United States
Company news left equities slightly higher despite the averages fading into the close. The Dow Jones industrial average gained a fractional 0.04 percent and the S&P 500 rose 0.2 percent to eke out new record highs. The NASDAQ firmed 0.1 percent.
Among sectors, best were utilities, energy, and real estate, while lagging were industrials and communications services. Communications were depressed by Facebook, which dropped 3.9 percent on fallout from changes in Apple mobile technology on Facebook ad revenues.
Megacaps Amazon, up 1.7 percent, Microsoft, up 0.6 percent, Google, up 1.4 percent, outperformed as long end yields fell and on expectations for upbeat earnings. Energy stocks got a boost from rising oil prices.
Among big names reporting, Hasbro, the toymaker, gained 3.2 percent after a huge earnings beat. United Parcel Service advanced 7.0 percent after an earnings beat and better guidance. Sherwin Williams, the paint company, rose 2.0 percent after topping revenues expectations. S&P Global, the financial information player, rose 3.7 percent after an earnings beat.
These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose 65 cents to US$86.39 while spot gold fell US$13.07 to US$1,793.70. The US dollar was mixed vs. major currencies. Yields on the US Treasury 30-year bond fell 4 basis points to 2.05 percent, and the 10-year note was down 2 basis points at 1.62 percent.
Europe
Favorable earnings news drove equities higher with travel & leisure, insurance, and real estate leading. The Europe-wide STOXX 600, the French CAC, and the UK FTSE 100 all rose 0.8 percent while the German Dax gained 1.0 percent.
Among companies in focus, Finnair rose 3.6 percent to lead airlines higher after reporting better traffic over the summer. Whitbread, the UK hospitality company, gained 4.2 percent after saying business conditions are recovering faster than expected. Among banks, UBS rose 1.3 percent on positive trading results. Novartis, the pharma, rose 1.1 percent after an earnings beat. Reckitt Benckhiser, the health products supplier, rose 5.8 percent on surging sales.
On the downside, energy and basic resources lagged as commodities prices slipped. Orange, the telecom, fell 1.7 percent on a profits miss. SKSB, the manufacturer, dropped 7.6 percent on an earnings miss.
Asia Pacific
Asian equities mostly tracked US markets higher with Japan outperforming. China lagged, however, after a missed debt payment by another Chinese developer, Modern Land, weighed on sentiment, as did with new increases in Chinese Covid cases.
China's CSI 300 index and the Shanghai composite both eased 0.3 percent. Tech and telecom stocks outperformed while property stocks lagged, along with health care and agriculture. Hong Kong's Hang Seng index eased 0.4 percent.
Property stocks slipped after Modern Land became the latest developer to report missing a debt payment on its dollar debt. Also hurting property stocks are plans for new property taxes.
Meanwhile, South Korea's KOSPI gained 0.9 percent and Taiwan's Taiex benchmark rose 0.8 percent with support from big tech stocks. SK Hynix, the South Korean semiconductor giant, rose 2.0 percent on strong quarterly results.
Japanese markets rallied on tech stock strength on Wall Street and expectations for bullish earnings. Opinion polls suggesting better prospects for the ruling government coalition bolstered risk appetite. The Nikkei 225 index rose 1.8 percent and the broader Topix was up 1.2 percent, with gains nearly across the board. Among sectors, shipping, iron & steel, transportation equipment, and pharma led the winners.
Australian equities retreated from initial gains on concern about China's economy. Stocks ended nearly unchanged with the All Ordinaries index up 0.1 percent. Sectors were mixed with tech and gaming stocks outperforming while materials, energy, and consumer staples, and industrials lagged.
Looking ahead*
In Asia/Pacific, New Zealand merchandise trade, Australian CPI, and Chinese industrial profits figures are scheduled. In Europe, German Gfk consumer climate, French PPI, and Eurozone M3 figures are due. In North America, reports on durable goods, international trade in goods, US retail and wholesale inventories, and the Bank of Canada policy announcement are on tap.
