The Dow Jones closed 39 points higher on Friday, while S&P and the Nasdaq slipped 0.5% and 1.2%, respectively, as upbeat corporate results from big banks were offset by falls in megacap stocks amid persistent concerns over inflation outlook. At the same time, the surge in oil prices and the escalation in the Middle East conflict also weighed on investors' mood. Tech, consumer discretionary and industrials were the biggest laggards, as Tesla, Nvidia, Apple, Alphabet, Microsoft and Amazon lost between 1% and 3%. Shares of Boeing slipped 3.3% on expanding inspections of a production defect and Spirit's shares were down 1%. Conversely, JPMorgan gained 1.5%, Wells Fargo advanced 3% and Citigroup dipped 0.2% after beating on both earnings and revenue. UnitedHealth added 2.5% after the company raised its profit guidance and earnings topped estimates. On the week, the S&P 500 is up 0.6%, the Dow Jones added 0.8% and the Nasdaq added 0.3%.
The German DAX fell 1.6% on Friday and the benchmark Stoxx 600 shed 1% as investors dumped riskier assets as the conflict in the Middle East intensified. Travel and leisure stocks tumbled more than 2% while oil and gas stocks rose by over 1%. On the corporate front, Franco-German lab supplies maker Sartorius AG lowered its full-year forecast for sales and adjusted earnings margin; fund manager Ashmore reported a decline in assets under management for the three months ending on September 30; and digital mapping specialist TomTom reported a smaller-than-expected operating loss for Q3. The DAX retreated for the fourth consecutive week while the broader Stoxx 600 managed to gain about 1%.
The Nikkei 225 Index fell 0.55% to close at 32,316 while the broader Topix Index dropped 1.44% to 2,309 on Friday, Notable losses were seen from index heavyweights such as Toyota Motor (-1.9%), Mitsubishi UFJ (-2%), Disco Corp (-3.5%), Nintendo (-2.4%), Daikin Industries (-2.7%) and Honda Motor (-2%). Meanwhile, Fast Retailing jumped 5.8% after forecasting an 18% growth in annual profit as it plans to expand in key markets including China.
The FTSE 100 index closed a choppy session 0.6% lower at 5,600 on Friday, tracking losses for other European equity benchmarks as investors continued to fret about conflict in the Levant and a prolonged period of tighter monetary policy. BoE Governor Bailey stated that future rate decisions from the central bank will continue to be tight, increasing uncertainty for financial markets as MPC members disagree over curbing inflation and heeding to overtightening risks. Prudential sank nearly 2% to lead the losses for financial heavyweights in London. In the meantime, St. James’s Place plummeted 22% following reports that regulators want to change its fee structure. Still, the FTSE 100 ended the week 1.4% higher, supported by the retreat in global bond yields during the period.
The Shanghai Composite fell 0.64% to close at 3,088 while the Shenzhen Component dropped 0.99% to 10,068 on Friday, snapping a two-day advance as investors assessed data showing China’s consumer inflation was unexpectedly flat in September, while producer inflation dropped the least in six months. The country also logged a larger-than-expected trade surplus in September despite weak domestic and external demand.. Notable losses were seen from heavyweight firms such as Sichuan Contemporary Amperex (-2.7%), Chongqing Changan (-1.7%), Kweichow Moutai (-2%), Kunlun Tech (-7.3%), ZTE Corp (-4.4%) and Zhongji Innolight (-4%).
The BSE Sensex closed 0.19% lower at 66,283 on Friday, down for a second consecutive session, dragged by IT, banking, and metal stocks Meanwhile, India's retail inflation rate dropped more than expected, falling within the RBI's target range. Among individual stocks, Axis Bank fell by 2.3%, after UBS's downgrade, citing concerns of a potential rise in credit losses. Also, Infosys fell 2.2% after announcing a cut in its revenue outlook. Conversely, Tata Motors rose 4.8%, after its subsidiary Jaguar Land Rover recorded its highest-ever performance in H1FY24, driven by record sales in both quarters. Also, HCL Tech rose 2.6%, after reporting a 10% yoy rise in consolidated net profit for the quarter ending September 2023. On the week, the index gained 0.4%.
