Stocks Hover Near Record High as Earnings Roll In: Markets Wrap

(Bloomberg) — Stocks hovered near all-time highs as solid earnings from big banks offset a slide in energy producers.

Goldman Sachs Group Inc. and Bank of America Corp. climbed at least 1.5% after posting better-than-estimated results. Nvidia Corp. fluctuated on a news report that Biden administration officials have discussed capping sales of advanced AI chips from the company and other American firms on a country-specific basis. Oil plummeted after a report that Israel may avoid targeting Iran’s crude infrastructure eased concerns over a major supply disruption.

The S&P 500 rose 0.1%. The Nasdaq 100 rose 0.2%. The Dow Jones Industrial Average fell 0.6%. The yield on 10-year Treasuries declined five basis points to 4.05%. West Texas Intermediate crude fell 5% to $70.12 a barrel.

Corporate Highlights:

• Charles Schwab Corp. reported earnings per share that topped analyst estimates and said it cut some of its expensive debt.
• PNC Financial Services Group Inc. pulled in more net interest income than analysts expected in the third quarter, another period of sequential growth for the bank’s biggest source of revenue as the firm continues to predict a record haul next year.
• Boeing Co. prepared to raise much as $25 billion in debt and equity, giving the troubled planemaker the financial resources to withstand a paralyzing strike and work its way through a series of operational setbacks.
• Johnson & Johnson reported stronger-than-expected third-quarter earnings, driven by surging sales of cancer medicine Darzalex.
• Walgreens Boots Alliance Inc. plans to close 14% of its US store fleet as part of ongoing strategy to cut costs as consumers pull back spending.
• UnitedHealth Group Inc. lowered the top end of its forecast, a rare move for the insurance giant that has often withstood pressures that hurt its competitors.
• After a volatile summer, ASML Holding NV investors are hoping that its earnings report will underline the chip equipment maker’s strong credentials as an artificial intelligence trade with further to run.

Key events this week:

• Morgan Stanley earnings, Wednesday
• ECB rate decision, Thursday
• US retail sales, jobless claims, industrial production, Thursday
• Fed’s Austan Goolsbee speaks, Thursday
• China GDP, Friday
• US housing starts, Friday
• Fed’s Christopher Waller, Neel Kashkari speak, Friday

Some of the main moves in markets:

Stocks

• The S&P 500 rose 0.1% as of 9:35 a.m. New York time
• The Nasdaq 100 rose 0.2%
• The Dow Jones Industrial Average fell 0.6%
• The Stoxx Europe 600 fell 0.2%
• The MSCI World Index was little changed

Currencies

• The Bloomberg Dollar Spot Index was little changed
• The euro was little changed at $1.0911
• The British pound rose 0.3% to $1.3093
• The Japanese yen rose 0.4% to 149.13 per dollar

Cryptocurrencies

• Bitcoin rose 0.2% to $66,034.07
• Ether fell 0.6% to $2,605.35

Bonds

• The yield on 10-year Treasuries declined five basis points to 4.05%
• Germany’s 10-year yield declined five basis points to 2.22%
• Britain’s 10-year yield declined six basis points to 4.18%

Commodities

• West Texas Intermediate crude fell 5% to $70.12 a barrel
• Spot gold was little changed

This story was produced with the assistance of Bloomberg Automation.

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