U.S. October Report Offer Support to Rate Hike in December

123jump.com Staff
06 Nov, 2015
New York City

Market indexes on Wall Street lacked direction and net new jobs added in October increased 271,000. The strong job addition in the month supported the case for a rate hike at the next Fed meeting in December.

[R][12:45 PM New York City, New York – Market indexes on Wall Street lacked direction and net new jobs added in October increased 271,000. The strong job addition in the month supported the case for a rate hike at the next Fed meeting in December.[/R]

Market indexes on Wall Street meandered after the latest monthly jobs data showed a healthy increase supporting the rate hike scenario at the next meeting in December.

U.S. nonfarm payroll employment in October rose 271,000 and the unemployment rate held at 5% from September.

Employment in professional and business services, health care, retail trade, food services and drinking places, and construction increased in the month, the Department of Labor said.

On Wall Street, Tollbooth Strategy Index slid 8.02 to 11,086.07.

S&P 500 index fell 9.09 or 0.4% to 2,090.84 and the Nasdaq Composite Index edged up 2.30 to 5,130.04.

Crude oil in New York slid 79 cents to $46.84 a barrel and gold declined $16.43 to $1,087.49 an ounce.

U.S. Movers

Walt Disney Co ((DIS)) jumped 3% or $3.43 to $116.43 after the diversified entertainment and media group reported revenues in the fourth-quarter ending in September surged 9% from a year ago to $13.51 billion.

Net income in the quarter advanced 7.3% to $1.61 billion or 95 cents per diluted share compared to $1.5 billion or 86 cents per share from the same quarter last year.

European Markets

Market indexes across Europe traded lower and luxury stocks led the decliners after Richemont issued earnings warning.

The seasonally adjusted UK trade deficit in goods and services in September narrowed to £1.4 billion from £1.6 billion in August. Export prices in September rose 1.7% and import prices grew 0.9%.

Separately, the Office of National Statistics reported that production output in September rose 0.8% from August and jumped 1.1% from a year ago.

The U.K. economy approaches full employment and the labor market will tighten in the near future, according to Minouche Shafik, Bank of England Deputy Governor.

In London trading, FTSE 100 index slipped 12.68 or 0.2% to 6,352.22 and in Frankfurt the DAX index fell 15.00 or 0.14% to 10,872.74.

In Paris, CAC 40 index fell 42.09 or 0.85% to 4,937.95.

Allianz SE dropped 2.3% to €155.40 after the Germany-based financial services provider reported total revenues of €27.5 billion for the third-quarter ending in September, down 4.3% from a year ago to.

Net profit in the quarter declined 15.4% from a year ago to €1.36 billion compared to €1.61 billion and diluted earnings per share decreased to €2.98 from €3.52.

According to CFO Dieter Wemmer, the operating profit for the year is expected to grow at upper end of targeted range of €10 to €10.8 billion.”

ArcelorMittal SA increased 2.1% to €5.08 although the Luxembourg-based steel maker said sales in the third-quarter ending in September plunged 22.3% from a year ago to $15.6 billion.

Net in the quarter swung to a loss from a year ago to $711 million compared to profit of $22 million and diluted loss per share swung to a 40 cents from diluted profit of 1 cent.

ArcelorMittal said sales in Europe declined 20.8% to $7.67 billion on lower steel shipments in the region and total steel shipments dropped 2.1% to 21.1 million metric tons.

The company also suspended its dividend payment and cut its guidance for the full-year earnings before interest, taxes, depreciation and amortization or Ebtida to between $5.2 billion to $5.4 billion from a previous range of $6 billion to $7 billion.

Compagnie Financiere Richemont SA plummeted 9.1% to 78.75 Swiss francs after the owner of Cartier, Vacheron Constantin, and Montblanc warned of worsening outlook for the second half of the year.

Sales in the first-half ending in September soared 15% from a year ago to €5.82 billion.

Net profit in the quarter surged 22% from a year ago to €1.10 billion compared to €907 million and diluted earnings per share jumped to €1.95 from €1.60.

The company said strong sales through Maisons’ own boutiques offset mixed wholesale sales, which were particularly weak in the Asia Pacific region.

Asian Markets

Stocks in Tokyo closed higher for the third day in a row and the yen traded near recent weakness ahead of the U.S. jobs data.

The Nikkei 225 Stock Average jumped 149.19 or 0.9% to 19,265.60 and the broader Topix index increased 8.49 to 1,563.59.

For the week, Nikkei 225 jumped 2.3%.

The yen strengthened to 121.94 against a dollar.

Nikkei average in Tokyo gained for the third day in a row and the yen hovered near its recent one-week low. Olympus Corp said first-half net soared 60%. Aoyama Trading Co., Ltd and Aoki Holdings Inc advanced on higher first-half sales and earnings.

Asahi Kasei Corp edged up 0.3% to 734.40 yen after the chemical producer reported net sales in the first-half ending in September fell 1% from a year ago to 957.4 billion yen.

Net income in the period dropped 4.8% to 47.2 billion yen compared to 49.5 billion yen and diluted earnings per share slumped to 33.77 yen from 35.44 yen.

Sensex index in Mumbai edged lower and the index declined 1.5% in the week and State Bank of India reported 25% jump in earnings and bad loan ratio, a key indicator watched by investors, declined.

However, Bank of Baroda and Punjab National Bank reported rising bad loans.

Rupee weakened 1 paisa to 65.75 against one U.S. dollar.

The Sensex Index decreased 38.36 to close at 26,265.24. The CNX Nifty slid 1.15 to 7,954.30.

For the week, Sensex Index dropped 1.5% and CNX Nifty slipped 1.4%.

Sensex in Mumbai edged lower and extended weekly losses to 1.5%. State Bank of India, Bank of Baroda and Punjab National Bank said quarterly profit jumped.

M&M quarterly profit and revenues fall. Castrol India net rose 22%. Cipla net income surged 44%. Tata Steel net income jumped.