- Bridgette Randall
- 26 Oct, 2022
- Frankfurt
In volatile trading, European markets lacked direction ahead of the central bank's rate decision and rate-path direction.
The European Central Bank is widely expected to lift its key rate by 75 basis points after the policymaker's meeting on Thursday.
Despite the rising political pressure across the euro zone, the ECB is expected to increase rate by a large-size for the second time in a row and third time this year.
The current key lending rate of 75 basis points is lagging the 4-decade high inflation rate of above 10%.
Investors are also awaiting comments on when the ECB is likely to begin its process of selling government bonds after years of expanding its balance sheet dating as far back as euro crisis in 2011.
The DAX index increased 0.5% to 13,117.45, the CAC-40 index edged down a fraction to 6,249.64 and the FTSE 100 index dropped 0.5% to 6,980.23.
Brent crude edged up 67 cents to $97.10 a barrel and TTF natural gas rose 2% to
- Scott Peters
- 25 Oct, 2022
- New York City
Alphabet Inc declined 6% to $98.74 in after hours trading and the search engine operator said revenue in the third quarter increased 6% to $69.1 billion from $65.1 billion a year ago.
Net income in the period fell to $13.9 billion from $18.9 billion and diluted earnings per share dropped to $1.06 from $1.40 a year ago.
Chipotle Mexican Grill, Inc jumped more than 4% in after hours trading after the fast-food restaurant chain operator said revenue in the third quarter increased 13.7% to $2.2 billion and comparable restaurant sales increased 7.6%.
Net income in the third quarter was $257.1 million or $9.20 a diluted share compared to $204.4 million or $7.18 a diluted share a year ago.
Microsoft Corporation declined 1.5% to $246.02 after the company said fiscal first quarter ending in September increased 11% to $50.1 billion and net income decreased 14% to $17.6 billion from a year ago.
Diluted earnings per share declined 13% to $2.35 from a year ago.
Qualtrics International increased 0.3% to $11.40 after the company said revenue in the third quarter increased 39% to $377.5 million from $271.6 million a year ago.
Net loss in the quarter shrank to $233.5 million from $286 million and diluted loss per share fell to 40 cents from 56 cents a year ago.
The company guided fourth quarter revenue in the range between $380 million and $382 million and subscription revenue between $323 million and $325 million.
Texas Instruments dropped 5% to $153.50 after the chipmaker posted third quarter revenue increased 13% to $5.2 billion from $4.64 billion a year ago.
Net income increased 18% to $2.3 billion from $1.95 billion and diluted earnings per share rose to $2.47 from $2.07 a year ago.
The company guided fourth quarter revenue in the range of $4.40 billion to $4.80 billion and earnings per share between $1.83 and $2.11.
Visa Inc increased 1% to $196.63 after the payment processing network operator reported September quarter revenues increased 19% to $7.8 billion.
Net income rose 10% to $3.9 billion and diluted earnings per share increased 13% to $1.86.
Payment volume in the quarter increased 10% and processed transactions rose 12% from a year ago.
- Scott Peters
- 25 Oct, 2022
- New York City
Coca-Cola Company increased 0.9% to $58.08 after the beverage maker reported third quarter revenue increased 10% to $11.1 billion and comparable operating margin, excluding one-time items, fell to 29.5% from 30%.
Net income increased 14% to $2.8 billion from $2.48 billion and diluted earnings per share rose to 65 cents from 57 cents a year ago.
Coca-Cola said full-year 2022 earnings per share on a constant currency basis are estimated to grow between 15% and 16% and nominal earnings per share between 6% and 7% from $2.32 in 2021.
Corning Inc declined 3.5% to $21.23 after the engineered glass and advanced optics products maker said third quarter revenues declined 4% to $3.49 billion from $3.62 billion a year ago.
Net income in the quarter plunged 44% to $208 million from $371 million and diluted earnings per share dropped to 24 cents from 43 cents a year ago.
Sales were impacted by 28% decline in display glass sales for computing devices and dragged overall profitability.
The company guided fourth quarter revenue between $3.45 billion and $3.65 billion and core earnings per share (which excludes non-cash charges and currency hedging mark-to-market adjustments) between 41 cents and 47 cents.
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.
MSCI increased 3.6% to $426.05 after the investment and index information provider said revenue in the third quarter increased 8.4% to $560.6 million and net income rose 27.5% to $216.6 million from a year ago.
Diluted earnings per share increased to $2.68 from $2.03 a year ago.
Shutterstock Inc soared 12.7% to $51.72 after the online image marketplace operator said third quarter revenue increased 5% to $204.1 million and net income soared 44% to $23.0 million.
In the quarter, diluted earnings per share rose to 64 cents from 43 cents a year ago.
The company said weak revenue in Europe and currency headwinds are expected to hit full-year 2022 results.
Shutterstock lowered full-year revenue to $815 million, an increase between 5% and 9% in constant currency and adjusted diluted earnings per share in the range between $3.75 and $3.80.
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.
- 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.
- Scott Peters
- 25 Oct, 2022
- New York City
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.
- Bridgette Randall
- 25 Oct, 2022
- Frankfurt
European markets traded mixed after German business confidence fell less than expected. Energy prices continued to slide on China demand worries and looming recession.
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 German economy to contract by 0.6% in the fourth quarter.
A separate report showed 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.
Alfa Laval AB plunged 11% to 257.90 Swedish krona after the engineering company reported lower-than-expected third quarter earnings.
UBS Group AG increased 5.5% to 15.98 Swiss francs after the bank reported better-than-expected earnings.
HSBC Holdings plunged 6.9% to 442.14 pence after the U.K.-based bank reported larger-than-expected loan losses in it third quarter results.
- Barry Adams
- 24 Oct, 2022
- New York City
U.S. stocks extended last week's gains as investors await the latest batch of earnings and bond yields stayed near recent 14-year highs.
Apple, Inc, Alphabet, Amazon and Microsoft are among some 800 companies scheduled to release earnings this week.
Private survey showed the U.S. service sector contracted at the second fastest pace in October excluding the initial period of the coronavirus pandemic in 2020, according to S&P Global.
The PMI service index declined to 47.3 in October from 49.5 in September.
Any reading below 50 indicates contraction and above shows expansion.
Energy prices were volatile and natural gas prices recovered from multi-month lows.
Crude oil declined 45 cents to $84.51 a barrel and natural gas rose 52 cents to $5.91 a thermal unit.
The yield on 2-year Treasury notes increased to 4.50%, 10-year Treasury notes rose to 4.24% and 30-year Treasury bonds eased to 4.52%.
A narrow list of stocks enjoyed favor among investors with AutoZone, Genuine Parts Company and O'Reilly Auto traded at record highs.
CarMax, Crown Castle, Estee Lauder and Tesla closed at new 52-week lows.
On Wall Street, China linked stocks took a beating after the Chinese Communist Party appointed Xi Jinping for the third term, increasing the risk of stricter control on tech giants.
Alibaba, Baidu and Tencent Holdings dropped more than 11% and Pinduoduo plunged 24.5%.
China political reshuffle also heightened investor anxieties and companies with significant China business also closed down.
Starbucks Corporation fell 4.8% and the coffee chain operates more than 6,000 locations in China.
Casino operators Las Vegas Sands Corp dropped 10.6% to $34.92 and Wynn Resorts, Limited declined 3.6% to $56.61.
Tesla Inc declined 0.9% to $211.90 after the electric vehicle maker rolled back some of recent price increases in China
Tesla slashed starting price for the Model 3 Sedan to 265,900 renminbi ($36,615) from 279,900 renminbi ($38,553)
Tesla also lowered the starting price for the Model Y sports utility vehicle to 289,900 renminbi (39,931) from 316,900 renminbi (43,650).
European Indexes Jump 2%
The DAX index advanced 1.6% to 12,931.45, the CAC-40 index gained 1.6% to 6,131.35 and the FTSE 100 index increased 0.6% to 7,013.99.
The euro fell to 98.78 U.S. cents and the British pound edged up to $1.13.
Brent crude oil fell 23 cents to $93.22 a barrel and TTF natural gas declined 12.7% to $99.17 per MWh.
The yield on 10-year German bunds fell to 2.32%, French bonds eased to 2.86%, Italian bonds declined to 4.57% and the UK bonds to 3.72%.
Philips Electronics NV dropped as much as 5% but recovered to close down 2.2% to
- Arjun Pandit
- 24 Oct, 2022
- Mumbai
Rishi Sunak won the leadership race for the Conservative Party after Penny Mordaunt pulled out of the race just two minutes before the deadline and tweeted that Sunak had "her full support."
Former prime minister Boris Johnson dropped out of the race on Sunday night, paving the way for Sunak to lead the party.
Sunak, 42-year old, will become 57th Britain's prime minister and the youngest to lead the nation in more than 200 years.
Ironically, Sunak won the leadership race on Diwali, the festival of lights, celebrated by millions around the world and marks the triumph of good over evil and light over darkness.
Sunak was born in Southampton, UK and his Indian descent parents migrated to the UK in 1960s.
His father Yashvir was born in Kenya and his mother Usha, in Tanzania.
Sunak is the first British-Indian and Hindu to become prime minister of the U.K. and the leader of the Conservative Party, as the party and the island nation embrace cultural diversity after centuries of policies supporting racial divide.
Sunak's astonishing rise to lead the party in just seven years was marked by his appointment as Chancellor of the Exchequer by Johnson just before the Covid pandemic.
Sunak won praise both from labor unions and businesses for launching the furlough scheme by subsidizing 11.6 million jobs.
But his support for the "eat out to help out" policy drew severe criticism from some health experts for fueling the spread of the deadly virus.
As finance minister, Sunak racked up government borrowing by
- Bridgette Randall
- 24 Oct, 2022
- Frankfurt
European markets traded higher and investors digested two private economic surveys and political developments in the region.
Economic activities in the eurozone declined deeper into recessionary territory in October, according to S&P Global.
The PMI index dropped to 47.1 in October from 48.1 in September, the survey showed.
In a separate report, the UK private sector activities declined to 47.2 in October from 49.1 in September, the S&P Global/CIPS Composite indicated.
Major averages accelerated gains following the rise in New York and the British pound held stable and UK gilt yields edged down after the election of Rishi Sunak as the next prime minister.
Sunak is the first British-Indian and Hindu to become prime minister of the U.K. and the leader of the Conservative Party, as the party and the island nation embrace cultural diversity after centuries of policies supporting racial divide.
Sunak Wins UK PM Race, Meloni Appointed Italian PM
Rishi Sunak won the leadership race for the Conservative Party after Penny Mordaunt pulled out of the race just two minutes before the deadline and tweeted that Sunak had "her full support."
Former prime minister Boris Johnson dropped out of the race on Sunday night, paving the way for Sunak to lead the party.
Giorgia Meloni was sworn in as Italy's first woman prime minister on Saturday.
European Indexes Jump 2%
The DAX index advanced 1.8% to 12,965.60, the CAC-40 index gained 1.9% to 6,148.85 and the FTSE 100 index 7,018.39.
The euro fell to 98.38 U.S. cents and the British pound edged up to $1.13.
Brent crude oil gained $1.23 to $92.30 a barrel and TTF natural gas declined 18% to $94.80 per MWh.
The yield on 10-year German bunds fell to 2.32%, French bonds eased to 2.86%, Italian bonds declined to 4.59% and the UK bonds to 3.81%.
Philips Electronics NV dropped as much as 5% but recovered to close down 2.2% to
- Barry Adams
- 24 Oct, 2022
- New York City
U.S. stocks opened higher on Monday following a week of volatile trading and bond yields edged lower.
Energy prices turned lower and natural gas prices dropped to a new 3-month low on weakening demand and falling exports to Europe.
Crude oil declined $2.12 to $82.91 a barrel and natural gas fell 7 cents to $4.87 a thermal unit.
The yield on 2-year Treasury notes rose to 4.49%, 10-year Treasury notes fell to 4.18% and 30-year Treasury bonds eased to 4.32%.
European Markets Advance, Bond Yields Ease
European markets traded higher and investors digested two private economic surveys and political developments in the region.
Economic activities in the eurozone declined deeper into recessionary territory in October, according to S&P Global.
The PMI index dropped to 47.1 in October from 48.1 in September, the survey showed.
In a separate report, the UK private sector activities declined to 47.2 in October from 49.1 in September, the S&P Global/CIPS Composite indicated.
Sunak Wins UK PM Race, Meloni Appointed Italian PM
In political developments, Rishi Sunak won the leadership race for the Conservative Party after Penny Mordaunt pulled out of the race two minutes before the deadline and tweeted that Sunak had "her full support."
Former prime minister Boris Johnson pulled out of the race on Sunday night, paving the way for Sunak to lead the party.
Giorgia Meloni was sworn in as Italy's first woman prime minister on Saturday.
The DAX index advanced 1.8% to 12,965.60, the CAC-40 index gained 1.9% to 6,148.85 and the FTSE 100 index 7,018.39.
The euro fell to 98.38 U.S. cents and the British pound edged up to $1.13.
Brent crude oil gained $1.23 to $92.30 a barrel and TTF natural gas declined 18% to $94.80 per MWh.
The yield on 10-year German bunds fell to 2.32%, French bonds eased to 2.86%, Italian bonds declined to 4.59% and the UK bonds to 3.81%.
China GDP Expansion Slows, Xi Jinping Wins Historic Third Term
China's third quarter GDP rose 3.9%, better-than-expected 3.4%, according to the National Bureau of Statistics of China.
For the first nine-months of 2022, GDP has expanded 3%, less than the target rate of 5.5% set by the government.
The latest economic release did not mention the government target rate and was delayed until the Chinese Communist Party Congress ended.
Xi Jinping was appointed as the head of the party for the third time, matching only to the tenure of the founder Mao Zedong.
Tech Stocks Plunge in China Trading, Korea Supports Bond Market
The Nikkei 225 average increased 0.3% to 26,974.90, the Hang Seng index plunged 6.4% to 15,180.69 and Shanghai Composite Index dropped 2.0% to 2,977.56.
Chinese market indexes plunged after Xi Jinping tightened his grip on power and tech stocks led the decliners. Alibaba, Tencent and Baidu plunged more than 11% on the worries that stricter policies for tech companies may hamper growth.
Markets in India were closed to celebrate Diwali and the arrival of new year tomorrow.
The Kospi index in Seoul, Korea gained 1.0% to 2,236.16 after the government offered credit market support of 50 trillion won or $34.7 billion, providing a temporary relief from bond market defaults and support real estate sector.
- Barry Adams
- 21 Oct, 2022
- New York City
Stocks staged a sharp rebound on Wall Street on the hopes that the Federal Reserve may slow the pace of future rate hikes and avoid economic recession.
The Federal Reserve is widely expected to lift rates by 75 basis points at the next meeting ending on November 2.
In recent days Fed officials have also carried out a campaign with a hawkish tone suggesting that the rates may rise above 4.75% and stay there for a while until the inflation drops to the Fed's target rate of 2%.
The wide gulf between the Fed's target inflation rate of 2% and the current rate above 8% has also stoked the fears that the central bank may not be able to avoid a recession.
However, in today's trading stocks staged a rebound on the hope that the Fed may try to avoid a recession and not continue its aggressive rate hike campaign.
The S&P 500 index rose 2.4% to 3,752.75 and the Nasdaq Composite jumped 2.3% to 10,859.72.
For the week, the S&P 500 increased 4.7% and the Nasdaq Composite added 5.8%.
Major averages registered best weekly gains since June.
Crude oil increased 48 cents to $84.98 a barrel and natural gas fell 36 cents to $4.98 a thermal unit.
The yield on 2-year Treasury notes decreased to 4.58%, 10-year Treasury notes eased to 4.28% and 30-year bonds fell to 4.34%.
On the earnings front, American Express declined 2% despite reporting higher-than-expected quarterly earnings and lifting annual outlook.
Snap Inc plunged 28.2% after the social media company reported $1.12 billion in revenues, lower than expected, but adjusted quarterly earnings of 8 cents a share.
Verizon dropped 4.5% after the wireless communication company reported smaller-than-expected post-paid net subscribers.
CSX Corp rose 1.7% after the railroad operator posted better-than-expected earnings on higher shipping volumes and improvement in freight rates.
European Markets Extend Gains, Rate and Recession Worries Linger
European markets traded lower on the ongoing worries of looming recession and rising bond yields.
The UK retail sales fell 1.4% in September following the revised 1.7% decline in August, the Office for National Statistics said Friday.
A separate report showed a slight improvement in consumer confidence in October despite soaring inflation and political chaos.
The confidence index improved to -47 in October from -49 in September, showed the survey from the market research group GfK released Friday.
The DAX index rebounded from the loss of 2% to 0.3% to 12,730.90 the CAC-40 index fell 0.9% to 6,035.39 and the FTSE 100 index advanced 0.4% to 6,969.73.
For the week, the DAX index increased 2.4%, the CAC-40 index gained 2.6% and the FTSE 100 index gained 2.1%.
The euro held stable near 98.05 U.S. cents and the British pound declined to $1.1203.
Brent crude oil gained $1.18 to $93.55 a barrel and TTF natural gas futures declined 10.3% to 114.0 euros a MWh.
The yield on 10-year German bunds rose to a new 11-year high of 2.43%, French bonds to 2.98%, the UK Gilts to 4.05% and Italian bonds to 4.76%.
Adidas AG declined 9.5% to
- Bridgette Randall
- 21 Oct, 2022
- Frankfurt
European markets traded lower on the ongoing worries of looming recession and rising bond yields.
The UK retail sales fell 1.4% in September following the revised 1.7% decline in August, the Office for National Statistics said Friday.
A separate report showed a slight improvement in consumer confidence in October despite soaring inflation and political chaos.
The confidence index improved to -47 in October from -49 in September, showed the survey from the market research group GfK released Friday.
The DAX index rebounded from the loss of 2% to 0.3% to 12,730.90 the CAC-40 index fell 0.9% to 6,035.39 and the FTSE 100 index advanced 0.4% to 6,969.73.
For the week, the DAX index increased 2.4%, the CAC-40 index gained 2.6% and the FTSE 100 index gained 2.1%.
The euro held stable near 98.05 U.S. cents and the British pound declined to $1.1203.
Brent crude oil gained $1.18 to $93.55 a barrel and TTF natural gas futures declined 10.3% to 114.0 euros a MWh.
The yield on 10-year German bunds rose to a new 11-year high of 2.43%, French bonds to 2.98%, the UK Gilts to 4.05% and Italian bonds to 4.76%.
Adidas AG declined 9.5% to
- Scott Peters
- 21 Oct, 2022
- New York City
American Express Company fell 5.4% to $134.84 and the company said third quarter revenues increased 24% to $13.6 billion driven by 21% increase in card member spending.
Net income in the quarter increased 3% to $1.88 billion from $1.83 billion and diluted earnings per share rose to $2.47 from $2.27 a year ago.
Travel and entertainment spending surged 57% from a year ago and international spending increased beyond pre-pandemic levels for the first time both on a nominal and constant-dollar basis.
CSX Corp rose 1% to $27.35 after the railroad company posted stronger-than-expected third quarter revenues and earnings on higher shipping volume and improved freight rate.
Third quarter revenue increased 18% to $3.9 billion driven by higher fuel surcharge, pricing gains, a 2% increase in volumes, and an increase in storage and other revenues.
Net income increased 15% to $1.1 billion from $968 million and diluted earnings per share rose to 52 cents from 43 cents a year ago.
Schlumberger NV advanced 8.4% to $49.50 after the company said third quarter revenues increased 28% to $7.5 billion.
International revenue increased 26% to $5.9 billion and 37% increase in North America revenue to $1.5 billion.
Net income increased to $919 million from $562 million and diluted earnings per share advanced to 63 cents from 39 cents a year ago.
Higher prices and improvements in operating leverage drove the gains in the quarter.
Snap Inc plunged 30.4% to $7.52 after the social media company reported weaker-than-expected third quarter revenue of $1.13 billion and higher-than-expected adjusted profit of 8 cents a share.
The stock plunged after the company guided no increase in advertising revenue in the current quarter. The forecast also dragged down Meta Platforms by 2.5%, Twitter by 4% and Pinterest by 7.5%.
Tenet Healthcare Corp plunged 30.5% to $37.80 after the company said third quarter revenue edged down to $4.8 billion from $4.49 billion a year ago.
Net income in the quarter declined to $131 million from $448 million and diluted earnings per share fell to $1.16 from $4.12 a year ago.
Same hospital admissions declined 5.3%, outpatients visits dropped 6.9%, emergency room visits eased 4.1% and hospital surgeries dropped 3.6%.
The company lowered its full-year net income outlook in the range between $366 million and $441 million from between $371 million and $546 million released during the second quarter results.
Verizon Communications Inc declined 4.5% to $35.33 after the wireless communication company said third quarter consolidated revenues increased 4% to $34.2 billion on 10% increase in wireless revenues.
Net income in the quarter dropped 23.3% to $5.0 billion.
In the quarter, the company added 2.6 million wireless postpaid and added 61,000 broadband wireline connections.
The company guided wireless services revenue in the full-year 2022 to grow between 8.5% and 9.5%.
Whirlpool fell 0.2% to $130.65 after the company said third quarter sales declined 12.8% to $4.78 billion from $5.5 billion a year ago.
Net income in the quarter dropped to $143 million from $471 million and diluted earnings per share fell to $2.61 from $7.51 a year ago.
The company guided full-year revenue to be down 9% to $20.1 billion and lowered diluted earnings per share to $5.0 from between $9.50 and $11.50.
- Barry Adams
- 21 Oct, 2022
- New York City
Stocks turned higher after early morning doldrums as investors weighed the latest batch of mixed earnings and rising bond yields.
The Federal Reserve is widely expected to lift rates by 75 basis points at the next meeting ending on November 2.
In recent days Fed officials have also carried out a campaign with a hawkish tone suggesting that the rates may rise above 4.75% and stay there for a while until the inflation drops to the Fed's target rate of 2%.
The wide gap between the Fed target inflation rate of 2% and the current rate above 8% has also stoked the fears that the Fed may not be able to avoid a recession.
The S&P 500 index rose 1.2% to 3,710.30 and the Nasdaq Composite jumped 0.9% to 10,706.58.
Crude oil increased 68 cents to $85.13 a barrel and natural gas fell 36 cents to $4.99 a thermal unit.
The yield on 2-year Treasury notes decreased to 4.54%, 10-year Treasury notes eased to 4.23% and 30-year bonds fell to 4.31%.
On the earnings front, American Express plunged 7% despite reporting higher-than-expected quarterly earnings and lifting annual outlook.
Snap Inc plunged 25% after the social media company reported $1.12 billion in revenues, lower than expected, but adjusted quarterly earnings of 8 cents a share.
Verizon dropped 6% after the wireless communication company reported smaller-than-expected post-paid net subscribers.
CSX Corp rose 0.3% after the railroad operator posted better-than-expected earnings on higher shipping volumes and improvement in freight rates.
European Markets Down On Inflation Worries
European markets traded lower on the ongoing worries of looming recession and rising bond yields.
The UK retail sales fell 1.4% in September following the revised 1.7% decline in August, the Office for National Statistics said Friday.
A separate report showed a slight improvement in consumer confidence in October despite soaring inflation and political chaos.
The confidence index improved to -47 in October from -49 in September, showed the survey from the market research group GfK released Friday.
The DAX index rebounded from the loss of 2% to 0.4% to 12,710.71, the CAC-40 index fell 1% to 6,026.81 and the FTSE 100 index advanced 0.3% to 6,964.97.
For the week, the indexes in the region are set to close up between 1% and 2.5%.
The euro held stable near 98.05 U.S. cents and the British pound declined to $1.1203.
Brent crude oil gained $1.18 to $93.55 a barrel and TTF natural gas futures declined 10.3% to 114.0 euros a MWh.
The yield on 10-year German bunds rose to a new 11-year high of 2.44%, French bonds to 2.99%, the UK Gilts to 4.09% and Italian bonds to 4.78%.
Asian markets generally closed lower on the worries that the rising bond yields and falling local currencies are likely to slow down the economies in the region.
The Bank of Japan conducted its second emergency operations in as many days after the yield on Japanese bonds rose above the target rate 0.25%.
Moreover, consumer price inflation in Japan rose to a 8-year high in September of 3.0%, the Ministry of Internal Affairs and Communications said Friday.
The Nikkei index eased 0.4% to 26,890.58, the Hang Seng Index dropped 0.4% to 16,211.12 and the Sensex index increased 0.2% to 59,307.15.
For the week, the Nikkei declined 0.9%, the Hang Seng fell 2.3% and the Sensex index advanced 2.4%.
Stocks in Mumbai retained upward bias for the sixth day in a row after positive earnings supported cautiously optimistic market sentiment.
- Brian Turner
- 20 Oct, 2022
- New York City
Existing home sales in September fell 1.5% to 4.71 million annual rate, the lowest rate in 2022 and dropped to the level not seen since September 2012, excluding the onset of coronavirus in 2020.
Home sales declined for the eighth month in a row as mortgage rates continue to escalate and home prices remain elevated across the nation.
Home sales fell 23.8% from a year ago.
The median existing home sale price in the month was $384,800, an increase of 8.4% from a year ago and the inventory of unsold homes declined for the second month in a row to 1.25 million, according to the report released by the National Association of Realtors.