Wall Street slips on Brexit delay

“Brexit by itself is not that big of a deal for equity investors,” said Oliver Pursche, chief market strategist at Bruderman Asset Management in New York.

“The global economy is effectively suffering from 1000 paper cuts. None of them are deadly, but in agreement, they’re certainly painful.”

Earlier on Tuesday, the S&P 500 and the Dow Jones Industrial Average had risen modestly as upbeat forecasts from Procter & Gamble and United Technologies offset lower-than-expected results from McDonald’s and Travellers.

Procter & Gamble shares gained 2.6 per cent and United Technologies advanced 2.2 per cent, while McDonald’s shares fell 5 per cent and Travellers shares declined 8.3 per cent.

With Tuesday’s losses the S&P 500 fell below 3000, but remained within 1 per cent of its record closing high in July.

The Dow Jones Industrial Average fell 39.54 points, or 0.15 per cent, to 26,788.1, the S&P 500 lost 10.73 points, or 0.36 per cent, to 2,995.99 and the Nasdaq Composite dropped 58.69 points, or 0.72 per cent, to 8,104.30.

Facebook shares dropped 3.9 per cent, weighing heavily on the Nasdaq, as the social networking company faced an expanding probe into allegations that it put consumer data at risk and pushed up advertising rates.

Hasbro shares dived 16.8 per cent as the toy maker’s profits, which have been pinched by US tariffs on Chinese imports, came in well below Wall Street estimates.

In aftermarket trading, Texas Instruments shares fell sharply and were last down 9 per cent.

Boeing shares rose 1.8 per cent after United Technologies’ chief financial officer said the company believed Boeing would make 737 MAX planes at its current rate for the rest of the year. The shares pared gains slightly, however, after Boeing announced the departure of the company’s executive in charge of commercial

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US stocks edge up on mixed earnings

Traders work on the floor at the New York Stock Exchange October 9, 2019. — Reuters pic

NEW YORK, Oct 22 — Wall Street stocks edged higher early today following mixed earnings, with McDonald’s falling and Biogen surging on positive clinical results for a new Alzheimer’s treatment.

Analysts described the sentiment on US-China trade relations and Brexit as still relatively upbeat, but corporate news was at the centre of the market’s focus.

About 25 minutes into trading, the Dow Jones Industrial Average stood at 26,833.16, up less than 0.1 per cent.

The broad-based S&P 500 gained 0.2 per cent to 3,012.03, and the tech-rich Nasdaq Composite Index also rose 0.2 per cent to 8,182.26.

A deluge of earnings included results from Procter & Gamble, which jumped 3.8 per cent as it lifted full-year targets following better-than-expected earnings on strong sales of premium products and higher overall pricing.

But fellow Dow member McDonald’s slumped 3.3 per cent as its third-quarter earnings missed expectations due in part to heavy spending on technology.

Biotech company Biogen surged 36.4 per cent after it announced it will seek regulatory approval from the Food and Drug Administration for aducanumab, an investigational treatment for early Alzheimer’s disease.

Patients in the most recent clinical study “experienced significant benefits on measures of cognition and function such as memory, orientation, and language,” Biogen said.

Under Armour gained 0.7 per cent as it announced that company founder Kevin Plank was stepping down as chief executive and would be replaced by president Patrik Frisk. Plank will continue to be chairman of the company.

And toymaker Hasbro plunged 14.4 per cent after reporting a 19.2 per cent drop in third-quarter profits to US$212.9 million due in part to tariff-related costs. — AFP

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UBS Group AG (UBS) CEO Sergio Ermotti on Q3 2019 Results – Earnings Call Transcript

UBS Group AG (NYSE:UBS) Q3 2019 Results Earnings Conference Call October 22, 2019 3:00 AM ET

Company Participants

Martin Osinga – IR

Sergio Ermotti – Chairman and CEO

Kirt Gardner – CFO

Conference Call Participants

Benjamin Goy – Deutsche Bank

Stefan Stalmann – Autonomous Research

Kian Abouhossein – JPMorgan

Jernej Omahen – Goldman Sachs

Jon Peace – Credit Suisse

Andrew Stimpson – Bank of America Merrill Lynch

Magdalena Stoklosa – Morgan Stanley

Andrew Lim – Societe Generale

Andrew Coombs – Citi

Anke Reingen – Royal Bank of Canada

Amit Goel – Barclays

Adam Terelak – Mediobanca

Nicholas Watts – Redburn

Martin Osinga

Good morning, and welcome to our third quarter 2019 results presentation. I would like to draw your attention to our slide regarding forward-looking statements at the end of this presentation. It refers to cautionary statements, including in our discussion of risk factors in our latest annual report. Some of these factors may affect our future results and financial condition.

Now over to Sergio.

Sergio Ermotti

Thanks, Martin. Good morning, everyone, and thanks for joining. We had a solid third quarter. Even with the mixed market conditions adding to the usual seasonality, we delivered over $1 billion in net profit. As the investment environment evolves, we continue to position ourselves for future growth and clients continue to turn to UBS.

In Global Wealth Management, we had a good quarter. Our broad client relationships have driven net inflows of $16 billion, and we now look after $2.5 trillion of their assets. This scale allow us to invest, drive innovation and provide choice to even better meet their changing needs.

In Personal & Corporate, strong net new business volumes growth this year is helping us mitigate interest rate headwinds. Asset Management had a third consecutive quarter of year-on-year profit growth or

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ASX slips after vote on Brexit bill and Facebook probe

Related Story: British MPs finally voted for Brexit — but rejected Boris Johnson’s ‘rushed’ timetable

Australian shares have experienced a lacklustre start to the day amid ongoing Brexit uncertainty and a mixed set of US corporate results.

Market snapshot at 7:45am (AEST):ASX SPI futures flat at 6,645, ASX 200 (Tuesday’s close) +0.3pc at 6,672AUD: 68.53 US cents, 53.2 British pence, 61.59 euro cents, 74.33 Japanese yen, $NZ1.07US: Dow Jones -0.2pc at 26,788, S&P 500 -0.4pc at 2,996, Nasdaq -0.7pc at 8,104Europe: FTSE 100 +0.7pc at 7,212, DAX +0.1pc at 12,755, CAC +0.2pc at 5,658, Euro Stoxx 50 +0.1pc at 3,605Commodities: Brent crude +1.1pc at $US59.61/barrel, spot gold +0.2pc at $US1,487.50/ounce, iron ore +1.5pc at $US86.68/tonne

By 10:35am (AEDT), the ASX index had fallen by 0.3 per cent to 6,652 points.

Meanwhile, the Australian dollar has slipped to 68.6 US cents, but lifted to 53.2 British pence.

The British pound fell from its five-month high after UK Parliament voted to allow Prime Minister Boris Johnson’s withdrawal agreement bill to proceed to the next stage, which could lead to more amendments.

However, Mr Johnson lost a subsequent vote to approve a rapid timetable to push his bill through in three days.

European markets closed higher, with London’s FTSE up 0.7 per cent and Germany’s DAX rising by 0.1 per cent.

“There was optimism into this (the vote) that perhaps they could move forward,” said Quincy Krosby, chief market strategist at Prudential Financial.

“To have had a solution to Brexit would have eliminated one of the uncertainties that has hovered over the market for the last couple of years.”

Facebook leads US tech fall

Wall Street’s main indices slipped into negative territory in late-afternoon trade after British MPs rejected Mr Johnson’s proposed timetable

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US stocks close lower amid earnings

New York, Oct 23 (IANS) US stocks closed lower as investors digested a batch of corporate earnings reports.

On Tuesday, the Dow Jones Industrial Average decreased 39.54 points, or 0.15 percent, to 26,788.10. The S&P 500 fell 10.73 points, or 0.36 percent, to 2,995.99. The Nasdaq Composite Index erased 58.69 points, or 0.72 percent, to 8,104.30, Xinhua news agency reported.

McDonald’s on Tuesday posted GAAP diluted earnings per share of 2.11 US dollars and consolidated revenues of 5.4 billion dollars, both missing analysts’ expectations.

Shares of the fast food chain giant plunged more than 5 per cent to close at 199.27 dollars apiece.

Procter & Gamble posted strong quarterly earnings that topped analysts’ expectations. Its core earnings per share increased 22 per cent to 1.37 US dollars and its net sales reached 17.8 billion dollars, up 7 per cent from the prior year.

–IANS

sdr/

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