United States
Dip-buying among growth stocks that sold off Wednesday helped equities recover a bit of ground Thursday, but sectors were mixed and the market faded into the close. The Dow Jones industrial average declined 0.4 percent, the S&P 500 rose 0.1 percent, and the NASDAQ gained 0.5 percent.
Growth stocks led the winners after selling off on rising bond yields Wednesday, with technology and consumer discretionary leading. Growth stocks were not obliged to contend with rising rates on Thursday as US bond markets were on holiday.
Bargain-hunting in semiconductor stocks, plus upbeat earnings from fintechs Sofi Technologies, up 13 percent, and Opendoor Technologies, up 16 percent, helped growth stocks recover. Rivian, the electric vehicles phenomenon, rallied another 22 percent on top of Wednesday's 29 percent jump. EVgo, the charging station business, surged 25 percent as EV stocks stayed hot.
Energy and materials advanced with help from rising commodities prices. Consumer-facing stocks had a good day, with Dillard's, the retailer, up 10 percent after a big earnings and revenues beat. Tapestry, the luxury fashion retailer, rose 8.4 percent on surging sales. On the downside, defensive stocks lagged, with weakness in utilities, real estate, health care, and consumer staples.
The Dow lagged with a big weight from Walt Disney, down 7 percent on disappointing results, including lower-than-expected revenues from its streaming services. Other weak Dow stocks included Honeywell, down 2 percent, and Visa, down 2.4 percent.
These price data reflect observations at 4:00 PM US ET: Dated Brent spot crude oil rose 3 cents to US$82.60 while spot gold rose US$11.16 to US$1,862.97. The US dollar rose for a second consecutive day vs. major currencies. US Treasury yields were unchanged as US bond markets were on holiday.
Europe
Basic resources helped equities end higher as rising commodities prices lifted miners. The Europe-wide STOXX 600 rose 0.3 percent, the German DAX firmed 0.1 percent, the French CAC gained 0.2 percent, and the UK FTSE 100 gained 0.6 percent.
Commodities gained on hopes for better Chinese demand after reports that troubled property developer China Evergrande had dodged default by making payment on some of its dollar debt. BHP, the huge miner, rose 5.0 percent to help UK stocks outperform. ArcelorMittal, the steel giant, up 3.7 percent, boosted the sector after an earnings beat.
Among other sectors, construction & materials, technology, and banks outperformed, while lagging were travel & leisure, retail, oil & gas, and autos & parts.
Among companies in focus, Siemens, the German industrial conglomerate, rose 2.7 percent after topping earnings expectations despite supply disruptions. Delivery Hero, the food deliverer, gained 3.2 percent on a revenues beat. On the downside, Johnson Mathey, the chemicals and auto parts business, dropped 19 percent after saying it will stop making batteries for electric vehicles. Wacker Neuson, the German construction equipment maker, fell 10 percent after an analyst downgrade.
Asia Pacific
Equities were mixed with Chinese markets outperforming the region on strength in the property sector, offset in part by fallout from rising interest rate yields after an upside surprise in US inflation data.
Chinese markets got a boost from news that China Evergrande made a batch of debt payments, plus reports the People's Bank of China may ease debt standards to facilitate purchases of distressed real estate. Risk assets also liked news suggesting a better tone to US-China relations after the two sides pledged to cooperate on climate change and scheduled online summit talks.
China's CSI 300 index gained 1.6 percent and the Shanghai composite rose 1.2 percent. Among sectors, real estate and financials rallied while utilities and health care lagged.
Hong Kong's Hang Seng index tracked mainland markets to gain 1.0 percent with property stocks and financials advancing as health care slipped. Separately, Taiwan's Taiex benchmark declined 0.6 percent as tech and other growth stocks slipped on rising interest rates.
Japanese major stock indexes improved with support from favorable earnings and a weaker yen, plus relief over the China Evergrande debt payments. Japan's Nikkei 225 rose 0.6 percent and the Topix rose 0.3 percent. Most sectors rose with metals, warehousing, banks, and autos leading while natural resources lagged. Among companies in focus, Toyota Motor rose 1.2 percent and electronics maker Sharp rose 1.1 percent. Separately, South Korea's KOSPI declined 0.2 percent as tech stocks lagged.
Rising bond yields on inflation worries and a surprising drop in Australian employment hurt Australian equities with the All Ordinaries index down 0.5 percent. Most sectors fell with tech and health care off the most. Energy lagged as liquefied natural gas fell again, and bank stocks led financials lower. On the positive side, materials got a boost from as recovery in iron ore futures.
In economic data, Australian payrolls declined by 47,000 in October, in contrast with expectations centering on a gain of 50,000. Unemployment rose to 5.2 percent vs. the 4.8 percent the market expected. Separately, Japanese producer prices surged by 8.0 percent on the year in October after rising 6.4 percent in September. The increase was much stronger than the median economist forecast of a 7.4 percent rise and the largest since 1981.
Looking ahead*
In Asia/Pacific, Hong Kong GDP, Indian CPI and Indian industrial production figures are scheduled. In Europe, the following are due: Eurozone industrial production and Swiss producer and import prices. In North America, US consumer sentiment and US JOLTs reports are on tap.
