Market Update
Investors Shift Focus to Earnings and Treasury Yields Edged Lower
Barry Adams
04 Oct, 2023
New York City
For two months direction of interest rates have been determining direction of stocks and that trends was in full-display again today.
The S&P 500 index and the Nasdaq Composite struggled to advance and yields on Treasury notes and bonds edged lower from 2007-highs reached in the previous session.
Private sector payrolls data released by the ADP suggested weaker-than-expected jobs gain of 89,000 in September.
The increase in payrolls fell sharply from 180,000 in July.
The ADP data series is volatile and the monthly estimates are subject to significant revisions, but the gains fell short of expectations of an increase of as much 155,000 set by some economists surveyed by Ticker.com.
Investors shifted attention to upcoming earnings season and banks were in focus.
Investors are looking get more clues about the impact of higher interest rates and new capital requirements at banks of all sizes.
Manufactured Goods Orders Increased In August
New orders for manufactured goods in August, up five of the last six months, increased $6.7 billion or 1.2% to $586.1 billion, the U.S. Census Bureau reported Wednesday.
New orders rose at a slower pace after rising 2.1% in July.
Durable goods orders increase in August was revised lower to 0.1% from the previous estimate of an increase of 0.2%.
Excluding transportation, new orders increased 1.4% and excluding volatile defense orders rose 0.8%.
U.S. Indexes & Yields
The S&P 500 index edged down 0.02% to 4,228.33 and the Nasdaq Composite rose 0.3% to 13,093.69.
The yield on 2-year Treasury notes increased to 5.12%, 10-year Treasury notes inched lower to 4.77% and 30-year Treasury bonds edged down to 4.89%.
Crude oil decreased $2.48 to $86.42 a barrel and natural gas prices increased 6 cents to $3.11 a thermal unit.
The dollar index edged lower to 106.91, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
Cal-Maine Foods Inc plunged 7.7% to $44.05 after the egg producer reported sharply lower sales in its latest quarter after prices declined.
The company also reported earnings of 2 cents per share, lower than the estimate of as high as 30 cents set by some analysts.
Intel Corporation declined 0.4% to $35.57 after the advanced chipmaker said it plans to operate its programmable chip division as a standalone unit in preparation of a public offering in the next two years.
Europe Movers: Novartis, Sandoz, Spirent Communications, Superdry, Tesco
Inga Muller
04 Oct, 2023
Frankfurt
Market indexes in Europe rebounded and the euro hovered near its one-year low and bond yields advanced to 12-year highs.
The DAX index increased 0.4% to 15,132.79, the CAC-40 index added 0.4% to 7,028.63 and the FTSE 100 index rose 0.2% to 7,472.03.
The yield on 10-year German bonds increased to 2.94%, French bonds traded higher to 3.52%, the UK gilts edged up to 4.59% and Italian bonds rose to 4.93%.
Novartis AG decreased 4.5% to CHF 88.01 after the Swiss pharmaceutical company completed the spinoff of its generic pharma division Sandoz though a dividend-in-kind distribution to its shareholders and American Deposit Receipt holders.
Tesco Plc rose 3.9% to 269.60 pence after the British grocery retailer lifted its annual earnings outlook.
Spirent Communications Plc plunged 31.3% to 90.35 pence after the British Telecom controlled testing services provider lowered its outlook.
Superdry Plc soared 20% to 52.06 pence after the struggling fashion retailer said it plans to sell its digital and intellectual assets in South Asia to Reliance Retail.
European Markets Rebounded After Record Drop In Wholesale Inflation
Bridgette Randall
04 Oct, 2023
Frankfurt
European market indexes reversed early losses in the session and investors reviewed the latest batch of economic data in the region.
Market indexes opened lower tracking losses on Wall Street and bond yields in the region advanced after the U.S. Treasury yields jumped to 16-year highs.
Market averages traded around flatline after the European Central Bank president Christine Lagarde reiterated today that interest rates are likely to stay elevated for some time to cool inflation.
Tough talk from central bank president rang hollow as central bank has no timeline in bringing down inflation to its target rate of 2%.
Moreover the decline in wholesale price index also supported market advance in today's session.
Euro Area Retail Sales Declined In August
Retail sales in the Euro Area decreased 1.2% from the previous month in August, Eurostat reported Wednesday.
Automotive fuel sales declined 3% in the month compared to 0.6% fall in July after prices rose.
Sales of food, drink and tobacco decreased 1.2% after staying flat in the previous month and sales of non-food products fell 0.9% after rising for four months in a row.
Retail sales declined 2.1% from a year ago, following a 1% decline in July and extended fall for the 11th month in a row.
Record Fall In Wholesale Inflation
Wholesale price index or producer prices declined 11.5% from a year ago in August. Eurostat reported Wednesday.
The measure of wholesale inflation declined at the fastest pace on record after energy prices dropped 30.6% compared to 24.2% in July and intermediate goods prices decreased 4.5% compared to 4% in the previous month.
Prices rose at a slower pace for capital goods at 4.3% compared to 4.7%, for durable goods at 4.7% from 5.1% and non-durable goods at 6.7% from 7.6% in the previous month respectively.
Excluding energy, core producer prices decreased 1% compared to 1.6% in July.
Europe Indexes & Yields
The DAX index increased 0.4% to 15,132.79, the CAC-40 index added 0.4% to 7,028.63 and the FTSE 100 index rose 0.2% to 7,472.03.
The yield on 10-year German bonds increased to 2.94%, French bonds traded higher to 3.52%, the UK gilts edged up to 4.59% and Italian bonds rose to 4.93%.
The euro edged lower to a three-month low to $1.05, the British pound to $1.21 and the U.S. dollar fetched 91.76 Swiss cents.
Brent crude decreased $1.65 to $89.25 a barrel and the Dutch TTF natural gas edged lower by €0.21 to €37.20 per MWh.
Europe Stock Movers
Novartis AG decreased 4.5% to CHF 88.01 after the Swiss pharmaceutical company completed the spinoff of its generic pharma division Sandoz though a dividend-in-kind distribution to its shareholders and American Deposit Receipt holders.
Tesco Plc rose 3.9% to 269.60 pence after the British grocery retailer lifted its annual earnings outlook.
Spirent Communications Plc plunged 31.3% to 90.35 pence after the British Telecom controlled testing services provider lowered its outlook.
Superdry Plc soared 20% to 52.06 pence after the struggling fashion retailer said it plans to sell its digital and intellectual assets in South Asia to Reliance Retail.
Nasdaq Dropped 2%, Washington Turmoil Contributed to Upswing In Treasury Yields
Barry Adams
03 Oct, 2023
New York City
Market averages accelerated decline in the afternoon as the selloff in Treasury yields spread to longer-dated maturities.
Political turmoil in Washington also heightened market anxieties after divided Republicans struggled to rally behind Speaker Kevin McCarthy.
The House is likely to remain without a leader for weeks if not months, increasing political dysfunction and may prompt rating agencies to place the U.S. debt on a negative watch list.
Rising U.S. Treasury yields added more downward pressure on market indexes and investors stayed cautious ahead of earnings season kickoff.
The S&P 500 index and the Nasdaq Composite trended lower after the yield on 10-year Treasury notes jumped to a high not seen since August 2007.
After months of hoping that interest rates are nearing peak rates, investors abandoned the expectations of the Federal Reserve lowering rates this year.
Instead, the Federal Reserve suggested one more rate hike at the end of the last meeting two weeks ago and also signaled that higher rates are likely to stay longer well into 2024.
In the last two weeks, the yields on 2-year and 5-year Treasury notes edged higher and now the yields are rising on 10-year, 20-year and 30-year Treasury bonds.
Stock market clearly noticed the rising bond yields, as higher bond yields attract more capital away from stocks and present value of future earnings of tech and high tech stocks lose value because of higher interest rates.
Moreover, surging crude oil prices in the last two months have reignited fears of higher inflation after months of decline in overall inflation.
Tight labor market conditions also contributed to the rise in Treasury yields in today's trading.
The number of job openings increased to 9.6 million at the end of August, the Bureau of Labor Statistics reported Tuesday.
Job openings increased 5.8% or 690,000 in the month from a year ago.
The higher job openings highlighted persistent tight labor conditions despite multiple interest rate hikes and elevated inflation.
Over the month, the number of hires rose modestly by 35,000 and separations changed little at 5.9 million and 5.7 million respectively.
U.S. Indexes & Yields
The S&P 500 index edged down 1.4% to 4,229.45 and the Nasdaq Composite fell 1.9% to 13,059.47.
The yield on 2-year Treasury notes increased to 5.15%, 10-year Treasury notes inched lower to 4.79% and 30-year Treasury bonds edged down to 4.92%.
Crude oil increased $0.58 to $89.41 a barrel and natural gas prices increased 9 cents to $2.93 a thermal unit.
The dollar index edged higher to 107.02, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
Macy's Inc declined 0.5% to $11.49 after the department store operator said it plans to open 30 smaller stores in strip malls over the next two years.
The retailer hopes that smaller stores with limited merchandise and modern look will appeal to younger customers who do not frequent large malls.
Point Biopharma Inc soared 84% to $12.23 after the company agreed to be acquired by Eli Lilly for $12.50 a share in cash or $1.4 billion.
Eli Lilly & Company decreased 1.1% to $532.39.
McCormick & Company Inc dropped 7.8% to $68.86 after the spice maker reported quarterly results.
Revenue in the third quarter ending in August increased 6% to $1.7 billion from $1.6 billion and net income dropped to $170 million from $222.9 million and diluted earnings per share dropped to 63 cents from 83 cents a year ago.
The company reiterated its sales and operating earnings outlook for 2023.
Revenue in 2023 is expected to increase between 5% and 7%, primarily driven by price increases and operating income is expected to increase between 11% and 13% from $864 million and diluted earnings per share between $2.46 and $2.51 compared to $2.52 in 2022.
In Europe Bond Yields and Currencies Diverge
European market indexes hovered near flatline after twin worries of interest rates and inflation drove market sentiment.
Market indexes in Paris and Frankfurt declined but in London rose amid ongoing interest rate uncertainties and elevated inflation.
Policymakers of central banks in the Euro Area and UK continue to send hawkish messages about bringing down inflation but their actions fall short.
Despite tough talk by policymakers and reiterating commitment in bringing down inflation, interest rates remain far from restrictive, prices are still rising and there is no deadline for lowering inflation to target rate of 2%.
Inflation has declined since peaking above 7% in the Euro Area and 9% in the UK, but most of the weakening in inflation is because of base effect.
Policymakers have engaged in double-talk on inflation, on one hand sending hawkish statements about their commitment in lowering inflation, on the other hand keeling the rates far from restrictive and not setting a deadline for bringing down inflation rate to 2%.
UK Retail Price Inflation Eased In September
Retail prices rose at a slower pace of 6.2% in September after rising at 6.9% in August, the British Retail Consortium said on Tuesday.
The retail price inflation was the slowest since September 2022, and food price inflation eased to 9.9% from 11.5% in the previous month and eased for the first on a monthly basis in more than two years.
Spain's Unemployed Expanded In September
Spain's registered jobless people increased by 0.7% or 19,768 to 2.72 million in September, the ministry of employment and social security reported Tuesday.
Europe Indexes & Yields
The DAX index decreased 0.3% to 15,085.21, the CAC-40 index eased 1.0% to 6,997.05 and the FTSE 100 index fell 0.5% to 7,470.16.
The yield on 10-year German bonds increased to 2.93%, French bonds traded higher to 3.50%, the UK gilts edged up to 4.54% and Italian bonds rose to 4.85%.
The euro edged lower to a three-month low to $1.048, the British pound to $1.205 and the U.S. dollar fetched 92.25 Swiss cents.
Brent crude increased $0.51 to $91.22 a barrel and the Dutch TTF natural gas edged lower by €2.33 to €36.99 per MWh.
Europe Stock Movers
Boohoo Group plunged 9.9% to 28.43 pence after the reported a wider first-half loss in the first-half after revenue declined.
The online fashion retailer also lowered its 2024 outlook citing weak demand and macroeconomic headwinds.
Sika AG declined 0.4% to CHF 229.20 after the Swiss chemical company raised its annual sales outlook.
Petrofac Ltd decreased 0.7% to 71.0 pence and the oil service company won a $600 million carbon capture project from ADNOC Gas located at Habshan, UAE.
Kingfisher Plc declined 2.0% to 212.20 pence after the company launched £50 million of the £300 million stock repurchase plan.
Greggs Plc decreased 2.9% to 2,406.0 pence after the company said it has no plans to raise prices before Christmas holiday.
August Job Openings Suggested Tight Labor Market Conditions
Brian Turner
03 Oct, 2023
New York City
The number of job openings increased to 9.6 million at the end of August, the Bureau of Labor Statistics reported Tuesday.
Job openings increased 5.8% or 690,000 in the month from a year ago.
The higher job openings highlighted persistent tight labor conditions despite multiple interest rate hikes and elevated inflation.
Over the month, the number of hires rose modestly by 35,000 and separations changed little at 5.9 million and 5.7 million respectively.
Over the month, job openings increased in professional and business services by 509,000, finance and insurance by 96,000, state and local government education by 76,000, nondurable goods manufacturing by 59,000, and federal government by 31,000.
The number of separations, quits and layoffs were little changed in the month.
The number of total separations in August was little changed at 5.7 million, and the rate was unchanged at 3.6%, the number of quits changed little at 3.6 million and the rate was unchanged at 2.3% and the number of layoffs and discharges changed little at 1.7 million, and the rate held at 1.1 %.
The number of job openings have been on the decline after peaking at 12 million in March 2022, and the openings fell as low as 8.9 million in July 2023.
U.S. Movers: Eli Lilly, Macy's, McCormick, Point Biopharma
Scott Peters
03 Oct, 2023
New York City
Tech stocks led the decliners on Wall Street after Treasury selloff deepened and spread to longer dated maturities.
The S&P 500 index edged up 0.006% to 4,288.39 and the Nasdaq Composite rose 0.7% to 13,307.77.
The yield on 2-year Treasury notes increased to 5.11%, 10-year Treasury notes inched lower to 4.72% and 30-year Treasury bonds edged down to 4.85%.
Macy's Inc declined 0.5% to $11.49 after the department store operator said it plans to open 30 smaller stores in strip malls over the next two years.
The retailer hopes that smaller stores with limited merchandise and modern look will appeal to younger customers who do not frequent large malls.
Point Biopharma Inc soared 84% to $12.23 after the company agreed to be acquired by Eli Lilly for $12.50 a share in cash or $1.4 billion.
Eli Lilly & Company decreased 1.1% to $532.39.
McCormick & Company Inc dropped 7.8% to $68.86 after the spice maker reported quarterly results.
Revenue in the third quarter ending in August increased 6% to $1.7 billion from $1.6 billion and net income dropped to $170 million from $222.9 million and diluted earnings per share dropped to 63 cents from 83 cents a year ago.
The company reiterated its sales and operating earnings outlook for 2023.
Revenue in 2023 is expected to increase between 5% and 7%, primarily driven by price increases and operating income is expected to increase between 11% and 13% from $864 million and diluted earnings per share between $2.46 and $2.51 compared to $2.52 in 2022.
U.S. Treasury Selloff Spreads to Longer Dated Maturities, S&P 500 Drops
Barry Adams
03 Oct, 2023
New York City
Rising U.S. Treasury yields added more downward pressure on market indexes and investors stayed cautious ahead of earnings season kickoff.
The S&P 500 index and the Nasdaq Composite trended lower after the yield on 10-year Treasury notes jumped to a high not seen since August 2007.
After months of hoping that interest rates are nearing peak rates, investors abandoned the expectations of the Federal Reserve lowering rates this year.
Instead, the Federal Reserve suggested one more rate hike at the end of the last meeting two weeks ago and also signaled that higher rates are likely to stay longer well into 2024.
In the last two weeks, the yields on 2-year and 5-year Treasury notes edged higher and now the yields are rising on 10-year, 20-year and 30-year Treasury bonds.
Stock market clearly noticed the rising bond yields, as higher bond yields attract more capital away from stocks and present value of future earnings of tech and high tech stocks lose value because of higher interest rates.
Moreover, surging crude oil prices in the last two months have reignited fears of higher inflation after months of decline in overall inflation.
U.S. Indexes & Yields
The S&P 500 index edged up 0.006% to 4,288.39 and the Nasdaq Composite rose 0.7% to 13,307.77.
The yield on 2-year Treasury notes increased to 5.11%, 10-year Treasury notes inched lower to 4.72% and 30-year Treasury bonds edged down to 4.85%.
Crude oil increased $0.19 to $89.01 a barrel and natural gas prices increased 4 cents to $2.88 a thermal unit.
The dollar index edged higher to 107.19, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
Macy's Inc declined 0.5% to $11.49 after the department store operator said it plans to open 30 smaller stores in strip malls over the next two years.
The retailer hopes that smaller stores with limited merchandise and modern look will appeal to younger customers who do not frequent large malls.
Point Biopharma Inc soared 84% to $12.23 after the company agreed to be acquired by Eli Lilly for $12.50 a share in cash or $1.4 billion.
Eli Lilly & Company decreased 1.1% to $532.39.
McCormick & Company Inc dropped 7.8% to $68.86 after the spice maker reported quarterly results.
Revenue in the third quarter ending in August increased 6% to $1.7 billion from $1.6 billion and net income dropped to $170 million from $222.9 million and diluted earnings per share dropped to 63 cents from 83 cents a year ago.
The company reiterated its sales and operating earnings outlook for 2023.
Revenue in 2023 is expected to increase between 5% and 7%, primarily driven by price increases and operating income is expected to increase between 11% and 13% from $864 million and diluted earnings per share between $2.46 and $2.51 compared to $2.52 in 2022.
Rising Bond Yields and Weakening Currencies In Europe Keep Stocks Down
Bridgette Randall
03 Oct, 2023
Frankfurt
European market indexes hovered near flatline after twin worries of interest rates and inflation drove market sentiment.
Market indexes in Paris and Frankfurt declined but in London rose amid ongoing interest rate uncertainties and elevated inflation.
Policymakers of central banks in the Euro Area and UK continue to send hawkish messages about bringing down inflation but their actions fall short.
Despite tough talk by policymakers and reiterating commitment in bringing down inflation, interest rates remain far from restrictive, prices are still rising and there is no deadline for lowering inflation to target rate of 2%.
Inflation has declined since peaking above 7% in the Euro Area and 9% in the UK, but most of the weakening in inflation is because of base effect.
Policymakers have engaged in double-talk on inflation, on one hand sending hawkish statements about their commitment in lowering inflation, on the other hand keeling the rates far from restrictive and not setting a deadline for bringing down inflation rate to 2%.
UK Retail Price Inflation Eased In September
Retail prices rose at a slower pace of 6.2% in September after rising at 6.9% in August, the British Retail Consortium said on Tuesday.
The retail price inflation was the slowest since September 2022, and food price inflation eased to 9.9% from 11.5% in the previous month and eased for the first on a monthly basis in more than two years.
Spain's Unemployed Expanded In September
Spain's registered jobless people increased by 0.7% or 19,768 to 2.72 million in September, the ministry of employment and social security reported Tuesday.
Europe Indexes & Yields
The DAX index decreased 0.3% to 15,203.10, the CAC-40 index eased 0.1% to 7,060.25 and the FTSE 100 index rose 0.2% to 7,524.46.
The yield on 10-year German bonds increased to 2.93%, French bonds traded higher to 3.50%, the UK gilts edged up to 4.54% and Italian bonds rose to 4.85%.
The euro edged lower to a three-month low to $1.048, the British pound to $1.205 and the U.S. dollar fetched 92.25 Swiss cents.
Brent crude decreased $0.52 to $92.18 a barrel and the Dutch TTF natural gas edged lower by €2.91 to €36.43 per MWh.
Europe Stock Movers
Boohoo Group plunged 9.9% to 28.43 pence after the reported a wider first-half loss in the first-half after revenue declined.
The online fashion retailer also lowered its 2024 outlook citing weak demand and macroeconomic headwinds.
Sika AG declined 0.4% to CHF 229.20 after the Swiss chemical company raised its annual sales outlook.
Petrofac Ltd decreased 0.7% to 71.0 pence and the oil service company won a $600 million carbon capture project from ADNOC Gas located at Habshan, UAE.
Kingfisher Plc declined 2.0% to 212.20 pence after the company launched £50 million of the £300 million stock repurchase plan.
Greggs Plc decreased 2.9% to 2,406.0 pence after the company said it has no plans to raise prices before Christmas holiday.
Investors Bid Up Stocks In Cautious Trading With Earnings In Focus
Barry Adams
02 Oct, 2023
New York City
Stocks in volatile trading closed higher after investors shifted focus away from Washington to upcoming earnings releases this week.
The S&P 500 index and the Nasdaq Composite advanced and caution prevailed in trading on Monday's trading on Wall Street after crude oil prices declined.
The U.S. Congress passed a short-term spending plan that will fund various government programs for the next 45 days but deep divisions remain in the Republican controlled House over the level of funding and war efforts in Ukraine.
For now, investors treated the latest spending plan as a stop-gap measure that postpones the finalization of the new fiscal year budget and debt levels.
Investors are shifted attention to attention to the upcoming earnings release and banks are expected to report a rebound in earnings despite the rising interest rates.
In September, the S&P 500 index registered its worst monthly decline in 2023 of 4.9% and the Nasdaq Composite fell 5.8%.
In the third quarter, the S&P 500 index dropped 3.7% and the Nasdaq Composite fell 4.1%.
Investors have been selling stocks since the market indexes reached this year's high in July but the S&P 500 index is still up about 12% in the year so-far.
U.S. Indexes & Yields
The S&P 500 index edged up 0.006% to 4,288.39 and the Nasdaq Composite rose 0.7% to 13,307.77.
The yield on 2-year Treasury notes increased to 5.11%, 10-year Treasury notes inched lower to 4.65% and 30-year Treasury bonds edged down to 4.77%.
Crude oil decreased $2.27 to $88.40 a barrel and natural gas prices decreased 8 cents to $2.84 a thermal unit.
The dollar index edged higher to 107.01, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
Tesla Inc dropped 1.9% to $245.43 after the company said production in the third quarter declined because of the planned production shutdown.
Electric vehicle deliveries in the third quarter increased to 466,140 units from 365,923 units and production rose to 365,923 from 343,820 a year ago.
The company reiterated its full-year production outlook of 1.8 million units.
European Markets Struggled to Advance
European markets reversed earlier gains after the release of manufacturing survey and amid ongoing rate path worries.
Market indexes in Frankfurt, Paris and London edged lower amid worries of continuing slowdown in the manufacturing sector.
Persistent Manufacturing Weakness In Eurozone and UK
The final euro zone HCOB manufacturing Purchasing Managers' Index declined to 43.4 in September from 43.5 in the previous month.
The reading below 50 indicated contraction, and the latest survey showed demand declined at the fastest pace since record keeping began in 1997.
A separate survey showed that the UK's manufacturing sector continued to face weakening activities in September.
The seasonally adjusted S&P Global/CIPS manufacturing purchasing managers' index edged slightly higher to 44.3 from 39-month low of 43.0 in August.
Manufacturing sector outlook remained weak because of weak demand from domestic and foreign customers.
Euro Area Jobless Rate Drops to Record Low
Job market conditions remained tight in the Euro Area and the jobless rate declined to the lowest level since record keeping began in 1995.
The seasonally adjusted jobless rate in the Euro Are decreased to 6.4% in August from the upwardly revised 6.5% in July, Eurostat reported Monday.
Jobless rate in August a year ago was 6.7%.
The number of unemployed people decreased by 107,000 from the previous month to 10.856 million.
Of the four large economies in the Euro Area, Germany recorded the lowest jobless rate of 3% and Spain led with the highest rate of 11.5%.
Jobless rate in Italy and France was 7.3%.
Meanwhile, the youth unemployment rate, jobless rate among jobseekers 25 years and younger, edged down to a record low of 13.8% in August 2023, from 13.9% in July.
Europe Indexes & Yields
The DAX index decreased 0.9% to 15,247.51, the CAC-40 index declined 0.9% to 7,068.16 and the FTSE 100 index fell 1.3% to 7,510.72.
The yield on 10-year German bonds increased to 2.87%, French bonds traded higher to 3.43%, the UK gilts edged up to 4.47% and Italian bonds rose to 4.78%.
The euro edged lower to a three-month low to $1.05, the British pound to $1.21 and the U.S. dollar fetched 91.41 Swiss cents.
Brent crude decreased $1.59 to $90.60 a barrel and the Dutch TTF natural gas edged higher by €2.16 to €39.70 per MWh.
Europe Stock Movers
Banco Bilbao Vizcaya Argentaria, S.A. increased 1% to €7.79 after the Spanish bank received an approval from the European Central Bank for its stock repurchase program of up to €1 billion.
BAE Systems Plc added 0.9% to 1,006.50 pence after the company won a £4 billion submarine contract from the UK government as a part of the AUKUS program with the U.S. and Australia to build attack submarines.
United Utilities Group Plc gained 1.8% to 965.20 pence after the company reiterated its outlook for the year ending in March.
Deutsche Bank AG decreased 1% to €10.34 after local news reports suggested that the German financial regulator has appointed a special monitor to oversee the company's handling of customer service problems at its unit Post Bank.
Allianz SE declined 0.3% to €224.20 and the company extended the tenure of Oliver Bates as chief executive and chairman of the board.
Melrose Industries Plc decreased 0.5% to 466.70 pence after the company launched its £500 million stock repurchase program.
Pennon Group Plc jumped 3.7% to 607.75 pence after the water and waste water management company said business performance is in-line with management expectations in the first-half ending in September.
Investors Shift Focus to Earnings After U.S. Lawmakers Delay Government Shutdown
Barry Adams
02 Oct, 2023
New York City
Market indexes traded down and the U.S. federal government narrowly averted a shutdown.
The S&P 500 index and the Nasdaq Composite declined and caution prevailed in early trading in Monday's trading on Wall Street.
The U.S. Congress passed a short-term spending plan that will fund various government programs for the next 45 days but deep divisions remain in the Republican controlled House over the level of funding and war efforts in Ukraine.
For now, investors treated the latest spending plan as a stop-gap measure that postpones the finalization of the new fiscal year budget and debt levels.
Investors are shifted attention to attention to the upcoming earnings release and banks are expected to report a rebound in earnings despite the rising interest rates.
In September, the S&P 500 index registered its worst monthly decline in 2023 of 4.9% and the Nasdaq Composite fell 5.8%.
In the third quarter, the S&P 500 index dropped 3.7% and the Nasdaq Composite fell 4.1%.
Investors have been selling stocks since the market indexes reached this year's high in July but the S&P 500 index is still up about 12% in the year so-far.
U.S. Indexes & Yields
The S&P 500 index increased 0.6% to 4,326.15 and the Nasdaq Composite rose 1.1% to 13,353.24.
The yield on 2-year Treasury notes increased to 5.11%, 10-year Treasury notes inched lower to 4.65% and 30-year Treasury bonds edged down to 4.77%.
Crude oil increased $0.33 to $92.04 a barrel and natural gas prices decreased 5 cents to $2.89 a thermal unit.
The dollar index edged higher to 105.88, the level last seen in November 2022 and extended gains from the low of 99.85 on July 13, 2023.
U.S. Stock Movers
Tesla Inc dropped 1.9% to $245.43 after the company said production in the third quarter declined because of the planned production shutdown.
Electric vehicle deliveries in the third quarter increased to 466,140 units from 365,923 units and production rose to 365,923 from 343,820 a year ago.
The company reiterated its full-year production outlook of 1.8 million units.