to 12,595.61.
The yield on 2-year Treasury notes decreased to 5.04%, 10-year Treasury notes inched lower to 4.85%, and 30-year Treasury bonds edged down to 4.99%.
Natural gas prices soared more than 8% after the latest weekly report from the U.S. Energy Information Administration showed that U.S. utilities added 74 billion cubic feet of gas into storage in the week ending on October 20, lower-than-expected.
Moreover, weather reports suggested that the weather in the mainland U.S. is expected to be colder than previous estimated in the next two weeks, increasing demand for gas-fired heating.
But the expectations of record production, kept the price surge in check.
The average U.S. natural production averaged 103.9 billion cubic feet in October, and the production is expected to surpass the record 103.1 billion cubic feet in July.
Crude oil increased $1.93 to $83.42 a barrel, and natural gas prices jumped 24 cents to $3.26 a thermal unit.
The dollar index edged higher to 106.39, the level last seen in November 2022, and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
Southwest Airlines declined 2.2% to $23.60 after the regional airline reported lower-than-expected revenue of $6.53 billion, and the company said it plans to trim its capacity growth after demand growth returns to pre-pandemic levels.
Hasbro, Inc. plunged 12.3% to $48.0 after the toymaker reported weaker-than-expected results in the third quarter.
The company reported quarterly revenue of $1.5 billion and net income excluding one-time items of $1.64 a share.
Bristol-Myers Squibb dropped 5.7% to $53.40 after the company reported quarterly earnings.
The pharmaceutical company said sales of its popular blood cancer drug Revlimid were down because of rising competition from generic drugs.
Royal Caribbean Cruises Ltd. increased 2.2% to $84.0 after the company reported improving quarterly results and added bookings in the third quarter were "significantly exceeding" the levels in 2019.
Revenue in the third quarter increased to $4.1 billion from $3.0 billion, net income soared to $1.0 billion from $32.9 million, and diluted earnings per share advanced to $3.65 from 13 cents a year ago.
"Demand for 2024 has continued to accelerate, with bookings significantly and consistently outpacing 2019 levels. Booked load factors and rates are higher than all prior years while the booking window has continued to extend," the company forecasted in a statement to investors.
Meta Platforms Inc. edged down 0.8% to $297.10 after the parent company of Instagram and Facebook reported strong quarterly results but guided softening advertising revenue in the current quarter.
United Parcel Service, Inc. declined 3% to $140.87 after the company reported quarterly results.
Revenue in the third quarter decreased 12.8% to $21.1 billion from $24.2 billion, net income plunged 56.4% to $1.1 billion from $2.6 billion, and diluted earnings per share dropped to $1.31 from $2.96 a year ago.
UPS now expects full-year 2023 consolidated revenue to be between $91.3 billion and $92.3 billion and a consolidated adjusted operating margin of between 10.8% and 11.3%.
The company reiterated its full-year planned capital expenditure target of about $5.3 billion and dividend payment expectations of $5.4 billion.
UPS now expects full-year 2023 stock repurchases to be approximately $2.25 billion.
Weak Earnings and Rate Anxieties Drag Down European Markets
European stocks turned lower in cautious trading ahead of interest rate decisions and weak earnings results from several corporations.
The DAX index and the CAC 40 index dropped more than 0.6% after Mercedes-Benz, Unilever, and BNP Paribas earnings disappointed investors.
The FTSE 100 index also struggled and eased more than 0.5% on the weakness in resource stocks and ongoing domestic economic growth worries.
The European Central Bank left its three key lending rates unchanged, as widely expected.
The central bank paused rates after increasing rates ten times in a row since 2022 and lifting the main refinancing rate to a 22-year high of 4.5% and the deposit facility rate to a record high of 4.0%.
Europe Indexes and Yields
The DAX index decreased 1.1% to 14,731.05, the CAC-40 index fell 0.4% to 6,888.96, and the FTSE 100 index eased 0.8% to 7,354.57.
The yield on 10-yetrar German bonds increased to 2.88%, French bonds traded higher to 3.51%, the UK gilts edged up to 4.60%, and Italian bonds inched higher to 4.91%.
The euro hovered near a three-month low at $1.054, the British pound at $1.205, and the U.S. dollar at 89.81 Swiss cents.
Brent crude increased $1.93 to $88.19 a barrel, and the Dutch TTF natural gas edged higher by €0.89 to €50.81 per MWh.
Europe Stock Movers
Mercedes-Benz Group AG declined 5.9% to €57.75 after the German luxury automaker forecasted downward pressure on car sales margins after two years of sales gains.
BNP Paribas SA decreased 3.9% to €53.94 after the French bank reported a decline in third-quarter profit on higher expenses.
HelloFresh SE dropped 11.2% to €21.62 after the meal-kit provider reported third-quarter revenue that fell short of some investors' expectations.
Aixtron SE added 0.6% to €28.68 after the chip systems maker reported a slight increase in sales and earnings in the third quarter.
Danone SA increased 2.9% to €56.47 after the yogurt company lifted its full-year outlook.
Carrefour SA jumped 4.4% to €16.31 after the French hypermarket operator reported an increase in third-quarter sales and the company reiterated its full-year outlook.
Sodexo SA advanced 6.5% to €103.70 after the French flight catering and food company said it plans to list its voucher and benefits division, Pluxee, early in 2024.
Unilever plc declined 3% to 3,895.0 pence after the new chief executive officer released a plan to simplify and restructure the business.
WPP Plc declined 2.3% to 675.20 pence after the U.K.-based advertising company trimmed its outlook for the second time in as many quarters.
Standard Chartered Plc dropped 9.9% after the U.K.-based bank reported a sharply lower quarterly profit because of high impairment charges linked to China's property market.
Net interest margin in the quarter advanced to 1.67% from 1.43% a year ago but eased 4 basis points from the previous quarter.
The emerging-markets-focused bank swung to a net loss of $35 million from a profit of $964 million a year ago.
The bank's high exposure to the Chinese property market negatively impacted quarterly performance, as the lender provided about $1.1 billion in loans to real estate developers in the last two years.
Standard Chartered said provision for credit losses increased 37% from a year ago to $294 million, including $186 million related to its commercial property sector in China.
The bank also lowered the carrying value of its investment in China Bohai Bank by $697 million, reflecting weak macroeconomic conditions and the bank's cautious outlook.
Despite the current weakness, the bank reiterated its annual outlook in a statement released to investors.
The company guided a full-year 2023 net interest margin of 1.70 basis points, income to increase in the 12%–14% range in constant currency, and a return on tangible equity of 10%.
“We continue to expect 2024 income growth to be in the 8% to 10% range at constant currency, and we remain confident of achieving a greater than 11% return on tangible equity,” said group chief financial officer Andy Halford.