October 8% Surge Leads S&P 500 Index to 1% Rise in 2015

Nichole Harper
30 Oct, 2015
New York City

Market indexes on Wall Street closed down after consumer spending in September registered its smallest increase in eight months. Crude oil in New York and in London gained 2%. S&P 500 index soared 8% and erased all of the summer month decline taking the benchmark to 1% increase in the year so far.

[R][4:30 PM New York City, New York – Market indexes on Wall Street closed down after consumer spending in September registered its smallest increase in eight months. Crude oil in New York and in London gained 2%. S&P 500 index soared 8% and erased all of the summer month decline taking the benchmark to 1% increase in the year so far.[/R]

Stocks struggled in New York trading and the U.S. consumer spending in September registered its smallest increase in eight months after income rose fractionally.

September personal income increased 0.1% and disposable personal income rose 0.1% and personal consumption expenditure grew 0.1% in the month.

In August, personal income jumped 0.4%, disposable personal income increased 0.4% and personal consumption expenditure gained 0.4% on revised estimate, the U.S. Department of Commerce said.

On Wall Street, Tollbooth Strategy Index slid 9.18 to 11,003.66.

S&P 500 index rose 2.11 to 2,091.49 and the Nasdaq Composite Index added 4.48 to 5,078.81.

Crude oil in New York increased 72 cents to $46.78 a barrel and gold fell $4.73 to $1,141.24 an ounce.

U.S. Movers

Colgate-Palmolive Company ((CL)) declined 3.3% or $2.25 to $66.99 after the consumer products maker reported net sales in the third-quarter ending in September plummeted 8.5% from a year ago to $3.99 billion.

Net income in the quarter surged 33.9% to $726 million or 80 cents per diluted share compared to $542 million or 59 cents per share from the same quarter last year.

CVS Health Corp ((CVS)) plunged 4.9% or $5.13 to $98.67 after the general merchandise retailer stated net revenues in the third-quarter ending in September surged 10.3% from a year ago to $38.64 billion.

Net income in the quarter soared 31.8% to $1.25 billion or $1.11 per diluted share compared to $948 million or 81 cents per share from the same quarter last year.

For the year, the company lifted diluted earnings per share forecast between $4.69 to $4.73 from the earlier estimated range between $4.64 and $4.71.

The company estimated earnings per share for the fiscal 2016 in the range to grow between 10% and 14% or $5.68 to $5.88.

Chevron Corporation ((CVX)) gained 1.5% or $1.36 to $91.25 after the petroleum product refiner said total revenues in the third-quarter ending in September plunged 37.3% from a year ago to $34.32 billion.

Net income in the quarter tumbled 63.5% to $2.04 billion or $1.09 per diluted share compared to $5.59 billion or $2.95 per share from the same quarter last year.

Exxon Mobil Corporation rose 67 cents to $82.86 after the oil and gas refiner reported total revenues in the third-quarter ending in September declined 37.2% from a year ago to $67.34 billion.

Net income in the quarter plunged 47.5% to $4.24 billion or $1.01 per diluted share compared to $8.07 billion or $1.89 per share from the same quarter last year.

Visa Inc ((V)) fell 50 cents to $78.01 after the credit cards services provider is in preliminary talks to purchase its former subsidiary Visa Europe for about $22bn or £14.34 billion or €20 billion to combine its global operations.

The deal may announce on or before November 5 while its release its earnings results.

European Markets

In September, the euro-zone seasonally adjusted unemployment rate fell at 10.8% from 10.9% in August and from 11.5% in September 2014.

The unemployment rate in the wider region of EU28 slid to 9.3% from August and 10.1% from September 2014, the Statistical Office of the European Communities said.

Separately, the department reported in a preliminary estimate the annual inflation in the euro area edged up to break even in October from 0.1% decline in September.

In London trading, FTSE 100 index slipped 53.38 or 0.8% to 6,342.43 and in Frankfurt the DAX index rose 32.58 or 0.3% to 10,834.74.

In Paris, CAC 40 index edged up 4.17 to 4,889.99.

For the week, FTSE 100 index decreased 1.5% and the DAX index added 0.4% and the CAC 40 index slid 0.7%.

For the month, FTSE 100 index jumped 4.7% and the DAX index surged 12.1% and the CAC 40 index soared 9.7%.

Airbus Group SE soared 4.4% to €63.64 after the France-based aerospace and defense products maker said revenues in the nine-month period ending on September advanced 6% from a year ago to €42.97 billion.

Net profit in the quarter jumped 36% from a year ago to €1.90 billion compared to €1.40 billion and diluted earnings per share increased to €2.42 from €1.79.

The aviation company plans to sell its remaining 23.4% stake in Dassault Aviation by the end of next year, finance director Harald Wilhelm said.

Separately, the company approved share buyback program for up to €1 billion between November and 30 June 2016.

BNP Paribas SA increased 1.1% to €54.88 after the France-based banking and financial services provider reported revenues in the third-quarter ending in September soared 8.5% from a year ago to $10.35 billion.

Net profit in the quarter surged 14.5% from a year ago to $1.83 billion compared to $1.60 billion and diluted earnings per share soared to $1.02 from $1.42.

Barclays Plc slumped 2.7% to 230.85 pence after the U.K.-based financial services provider said revenues in the third-quarter ending in September fell 3% from a year ago to £19.09 billion.

Net profit in the quarter surged 14% from a year ago to £2.94 billion compared to £2.59 billion and diluted earnings per share rose to 17.9 pence from 16.1 pence.

The bank set aside £290 million to compensate customers mis-sold foreign exchange products and also plans to spend £500 million additionally on ring-fencing during fiscal 2017 and 2018.

Barclays will also spend £1 billion to protect its U.K.-based retail customers from riskier areas of the business.

Asian Markets

Nikkei average in Tokyo closed higher and extended weekly gain to 1.4% and more the month to nearly 9%.

The housing starts in September declined more-than-expected to 2.2% from the surge of 8.8% in August, the Ministry of Land, Infrastructure, Transport and Tourism said.

The number of housing starts in September fell to 90,000 from 931,000 in August.

The consumer price index in September was unchanged from 0.2% in August and overall inflation edged up 0.1% while core inflation was flat, the Ministry of Internal Affairs and Communications said.

Separately, the department reported the seasonally adjusted unemployment rate in September was steady at 3.4% from the last month.

The number of unemployed persons decline by 2.6% to 2.27 million from August and employed persons in September rose 0.6% to 64.39 million.

The Nikkei 225 Stock Average rose 147.39 or 0.8% to 18,083.10 and the broader Topix index gained 11.09 to 1,558.20.

For the week, Nikkei 225 increased 1.4% and for the month soared 9.8% and from a year ago surged 24.8%.

The yen strengthened to 120.86 against a dollar.

Japan Exchange Group Inc rose 1.6% to 1,964 yen after the trading exchange operator stated net sales in the first-half ending in September soared 16.3% from a year ago to 57.95 billion yen.

Net income in the period surged 46.6% to 23.89 billion yen compared to 16.29 billion yen and earnings per share rose to 43.49 yen from 29.67 yen.

The exchange operator forecasted net sales for the year to increase 1.7% to 108 billion yen and net income to soar 11.8% to 38.50 billion yen.

NTT DoCoMo Inc increased 1.2% to 2,357.50 yen after the mobile and broadband services provider reported net sales in the first-half ending in September rose 1.9% from a year ago to 2.21 trillion yen.

Net income in the period surged 22.2% to 317.14 billion yen compared to 259.52 billion yen and earnings per share jumped to 81.70 yen from 62.61 yen.

The broadband services provider forecasted net sales for the year to advance 2.4% to 4.49 trillion yen and net income to soar 19.5% to 490 billion yen.

Stocks in Mumbai closed edged lower and two largest private lenders reported better-than-expected earnings.

Rupee strengthened 3 paisa to 65.25 against one U.S. dollar.

The Sensex Index slipped 181.31 or 0.7% to close at 26,656.83. The CNX Nifty fell 45.95 or 0.6% to 8,065.80.

For the week, Sensex Index declined 3.1% and CNX Nifty dropped 2.9%.

ICICI Bank and Kotak Mahindra Bank said quarterly profit surged and one of the largest generic drug makers said Dr. Reddy''s Lab profit soared 26%.

Nestle India net and revenues declined and the largest infrastructure services provider L&T said quarterly profit rose 16%.