Dow opens 300 points higher after GDP report tops expectations

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Daily News Dow opens higher at market open

The Dow added 463 points, or 1.5%, as markets entered the first hour of trading.

The S&P 500 increased 0.3%.

The Nasdaq, hurt by disappointing tech earnings, was down 0.3%.

— Alex Harring

Daily News Oil services and energy ETFs and stocks set the world on fire in October

Oil services and energy ETFs and stocks have given more than a year’s worth of gains in just four weeks.

Consider: VanEck Oil Services ETF (OIH) is higher by 40.6% so far in October — the best month since November 2020, when it rocketed 44.1%.

That’s been powered by month-to-date gains of 66% in Nabors (NBR); Transocean (RIG) +50%+; and ChampionX (CHX), up by almost 50%.

Meanwhile, the Energy Select Sector SPDR Fund (XLE) is higher more than 24% in October, also on pace for its biggest monthly pickup in two years. Inside the ETF, Halliburton (HAL) is up over 48% in October; SLB has risen more than 45% and APA by 35%.

The  SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has added almost 23% so far in October, on track for the best month since February 2021. Leaders include Permian Resources (PR), up over 46% MTD; Archaea Energy (LFG), higher by more than 43%; and Par Pacific (PARR), with a 43% advance.

— Scott Schnipper, Gina Francolla

Daily News US real GDP has been flat this year, Boockvar says

The third quarter US gross domestic product number came in better than expected, showing signs of accelerating growth in an economy still plagued by high inflation.

Looking over the entire year, however, this number only offsets sluggishness in earlier quarters, according to Peter Boockvar of Bleakley Financial Group.

“Bottom line, on a REAL basis, the US economy has flat lined this year,” Boockvar said in a Thursday note. He expects inflation to continue to weigh on growth and lead to another negative reading.

“Entering the year chained GDP was $20.006 Trillion and we ended Q3 a hair above at $20.022 Trillion. Inflation though has the economy bigger nominally speaking as the nominal GDP figure ended Q3 at $25.66 Trillion vs $24.35 Trillion at the end of 2021,” Boockvar wrote.

“After this positive print for Q3, expect another negative GDP print in Q4,” he said.

—Carmen Reinicke

Daily News Jobless claims and durable goods come in lower than expected

Initial jobless claims for the week ended Oct. 22 totaled 217,000, a 3,000 increase from the prior week’s unrevised level of 214,000, according to the Labor Department. However, the figure is lower than StreetAccount estimates of 223,000. Continuing claims were more than 1.4 million.

Meanwhile, U.S. durable goods orders also came in lower than expected. They rose 0.4% to $274.7 billion, the U.S. Census Bureau announced, versus the StreetAccount expectations of a 0.6% increase. Excluding transportation, new orders decreased 0.5%.

— Michelle Fox

Daily News Futures feel upward momentum from GDP report

The better-than-expected GDP report gave a boost to the three major futures indexes heading into the final hour of pre-market trading.

Dow futures broke 300 points up and were trading around 0.8% higher than the flatline.

Futures for the S&P 500, which were at one point trading down, added 0.1% following the data.

Though still in the negative, Nasdaq 100 futures were able to make up some ground, now down about 0.4%.

— Alex Harring

Daily News European Central Bank hikes rates by 75 basis points

The European Central Bank raised rates by 75 basis points, or 0.75 percentage point, marking the third straight increase by the central bank.

The ECB also disclosed new conditions for its targeted longer-term refinancing operations, or TLTROs.

“During the acute phase of the pandemic, this instrument played a key role in countering downside risks to price stability. Today, in view of the unexpected and extraordinary rise in inflation, it needs to be recalibrated,” the ECB said in a statement Thursday.

Read our full story on the ECB decision here.

— Silvia Amaro

Daily News GDP grows at slightly hotter-than-expected pace in Q3

Daily News Altria dips after missing expectations

Cigarette company Altria Group shed 2.7% in pre-market trading after missing expectations as it continues to struggle with the national decline in smoking.

Earnings per share came in at $1.28, two cents less than expected. The company also came in lower on revenue, reporting $5.41 billion compared to the expected $5.59 billion.

— Alex Harring

Daily News Stocks moving in the pre-market: Honeywell, Caterpillar and more

Earnings reports continued to drive stock moves Thursday in pre-market trading.

Here are some of the biggest moves:

  • Honeywell: The stock added 4.6% after the industrial company beat earnings expectations for third quarter. It cited growth in advanced materials, commercial aerospace and building products businesses.
  • Caterpillar: Shares popped 5.1% on earnings that beat on the top and bottom lines. The company posted earnings of $3.95 per share compared to $3.16 expected and on revenue of $14.99 billion. against an anticipated $14.33 billion.
  • Northrop Grumman: The defense company shed 3.8% after missing revenue expectations for its third quarter, coming in at $8.97 billion compared to forecasts of 9.13 billion.

See the full list here.

— Sarah Min, Alex Harring

Daily News S&P 500 futures flash red, trade near flat

Futures tied to the S&P 500 moved negative after trading near flat but slightly in the green.

The index ended Wednesday down 0.7%, which snapped a three-day winning streak.

— Alex Harring

Daily News Comcast adds 8% following earnings report

Comcast shares jumped 8% in the pre-market after it reversed course on broadband subscriber growth in its third quarter.

The media giant beat per-share earnings expectations by 6% at 96 cents.

Comcast also narrowly exceeded expectations on revenue, posting $29.85 billion compared to the $29.65 billion expected. But revenue was down 1.5% compared to the same quarter a year ago.

The company added 14,000 broadband customers, a turn after not adding any in the prior quarter. But it lost 561,000 pay-TV customers, continuing a downward trend in the industry with the rise of streaming.

— Alex Harring

Disclosure: Comcast is the parent company of NBCUniversal, which owns CNBC.

Daily News McDonald’s shares rise in pre-market after beating expectations

Fast food giant McDonald’s was trading up 2.9% before the bell after beating expectations for the third quarter.

Earnings per share came in at $2.68, $100 million higher than the $2.58 expected by analysts.

Revenue was also about 3% higher than anticipated at $5.87 billion.

The company attributed its performance to growing traffic in restaurants, which is a turn from declines reported by others in the industry.

— Alex Harring

Daily News GDP report out at 8:30 a.m. expected to show one-time acceleration in growth

Investors will get a look at how well the economy performed during the third quarter when data on gross domestic product comes out at 8:30 a.m.

The Bureau of Economic Analysis report could paint a deceptively strong picture on growth, with economists surveyed by Dow Jones expecting the reading to show an annualized gain of 2.3%. Cyclical factors that likely won’t repeat in future quarters are projected to fuel that gain, which would be the strongest of 2022 by a wide margin.

“We expect that such a number will overstate the strength of the U.S. economy and will be driven in large part by international trade dynamics. Core aspects of the economy such as consumer spending and housing have weakened materially over the course of 2022,” Morningstar said in a client note.

The report also will show how high inflation rose during the quarter, with the chain-weighted price index expected to rise 5.3%. Data on durable goods spending also is due out at 8:30.

Daily News Honeywell shares rise after earnings beat

Honeywell traded 1% higher after the industrial company posted better-than-expected third-quarter earnings.

The company earned $2.25 per share last quarter, excluding certain items, on revenue of $8.95 billion. Analysts expected earnings of $2.16 per share on revenue of $8.98 billion, according to StreetAccount.

“Despite ongoing challenges across supply chains, we grew sales by 6% on a reported basis and 9% organically, with strong double-digit growth in our advanced materials, commercial aerospace, and building products businesses,” CEO Darius Adamczyk said.

“Our backlog remains near record levels, closing the third quarter at $29.1 billion, up 9% year over year, and providing us with confidence in our demand expectations against an increasingly uncertain macroeconomic backdrop,” he added.

— Fred Imbert

Daily News Caterpillar shares pop after earnings

Caterpillar traded more than 3% higher after the industrial giant posted quarterly results that beat expectations.

The company earned $3.95 per share on revenue of $14.99 billion. Analysts expected a profit of $3.16 per share on revenue of $14.33 billion. Caterpillar’s operating profit also rose 16.2% year over year.

— Fred Imbert

Daily News Morgan Stanley downgrades Meta after earnings miss

Morgan Stanley analyst Brian Nowak downgraded Meta to equal weight from overweight, citing lower free cash flow and higher capital expenditures.

“We see META’s $69bn of capex over 2 years and AI-driven data center build as a sign of structurally higher capital intensity,” Nowak wrote in a Thursday note. “While these investments could make META stronger over 5 years, we see ’23 FCF heading 60% lower and higher risk to prove ROIC and incremental growth.”

CNBC Pro subscribers can read more here.

— Sarah Min

Daily News Credit Suisse posts huge third-quarter loss as it announces major strategic overhaul

Signage hangs over the entrance of a Credit Suisse Group AG branch in Zurich, Switzerland, on Sunday, Sept. 25, 2022. Inflation in Switzerland has more than doubled since the start of the year and the State Secretariat for Economic Affairs expects it to come in at a three-decade-high of 3% for 2022. Photographer: Pascal Mora/Bloomberg via Getty Images

Bloomberg | Bloomberg | Getty Images

Credit Suisse on Thursday posted a quarterly loss that was significantly worse than analyst estimates, as it announced a massive strategic overhaul.

The embattled lender posted a third-quarter net loss of 4.034 billion Swiss francs ($4.09 billion), but noted that the scale of the loss reflected a 3.655 billion Swiss franc impairment relating to the “reassessment of deferred tax assets as a result of the comprehensive strategic review.”

In its widely anticipated strategic shift, Credit Suisse vowed to “radically restructure” its investment bank to significantly cut its exposure to risk-weighted assets, which are used to determine a bank’s capital requirements. It also aims to cut its cost base by 15%, or 2.5 billion Swiss francs, by 2025.

Read the full story here.

– Elliot Smith

Daily News European markets retreat as investors track earnings, ECB meeting; Credit Suisse down 7%

European markets pulled back slightly on Thursday as investors digested a slew of corporate earnings and looked ahead to the European Central Bank’s latest monetary policy announcement.

The pan-European Stoxx 600 fell 0.2% in early trade, with tech stocks shedding 1.6% to lead losses while oil and gas stocks added 1.8%.

Investors are waiting to see the outcome of Thursday’s European Central Bank meeting, which is expected to deliver a 75 basis point rate hike.

Credit Suisse shares fell more than 7% in early trade after the Swiss bank reported a mammoth third-quarter loss and announced a radical strategic overhaul in a bid to return to long-term profitability.

– Elliot Smith

Daily News CNBC Pro: Stocks and bonds are struggling. Give these strategies a shot, say Goldman and others

Both stocks and bonds have struggled this year, leaving investors with few alternatives.

Analysts share their strategies on how to thrive in these difficult conditions — including one behind the success of an index that was “almost a mirror image” of the losses in the S&P 500 index.

CNBC Pro subscribers can read more here.

— Weizhen Tan

Daily News CNBC Pro: These ‘all-weather’ stocks can protect your portfolio in a recession, says outperforming fund manager

Top Wall Street executives say a recession is coming. But these three stocks “will work in any type of economic environment,” says Foord Asset Management’s Brian Arcese.

The portfolio manager, whose funds have outperformed the market this year, shared how investors can “recession proof” their portfolios.

Pro subscribers can read more here.

— Zavier Ong

Daily News Earnings from Amazon, Apple on deck for Thursday

Big Tech earnings continue Thursday with results from Amazon and Apple due out after the bell.

Investors have been closely watching technology behemoths for signs of a bottom as rising rates steer investors away from the growth area. Given their sheer scope and size, these stocks also have the tendency to swing markets.

So far this season, reports from Microsoft and Alphabet painted a disappointing picture for the sector. The Google parent dropped more than 9% on Thursday following a revenue and earnings miss, while Microsoft dropped nearly 8% on weak cloud revenue.

Shares of Meta Platforms dropped more than 19% in postmarket trading on a weak fourth-quarter forecast and earnings miss.

When Apple reports results Thursday, investors will keep close watch for details on iPhone 14 sales and how the latest model is faring amid a concerning macro picture.

— Samantha Subin

Daily News ServiceNow, Align Technology move on earnings

Companies that reported earnings results after the bell were among the stocks making the biggest moves in extended trading Wednesday.

Shares of ServiceNow surged more than 11% in extended trading despite a slight revenue miss as earnings per share came in above Wall Street’s expectations. The news pushed other cloud stocks higher, including Arista Networks, which gained more than 8%.

Invisalign maker Align Technology toppled more than 19% on a top and bottom line miss, with earnings per share coming in 82 cents below expectations.

— Samantha Subin

Daily News Meta sinks 19% on disappointing outlook, earnings miss

Shares of Meta Platforms plummeted more than 19% in extended trading Wednesday after the Facebook parent shares a weak fourth-quarter forecast and earnings estimates fell show of Wall Street’s expectations.

Meta Platforms reported adjusted earnings per share of $1.64 on revenues of $27.71 billion. Analysts surveyed by Refinitiv had expected earnings of $1.89 a share on $27.38 billion in revenue. The technology behemoth also posted its second consecutive revenue decline.

For the fourth quarter, the company said it expects revenue to come in between $30 billion to $32.5 billion, compared to consensus estimates of $32.2 billion.

Meta Platforms faces a slew of challenges including headwinds from Apple’s privacy changes and a tough advertising environment as recession fears mount.

As of Wednesday’s close shares have toppled more than 61% this year.

— Samantha Subin

Daily News Nasdaq 100 futures opens lower, S&P and Dow futures rise

Stock futures opened mixed in overnight trading Wednesday.

Futures tied to the Nasdaq 100 fell 0.2%, while S&P 500 futures and futures tied to the Dow Jones Industrial Average gained 0.12% and 0.22% respectively.

— Samantha Subin

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