Q3 Financial News

Bank of America (NYSE:BAC) shares gained modestly following the banking giant's third quarter results that beat on the top and bottom lines.

Investing.com-- New Zealand consumer inflation grew less than expected in the third quarter on softer import prices, taking more pressure off the Reserve Bank to raise interest rates further this year.

HCLTech, the country’s third-largest IT services firm, slashed its revenue guidance for the year ahead, but it expects growth to lead the industry numbers by a “big margin” in the third and fourth quarters, chief executive officer C Vijayakumar tells ET. The lack of discretionary spending across clients through the past two quarters and limited resumption visibility on customer expenditures have been the key factors for slashing organic revenue growth guidance between 4% and 5% in constant currency terms (from earlier 6% and 8%) despite strong growth projections. Edited Excerpts:

Get ready for more volatility; the next major test for the stock market is upon us.

Wells Fargo & Co. beat analysts’ expectations for net interest income in the third quarter and again raised its full-year guidance as the bank continues to benefit from higher interest rates.

JD fell as much as 13% to a record low on Friday after several banks and brokers cut price targets and revenue growth forecasts for the firm, citing a weaker-than-expected recovery in consumer spending. The brokerages and banks including Citi, Daiwa and Jefferies, which issued notes to clients on Thursday and Friday with the revised estimates.

Chinese e-commerce giant JD.com fell as much as 13% to a record low on Friday after several banks and brokers cut price targets and revenue growth forecasts for the firm, citing a weaker-than-expected recovery in consumer spending. The brokerages and banks including Citi, Daiwa and Jefferies, which issued notes to clients on Thursday and Friday with the revised estimates. JD.com, which is listed in Hong Kong and the United States, is expected to report quarterly financial data in mid-November following China's main online shopping festival, Singles' Day. Shares in JD.com, which is also China's largest home appliance retailer, closed at their lowest level since their June 2020 debut. A debt crisis in the key property sector has contributed to slowing China's economic growth after the pandemic, while many Chinese have cut back on spending due to concerns over the economy and job security, hurting the retail sector. In March, JD.com warned it would take time to rebuild consumer confidence post-pandemic as it missed fourth-quarter revenue forecasts. Citi Research lowered its revenue assumption for JD.com by 3.4% and 4.3% for the third and fourth quarter, saying that it now estimates 0.8% and 1.3% growth respectively. The bank's analysts cited a «relatively muted consumption trend, high base, intense competition, and on-going impact from restructuring adjustment» for the change in estimates. Nomura said JD.com had yet to see any meaningful improvement in retail since the third quarter, adding that the company had also missed on any positives from the stimulus policies China has rolled out since September to rescue the property market. JD.com said it had no comment on the analyst revisions and its share price

Ashmore said net outflows had been at a 'similar level to the prior quarter', crediting continued institutional risk aversion.

While a few companies have already reported results, it is safe to say that the Q3 2023 earnings season will only kick into high gear tomorrow, spearheaded by major U.S. banks. Against a backdrop of economic uncertainty, high interest rates, subdued consumer confidence, and geopolitical tensions stemming from the Israel-Hamas conflict, investors could certainly use some good news.

Investors were taking advantage of high interest rates by moving their money into the bond market, 'where they are finally being rewarded with attractive yields'.

Investing.com — Here is your Pro Recap of the biggest analyst picks you may have missed since yesterday: a Buy initiation at Boeing, and upgrades at Shoals Technologies, CAVA Group, Coherent , and Iris Energy.

Mint explains why insiders expect the current quarter to be historic. India’s air passenger traffic has more than doubled since 2013. Domestic air passenger traffic for April-September 2023 saw a 142% jump to 112.9 million passengers from 46.6 million during the same period in 2013.

Key Takeaways

Samsung Electronics Co Ltd reported a likely 78% drop in third-quarter operating profit on Wednesday, as the effects of an ongoing global chip glut drive losses in what is normally the South Korean tech giant's cash cow business. The world's largest memory chip and smartphone maker estimated its operating profit fell to 2.4 trillion won ($1.79 billion) in July-September, from 10.85 trillion won a year earlier in a short preliminary earnings statement. The profit beat a 2.1 trillion won LSEG SmartEstimate, which is weighted toward forecasts from analysts who are more consistently accurate. The earnings guidance sent shares up 3.3% in early trade, versus a 1.8% rise in the wider market. Although down sharply from last year, Samsung's third quarter profit is higher than the first quarter's 640 billion won and the second quarter's 670 billion won.

Bitcoin (BTC) faced a challenging third quarter, posting a loss of 11.1%, placing it just above long-term treasuries, which experienced a -11.9% loss during the same period.

The S&P 500 (SPX) closed 0.5% higher after a strong rally on Friday, following the release of the jobs data for September. Stocks rallied as the report shows that wage growth continues to slow down, fueling optimism that the Fed may not have to hike again.

The unwavering demand for luxury housing since the pandemic has kicked off a spate of new launches in this category. Latest ANAROCK data shows that out of 1,16,220 units launched in Q3 2023 in the top 7 cities across various budget categories, approx. 27% (approx. 31,180 units) were in the luxury category. This is the highest quarterly luxury supply entering the market in the last five years.

By Louis Juricic and Sarina Isaacs

Disclaimer: The text below is a press release that is not part of  Cryptonews.com  editorial content.

The crypto winter that began in 2022 yet to end, according to the latest figures on venture capital (VC) funding for crypto firms presented by data analytics firm FundStrat.

Kaustubh Pawaskar, DVP, Fundamental Research, BNP Paribas, says “prior to election years, we see the government increasing spending in the rural markets or agri economy and that should augur well for rural demand and to see a good bit of recovery in the quarters ahead. Urban consumption demand is quite stable over there. Once rural is back on track, we should see volume growth gradually recovering and that is expected from Q2 with a bit of help from the festive demand which is going to be there in October and November.” In the FMCG pack, Marico consolidated revenue is marginally lower on a year-on-year basis. GCPL is also a bit weak-ish in terms of volumes. What is your view on the FMCG pack as a whole for Q2? Q2 is going to be a weak quarter for the consumer good companies.