China markets rose slightly while Japan’s sagged before its Sunday elections. The biggest action was in the U.S. where Tesla took a break and Capri took a hit.
- S&P 500 Futures: 5,865.50 ⬆️ up 0.48%
- S&P 500: 5,809.86 ⬆️ up 0.21%
- Nasdaq Composite: 18,415.49 ⬆️ up 0.76%
- Dow Jones Industrial Average: 42,374.36 ⬇️ down 0.33%
- STOXX Europe 600: 518.65 ⬇️ down 0.06%
- CSI 300: 3,956.42 ⬆️ up 0.70%
- Nikkei 225: 37,913.92 ⬇️ down 0.60%
- Bitcoin: $66,960.25 ⬆️ up 0.44%
China: Shares rise as traders focus on U.S. election
China markets bounced back from a Thursday slide, as traders continued focusing on the tight U.S. election on a day of little domestic economic news beyond the People’s Bank of China’s announcement that it would keep its medium term (one-year) lending rate unchanged at 2%, a month after it made a record 30 basis-point cut. The CSI 300, which tracks the 300 top stocks on the Shanghai and Shenzhen exchanges, rose 0.70%, while Hong Kong’s Hang Seng added 0.49%.
Japan: Shares slip before weekend election
Nervous investors cut the Nikkei 225 by 0.60% in advance of Sunday elections, which will determine if the ruling Liberal Democrats win a majority and add a level of certainty to current economic policies. Stock are expected to suffer if they lose their majority. Core inflation in Tokyo came in at 1.8%, the first time in five months it was below Japan’s Central Bank target of 2%, giving traders hope that interest rates would not rise. Losses were widespread across the Nikkei, with Mazda Motor’s 1.56% rise providing a rare green spot in a sea of red.
Europe: Shares slide on earnings misses
European stocks slipped early Friday after a slew of companies reported weak earnings news. Mercedes-Benz shares fell almost 4% before recovering after its core car results missed third-quarter estimates on weakening demand in China. French Cognac maker Remy Cointreau also trimmed guidance in part on China market conditions, and its shares were off around 1% in early trading. The Stoxx Europe 600 was off 0.06% and the FTSE 100 was down 0.05% in the morning.
U.S. premarket up, but investors punish Capri
U.S. markets were up in premarket trading Friday, a day after Tesla’s biggest surge in over a decade—a 22% jump propelled by Elon Musk’s confident projections that Tesla could see vehicle sales growth of 20% to 30% in the coming year—sent the Nasdaq higher, while a sharp drop in IBM dragged the Dow into the red. Investors clawed back a bit more than 2% of Tesla’s gain in premarket trading, but spent more energy punishing Michael Kors-owner Capri, taking the fashion group’s shares down more than 40% on news that a federal judge had blocked Coach and Kate Spade-owner Tapestry from acquiring it because doing so would reduce competition in the luxury handbag market.
And earnings season continues…
A huge earnings week, with 112 of the S&P 500 reporting, comes to a close today with reports from HCA Healthcare and Colgate-Palmolive.