Stocks Inch Higher On Positive Earnings Reports, Oil Eases

Barry Adams
25 Oct, 2022
New York City

Stocks on Wall Street extended gains in pre-market trading after mixed earnings and energy prices eased. 

Crude oil declined $1.13 to $83.57 a barrel and natural gas eased 5 cents to $5.15 a thermal unit. 

The yield on 2-year Treasury notes edged lower to 4.47%, 10-year Treasury notes declined to 4.17% and 30-year bonds fell to 4.33%. 

Home price increase cooled in August according to the controversial  S&P CoreLogic Case-Shiller Home Price Index.

The home price index eased to 13% in August after rising 15.6% in July. 

General Motors Company edged up 3.5% to $37.10 after the company reaffirmed its fiscal 2022 earnings outlook and reported better-than-expected third quarter earnings. 

GM said third quarter earnings increased to $3.31 billion from $2.42 billion and diluted earnings per share rose to $2.25 from $1.62 a year ago. 

Revenues in the quarter soared 56.4% to $41.89 billion from $26.78 billion a year ago and said rising electric vehicles increased its market share to 8%. 

GM said Chevrolet Bolt EV and Bolt EUV production is scheduled to increase to 100,000 from 44,000 this year. 

GM estimated fiscal 2022 earnings between $9.6 billion and $11.2 billion, and earnings per share between $5.76 and $6.76.

JetBlue Airways Corporation fell 4% after the discount carrier posted quarterly profit on the back of strong travel demand despite higher operating costs. 

JetBlue said third quarter revenue increased 30% to $2.56 billion and profit of $57 million. 

The New York-based airline said it has hedged about 27% of its fuel consumption in the fourth quarter. 

United Parcel Service, Inc rose 2.5% after the company reported mixed third-quarter results. 

The parcel delivery company said third quarter revenue increased 4.2% to $24.16 billion and earnings of $2.58 billion or $2.96 diluted earnings per share. 

The company also guided full-year 2022 revenue around $102 billion and capital expenditure around $5.0 billion, dividend of $5.2 billion and stock repurchase of $3.0 billion. 

 

European Markets Trend Lower, Oil & Gas Fall 

European markets traded mixed after German business confidence fell less than expected. 

The Ifo Business Climate index declined to 84.3 in October from revised 84.4 in September, Ifo institute said Tuesday. 

The index dropped to the low last seen in May 2020, during the early period of the coronavirus pandemic. 

Ifo also estimated the German economy to contract by 0.6% in the fourth quarter. 

A separate report showed the UK manufacturing outlook worsened according to the latest report from the Confederation of British Industry.

The order book balance declined to -4 in October from -2 in September according to the monthly survey released by the association Tuesday. 

New orders in the quarter to October declined on the fall in domestic orders to -8% from +11% and the largest fall in export orders since the quarter ending in July to -18% from -2%.      

Wholesale prices in Spain rose at a slower pace of 35.6% in September from the upwardly revised 42.9% in August, the National Statistics Institute of Spain reported Tuesday. 

The DAX index dropped 0.8% to 12,831.67, the CAC-40 index increased 0.4% to 6,156.92 and the FTSE 100 index dropped 0.9% to 6,952.39. 

Brent crude oil declined to the level last seen in March on the demand worries and slowing economic activities in China. 

Brent crude oil declined $1.15 to $92.10 a barrel and TTF natural gas increased 1.7% to 100,16 euros a MWh.