1. On October 15th (Tuesday) before the U.S. stock market opened, the three major U.S. stock index futures fluctuated. As of press time, Dow futures were up 0.15%, S&P 500 index futures were up 0.03%, and Nasdaq futures were down 0.06%.
2. As of press time, the German DAX index was up 0.36%, the UK's FTSE 100 index was down 0.51%, the French CAC 40 index was down 0.80%, and the Euro Stoxx 50 index was down 0.35%.
3. As of press time, WTI crude oil was down 4.32%, trading at $70.64 per barrel. Brent crude oil was down 4.03%, trading at $74.34 per barrel.
Market News
Investor optimism sees the largest increase since June 2020, but Bank of America issues another "sell" signal! According to a survey of fund managers released by Bank of America on Tuesday, global investor optimism in October saw the largest increase since June 2020 due to the Federal Reserve's interest rate cuts, China's stimulus policies, and expectations of a soft landing for the U.S. economy. The survey, conducted from October 4th to October 10th, involved 231 fund managers who manage assets worth $574 billion. The survey showed that cash allocations fell from 4.2% in September to 3.9%, stock allocations rose to 31%, and bond allocations fell to 15%, a historical low. Bank of America stated, "Our broadest (fund manager survey) confidence indicator, based on cash levels, stock allocations, and economic growth expectations, rose from 3.8 to 5.6, marking the largest monthly increase since June 2020."
Advertisement
Deloitte: U.S. consumers plan to cut holiday gift budgets, posing new challenges for retailers. U.S. consumers have indicated that they will reduce spending on holiday gifts this year, dealing another blow to retailers who have been struggling with declining demand. A survey conducted by Deloitte on more than 4,000 respondents showed that the willingness to buy gifts has decreased by 3% compared to a year ago. However, shoppers have indicated that they will increase their total spending by 8% from October to December, with spending on experiences, decorations, and entertainment being the main drivers of growth. This suggests that retailers need to offer more promotions and discounts to attract shoppers who are still expected to face higher prices this Christmas. The report is similar to recent data from PwC, which believes that high prices have eroded consumer brand loyalty.
China's record high + European recovery, global electric vehicle sales surge by 30.5% in September. The latest data from market research firm Rho Motion shows that global sales of all-electric and plug-in hybrid vehicles in September increased by 30.5% year-on-year, with China's market sales reaching a new high and the European market also recovering growth. Despite a cooling global demand for electric vehicles and facing import tariffs as high as 45%, Chinese car manufacturers are still looking to expand their sales in the EU market. Specifically, global electric vehicle sales in September reached 1.69 million units, with China's market sales increasing by 47.9% to 1.12 million units, while the U.S. and Canadian markets increased by 4.3% to 150,000 units. In Europe, electric vehicle sales increased by 4.2% to 300,000 units, a growth driven by sales increases in the UK, Italy, Germany, and Denmark.
"Oil deciders" collectively turn pessimistic! IEA warns of "oversupply" of oil by 2025. The International Energy Agency (IEA) said on Tuesday that the global oil market will face a significant "oversupply" situation in the new year, namely 2025, and assured that the agency is ready to take action to address disruptions in Iranian oil supplies. The IEA's latest report means that one of the authoritative institutions in the energy field has publicly responded to the "oversupply" views of oil put forward by Wall Street giants such as Goldman Sachs and Morgan Stanley - that is, it is expected that from 2025, the oil market will face a situation where supply will continue to exceed demand. After the release of the IEA's latest report, the recently weak Brent crude futures prices plummeted by nearly 5%.
Stock News
The effect of the partnership with AT&T is evident, Ericsson (ERIC.US) Q3 earnings far exceed expectations. Swedish telecommunications equipment manufacturer Ericsson's third-quarter earnings exceeded market expectations, mainly due to the company's partnership with U.S. operator AT&T (T.US) beginning to show results. Ericsson's adjusted EBIT for the third quarter was 7.3 billion Swedish kronor ($699 million), far exceeding analysts' expectations of 5.6 billion kronor. The adjusted operating margin was 11.9%, while the market expected 8.5%. Due to operators reducing or postponing network investments, the telecommunications equipment market has experienced a difficult period in the past few quarters. Ericsson has taken proactive cost-cutting measures, including laying off thousands of employees, and signed a $14 billion contract with AT&T in December last year, winning investor confidence. As of Monday, Ericsson has累计 increased by 24% this year.Bank financial reports are impressive, and the sector is on the rise. Bank of America (BAC.US) reported net interest income of $25.3 billion after expenses in Q3, compared to $25.2 billion in the same period last year; net profit was $6.9 billion, compared to $7.8 billion in the same period last year. Goldman Sachs (GS.US) reported net earnings of $12.7 billion in the third quarter, compared to the estimated $11.77 billion; FICC sales and trading revenue was $2.96 billion in the third quarter, compared to the estimated $2.96 billion. Investment banking revenue was $1.86 billion in the third quarter, slightly above the estimated $1.68 billion. Net interest income was $2.62 billion in the third quarter, compared to the estimated $1.84 billion, exceeding expectations. The number of employees increased by 5% at the end of the third quarter compared to the end of the second quarter. Both Bank of America and Goldman Sachs rose by more than 2% before the market opened, and other bank stocks also strengthened.
UnitedHealth (UNH.US) reported better-than-expected third-quarter results and slightly adjusted its full-year guidance. UnitedHealth announced better-than-expected third-quarter results, but due to higher medical costs in the third quarter than expected by Wall Street, UnitedHealth Group lowered the upper limit of its full-year performance guidance. The company expects adjusted earnings per share for 2024 to be between $27.50 and $27.75, lower than the previous expectation of $27.50 to $28. UnitedHealth's Q3 revenue was $100.8 billion, a year-on-year increase of 9.1%, higher than the market expectation of $99.2 billion; adjusted earnings per share were $7.15, while analysts' average expectation was $6.99.
Johnson & Johnson (JNJ.US) reported better-than-expected third-quarter profits and lowered its full-year expectations to consider the acquisition of medical devices. Johnson & Johnson announced its third-quarter financial report on Tuesday, reporting higher-than-expected profits in Q3, driven by a surge in sales of the cancer drug Darzalex, while lowering its full-year expectations to account for a medical device acquisition transaction. According to a statement on Tuesday, the company's adjusted earnings per share were $2.42, exceeding Wall Street's expectation of $2.19. Drug sales increased by nearly 5%, exceeding analysts' expectations by more than $400 million, with sales of Darzalex, which treats multiple myeloma, surging by more than 20%.
Boeing (BA.US) signed a $10 billion credit agreement and submitted a $25 billion financing plan. Boeing signed a $10 billion credit agreement to seek support for its balance sheet and withstand the impact of a long-term strike that has closed its Seattle manufacturing center for a month. Boeing said in a statement on Tuesday that it will pay 0.5% of the total principal of each advance as a financing fee according to the agreement. Boeing's registration statement filed with the U.S. Securities and Exchange Commission also shows that it will raise up to $25 billion in funds by issuing various debt securities and stocks.