Market Update
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.
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.