The US Market Reacts Neutrally to the Data of Macroeconomic Stats

The American stock exchanges finished the trading session in different directions yesterday. The DJIA Industrial Average and the S & P500 Broad Market Index rose 0.3-0.4%. At the same time, the high-tech NASDAQ index sank 0.1%. Corporate reporting turned out to be multidirectional.

Thus, the representative of the health sector Abbot Labs showed a quarterly profit, which was almost 50% higher than market forecasts. YoY growth exceeded 43%. As a result, the company’s shares gained 3.3% on the day. At the same time, IBM did not report very well. Earnings per share came in under 1% less than expected and stocks reacted slightly lower. TESLA provided quite strong reporting.

The “Beige Book” published on the eve of the state of the US economy in the regional context as a whole confirmed positive dynamics against the background of persisting problems of labor shortages and individual disruptions in supply chains. The market reacted neutrally to the macroeconomic statistics data. At the same time, the comments of the Deputy Chairman of the Board of Governors of the Federal Reserve R. Quarles on the possible consideration of earlier terms of the rate change than previously anticipated in the event of continued high inflation and in the first half of next year had a negative impact on the course of trading not only in the American market.

Asian trading floors were mostly under pressure. The news that the sale of the Evergrande Hopson Development division will not take place affected the market price of the troubled developer. On the first day of the opening of trading after the suspension in early October in connection with the preparation of the deal, the company’s shares showed a decline. At the same time, Chinese indices were trading slightly higher, which is not the case for Japan’s NIKKEI, which fell 1.9%. European indices are also under pressure. The financial statements of Volvo exceeded market expectations in terms of profit by 8% but were worse in terms of revenue by 1%. Software maker SAP posted profits 20% above market consensus. From corporate reports, the focus of attention today will be news on Intel and AT&T. Among the European reports, it is worth noting the publication of L’Oreal.