This is the busiest week of the quarter for S&P 500 earnings, with eyes on five of the “Magnificent Seven” companies are reporting results, while in the bigger picture investors are dealing with tensions in the Middle East and the upcoming US elections on November 5, followed closely by the Federal Reserve's policy-setting meeting. It's no wonder that the sessions ahead will be volatile. Meanwhile, bitcoin is approaching a record high, while in theXNUMX-XNUMX business days the increase in the duties on electric vehicles built in China.
The Nasdaq hit a new high at the close and the S&P 500 also closed higher, while the Dow closed lower as investors digest a slew of corporate data. A, the first of the so-called “Magnificent Seven” large-cap technology stocks to report quarterly results yesterday, posted revenue that beat estimates, which should help keep optimism high about the tech and artificial intelligence which has driven indices to record levels this year.
The Nasdaq Composite rose 0,78% to 18.712,75, beating its previous record close in July. The S&P 500 rose 0,16% to 5.832,97, while the Dow Jones Industrial Average fell 0,36% to 42.233,05. Among sectors, communications services, which include Alphabet and Meta, were the biggest gainers, while utilities fell 2,1%. Investors were swamped by a deluge of corporate earnings. Gains were limited by the US Treasury yield The 10-year yield hit 4,3% for the first time since early July.
Worth mentioning is the parent company of Vans which jumped 27% after the apparel company reported its first profit in two quarters. Ford tumbled 8,4% a day after the automaker said it expected to hit the low end of its annual profit forecast. Advanced Micro Devices (AMD) fell 7% after a lackluster revenue forecast. Amazon (+ 1,28%) and Microsoft (+ 1,26%)
On the macro side, yesterday's survey Jolts Department of Labor's September job vacancies stood at 7,44 million, below estimates of 8 million, according to a Reuters poll. The index also showed consumer confidence stood at 108,7 in October, above the estimate of 99,5.
Alphabet Jumps 6% in After-Market Trading
A, the parent company of Google said last night, after the close of US trading, that his investments in'artificial intelligence are “bearing fruit” by signalling a del% increase 35 in its business cloud, while election-related spending in the United States increased advertising sales on YouTube in the third quarter. The Alphabet shares rose nearly 6% in after-market trading on Tuesday. Shares of Amazon and Microsoft, major cloud companies, rose about 1% after the stock market closed. Alphabet beat expectations for third-quarter revenue and earnings. Its core business Search jumped 12%, as did YouTube ad revenue. The company continues to invest heavily in artificial intelligence. Its new CFO, Anat Ashkenazi, on her first analyst call, said Alphabet’s capital expenditures in 2025 will be higher than this year. In the third quarter, Alphabet’s capex increased 62% to $13 billion. The fourth quarter should be similar, she said.
Chinese stocks weak, while Tokyo up 1,5% awaits BoJ
Asian stocks are mostly down, weighed down by weakness in China, while here too there is nervousness in view of the American elections which could have enormous repercussions on the world's second largest economy, despite Beijing stepping up its efforts to support growth.
Their rose to an all-time high of $2.784,82 an ounce. The Bitcoin has touched a record high as markets weigh the prospect of a victory for Republican candidate Donald Trump.
The benchmark lists in the China continental and Hong Kong fell by more than 1%. Reuters reported that Chinese authorities are weighing approving 10 trillion yuan ($1,4 trillion) in additional loans in the coming years to support the economy and address local government debt risks. Eyes on a meeting of China's top legislature Nov. 4-8, where further fiscal stimulus could be announced.
The index Nikkei 225 of the Tokyo Stock Exchange rises by 1,50%, continuing the bullish streak highlighted by three consecutive gains, triggered last Monday. The Japanese market, which discounts the political instability of the recent elections, is already betting on the intervention of the Bank of Japan tomorrow, Thursday, while support also comes from the recent weakness of the yen and earnings in the sector technological USA. Consumer sentiment deteriorates Japanese consumers with the index standing at 36,2 points in October from 36,9 in September and below analysts' expectations for a limited decline to 36,7 points.
European stocks seen weak, flooded with macro and corporate data
European stock markets are seen opening weakly awaiting key data on GDP and inflation in the member countries of the Eurozone: The future on the Eurostoxx50 marks a -0,16%. Instead, US futures are rising (+0,13% on the Dow Jones and +0,24% on the S&P500). The Milan stock exchange closed down yesterday, Ftse Mib -0,3%. Amplifon and Edison are expected to attend the quarterly test.
French. Growing more than expectedeconomy French in the 3rd quarter of 2024. According to the preliminary reading released by the French National Statistical Institute (INSEE), the GDP, in the three months to September, would have recorded a growth of 0,4% above the +0,3% of the consensus and the +0,2% recorded in the previous quarter. On an annual basis, the growth of the French gross domestic product stands at 1,3%, strengthening compared to the +1% indicated in the previous three months. However, household consumption expenditures recorded a modest growth of 0,1%, still in line with expectations, after the stronger +0,4% recorded in the previous quarter. This morning the data on the GDP of of the euro zone in the third quarter (estimated +0,2% quarter-on-quarter, unchanged from September). Spain expected at +0,6% versus +0,8% in the second quarter), Germany (estimated -0,1% unchanged from the second quarter), Italy (estimated +0,2%, unchanged from the second quarter). Also expected are inflation data in Germany and Spain.
Monte Paschi Bank The Ministry of Economy and Finance has decided to proceed with a sale of a share on the market in order to reduce its share to below 20% from the 26,7% currently controlled, writes the CourierA 10% sale, which would take place after the presentation of the third quarter accounts, would generate around 640 million at current prices and would remove the constraints that Brussels had imposed after the entry of public capital with the 2017 increase.
Campari closed the third quarter with declining sales and margins and expects the persistent unfavorable economic cycle to continue to impact full-year results, expecting a gradual improvement starting in 2025. Barclays, JP Morgan and Bernstein have cut their target prices.
In the nine months, sales were equal to 2,27 billion, +2,1% organic, but -1,4% in the third quarter. EBIT-adjusted at 499 million, -4,2% organic (-18,2% in the third quarter.
Getting very yesterday marked a new 12-month low.
Leonardo. Former Finnish President Sauli Niinisto today presents the new report for the future of EU defense. In his plan, which will be added to the reports of former prime ministers Enrico Letta and Mario Draghi to guide the new course of the von der Leyen Commission, he proposes to increase EIB investments dedicated to defense, as well as allocating a portion of the EU budget to security and inviting member states to contribute a greater share of their GDP to the mission of making Europe safer and ready to face global threats.
Moncler closed the first nine months of the year with consolidated revenues of 1,8657 billion euros, up 3% y/y (+6% at constant exchange rates). The Moncler brand recorded revenues of 1,5733 billion (+5% y/y, +8% at constant exchange rates), while Stone Island recorded -6% y/y (-5% at constant exchange rates) to 292,4 million euros. In Asia, growth was 6% (+11% at constant exchange rates), but -2% at constant exchange rates in the third quarter, due to a more difficult macroeconomic context that affected consumer confidence and a normalization of tourist flows in Japan. EMEA for the brand recorded a +5% (+6% at constant exchange rates) in the nine months, with a decrease of 3% at constant exchange rates in the third quarter alone. The Chinese cluster grew in the third quarter, although not as much as in previous quarters, supported by purchases by Chinese tourists in Japan. The Korean and Japanese clusters were negative, the European and American ones more or less flat” year on year, Luciano Santel, chief corporate and supply officer of the group, stated during the conference call.
JP Morgan cuts target price.
stellantis. Brussels has swung the axe of duties on electric cars made in China. The EU decision effectively opens a trade war that alarms German car manufacturers with strong roots in China and instead finds favor with Paris, which supports a move seen as "crucial to protect Europe's interests". The new EU duties are 7,8% for Teslas produced in Shanghai, 17% for Byd, 18,8% for Geely and 35,3% for Saic. For the other groups that have collaborated in the antitrust investigation, Brussels will be more lenient, with a 20,7% surcharge compared to the 35,3% valid for all companies that are reluctant.
Lottomatica closed the third quarter with an adjusted net profit of 55,3 million euros, up 16,8 million compared to the corresponding period of 2023, revenues of 485,6 million (+30%) and an adjusted EBITDA of 165,8 million (+30%).
