- Asian Stocks Climb on China Boost, Dollar Steady: Markets Wrap
Asian stocks advanced following a slew of positive headlines from China that supported sentiment. The dollar was steady as the clock ticks down to a tight US election. Chinese equity benchmarks rose about 2% to lead the region’s gains. Japan’s Nikkei 225 jumped following a public holiday, while shares in Australia and South Korea slipped. The Bloomberg Dollar Spot Index was flat and the 10-year Treasury yield advanced one basis point. - Dow closes down more than 200 points ahead of presidential election
Stocks stumbled on Monday as investors geared up for the U.S. presidential election and a potential Federal Reserve rate cut later this week. The Dow Jones Industrial Average slumped 257.59 points, or 0.61%, to close at 41,794.60. The S&P 500 dipped 0.28% to settle at 5,712.69, and the Nasdaq Composite dropped 0.33% to 18,179.98. Trading was choppy throughout the day. The Dow at one point fell more than 400 points, while the S&P 500 and Nasdaq shuffled between gains and losses. - Oil edges down ahead of U.S. election, China NPC meeting
Oil prices eased slightly on Tuesday as markets braced for uncertainties from the U.S. presidential election, after rising more than 2% in the past session as OPEC+ delayed plans to hike production in December and eased supply concerns. Brent crude futures fell 15 cents, or 0.2%, to $74.93 a barrel by 0106 GMT while U.S. West Texas Intermediate crude was at $71.33 a barrel, down 14 cents, or 0.2%. - Gold sluggish ahead of U.S. election and Fed meeting
Gold traded in a narrow range on Tuesday as investors stayed away from taking big positions ahead of the U.S. presidential election and the Federal Reserve policy meeting later this week. Spot gold ticked 0.1% down to $2,733.39 per ounce by 0225 GMT. Bullion hit a record high of $2,790.15 last week. U.S. gold futures edged lower by 0.1% to $2,742.40. Democratic candidate Kamala Harris and Republican candidate Donald Trump are nearly tied in opinion polls, leaving the outcome of the U.S. presidential race uncertain and potentially unconfirmed for days after voting ends. - Yen Is First of Many Japanese Assets Set to Pivot on US Election
A victory for Kamala Harris in the US presidential election has the potential to support Japan’s ailing currency while a win for Donald Trump would probably boost the Tokyo stock market and put the yen at risk of a deeper slump. That’s just two of the many possible market outcomes as investors and analysts sketch multiple scenarios for the trajectory of Japanese assets. - China Services Growth Picks Up More Than Expected After Stimulus
China’s service activity expanded at the fastest pace since July, a private survey showed, a sign that consumer demand may be on the mend after Beijing moved to shore up growth with a barrage of stimulus measures. The Caixin China services purchasing managers’ index rose to 52 in October from 50.3 the previous month, the biggest jump since March last year, Caixin and S&P Global said Tuesday. The pace of expansion exceeded a median forecast of 50.5 by economists. - South Korea Weighs Buying More US Oil and Gas If Trump Wins
South Korea is considering a plan to boost energy imports from the US if Donald Trump wins the election and steps up pressure on trade partners, according to people familiar with the matter. Officials in Seoul have spent months preparing for a Trump or Kamala Harris presidency, with greater risks expected for their trade-reliant country if Trump prevails, said the people, who asked not to be identified as discussions are private. - Australia’s central bank keeps rates unchanged at 4.35%
Australia’s central bank held its benchmark interest rate at 4.35% for the eighth meeting in a row. The Reserve Bank of Australia wrote in its statement that inflation has fallen substantially since the peak in 2022, but also added that underlying inflation is too high. As such, the bank’s forecasts also do not see underlying inflation returning sustainably to the midpoint of its 2%-3% target until 2026. - China reviews plan to increase local government debt
A closely watched meeting of China’s parliament on Monday reviewed a proposal to raise the local government debt limit, according to state media. New debt would go toward replacing hidden debt, the report said, noting that Finance Minister Lan Fo’an spoke at the meeting on the plan. The standing committee of China’s National People’s Congress is meeting this week and widely expected to approve further fiscal support for the country’s slowing economy. - Labor strikes shut down operations at Canada’s container ports from East to West Coast, with U.S. trade left in limbo
Ports of Vancouver and Prince Rupert are at a standstill after ILWU Local 514 walked off the job in a strike. The labor action comes on the heels of a strike at the Port of Montreal. In July 2023, 13-day strikes at these two West Coast ports impacted the delivery of U.S.-bound goods for months, from apparel to auto parts and key industrial chemicals. - North Korea fires multiple ballistic missiles toward the sea ahead of U.S. election
North Korea on Tuesday fired multiple short-range ballistic missiles toward its eastern sea, the South Korean military said, as the country continued its weapons demonstrations hours before the U.S. presidential election. South Korea’s Joint Chiefs of Staff said the missiles flew about 400 kilometers (250 miles) but didn’t specify how many were fired. Japanese Prime Minister Shigeru Ishiba said they landed in waters outside of Japan’s exclusive economic zone and there were no immediate reports of damage. The launches came days after North Korean leader Kim Jong Un supervised a flight test of the country’s newest intercontinental ballistic missile designed to reach the U.S. mainland. In response to that launch, the United States flew a long-range B-1B bomber in a trilateral drill with South Korea and Japan on Sunday in a show of force. That drew condemnation from Kim’s powerful sister, who on Tuesday accused North Korea’s rivals of raising tensions with aggressive and adventuristic military threats. - Harris, Trump Conclude Historic Campaign With Dueling Rallies
Donald Trump and Kamala Harris concluded one of the most tumultuous and dramatic presidential campaigns in modern political history with dueling rallies late Monday, capping a furious final dash through battleground states that will decide the 2024 race. Their closing arguments mirrored, in tone and in substance, the competing visions they have offered a deeply divided nation. Harris, speaking before a large and boisterous crowd gathered on the steps of Philadelphia’s art museum, declared the nation ready for a fresh start, ready for a new way forward. - Trump’s tariffs could trigger dramatic price spikes on clothes, furniture, warns retail group
Donald Trump’s universal tariff proposals could cause prices to skyrocket on clothing, toys, furniture, household appliances, footwear and travel goods, according to a new report from the National Retail Federation. Trump has said he would impose a 10% or 20% tariff on all imports across the board and a specifically high China rate between 60% and 100%. The NRF found that the impact of Trump’s tariffs would be dramatic, leading to double-digit percentage price spikes in nearly all six retail categories that the trade group examined. - Boeing’s strike ends after machinists approve new labor contract with 38% wage increases
Boeing’s more than 32,000 unionized machinists walked off the job on Sept. 13 after turning down a tentative labor agreement. Monday’s vote on a new labor deal was workers’ third since September. Boeing has raised more than $20 billion after the strike halted most of its production. - Marqeta shares plunge more than 30% on big forecast miss
Marqeta shares plummeted in extended trading on Monday after the company issued guidance that fell short of analysts’ estimates. The stock was already down 15% for the year prior to the report and has lost more than 80% of its value since peaking in 2021. Revenue for the third quarter came in just shy of estimates. - Palantir shares surge on rosy revenue outlook
Palantir shares jumped 13% in extended trading on Monday after the data analytics software maker reported robust third-quarter results and revenue guidance. Here’s how the company did compared with LSEG consensus estimates: Earnings per share: 10 cents adjusted vs. 9 cents expected, Revenue: $726 million vs. $701 million expected. We absolutely eviscerated this quarter, driven by unrelenting AI demand that won’t slow down, Palantir co-founder and CEO Alex Karp wrote in the company’s earnings release. Palantir’s revenue grew 30% year over year in the quarter. Net income of $143.5 million, or 6 cents per share, was up from $71.5 million, or 3 cents per share, in the same quarter a year ago. - Wynn misses third-quarter profit, revenue estimates on weak Las Vegas business
Wynn Resorts posted quarterly profit and revenue below Wall Street expectations on Monday, due to sluggish casino business in Las Vegas, sending its shares down 2.8% in extended trading. Revenue from its Las Vegas operations declined by 1.9% to $607.17 million, mainly due to a 13.6% year-over-year dip in casino revenue. This was partially offset by a 20% rise in entertainment, retail and other sales. - Goodyear Announces Q3 2024 Results, Increases Goodyear Forward Targets
Third quarter Goodyear net loss of $34 million (12 cents per share); adjusted net income of $105 million (37 cents per share). Segment operating income of $347 million; SOI margin of 7.2%, up ~70 bps YoY; Fourth consecutive quarter of SOI margin expansion; TTM up ~300 bps YoY; Americas segment operating income of $251 million, SOI margin of 8.8%. Asia Pacific segment operating income of $72 million, SOI margin of 11.7%. Goodyear Forward targets increased, portfolio optimization in progress. The management team will share insights on third quarter performance and progress on the Goodyear Forward transformation plan. As a result of the consistent and strong execution of our Goodyear Forward transformation plan, we successfully achieved four consecutive quarters of segment operating margin expansion. These tangible results are not only a testament to the talent of our team, but also to the strong foundation of Goodyear, said Chief Executive Officer and President Mark Stewart. Throughout the company, we are delivering solid results. Due to the strong momentum underway, we are increasing our target for gross run-rate gains from Goodyear Forward to $1.5 billion by the end of 2025. - Berkshire Hathaway’s Q3 Earnings and Revenues Decline Y/Y
Berkshire Hathaway (BRK.B) delivered third-quarter 2024 operating earnings of $10.1 billion, which decreased 6.2% year over year. The decrease was attributable to lower revenues coupled with higher costs. Revenues slipped 0.2% year over year to $93 billion, attributable to lower revenues at Insurance and Other as well as Railroad, Utilities and Energy. Costs and expenses increased 0.7% year over year to $81.2 billion, largely due to an increase in Insurance and Other expenses. Higher losses and loss adjustment expenses, insurance underwriting expenses, cost of leasing and selling, general and administrative expenses fueled the increase. The figure was lower than our estimate of $85.9 billion. Berkshire Hathaway’s Insurance and Other segment revenues increased 9.9% year over year to $26.7 billion in the reported quarter on the back of higher insurance premiums earned, leasing revenues and interest, dividend and other investment income. Insurance underwriting earnings increased 5.1% year over year to $5.6 billion. Railroad, Utilities and Energy operating revenues decreased 9.1% year over year to $23.9 billion, primarily due to lower utility and energy operating revenues. The figure was lower than our estimate of $28.6 billion. Pre-tax earnings of Railroad increased 83.6% year over year to $3.2 billion. Total revenues at Manufacturing, Service and Retailing decreased 0.8% year over year to $42.2 billion. Berkshire Hathaway’s operating earnings fell, and so did the company’s stock in Monday’s session. Both Class A and B shares were down a bit more than 2% in afternoon trading, while the S&P 500 was little changed. Warren Buffett’s company reported Saturday that operating earnings, a measure that excludes some investment results, fell to $10.1 billion from $10.8 billion last year. - Nvidia Replacing Intel on Dow Seen as Somewhat Ironic, Wedbush Says
Nvidia’s (NVDA) upcoming addition to the Dow Jones Industrial Average in place of Intel (INTC) is somewhat ironic, Wedbush Securities said Monday. Late Friday, S&P Global (SPGI) division S&P Dow Jones Indices said Nvidia will replace Intel on the Dow, effective Nov. 8, to “ensure a more representative exposure to the semiconductors industry.” Nvidia shares were up 2% in Monday afternoon trade, and have gained roughly 179% in value so far this year. Intel stock was down 2.5% intraday Monday, with its year-to-date loss reaching 55%.
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