Stocks Waver Amid Slew of Corporate Results
October 22 2019 - 08:19AM
Dow Jones News
By Anna Isaac
U.S. stock futures and equities across Europe were mostly flat
Tuesday as investors turned their attention to the health of major
corporations reporting third-quarter earnings while awaiting
further developments on Brexit.
Futures tied to the Dow Jones Industrial Average wavered ahead
of another day laden with earnings reports. A range of household
names are poised to report later Tuesday, including tariff-hit
Whirlpool and social-media company Snap Inc.
Shares in Biogen climbed 34% in premarket trading after the
pharmaceutical company said it would seek regulatory approval for a
drug that treats Alzheimer's disease. Shares in Bristol-Myers
Squibb rose 4% after the drugmaker reported favorable results from
a trial for a cancer treatment.
Meanwhile, shares in consumer-products giant Procter &
Gamble gained over 4% and motorcycle maker Harley-Davidson climbed
7% ahead of the opening bell as both companies reported
better-than-expected earnings. Hasbro fell more than 10% after the
toy maker's third-quarter revenue disappointed investors.
The Stoxx Europe 600 index was also mostly flat as Brexit
uncertainty weighed on investor appetite ahead of another day of
voting by U.K. lawmakers on the terms of the nation's exit from the
European Union.
"Investors want to keep the status quo unless proven otherwise,"
said Geoffrey Yu, head of the U.K. investment office at USB Wealth
Management. "They have learned with trade talks and Brexit, if you
try and position too aggressively for the downside, you might just
get smacked in the face."
The British pound was flat against the dollar. Analysts expect
the pound to face further volatility in the days ahead.
Sovereign-bond yields in major European economies fell amid the
continuing political upheaval. The German 10-year bund was down 2.9
basis points to minus 0.371%, while the yield on the U.K. 10-year
gilt ticked down to 0.728%. The yield on the U.S. 10-year Treasurys
ticked lower to 1.776%. Bond yields fall as prices rise.
Among European stocks, shares in Just Eat rose 27% in London
after Prosus made a GBP4.9 billion ($6.3 billion) offer to buy the
food-delivery company. The deal was swiftly rejected by Just Eat's
board.
China's Shanghai Composite Index gained 0.5% after President
Trump said Monday that a trade deal between the U.S. and China "is
coming along very well," leading to speculation that the two
nations may reach a tariff agreement in the coming months. His top
trade negotiator also said that the U.S. aims to finish the first
phase of talks by mid-November when the two countries meet in
Chile.
Later Tuesday, markets will get an update on the health of the
housing market in the U.S. when the National Association of
Realtors publishes figures on existing-home sales for last month.
Economists surveyed by The Wall Street Journal expect sales to have
fallen by 0.2%.
Write to Anna Isaac at anna.isaac@wsj.com
(END) Dow Jones Newswires
October 22, 2019 08:04 ET (12:04 GMT)
Copyright (c) 2019 Dow Jones & Company, Inc.
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