The Economy
Bank Of Canada Leaves Interest Rate Untouched
On Wednesday, the Bank of Canada left its benchmark interest rate unchanged but also signaled that future rate hikes are still possible. According to the bank, the decision was made to slow the pace of inflation and takes into account the current state of NAFTA negotiations.
Deutsche Bank Reaches $220 Million Settlement Over Libor Claims
Deutsche Bank AG has agreed to pay $220 million to settle allegations by U.S. regulators that it fraudulently manipulated Libor and other benchmark interest rates before the financial crisis.
This penalty comes two years after the bank agreed to a $2.5 billion settlement for allegations of Libor rigging with the U.S. Department of Justice, Commodities Futures Trading Commission, the New York Department of Financial Services and the U.K.’s Financial Conduct Authority.
Trump Vows To Protect 401(k) Plan
President Donald Trump said on Wednesday that he plans to protect the 401(k) retirement savings plan. However, he also noted that it could still end up in congressional negotiations as part of tax cut proposals.
The Markets
Stock Market Down Following Disappointing Earnings
The U.S. stock market pulled back on Wednesday following the latest earnings releases from companies like AT&T Inc (NYSE:$T) and Boeing Co (NYSE:$BA) that underwhelmed investors.
The S&P 500 was down by close to 12 points, with all of its 11 main sectors trading lower. Telecoms and industrials led the decline, down 2.28% and 1.03% respectively. Burrito chain Chipotle Mexican Grill Inc (NYSE:$CMG) and chipmaker Advanced Micro Devices Inc (NYSE:$AMD) were the biggest fallers, down 14.7% and 13.23% respectively.
The Nasdaq declined by 34.54 points or 0.52% to 6,563. Meanwhile, the Dow Jones dropped 112.3 points or 0.48% to 23,329, a day after closing at a record.
“We’re probably due for a pause. At this point, rising earnings are the lifeblood to the market,” said Brent Schutte, chief investment strategist at Northwestern Mutual Wealth Management Company.
Oil Slips From Four-Week Highs
Following an unexpected increase in U.S. oil inventories, oil prices declined from four-week highs. The U.S. Energy Information Administration reported that crude oil inventories rose by 856,000 barrels in the week to October 20, while analysts had expected a decrease of 2.6 million barrels.
Canada Pushed For Bombardier-Airbus Deal
According to reports, the Canadian government encouraged Bombardier Inc (TSX:$BBD.B) to make a deal with Airbus SE for the CSeries planes to fend off a potential venture with Chinese investors. It is said that government officials were concerned with funneling jobs and technology to China.
Anthem Shares Surge Despite Uncertainties In Insurance Market
Health insurance company Anthem Inc (NYSE:$T), following its Q3 earnings release, saw its shares climb by 5.36% to $205.71 at market close on Wednesday. The company reported a better-than-expected earnings per share of $2.65, up from $2.45 a year ago.
Moreover, Anthem has raised its 2017 earnings forecast and thinks its 2018 forecasts are also achievable, despite facing uncertainties regarding what the U.S. government will do with health insurance plans.
Apple Shoots Down Report About iPhone X Facial Recognition Issues
Apple Inc (NASDAQ:$AAPL) has hit back at a report released by Bloomberg about a possible reduction in accuracy of the iPhone X’s facial recognition feature to facilitate the smartphone’s production. The company states that Bloomberg’s claim is “completely false” and “The quality and accuracy of Face ID haven’t changed.”
Top Active Stocks
Bon-Ton Stores Inc (NASDAQ:$BONT)’s stock went up by as much as 85% on Wednesday following an announcement that the retailer has an amended credit arrangement in preparation for the upcoming holiday season. The amended credit would provide improved financial flexibility and liquidity to the company, which has lost money for six straight years.
Telecom giant AT&T Inc (NYSE:$T) disappointed investors with its Q3 earnings, in particular, its revenue and subscriber loss for the quarter. This caused its shares to dip late Tuesday afternoon and continuing on Wednesday. However, the company points out that a large part of the subscriber loss was involuntary and expects better subscriber numbers in Q4.
As mentioned, Advanced Micro Devices Inc (NYSE:$AMD) also plunged following its Q3 earnings release. Despite beating earnings and revenue expectations, the company gave a profitability forecast that disappointed analysts and investors.
Another company that saw its stock fall after its quarterly earnings was Boeing Co (NYSE:$BA). Although the company beat its earnings estimates, both its commercial airplanes and its defense, space, and security units saw declines in the quarter compared with last year.
Nike Inc (NYSE:$NKE) saw its share price rise by 3.23% on Wednesday after setting an estimated EPS growth rate of the mid-teens over the next five years. The company had previously set a revenue goal of $50 billion by 2020.
Featured image: Depositphotos/ TpaBMa2
