(Bloomberg) — European stocks advanced after several positive earnings surprises, while Tesla Inc. US stock futures on Wall Street pointed to gains after delivering blowout results.
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The Stoxx 600 rose 0.5%, supported by strong results from Barclays Plc, Unilever Plc and Hermes. Nasdaq 100 futures rose 0.7% after Tesla posted its biggest quarterly profit in more than a year, with shares up 9% in late trading. US Treasuries rose for the first day this week, while the dollar weakened.
With earnings season in full swing, about 10% of the entire Stoxx 600 index is set to report on Thursday, including two dozen blue-chip companies. Investors continue to watch the pace of Federal Reserve easing, with swap traders expecting less than 100% of rate cuts at the two remaining policy meetings this year.
Corporate Highlights
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Barclays plc reported a surprise increase in fixed-income trading, while its equity traders generated revenue of £692 million, topping the average analyst estimate of £688 million compiled by Bloomberg.
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Unilever Plc’s revenue rose 4.5% in the third quarter, beating the 4.3% expected by analysts, soap-to-stock Cube Group said Thursday.
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Hermes sales rose as the Birkin bag maker capitalized on rebounding demand for its pricey handbags, which has fueled a broader luxury market slump.
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Renault SA confirmed its full-year guidance as the French automaker expects to benefit from new models including the R5 electric car and updated Dacia sport utility vehicles.
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Boeing Co. Factory workers rejected a new labor deal that would have boosted their wages by 35% over four years, a blow to the troubled plane maker as it tried to overcome a crippling strike.
The rebound of tech and artificial intelligence companies from the U.S. and Asia has opened up an attractive entry point, Julia Wang, managing director and global market strategist at JPMorgan Private Bank, told Bloomberg Television.
“Treasury yield moves and the dollar’s relentless move have dampened investors’ risk appetite, but as we look to the medium term, there’s no reason why this shouldn’t be a great buying opportunity,” Wang said.
Asian stocks were flat, losing momentum after a nearly 5% rally in September, as traders worried whether China’s latest stimulus blitz would be enough to revive growth.
