Economy
Corporate Earnings News Remains in Spotlight on Wall Street
By Investors Hub
The major U.S. index futures are currently pointing to a modestly lower opening on Friday following the mixed performance seen in the previous session.
A mixed batch of earnings news may contribute to choppy trading on Wall Street as traders react to the latest quarterly results from several big-name companies.
Shares of Intel (INTC) are moving notably higher in pre-market trading after the semiconductor giant released its third quarter results.
Intel reported better than expected quarterly results, raised its full-year revenue guidance, and added $20 billion to its stock repurchase program.
Telecom giant Verizon (VZ) may also move to the upside after reporting third quarter results that beat analyst estimates on both the top and bottom lines.
On the other hand, shares of Amazon (AMZN) are likely to come under pressure, with the online retail giant slumping by 6.3 percent in pre-market trading.
The drop by Amazon comes after the company reported weaker than expected third quarter earnings and provided a disappointing forecast for holiday sales.
Strength among tech stocks contributed to a notable advance by the Nasdaq, although the Dow and the S&P 500 spent most of Thursday’s session lingering near the unchanged line.
The major averages eventually ended the day mixed, as the Dow closed modestly lower. While the Dow edged down 28.42 points or 0.1 percent to 26,805.51, the Nasdaq climbed 66.00 points or 0.8 percent to 8,185.80 and the S&P 500 rose 5.77 points or 0.2 percent to 3,010.29.
The tech-heavy Nasdaq benefited from a positive reaction to earnings news Microsoft (MSFT), with the software giant climbing by 2 percent.
After the close of trading on Wednesday, Microsoft reported quarterly results that exceeded analyst estimates, boosted by cloud and Office revenues.
Electric car maker Tesla (TSLA) also posted a standout gain on the day after reporting an unexpected third quarter profit.
Meanwhile, shares of Twitter (TWTR) came under pressure after the social media giant reported weaker than expected third quarter results and provided disappointing guidance.
A steep drop by shares of 3M (MMM) weighed on the day after the diversified manufacturer reported third quarter earnings that beat estimates but lowered its full-year earnings outlook.
Traders were also digesting a slew of U.S. economic data, including a report from the Commerce Department showing a steep drop in orders for transportation equipment contributed to a bigger than expected decrease in durable goods orders in September.
The Commerce Department said durable goods orders tumbled by 1.1 percent in September after rising by a revised 0.3 percent in August.
Economists had expected durable goods orders to decline by 0.8 percent compared to the 0.2 percent uptick that had been reported for the previous month.
Excluding the nosedive in orders for transportation equipment, durable goods orders dipped by 0.3 percent in September after climbing by 0.3 percent in August. Ex-transportation orders had expected to edge down by 0.2 percent.
A separate report from the Commerce Department showed new home sales pulled back in September after a sharp increase in the previous month.
The report said new home sales slid by 0.7 percent to an annual rate of 701,000 in September after spiking by 6.2 percent to a revised rate of 706,000 in August.
Economists had expected slump by 1.7 percent to a rate of 701,000 from the 713,000 originally reported for the previous month.
Meanwhile, the Labor Department released a report showing a modest decrease in first-time claims for U.S. unemployment benefits in the week ended October 19th.
The report said initial jobless claims dipped to 212,000, a decrease of 6,000 from the previous week’s revised level of 218,000.
Economists had expected jobless claims to inch up to 215,000 from the 214,000 originally reported for the previous week.
Gold stocks moved sharply higher over the course of trading session, driving the NYSE Arca Gold Bugs Index up by 3.4 percent. The spike by gold stocks came amid an increase by the price of the precious metal.
Significant strength was also visible among semiconductor stocks, which rebounded after falling sharply in the previous session. The Philadelphia Semiconductor Index surged up by 2.5 percent after tumbling by 1.9 percent on Wednesday.
The upbeat earnings news from Microsoft also contributed to a rally by software stocks, with the Dow Jones U.S. Software Index jumping by 2.2 percent.
On the other hand, oil service stocks saw substantial weakness on the day, dragging the Philadelphia Oil Service Index down by 1.6 percent. The sell-off came despite an increase by the price of crude oil.
Networking stocks also showed a notable move to the downside, with the NYSE Arca Networking Index falling by 1.5 percent.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange closed flat on Wednesday, August 5, as the market witnessed weaker trading activity with only two deals executed.
In the midweek session, the volume of securities exchanged by investors dropped 99.9 per cent to 802 units from the 1.6 million units recorded on Tuesday. The value of securities further decreased by 99.6 per cent to N208,240 from the preceding session’s N47.6 million, and the number of deals significantly went down by 93.9 per cent to two deals from the 33 deals recorded a day earlier.
Great Nigeria Insurance (GNI) Plc remained the most traded stock by value on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units sold for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 76.9 million units transacted for N5.5 billion.
GNI Plc was also the most active stock by volume on a year-to-date basis, with 3.4 billion units exchanged for N8.4 billion, followed by Infracredit Plc with 2.3 billion units traded for N6.5 billion, and Resourcery Plc with 1.1 billion units valued at N415.7 million.
There were no price gainers or losers yesterday.
As a result, the market capitalisation stood unmoving at N2.739 trillion, while the NASD Security Index (NSI) remained unchanged at 4,563.96 points.
By Adedapo Adesanya
The Naira slid against the US Dollar by N2.28 or 0.17 per cent in the Nigerian Autonomous Foreign Exchange Market (NAFEX) on Wednesday, August 5, to N1,363.85/$1 from N1,362.55/$1.
The local currency also declined against the Pound Sterling in the official market during the session by N5.97 to close at N1,837.38/£1 compared with Tuesday’s closing rate of N1,831.41/£1, and against the Euro, it crashed by N6.54 to quote at N1,575.25/€1 versus the preceding session’s N1,568.71/€1.
But at the black market, the Nigerian Naira traded flat against the greenback yesterday at N1,400/$1, and also remained unchanged at the GTBank FX desk at N1,373/$1.
The Central Bank of Nigeria (CBN) says rates have narrowed to below two per cent, while the country’s external reserves have risen above $52.5 billion, reflecting the impact of its ongoing monetary and foreign exchange reforms.
CBN Governor Yemi Cardoso, represented by the Acting Director of Corporate Communications and Investor Relations, Mrs Hakama Sidi-Ali, disclosed this on Tuesday during the CBN Fair in Gombe. He noted that reforms introduced since 2023 had significantly reduced the disparity between the official FX market and the parallel market.
“The Naira continues to strengthen, with the spread between official and Bureau de Change rates now below two per cent,” he said, adding that reserves at $52.5 billion were supported by sustained inflows and renewed investor confidence in the economy.
Interbank FX transactions slid as weaker market activities dropped total Dollar volume exchanged to $75.35 million, a 51.8 per cent decline from $156.23 million in turnover quoted at the previous close.
The deals at the NFEM window also fell as data from the central bank put Wednesday’s quote at 82 from 139.
In the cryptocurrency market, major were down as global risk sentiment softened as a key world equity index slipped and chipmakers fell.
The MSCI All Country World Index snapped a five-day run to fall 0.2 per cent as chipmakers retreated on both sides of the Pacific. South Korea’s Kospi, a bellwether for the AI trade, dropped 4.4 per cent.
Ripple (XRP) depleted by 1.7 per cent to $1.05, Binance Coin (BNB) decreased by 1.0 per cent to $594.87, Cardano (ADA) depreciated by 0.9 per cent to $0.1884, TRON (TRX) shrank by 0.2 per cent to $0.3261, Solana (SOL) crumbled by 0.1 per cent to $74.00, and Dogecoin (DOGE) went down by 0.1 per cent to $0.0697.
On the flip side, Ethereum (ETH) gained 2.3 per cent to trade at $1,911.41, and Bitcoin (BTC) rose by 0.8 per cent to $64,759.28, while the US Dollar Tether (USDT) and the US Dollar Coin (USDC) remained unchanged at $1.00 apiece.
By Dipo Olowookere
The domestic stock exchange rebounded by 0.05 per cent on Wednesday on the back of renewed bargain-hunting by investors, though the level of activity waned.
After bleeding for a few days, the Nigerian Exchange (NGX) Limited heaved a sigh of relief yesterday, as the All-Share Index (ASI) gained 109.41 points to close at 244,912.24 points compared with the previous day’s 244,802.83 points, and the market capitalisation garnered N71 billion to settle at N158.087 trillion versus Tuesday’s N158.016 trillion.
Business Post reports that despite the rebound recorded by Customs Street at midweek, the market breadth index remained negative, as there were 20 price advancers and 29 price decliners, implying bearish investor sentiment.
Linkage Assurance appreciated by 9.94 per cent to N1.77, AVA Capital rose by 9.55 per cent to N10.90, Fortis Global Insurance advanced by 7.69 per cent to N2.80, McNichols gained 7.34 per cent to finish at N5.85, and Coronation Insurance surged by 5.51 per cent to N2.49.
Conversely, Honeywell Flour depreciated by 9.94 per cent to N16.30, PZ Cussons gave up 9.94 per cent to trade at N74.75, Zichis crashed by 9.74 per cent to N20.76, Learn Africa slipped by 9.62 per cent to N9.40, and Neimeth tumbled by 8.33 per cent to N8.25.
The busiest equity was FCMB, with a turnover of 369.2 million units valued at N4.1 billion. Chams transacted 46.7 million units worth N201.8 million, First Holdco transacted 43.5 million units for N5.7 billion, Access Holdings sold 29.8 million units worth N778.0 million, and Linkage Assurance exchanged 19.6 million units valued at N33.5 million.
At the close of transactions, market participants bought and sold 824.1 million units worth N25.5 billion in 48,114 deals, in contrast to the 1.6 billion units sold for N28.7 billion in 54,160 deals a day earlier, showing a shortfall in the trading volume, value, and number of deals by 48.49 per cent, 11.15 per cent, and 11.16 per cent, respectively.
