Stock Market News (European Open) – US indices again in record highs while Europe heads towards mixed close
October 13, 2017 3:28 pm
US indices were again trading in record-high territory on Friday as the Dow was up by around 0.2% to 22,882 and the S&P 500 was up by 0.1% at 2,553. The Nasdaq Composite was also up by 0.3%.
In Europe, the picture was more mixed as a little before the close, the Stoxx 600 was up by nearly 0.2% but London’s FTSE 100 was down by a roughly similar amount. The main corporate story in Europe was the purchase of Bayer’s seeds and herbicide’s business by chemicals maker BASF for the amount of 7 billion dollars. Bayer managed to gain around a percent following the news while BASF was lower by around a third of a percent.
The beginning of the earnings season in the United States featured some of the country’s most prominent financial companies. Bank of America managed to beat estimates by reporting earnings per share of $0.48 versus $0.45 as higher interest rates benefitted profitability while the Bank managed to keep costs under control at the same time. Bank of America shares were down by almost 1 percent in early trading. Citigroup and JPMorgan also managed to beat earnings estimates during the previous day.
On the other hand, Wells Fargo posted a significant drop in earnings, as the bank faced legal problems over its mortgage and sales practices. Despite the firm’s dominant position as a mortgage lender and the improving housing market in the US, Wells Fargo’s revenue fell by 2%. The bank’s shares were down by almost 4% in early New York trading.
In economic news, retail sales posted a strong month-on-month increase but slightly missed expectations while both headline and core inflation managed to come in a little below analyst forecasts. Headline inflation was strong during September partly as a result of the hurricanes that hit the South and Southeastern United States. The preliminary University of Michigan consumer sentiment came in much stronger-than-expected, showing the strength of the consumer in the US.
Corporate earnings are likely to keep investors busy next week, with analysts being optimistic that companies will post healthy growth in profitability.
US indices were again trading in record-high territory on Friday as the Dow was up by around 0.2% to 22,882 and the S&P 500 was up by 0.1% at 2,553. The Nasdaq Composite was also up by 0.3%.
In Europe, the picture was more mixed as a little before the close, the Stoxx 600 was up by nearly 0.2% but London’s FTSE 100 was down by a roughly similar amount. The main corporate story in Europe was the purchase of Bayer’s seeds and herbicide’s business by chemicals maker BASF for the amount of 7 billion dollars. Bayer managed to gain around a percent following the news while BASF was lower by around a third of a percent.
The beginning of the earnings season in the United States featured some of the country’s most prominent financial companies. Bank of America managed to beat estimates by reporting earnings per share of $0.48 versus $0.45 as higher interest rates benefitted profitability while the Bank managed to keep costs under control at the same time. Bank of America shares were down by almost 1 percent in early trading. Citigroup and JPMorgan also managed to beat earnings estimates during the previous day.
On the other hand, Wells Fargo posted a significant drop in earnings, as the bank faced legal problems over its mortgage and sales practices. Despite the firm’s dominant position as a mortgage lender and the improving housing market in the US, Wells Fargo’s revenue fell by 2%. The bank’s shares were down by almost 4% in early New York trading.
In economic news, retail sales posted a strong month-on-month increase but slightly missed expectations while both headline and core inflation managed to come in a little below analyst forecasts. Headline inflation was strong during September partly as a result of the hurricanes that hit the South and Southeastern United States. The preliminary University of Michigan consumer sentiment came in much stronger-than-expected, showing the strength of the consumer in the US.
Corporate earnings are likely to keep investors busy next week, with analysts being optimistic that companies will post healthy growth in profitability.
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