US. Equities fell on Friday as investors considered mixed corporate earnings and new reports of weak Chinese economic growth.
Government bond yields fell in the last public statements made by three US Federal Reserve officials on Friday, before officials entered a quiet period Central Bank meeting from October 29 to 30. During a speech in Boston, Fed Deputy Chairman Richard Clarida reiterated that monetary policy was not "on a set course" and that officials would review the economic outlook in their interest rate decisions. He described the US economy on Friday as "in good condition."
Here were the main steps during the session starting at 2:03 pm. ET:
S & P 500 (^ GSPC): -0.47% or 13.95 points
Dow (^ DJI): -0.69% or 186.91 points
Nasdaq (^ IXIC ): -1.02% or 83.5 points
10-year yield (^ TNX): -1 basis points to 1.745%
Crude oil (CL = F): -0.8% to 53.50 USD per barrel
Gold (GC = F): -0.24% to $ 1,494.70 per ounce
Boeing (BA), a Dow component, fell 4% during afternoon trade after a Reuters report indicated that the aircraft manufacturer had misled the Federal Aviation Administration about the 737 Max's security system. The report quoted instant messages between employees from 2016 who had received Reuters.
The Dow fell nearly 200 points on a decline in the Boeing share, which was compounded by a decline in Johnson & Johnson (JNJ) shares after some bottles of its baby powder had been found to contain low levels of asbestos.
Meanwhile, another Dow component, Coca-Cola (KO), achieved sales in the third quarter of the fiscal year that exceeded expectations. This led to an increase in equities, although comparable earnings per share fell short of expectations. The organic sales closely watched by beverage companies, which eliminated variables such as currency effects, rose 5% from analysts' expected 4.1% growth, according to consensus analysts. Coca-Cola underscored Coca-Cola Zero Sugar's double-digit volume growth as a key factor in increasing results. This reflects the recent relocation of the company to meet consumer demands for less sugary, health-conscious beverages.
Coca-Cola Updated Full-year guidance foresees organic sales growth of at least 5% for the full year, leaving the door open for growth in excess of the previously expected 5% increase. The company reiterated its guidance that full-year earnings per share (EPS) should decrease or increase by 1% from $ 2.08 in the prior year's comparable earnings per share.
Overseas, other corporate earnings were mixed. Swedish automaker Volvo (VOLV-B.ST) reported a 45% drop in heavy truck orders in the third quarter and expects these losses to increase to next year.
"In recent years, customers in Europe and Canada have declined North America has renewed and expanded its fleet of lorries, but given the flattening freight volume and the current uncertainty about future economic development, they are now holding back investments," said Volvo in his earnings report.
Defiance Mitigation proposals Demand for its cars, conversely, initiate Volvo shares All losses rose on the Stockholm Stock Exchange as investors kept the better-than-expected adjusted operating income and better-than-expected margin for the quarter, and CEO Martin Lundstedt's comments later , who presented a schedule for lukewarm demand.
French car company Renault also highlighted a slowdown in the global auto industry with a bleak earnings forecast that led to its shares at Euronext Paris declining by more than 12%% for the year compared to previous predictions for minor changes in the year Compared to 2018. Operating margin forecasts were also reduced to 5%, compared to the 6% previously reported. The carmaker called "an economic environment that is less favorable than expected and in a regulatory context with ever higher costs."
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Growth in the world's second-largest economy was still weaker than expected in the third quarter China's recent stimulus measures outweighed the trading tensions and continued slowdown in investment.
China's gross domestic product grew by only 6% in the three months that ended in September, the slowest pace since 1992. This was below consensus expectations for growth of 6.1%.
However, other areas of the Chinese economy showed signs of recovery in September. Industrial production rose 5.8% yoy in September, better than the consensus of 4.9%. By September, retail sales were up 8.2% this year, exceeding expectations by 10 basis points.
In the US, the Conference Index's benchmark index is a measure of the health of the domestic economy that fell for the second time in a row in September. This index fell 0.1% after down 0.2% in August. According to Bloomberg data, this was below consensus expectations for an unchanged monthly value.
"The US LEI [Leading Economic Index] declined in September, as weaknesses in manufacturing and interest rate differential were only partially offset by the increase in stock prices and a positive contribution from the Leading Credit Index," said Ataman Ozyildirim, senior director of Economic Research at The Conference Board, in a statement. "The LEI reflects uncertainty in the outlook and declining business expectations caused by the downturn in the industrial sector and trade disputes."
"Looking to the future, the LEI is in line with an economy that is still growing, albeit slower. by the end of the year and until 2020, "added Ozyildirim.
<p class = "canvas-atom canvas-text Mb (1,0em) Mb (0) – sm Mt (0,8em) – -sm" type = "text" content = " Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck "data-reactid =" 57 "> Emily McCormick is a reporter for Yahoo Finance. Follow her on Twitter: @emily_mcck
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