Economy
Disappointing Earnings News Weigh on US Stocks
By Investors Hub
The major U.S. index futures are pointing to a modestly lower opening on Wednesday, with stocks likely to extend the pullback seen late in the previous session.
A negative reaction to earnings news from big-name companies like Boeing (BA) and Caterpillar (CAT) may contribute to initial weakness on Wall Street.
Boeing and Caterpillar both reported weaker than expected third quarter earnings, with Caterpillar also cutting its full-year outlook due to weak demand for construction and mining equipment.
Disappointing guidance from Texas Instruments (TXN) may also weigh on tech stocks, as the chipmaker cited the impact of ongoing uncertainty about trade.
Overall trading activity may be somewhat subdued, however, with a lack of major U.S. economic data keeping some traders on the sidelines.
Traders may look ahead to the release of reports on durable goods orders, new home sales, and weekly jobless claims on Thursday.
Further developments on the Brexit and U.S.-China trade deal fronts could also have a significant effect on the markets as the day progresses.
Meanwhile, Ford (F), Microsoft (MSFT), and Tesla (TSLA) are among the companies due to report their quarterly results after the close of trading.
Stocks turned in a lackluster performance throughout much of the trading day Tuesday but came under pressure in the latter part of the session. The major averages all pulled back into negative territory, with the tech-heavy Nasdaq showing a notable drop.
After ending the previous session at its best closing level in a month, the Nasdaq slid 58.69 points or 0.7 percent to 8,104.30. The S&P 500 also pulled back off a one-month closing high, falling 10.73 points or 0.4 percent to 2,995.99, while the Dow dipped 39.54 points or 0.2 percent to 26,788.10.
The late-day pullback may have reflected renewed uncertainty about Brexit after U.K. lawmakers voted to move forward with legislation related to Britain’s withdrawal from the European Union but then voted against a shortened time frame to review the bill.
Members of Parliament narrowly voted against the limited time frame, which would have provided just three days to evaluate the legislation.
The vote suggests lawmakers will not meet an October 31st deadline, setting the stage for another extension by the EU to avoid a no-deal Brexit.
The choppy trading seen earlier in the session came as traders digested the latest batch of earnings news, with mixed results from some big-name companies pulling the markets in opposite directions.
Shares of McDonald’s (MCD) came under pressure after the fast food giant reported third quarter results that missed analyst estimates on both the top and bottom lines.
Delivery giant UPS (UPS) also saw notable weakness after reporting third quarter earnings that beat expectations but on weaker than expected sales.
Meanwhile, shares of Procter & Gamble (PG) moved notably higher after the consumer products giant reported better than expected fiscal first quarter results.
Fellow Dow component United Technologies (UTX) also moved to the upside after reporting third quarter results that beat estimates and raising its full-year guidance.
On the U.S. economic front, the National Association of Realtors released a report showing existing home sales pulled back by much more than anticipated in the month of September.
NAR said existing home sales plunged by 2.2 percent to an annual rate of 5.38 million in September after jumping by 1.5 percent to an upwardly revised 5.50 million in August.
Economists had expected existing home sales to drop by 0.7 percent to a rate of 5.45 million from the 5.49 million originally reported for the previous month.
Despite the pullback by the broader markets, most of the major sectors ended the day showing only modest moves.
Software stocks showed a significant move to the downside, however, with the Dow Jones U.S. Software Index slumping by 1.8 percent.
The index continued to give back ground after ending last Tuesday’s trading at it best closing level in well over two months.
On the other hand, energy stocks moved notably higher, benefiting from a sharp increase by the price of crude oil.
Reflecting the strength in the energy sector, the Philadelphia Oil Service Index surged up by 2.4 percent and the NYSE Arca Oil Index and the NYSE Arca Natural Gas Index rose by 1.4 percent and 1.2 percent, respectively.
By Aduragbemi Omiyale
The Debt Management Office (DMO) on Monday allotted bonds worth N929.3 billion to investors from the N1.7 trillion bids it received from subscribers.
The exercise, which took place on Monday, July 20, 2026, was oversubscribed by market participants, reflecting the confidence investors have in the government’s ability to redeem the debt instrument on maturity.
On offer for sale for the July auction was N1.2 trillion worth of the FGN bonds, but the DMO allotted below this, despite receiving bids above the offer.
The papers were offered in 10-year, 15-year, and 20-year tenors, at N400 billion each.
For the decade-old note, investors staked N444.47 billion, but the debt office sold N245.73 billion at an 18.34 per cent coupon rate. For the one and a half-decade-old paper, bids valued at N518.00 billion were received by the DMO, with a non-competitive bid of N50.00 billion, with N302.13 billion allotted to investors at 18.40 per cent, and for the two-decade paper, the DMO got competitive bids of N665.19 billion and N381.46 billion was sold to bondholders at 18.35 per cent.
By Adedapo Adesanya
The Governor of the Central Bank of Nigeria (CBN), Mr Yemi Cardoso, disclosed that Nigeria’s external reserves had risen to $52.5 billion, enough to finance about nine months of imports.
He disclosed this on Tuesday at the end of the 306th meeting of the Monetary Policy Committee (MPC) held in Abuja, where the Monetary Policy Committee (MPC) retained the benchmark interest rate at 26.50 per cent as well as the standing facilities corridor at +50/-450 basis points around the MPR.
Similarly, the Cash Reserve Requirement (CRR) was maintained at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
Speaking on FX developments, the central banker said at the $52 billion level, the country’s external reserves were significantly above the internationally recommended threshold of three months of import cover.
On the Naira exchange rate, Mr Cardoso said the foreign exchange market had deepened and was now operating on a transparent willing-buyer, willing-seller basis.
He said the apex bank remained committed to maintaining a liquid and functional foreign exchange market, adding that daily market turnover sometimes exceeded $1 billion.
According to him, the long-term stability of the naira would depend on key economic fundamentals, including increased oil exports, foreign direct investment, and improved domestic productivity to reduce dependence on imports.
He also added that the MPC welcomed the federal government’s renewed commitment to stronger policy coordination, particularly collaboration between fiscal and monetary authorities, which he said had helped reduce the impact of the Middle East crisis on the Nigerian economy.
Mr Cardoso said members of the committee also commended efforts to improve crude oil production and urged relevant agencies to intensify reforms in other sectors, including solid minerals, to boost government revenue.
On the regulatory forbearance granted to banks during the COVID-19 period, he reiterated that this had been discontinued because it had served its purpose.
According to him, the policy had “outlived its time” and was no longer necessary in assessing the health of the banking sector.
“Forbearance, we felt, had outlived its time. Many of you will recall this is something that came as a result of COVID. And now we are in 2026; we did not see the reason why that should continue to form part of the analysis of the banking system,” he said.
Mr Cardoso explained that banks had begun recalibrating their portfolios following the end of the policy, leading to a temporary reduction in outstanding risk assets.
He, however, assured that the development was part of a transition towards a stronger and more sustainable credit environment.
“It reflects a transition to a more sustainable and better quality credit environment, which is what we all want. We don’t want unanticipated shocks that come in a boom-and-bust fashion,” he said.
By Adedapo Adesanya
The NASD Over-the-Counter (OTC) Securities Exchange extended its recent positive run by 1.17 per cent on Tuesday, July 21, triggered by appreciation seen in four bellwethers.
Leading the pack was FrieslandCampina Wamco Nigeria Plc, which added N12.00 to its value to close at N153.15 per share compared with the previous day’s N141.15 per share. NASD Plc appreciated by N1.90 to N36.00 per unit from N34.10 per unit, Food Concepts Plc improved by 23 Kobo to N2.48 per share from N2.25 per share, and Afriland Properties Plc grew by a marginal 1 Kobo to N15.01 per unit from N15.00 per unit.
As a result, the market capitalisation of the bourse increased by N30.40 billion to N2.637 trillion from Monday’s N2.606 trillion, and the NASD Security Index (NSI) gained 50.70 points to finish at 4,393.97 points, in contrast to the 4,343.27 points it ended a day earlier.
The unlisted securities exchange recorded a price loser yesterday, and it was Geo-Fluids Plc, which shed 1 Kobo to settle at N2.30 per share versus N2.31 per share.
During the trading day, the volume of securities traded by market participants on Tuesday dropped 99.4 per cent to 322,147 units from the previous day’s 52.6 million units, the value of securities dipped by 89.8 per cent to N19.4 million from the preceding session’s N191.2 million, and the number of deals contracted by 3.6 per cent to 27 deals from 28 deals.
Great Nigeria Insurance (GNI) Plc ended the day as the most traded stock by value on a year-to-date basis, with 3.4 billion units traded for N8.4 billion, followed by Infrastructure Credit Guarantee (Infracredit) Plc with 2.3 billion units transacted for N6.5 billion, and Central Securities Clearing System (CSCS) Plc with 75.4 million units exchanged for N5.3 billion.
GNI Plc also closed the day as the most traded stock by volume on a year-to-date basis, with 3.4 billion units worth N8.4 billion, followed by Infracredit Plc with 2.3 billion units valued at N6.5 billion, and Resourcery Plc with 1.1 billion units sold for N415.7 million.
