European stocks retreated as companies that missed expectations outweighed those that exceeded expectations. The ESTX 50 (-0.36%), UK markets (-0.20%), CAC 40 (-0.48%) and the Dax (-0.10%) all posted losses in early trading. Pearson dropped nearly -10% after saying it expected earnings to be at the bottom end of its range due to lower enrolments at some colleges in the United States and lower school text book purchases in some parts of South Africa. Credit Suisse fell -2.8% after announcing plans for two capital increases to raise just over 6 billion Swiss francs after posting third quarter net profit of 779 million francs, compared with a predicted 921 million francs in a Reuters poll.
US stocks declined as a drop in healthcare and biotech stocks offset gains. The Dow Jones Industrial Average (-0.08%), S&P 500 (-0.14%) and the Nasdaq Composite (-0.50%) all decreased. The S&P healthcare sector fell 1.5%, while the Nasdaq Biotech Index dropped 3.2% amid concerns about pricing. IBM dropped -5.7% after reporting a bigger than expected decline in quarterly revenue and cut its full year profit forecast. United Technologies rose +3.9% after reporting results that beat analysts’ expectations, giving the Dow its biggest boost. Verizon advanced +1.2% after reporting better than expected revenue and profit. Tesla dropped -6.6% after Consumer Reports magazine found that advanced duel saving technology and digital multimedia systems in vehicles including the Tesla Model S sedan are hurting reliability.
Asian stocks rose, led by gains in Japanese shares, amid optimism that weak trade data will spur the Bank of Japan into boosting its stimulus program. The Nikkei 225 (+1.91%) and the S&P/ASX 200 (+0.24%) both advanced, while the Hang Seng (-0.37%) retreated. LG Electronics Inc surged +14% in Seoul after General Motors said it chose the South Korean firm as a partner in developing its Chevrolet Bolt electric vehicle. Toyota Motor Corp and Honda Motor Co, who get more than three quarters of sales outside Japan, rose more than +2% each in Tokyo. Yasakawa Electric Corp jumped +9.2% after reporting second quarter profit that beat analyst estimates.
Morning Spread 8th March 2017 European shares traded flat this morning, the modest moves masking significant results driven games by several companies on a bust day for European earnings.
Morning Spread 2nd November 2016 Asian stocks followed global equities lower despite gauges of manufacturing in China topping estimates and the Bank of Japan maintained its record stimulus program.
Morning Spread 1st November 2016 Asian stocks were mixed as declines in oil prices dragged energy shares lower and investor anxiety grew over next week’s US presidential election.
Morning Spread 28th October 2016 Asian stocks fell as oil explorers pushed down Hong Kong gauges, while investors digested earnings from several companies.
Morning Spread 27th October 2016 US stocks were mixed following the release of earnings from several companies.
Morning Spread 24th October 2016 US stocks were little changed as a record day for Microsoft and earnings from McDonald’s helped offset a fall in energy and healthcare shares.
Morning Spread 19th October 2016 Asian shares rose as a barrage of Chinese data confirmed the economy had stabilised on the back of government spending and a hot housing market, even if worries about debt continue to mount.
Morning Spread 10th October 2016 Asian stocks were mixed following the second US presidential debate between Hilary Clinton and Donald Trump.
Morning Spread 5th October 2016 Most Asian stocks outside Japan slid on concern central banks will reduce stimulus, while the Nikkei climbed after the yen weakened.
Morning Spread 27th September 2016 Asian stocks advanced with investors viewing Democratic candidate Hillary Clinton as having gotten the upper hand in the first US presidential debate.