U.S. equities charged forward in another session of outsized swings Tuesday, extending a comeback that kicked off a busy week of big-name third-quarter earnings reports.
The S&P 500 (^GSPC) advanced 1.2%, though after paring gains from a sharper move higher earlier in the session, while the Dow Jones Industrial Average (^DJI) added around 340 points, or 1.1%. The technology-heavy Nasdaq Composite (^IXIC) closed up 0.9%.
Sentiment got a boost Tuesday on third-quarter results from Goldman Sachs (GS) — Wall Street’s premier investment bank — which posted earnings that beat analyst estimates across the board despite challenging year-over-year comparisons. Shares closed roughly 2% higher.
In an interview with CNBC, CEO David Solomon warned that there was a “good chance” the U.S. economy may enter a recession next year.
“That environment heading into 2023 is one that you’ve got to be cautious and prepared for,” he said.
Goldman Sachs is the last of the country’s six megabanks to unveil results. Despite better-than-feared figures from some names in financials that gave stocks a boost Monday, the banking industry has reported a year-over-year earnings decline of 13% for the third-quarter, driven primarily by increased provisions for loan losses to prepare for a possible recession, according to FactSet Research. Wall Street’s big banks are bellwethers of the U.S. economy and typically set the tone for the earnings season.
Elsewhere on the corporate front, shares of Carnival (CCL) bounced nearly 11% after Carnival Holdings, a subsidiary of the cruise operator, announced it will offer $1.25 billion of senior priority notes due 2028 and use proceeds to cover debt and other expenses.
Shares of Colgate-Palmolive Company (CL) were slightly higher, up closing up 1% after a report from CNBC that Daniel Loeb’s Third Point has amassed a substantial stake in the company and sees value in a potential spinoff of its Hill’s Pet Nutrition business and other brands.
The moves on Tuesday cap a second straight positive day on Wall Street after all three major averages rallied in the previous session, with the S&P 500, Dow, and Nasdaq notching gains of 2.7%, 1.9%, and 3.4%, respectively.
“As we continue to remind you, this kind of outsized move is not on its own historically indicative of either a healthy market or an investable low,” DataTrek Research Co-Founder Jessica Rabe said in a note.
The number of days in which the S&P 500 gained more than 1% was 54 last year. Monday’s bounce brings the year-to-date tally of such gains to 100 – an important threshold the benchmark index has only reached seven other years in the past six decades: during the Saudi oil embargo, the 2000 Dotcom Bubble, the 2008 Global Financial Crisis, and 2020’s pandemic crash.
With inflows to stocks near a record last week, investors have been ramping up bets that a market bottom is in. But many Wall Street strategists have argued that the optimism is premature, particularly as what’s expected to be a murky earnings season gets underway.
Traders work on the floor of the New York Stock Exchange (NYSE) in New York City, U.S., October 14, 2022. REUTERS/Brendan McDermid
Bank of America’s global fund manager survey out Tuesday morning found that 91% of respondents said corporate earnings are unlikely to rise 10% or more in the next year, the highest share of investors in the survey’s history – a sign of further downside for forward earnings-per-share estimates for the S&P 500 index.
As such, BofA analysts deemed any indication that the end of the equity rout is near merely “tasty morsels for another bear rally,” adding that the institution projects a “big low” and subsequent “big rally” in the first half of 2023, when the Federal Reserve is expected to change course and start cutting rates.
This month’s survey “screams macro capitulation, investor capitulation, start of policy capitulation,” strategists led by Michael Hartnett wrote.
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Alexandra Semenova is a reporter for Yahoo Finance. Follow her on Twitter @alexandraandnyc
CALGARY – TC Energy Corp. has lowered the estimated cost of its Southeast Gateway pipeline project in Mexico.
It says it now expects the project to cost between US$3.9 billion and US$4.1 billion compared with its original estimate of US$4.5 billion.
The change came as the company reported a third-quarter profit attributable to common shareholders of C$1.46 billion or $1.40 per share compared with a loss of C$197 million or 19 cents per share in the same quarter last year.
Revenue for the quarter ended Sept. 30 totalled C$4.08 billion, up from C$3.94 billion in the third quarter of 2023.
TC Energy says its comparable earnings for its latest quarter amounted to C$1.03 per share compared with C$1.00 per share a year earlier.
The average analyst estimate had been for a profit of 95 cents per share, according to LSEG Data & Analytics.
This report by The Canadian Press was first published Nov. 7, 2024.
BCE Inc. reported a loss in its latest quarter as it recorded $2.11 billion in asset impairment charges, mainly related to Bell Media’s TV and radio properties.
The company says its net loss attributable to common shareholders amounted to $1.24 billion or $1.36 per share for the quarter ended Sept. 30 compared with a profit of $640 million or 70 cents per share a year earlier.
On an adjusted basis, BCE says it earned 75 cents per share in its latest quarter compared with an adjusted profit of 81 cents per share in the same quarter last year.
“Bell’s results for the third quarter demonstrate that we are disciplined in our pursuit of profitable growth in an intensely competitive environment,” BCE chief executive Mirko Bibic said in a statement.
“Our focus this quarter, and throughout 2024, has been to attract higher-margin subscribers and reduce costs to help offset short-term revenue impacts from sustained competitive pricing pressures, slow economic growth and a media advertising market that is in transition.”
Operating revenue for the quarter totalled $5.97 billion, down from $6.08 billion in its third quarter of 2023.
BCE also said it now expects its revenue for 2024 to fall about 1.5 per cent compared with earlier guidance for an increase of zero to four per cent.
The company says the change comes as it faces lower-than-anticipated wireless product revenue and sustained pressure on wireless prices.
BCE added 33,111 net postpaid mobile phone subscribers, down 76.8 per cent from the same period last year, which was the company’s second-best performance on the metric since 2010.
It says the drop was driven by higher customer churn — a measure of subscribers who cancelled their service — amid greater competitive activity and promotional offer intensity. BCE’s monthly churn rate for the category was 1.28 per cent, up from 1.1 per cent during its previous third quarter.
The company also saw 11.6 per cent fewer gross subscriber activations “due to more targeted promotional offers and mobile device discounting compared to last year.”
Bell’s wireless mobile phone average revenue per user was $58.26, down 3.4 per cent from $60.28 in the third quarter of the prior year.
This report by The Canadian Press was first published Nov. 7, 2024.
TORONTO – Canada Goose Holdings Inc. trimmed its financial guidance as it reported its second-quarter revenue fell compared with a year ago.
The luxury clothing company says revenue for the quarter ended Sept. 29 totalled $267.8 million, down from $281.1 million in the same quarter last year.
Net income attributable to shareholders amounted to $5.4 million or six cents per diluted share, up from $3.9 million or four cents per diluted share a year earlier.
On an adjusted basis, Canada Goose says it earned five cents per diluted share in its latest quarter compared with an adjusted profit of 16 cents per diluted share a year earlier.
In its outlook, Canada Goose says it now expects total revenue for its full financial year to show a low-single-digit percentage decrease to low-single-digit percentage increase compared with earlier guidance for a low-single-digit increase.
It also says it now expects its adjusted net income per diluted share to show a mid-single-digit percentage increase compared with earlier guidance for a percentage increase in the mid-teens.
This report by The Canadian Press was first published Nov. 7, 2024.
