Novosti i prognoe: tržište kapitala od 23-10-2018

Major US stock indexes fell moderately, as disappointing forecasts from industrial giants Caterpillar and 3M triggered alarm calls about corporate growth and added to concerns about a slowdown in China and diplomatic isolation of Saudi Arabia.

The US data was also in focus. Production activity in the Fifth District expanded moderately in October, according to the results of the Federal Reserve Bank of Richmond millet. The composite index of business activity fell from 29 in September to 15 in October, as sub-indices of supply and new orders fell, and the employment component rose. However, respondents were optimistic, expecting to see a positive increase in most measures in the coming months.

Oil prices fell by more than 4% on Tuesday after Saudi Arabia stated that it could supply more crude if necessary, encouraging investors in anticipation of US sanctions on Iran's oil exports next month.

Most of the components of DOW recorded a decrease (19 of 30). Caterpillar Inc. shares turned out to be an outsider. (CAT, -7.48%). The growth leader was McDonald's Corporation (MCD, + 6.30%).

Almost all sectors of the S & P finished trading in the red. The largest decline was in the commodity sector (-2.2%). The consumer goods sector grew the most (+ 0.5%).

At the time of closing:

Dow 25,191.43 -125.98 -0.50%

S & P 500 2,740.69 -15.19 -0.55%

Nasdaq 100 7,437.54 -31.09 -0.42

U.S. stock-index futures fell sharply on Tuesday, as mixed earnings piled on to concerns over rising global tensions, Italy's budgetary woes. and trade war fears.

Global Stocks:

(company / ticker / price / change ($/%) / volume)

Home Depot (HD) target lowered to $200 from $225 at Morgan Stanley

Int'l Paper (IP) initiated with a Neutral at Seaport Global Securities

McDonald's (MCD) reported Q3 FY 2018 earnings of $2.10 per share (versus $1.76 in Q3 FY 2017), beating analysts' consensus estimate of $1.99.

The company's quarterly revenues amounted to $5.369 bln (-6.7% y/y), beating analysts' consensus estimate of $5.284 bln.

MCD rose to $171.50 (+2.92%) in pre-market trading.

United Tech (UTX) reported Q3 FY 2018 earnings of $1.93 per share (versus $1.73 in Q3 FY 2017), beating analysts' consensus estimate of $1.82.

The company's quarterly revenues amounted to $16.510 bln (+9.6% y/y), beating analysts' consensus estimate of $16.105 bln.

The company also issued in-line guidance for FY 2018, projecting EPS of $7.20-7.30 (compared to its prior guidance of $7.10-7.25 and analysts' consensus estimate of $7.24) at revenues of $64-64.5 bln (compared to its prior guidance of $63.5-64.5 bln and analysts' consensus estimate of $64.47 bln).

UTX rose to $127.00 (+0.47%) in pre-market trading.

Verizon (VZ) reported Q3 FY 2018 earnings of $1.22 per share (versus $0.98 in Q3 FY 2017), beating analysts' consensus estimate of $1.19.

The company's quarterly revenues amounted to $32.607 bln (+2.8% y/y), generally in-line with analysts' consensus estimate of $32.453 bln.

VZ rose to $55.29 (+0.56%) in pre-market trading.

Caterpillar (CAT) reported Q3 FY 2018 earnings of $2.86 per share (versus $1.95 in Q3 FY 2017), beating analysts' consensus estimate of $2.85.

The company's quarterly revenues amounted to $13.510 bln (+18.4% y/y), beating analysts' consensus estimate of $13.277 bln.

The company also reaffirmed FY 2018 EPS guidance at $11.0-12.0 versus analysts' consensus estimate of $11.66.

CAT fell to $119.82 (-6.91%) in pre-market trading.

3M (MMM) reported Q3 FY 2018 earnings of $2.58 per share (versus $2.33 in Q3 FY 2017), missing analysts' consensus estimate of $2.70.

The company's quarterly revenues amounted to $8.152 bln (-0.2% y/y), missing analysts' consensus estimate of $8.413 bln.

The company also issued lowered guidance for FY 2018, projected EPS of $9.90-10.00 compared to its prior guidance of $10.20-10.45 and analysts' consensus estimate of $10.28.

MMM fell to $186.50 (-7.38%) in pre-market trading.

Negative start of trading on the stock markets of Europe is expected, following a decline in the APR trading due to the political situation in Europe and the growing geopolitical tension between the United States and Saudi Arabia.