Stocks rise on earnings optimism; Treasuries Gains: Markets Wrap

(Bloomberg) — European stocks rose after a series of positive earnings surprises, while U.S. stock futures pointed to gains on Wall Street after Tesla posted impressive results.

Most read from Bloomberg

The Stoxx 600 index 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, sending the stock up 9% in late-hours trading. US Treasuries rose for the first day this week and the dollar fell.

With earnings season in full swing, about 10% of the Stoxx 600 is scheduled to report on Thursday, including more than two dozen blue-chip companies. Investors continue to monitor the pace of Fed easing, with swap traders now less than 100% certain of interest rate cuts during the remaining two policy meetings this year.

Most prominent companies

• Barclays reported a surprise increase in fixed income trading while equity traders generated revenue of £692 million in the period, beating the average analyst estimate compiled by Bloomberg of £688 million.

• Unilever Plc's revenue rose 4.5% in the third quarter, beating the 4.3% gain analysts had expected, the Soap Cube to Stock Group said Thursday.

• Hermès sales rose as the Birkin bag maker met resilient demand for expensive handbags, weathering a broader slump in the luxury market.

• Renault SA has confirmed its full-year guidance as the French carmaker expects to benefit from new models including the R5 electric car and updated Dacia SUVs.

• Boeing Co. plant workers rejected a new labor contract that would have increased their wages by 35% over four years, dealing a blow to the beleaguered plane maker as it tries to overcome crippling work stoppages.

The withdrawal of technology and artificial intelligence companies based in the United States and Asia has opened an attractive entry point, Julia Wang, executive director and global market strategist at JP Morgan Private Bank, said on Bloomberg TV.

“The move in Treasury yields and the ongoing move in the dollar has clouded investors' risk appetite, but we are looking to the medium term and there is no reason why this cannot be a great opportunity to buy the dip,” Wang said.

Asian stocks were trading flat, losing momentum after a nearly 5% rise in September, as traders remained concerned about whether China's latest stimulus campaign was enough to revive growth.

The story continues